Logistics & Consulting J&K Logistics Co., Ltd.

Transcription

1 Logistics & Consulting Logistics & Consulting 2005 Co., Ltd.

2 Contents What is J&K Services which J&K can offer 2.1 Consultation on Strategic Logistics 2.2 Third Party Logistics (3PL) 2.3 Consultations and undertaking of overseas logistics 2.4 Advisory services to Logistic Funds Executive members Business Model Patents Corporate date 2

3 1. Mission 1. What is J&K? For maximization of corporate value of our clients, J&K will provide the best strategic solutions in their logistics strategies. New business environment in logistics; More focusing on shareholders equity value Globalization of business operations Advanced IT Advanced financial technology Emerging new environmental issues Management measurements such as ROA, ROE, FCF, EVA Global procurements, manufacturing, fabrication and Global distribution Ever developing New information technology Separation of ownership and operations (Logistic Fund) Environment Accounting, etc. Inventory management Vendor Managed Inventory (VMI) Reduction of ordering cycle and CF improvement Outsourcing of logistics functions Spin-off of the logistic functions New grand-designing of global logistic system From Control tools to Management tools Prime driver in competitive logistics Needs for New Logistics Strategies Emerging logistics fund PFI Regulations on CO2,Nox etc. Speed limitor Modal shifts 3

4 2. Services which J&K can offer 1. Strategic Consultation in Logistics 2. Third Party Logistics (3PL) Strategic Level Administrative Level Corp. strategies, Coordination w. related parties J&K Center location, Inventory mgmt Delivery system, IT Approach Outsourcing in the past 3PL Now Corporation Logistics dept. Warehouse companies Transportation companies Operational Level Order processing, Storage, assort, delivery, etc. Corp. 3PL Warehouse companies Transportation companies 3. Consultations and undertaking of overseas logistics Propose and undertake the best fit logistic Services for our client s overseas operations 4. Advisory services to Logistic Funds AM PM Logistics Fund (SPC) Non recourse loan Equity Sourcing Location selection Feasibility study for various logistic funds Propose tenant strategies, etc. 4

5 2.1 Consultations on Strategic Logistics Head Office Order Order Logistic functions, subject to improvement Overseas Factories Domestic Factories Bussan Store, assort Procurements Distribution Center(A) Order Processing In Processing Out Inventory Distribution Center (B) Delivery Transportation among D/Cs Transportation Companies Home deliveries Delivery Retail shops Individuals Consultation coverage of J&K Best Best domestic domestic procurement procurement Best Best overseas overseas procurement procurement Store and assortment at Bussan. etc Store and assortment at Bussan. etc Most Most efficient efficient D/C D/C Operations Operations Locations and Operations) Locations and Operations) Most Most efficient efficient order order handling handling Inventory Inventory management management and and transportation transportation among among D/C D/C Most Most efficient efficient transportation transportation methods methods and and route route Rate Rate of of Operations Operations and and cost cost control control Customers Customers relationship relationship Improvements Improvements of of IT, IT, Introduction Introduction of of management management measurements measurements in in logistics logistics 5

6 2.1 Consultations on Strategic Logistics (Effects) Reduction of Inventory Reduction of Logistic facilities Improvement in Logistics and increased enterprise value (Illustration) Inventory Logi.Facilities P/L B/S Debt Equity Reduction of Debt Expense Cost for logistics Increase the profits by cost Cost for logistics facilities reduction Interest expense etc. Inventory Payable Rcvbl GAP analysis The improvement of logistics contributes not only for increase of the profits but for capital efficiency (capital turnover) to increase of enterprise value. Total lead time shortening from an order received to delivery improves not only the improvement of CF but customer satisfaction. CF statement improve the cash flow in connection with inventory and logistic facilities and its maintenance cost Improve Management measurement ROA ROE improvement FCF increase EVA increase MVA increase Increase Free CF 6

7 2.2 Third Party Logistics (3PL) J&K does not only undertake a part of physical distribution functions, but enters into partnership agreement as a strategic partner of comprehensive logistics. Carries out the maximum practical use of the consulting function, and propose and offer an improvement of a strategic and comprehensive logistics process. The present logistics cost is grasped, an improvable function and an improvable method are clarified, and consulting cost is fixed. When an improvement is confirmed by the index fixed beforehand, a benefit sharing structure which distributes the result by the company and J&K can also be proposed. The improvement of logistics also brings about increase of the customer (external and internal of the company) satisfaction through the improvement of business and the operating process itself. Besides logistics (transportation, storage, and related work) management capability, our company also has an IT and simulation capability. Since we are non-asset type 3PL, it is possible, it is possible to propose a continuous improvement regardless the existing warehouses and other related facilities. Out sourcing in the past Corporation Warehouse companies Logistics dept Third party logistics Transportation companies Warehouse companies Corporation Improv ement IT 3PL Operations Efficiency Transportation Warehouse Corpration 3PL Transportation companies 7

8 2.3 Consultations and undertake of overseas logistics J&K has proposed the Bussan port as an idea of the improvement in connection with an international physical distribution. By distribution of oversea production, domestic physical distribution costs are relatively getting expensive. For this reason, in order to shorten domestic delivery distance, the unloading to the local ports of Japan seaside which went via the South Korean Bussan port is increasing. From now on the delivery cargo using the optimal port in the Sea of Japan will increases. J&K proposes such a physical distribution route, minimizing the expense. 8

9 2.4 Advisory services to Logistic Funds In recent years, many corporations are moving for Selections and Concentration on core business and liquidating or off-balancing the real estate assets, sometimes securitization are performed. Now this new trend is also spreading to the logistic real estate assets (a warehouse, physical distribution centers, etc.) of corporations. Reflecting such movement, so-called logistics fund business is emerging now. Foreign REITs, investment banks, the domestic major trading companies are becoming the major players. Office, residential or commercial real estate funds have been structured in cooperation by the professionals of finance and real estate industries. For the structuring of the logistic fund, we strongly believe the participation of logistics professionals is indispensable. Since J&K has been providing various logistics consultations to our clients in the past and accumulated valuable know-how, real estate information and established various networks among logistics companies, we can offer very unique and peerless services. 9

10 Outline of advisory services Based on our experiences and knowledges in logistics in Japan, while we believe we can provide various services depending on our clients needs, the followings are some of past consultation service examples for your reference. (Consultation examples) 1 Location study from a macro viewpoint in logistics 2 Location study form micro viewpoint in logistics 3 Tenant strategies in consideration of above 4 Possible rent level (rate) 5 Advices to utilize the facilities in the most efficient manner 6 Factors analysis, influencing the rent level in the middle term 7 Hearing survey 2.4 Advisory services to Logistic Funds (A proposal for Macquarie (Japan) Limited) 10

11 Outline of advisory services examples (Cont d) Location study from a macro viewpoint in logistics From a viewpoint of an international physical distribution, the trend of the import cargo (re-import, procurement physical distribution) and export cargo, relation with neighboring ports, marine cargo, and an air cargo is analyzed. From a viewpoint of a domestic physical distribution, analysis from a domestic procurement physical distribution (broader-based procurement, middle and short range area) and a delivery-of-goods physical distribution (big city JIT delivery, broader-based delivery, transportation of route facilities and home-delivery) is performed. From a viewpoint of physical distribution processing, business conditions (business conditions of 3PL companies etc.) are analyzed. Truck-on-a-regular-delivery-route transportation, the JR Freight transportation, carriage of goods by air, etc. are analyzed from a viewpoint of a link with domestic transportation mode. Location study form micro viewpoint in logistics Performance and operational study study of neighboring physical distribution center. Occupancy, types of tenants rent level and others The trend of physical distribution centers. New opening information, transfer information, reconstruction / functional change information, etc. The handling items classified by physical distribution, and rent power Rent according to handling items classified by area 11

12 Outline of advisory services examples (Cont d) 2.3 Tenant strategies in consideration of macro and micro analysis Analysis of the tenant needs in the area concerned (according to business condition) From a viewpoint of storage and physical distribution processing From a viewpoint of institution use Delivery (a wide area and short range) Investigation of transfer needs 2.4 Rent presumption Presumption of rent level Fee level for common service Any addition, incidental expenses 2.5 Advices to utilize the facilities in most efficient manner Tenant strategies Advices on tenant combination Simulation of tenant combination effects Requirements analysis for the facilities from the tenant Basic functionalities Additional functionalities 12

13 Outline of advisory services examples (Cont d) 2.6 Factor analysis influencing the rent level in the middle term 2.7 Hearing survey (A proposal for Macquarie (Japan) Limited) In addition to the above, we propose the following services to you. a. Product Planning b. Sourcing of the deal (assets) c. Joint Asset Management, Property Management d. Others 13

14 3. Introduction of a management member Representative director president Mizuho Hara Joined Fukuyama Transporting CO., LTD., Fukuoka branch deputy manager, The system division managers etc. are successively held. The redevelopment project of a basic information system is promoted. While working at Fukuyama, he engaged in many large scale projects, such as Vehicles statistics management system development, Mitsubishi heavy industries distribution center project, Electronic product distribution centers development project. In 1998, he started a logistics consulting company, Co., Ltd. Also developed a Joint physical distribution enterprise company with Sumitomo and SK marine business, engaged in various logistics improvement projects for Korea SK-TELECOM, CJ(Functional materials, Cosmetics manufacturer, Samsung Elecrtonics and other leading Korean companies. In Japan, contracted for a management improvement of a light cargo network, a management improvement of a wholesale dealer, etc. As a public project, contracted for a new physical distribution network establishment project, the physical distribution related investigation in the Hiroshima bloc economy area, a ground functional designing of the Korean Bussan Gwangyang ports, etc. In 2003, he established the J&K Ltd. in cooperation of internal and external leading transportation companies. In February, 2004, inaugurated as a representative director. 14

15 4. About a business model patent The patent about a physical distribution center "The cargo distribution center on the highway Application number Structure to which the freight terminal set up on the highway, and trunk line vehicles hand over delivery cargo on delivery vehicles in the terminal. A long-distance track can perform delivery to delivery vehicles, without getting down from a highway. The loading efficiency of the delivery vehicles inside the city can go up, and the run number of delivery vehicles can be reduced. Highway road authority gets an income by fee collection to the cargo switched in a terminal. "Load transportation adjustment system Application number The system which can trace and manage the destination of the vehicles which carry out long-distance operation on the highway, load freight, the point that can be reached by the mobile communications system, and carries out additional loading of the cargo. The loading efficiency of trunk line vehicles improves. Since a transportation consignor can choose and commission to the track which agrees at the consignment time and delivery time to wish, he can cut down time and cost. The loading efficiency of long-distance operation vehicles improves. A system operator can receive information offers, a conclusion commission, etc. 15

16 5. J&K company data Company name Capital Establishment Officer Location Contents of operating Tie-up company Affiliation organization Ltd. 10 million yen February,1998 Representative director president Mizuho Hara Hachobori Kagayaki Bldg 4F, Hachobori, Chuo-ku, Tokyo Japan Tel Fax URL:» Consultation on Strategic Logistics» Third Party Logistics 3PL Business» Consultations and undertaking of overseas logistics» Advisory services to logistics funds MFL Co., Ltd, Fukuoka Transportation Co, Ltd., Kochi Tsu-un Co., Ltd., Nohhi Warehouse & Forwarding Co., Ltd. Shizunai Logos Co., Ltd., Kukbo Express Co., Ltd., Use Distribution System Co., Ltd. Japan Association of Corporate Executives Kanto logistics support conference Physical distribution service development study group constituted from i-logistics CORP., ITOCHU,, JR Freight, CRC Solutions, DAIWA House, TAISEI Corporation, DAIFUKU, NIPPONKOA Insurance, Use Distribution System) 16