Corporate Profile 2017 - Kintetsu World Express, Inc - KWE Switzerland
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Corporate Profile 2017 Kintetsu World Express, Inc. 24th Fl, Shinagawa Intercity Tower A, 2-15-1 Konan, Minato-ku Tokyo 108-6024 Japan Tel: 03-6863-6440 Fax: 03-5462-8501 http://www.kwe.co.jp
A Message from the President As globalization of the economy and industry accelerates, international logistics is becoming increasingly important as “the lifeblood of the world economy”. Our group companies will accurately grasp the needs of individual customers, designing optimal logistics and executing it in a fast-changing environment. We aim to be a true "Global Logistics Partner" that will be indispensable to business development, beyond the framework of conventional logistics companies. Our group will celebrate its 70th anniversary in 2018. Our challenge for the next future is already beginning. Representative Director President Nobutoshi Torii Contents 02 A Message from the President / Corporate Philosophy Corporate Philosophy 04 About “KWE” 06 Our Services 01 International Air Freight Contribute to the development of a global community 08 Our Services 02 International Sea Freight through logistics services – by creating new values, 10 Our Services 03 Logistics 12 Our Global Network sustaining the environment and collaborating 14 APL Logistics with our clients, shareholders and employees. 15 International Management & Security Standard Certifications 16 KWE Global System 17 Our Corporate Social Responsibility 18 Company Data / History / About Kintetsu Group 02 03
About “KWE” Air Freight Exports (‘17/3) Sea Freight Exports (‘17/3) 495,947 556,640 tons TEUs APLL Global Network (as of Mar. 31, 2017) Southeast Asia 112,848 101,312 Japan Southeast Asia 139,408 102,975 Japan Air Freight 125,476 Exports Sea Freight Exports The (weight:tons) The Americas Americas (Volume:TEUs) 84,490 42,909 East Asia, Oceania East Asia, Europe, Europe, 117,476 Middle East, and Oceania Middle East, and Africa 153,319 Africa 53,261 19,113 Medium-Term Management Plan (FY ending March 2017 - FY ending March 2019) 46 351 848 Vision A superior business partner supporting customer’s strategic objectives and activities by providing comprehensive innovative supply chain solution Countries Cities Sites Slogan Going to the Next Phase! ―Toward Air Freight Export 700,000 tons/Sea Freight Export 700,000 TEUs― Number of Employees (as of Mar. 31, 2017) Net Sales・Operating Income (Consolidated) 18,159 Targets by March 2019(Revised on May 11, 2017) Net Sales: 568 billion yen Operating Income: 18 billion yen 474,330 (Million of Yen) 420,252 Key Strategies 327,192 1. Become an industry leader providing comprehensive services 281,505 2. Actively respond to customer’s logistics needs at production 247,977 locations and consumer markets 16,563 15,356 3. Improve productivity by leveraging corporate capabilities 13,295 13,742 13,075 Core Competences 2012 2013 2014 2015 2016 Maximize efficient utilization Strengthen corporate risk Heighten quality of of corporate resources management capabilities operational performance Net Sales Operating Income 04 05
Our Services 01 Preferred Carrier Program Specialists By Commodity International KWE has contracted a strategic partnership with more than ten airlines, making it possible to Transportation of automobiles, healthcare equipment, aircraft materials, and semiconductors requires Air Freight respond to all customer needs in terms of specialized handling and knowledge of the respective schedule, space, and rates. commodities. KWE employs and stations staff around the world who are experienced in handling such commodities, with an aim to provide distinguished service and ensure all the handling needs of our customers are met. Air Freight Performance Since its establishment, KWE has made air cargo transportation its core business and strength. Among the tens of thousands of forwarders handling air cargo in the world, KWE’s handling volume is ranked top 10 globally. (Weight : tons) 495,947 478,564 457,461 442,514 424,426 2012 2013 2014 2015 2016 Case Study Aircraft Engine Transport Aircraft engines are a special class of cargo that requires high transportation technology, as the weight of the aircraft engine is 495,947 AIR FREIGHT immense, often exceeding 10 tons with dimensions larger than 500 x 300 x 300 cm. In general, large-sized cargo handling employs cranes, but the risk of cargo damage also increases as cargo is raised and lowered many times. Therefore, KWE has developed a method of using special vehicles with a roller bed, loading the cargo directly from the truck into the aircraft. With this method, the damage risk and loading timeframe are reduced. tons (’17/3) 06 07
Our Services 02 556,640 SEA FREIGHT International Sea Freight TEUs (’17/3) Preferred Carrier Program As with our air cargo business, we also have strategic, established partnerships with several international steamship lines, providing stability in an industry undergoing substantial reorganization. Vast Handling Experience In recent years, we have expanded our handling of commodities specific to sea freight transport, gaining handling experience with goods such as paper, coils, and raw materials. This integral work bolsters KWE’s ability to provide high quality sea freight transportation services. Sea Freight Performance 556,640 (Volume:TEU) Our sea freight volume has increased 83% over 455,062 the past five years, and shows to be the most prominent area for growth in KWE. We intend to 396,152 362,341 further expand on our group’s current efforts to KWE’s NVOCC Services 304,429 provide premium sea freight forwarding service As a certified NVOCC, KWE provides diverse ocean freight transport services to to customers. meet the ever-changing needs of our customers’ business models. 1. We cultivate partnerships with shipping companies across the globe to 2012 2013 2014 2015 2016 meet the requisites of both our customers and regulatory bodies. 2. We oversee all aspects of the cargo process from pickup, to customs Case Study clearance, to delivery—all at the customer’s request. 3. We effortlessly handle modal changes from sea freight transport to air, Carrier Selection in Consideration of Port Trans-loading Service and vice versa. Operation, Congestion, and Status Imports to US inland areas are usually carried by rail 4. We can easily move shipments across several countries by utilizing our There are a total of 14 terminals in the Los Angeles transport to the nearest container yard after it is globally established network of warehouses and logistics centers. and Long Beach port complex. With intangible unloaded at the Los Angeles and Long Beach ports. factors such as weekend operations availability, A proven option for transit time reduction is our truck waiting times, container pickup appointments, trans-loading service. Through this process, we can and dock rail availability, KWE leverages these set the delivery date and schedule the shipment variables to provide seamless and optimal service according to customer's specifications. for our customers. 08 09
Our Services 03 Logistics Globally Developed Vertical-Market Logistics Services KWE's Global Logistics Sites 209 KWE provides high-quality logistics services in major cities around the world. We also develop and operate optimal solutions that deal with a wide range of items including: advanced electronic products, automobile-related goods, retail fashion, aerospace commodities, and healthcare-related products. Warehouses Total area (1,449,058㎡) KWE’s logistics capabilities include a network of 209 warehouses with U.S.A. (Detroit) Canada (Toronto) Netherlands (Amsterdam) U.K. (London) a total area of 1,449,058 m². Singapore Vietnam (Hanoi) Taiwan (Taoyuan) Japan (Narita) 10 11
Our Global Network KWE APLL KWE & APLL Japan Czech UAE Bangladesh Singapore Honduras Canada France Saudi Arabia Cambodia Thailand Peru U.S.A. Germany Bahrain India Vietnam Panama Brazil Ireland South Africa Indonesia Egypt Pakistan Mexico Italy Australia Laos Turkey Sri Lanka U.K. Russia China Malaysia Chile Oman Belguim Sweden Korea Myanmar Costa Rica Netherlands Switzerland Taiwan Philippines Guatemala East Asia & Oceania The Americas Japan Europe, Middle East & Africa Southeast Asia 12 13
APL Logistics International Management & In May 2015, APL Logistics Ltd. (APLL) became a member of KWE Group as a standalone business unit. APLL is a global leading third-party logistics provider and a go-to supply chain specialist for Security Standard Certifications companies in Automotive, Consumer, Industrials, and Retail sectors. APLL provides international, The KWE Group continually strives to improve by providing services to customers and improving the integrated end-to-end supply chain services in more than 60 countries, including both origin and working environment for employees through the acquisition and operation of various standard destination services such as freight consolidation, warehousing, and distribution management. The certifications. company also offers consulting solutions and uses IT for maximum supply chain visibility and control. APLL’s major lines of services include: ■ ISO (International Organization for Standards) Certifications (as of Mar. 2017) International Logistics Services ❶ ISO9001 Under this category include Air and Ocean Forwarding, Purchase Order (PO) Management, Buyer's TC-1 U.S.A. / Canada Consolidation, as well as Customs Brokerage. TC-2 France / Germany / U.K. / Ireland / Italy / Benelux / Russia UAE / Saudi Arabia (Bahrain) / South Africa Intermodal and Trucking Logistics TC-3 Japan (3 companies) / Hong Kong / Philippines / Singapore / Malaysia Rail and Road Transportation services are included in this category. As the market leader of Thailand (2 companies) / Korea / Taiwan / India / Indonesia / China (3 companies) intermodal services between the U.S. and Mexico, APLL manages seamless movements between truck and rail services. Rail freight service for finished vehicles is also offered in India. ❷ ISO14001 TC-2 France / Russia / South Africa Contract Logistics Services TC-3 Japan (2 sites) / Hong Kong (4 sites) / Philippines (2 sites) / Malaysia (2 sites) / Taiwan (2 sites) In addition to the Contract Logistics Services, we have developed additional value-added services, such as products delivery from suppliers in multiple countries to importers in multiple countries. ❸ ISO13485 TC-3 Japan (Baraki No. 4 Terminal) ❹ OHSAS18001 APLL Services Overview TC-3 Hong Kong / Philippines / Taiwan Contract Business Intermodal and Logistics International Logistics Services Segments Trucking Services ■ TAPA (Transported Asset Protection Association) Certification (as of Mar. 2017) TC-1 Los Angeles / San Francisco Warehouse International Rail/ Road PO Management Management & Freight Management Intermodal Service TC-2 London / Dublin Distribution What services do we offer? TC-3 Narita / Hong Kong (4 sites) / Manila / Singapore (2 sites) / Kuala Lumpur Penang / Incheon / Taoyuan / Shanghai (4 sites) / Shenzhen Buyer's Consolidation Customs Brokerage Cross-border & Value-added Services Domestic Trucking ■ GDP (Good Distribution Practice) Certification (as of Mar. 2017) TC-2 Germany / U.K. / Ireland / Italy / Benelux ■ AEO (Authorized Economic Operator) Certification (as of Mar. 2017) TC-1 U.S.A. (C-TPAT) TC-2 France / Germany / U.K. / Ireland / Italy / Benelux / Switzerland TC-3 Japan / Singapore (STP) / Thailand / Korea / Indonesia / Taiwan / Shenzhen 14 15
Customers Shareholders / Investors Employees KWE Global System Our Corporate Social Responsibility KWE Group KWE utilizes UFS as its unified global system, which aims at improving the The KWE Group’s corporate activities are being deployed on a global scale and all relevant Local Communities / Partner Companies / Governing Suppliers efficiency of operations and provides transportation information to customers stakeholders are involved in this relationship: customers, shareholders, investors, partner Administrations through CSS. companies, suppliers, local communities, governing administrations, and our employees. We aim to build a good relationship of trust with our stakeholders and promote responsible behavior. Global Environment ■ Environmental Initiatives and Efforts KWE Operation In addition to our corporate philosophy, to contribute to the development of a global community through logistics services, KWE Group sets forth the following policy to conserve the earth’s valuable natural resources and to preserve the Shipment Export Import environment: Receiving Customs Transport Customs Delivery Receiving Processing Inventory Shipping Clearance Clearance KWE Group’s Environmental Policy Forwarding Operation Warehouse Management Operation ❶ We promote global pollution prevention and conduct continuous improvement activities. Input ❷ We comply with environmental protection laws, regulations, and requirements of each country that we operate in. ❸ From the aspect of environmental matters related to business activities, we define the following items as the key objectives on environmental management: UFS UWS ■ Control greenhouse gas emissions (electricity consumption, exhaust gas emissions from vehicles and equipment). ■ Reduce waste and promote recycling efforts. UNIFIED FREIGHT SYSTEM UNIFIED WAREHOUSE SYSTEM ❹ We prevent environmental pollution in cooperation and collaboration with clients, affiliated companies, and subcontractors. KWE Group’s logistics and freight The Unified Warehouse System ❺ We make both KWE employees and the public aware of our environmental protection policy through internal and external communications. forwarding platform that provides compatible inventory corresponds with all of our management and distribution. freight transport and logistics operations. ■ Welcoming Diversity The KWE Group offers an environment with zero tolerance for world to challenge themselves by seeking opportunities Shipping Advice Warehouse discrimination, fostering a business culture where each within the Group in different countries. By compiling data on Shipment Tracking In & Out Inventory person can work and perform their duties fairly and to the outstanding local human resources in each company, it is best of their ability regardless of ethnicity, nationality, gender, possible to transfer appropriately skilled personnel to creed, or disability. The KWE Group’s personnel exchange UWS assignments beyond the framework of each of the local Customers program allows local employees in countries around the companies. CSS View CUSTOMER SERVICE SYSTEM UNIFIED WAREHOUSE SYSTEM VIEW ■ Social Contribution Activities The Customer Service System is The Unified Warehouse System KWE’s Internet-based customized View is a system that allows The KWE Group is engaged in social contribution activities such as environmental protection, welfare, and cultural support. Such cargo tracking system. customers to search inventory on activities have involved 11 corporations and total 30 projects in the fiscal year of 2016. a global basis. Contributions by KWE India Contributions by KWE Thailand KWE India supports a project to promote girls’ education, KWE Thailand participates in reforestation activities for called the “Girl’s Glory Project”, working hand-in-hand with a mangrove trees to prevent coastline erosion caused by local non-government organization. In order to improve the large-scale logging. hygiene of designated elementary schools in the project, we set up flush toilets. We also provide school bags and uniforms for children to wear to school. 16 17
2015 Acquired APL Logistics, a logistics company with strengths in logistics services and Company Data various high-value-added services. About Kintetsu Group Name of Corporation: Kintetsu World Express, Inc. (KWE) Head Office: 24th Fl, Shinagawa Intercity Tower A, 2-15-1 Konan, Minato-ku Tokyo 108-6024 Japan Kintetsu World Express is one of Paid-in capital: ¥7,216 million 2003 Stock listing upgraded to the group member companies of Start of Business: 1948 Established: 1970 First Section of Tokyo Stock Kintetsu Group Holdings Co., Ltd., Exchange. Representative: Nobutoshi Torii, 2014 Partially transferred ordinary shares of Founded in 1910, Kintetsu Group Holdings Co., Ltd. is one Representative Director of the biggest railway companies in Japan. Panasonic Trading Service Japan Co., Ltd. President to Kintetsu World Express; the former’s Types of Business: 1. Customs agent company name was changed to Kintetsu Panasonic Trading Service Co., Ltd. 2. Transportation agent 2011 The group engages business 3. Warehousing 4. Domestic and foreign air and ocean freight 2010 Headquarters moved from Marunouchi to Shinagawa. Transportation · Railway forwarding business, trucking company agent · Bus and taxi 2002 5. Any business related to all of the above · Logistics (KWE) Listed on the Second Section of Stock market: listed on the Tokyo Stock Exchange Tokyo Stock Exchange. · Shipping (First Section) 2000 2000 Listed on Nasdaq Japan Market, a section of Osaka Real Estate Securities Exchange. · Sale (Delisted on Sep. 2004.) · Leasing · Renovation 1990 Retail and 1989 · Department stores Distribution 1970 1980 The company name was changed to Kintetsu World Express, Inc. · Stores · Terminal stations Separated from Kinki Nippon · Service and parking Tourist Co., Ltd. to become areas of expressways independent as Kintetsu World Express, Inc. 1970 Hotels and · Hotels and leisure Leisure · Travel agency 1969 Established local subsidiaries in Hong Kong and the United States. 1955 1960 Trade name changed to Kinki Nippon Tourist Co., Ltd. Other Businesses · Cultural business · Cable TV 1950 1948 The Operation Bureau of Kinki 144 companies (as of March 31, 2016) 1940 Nippon Railway Co., Ltd. began handling international freight and travel service. 18 19
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