Sales Offices (shops) / Parcel Handling Agents (1,000 shops)

7,759
309.6

2,311
2000

312.5

316.3

317.6

2,775

3,003

3,279

2001

2002

2003

307.0

2004

▼
▼

▼
▼

▼
▼

Increasing the Number of Delivery
Centers

the new system, however, administrative and sorting

one-half to one-third the scale of existing locations, with aand logistics terminals while conducting a complete review

operations will be carried out separately from delivery

supervisor assigned to each business area. As fiscal 2004

of internal operations. This situation has resulted in varia-

In April 2003, Yamato Transport embarked on a plan tocenters, which will focus exclusively on customer service

marked the beginning of our transition to the new system,

tions in proficiency among staff members. Moreover, wesegment its Takkyubin service areas and service centers. The

and thus be converted into strategic business bases. To

not only did we incur costs associated with the opening of

have made reinforcements in light of the risk that service

related organizational reforms include a shift to smaller

increase efficiency, administrative and sorting operations

new delivery centers, we invested considerable amounts in IT

quality might suffer under a new system that is untested byoperating units, centered on our service departments, towill be consolidated and shifted to our top 71 logistics

and call centers necessary to consolidate administrative

the heavy shipment volumes of the summer/winter gift-sustain a high level of employee motivation. Anotherterminals around Japan. As of March 31, 2004, we had

operations. Although the build-out of our network to 5,000

giving seasons. Consequently, operating expenses, mainlycomponent of this plan is the solidification of our businesscompleted selection of the top 71 terminals and had 2,675

delivery centers will require additional investment costs,

personnel costs, have risen. However, we conducted abase by increasing the number of delivery centers. Goingdelivery centers, an increase of 363 such centers on thecentered on expenditures related to the ongoing opening ofreview of the system at the end of fiscal 2004 and as aforward, we plan to grant more autonomy within thisyear. Our plan is to have 3,300 delivery centers by the end

delivery centers, we expect overall investment to stabilize as

result reduced the number of full-time administrative

segmented organization and expand the number of deliveryof March 2005 and expand the number by approximately

factors causing sharp cost increases drop out of the picture.

supervisors. We expect to take another step toward a newcenters from 2,600 to 5,000 by fiscal 2008 (ending March

600 or more locations each year through fiscal 2008.

growth phase in fiscal 2005, when we expect administrative

Increasing Administrative Efficiency

2008). Simultaneously we are revamping the internal

8

▼
▼

▼
▼

REVITALIZING For Our Network

structures that support our delivery business to gain greater

Investment Plan

We are shifting administrative and sorting functions to ourefficiencies. Previously, each delivery center had its own

Under the new system, each organizational segment will be

top logistics terminals to consolidate indirect operations. As

administrative, sorting, delivery, and sales functions. Under

comprised of smaller delivery centers ranging in size froman interim measure, we are staffing both business centers

YAMATO TRANSPORT CO., LTD.

Annual Report 2004

efficiencies to start emerging.

YAMATO TRANSPORT CO., LTD.

Annual Report 2004

9

Sales Offices (shops) / Parcel Handling Agents (1,000 shops)

7,759
309.6

2,311
2000

312.5

316.3

317.6

2,775

3,003

3,279

2001

2002

2003

307.0

2004

▼
▼

▼
▼

▼
▼

Increasing the Number of Delivery
Centers

the new system, however, administrative and sorting

one-half to one-third the scale of existing locations, with aand logistics terminals while conducting a complete review

operations will be carried out separately from delivery

supervisor assigned to each business area. As fiscal 2004

of internal operations. This situation has resulted in varia-

In April 2003, Yamato Transport embarked on a plan tocenters, which will focus exclusively on customer service

marked the beginning of our transition to the new system,

tions in proficiency among staff members. Moreover, wesegment its Takkyubin service areas and service centers. The

and thus be converted into strategic business bases. To

not only did we incur costs associated with the opening of

have made reinforcements in light of the risk that service

related organizational reforms include a shift to smaller

increase efficiency, administrative and sorting operations

new delivery centers, we invested considerable amounts in IT

quality might suffer under a new system that is untested byoperating units, centered on our service departments, towill be consolidated and shifted to our top 71 logistics

and call centers necessary to consolidate administrative

the heavy shipment volumes of the summer/winter gift-sustain a high level of employee motivation. Anotherterminals around Japan. As of March 31, 2004, we had

operations. Although the build-out of our network to 5,000

giving seasons. Consequently, operating expenses, mainlycomponent of this plan is the solidification of our businesscompleted selection of the top 71 terminals and had 2,675

delivery centers will require additional investment costs,

personnel costs, have risen. However, we conducted abase by increasing the number of delivery centers. Goingdelivery centers, an increase of 363 such centers on thecentered on expenditures related to the ongoing opening ofreview of the system at the end of fiscal 2004 and as aforward, we plan to grant more autonomy within thisyear. Our plan is to have 3,300 delivery centers by the end

delivery centers, we expect overall investment to stabilize as

result reduced the number of full-time administrative

segmented organization and expand the number of deliveryof March 2005 and expand the number by approximately

factors causing sharp cost increases drop out of the picture.

supervisors. We expect to take another step toward a newcenters from 2,600 to 5,000 by fiscal 2008 (ending March

600 or more locations each year through fiscal 2008.

growth phase in fiscal 2005, when we expect administrative

Increasing Administrative Efficiency

2008). Simultaneously we are revamping the internal

8

▼
▼

▼
▼

REVITALIZING For Our Network

structures that support our delivery business to gain greater

Investment Plan

We are shifting administrative and sorting functions to ourefficiencies. Previously, each delivery center had its own

Under the new system, each organizational segment will be

top logistics terminals to consolidate indirect operations. As

administrative, sorting, delivery, and sales functions. Under

comprised of smaller delivery centers ranging in size froman interim measure, we are staffing both business centers

YAMATO TRANSPORT CO., LTD.

Annual Report 2004

efficiencies to start emerging.

YAMATO TRANSPORT CO., LTD.

Annual Report 20049

Kuroneko Mail Service (10 thousand parcels)
99,43660,643

2003/3

2004/3

▼
▼

▼
▼

▼
▼

▼
▼

▼
▼

REVITALIZING For Our Service
Overview of Kuroneko Mail Service
and Development of New Demand

elimination of the need to insert contents into fixed-size

Evolution of Delivery Services

By ferrying parcels on planes traveling at 700km/hour, weenvelops if address labels are affixed. As a result, handling

Historically, makers stocked inventories of manufactured

are able to offer next-day service to Hokkaido.

In March 2003, the Ministry of Public Management, Home

volume has increased dramatically.

goods based on projected demand, with retailers displaying

We have also designed our new network so that the

Affairs, Posts and Telecommunications updated its policy

The elimination of the need for a receipt stamp,

the goods until sold, forcing them to also hold inventories.

average access time from delivery center to customer is 10

regarding the treatment of certain materials as correspon-traditionally required for matter delivered by Takkyubin,

The emergence of revolutionary Takkyubin services paved

minutes. Shorter access times mean shorter drive times, anddence, ruling that direct mail distributed in unspecified

satisfied market needs for company-to-household delivery

the way for mail order sales that required neither stores nor

with this saved time, drivers can provide more value-added

numbers does not fall under the category of correspon-of direct mail. As the number of people in Japan that receive

inventories, which substantially boosted corporate

services. We believe that this, combined with the enhance-

dence, clearing the way for private firms to handle this typedirect mail is one-seventh of that in the United States andoperating efficiency.

ment of our core transport system into a high-densityof mail. Yamato seized this opportunity to renew its

one-half of that in Europe, we fully expect the domestic

Today, although next-day Takkyubin delivery is taken

Kuroneko Mail service, revising it to make customer conve-

direct mail market to expand going forward. We think thefor granted, the Yamato Group is pushing forward with thehave ordinarily transported articles themselves, and wenience the top priority. For example, in the market for the

potential market for Kuroneko Mail is very substantial, taking

next revolution in delivery services to make them eventhink the potential in this end of the market is fairly

delivery of magazines and catalogs to mailboxes, we began

into account latent corporate demand and the prospects forfaster and more convenient. As part of this effort, we insti-

substantial. As with conventional Takkyubin services, weoffering delivery for ¥80 per A4-size item, next-day delivery

acquiring existing demand. Following service modifications,tuted the industry’s first late-night flight between Hokkaido

think that infrastructure upgrades will provide previously(excluding some regions), and delivery notification. The

Kuroneko Mail handling volume showed remarkable growthand Tokyo to launch an ultra-fast Takkyubin service cover-unimagined methods of utilization and the opportunity toservice received high marks from the market for its conve-

in fiscal 2004, rising 64.0% from the previous fiscal year.

ing Tokyo and seven other prefectures in the Kanto region.

create high-growth markets.

network, will generate demand from individuals who would

nience, such as its more refined volume and price bands and

10

YAMATO TRANSPORT CO., LTD.

Annual Report 2004

YAMATO TRANSPORT CO., LTD.

Annual Report 200411

Kuroneko Mail Service (10 thousand parcels)
99,43660,643

2003/3

2004/3

▼
▼

▼
▼

▼
▼

▼
▼

▼
▼

REVITALIZING For Our Service
Overview of Kuroneko Mail Service
and Development of New Demand

elimination of the need to insert contents into fixed-size

Evolution of Delivery Services

By ferrying parcels on planes traveling at 700km/hour, weenvelops if address labels are affixed. As a result, handling

Historically, makers stocked inventories of manufactured

are able to offer next-day service to Hokkaido.

In March 2003, the Ministry of Public Management, Home

volume has increased dramatically.

goods based on projected demand, with retailers displaying

We have also designed our new network so that the

Affairs, Posts and Telecommunications updated its policy

The elimination of the need for a receipt stamp,

the goods until sold, forcing them to also hold inventories.

average access time from delivery center to customer is 10

regarding the treatment of certain materials as correspon-traditionally required for matter delivered by Takkyubin,

The emergence of revolutionary Takkyubin services paved

minutes. Shorter access times mean shorter drive times, anddence, ruling that direct mail distributed in unspecified

satisfied market needs for company-to-household delivery

the way for mail order sales that required neither stores nor

with this saved time, drivers can provide more value-added

numbers does not fall under the category of correspon-of direct mail. As the number of people in Japan that receive

inventories, which substantially boosted corporate

services. We believe that this, combined with the enhance-

dence, clearing the way for private firms to handle this typedirect mail is one-seventh of that in the United States andoperating efficiency.

ment of our core transport system into a high-densityof mail. Yamato seized this opportunity to renew its

one-half of that in Europe, we fully expect the domestic

Today, although next-day Takkyubin delivery is taken

Kuroneko Mail service, revising it to make customer conve-

direct mail market to expand going forward. We think thefor granted, the Yamato Group is pushing forward with thehave ordinarily transported articles themselves, and wenience the top priority. For example, in the market for the

potential market for Kuroneko Mail is very substantial, taking

next revolution in delivery services to make them eventhink the potential in this end of the market is fairly

delivery of magazines and catalogs to mailboxes, we began

into account latent corporate demand and the prospects forfaster and more convenient. As part of this effort, we insti-

substantial. As with conventional Takkyubin services, weoffering delivery for ¥80 per A4-size item, next-day delivery

acquiring existing demand. Following service modifications,tuted the industry’s first late-night flight between Hokkaido

think that infrastructure upgrades will provide previously(excluding some regions), and delivery notification. The

Kuroneko Mail handling volume showed remarkable growthand Tokyo to launch an ultra-fast Takkyubin service cover-unimagined methods of utilization and the opportunity toservice received high marks from the market for its conve-

in fiscal 2004, rising 64.0% from the previous fiscal year.

ing Tokyo and seven other prefectures in the Kanto region.

create high-growth markets.

network, will generate demand from individuals who would

nience, such as its more refined volume and price bands and

10

YAMATO TRANSPORT CO., LTD.

Annual Report 2004

YAMATO TRANSPORT CO., LTD.

Annual Report 2004

11

Group Business Formation

DeliveryBusiness

BIZLogistics
Business

Home
Convenience
Business

e-Business

FinancialBusiness

▼
▼

▼
▼

▼
▼

Enhancing Corporate Strength
Through Business Formation

system, requiring advanced information technologies. As aoutsourcing services), and Yamato System Development

the Yamato Group as a whole to provide its customers withresult, we have very sophisticated system development/

Co., Ltd. (IT system construction).

winning solutions.

The Yamato Group is cultivating business opportunities inoperation capabilities. By normalizing this know-how, thatNow unfettered by the existing Takkyubin business,

its five core business domains and offering innovativeis, strong technical and competitive capabilities, within thethese companies have the flexibility to develop products

domain and develop innovative services like thoseservices that combine its corporate resources with its

Group and combining them in novel ways, we aim to add

and services in new areas. For example, in the BIZ-Logistics

highlighted above. Just as the concept of transporting items

accumulated expertise. The aim is to achieve further

more value to the solutions we provide to outsidebusiness, which addresses needs in the area of company-that people often take with them on trips gave rise to ski

earnings growth by managing the overall Group in a way

customers and thereby strengthen the Company as a whole.

to-company transport, more than just supporting logistics,

Takkyubin and golf Takkyubin services, we are confident that

we provide solutions that meet customers’ needs forthe increased density of our logistics network will providethat generates even greater synergies. By using these

12

▼
▼

▼
▼

REVITALIZING For Your Satisfaction

Every Group company is working to expand its businessbusinesses as a platform to offer new services centered on

Developing Diversified Services

efficiency and low-cost operations. By outsourcing

opportunities to uncover and meet demand at theour capabilities in logistics, information, and settlement, we

The Yamato Group started realigning its corporate

inventory management of promotional merchandise tocommunity level. The Yamato Group has already launched aintend to more fully leverage our competitive advantages as

resources in April 2003 based on a spin-off format in its five

Yamato Logistics, one manufacturer reduced its inventory

delivery service for heavy and bulky consumer goods toa Group. Yamato Transport possesses a logistics infrastruc-core business domains. In the process, we clearly delineatedlevels and reduced stock-out rates. Moreover, by having

encourage the outsourcing of household work. Still, we planture that dates back 85 years and has accumulated special-

operating areas for Yamato Logistics Corporation (business-orders for promotional merchandise delivered to the nearest

to introduce even more diversified services going forward,

ized know-how in settlement and information systems

to-business transport), Yamato Global Freight Co., Ltd.

Yamato Group logistics center, the manufacturer improved

including personal shopper services, the delivery of nursingthat support rapid and accurate transport. Today, more than(overseas cargo transport), the companies that make up thethe productivity of its sales force. This case illustrates how

care-related supplies, and dry cleaning pickup and delivery.

1 billion items pass through our logistics mechanisms, fromhome convenience business (highly region-specific lifestyle

the BIZ-Logistics business was able to leverage the assets ofour parcel tracking system to our customer management

support solutions, including moving and housework

YAMATO TRANSPORT CO., LTD.

Annual Report 2004

YAMATO TRANSPORT CO., LTD.

Annual Report 200413

Group Business Formation

DeliveryBusiness

BIZLogistics
Business

Home
Convenience
Business

e-Business

FinancialBusiness

▼
▼

▼
▼

▼
▼

Enhancing Corporate Strength
Through Business Formation

system, requiring advanced information technologies. As aoutsourcing services), and Yamato System Development

the Yamato Group as a whole to provide its customers withresult, we have very sophisticated system development/

Co., Ltd. (IT system construction).

winning solutions.

The Yamato Group is cultivating business opportunities inoperation capabilities. By normalizing this know-how, thatNow unfettered by the existing Takkyubin business,

its five core business domains and offering innovativeis, strong technical and competitive capabilities, within thethese companies have the flexibility to develop products

domain and develop innovative services like thoseservices that combine its corporate resources with its

Group and combining them in novel ways, we aim to add

and services in new areas. For example, in the BIZ-Logistics

highlighted above. Just as the concept of transporting items

accumulated expertise. The aim is to achieve further

more value to the solutions we provide to outsidebusiness, which addresses needs in the area of company-that people often take with them on trips gave rise to ski

earnings growth by managing the overall Group in a way

customers and thereby strengthen the Company as a whole.

to-company transport, more than just supporting logistics,

Takkyubin and golf Takkyubin services, we are confident that

we provide solutions that meet customers’ needs forthe increased density of our logistics network will providethat generates even greater synergies. By using these

12

▼
▼

▼
▼

REVITALIZING For Your Satisfaction

Every Group company is working to expand its businessbusinesses as a platform to offer new services centered on

Developing Diversified Services

efficiency and low-cost operations. By outsourcing

opportunities to uncover and meet demand at theour capabilities in logistics, information, and settlement, we

The Yamato Group started realigning its corporate

inventory management of promotional merchandise tocommunity level. The Yamato Group has already launched aintend to more fully leverage our competitive advantages as

resources in April 2003 based on a spin-off format in its five

Yamato Logistics, one manufacturer reduced its inventory

delivery service for heavy and bulky consumer goods toa Group. Yamato Transport possesses a logistics infrastruc-core business domains. In the process, we clearly delineatedlevels and reduced stock-out rates. Moreover, by having

encourage the outsourcing of household work. Still, we planture that dates back 85 years and has accumulated special-

operating areas for Yamato Logistics Corporation (business-orders for promotional merchandise delivered to the nearest

to introduce even more diversified services going forward,

ized know-how in settlement and information systems

to-business transport), Yamato Global Freight Co., Ltd.

Yamato Group logistics center, the manufacturer improved

including personal shopper services, the delivery of nursingthat support rapid and accurate transport. Today, more than(overseas cargo transport), the companies that make up thethe productivity of its sales force. This case illustrates how

care-related supplies, and dry cleaning pickup and delivery.

1 billion items pass through our logistics mechanisms, fromhome convenience business (highly region-specific lifestyle

the BIZ-Logistics business was able to leverage the assets ofour parcel tracking system to our customer management

support solutions, including moving and housework

YAMATO TRANSPORT CO., LTD.

Annual Report 2004

YAMATO TRANSPORT CO., LTD.

Annual Report 2004

13