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.)

Chapter-01.

Procurement / Sales Agency Services for Mid-sized Component Manufacturers  
Providing the Required Platform for International Distribution

Photo
Tetsuya Egashira
President
Representative Director
YAMATO PACKING SERVICE CO., LTD.

As a logistics company, Yamato Packing Service (YPC) provides packing, domestic and international shipments, and customs clearance operations to its client. Just like a trading company, YPC also offers order and payment operations as well as agency services for all procedures related to the import and export of merchandise.

Clients of YPC have access to its Global Distribution Support Solution, which provides these services.

What sets YPC apart from trading companies is the fact that it does not go out of its way to select which products to carry. With this as the only exception, YPC provides its client companies access to a comprehensive distribution platform required for just about any international transaction involving producer goods, and it provides international procurement and sales agency services to mid-sized components and materials manufacturers as well as general trading companies. This enables its client companies to focus on what they do best – their core business.

YPC President Tetsuya Egashira explains the impetus for these solutions as follows: "Many manufacturers have already reduced manufacturing cost price as far as possible, so the only other alternative they have is to make changes to their manufacturing management or sales and general administrative expenses. Although not a problem for major manufacturers that can streamline operations on their own, this does pose a serious challenge for most mid-sized manufacturers. This is where our Global Distribution Support Solution comes in handy."

The prolonged appreciation of the yen has caused many tier-one component and material manufacturers to follow their major manufacturing customers overseas. In turn, following in the footsteps of their tier-one manufacturing customers, tier-two manufacturers have also advanced overseas. Manufacturers that are unable to expand overseas using their own resources have been forced to respond, for example by shipping their Japan-made components to their customers' overseas sites.

Yet, further global expansion and prolonged yen appreciation seen in recent years has meant that component and material manufacturers are no longer able to respond to the demands of major manufacturers simply by shipping their components overseas. These major manufacturers want to avoid inventory risk, so they demand just-in-time (JIT) delivery to every extent possible, even for their overseas locations.

The reason for this can be found in the fact that major manufacturers are increasingly able to procure components and materials locally thanks to technological advancements made by manufacturers in China and Southeast Asia. Tier-two manufacturers which have remained in Japan to take advantage of local technological strength are faced with the urgent tasks of offering JIT deliveries, while also cutting costs even further. In addition, companies that have bet their future on relocating production sites overseas now find that they must also be able to ship their components from these sites to destinations around the world.

As a result of today's global supply chains, the number of companies implementing YPC's Global Distribution Support Solution is on the rise.


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  • 05
  • (Previous) Yamato Group Solutions Index
  • (Next) A Business Model Evolved from the Packing Business

<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.