New Industry Development & Cross-function Business Unit - Business Overview
External appearance of the warehouse. Trucks arrive at the docks and the cargo is moved out in a steady stream.
The first client of our new Czech branch requested us to support them in logistics, help them enhance production efficiency, and secure sales opportunities. Our business relationship in Europe with this manufacturer started when we delivered production facilities to its factory when it was first set up. Since then, we have supplied them with various production materials, including plastics. Our relationship of mutual trust, established through a wide variety of business, led us to fulfill their new request to provide comprehensive services covering logistics for production and related products.
Manpower is also important, although advanced systems have been introduced. All the inspections are carried out by staff.
We applied the kanban system (*1) to eliminate all wastefulness in production, synchronizing the information system and all production processes. After renewing the inventory management methods, the delivery of production materials and parts was standardized, while an operational manual was also prepared. As a result of this overhauling of operations, the customer succeeded in establishing a system that achieved the largest-ever number of units produced.
Additionally, in January 2008, we set about the improvement of machinery production for another manufacturer. We gave detailed instructions, including how to supply production lines with parts efficiently, working together in the client's factory. As a result, we were able to improve the inventory accuracy and reduce distribution costs in the first year of the project.
(*1)Kanban system: a production system to reduce inventory and produce only the necessary amount of required products with the best timing. It is also known as the "Just-In-Time" production system.
Inside the warehouse. We meet customer needs in this extensive space, which has a total floor area of 16,400m².
We plan to actively promote logistics business closely related to production by Japanese companies, establishing a new business model based upon our achievements in the Czech Republic. Although we currently offer services mainly to Japanese companies going into Central and Eastern Europe, we are also planning to offer them to major companies in Europe. Further, we will expand our activities into other areas—including China and Southeast Asia—in the future. Thus, we aim to expand the global logistics business by enhancing customers' trust in our company through achieving excellent results in distribution and production at a number of companies.
Cooperation with other divisions in the group, such as those handling steel materials, chemicals, and nonferrous metals, will also be promoted, with the Logistics Division functioning as the core, so that comprehensive services can be offered and promoted, thereby enhancing the value of the entire group.
February 2010
