p98-99 - Ajinomoto

Initiatives in Logistics
Logistics in the food industry faces many challenges, including a shortage of truck drivers, rising distribution costs, and
environmental issues such as the need to reduce CO2 emissions. The Ajinomoto Group is reducing its environmental impacts,
from raw material procurement to product delivery.
To reduce transport-related CO2 emissions, the Group is taking proactive measures, including boosting efficiency of delivery
systems and pursuing modal shift and eco-driving.
Initiatives as a consignor
Japan’s revised Act on the Rational Use of Energy obliged specified consignors to
CO2 emissions per unit of
sales
reduce CO2 emissions from transport and delivery by at least 5% on a per-unit basis
within five years of fiscal 2006. This applied to Ajinomoto Co., Inc. and Ajinomoto Frozen
Foods Co., Inc.
CO2 emissions per unit of sales =
Energy used/Weight of products sold
55
In fiscal 2015, CO2 emissions per unit of sales from transport and delivery declined
50.1 50.5
2.4% year on year, to 9.2% less than in fiscal 2010. This achievement was due to
45
48.7
50.9
46.6
improved efficiency in distribution and the following actions the company took to man-
45.5
age risk. Learning from the Great East Japan Earthquake, the company set up two
0
primary distribution centers—one in the northern Kanto region and one in the Kansai
region—instead of relying on just one site in Kawasaki, as before. It adjusted its nation-
2010
2011
2012
2013
2014
2015
(Fiscal year)
CO2 emissions per unit of sales
during transport and delivery
wide distribution network to accommodate these changes.
9.2% decrease
Going forward, the Ajinomoto Group expects to continue to meet the legal requirement of a 1% annual reduction.
(compared to fiscal 2010)
Modal shift by Ajinomoto Co., Inc.
Modal shift1 efforts in the Ajinomoto Group began in 1995, spearheaded by Ajinomoto
Co., Inc.’s Logistics Planning Department and AJINOMOTO LOGISTICS CORPORATION. The Super Green Logistics Plan of Ajinomoto Co., Inc. is currently being imple-
Modal shift percentage of Ajinomoto Co., Inc.
FY2015 results (food products category)
Overall
500 km or more
(rail 23%, ship 26%)
(rail 29%, ship 46%)
mented to simultaneously strengthen transport capacity and make distribution
environmentally responsible. Distribution is being overhauled to address the chronic
shortage of long-distance truck drivers and the drop in transport efficiency caused by
49%
75%
the shift to the Dual Mother Distribution Center system.
Until 2012, only rail transport was used for distances of 500 km or more, but the use
of ship transport is now being increased. Ships are now used to transport products from
Kanto to Hokkaido, Kansai to Kyushu, and Kawasaki to Kansai. Meanwhile, rail transport has been enhanced by utilizing large and efficient 31-foot containers. In fiscal 2015,
the modal shift percentage of Ajinomoto Co., Inc. was 75%. Efforts to increase this
percentage are ongoing, with a target of reaching 87% by the end of fiscal 2016.
Cargo ferry used in ship transport
1 Changing to modes of transport with lower environmental impact, including rail and ship transport. Railway container and ship
transport produce one-eighth and one-fifth of the CO2 emissions of trucking, respectively.
Relay Liner®: Better work environment for drivers and transport efficiency
The Ajinomoto Group is addressing the improvement of work conditions for long-distance truck
drivers. Main issues include irregular work arrangements, the need to sleep in the truck, and long
working hours. In August 2015, AJINOMOTO LOGISTICS CORPORATION started using the
Relay Liner®, which allows drivers from the Mie and Kuki Distribution Centers same-day return by
exchanging entire loaded trailers at a midpoint Shizuoka.
Relay point, Shizuoka
Mie
®
Relay Liner
Same day return
Kuki
Same day return
Specially-designed trailer Relay Liner®
Loads 1.5 times the pallets of a regular truck (16 pallets
increased to 24)
Relay Liner ® is exchanged and each driver returns back to starting point
Ajinomoto Group Sustainability Data Book 2016
The Environment
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98
Initiatives in Logistics
TOPICS
Collaborating to create “F-LINE”1 food company
distribution platform
Six Japanese food manufacturers (Ajinomoto Co., Inc., Kagome Co., Ltd., The Nisshin OilliO
Group, Ltd., Nisshin Foods Inc., House Foods Group Inc., Mizkan Co., Ltd.) reached an
agreement in February 2015 to establish the “F-LINE” food company distribution platform. To
achieve sustainable logistics, six companies have discussed (1) collaborative shipping among
the six companies, (2) redesigning their main routes for medium and long-distance transport,
and (3) standardizing logistics systems.
1 Food Logistics Intelligent Network
ix companies’ collaborative shipping and standardized
S
logistics systems
In April 2016, the six companies started joint shipping (for non-refrigerated products) in
Hokkaido. To improve transport efficiency, they combined four shipping centers into two to
share their storage and delivery trucks. The platform called “F-LINE” has decreased CO2
emissions by about 16% (during the period May to July 2016).
Also, the companies are linking up their systems and centralizing logistics information for
joint shipping to standardize and boost efficiency of their logistics functions, including inventory
AJINOMOTO LOGISTICS CORPORATION's
Sapporo Distribution Center in Hokkaido
control and delivery trucks allocation. This reduces the number of deliveries than before when
multiple companies were delivering products individually as well as the amount of receiving
work on the receiving side, leading to greater overall efficiency across the supply chain.
Cooperation on backhauling to reduce CO2 emissions
In March 2016, Ajinomoto Co., Inc. and Mizkan Co., Ltd. launched joint use of rail for two-way
medium and long-distance transport between the Kanto and Kansai regions. Previously, both
Standardized shipping documents for “F-LINE.” AGF
is gradually introducing same system in Hokkaido
companies used rail and truck to transport product inventories carrying loads only in one
direction. Ajinomoto now sends its products on the outward shipment, and Mizkan uses the
return container to transport its products. Both companies have reduced trash, and increased
the total modal shift percentage on this route from 10% to 40%, reducing CO2 emissions by
about 20% (March to July 2016). Two 31-foot containers (one is owned by AJINOMOTO
LOGISTICS CORPORATION) are reused for one return trip each day.
Rail Liner® 31-foot container for rail shipments
Integrated folding wing design speeds up loading by
allowing open access for full length
Freight transport system
Ajinomoto West Japan distribution center (Hyogo)
❹ Ajinomoto products
❺
Repositioning
Ajinomoto Kuki distribution center (Saitama)
❶ Ajinomoto products
Ajinomoto products
JR Osaka freight
terminal station
❸ Rail transport
JR Ajikawaguchi
terminal station
❼ Rail transport
❻ Mizkan products
Mizkan Kansai No. 2 distribution center (Hyogo)
Ajinomoto Group Sustainability Data Book 2016
Mizkan products
JR Utsunomiya
freight terminal
station
❷ Loading center
(Tochigi)
❽ Mizkan products
❾ Repositioning
Mizkan Kanto distribution center
(Tochigi)
The Environment
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