Press Release

Background to function development

• Overseas expansion by customers has heretofore centered on setting up manufacturing sites, but the emphasis in recent years has shifted to sales activities targeting the markets of host countries, giving rise to the need to optimize global supply chains from manufacturing to sales.
• As customers have expanded and deepened their sales activities overseas, there has been a quantitative expansion and restructuring of sales contacts being pursued by customers, and adding/restructuring logistics locations to address these changes has consequently become an issue.
• Having conducted a proof of concept (POC) based on actual cases from several dozen companies, Nippon Express has been able to confirm that logistics costs can be reduced in many cases by about 20% from present levels, and it will be providing proposals for improving logistics by employing this methodology.

Function features

• This function will enable Nippon Express to utilize customers' "big data" (receiving/shipping data at existing logistics locations, orders placed or received with/from business partners, etc.) in conducting scientific analyses from a logistics perspective in order to assess the suitability of locations and develop plans for additions/restructuring.
• These analyses will cover the entire world, meaning that the scope of locations to be analyzed will extend beyond domestic logistics within any particular country to span multiple countries in accordance with customers' future sales strategies.
• Customers may also request analyses based on specific objectives, such as cutting logistics costs, reducing delivery lead time, revamping the number of locations, etc.

Utilizing this newly developed function, Nippon Express will endeavor to respond to the various supply chain issues confronting customers as it further expands its own global logistics business.