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Hitachi

Hitachi Transport System

Management Plan

Basic Policy

Under our brand slogan "Taking on the Future" and our business concept "LOGISTEED," the Hitachi Transport System Group is committed to expand collaborative areas across businesses and industries, and create new innovation exceeding the domain of logistics with enhancement of logistics (Smart Logistics) as a function as our core target and aim to create and expand its ecosystem.

[LOGISTEED]: A word that combines LOGISTICS with Exceed, Proceed, Succeed, and Speed.
            It represents our determination to lead businesses to a new domain beyond the conventional logistics.

Under the Mid-term Management Plan (LOGISTEED 2021) covering the period from FY2019 through FY2021 (from April 1, 2019 to March 31, 2022), we will use the platform built by digitalization of the Group and its collaborative partners as a hub for the sharing economy which encompasses industry peers and accelerate more open collaborative innovation, in order to realize supply chain based on and originating from our logistics domain.

The Group strives to enhance our new existence value and increase corporate value by changing and evolving to a company by "LOGISTEED" in order to become the most preferred solution provider

Priority Measures

  • Implement portfolio strategy, including M&A and alliances, to build a solid core domain (Smart Logistics)

  • Implement collaborative innovation strategy aiming at enhancement of the core domain and further expansion of domains
    • We will enhance the core domain and expand target domains through collaboration with SG Holdings Co., Ltd. in our businesses.
    • We will enhance collaboration with 3PL business associated with enhancement of the freight forwarding business through collaboration with AIT Corporation and Kintetsu World Express, Inc.
    • We will create four integrated solutions of "Finance," "Commerce," "Information," and "Logistics" through collaboration with Mitsubishi HC Capital Inc.

  • Design supply chain based on and originating from logistics domain
    • We will realize "Business × Digital transformation" in the core domain.
    • We will expand "On-site capability of logistics × Platform" through digitalization including collaboration with partners.
      ・SCDOS (Supply Chain Design & Optimization Services) that centrally manage and visualize supply chain information and provide support for solving issues
      ・SWH (Smart warehouse) that combines automation/technological development and digital technology and standardizes them for customers' industry
      ・SSCV (Smart & Safety Connected Vehicle) that is a service platform to help transporters achieve zero-accidents and improve operational efficiency by making full use of IoT technology
      ・Development of platform by industry and region
      ・Collaboration to build digital platform to support them

  • Implement topline growth strategy
    • Expand value chain surrounding customers and new services in the untapped domains including "Finance" and "Commerce" (VAS (Value Added service) strategy)
    • Acquire intellectual property rights on and sophisticate 3PL (digital twin/CPS (Cyber Physical System))
    • Increase resilience of transportation business (business expansion with SSCV and centralized vehicle assignment center)
    • Accelerate global growth strategy (region-contained business model)

  • Originate and succeed operation toward the next-generation (hands-on approach)
    • Establishment of solid regional independent operation base led by regional business companies.
    • Serious efforts to "secure, retain and foster human resources" through measures such as "Diversity & Inclusion," "Working-style reform" and "Education for all employees."
    • Promote a sense of "personal ownership" through company-wide bottom-up initiatives in the VC21 activities (increase profitability by KAIZEN, environmental activities, and visualizing organization soundness level)
    • Evolve "Gemba" power and "visualization" through internal DX (increase resilience of sites)

  • Environment/Social/Governance and corporate ethics
    • Implement risk management to increase corporate value and achieve sustainable growth
    • Initiatives for the SDGs (objectives)
      "Pursue Next generation Industries and Lifestyles"
      "Enhance Occupational Safety and Productivity"
      "Ensure Excellent Quality and Resilience"
      "Achieve decarbonization in business processes" (medium-to-long- term environmental targets)
    • 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 First."

【Reference】FY2021 Management Plan (Released in April 28, 2021)
  •  Revenues         :690 billion yen
  •  Adjusted Operating income:37.5 billion yen
  •  EBIT             :37.2 billion yen
  •  ROE             :12.7%

(Please refer to the following materials for the details.)

DX Strategy