Distribution, Retail, Major Chains

"Overseas Procurement Hub" optimizes your SCM

"Optimizing the supply chain from factories in Asia to shop shelves in Japan..."
Through implementations "Overseas Procurement Hub *", we have improved cargo efficiency for international container transport, enhanced domestic transport efficiency, increased inventory accuracy, and reduced the amount of work required in stores after delivery. This is case for apparel business, however this scheme can be implemented to other industries such as manufacture.

Customer Issues & Objectives

Apparel Company example: This company was receiving individual shipments from each of their suppliers throughout Asia. When shipments reached the logistics center per merchandise in Japan, the cargo was unloaded and sorted according to store branch, then delivered to each domestic branch. This method presented various issues, such as international container transport load efficiency, domestic delivery cost, cumbersome in-store receiving process, and distributive processing by in-store sales staff(Goods sorting, counting, tagging).

Solutions

• Before

  

• After

  

In order to "optimize the supply chain from factories in Asia to shop shelves in Japan," we set up "Overseas Procurement Hub" warehouses and conducted distributive processing such as branch-based sorting, inspections and needle detection in Asia, completing many of the tasks in China that would normally be performed in Japan, thus reducing various costs.

And then, for international transport conventionally carried out individually by merchandise, knowing the final destination within Japan, we effectively utilized ports closest to point of consumption, shortening the distance between outsource factory and stores and streamlining the supply chain.

The definition of "Overseas Procurement Hub" is a logistics center for export goods supplied by various venders to Japan and other countries. This center handles consolidation of various export cargo, distributive processing by in-store sales staff(Goods sorting, counting, tagging) and export operations. Therefore such center is valuable for supply chain management.

Operation scene of "Overseas Procurement Hub"

• 
  Inspection
• 
  Needle Detection, Inspection
• 
  Distributive processing (Hanging clothes)

Solution: Key Points

• Setup "Overseas Procurement Hub" warehouses in eastern and southern districts of China to consolidate shipments from various outsource factories. Product is loaded into marine containers at the consolidated warehouses, rather than at each factory.
• Set up distribution centers (DC) at 4 key ports in Japan (Kanto, Kansai, Chubu, Kyushu), based on proximity to point of consumption.
• Conducted inspection, needle detection, distributive processing, and store labeling at procurement hub warehouse in China, transport in international marine container to closest port to corresponding DC.
• Procurement hub warehouse in China communicates with venders in China, partly on behalf of buyers in Japan.
• Procurement hub warehouse in China provides bonded logistics park functions and stores merchandise as non-resident inventory.

Effects & Merits

• Improve cargo efficiency and make it easier to adjust transport frequency by switching from shipping merchandise in marine containers from each outsource factory to consolidating transport using export hubs.
• Reduce shipping costs within Japan by transporting merchandise in international marine containers to the Japan-side DC (total of 4 DCs) closest to the point of consumption.
• Reduce lead time, set up flexible emergency response, and increase.
• Reduce number of tasks normally completed in Japan, such as DC operations, in-store product receiving, and other in-store tasks by conducting inspection, needle detection, distributive processing, and store labeling in China. Complete tasks while inventory is in China results in cost-savings.
• Reduce required warehouse space in Japan and keep domestic inventory at proper levels by storing merchandise affected by seasonal fluctuations as non-resident inventory in procurement hub warehouses.

Solution Features

Network of 211 locations in 51 cities across China

Boasting the most locations among all Japanese distribution companies operating in China, we offer optimum warehousing conditions.

Design and Operate Distribution Centers Integrating Knowhow Accrued in Japan

Nippon Express designs the optimum warehouse based on productivity learned from years of experience in distribution operations.

Our Services

• Distribution Center Construction

  We meet all our customers' needs and expectations regarding distribution centers, an inventory center for raw materials or products, a supply center, or an international transport support center.

• Ground Freight

  Efficient delivery systems backed by a countrywide network of 1,100 locations