The SG Holdings Group (SG Holdings and its associated companies) is comprised of SG Holdings, which is a pure holding company, 102 consolidated subsidiaries and 9 equity-method affiliates and is engaged primarily in the Delivery, Logistics and Real Estate businesses.
Overview of SG Holdings Group Business Process
The main business process of the SG Holdings Group is shown to the right. The logistics solutions provided by the Delivery Business and the Logistics Business are supported by the associated services of the Real Estate Business and other businesses providing business infrastructure functions.
Characteristics of Business Promotion by SG Holdings Group
The SG Holdings Group has built a logistics and delivery network capable of supporting shipments based on various needs of corporate customers, including form, frequency and volume. We have developed our business with a focus on logistics services catering to the needs of corporate customers (business to business [B to B] and business to individual [B to C], collectively “from B”).
To promote our business, our sales drivers not only collect shipments but also identify the needs of corporate customers as sales representatives and provide proposals for solutions. By understanding the supply chains of our corporate customers, we propose and provide efficient logistics systems that utilize the myriad resources of our Group.
Additionally, as a specific measure for promoting these proposals related to our logistics solutions, we assembled an advanced logistics project team called “GO Advanced Logistics” (“GOAL®”) in the fiscal year ended March 31, 2015 to consider and propose integrated cross-Group logistics services utilizing the resources of each company within the Group, primarily in the Delivery and Logistics businesses. Through this measure, we provide proposals designed to solve the logistical challenges of our customers.
By continuing to strengthen and promote these efforts, we aim to become the logistics group of choice for our corporate customers.
In this business, we provide goods transportation services centered on the parcel delivery business leveraging our network that covers the whole of Japan primarily to corporate customers.
The needs of corporate customers are diverse, ranging from small or large volume shipments to handling of cargo of various shapes and sizes. As such, in addition to our main service of parcel delivery, we have built logistics facility and network infrastructure capable of handling large cargo such as large furniture and home appliances. Our system enables us to respond flexibly and efficiently.
Taking advantage of the characteristics of this infrastructure, we develop and provide services with high added value for our corporate customers. These include our Smart Delivery service, which contributes to optimization of receipt of goods through collective delivery to corporate customers after pre-sorting shipments that used to be delivered individually from multiple shippers at Sagawa Express branches, our facility logistics service, which involves centralized management of people, objects, vehicles and information to improve logistical efficiency, accepting batch deliveries to large-scale multi-purpose facilities and delivering them to individual stores within the facility, and our Transportation Management System (TMS), which provides optimal logistics services to corporate customers leveraging our logistics network and know-how and utilizing Group and third-party carriers.
- Main Subsidiaries
- Sagawa Express Co., Ltd., SG Moving Co., Ltd., World Supply Co., Ltd., and 2 others (including 1 affiliate) (total of 5 companies)
In this business, in addition to 3PL such as logistics processing services and distribution center/warehouse management services, as well as international transportation services that include customs clearance/forwarding services, we provide local distribution overseas, offering logistics services in each region through our overseas locations.
We propose the development of optimal logistics systems that include the above TMS, taking into account the existing logistics systems of our corporate customers, and pursue efficient logistics processing and warehouse management through the introduction of personnel productivity management, visualization of operations information through our Warehouse Management System (WMS) and material handling (a system for improving the efficiency of logistics processes and cargo handling within facilities, including automation of transport and inventory control). A particularly distinctive characteristic of the operations at our Group is that we aim to improve the efficiency of warehouse management through coordination with our Delivery Business, which covers most of our customers' supply chains. This can be seen in our distribution centers (SRC), which have eliminated lead times between warehouses and transportation hubs by integrating warehouses and Sagawa Express branches.
We are also engaged in international transportation to and from Japan in coordination with our Delivery Business and promote expansion of our logistics services seamlessly linked to our overseas facilities. In particular, we provide integrated corporate logistics services not only in Japan but within the Asian region by building local transportation networks within Asia and other regions where growth is expected, and by offering forwarding services.
- Main Subsidiaries
- Sagawa Global Logistics Co., Ltd., Sagawa Logistics Partners Co., Ltd., SGH Global Japan Co., Ltd., Expolanka Holdings PLC, Expo Freight Private Ltd, Expolanka USA LLC, EFL Container Lines LLC, SG SAGAWA USA, INC., Expolanka Freight (Vietnam) Ltd., SAGAWA EXPRESS VIETNAM CO., Ltd., SG SAGAWA VIETNAM CO., Ltd., Expo Freight Ltd, Expolanka (Private) Ltd., Expolanka Freight (Private) Ltd., Sagawa Express (H.K.) Co., Ltd., Poly-Sagawa Logistics Co., Ltd., Expo Freight (Hong Kong) Limited, Expolanka Freight Dubai LLC, PT. Expo Freight Indonesia, SG SAGAWA AMEROID PTE. Ltd., and 74 others (including 8 affiliates) (total of 94 companies)
Real Estate Business
In this business, we develop, lease and manage real estate, primarily logistics facilities which are the business infrastructure for the provision of logistics solutions.
Specifically, we contribute to improved competitiveness of our logistics solutions through the development of SRCs, which are our integrated logistics facilities designed to improve the operational efficiency of both our Delivery Business and our Logistics Business and, at the same time, promote optimization of logistical efficiency through renovation and scrap and build of old existing assets and facilities of low logistical efficiency. These efforts are not limited to facilities utilized by our Group but also extend to the development, management and utilization (CRE) of properties according to the needs of customers, including ones in other industries.
When implementing these efforts, we aim to increase asset and capital efficiency as well as to efficiently increase the number of property developments by establishing trust beneficiary interests and selling logistics facilities held by our Group to acquire new facility development funds. After selling these facilities, SG Assetmax engages in property management.
Additionally, as part of our CSR activities, we generate and sell solar power utilizing these logistics facilities.
- Main Subsidiaries
- SG Realty Co., Ltd., and 1 other (total of 2 companies)
Our Group possesses functions related to various business infrastructures other than the Real Estate Business that enable us to provide efficient logistics solutions. Specifically, our associated companies provide both internal and external companies with services including transportation-related property and casualty insurance agency services, sales of truck fuel, maintenance and sale of transportation vehicles, development and operation of logistics systems, provision of cash-on-delivery services for parcel deliveries, and staffing and subcontracting primarily for operations within logistics facilities.
Our GOAL® team proposes and provides comprehensive logistics solutions that include utilization of these associated services.
- Main Subsidiaries
- Sagawa Advance Co., Ltd., SG Motors Co., Ltd., SG Systems Co., Ltd., Sagawa Financial Co., Ltd., SG Fielder Co., Ltd., and 3 others (total of 8 companies)