To the next level in global logistics Vol.2
- ― Dynamic global growth
- Such efforts are paying off. The Nippon Express Group is moving at a fast clip towards its vision to become "a logistics company with a strong presence in the global market".
- "The past three years have delivered very strong results in terms of achieving our most important management goal of global growth," Uchida says.
- Overseas revenues for 2021 hit $6bn (out of total group revenues of $20.3bn), widely exceeding a mid-term target of $4.5bn set in 2019. The Nippon Express Group is steadily advancing towards its target for 2037, the company's centenary, in which half of all Group sales, expected to reach $30bn-$35bn, is generated overseas. *1
- In each of the Group's five key growth sectors - Electric and Electronics, Automotive, Apparel, Pharmaceutical/Medical and Semiconductor - overseas revenues jumped by over 30 per cent in 2021 year on year. The robust figures reflect how the global forwarder is successfully matching the evolving needs in the circulation of goods critical to our world economy.
- In automotives, the Nippon Express Group has been helping carmakers shift toward EV production, setting up new operations and services in regions such as Central and Eastern Europe as well as North Africa, which are emerging as key manufacturing spots. In semiconductors, where geopolitical pressures to re-shore and shorten supply chains remain significant, the company has been expanding domestic logistics services within the US and Taiwan. In its mainstay electronics businesses, the company has acquired new clients such as device makers, in part through a new approach of managing global key accounts with direct involvement of top-level executives.
- M&A efforts and synergies are also bearing fruit.
- "Our recent acquisition of the US pharma logistics company MD Logistics is a vital step forward for establishing a global platform for pharmaceuticals based on global quality standards such as GDP," says Uchida.
- "We have already established a network infrastructure, including a digital platform, in Japan and hope to expand this network in other regions to create an end-to-end worldwide solution for pharma logistics."
- Elsewhere, the company's recent acquisitions of European luxury fashion logistics companies and partnerships with major fast fashion companies give it a strong position to capture recovering post-pandemic demand in global shipments of both fast and high-end global apparel.
1 Converted at the exchange rate in effect at the end of December 2021.
This content was paid for and produced by Nippon Express in partnership with the Commercial Department of the Financial Times.