Canon expects $600 million boost in revenue from supply chain  On the heels of an announcement from Nissan's chief executive that the company will achieve full production capacity ahead of schedule, Japanese camera and copier maker Canon announced its supply chain - similarly hit by the crisis in the country - will recover more quickly than earlier projected, according to a recently published report.

Reuters reports that Canon has had to adjust its supply chain following the 9.0-magnitude earthquake and subsequent tsunami that battered the country on March 11. Since the natural disasters struck, Canon chief executive Fujio Mitarai affirmed that the company has considered expanding a factory currently under construction in the southern part of Japan as it looks to diversify its production of critical components.

Last month, Canon told investors that the complexity of its supply chain and the hit to infrastructure sustained during the natural disasters would leave the company without a streamlined procurement strategy until June or July. However, the improving supplier landscape led the company to reassess its supply chain projections.

"As those involved in parts production have been giving it their best, we expect supplies to arrive sooner than we had predicted," Mitarai said in an interview on Tuesday. "We now forecast [production] to return to normal by the end of June."

As a result of the company's nimble supply chain moves, Canon now expects sales to beat prior estimates. The company is now projecting revenue of nearly $46 billion this year through December. According to Mitarai, the quick supply chain turnaround could contribute as much as $600 million to the company's bottom line.

Businesses across the globe have been affected by the natural disasters that hit the island nation. According to analysts, Japanese companies supply more than 20 percent of the critical electronic components that companies as diverse as Apple and General Motors rely on to assemble their own offerings.

Still, Mitarai said Canon is now focusing on trimming business costs in China and improving efficiency as it contends with a growing middle class that is demanding higher wages.

"We must gradually adopt a more efficient system in China that saves manpower, and change our product line up to one with more added-value," he said.

Canon is also aggressively looking to acquiring companies that can help it to expand while keeping business costs low, Mitarai asserted.
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