Integration into Dual Sites

Aggregation of scattered shipping bases into a western and eastern site.

Integration into Dual SitesIn response to the shrinking domestic market and decreasing supply destinations, many companies have started to consolidate shipping bases, which were originally created for each regional block. Fuji Logitech helps companies develop a logistics system with two (east and west) shipping sites, manage shipping site operations, and review the delivery network after the consolidation.

Case 1: Major food manufacturer H

Current status and issues

Company H had conducted its main business in the East Japan (Kanto) area. Products from East Japan to branches and stores nationwide were supplied via a mother center called Kanto DC, which handled inventory management. As H's factories and Kanto DC handled some logistics functions also for the West Japan (Kansai) area, where H was planning to expand its business, H was less competitive in terms of lead time from receiving to delivering an order.

Our proposal

Therefore, Fuji Logitech proposed opening Kansai DC. This new location, however, was not established and operated by Company H, instead we aimed at reducing initial investments and operational cost by using Fuji Logitech's existing site and centrally managing center operations.

Results of reforms

Establishing Kansai DC to oversee the West Japan area has resulted in the following benefits: (1) next-day delivery to stores in the Kyushu area; and (2) delivery to stores in the Kansai area before opening hours. This enhanced Company H's competitiveness in the West Japan area. In addition, as Fuji Logitech started to handle orders from stores and branches on behalf of H, and introduced a web-based order system, orders can now be placed at a later time in the day.

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