Supply Chain reform born of enthusiasm: To realize uninterrupted food distribution
- On-site
Yoshihiro Nishimura
(Yoshihiro Nishimura)
Deputy Manager of Hanshin Branch (at the time of interview)
- sales
Hideki Tsuneka
(Tsuneka Hideki)
Deputy Manager, Osaka Sales Department 1 (at the time of interview)
Seeking the possibility of acquiring new clients
-It all started 20 years ago with a phone call-
Food logistics requires “safety” and “quality”. Supermarkets have become established as social infrastructure essential to our lives. Thorough quality control is our greatest responsibility, as we are transporting products that consumers eat. Constant evolution is required not only in terms of hardware such as food storage facilities and locations, but also in terms of software such as knowledge and know-how.
In September 1999, Nissin built a new, state-of-the-art food warehouse in the Kobe Port area that can handle the four temperature zones (frozen, refrigerated, Temperature-contorolled, and room temperature) necessary for food management in one place. We have started sales to acquire new clients. Tsuneka, who was in charge of sales at the time and is now deputy manager of Osaka Sales Department 1, made appointments with companies that seemed to have demand. However, in the case of food logistics, food manufacturers and logistics companies often work together to develop a logistics system while developing the business, and there is little room for new warehouses to enter midstream.
- Tsune deer
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``At that time, we made a list of food import companies and called them one by one, but every company turned us down and said, ``We have companies that have been working with us since we started our business, so we don't need new ones.'' I remember being extremely disappointed.However, on the other hand, I was also hopeful that if I could participate in the time when the logistics system was being built, we might be able to do business permanently."
So they narrowed their target down to "food companies that had just launched a new business" and continued to approach them, and finally got a business opportunity from one of those phone calls with a local food company engaged in the manufacturing, sales, and retail of commercial food ingredients. The company had just started its food SPA business (※) and supermarket franchise business in 2000, and was looking for a long-term partner to do business with in order to fully expand its business.
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SPA business: A business model in which retailers step into the manufacturing field and develop and sell their own original products.
The enthusiasm of those in charge of running the company, and the spirit of betting on the future.
Nissin was given the chance to win a large contract because the characteristics of the newly built warehouse matched the client's needs, but it turned out that this contract required warehouse management that they had never experienced before. In the past, we only carried out so-called "upstream logistics," which revolved around container transportation and devan work to remove cargo from the containers. There was a trend of caution.
- Tsune deer
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``For those of us who normally operate port warehouses, we have never had the experience of being in charge of all logistics, from storage to sorting to store-specific delivery, like we do at a distribution center, so at first there were many negative opinions about accepting orders. However, as I continued to communicate closely with clients, I became confident in the future potential of this business, and went around convincing people within the company.As a result, everyone involved decided to seriously consider it. He said, ``It's hard, but let's do it.''
The client, the sales staff, and the field staff all came together, and in January 2001, we had a good idea of the work and securing human resources, and the contract was signed.
Attaining the most difficult order ever
The pride of the workplace that supported the overwhelming amount of goods
At the warehouse site, where there were many first-timers, it was a constant challenge to face challenges.
The client continues to make great strides, opening new stores one after another. The amount of cargo handled was rapidly increasing, and the available cargo space of 7,000 to 8,000 tons at the time was about to reach its limit in a few years. Warehouses cannot make a profit unless they are full, but we operate the warehouse while keeping the warehouse full. The situation was such that if there was a slight accident, it would overflow.
- Nishimura
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``The amount of goods we had never experienced before was coming in, and we couldn't afford it.'' I had a lot of pride, so I never wanted to give up.”
Nishimura, who was in charge of the site at the time and is now deputy manager of the warehouse division in the Kansai region, immediately contacted nearby warehouse companies in the same industry. We usually receive cargo for re-storage from other companies in the same industry, but this time we asked if it would be possible for us to re-storage the cargo as the consignor. After some consideration, we were able to accept the cargo and were able to respond to the client's orders.
However, there was another issue.
In addition to the unfamiliar work, the increased number of cargoes handled made the work process even more complex. Initially, staff will carry out the sorting and picking work by loading carts by store, and will check with the client each time if there are similar products or new shipments. We continue to use analog methods for shipping and receiving processes, but we are gradually running out of space. Therefore, Nishimura sought the cooperation of the in-house system development department and sought to improve efficiency by converting Warehouse Management System to EDI (*). We also provided cargo knowledge training to field workers and employees in charge. With the same level of knowledge as the client, he instructed the staff to put themselves in the other party's shoes and act proactively. However, if the warehouse was full and the cargo could not arrive right away, we worked hard to ensure that distribution would not be delayed, such as by coordinating with sales and negotiating with the client in advance and adjusting the time.
- Nishimura
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“My job on site is to manage the warehouse, but it is the sales job to convince the client.If either one is missing, things will not go well.No matter how trivial it may be, I will consult with sales and work together to come up with a countermeasure. We worked hard to convince the client.”
After overcoming these challenges and seeing further rapid growth in the franchise business, in 2007 the client built a new distribution center in the adjacent area. Since then, Nissin has been responsible for storage operations and total shipping for multiple stores, while clients have been responsible for store-specific sorting and picking operations.We have created an ideal logistics system that allows us to make the most of our existing knowledge. We were able to establish a system.
- Nishimura
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``It was a lot of hard work, but I felt a great sense of accomplishment when I was able to handle such a large amount of material every day.Also, by running my own business in addition to working within the company, I was able to build friendly relationships with other companies in the same industry outside the company. By overcoming this mountain of a large-scale project, I was able to acquire the composure to remain unfazed even when a somewhat large quantity of goods came up, which led to my confidence.As a result of making maximum efforts to meet the client's requests, I was able to improve the quality. I think it supports the ``normal daily life'' of seeing products lined up in stores every day, and I think the appeal of the workplace is that you can experience that kind of thing.''
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EDI: Abbreviation for Electronic Data Interchange, which is a system for exchanging various transaction data (ordering, shipping, billing, payment, etc.) between companies through dedicated lines (including online).
Promising the future based on our past achievements
After that, demand continued to increase steadily, especially in the low-temperature category, and as the company continued to have business negotiations with clients, the idea of further warehouse demand based on future business plans arose. Therefore, in March 2018, we decided to construct another refrigerated warehouse to the client's specifications next to the existing warehouse. Automated racks have been introduced to enable faster work, making warehouse storage more efficient, and computer control has enabled accurate and efficient warehouse storage. Automation will also help improve the harsh working environment of temperatures below -20 degrees Celsius and help prepare for future labor shortages due to the declining birthrate and aging population. We also take into account BCP measures (*) and respond to disaster risks.
The Maya West Cold Storage Warehouse was completed in February 2020, and by operating it in an integrated manner with the existing adjacent Maya Refrigerated Warehouse and Maya-futo Warehouse, it will become a state-of-the-art comprehensive logistics center that can handle all four temperature zones. Customers are looking forward to the service and comprehensive support system.
- Nishimura
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"With food products that require delicate handling, optimal product management is only possible if we are familiar with the characteristics of each of the four temperature zones.Each of us takes pride in being a 'field specialist,' and we strive to create a warehouse where you can store your food with peace of mind. This mission is completely different from the traditional warehouse business, and we have had to respond to changing times and diverse needs as issues have emerged one after another.At first, we had some difficulties. The work that used to be done in the past is now being transformed into IT and IoT.It is our social responsibility to respond with an unchanging proactive attitude and pursue evolution even as logistics changes at an incredible speed. I think that's my role."
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BCP measures: Measures to minimize damage to important operations and prevent disruption to business operations when a company is hit by an unpredictable emergency situation (natural disaster, accident, power outage, etc.)
The entire company works together to advance the evolution of logistics.
We are proud of the deep trust we receive from our clients.
A new food logistics service started almost from scratch with the construction of a new cold storage warehouse. Mr. Tsuneka from the sales department, who created this opportunity, looks back on the past 20 years and reflects on the factors behind the evolution as follows.
- Tsune deer
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“I believe that the reason this food logistics service has evolved so far over the past 20 years is due to repeated trial and error, with sales, warehouse staff, and clients all working together toward the same goal. During this time, we faced various challenges, but what we were able to overcome each time was that our warehouse staff sincerely addressed what our clients wanted from the very beginning of building a logistics system, and as a result we were able to build a good partnership. I'm sure this is because we were always in the same position.Although we are still competing with our rivals, we are always encouraged by the fact that our clients refer to us as ``the company they rely on.''
Food logistics cannot be stopped no matter what
A rewarding base around the world
On the other hand, Nishimura, who has been working on detailed coordination with staff and the system department at the warehouse site, is truly a ``site specialist.'' What does Nishimura look for in students aiming to study at Nissin?
- Nishimura
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“Food logistics is an essential infrastructure for society, no matter how difficult the situation may be, including social changes caused by recent heavy rain disasters and global infectious diseases. There are a variety of bases.I encourage all students to find their own strengths and characteristics and take on the challenge of doing what they want to do in the global world."
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