Case Study 1: Improved Logistics Efficiency for Procurement From Overseas.
Desire for Improved Logistics Efficiency for Procurement From Overseas.
As borderless business with overseas is advanced, many corporations conduct procurement and supply by importing from overseas. However, as price
competitiveness for supply becomes fiercer, it becomes necessary to revise procurement logistics. Is your business experiencing issues like the ones listed below? Yamato Group offers proposals based on the business customers’ current situation.
Realizing reduced costs and faster shipping by utilizing the TA-Q-BIN network in Singapore and overseas. Supporting global business with high quality services.
Yamato Global Direct realizes simplified and efficient logistics by directly linking the forwarding capability of Yamato Group with TA-Q-BIN networks in Singapore and overseas. In addition to shipping from overseas to Singapore, Yamato can provide integrated shipping from Singapore to final destinations overseas. For example, the importing of fresh food products. Due to limited sales opportunities, products must be delivered efficiently and as quickly as possible. However, until now, many businesses dealt with products which passed through several logistics companies after being imported and were temporarily transported to warehouses in Singapore. Yamato Group provides integrated management from overseas until the final destination in Singapore. Furthermore, although imported products were stored in warehouses after importing during conventional logistics, our company can put products directly into our TA-Q-BIN network after importing. This results in reduced costs and increased speed, as well as the reduction of lost sales opportunities.
Case Study 2: Three Days Service from On-Site Factories in Shanghai to Destinations within Japan
Mounting intermediate storage cost for moving products to import warehouses.
Fulfillment of 30% Cost Reduction by Eliminating Distribution Warehouses in Japan.
“Using Yamato Global Direct, we can provide our 3 days service from on-site factories in Shanghai to destinations within Japan. We can also help to greatly reduce logistics costs,” proudly asserts General Manager Masahiro Segawa with Global Customer Solutions “Yamato Global Direct” Promotion Business Development Sales of Yamato Transport Co., Ltd. Goods imported into Japan from overseas are ordinarily transported to and stored in distribution warehouses before being delivered to their final destination. The advantage offered by “Yamato Global Direct” is the ability to directly deliver products right after they pass customs from TA-Q-BIN centers to destinations without using warehouses or distribution centers in Japan. TA-Q-BIN connote labels are affixed at the plants of origin or at Yamato Transport’s distribution center. Segawa says, “This dramatically lowers costs because domestic distribution centers are no longer necessary. Until now, a uniform manufacturer in China leased temporary warehouses whenever demand increased seasonally, but after the Yamato Global Direct Solution was implemented, temporary warehouses are no longer required and, as such, the company’s total logistics costs have been reduced by 30%.”
The Yamato Group also uses bonded zones called “Bonded Logistics Zones (BLZ)” for Japanese businesses importing from China. Multiple products from multiple Chinese vendors are collected together at BLZ and are after undergoing logistics-related processing such as kitting and assortment packing shipped to Japanese stores. Through this solution, all products are directly delivered to each store without sorting and kitting upon arrival in Japan.
Case Study 3: Anticipating Advantages from the Import of Various Commodities
Would like to import products from overseas but feels insecure.
Delivering Products Manufactured Overseas Directly to Japanese Consumers via Ta-Q-Bin.
The Yamato Group has worked with a device manufacturer for several years using the “Yamato Global Direct” solution via TA-Q-BIN in which it delivers products manufactured by the company in China to Japanese consumers directly. Changing its logistics service provider to the Yamato Group helped reduce door-to-door transit time as well as the number of customer inquires about the shipping status received by the company’s call center. As a result, the company gave the Yamato Group high marks for its logistics service capabilities. Segawa explains, “We can surely support and contribute to customers who have factories in China by providing a similar “Yamato Global Direct” solution. Starting in February of 2009, we established and launched operations of the Global Direct Sales Promotion Office. In fact, we have been quite successful in delivering value to customers in various industries.
For example, a sporting goods manufacturer produces custom-made products for Japanese consumers in a factory in China and uses “Yamato Global Direct” to deliver these products to the customer’s home. Segawa says, “Users who purchase custom-made, highly preference-based products tend to want to receive these products as soon as possible. Because of this, the company received a large volume of inquiries from customers about the ‘delivery date’. In the case of this sporting goods manufacturer, utilization of ‘Yamato Global Direct’ helped reduce door-to-door transit time from 2 weeks to 1 week. In addition, the Yamato Group can perform payment collections (Cash on Delivery), while the consumer can also instantly confirm the status of a shipment, which naturally helps to enhance customer satisfaction. As a result, the customer was so impressed with our service offerings that they decided to use Yamato Global Direct with TA-Q-BIN for their other businesses in Japan.
Of course, “Yamato Global Direct” can also handle product imports from countries other than China. General Manager Masasumi Kito, Global Direct Division, Yamato Global Logistics Japan Co., Ltd. states that “A certain clothing manufacturer in America uses ‘Yamato Global Direct’ with TA-Q-BIN to affix Yamato domestic connote labels to products manufactured in the United States which are in turn shipped directly to final destinations in Japan. This clothing manufacturer has been expanding its sales in Japan mainly through sales via retail stores located in major metropolitan areas and locally via an on-line shopping site. Also, the number of foreign companies considering the use of “Yamato Global Direct” for their on-line shopping business in Japan is on the rise.”
Case Study 4: Application for Products for which Freshness is Important led to Extended Product Shelf Life and Sales Expansion.
Unable to find a solution for lead time and cost reduction.
Fulfillment of both Lead Time and Cost Reduction.
Reducing lead time by using “Yamato Global Direct” for freshness-sensitive products will help boost sales. At a home improvement store that is expanding nationwide in Japan, “Yamato Global Direct” has been implemented for the import of cut flowers from South Korea. As a result, the former lead time of 2 weeks has been shortened to 5 days. In the past, products were imported from South Korea by sea freight through the company’s own distribution center in Japan and then delivered to stores nationwide. But after the implementation of “Yamato Global Direct” solution, the routing was changed so that products were imported from South Korea by ferry through a Yamato distribution center (not through customer’s facility) and then delivered to stores nationwide directly. Kito explains the results as follows: “When it comes to cut flowers, freshness is very important. Sales periods can be lengthened if lead time is reduced. Of course, waste from product spoilage was reduced, while sales volume rose. Because costs have been reduced by about 20% by saving and improving the shipment’s routing, it’s like killing two birds with one stone.”
This business model has quickly expanded throughout the industry, and has been adopted by other home improvement stores one after another. Furthermore, in addition to home improvement stores, the Yamato Group proposed a solution called “Flower Direct” to customers importing cut flowers from South Korea and China. Using this service, companies import cut flowers utilizing ferries from South Korea and China, meaning that deliveries can be made using temparature contorolled delivery mode called “COOL TA-Q-BIN” in as quickly as 3 days from Pusan, South Korea, and 4 days from Shanghai, China. “Because customs clearance is available even on weekends and holidays, enabling delivery to stores 365 days a year, the service can be utilized with extraordinary flexibility,” says Kito.
This ferry-based solution for cut flowers has been eyed as an effective shipping method for “Yamato Global Direct”. This is because the lead time of the high-speed ferries used by the Yamato Group is shorter than container ships, while shipments also cost less than airfreight. For example, when transporting 30 units of 140 size* cargo door-to-door from Shanghai to Chuo-ku in Tokyo, a container ship would require 11 days of lead time and cost 50,000 yen, with airfreight requiring 4 days of lead time and 230,000 yen. However, high speed ferry requires 5 days of lead time and costs 150,000 yen. The lead time is 6 days shorter than a container ship and costs about 35% less than for airfreight.
*Weight: 20kg – Volume: 0.08m3
Case Study 5: Expansion of TA-Q-BIN Services throughout East Asia draws attention from Overseas Online Shopping Business
Have plans to expand online business to overseas but require a reliable distribution network.
Highly Reliable Distribution Networks and Delivery Services.
Companies have also begun to utilize “Yamato Global Direct” for product exports. On-line shopping businesses have taken the lead in this trend. More and more companies are turning their attention overseas due to the fact that the on-line market in Japan is saturated. This is because at the same time, with China at the lead, economic growth continues to progress in East Asia, and the region’s purchasing power is expanding rapidly. However, a major concern involved in the expansion of on-line shopping business in East Asia was the lack of a reliable distribution network, such as the one found in Japan.
The Yamato Group launched TA-Q-BIN services in Shanghai and Singapore in January of 2010. Services will be also launched in Hong Kong and Malaysia in 2011. Segawa comments, “The Yamato Group has repeatedly received inquiries from health food, cosmetics, and other on-line shopping businesses regarding their interest in using our services for shipping products internationally.”
A fresh food company headquartered in Chiba Prefecture uses the Internet to sell high quality vegetables produced in Japan to the high-net worth consumers in Singapore.
Fresh, high quality vegetables are picked up from various regions of Japan using TA-Q-BIN, assortment packaged for each customer and transported by air to Singapore. Because of this, fresh products can be delivered as is to customers in Singapore. The shortest lead time from a farmer in Japan to a customer in Singapore is 3 days. By using a sophisticated Japanese transportation network to deliver high-quality Japanese vegetables, overseas customers can enjoy fresh products as if they were purchased from a supermarket in Japan.
Segawa notes that “Customers who consider using ‘Yamato Global Direct’ for exports are not only set on reducing lead time and cutting costs. They also have praised the reliability of our delivery service. This is because until now there was no high quality delivery service like TA-Q-BIN in East Asia.”
Also, an optics manufacturer recently began selling high-priced lens for glasses to high-net-worth consumers in China. The company uses “Yamato Global Direct” to deliver its products. These products can only be manufactured in Japan, as the process requires advanced skills and expertise. Nonetheless, many high-income consumers seek custom-made products. This company is looking to expand its marketing channels to China even though it does not want to set up a manufacturing base in China due to intellectual property and skilled labor concerns. “Yamato Global Direct” can respond to these needs as well.