Sustainable Stories

Logistics forms the backbone of everyday activities, ensuring essential items reach those who need them. For material manufacturers like Nagase Viita, while continuous product quality enhancement is foundational, the added value of a safe and reliable transportation system is just as crucial. Beyond managing costs, companies also bear the responsibility of minimizing their environmental impact during transportation.

This is why our logistics department is implementing various initiatives to reduce transportation costs and achieve sustainability. For example, we are taking all possible measures, such as using Japan Railways’ containers, making paperless forms, and switching to recyclable packaging materials. One of these measures is transporting liquid products (Mizu-ame, starch syrup) by tank trucks.

Our factory produces Mizu-ame, a maltose syrup, which can be delivered to customers (such as food manufacturing plants) in two ways, depending on the quantity. For smaller orders, we use containers and regular trucks for transportation. In contrast, larger orders are directly loaded into tank trucks, reducing the use of containers and eliminating the need for refilling. With the cooperation of our customers, we're continually working to increase the use of tank truck transportation when feasible.

The distribution company in charge of delivering our starch syrup ptorudcts in the eastern Japan area is Towa Tsusho Co., Ltd. The company is part of Minato Distribution Service Co., Ltd. based in Fuji City, Shizuoka Prefecture.
Among the many forms of transportation, they specialize in the tank truck transportation of liquid products (such as Mizu-ame, drinking water, sake, mirin, and alike) that require strict hygiene control. Towa Tsusho is one of our trusted partners, providing stable transportation services throughout Japan from five key bases in the Pacific region of Japan. The company is deeply committed to the future of the industry and the broader social environment, actively undertaking various initiatives aimed at sustainable management.

As part of its commitment to community service, the company has taken the initiative to publicly share data on traffic accidents involving kindergarten, elementary, and middle school students in Fuji City. Leveraging the 'My Maps' feature of Google Maps, the company independently digitizes accident information provided by the local police. Schools can then utilize this data to enhance traffic safety measures for their students. President Ishikawa swiftly implemented this proactive measure after witnessing similar initiatives in other municipalities.
Furthermore, in response to requests from local municipalities and major retailers, the company offers water supply assistance to areas affected by disasters. In the past, they've dispatched water trucks and staff to places like Shizuoka City and the prefectures of Niigata, Miyagi, Wakayama, and Akita.

In recent years, the company has been actively hiring female employees. Although the workplace used to be dominated by men due to the nature of the transportation industry, the company has made strides to be more inclusive by adding facilities such as restrooms and shower rooms specifically for women. Female employees comprise approximately 25% of the administrative staff and 7% of the drivers.
"While our percentage of female employees is notably high within the industry, there's still room for improvement," says President Ishikawa. "I'd like to see at least 10% of our drivers being women."

These sustainability-driven initiatives stem from concerns over the forthcoming "2024 Logistics Challenges." The term refers to the anticipated issues starting from April 2024, when regulations will cap annual overtime hours for vehicle operators at 960 hours, which impacts the logistics industry. Though this aims to curtail excessive work hours, it might lead to decreased revenues for logistics firms and reduced earnings for drivers. Consequently, a considerable decline in Japan's transportation capacity is expected.

To address these anticipated challenges, the immediate action is to maximize efficiency and actively tap into available talent. Take tank truck transportation as an example: it can be less cost-effective than general truck transportation because a tank needs a thorough cleaning before the next shipment. In contrast, general trucks can quickly prepare for another shipment after unloading. The more often tank trucks return to their base with empty tanks, the less profit transport companies earn, as the truck runs without a load. This inefficiency not only escalates freight costs for shippers but also inflates the prices of transported products. Therefore, minimizing empty returns and streamlining operations become critical for transport companies, shippers, and consumers.
Nagase Viita has taken proactive steps to address this by installing sophisticated tank-cleaning facilities and sharing detailed route information with other carriers to boost transportation efficiency and minimize empty returns.