Three companies collaborate to reform logistics: Rohto Pharmaceutical, Milbon, and Haleon Japan begin joint delivery

Background

In the logistics industry, chronic labor shortages and long working hours for drivers pose challenges to the industry's overall sustainability. As a shipper, we have long strived to contribute to solving these challenges in the logistics industry and to deliver products to our customers more reliably. We have been working on efficient transportation, such as improving loading methods. However, due to constraints on pallet standards and product specifications, we faced challenges such as excess space during loading. Therefore, to further improve efficiency, we have established a joint transportation system in which products are consolidated with products from three companies that share common delivery routes. Through this system, we aim to maximize transportation efficiency and contribute to the sustainability of all parties involved in the supply chain, including reducing CO2 emissions and reforming drivers' working conditions.

Initiatives and their effects

Challenges and initiatives of each company before implementation

Our company: Products are transported from our manufacturing base, Ueno Techno Center, in Iga City, Mie Prefecture, to a warehouse operated by Toyo Warehouse in Sagamihara City, Kanagawa Prefecture. Depending on the product size specifications, it may be necessary to transport the products in flat stacks, resulting in wasted space during transport and making loading efficiency a challenge.

Milbon: Products are transported from the Yumegaoka Plant, a manufacturing base in Iga City, Mie Prefecture, to a warehouse in Kazo City, Saitama Prefecture. Challenges include limitations in optimizing loading efficiency and the risk of oversupply.

Haleon Japan: The company outsources the manufacturing of some of its products to a company based in Sagamihara City, Kanagawa Prefecture. Products produced by the outsourced manufacturer are transported from a warehouse operated by Toyo Warehouse in the same city to the company's own logistics center in Kazo City, Saitama Prefecture. Because products are transported flat due to their standard size, excess space is created during transport, making loading efficiency a challenge.

Joint delivery scheme

To overcome various constraints imposed by each company, such as pallet size, transport volume, and product safety issues, we conducted product selection, loading technology verification, and quality testing suitable for joint delivery. By connecting manufacturing sites and warehouses using a relay system, we maximized loading efficiency and established a system that allows for smooth operation even during long-distance transport, including driver switches.

[Figure] Joint delivery efforts by three companies

Specific effects *When joint delivery is implemented once a week

• Loading rate: 13.7% improvement (average 66.5% → 75.6%)
• Transportation efficiency: Reduction of 102 trucks/year (67.1%)
• Total transport distance: 15,428 km/year (38.6% reduction)
• CO 2 reduction: 13.3t-CO 2 / year (32.8%) reduction
• The above-mentioned transportation efficiency improvements resulted in an 18.4% cost reduction and a 19.2% improvement in the cost per trip. This also contributes to mutual assistance and improved employment conditions for drivers.

Future outlook

Currently, this scheme operates on a monthly basis, but we will increase it to a weekly basis to ensure regular and stable operation. Furthermore, we aim to expand our network of partner companies by leveraging the success stories and know-how gained from this initiative. We will also promote logistics DX, including the automation of time schedules, to further optimize loading rates and reduce manpower.
By expanding this initiative to upstream raw material and supply chain logistics, inbound logistics, and downstream sales logistics, we aim to contribute to improving the sustainability of the entire supply chain and addressing social and environmental challenges.

Regarding the companies that will be implementing joint delivery

Ueno Techno Center (Our factory)

The Ueno Techno Center, which began operations in 1999 and is now in its 26th year of operation, produces Rohto Pharmaceutical's flagship products, including eye drops such as V ROHTO PREMIUM, as well as over-the-counter medicines and skincare products such as Hada Labo Gokujun Hyaluronic Acid Lotion. It also functions as a mother factory, serving as a base for quality control and logistics.

• https://www.rohto.co.jp/company/location/domestic/

Yumegaoka Factory (Milbon)

The Yumegaoka Plant is located in Yumepolis Iga, a multi-functional city in Mie Prefecture, which is ideally situated for logistics to both eastern and western Japan. It is a core factory of the Milbon Group, housing not only manufacturing departments but also production management and production technology development functions.
The Yumegaoka Plant, comprised of the South Building which enables high-mix, low-volume production to meet ever-changing hair color needs, and the North Building which produces a variety of hair care products in a timely manner, is a production facility that prioritizes efficiency and quality.

• https://www.milbon.com/ja/rd/ps/yumegaoka_factory.html

Haleon Japan

Haleon Japan is the Japanese subsidiary of Haleon (headquartered in the UK), a global leader in the consumer health field. Based on trusted science, innovation, and a deep understanding of people, Haleon develops numerous brands and aims to realize its purpose of "Deliver better everyday health with humanity."
Haleon Japan distributes oral healthcare products such as "Sensodyne," "Camtect," "Polident," and "Poligrip," as well as over-the-counter (OTC) medications such as "Contac" and "Voltaren," in Japan.

• https://www.haleon.com/jp