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Hitachi

Hitachi Transport System

Management Plan

Basic Policy

The Hitachi Transport System Group has been promoting Mid-term Management Plan (FY2016-FY2018) “Value Creation 2018” in April 2016. Under the Mid-term Management Plan, based on the basic strategy for our core businesses to “Drive thorough enhancement of 3PL business and increase market share,” “Enhance forwarding business” and “Enhance Heavy Machinery and Plant Logistics,” we strive to create “values” by invigorating “collaborative innovation” with our customers and business partners and also to improve the Group's corporate value by enhancing our “Earning capability” and “Growing power” as well as “Sustainable capability” these abilities.

Priority Measures

Amid a breakthrough in technologies including "IoT," "AI (Artificial Intelligence)," "Robotics" and diversification of services, methods and values in the society such as "FinTech" and "Sharing Economy," we will promote various measures to achieve new innovations by expanding collaborative areas across businesses and industries, with "enhancement of logistics as a function" as our core target.

1) Enhance and evolve our 3PL business

  • Enhance domestic 3PL business
    • We will enhance delivery solution. (expand "B to B" business to "B to B to C" business)
    • We will accelerate the development of region-based business under the leadership of regional business companies.
    • We will implement new smart logistics technologies to improve on-site operation and differentiation.
    • We will establish and implement standard 3PL model to expand industry-based (medical, automotive, distribution and daily commodities, etc.) and area-based Platform Business.
  • Enhance overseas 3PL business
    1. [Asia] We will expand truck network (expand cross-border logistics within the area, etc.) and cold chain logistics.
    2. [North America] We will expand 3PL business of automobile parts by enhancing NAFTA transportation network and start operation of a next generation distribution center. (Non-Auto field)
    3. [Europe] We will expand intermodal business from Turkey. (to Northern Europe and Central Asia)
    4. [China] We will expand business in inland area. (Xian, Chongqing and Chengdu)
  • Evolve into a SCM partner from a logistics partner
    1. Design the best SCM network through consulting capability and 3PL management capability.

2) Enhance Heavy Machinery and Plant Logistics

  • We will increase domestic and overseas orders of social infrastructure-related business such as electricity/energy, transportation and industrial/production equipment.
  • We will expand plant 3PL business and plant logistics/environment business.

3) Enhance forwarding business

  • We will improve profitability and enhance offshore business through globally-unified management.
  • We will expand project forwarding by combining 3PL, Heavy Machinery and Plant Logistics.

4) Promote collaborative innovation and collaboration to realize seamless general logistics service

  • Promote collaborative innovation and collaboration with SG Holdings
  • Promote vertical and horizontal collaboration in logistics/supply chain
  • Implement a portfolio strategy suitable for business domain

5) Continue to work on working-style reform

    "Secure, retain and foster human resources" and "Improve productivity" through measures such as "Diversity & Inclusion," "Standardize systems (improve workers' treatment)," "Improve on-site environment including logistics centers" and "Education for all employees."

6) Behavior based on corporate ethics

  • We will promote various initiatives focusing on corporate social responsibility (CSR) in ESG (Environment, Society and Governance)
  • We will ensure to bear in mind the notion of "Basics and Ethics." (Enhance compliance and governance)
  • We will promote enhancement of "Logistics quality," "Information security," "AEO/export management" and "Green logistics," etc.
  • We will promote preventive maintenance measures under the slogans of "Safety is of the Highest Priority" and "Safety Management by Walking Around. Stop and Remove Unsafe Conditions."
【Reference】 FY2018 Mid-term Management Plan(Revised on April 27, 2018)
  ・Revenues:710 billion yen
  ・Adjusted Operating income:31.0 billion yen
  ・EBIT:34.7 billion yen
  ・ROE:9.6%
  (Please refer to the following materials for the details.)