Part 2

DESTINATION OF ONE YAMATODESTINATION OF ONE YAMATO

Part 2Message fromthe President
Reinforcement of the TA-Q-BIN Network
As we have visualized the management resources of thelarge-lot clients Accordingly, we are focusing on reviewing

entire Group, issues that need to be addressed havethe purpose of facilities, particularly in urban areas with abecome clear. One of these issues is the structural reform ofhigh density of them, while consolidating and enlarging theirnetwork operations. We are engaging in an enhancement ofsize in line with changes to the flow and volume of pack-the quality and efficiency of the entire network to respondages. While there is currently a total of approximately 3,300

to various changes in the market environment, such as thesales offices, I think eventually having approximately 1,800

expansion of online consumption and the development ofwould be appropriate.

small-lot, high-frequency logistics between companies.

Furthermore, we are advancing revisions to the pickup

As part of these reforms, we first responded to theand delivery operations available at each facility, in conjunc-sudden expansion of EC demand during the COVID-19 pan-tion with the consolidation and enlargement of their size.

demic by creating an EC logistics network in collaboration

We aim to standardize the workload for each driver bywith partner companies. Over the next four years, we will

designing pickup and delivery operations through data utili-

focus on reinforcing the existing TA-Q-BIN network. Now,

zation, not just entrusting the response to the fluctuating

three years away from celebrating the 50th anniversary ofworkload to the judgment and ingenuity of frontline staff.

TA-Q-BIN’s launch, the time has come to revise the way

It is important to optimize facility allocation and opera-bases that make up the network are organized, in response

tions in line with regional and customer needs rather thanto changing customer needs.

aimlessly reducing the number of facilities. Naturally, it isSpecifically, we will consolidate and enlarge the size ofYutaka Nagao
Representative Director,President and Executive Officer

Business Reform Over the Next Four Years—Expanding Value Provision to the “End to End” of Supply Chains

Structural Reforms Amid a Sense of Impending Crisissocial infrastructure. To maintain a national network inlaunched as a service for individual customers and we allo-

which all employees can respond to customers in allcated sales offices in smaller areas to collect small-lot deliv-

regions, we will enhance the safety, quality, and ease oferies from a wide variety of customers. As a result, our sales

operation for employees and partners even more thanoffices increased to approximately 4,000 at their peak. Now,before. At the same time, we will increase the productivity

however, there has been a change in the type of packagesof the entire network, optimize processes for transportation

being shipped with 90% of deliveries being made for corpo-

between facilities and sorting operations at each sales

rate clients, and approximately half of those deliveries foroffice, and further enhance the performance of employees.

Establishment and Expansion of Dedicated Networks
In addition to reinforcing the existing TA-Q-BIN network, webehavior due to the recent COVID-19 pandemic, there has

are promoting the creation of dedicated networks. While

been a significant advancement of the shift to EC for food

one of these is an EC logistics network, we also estab-distribution. Under such circumstances, we will maintainlished, in June 2023, a low temperature transportation andand enhance quality while expanding transportation anddelivery center and began operation of a network dedi-delivery capacity to further meet demand by aggregatingcated to temperature-controlled operations. To date, therefrigerated and frozen delivery under a new, dedicated net-

Yamato Group has contributed to the culture of consumers

work in urban areas, where demand is particularly concen-

ordering fresh produce directly from other regions and thetrated. Refrigerated transportation and delivery is a growthdevelopment of related businesses by building a transporta-domain that is not limited to food. Demand is expected totion and delivery network that handles three temperature

increase for pharmaceuticals and we plan to expand thisranges (room temperature, refrigerated, and frozen).

dedicated network as necessary.

In 2019, I was appointed the President of the Yamato Groupas “effective utilization of management resources.” No

during a time of impending crisis. An awareness of twomatter how many excellent management resources you

major issues formed the background of this. The first issue

gather, you cannot achieve the performance you are capa-

being that our management structure did not provide ser-ble of if they are not optimally allocated. Accordingly, undervices drawn from a customer standpoint in the face of

YAMATO NEXT100, our grand design for management overchanges to society and customers. Up to 2019, the Yamato

the medium to long term announced in 2020, and Medium-

Group was organized by function—such as a company thatTerm Management Plan “One YAMATO 2023,” launched inprovided TA-Q-BIN services, a company that provided logis-April 2021, we have been engaging in Group managementtics services for corporate clients, and a company thatstructure reform. In other words, how to change the form ofdeveloped IT systems—and was partially optimized. The

management to fully utilize management resources. By inte-

The Yamato Group aims to achieve sustainable businessfurther value to customers. Since launching One YAMATO

second issue I was aware of was that many of the managers

grating nine existing operating companies into one entity,

growth through expanding value provision to the “End to2023, we have created several examples of solutions, such

responsible for the management of each operating com-Yamato Transport, creating “One YAMATO structure”, andEnd” of supply chains. The Group management structure

as initiatives to optimize the entire supply chain of our cor-pany did not see this existing management structure as acentralizing and reallocating Group management resources,reform that we have promoted to date and the structural

porate clients, which are steadily yielding results.

I believe we have been able to shift to a structure thatreform of network operations we are currently advancing

directly addresses customer needs.

are to help us evolve into a business that can provide

problem and strongly felt that there was no sense of crisis.
I believe that “corporate management” can be rephrased

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essential we do not damage the national network as asmall, multi-store sales offices. TA-Q-BIN was originally

YAMATO HOLDINGS CO., LTD.
Integrated Report 2023

Meanwhile, against a backdrop of changing consumption

Expanding Value Provision to the “End to End” of Supply ChainsAdditionally, we are striving to expand the value provided
in the cross-border EC domain. To date, the conventional

YAMATO HOLDINGS CO., LTD.
統合レポート 2023

13

Part 2

DESTINATION OF ONE YAMATODESTINATION OF ONE YAMATO

Part 2Message from the President

method for individual clients to obtain products purchased

realized this under the existing partially optimized structurefrom overseas was via logistics by international and domes-

and this achievement is one result of the Group manage-

tic operators. In recent years, however, individual clientsment structure reform.

have been able to directly purchase and receive products

Meanwhile, while we are still at the development stage

from overseas sellers. The Yamato Group has been focusing

for fields such as third-party logistics and international for-on this domain for many years and has been proposing thewarding, I believe there is significant room for growth in lightuse of Yamato’s logistics network to overseas sellers. Theof the Yamato Group’s management resources and poten-

number of parcels we handle has expanded to a volume

tial. Over the next four years, we aim to further reinforce thebeyond our initial expectations. This was achieved throughnetworks, operations, and corporate sales functions, includ-

collaboration between domestic and overseas units of theing collaboration with other companies, to expand theYamato Group, who worked together to establish opera-

scale of transactions.

tions and make proposals to customers. We could not have

Visualization of GHG Emissions as a New Differentiating Factor

at each terminal, where definitions of duties remained

culture that enables employees to accomplish their tasks

vague. Furthermore, while we have further clarified theindependently, enhance their performance, and feel theirduties of sales drivers, there is an increasing necessity towork is rewarding. We will achieve this by implementing a

subdivide duties to meet diversifying customer needs, suchcycle of further clarifying the definitions of duties for all

as increasing the shipping ratio for large-lot clients. We areemployees, establishing appropriate evaluation criteria foralso adding new duties based on our management strategy,

measuring performance according to these definitions, andsuch as in the digital and corporate business domains. Inholding meetings between evaluators and each employee

light of such circumstances, we will cultivate a corporate

to give detailed feedback.

We are currently developing tools for visualization of GHG

on this standard. We plan to complete development thisemissions. These tools are expected to become a newfall. For the Yamato Group, who have adopted the target ofstrength aimed at expanding the value provided in corpo-achieving virtually zero GHG emissions by 2050,* visualizing

rate client supply chains. While to date there has been noGHG emissions is an opportunity to further contribute toglobal formula for calculating GHG emissions in logistics,

the sustainability of society and the environment. As interest

the Yamato Group has signed a basic agreement for collab-in and standards for global GHG emissions increase, we

oration in the environmental domain with the major

expect that contributing to the optimization of distribution

European home delivery company, DPDgroup. We haveand inventory while reducing these emissions through visu-

been participating in the creation of ISO 14083:2023, analization of GHG emissions in the supply chains of corpo-international standard related to transportation-based GHG

rate clients will become a major differentiating factor in

From April 2024, a cap on overtime work will be applied tocharter flights following a shift to small-lot, high-frequency

emission calculation and reporting methods, and promoting

expanding the corporate business domain.

automobile driving operations. The entire logistics industry

delivery, loading operations outside of contracts, and longthe development of a tool for visualizing emissions based*Scope 1 and Scope 2

is facing the serious issue of workstyle reforms for drivers

waiting times for cargo in logistics between companies.

and securing transportation capability. We have alreadyAccordingly, we will make proposals for resolving such

implemented workstyle reforms for Yamato Group employ-issues for corporate clients. For example, we can enable

ees and employee working hours have reached an appropri-

more efficient methods of delivery by combining packages

ate level. However, we are now promoting cooperation withfrom numerous clients through a package transportationeach partner company, such as reviewing the purpose ofservice in pallet units, even if the cargo area of a chartertransportation and introducing a standardized contract

flight is empty on the return journey. The Yamato Group has	Planning and Development of Human Resource Measures in Conjunction
with Our Management Strategy
A major driving force in promoting a series of reforms andFor the Yamato Group, our most important management

measures was the existence of professional humanresource is people. We plan and develop human resource

resources that have joined the Yamato Group over the pastmeasures under the recognition that our HR strategy is sofew years. Now, over 20% of Yamato Transport executive

important, it can be called a management strategy.

officers have outside knowledge and we have ensured weSpecifically, we are promoting the clarification of defini-can set out new challenges and measures by gathering thetions of duties in line with our management strategy andappropriate people from within the Company to work

new business structure. For example, this clarification has

under them.

been implemented in some cases in the sorting operations

Response to the 2024 Problem

system based on the transport distance and time period, tothe knowledge to standardize transportation, as shown byadvance the workstyle reforms in our partner businesses

TA-Q-BIN. We are pursuing sustainable logistics by stan-that support trunk-route transportation.

dardizing transportation in logistics between companies

Furthermore, I feel it is necessary to improve inefficientbusiness practices, which has previously been an issue,and creating more efficient delivery methods that also contribute to even better workstyles for drivers.

such as decreasing efficiency of loading operations forAchievement of Sustainable Growth by Building the Trust of Customers
I believe that the most important factor for the sustainable

reallocation of management resources will be tested in

growth of a company is building up trust with customers.

order to achieve sustainable growth. We aim to be a com-The growth the Yamato Group has achieved to date is apany that is trusted by all our customers and stakeholders

result of building up trust through provision of our TA-Q-BIN

by fully utilizing Group management resources to pursue

service. However, there have been changes to the businesseven better services that fit the times, rather than being

environment and customer needs. Simply maintaining thecontent with our past experience of success.

same services we have provided to date will not result ingrowth in the future.
I view the year ending March 31, 2024, and the three
years of the next medium-term management plan as fourvital years in which the true value of reforms based on the14

YAMATO HOLDINGS CO., LTD.
Integrated Report 2023

October 2023

YAMATO HOLDINGS CO., LTD.
Integrated Report 2023

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