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Hitachi

Hitachi Transport System

[Japan] Improved efficiency of dry food delivery system

In the distribution process of foods, where responding to surges in the order volume is a challenge, we renewed the logistics scheme to a highly efficient one, with a 24/7 operating center as a key component, which is capable of promptly responding to delivery orders. Facility consolidation has led to cost optimization, while we also realized service quality improvement in the sales and distribution logistics.

Customer's Challenges

CHALLENGE 1

Logistics bases being decentralized by function

Our customer had separate logistics bases by function (import, domestic direct distribution (DC), and regional distribution). Different contractors were administering the respective duties, and efforts for optimization were focusing on each individual unit.

CHALLENGE 2

Quantity surges

It was challenging for the customer to absorb sudden surges of processing tasks after the daily order cutoff (in the afternoon). Another challenge was the cost reduction.

CHALLENGE 3

Inefficient resource allocation

Each time the volume exceeded the warehouse's upper limit, they were arranging additional storage space with each logistics company. From the overall SCM standpoint, there were some space and labor being wasted.

How Hitachi Transport System Solved Them

SOLUTION 1

Surge absorption and effective use of resources through base consolidation

We consolidate all the respective functions of import, domestic direct delivery, and regional delivery, into one location. We were able to reduce inventory and strengthen the ability of absorbing surges in the space occupation within the center.

SOLUTION 2

Better flexibility with 24-hour operation

By having the logistics center with 24/7 capability in our plan, we were able to draw a reasonable time chart that fit the order reception system. This also enabled us to operate with optimal staffing.

SOLUTION 3

Regular KPI reporting and overall optimization

We periodically report on the dynamic statistics of inventory and shipping, along with warehousing capacity available. We contribute to inventory control of customer products and import goods and coordination between logistics bases. Also, we proactively coordinate with other companies as needed, in order to operate transport vehicles efficiently.

Some More Facts about the Value We Deliver

Thanks to our experience in managing many logistics centers, we were able to exploit our abundant expertise in order to drive consolidation and integration smoothly. We help you to improve your sales logistics' responsiveness and its cost efficiency.

Comprehensive SCM improvement, including footprint review

We overhauled the logistics scheme into individual steps, and restructured it with a 24/7 operating center as a key component. We have also implemented measures for overall SCM improvement.

Comprehensive SCM improvement, including footprint review