**Tokyo**: DHL Supply Chain has entered a five-year partnership with Sanyo Chemical Industries to enhance logistics efficiency and sustainability in Japan. The agreement will see DHL manage Sanyo’s domestic logistics operations, addressing challenges like labour shortages while fostering innovation and collaboration.
Japan’s logistics industry is poised for notable advancements as DHL Supply Chain, a prominent player on the global logistics stage, has announced a significant partnership with Sanyo Chemical Industries. This five-year Lead Logistics Partner (LLP) agreement, set to enhance efficiency and sustainability in logistics operations, positions DHL to take over the domestic logistics functions previously managed by Sanyo Chemical’s own logistics subsidiary, Sanyo Chemical Logistics.
The agreement encompasses various services, including inbound logistics, storage, outbound logistics, value-added services, and transport management, to be implemented across five in-plant logistics sites located in Nagoya, Kinuura, Kashima, Kyoto, and Kawasaki. DHL Supply Chain aims to establish an integrated supply chain management approach while introducing data management and innovative logistical solutions designed to optimise operations on both physical and digital fronts.
Addressing current challenges in the Japanese logistics sector, such as labour shortages and constraints on transportation capacity, this collaboration is expected to lay a robust groundwork for sustainable logistics initiatives. By embracing this partnership, Sanyo Chemical Industries aims to achieve cost reductions through enhanced warehousing strategies, improvements in transportation processes, and the consolidation of its domestic delivery network alongside standardised operational approaches.
DHL Supply Chain plans to leverage its digital technologies, including tools like ‘MySupplyChain’, which offers near real-time visibility into warehouse management and transportation status, to boost operational efficiency. Additionally, the partnership is set to strengthen logistics networks through collaboration with DHL’s other clients and active participation in a government-led Chemicals Working Group, aimed at enhancing logistics service reliability while tackling challenges such as driver shortages.
Jérôme Gillet, President and Representative Director, CEO for DHL Supply Chain in Japan and Korea, expressed optimism about the collaboration, stating, “Through our collaboration with them (Sanyo Chemical Industries), we will develop a stable logistics structure and provide innovative solutions to enhance efficiency and quality.”
Akinori Higuchi, Representative Director, President, and CEO of Sanyo Chemical Industries, emphasised the proactive steps the company is taking towards improving logistics efficiency amid labour shortages, saying, “With its extensive experience, global resources, and comprehensive LLP services that strategically manage end-to-end logistics, DHL Supply Chain is the best partner for us to drive logistics transformation.” He added that the integration of DHL’s global logistics standards is expected to result in significantly enhanced operations.
As part of the agreement, about 30 employees from Sanyo Chemical Logistics are anticipated to transition to DHL by October 2025, facilitating skill-sharing that will support core business functions and foster career growth within the logistics sector. Both companies share a vision for collaboration, aiming to achieve shared objectives as they work closely together in what has been characterised as a unified team effort.
Source: Noah Wire Services
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