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NYK DEFINES DECENTRALIZED GLOBAL LOGISTICS STRATEGY

NYK DEFINES DECENTRALIZED GLOBAL LOGISTICS STRATEGY

   Japan’s Nippon Yusen Kaisha shipping and logistics group has defined a global, decentralized logistics strategy plan aimed at reinforcing and expanding its logistics business within the group.

   The logistics strategy sets short term targets in five main areas. These are:

   * Marketing on a region-by-region basis;

   * Establishment of regional control bodies carrying the name “NYK Logistics;”

   * Promotion of the “integrated solution business model;”

   * Strengthening of information technology; and

   * Geographical expansion of its global network.

   NYK has defined six regions for its logistics activities: the Americas, Europe, Oceania, Asia (the ASEAN area), China and Japan. Each region will set marketing targets mainly independently. North America and China will be “priority regions.”

   NYK will establish regional organizations in each region in April 2003, each bearing the name “NYK Logistics” and the name of the region.

   At the same time, NYK’s head office in Tokyo will delegate authority to these regional organizations.

   The Japanese group said that it would promote integrated logistics services, encompassing such activities as high-value-added warehousing and the expansion of intra- and inter-regional distribution networks. The services will combine, through a global network, multiple logistics services, including domestic and international distribution, consolidation, management of the issuance and receipt of orders, inventory management, customs clearance, packing and management of logistics information.

   NYK plans to build a new IT system to ensure visibility of shipments at all points along the supply chain.

   For future geographic expansion of its logistics business, NYK named the Middle East and Latin America as potential areas to enlarge its global network.

   Since the formation of a logistics section in 1983, the NYK’s logistics division has now grown to operate more than 50 offices and more than 100 logistics centers in 23 countries around the globe.

   The group “has endeavored to meet the diverse needs of customers as a ‘comprehensive logistics operator’ by going beyond its basic business as a shipping enterprise,” NYK said.

   Under the new strategy, NYK wants to expand its logistics business further by making the most of a “reservoir of know-how” built over 20 years. NYK also hopes that its brand will be recognized by customers as a global partner in supply chain management.

   Yusen Air & Sea Service Co., Ltd., the airfreight forwarding subsidiary of the NYK group, will form part of the group’s logistics business.