Improving the Efficiency and Profitability of Logistics Outsourcing Services

「We are shifting toward business operations that prioritize securing contribution margins rather than merely expanding sales scale. Specifically, we are working to strengthen our ability to absorb fixed costs by enhancing profitability management by project, reviewing the cost structure, and improving utilization rates.」

「The company continued to reduce fixed costs such as rent by closing and consolidating fulfillment centers, optimize its staffing structure, and review various expenses, including operating expenses, in an effort to improve its cost structure.」

「The company pursued expense-reduction measures, including cutting personnel costs through staff optimization and reviewing related expenses, bringing selling, general and administrative expenses to ¥336.019 million, down 1.1% year on year.」

「During the fiscal year, the company closed some fulfillment-center facilities, transferred contracts, and terminated contracts with clients in connection with those actions in its BPO services business. As a result, revenue declined to ¥10.259178 billion, down ¥2.610321 billion from the previous fiscal year, while gross profit increased to ¥563.128 million, up ¥254.357 million.」

「Measures to improve the revenue margin by reviewing existing customers and reduce rent by decreasing the floor area of fulfillment centers proved effective, resulting in a substantial improvement in gross profit to ¥355.624 million, up 69.0% year on year. The company also pursued expense reductions, including cuts in personnel and recruitment costs through staff optimization and a review of various operating expenses, bringing selling, general and administrative expenses to ¥339.691 million, down 29.5% year on year.」

「① Productivity improvements: The company will pursue higher utilization of leased floor space to achieve highly efficient operations. It will shift the fulfillment-center operating model from a storage-based business to a shipping-based business and improve profitability.／② Optimization of fixed costs: In addition to pursuing higher utilization rates at existing fulfillment centers, the company will maintain a constant focus on reducing fixed costs and establish a business model with high revenue per tsubo.／③ Promotion of automation: To further increase existing shipping capacity, the company will introduce automated warehouse systems at each fulfillment center and establish a business model with a high number of shipments per tsubo.」

「Revenue reached a record high in terms of shipment volume in December 2023, owing to operational improvements and a higher utilization rate per tsubo.」

「Selling, general and administrative expenses totaled ¥481.571 million, up 21.1% year on year, due to higher recruitment and personnel expenses resulting from proactive staff expansion to strengthen the organizational structure, as well as higher system-related costs, including the introduction of a sales support system to improve operational efficiency.」

「Selling, general and administrative expenses totaled ¥229.155 million, up 21.2% year on year, due to increases in recruitment and personnel expenses resulting from the proactive expansion of staff to strengthen the organization, as well as higher system-related costs associated with introducing a sales support system to improve operational efficiency.」

「In this business environment, the company’s initiatives during the cumulative third-quarter period included continuing efforts to achieve strong sales growth, acquire new customers and expand its customer base by strengthening sales capabilities, strengthen FC operations through productivity improvements and other measures, and develop personnel.」

「In this business environment, the company aims to achieve strong sales growth. To do so, it continues to focus on acquiring new customers and expanding its customer base by strengthening sales capabilities, strengthening FC operations through productivity improvements and other measures, and developing personnel.」

「In this business environment, the company aims to achieve strong sales growth. To do so, it continues to focus on acquiring new customers and expanding its customer base by strengthening sales capabilities, strengthening FC operations through productivity improvements and other measures, and developing personnel.」

「The company will continue working to expand revenue and ordinary profit while reducing costs and expenses.」

「In terms of profit, although the company worked to secure earnings through expense controls, it was unable to absorb the costs of opening the new Saitama-Soka fulfillment center and higher rent, as well as increases in labor costs and temporary staffing expenses associated with preparations for launching new customers. As a result, the company posted an operating loss of ¥63.799 million (operating profit of ¥193.767 million in the same quarter of the previous year), an ordinary loss of ¥57.611 million (ordinary profit of ¥209.035 million), and a quarterly net loss of ¥142.015 million (quarterly net profit of ¥129.062 million).」

「The company believes that expanding its business requires responding to the diversification of hiring methods, developing training systems, and achieving greater systematic efficiency through the introduction of advanced technologies from Japan and overseas. By strengthening these areas, it will advance efficiency improvements in its logistics outsourcing services, improve profitability, and actively work to strengthen its financial position.」