Risk of Delivery Constraints Due to the 2024 Logistics Problem
First written in FY2023. 3 of 6 entries say "Worsened", first in FY2025. Latest entry: FY2026.
Nihon Shokuhin Kako moved to the "Worse" side of this theme in 2025, 1 year after the typical company in this theme (2024).
The whole theme swung hardest in 2024: 10 of 30 companies on the "Worse" side.
3 other companies' latest entry also says "Worsened".
- FY2026WorsenedAnnual report
「Following amendments to the Act on the Promotion of Efficient Physical Distribution, from fiscal 2026, shippers handling cargo above a specified volume will be designated as specified business operators and will be required to appoint a logistics management officer and formulate and implement medium- to long-term plans covering improvements in loading efficiency and reductions in waiting and cargo-handling times, among other matters.」
Legal measures relating to the 2024 Logistics Problem will become more specific from fiscal 2026 as obligations applicable to specified business operators, expanding the scope of the risks and required responses. - FY2025WorsenedAnnual report
「Part of the Act on the Promotion of Distribution Efficiency took effect on 1 April 2025, requiring all shippers to make efforts to improve logistics efficiency. The company expects this to make product transportation increasingly difficult under its existing transportation structure.」
In addition to the 2024 logistics problem, new legal compliance obligations have arisen, increasing the difficulty of maintaining existing transportation arrangements and the risk of higher costs. - FY2024RestatedAnnual report
「The company manufactures its products at two locations, an eastern site in the Tokai region, in Fuji, Shizuoka Prefecture, and a western site in the Chugoku region, in Kurashiki, Okayama Prefecture. This gives it a relatively advantageous location in terms of transportation distances to major consumption areas. However, as the 2024 Logistics Problem further tightens restrictions on drivers' working hours, various reviews will be necessary, and in some cases it may become difficult to maintain stable deliveries or lead to substantial cost increases.」
Regarding the 2024 Logistics Problem, the company continues to describe its two-site eastern and western operating structure as a mitigating factor, while also disclosing the potential for difficulty maintaining stable deliveries and substantial cost increases. - FY2023First statedAnnual report
「The Act on the Arrangement of Related Acts to Promote Work Style Reform, enacted in 2018, began applying to the logistics industry in April 2024. If the 2024 Logistics Problem prevents the company from delivering its products to customers as before, this could affect transactions and adversely affect the company's operating results, financial position and cash flows.」
The company newly identifies the risk that deliveries may no longer be made as before following the application of the relevant legislation to the logistics industry from April 2024 as a key risk. Its responses include sharing information with logistics providers, reviewing transportation terms and preparing its delivery operations structure.