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| Top page > News > 2007 |
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| SG Holding Group establishes a mid-term management plan; the "SgH First Stage Plan".(3/28/2007) |
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- The first mid-term management plan since SG Holdings was established. -
SG Holdings Co., Ltd. has formulated the "SgH First Stage Plan", a mid-term management plan for the three years from FY2007 to FY2009.
Sagawa Express Co., Ltd. established the holding company - SG Holdings Co., Ltd. - on March 21, 2006, to speed up management decisions, in accordance with the market environment and customers' needs.
Then the company got to work on the growth strategy for the company, including expansion of the business portfolio and also business areas other than delivery services.
The SG Holdings Group aims for the creation of "Prosperous society", and to maintain a system that can satisfy various demands of society and the stakeholders.
SG Holdings Group has established a 10 year management vision, including a formulation period of 1 year, and the following is the first mid-term management plan of this vision. |
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| < Outline of "SgH First Stage Plan" > |
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- The first stage of the 10 year management vision -
SG Holdings has defined the 10 year management vision as: "Each group company builds up its business base, and creates new value."
Then the company created 3 year mid-term management plans to make the management vision a reality. Based on these plans, each company drafts and executes its own business scheme.
The "SgH First Stage Plan" is the first 3 year mid-term plan of the management vision. It aims at "Construction of a business base that can continually grow" and is considered as the foundation of the whole vision.
Then the aims are to steadily increase both sales volumes and profits in each business segment during the second stage (FY2010-FY2012), and construction of an organization that can bring synergy to the group, during the 3rd stage (FY2013-FY2015.) |
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- Basic policy of "SgH First Stage Plan" -
In the "SgH First Stage Plan", the company aims to develop logistics business as the secondary core business, alongside the delivery business. Then we will strive to develop the third anf fourth core business areas.
The company has established the following items as a basic policy to establish a business base that can continue to grow and expand.
(1) Establishment of each company as a viable unit
(2) Construction of business bases to enhance the strengths of delivery business
(3) Establishment of logistics business as the 2nd core business
(4) Establishment of the 3rd and 4th core business through growth, expansion, and M&A's
(5) Expansion and promotion of personnel
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- Review the business portfolio, and aim for sales of one trillion yen. -
We are aiming for sales of one trillion yen and an operating profit of 45 billion yen in fiscal year 2009, which is the final fiscal year of the first mid-term management plan. To realize this aim, we need to develop logistics business as the 2nd core business, and grow other businesses. As a proportion of all business, we plan to increase logistics business from 8.3% to 10.2% and other businesses from 5.1% to 6.8% in fiscal year 2009. |
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- About delivery business -
It is expected that delivery business will continue to expand, due to the economic recovery and expansion of the internet-shopping market. We aim for steady growth in the delivery business field, by adapting to changes in market trends and by providing suitable services. |
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- About logistics business -
The distribution and international logistics market has developed with a tendency for enterprises to outsource some logistics operations. Furthermore, the outsourcing of comprehensive logistics called "third party logistics", or 3PL, increases yearly.
The SG Holdings Group aims at strengthen logistics business in the following areas:
(1) Development of third party logistics
(2) Enhancement of foreign operations
(3) Promotion of courier business.
Regarding third party logistics, we aim to provide total logistics solutions for full entrustment of distribution services, consistent distribution both domestically and internationally and to design the best distribution solutions. Furthermore, we can provide value-added service solutions, such as transportation and delivery and warehouse management systems.
As for overseas business, we will promote the enhancement of information management between overseas offices and Japan, the expansion of the import consolidated freight from Japan, and the enhancement of collection and delivery systems, and quality control.
For courier services, we will actively promote the sales expansion of the export courier service "sgx" from Japan; simple account settlement methods; the enhancement of group networks and partnerships with other companies. |
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- About other businesses -
SG Holdings Group has multilaterally engaged in various businesses besides the delivery and logistics business fields. We will continue to develop these businesses as 3rd and 4th core business as well. We will concentrate on those fields where the market is expected to expand in the future, such as "vehicle sales and management", "personnel development" and "facilities management". |
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