Sep. 20, 2024
Non-food and food bulk logistics to begin operations on September 20, 2024 (Friday)
PALTAC and Yakuodo Co., Ltd. have started operation of integrated non-food and food logistics (receiving, storage, shipping, and delivery to stores at the distribution center) on Friday, September 20, 2024, with the aim of further optimizing and streamlining the entire supply chain. PALTAC's responsibility for food distribution is a challenge to a new business area.
The supply chain to which PALTAC and YAKUODO belong faces a variety of challenges, including economic issues such as the 2024 problem and soaring delivery and labor costs and energy costs triggered by a shortage of drivers, as well as social issues such as reforms in work styles, white goods distribution, and reduction of carbon emissions. PALTAC and other companies have been working together to address these issues. PALTAC will be taking over the logistics of YAKUDO's non-food and food divisions in the South Tohoku area, which were previously handled separately by PALTAC and other companies, in order to solve these issues simultaneously.
Based on the affinity and productivity in "management, shipment, and delivery" with the non-food division, PALTAC will start with room temperature foods such as beverages and confectioneries, which do not require temperature control. By delivering these products in batches, the number of manpower and trucks required for delivery and carbon dioxide emissions will be reduced by 20-30%, leading to reduced delivery costs and promotion of white goods distribution. In addition, we believe that the introduction of category delivery for food products, which is currently done for non-food products, will reduce display work and lead to a change in work style.
PALTAC expanded its existing distribution center, RDC Miyagi, to accommodate the increase in volume, increasing its annual shipping capacity from 35 billion yen to 55 billion yen. By increasing the center's capacity, PALTAC will be able to utilize it as a base for bulk distribution, and at the same time, reduce the amount of products transferred to other centers for existing distribution, thereby further improving delivery efficiency.
PALTAC and YAKUDO share the belief that optimizing and streamlining the entire supply chain will lead to the creation of a sustainable society, and have been collaborating on such initiatives in the past. This initiative is also in line with this thinking, and we will make steady progress toward the realization of a sustainable society and the sustainable growth of both companies.
*Category delivery: Products are sorted and delivered by category according to the store's sales floor configuration. This reduces the amount of movement during display and replenishment, thereby reducing the workload of store operations.
This challenge in food distribution is part of the "Challenge to Create New Value," one of the key strategies in our medium-term management plan, and we intend to expand the areas in which we provide value by utilizing our accumulated logistics know-how in the various connections in distribution. We will continue to take on various challenges. We will continue to take on various challenges, aiming to realize the prosperity of our business partners and the affluent and comfortable lives of people.
