Long-Term Vision “TRANSFORM 2025” Our Vision, Mission and Values Business Strategy Group Themes / Business Themes / Area Themes Yusen Logistics launched a new Vision, Mission and Values to ensure our contribution to society and drive sustainable growth going forward. We will share our common values that we have redefined anew, and take a new step forward into the future with all employees worldwide. We formulated our business strategy, which has four core components as we work to realize our 2025 Vision. These form the cornerstone of all of our strategies. As the first step toward achieving our long-term vision “TRANSFORM 2025”, we drew up our Group Themes, Business Themes and Area Themes. So that Yusen Logistics can respond to the fast-changing business environment and continue to advance, we formulated our direction for the future, how to get there, and a viable timeframe as “TRANSFORM 2025”. We redefined our Vision, Mission and Values and set them as the Company’s foundation. We also drew up a roadmap for growth that outlines where we want to be in 2025. When will we make it happen? Roadmap to 2025 Our Vision, Mission and Values Business Strategy Group Themes Business Themes Area Themes 2017 Annual Report 07 Company Data Financial Information ESG / Sustainability Business Overview President’s Message Our Strategy
Transcript
Long-Term Vision“TRANSFORM 2025”
Our Vision, Mission and Values
Business Strategy
Group Themes / Business Themes / Area Themes
Yusen Logistics launched a new Vision, Mission and Values to ensure our
contribution to society and drive sustainable growth going forward.
We will share our common values that we have redefined anew, and take
a new step forward into the future with all employees worldwide.
We formulated our business strategy, which has four core components as
we work to realize our 2025 Vision. These form the cornerstone of all of our
strategies.
As the first step toward achieving our long-term vision “TRANSFORM 2025”,
we drew up our Group Themes, Business Themes and Area Themes.
So that Yusen Logistics can respond to the fast-changing business environment and continue to advance, we formulated our direction for the future, how to get there, and a viable timeframe as “TRANSFORM 2025”. We redefined our Vision, Mission and Values and set them as the Company’s foundation. We also drew up a roadmap for growth that outlines where we want to be in 2025.
When will we make it happen?
Roadmap to 2025
Our Vision,Mission
and Values
Business Strategy
Group Themes
Business Themes
Area Themes
2017 Annual Report 07
CompanyData
FinancialInformation
ESG /Sustainability
BusinessOverview
President’sMessage
OurStrategy
Connecting people, businesses and communities to a better future — through logistics.
To become the world’s preferred supply chain logistics company — applying insight, service quality and innovation to create sustainable growth for business and society.
CONNECTED
COMMITTED
CREATIVE
We invest in insight to get to the heart of our
customers’ challenges.
We are open and transparent in the way we work.
Deeply involved in building relationships — everything
we do is with the long-term in mind.
Our dedication to quality is the cornerstone of our
success — we get every detail right.
We are constantly developing better ways of working.
If we find a better way of working, we act upon it and
proactively share it.
Our Vision, Mission and Values
Our Vision
Our Mission
Our Values
Our Brand Promise
CREATE BETTERCONNECTIONS
Our promise is a short-hand for what we aim to deliver time and time again. That’s why we’re:– Finding better ways to bring our customers closer to their customers– Helping us all be closer to the communities and markets we serve– Fostering closer connections with all our colleagues– Keeping ourselves and our customers at the forefront of technological
and operational innovation – Ensuring we all build better connections to secure the future of our
businesses
Our Tagline — “INSIGHT INTO ACTION”
Insight into action is our company’s new external tagline and describes the benefit to customers of delivering our brand promise. It demonstrates our commitment to understanding their operations, their business, their supply chain and their future — and taking positive actions based on this understanding.
2017 Annual Report 08
CompanyData
FinancialInformation
ESG /Sustainability
BusinessOverview
President’sMessage
OurStrategy
Business Strategy
4 SUSTAINABLE
GROWTH
3 SERVICE QUALITY
2 INSIGHT FOCUS
1 GLOBAL UNITY
ORGANIZING & EXECUTING FOR THE FUTURE
WINNING WITH QUALITY AND CUSTOMER SATISFACTION
DEVELOP CUSTOMER AND INDUSTRY INSIGHT AND APPLY IT
CREATING A UNIFIED GLOBAL NETWORK
A company which contributes to the long-term sustainability and profitability of our customers’ supply chains.
A company which constantly improves quality and capability to provide high value for customers.
A company with a deep insight and understanding of our customers and the challenges they face.
A company with the solid foundations to deliver consistently and competitively in every corner of the world.
How we deliver our Mission
2017 Annual Report 09
CompanyData
FinancialInformation
ESG /Sustainability
BusinessOverview
President’sMessage
OurStrategy
Group Themes
Invest in the future
Strengthen our foundation
Enhanceour capability
Fix our direction – Bring our new Vision, Mission, and Values to life internally and externally through ongoing investment in brand, marketing, and corporate governance
– Invest in our people for the long-term through talent development, training, and employee engagement programs
– Develop our global expertise and knowledge sharing ability, while expanding our customer insight through our Sales and Marketing organization
– Develop our vision of a customer-facing IT platform that will match our customers’ future demands
– Establish new business unit for Supply Chain Management to manage increasing complexity across the supply chain
– Ensure laws regulations and fair trade practices are abided in all areas we operate
– Focus on our quality management processes by developing global standards and policies that support in delivering a world class customer experience
– Contribute to the sustainable development of the society by faithful compliance with laws and regulations, and fair trade practices through understanding of the diversity of social responsibility of a corporation
We drew up Group Themes such as a further strengthening of corporate governance and a human resources strategy to achieve our long-term vision “TRANSFORM 2025”.
2017 Annual Report 10
CompanyData
FinancialInformation
ESG /Sustainability
BusinessOverview
President’sMessage
OurStrategy
Business Themes2017-2019
– Restructure the Network Infrastructure
– Re-Invest in Information Technology for more streamlined and improved End-to-End processes
– Long-term investment to improve CLT* capabilities in facilities, logistics technology, organization and human resources
– Reinforce business management infrastructure such as contract management, global IT platform and managerial accounting to improve our cost control and bottom line management
– Standardize Operations to eliminate non-value added processes as much as possible
– Establish a Kaizen Activity cycle with the introduction of a Global Network-based Quality Improvement Policy designed to prevent the recurrence of Quality Failure related costs and penalties
– Establish and promote global quality management program to drive our quality management and Kaizen activities
– Develop “CLT* Engineering” function at each organization to reinforce process analysis and planning capabilities
– Provide services based on a deeper understanding of our Customers’ Core Challenges
– Consider and anticipate Market Trends when discussing Service Offerings with Customers
– Establish standardized “customer relation management process” throughout our organization
– Strengthen our solution capabilities to customers based on their exact needs and updated industrial trends
– Provide standardized service in every corner of the globe
– Become a One-Stop Freight Forwarding Partner whenever and wherever needed
– Enhance Brand Franchising Concept throughout operating companies
– Develop global common functions which contribute to our superior growth
As the first step toward achieving our long-term vision “TRANSFORM 2025”, we drew up Business Themes that cover the three-year period from FY2017 to FY2019 for both the International Freight Forwarding Business (Ocean Freight Forwarding and Air Freight Forwarding Business) and the Contract Logistics and Transport Business.
INTERNATIONAL FREIGHT FORWARDING CONTRACT LOGISTICS AND TRANSPORT
4 SUSTAINABLE
GROWTH
3 SERVICE QUALITY
2 INSIGHT FOCUS
1 GLOBAL UNITY
*CLT:Contact Logistics and Transportation
2017 Annual Report 11
CompanyData
FinancialInformation
ESG /Sustainability
BusinessOverview
President’sMessage
OurStrategy
Area Themes 2017-2019
Optimize the organization, function and operations process to improve efficiency and quality (Investment in 3 years: ¥3.0 billion)
1. Continuously invest into talent, systems, infrastructures, and process improvement2. Develop and grow intra-regional solutions by expansion of logistics capabilities (Investment in 3 years: ¥5.0 billion)
1. Develop business opportunities in Central and Eastern Europe2. Expand footprint by looking to develop potential markets in Africa (Investment in 3 years: ¥5.0 billion)
1. Expand International Freight Forwarding Business aiming to be one of top class forwarders2. Develop cross-border business to South Asia and Europe (Investment in 3 years: ¥4.0 billion)
1. Expand cold-chain and healthcare business into one of the region’s main commercial pillars2. Aggressively look for appropriate investment opportunities (Investment in 3 years: ¥12.0 billion)
As the first step toward achieving our long-term vision “TRANSFORM 2025”, we drew up Area Themes based on regional characteristics that cover the three-year period from FY2017 to FY2019.
Japan
Americas
Europe
East Asia
South Asia & Oceania
2017 Annual Report 12
CompanyData
FinancialInformation
ESG /Sustainability
BusinessOverview
President’sMessage
OurStrategy
0
200
400
600
800
1,000
570
14.0
720
23.0
880
35.0
FY2019 Target FY2022 Target FY2025 Target
Net Sales Operating Income
0
10
20
30
40(Billions of Yen) (Billions of Yen)
0
500,000
1,000,000
1,500,000
2,000,000
1,000,000
1,300,000
1,700,000
FY2019 Target FY2022 Target FY2025 Target
(TEU)*
0
300,000
600,000
900,000
460,000
600,000
710,000
FY2019 Target FY2022 Target FY2025 Target
(Tons)
Roadmap to 2025FY2019 Target
(Billions of Yen)FY2022 Target
(Billions of Yen)FY2025 Target
(Billions of Yen)
ALL*After Reconciliation
Net Sales 570 720 880
Operating Income (Operating Income to Net Sales) 14.0 (2.5%) 23.0 (3.2%) 35.0 (4.0%)
OceanFreightForwarding
Net Sales 210 240 300
Operating Income (Operating Income to Net Sales) 4.0 (1.9%) 7.0 (2.9%) 12.0 (4.0%)
Volume 1.0m TEU 1.3m TEU 1.7m TEU
Air FreightForwarding
Net Sales 170 220 260
Operating Income (Operating Income to Net Sales) 4.5 (2.6%) 8.5 (3.9%) 12.0 (4.6%)
Volume 460k ton 600k ton 710k ton
Contract Logistics and Transport
Net Sales 240 320 400
Operating Income (Operating Income to Net Sales) 5.5 (2.3%) 7.0 (2.2%) 11.0 (2.8%)
OthersNet Sales 10 12 14
Operating Income (Operating Income to Net Sales) 0.5 (5.0%) 1.0 (8.3%) 1.0 (7.1%)
