Value Creation Story of the SG Holdings Group
Value Creation Story for the "SGH Vision 2030"
The SG Holdings Group has perpetuated its philosophy from the time of its founding, and has always aimed to provide logistics optimized for the needs of customers while flexibly responding to changes in the environment.
We will continue to strengthen our logistics functions and provide solutions that make customers more competitive, in addition to working toward the enhancement of corporate value and the realization of a sustainable society through engagement with our stakeholders.
Value Creation Story Details
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This section outlines the seven management resources of the Group.
Intellectual Capital
Insight, know-how and IT infrastructure forming the source for proposal of optimal solutions
Intellectual capital such as insight and know-how accumulated within the Group as we have met the diverse requirements of customers since the Group was founded, and IT infrastructure supporting the promotion of DX are significant management resources that are essential for the Group’s growth, leading to the resolution of fundamental issues faced in logistics. GOAL plays a central role in this, serving to provide advanced logistics solutions by connecting the Group’s management resources.
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Total logistics solutions
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Full digitalization of
invoice information
(Completed in April 2022) -
Common Group IT infrastructure
(SGH platform) -
Number of GOAL
members:500
Enhancement measures
- Enhancement of logistics solutions by accumulating knowledge and know-how
- Evolution of logistics solutions through DX
Human Capital
Source of creation of added value
“Our employees” are one of the Group’s most important management resources. We propose optimal solutions by understanding needs and discovering wants of customers through day-to-day communication.The Group’s strength is GOAL playing a central role to resolve customers’ logistics issues based on information gathered by approximately 20,000 SALES DRIVERs and sales staff of each business. Our ability to understand logistics issues and solution proposal capabilities is the source of creating added value. Furthermore, we will strive to create workplaces in which diverse personnel are able to work without prejudice based on gender, age, disability or nationality to realize the enhancement of corporate value.
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Consolidated number of employees
104,595 -
Number of SALES DRIVERs
Approx. 20,000
Enhancement measures
- Development of solution personnel
- Core business promotion personnel
- Improvement of the workplace environment
Partner Companies
Partners supporting business growth
The Group actively coordinates with partner companies in line-haul transportation and the last mile. This enables dynamic responses according to the number of express delivery packages and the creation of a business model in which profitability is not affected by changes in the number of packages. Strategic alliances have been built not only with fellow transportation companies, but also by partnering with companies in different businesses such as IT companies. We believe it is necessary to rely on our own strength as well as build business partnerships with partners in a wide range of industries to meet the diverse needs of customers and also achieve sustained growth.
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Line-haul transportation partner companies
Approx. 310 -
Delivery supporter companies
Approx. 3,740 -
TMS partner companies
Approx. 2,270
Enhancement measures
- Strengthening of coordination with partner companies
- Creation of new value through collaboration
Financial Capital
Sound financial structure
The Group will strive to balance investment aimed at future growth, stable and continuous returns to shareholders and internal reserves for the future and further enhance medium- to long-term corporate value by increasing earning capacity and stabilizing our financial base.
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Operating income margin
5.9% -
Equity ratio
55.8% -
ROE
10.0%
Enhancement measures
- Cash allocation focused on balance
- Achieving stable returns
Logistics Facilities and Mobility
Nationwide network
The Group is a corporate group with locations throughout Japan and roughly 45 countries and regions worldwide. We constantly review our network and equipment to increase transportation efficiency and improve productivity. We also have a wide range of logistics infrastructure, including vehicles and warehouses, as well as warehouses with three temperature ranges capable of handling pharmaceuticals. This enables us to meet the various logistics needs of our customers. We also contribute to the realization of a sustainable society by introducing environmentally friendly technologies and equipment and reducing CO2 emissions.
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Number of locations(number of countries we operate in)
1,604location
(45 countries) -
Number of vehicles
29,557 -
Total warehouse floor area
Approx. 161million sqm
Enhancement measures
- Enhancement of Logistics Infrastructure
- Optimization of transportation network
- Combining various forms of mobility
Customer
Customer base spanning all industries and areas
The Group provides services to over one million companies, meeting the logistics needs of diverse industries and domains. Having a strong customer base that is not dependent on any particular customer contributes to the stability of the Group’s business, and information on issues and needs from various industries and fields is the starting point for development of the Group’s solutions. We will further strengthen our customer base by continuing to develop and provide products and services that respond to changes in society and our customers’ businesses.
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Customer base
1million companies
Enhancement measures
- Expansion of our customer base through the enhancement of logistics solutions
Environmental capital
Promotion of environmental responses leading the industry
Promotion of decarbonization is recognized as a priority issue for a corporate group handling social infrastructure in the form of logistics. The Group has proceeded with initiatives to reduce environmental impact such as leading the industry in switching to environmentally friendly vehicles since the 1990s. We also implement preservation activities in the forests we own.
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Number of EVs
127 -
Forest area
863m2 -
Renewable energy ratio
56.4%
Enhancement measures
- Achieving decarbonization by reducing our CO2 emissions
- Contributing to the reduction of customers’ Scope 3 CO2 emissions
- Forest conservation and carbon credit creation
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*Figures cover domestic Group companies
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We have organized the values that the Group creates through business activities according to each stakeholder.
Customers
Contribution to expansion of customers’ business through the resolution of logistics issues - Provision of comprehensive logistics solutions not limited to “transportation”
- Resolution of logistics issues according to customers’ needs
- Expansion of customers’ business
Contribution to the reduction of Scope 3 CO2 - Promotion of decarbonization of the Company’s service
- Proposal of solutions leading to decarbonization
Partner Companies
Contribution to business growth of partner companies through entrustment of highly productive operations - Improvement of productivity and working environment
- Building good relationships with partner companies
- Business growth support
Creation of new value through collaboration - Creation of new logistics solutions with start-ups
- Research and development of the latest technology with outside companies and local governments
Employees
Friendly and fulfilling workplaces enabling diverse personnel to work - Promotion of Diversity, Equity and Inclusion
- Continuous improvement of work-life balance
Provision of growth opportunities leading to the formation of careers of each individual - Development of personnel
- Fostering corporate culture
Society
Stable provision of logistics services - Handling social infrastructure essential for people’s lives
- Provision of express package delivery services matching the times
- Responding to emergencies such as disasters and epidemics
- Fulfilling the role as a designated public corporation and providing total support including transportation, storage and management of relief supplies
Contribution to local communities as a lifeline Shareholders and Investors
Stable dividends through sustained growth
Enhancement of corporate value through engagement -
The Group has reinterpreted the "SGH Vision 2030" "Grow the new Story. New logistics, nurturing a new society together." and defined our vision in the simpler terms of "continuing to be an indispensable presence (= infrastructure) for our customers and society." To realize this vision, in addition to the existing operating revenue target of 2.2 trillion yen, we have established new, more specific management targets, including profit indicators and breakdown by business segment. Furthermore, we have introduced targets for capital efficiency such as ROE and ROIC to more clearly show the path for growth toward 2030.
Grow the new Story.
New logistics, nurturing a new society together.
In order to respond to rapidly changing socioeconomic environment, the Group established the long-term vision of “Grow the New Story. New logistics, nurturing a new society together” aimed at 2030. Under the long-term vision, through not only utilizing the Company’s own strength, but also combining with the strengths of diverse partners not constrained by industry, we will jointly develop a new growth story enabling the creation of value linked to the future and the resolution of social issues.