Case Study 1: Improved Logistics Efficiency for Procurement From Overseas
A need for improvement in logistics efficiency for overseas procurement.
As business across international borders has become the norm, many corporations conduct procurement and obtain supplies through imports 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 your current situation.
Realize reduced costs and faster shipping by utilizing the TA-Q-BIN network in Singapore and overseas. We support global businesses with high quality services.
Yamato Global Direct provides simplified and efficient logistics services by directly linking the forwarding capabilities of Yamato Group with the TA-Q-BIN networks in Singapore and overseas. In addition to shipping from overseas to Singapore, we can provide integrated shipping from Singapore to final destinations overseas. For example, we can handle fresh food imports. Due to limited sales opportunities, products must be delivered as efficiently as possible. However, until now, many businesses dealt with products which had to pass through several logistics companies after being imported, and then be temporarily stored in local warehouses. Yamato Group provides integrated management from overseas until the final destination in Singapore. Furthermore, although imported products usually have to be stored in warehouses after import with the use of conventional logistics services, we can put products directly into our TA-Q-BIN network after import. This results in reduced costs and increased delivery speed, as well as reduced lost sales opportunities.
Case Study 2: Three Days Service from On-Site Factories in Shanghai to Destinations within Japan
Mounting intermediate storage costs for moving products to import warehouses.
30% cost reduction through the elimination of using 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 Masahiro Segawa, General Manager of the Global Customer Solutions “Yamato Global Direct” Promotion Business Development Sales division 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 through customs, from TA-Q-BIN centers to destinations without using warehouses or distribution centers in Japan. TA-Q-BIN 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, these 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 the BLZ and are shipped to Japanese stores after undergoing logistics-related processing, such as kitting and assortment packing. 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
Feeling insecure about importing products from overseas.
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 Yamato 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 inquiries received by the company’s call center regarding the shipping status of their parcels. As a result, the company gave the Yamato Group high marks for its logistics service capabilities. Segawa explains, “We can definitely support and contribute to customers who have factories in China by providing a similar Yamato Global Direct solution. In February 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 their homes. 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 performs payment collection (Cash on Delivery). This allows the consumer to 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. Masasumi Kito, General Manager of the Global Direct Division, Yamato Global Logistics Japan Co., Ltd., explains that a certain clothing manufacturer in America uses Yamato Global Direct with TA-Q-BIN to affix Yamato domestic labels onto 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 an online shopping site. The number of foreign companies considering the use of Yamato Global Direct for their online 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 reduction of lead time and costs.
Reducing both lead time and costs by employing Yamato Global Direct services.
Reducing lead time by using Yamato Global Direct for freshness-sensitive products will help boost sales. Yamato Global Direct has been implemented for the import of cut flowers from South Korea at a home improvement store that is expanding nationwide in Japan. 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. However, after the implementation of our 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 the customer’s facilities) 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. Costs have also been reduced by about 20% through the implementation of Yamato Global Direct, so 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. Deliveries can be made using our temperature-controlled delivery service, Cool TA-Q-BIN, in as quickly as 3 days from Pusan, South Korea, and 4 days from Shanghai, China. “The service can be utilized with extraordinary flexibility because customs clearance is available even on weekends and holidays, enabling delivery to stores 365 days a year,” says Kito.
This ferry-based solution for cut flowers has been praised 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. Furthermore, shipments 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. Air freight would require 4 days of lead time and cost 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 air freight.
*Weight: 20kg – Volume: 0.08m3
Case Study 5: Expansion of TA-Q-BIN Services Throughout East Asia Draws Attention from Overseas Online Shopping Businesses
Lacking a reliable distribution network that can help to realize plans to expand an online business overseas.
Providing highly reliable distribution networks and delivery services.
Companies have begun to utilize Yamato Global Direct for product exports. Online shopping businesses have taken the lead in this trend. More and more companies are turning their attention overseas due to the fact that the online market in Japan is saturated. This is because at the same time, with China in 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 online shopping businesses in East Asia was the lack of a reliable distribution network, unlike in Japan.
The Yamato Group launched TA-Q-BIN services in Shanghai and Singapore in January 2010, and in Hong Kong and Malaysia in 2011. Segawa comments, “The Yamato Group has repeatedly received inquiries from health food, cosmetics, and other online 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 wealthy consumers in Singapore.
Fresh, high quality vegetables are picked up from various regions of Japan using TA-Q-BIN. Assortments are packaged for each individual customer and then 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, “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.”
An optics manufacturer recently began selling high-priced lens for glasses to affluent 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 wealthy consumers seek custom-made products. This company is looking to expand its marketing channels to China, but it does not want to set up a manufacturing base there due to intellectual property and skilled labor concerns. Yamato Global Direct can respond to these needs as well.