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.)


Meeting the Expectations of a Component Manufacturing Cluster 
Sanin Trinity Distribution Center Commences Operations

In January 2012, YPC opened its Sanin Trinity Distribution Center in Yonago City, Tottori Prefecture. The facility functions the same way as the Export Factory in Ichikawa City, Chiba Prefecture, but was given the name Trinity Distribution Center because it was designed to handle imports and exports, as well as order taking and settlement operations for both. The name "Trinity" was also coined from the fact that YPC provides IT, logistics and financial services, and that the project was implemented by three parties: YPC, user companies, and Tottori Prefecture.

The Sanin region of Japan, which flourished as a so-called "major electrical manufacturer company castle town," calls home to more than 500 manufacturers of electronic components and electronic appliances. After many of the major manufacturers' factories were relocated overseas, the component manufacturers that remain in the region have been looking towards South Korean manufacturers and other means to fill the void.

The Port of Sakai, one of Tottori's main seaports, has international sea cargo services, but it also faces several challenges, like the fact that liner services are few and far between. As a result, a majority of companies in the region that do business internationally must first ship their products by land to either the Port of Osaka or Port of Kobe for exporting.

Recognizing this conundrum, the Government of Tottori Prefecture asked YPC for assistance. YPC began talks with companies in the region, and found the real reason why they were avoiding the Port of Sakai. Shippers were troubled by the fact that there was not a single company at the Port of Sakai that could provide a one-stop service, so they were forced to pay the higher costs and use the Port of Osaka or Port of Kobe because of the better facilities offered there. In this regard, YPC's Global Distribution Support Solution represented the answer.

YPC decided to set up operations in Tottori knowing that if it captured this latent demand, the venture would be a success. After a preparation period of nearly one year, YPC opened the Sanin Trinity Distribution Center. This facility is already supporting the global procurement and sales needs of five companies.
"If we can shore up our operational aspects, volume at the Port of Sakai will increase. In turn, this will create a positive cycle where more liners will call at the port, which will help reduce costs and shorten lead time for component manufacturers," says Egashira quite enthusiastically.

In the wake of the Great East Japan Earthquake and major flooding in Thailand from 2011, many of Japan's manufacturers are paying greater attention to supply chain risk management from the standpoint of business continuity. As a result, the ability to quickly and relatively easily make changes to procurement venues in the event of an unexpected contingency has been one factor behind the growth of YPC's solution business.

(Information published in this article represents information available as of the date it was written. Department names and job titles may have changed since then.)

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  • (Previous)  Sales Support Derived from Procurement Support

<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.