Yamato Group Solutions

Seamlessly Supporting the International Distribution Needs of Component Manufacturers  
Global Distribution Support Solution

Shortening Lead Time and Reducing the Cost of Procurement

Influenced by the appreciation of the yen, corporate Japan is currently accelerating the pace of its global expansion. Major manufacturers that have shifted their production sites overseas are already forcing strict business terms on their partner tier-one manufacturers in order to achieve globally-optimized procurement. However, nearly all tier-two manufacturers that supply components and parts to tier-one manufacturers have been left behind in Japan, meaning tier-one and tier-two manufacturers now face the challenge of procuring materials across international borders in order to maintain their supply chains. The Yamato Group's Global Distribution Support Solution helps these companies to build and expand their supply chains globally.  
(Reporting and editing by Nikkei BP Consulting Inc.)


Sales Support Derived from Procurement Support 
Providing Only What’s Needed

The key point to YPC's solution business is that it provides all of the operations that once were highly segmented in a one-stop service. This business was made possible by YPC's EASY, a cloud-based IT system that perfectly fulfills the needs of users, and Export Factory, which serves as a centralized logistics platform.

Actually, providers of such one-stop services were almost unheard of in the world of international logistics involving materials and components made by mid-sized manufacturers. YPC was able to successfully develop this solution by using its core export packing business to uncover the needs of its clients and by creating a full lineup of services that capitalize on the Yamato Group's strengths, such as IT systems.

YPC has continually tweaked and revamped the functions of this solution based on the needs of its customers.

In the case of Company A, YPC helped supply items procured from tier-two manufacturers to its overseas subsidiary. For the tier-two manufacturers, however, this represents a sales support solution. This demonstrates that YPC also provides sales support services globally.

For example, tier-two manufacturer Company B has begun using YPC's Global Distribution Support Solution to manage components produced at its factory in China. In addition, electronic component trading firm Company C, which is based out of Hong Kong, is also using the solution to import parts through its Japanese subsidiary and sell them to Chinese manufacturers.

In its business dealings with Company C, YPC has also come up with new services. YPC is currently paying Company C's suppliers on its behalf with the hopes of winning a mandate to run the company's entire procurement operations in Japan. The solution involves Yamato Financial, a financial services company of the Yamato Group, first purchasing components from the suppliers and then transferring ownership to Company C at the time these components are shipped from the warehouse.

YPC initially believed that its one-stop service could be achieved by having clients implement all of the services it provides. For example, use of YPC's EASY IT system by all the parties involved would be essential to enhancing the service level of the entire solution.

However, Egashira says that as they began rolling out the solution, "We found that such an approach would be rather difficult, so we decided to build an IT platform specifically to trace the status of component business operations."

Rather than having clients implement all of its services, YPC changed course and consolidated all information into a single IT system, providing the most optimal services to suit each client's needs. Necessary data is then reported from related parties based on predetermined rules. This flexibility has enabled YPC to capture a great deal of business.

  • 01
  • 02
  • 03
  • 04
  • 05
  • (Previous)  Restructuring Operational Processes from the Recipients’ Standpoint
  • (Next) Meeting the Expectations of a Component Manufacturing Cluster

<Global Distribution Support Solution > 
Seamlessly Supporting the International Distribution Needs of Component Manufacturers

  • Chapter-01. 
Procurement / Sales Agency Services for Mid-sized Component Manufacturers
  • Chapter-02. 
A Business Model Evolved from the Packing Business
  • Chapter-03. 
Restructuring Operational Processes from the Recipients' Standpoint
  • Chapter-04. 
Sales Support Derived from Procurement Support
  • Chapter-05. 
Meeting the Expectations of a Component Manufacturing Cluster

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About the Yamato Group

The Yamato Group includes the following companies: Yamato Transport Co., Ltd., which has developed an express delivery network nationwide; Yamato System Development Co., Ltd., which develops and operates diverse IT solutions including data centers; Yamato Home Convenience Co., Ltd., which transports and sets up consumer electronics, household goods, and machinery that cannot be transported via express delivery; Yamato Logistics Co., Ltd., which specializes in domestic and overseas logistics outsourcing; Yamato Financial Co., Ltd., which provides settlement services; and others. These companies pool their talents, which encompass "information, logistics, and settlement", to provide optimal solutions from a comprehensive perspective to the problems of client companies.