Model Businesses in "Green" Logistics Named

Japan, due to its small size and yet high population density, is intensely focused on facilitating environmentally friendly business practices in its many industries, including logistics. As a result, the Ministry of Economy, Trade and Industry (METI) is active in promoting those firms that take leadership positions in what is commonly called "green logistics" here in Japan. The title of this program is called "Green Logistics Partnership."

As reported recently in the August 7 issue of Logistics Japan, METI recently named 10 logistics companies as model businesses in terms of green logistics and awarded them with supplemental funds to support further green initiatives. The 10 firms/partnerships are listed below (partially linked):

1. Ryoshoku Ltd.
2. Collabo-Delivery
3. Fujitsu/Excel Japan (part of DHL Worldwide)
4. Sumikin Bussan and Hankyu Travel
5. Japan Pallet Rental
6. Confectionary Loginet
7. Diakeito Co., Ltd. and Kyonan Warehousing
8. Fuji Film Logistics and Nittsu
9. Nihon Butsuryu and Nihon Kamotsu
10. Yamato Transport

Firm Highlights:

Besides its efforts in condensing logistics activities into a full-line, chilled logistics center catering to processed foods, confectionaries, and alcoholic goods, Ryoshoku has built a conveyance system of transport boxes utilizing RFID. Also, by sharing standards, the center aims to improve capacity utilization and targets logistics efficiency via mutual transport that comes with such a logistics integration center. Indirect benefits include a reduction in CO2 emissions due to better capacity utilization in transportation.

Collabo-Delivery stands out by focusing on the efficiency of internal logistics for large buildings, implementing shared collection and distribution via an established stock point. While reducing the number of delivery trucks inside buildings, delivery in basement level parking structures is improved and sitting times shortened.

Fujitsu/Excel Japan (DHL), in centralizing logistics information extending from parts supply shipping to product distribution, has built a "Focused Dispatch Control Support System" designed for supply chain optimization. Based on the application of the new system, the environmental burden across the supply chain is lowered and CO2 reduction in progress.

Sumikin Bussan/Hankyu Travel are focusted on the efficiency of apparel logistics between Japan and China. Both have established a logistics foothold in China with work separated by store and bring product into ports close to areas of domestic Japan where consumption is high. Via an effort to optimize logistics across the entire supply chain, the firms are able to bring about logistics efficiencies and reductions in CO2 emissions.

The first phase of supplemental funding will total approximately $4.3m based on the current exchange rate of 117 yen/$.