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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” since 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 our core 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 Platform Business. (medical, automotive, distribution and daily commodities, etc.)
  • Enhance overseas 3PL business
    1. [Asia] We will expand existing account business and cultivate new global accounts by expanding truck network (expand cross-border logistics within the area departing from Thailand, etc.)
    2. [North America] We will expand 3PL business of automobile parts and Non-Auto field by enhancing NAFTA transportation network.
    3. [Europe] We will expand business in Western/Eastern Europe with intermodal and cross-border transportation based in the growing market, and develop new transportation business connecting Europe and Central Asia.
    4. [China] We will expand domestic truck transportation business and increase logistics volume of consumer products. (refrigerated products, etc.)

2) Expand forwarding business

  • We will improve profitability and enhance offshore business through globally-unified management.
    • We will develop 3PL supplemental forwarding service. (Brush up forwarding system and connect with 3PL.)
    • We will enhance price competitiveness by sorting out offshore routes and selection and concentration of carriers.

3) Enhance Heavy Machinery and Plant Logistics

We will strengthen the Company's own resources, including expansion of project cargo network and asset implementation, and deepen collaborative innovation with partners, with the aim of increasing domestic and overseas orders of social infrastructure-related business such as electricity/energy, transportation, and industrial/production equipment.

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

5) Emphasize Corporate Social Responsibility (CSR) and enhance corporate value

  • We will continue to work on working method transformation.

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

  • We will promote preventive maintenance measures under the slogans “Safety is of the highest priority” and “Safety management by walking around.”
  • We will promote CSR activities focusing on pillars of “logistics quality,” “Information security,” “AEO/export management” and “Green logistics.”
  • We will promote social contribution activities through business activities such as training logistics personnel from emerging economies/regions as well as hiring local personnel.
  • We will ensure to bear in mind the notion of "Basics and Ethics." (Enhance compliance and governance)
【Reference】 FY2018 Mid-term Management Plan
  ・Revenues:800 billion yen
  ・Adjusted Operating income:34 billion yen
  ・EBIT:40 billion yen
  ・ROE:10.8%
  (Please refer to the following materials for the details.)