Higher Outsourcing Costs and Delayed Deliveries Due to Shortages of Contractors and Drivers
First written in FY2018. 8 of 13 entries say "Worsened", first in FY2022. Latest entry: 2026-11-06.
Sg Holdings moved to the "Worse" side of this theme in 2022.
1 other company's latest entry also says "Worsened".
- FY2026MitigatedAnnual report
「The Company is also working to maintain and strengthen sustainable transportation and delivery infrastructure, including discussions with contractors through the Appropriate Transactions Promotion Association regarding appropriate rate revisions and other matters, and the development and provision of programs to help partner companies address management issues through ＳＤトランスライン株式会社, established in August 2025.」
As a response to contractor and partner risks, specific initiatives have been described through the Appropriate Transactions Promotion Association and management issue resolution programs provided by ＳＤトランスライン株式会社, established in August 2025. - FY2026-H1WorsenedAnnual report
「Regarding costs, the Company controls costs according to the number of items handled, but costs related to securing the resources required to provide sustainable and stable services, including higher outsourcing rates for partner companies since the beginning of the fiscal year, continue to trend upward.」
It is stated that, even after increasing outsourcing rates, costs to secure the resources required to maintain services continue to trend upward. - FY2024MitigatedAnnual report
「Against this backdrop, the Company is promoting the “SAGAWA Partner Program,” working to strengthen communication with contractors through the development of the SG Partner Mall and the establishment of consultation and notification functions on a portal site. The Company also discusses appropriate rate revisions and other matters with contractors through the Appropriate Transactions Promotion Association, established in fiscal 2023.」
In response to reliance on outsourcing and the risks of higher outsourcing costs and delivery delays, specific measures have been established to manage relationships and discuss rates with contractors through the partner program, portal site, consultation services and the Appropriate Transactions Promotion Association. - FY2023WorsenedAnnual report
「Approximately 70% of transportation services to individual homes, and most route-based operations, meaning long-distance transportation between logistics centers such as Tokyo and Osaka, are outsourced to external contractors. If outsourcing costs rise due to measures addressing the “2024 problem” and driver shortages, the Group's expenses may increase.」
In addition to the structure of outsourcing approximately 70% of transportation to individual homes, the risk of higher outsourcing costs due to the 2024 problem and driver shortages is specifically described. - FY2022WorsenedAnnual report
「Accordingly, approximately 70% of transportation services to individual homes, and most route-based operations, meaning long-distance transportation between logistics centers such as Tokyo and Osaka, are outsourced to external contractors.」
The proportion of transportation to individual homes outsourced to external contractors has been specified as approximately 70%, rather than the previous description of more than half, clearly indicating significant exposure to shortages of subcontractors and drivers. - FY2021RestatedAnnual report
「More than half of the transportation services to individual homes (to C), and most route-based operations, meaning long-distance transportation between logistics centers such as Tokyo and Osaka, are outsourced to external contractors.」
The structure of outsourcing more than half of transportation to individual homes and most route-based operations, together with the resulting risks of subcontractor shortages, higher outsourcing costs and quality issues, continues. - FY2018First statedAnnual report
「More than half of the transportation services to individual homes (to C) and most route-based operations are outsourced to external contractors.」
The Group's reliance on outsourced transportation is described, along with the possibility of long working hours, delivery delays and higher outsourcing costs due to shortages of subcontractors and drivers.