Developing a 3PL business in China with the same high service quality as our Japan operations
Following our establishment of the first self-owned distribution processing logistics base in China in 2009, Sagawa Global Logistics began developing 12 different distribution bases concentrated along the Chinese coastline. In 2010, the China-based Group companies Sagawa Silox Shanghai and Sagawa Silox Qingdao received permits from the Chinese government to engage in the forwarding and warehousing business (3PL business), enabling them to act as integrated service providers for international logistics operations between Japan and China. Both companies can carry out inspections, verifications, price labeling, packaging and other operations, and are equipped with a full lineup of equipment including sorters capable of dividing shipments between up to one hundred different destinations. Our facilities can automatically handle difficult operations for heavily mixed shipping processes, such as performing combined packaging of products sent from numerous different production plants before sorting parcels for shipment to different retail stores.
We intend to transplant the know-how we have built up over the years in Japanese operations to our expanding 3PL business in China and other parts of Asia, and with the aim of providing high-quality and in-depth service at on par with that offered in Japan at low cost, we will make our two China-based group companies into important bases of business operation.
- In addition to logistics processing (inspection, verification, price labeling, sorting by recipient, etc.), integrated logistics services are available, from shipment from the plant in China to arrival at the destination port in Japan.
Expanding our services in consideration of customers' needs
As we move forward, the SG Holdings Group will utilize experience and expertise gained in the Japanese logistics business to offer optimized logistics services to its customers through increasingly sophisticated operations. As a member in the logistics industry directly engaged in the movement of goods and materials, we are able to precisely grasp what is being sold and where. This understanding of the changes in the consumer market, combined with additional capabilities such as accounts settlement, enables us to offer a wide range of services extending beyond logistics to support our customers' business operations.
In consideration of the continuing growth of the Chinese consumer market, we intend to expand our distribution activities within the country. By establishing logistics bases overseas using the advanced know-how and services of our Japan operations, highly reliable and efficient distribution operations can be realized domestically within China. The globalization of distribution will undoubtedly continue in the future. In this regard, we will continue to strengthen services offered in China and East Asia where demand is highest. As the need arises, we will also expand our 3PL business to ASEAN countries and other regions while bolstering transport operations in regions where we already do business.
Shin Nihon Seiyaku Co., Ltd.
Director and General Manager
Business Planning Department
Our company sells beauty and health products through mail-order sales stretching to all corners of Japan. In order to create new business, we started mail-order sales in China following the model we used in Japan, which centers on Web-based sales. There were a number of obstacles to overcome when we started up in China, including adjusting to differing accounting procedures, learning about Chinese labor laws, and acquiring required licenses for goods imported into China from Japan. We also needed to learn more about Chinese people's way of thinking in order to effectively sell products.
Because we were already contracting our logistics operations in Japan out to the SG Holdings Group, both parties were partners who knew the other well. Therefore, we left a wide range of operations for China in the group's hands, from standard operations including inventory and systems management, receipt of goods, packaging, delivery, product returns and stocktaking, to thorough business support including introductions to members of industry and building relations with contacts. We hope that we can continue to grow together as trusted partners in our overseas endeavors.
Since its founding in 1992, Shin Nihon Seiyaku has expanded its mail-order sales business through an integrated operating structure focusing on the themes of health and beauty, undertaking selection of choice medicinal products, cosmetics, health and diet foods, and other products, and even providing healthcare support services. From marketing research, product planning and development, and quality control through to advertising strategy, product order management, mailing preparations and customer support, the entire group practices its policy of "One to One health & beauty care." Furthermore, through expansion in the Chinese market, opening of directly managed stores, and entry into the insurance business, Shin Nihon Seiyaku is continuing to expand its fields of business activity.
Shin Nihon Seiyaku Co., Ltd.
Century Akasaka-mon Bldg.
1-14-22 Akasaka, Chuo-ku, Fukuoka, Japan