Stable supply through demand forecasting and additional production

「販売費及び一般管理費につきましては、物流経費の減少などにより前年同期を下回りました。主に、配送体制の適正化を進めたことによるものです。」

「As we have moved operations from distribution centers and shipping centers that were previously leased to company-owned distribution centers, logistics costs are expected to decline going forward.」

「Partial operations began at the Fukuoka Distribution Center, with a total floor area of 66,566 tsubo, in May. As the development of the optimal placement and functional consolidation of distribution center bases has largely progressed, the logistics expense ratio is expected to peak out during the consolidated fiscal year.」

「During the consolidated fiscal year, we began operations at the Satte and Nagoya distribution centers and partial operations at the Sendai Distribution Center, with cost reduction and productivity improvement as strategic objectives.」

「During the interim consolidated accounting period, the Sendai Distribution Center was completed in August 2024. To address driver labor shortages under the 2024 logistics problem, reduce environmental impact and improve logistics efficiency, we also began operating double-trailer trucks for long-distance transport between distribution centers.」

「For the domestic logistics network, we will focus on the optimal placement and functional consolidation of distribution center bases. Following the Ishikari Distribution Center in Ishikari, Hokkaido, and the Kobe Distribution Center in Kobe, Hyogo Prefecture, we will invest approximately ¥200 billion from fiscal 2024 onward to develop distribution centers at 6 locations nationwide, while achieving a low-cost structure and optimizing inventory levels and lead times.」

「In addition to expanding our domestic container transport network using company-owned vehicles and our company-owned logistics network responsible for last-mile delivery, we are also implementing measures to address the so-called “2024 problem” by combining relay transport, modal shifts, a review of delivery frequency, and changes to loading and unloading times. During the 3rd quarter cumulative consolidated period, construction began on the Fukuoka Distribution Center in September 2023, and the Nagoya Distribution Center was completed in November 2023.」

「We are promoting a logistics strategy project aimed at optimizing logistics functions across the entire supply chain, from upstream to downstream, and advancing the optimal placement and consolidation of functions at distribution center locations. During the cumulative second-quarter consolidated period, construction began on the Fukuoka distribution center in September 2023.」

「The Ishikari Distribution Center, the first phase of the logistics strategy project aimed at optimizing the logistics function as a whole, was completed in May 2022, and product supply within Hokkaido began in September. The Kobe Distribution Center was completed in November and is scheduled to begin operations in March 2023. Construction is also under way on the Nagoya Distribution Center, which began in July, and the Satte Distribution Center, which began in August, both of which are scheduled to begin operations in the following fiscal year or later.」

「The Ishikari Distribution Center, the first phase of the logistics strategy project, was completed in May 2022, and product supply within Hokkaido will begin in September. Construction also began on the Nagoya Distribution Center in July and the Satte Distribution Center in August, both of which are scheduled to begin operations in the following fiscal year or later.」

「Regarding selling, general and administrative expenses, we worked to control costs by reducing shipping and delivery expenses through more efficient logistics.」

「For the domestic logistics network, we will focus on the optimal placement and functional consolidation of distribution center bases, with operations, the development of shipping and delivery networks, and business process reform as key initiatives, and will make large-scale strategic investments of more than ¥200 billion over 5 years as measures for the future.」

「Our logistics measures center on the optimal placement and functional consolidation of distribution center bases. We launched a logistics strategy project in the previous fiscal year involving large-scale investment of more than ¥200 billion through 2025. Following the start of construction of the Ishikari Distribution Center as the first step, we also began construction of the new Kobe Distribution Center as a base for wide-area distribution in the Kansai region.」

「Operating profit is progressing favorably against the initial plan, partly because we restrained selling, general and administrative expenses, including shipping and delivery expenses and outsourced-services expenses, through more efficient logistics and the in-house handling of operations.」

「The Nitori Group has continued operating while implementing measures to prevent the spread of infection, including maintaining social distancing, strengthening the disinfection and cleaning of store facilities, and encouraging handwashing and hand sanitization, in order to fulfill its role as social infrastructure supporting the stable supply of household goods.」

「We launched a project aimed at making the supply of products from distribution centers to customers less expensive and more convenient. Going forward, by establishing new company-owned distribution centers, we aim to enhance the existing logistics network, keep inventory transfers such as long-distance transport to the minimum necessary, reduce rent by bringing distribution centers in-house, and further improve operational efficiency through the introduction of material-handling equipment.」

「As part of our logistics initiatives, we began full-scale operations of swap-body container transport as a measure to improve working conditions. In addition to the route already operating between the Kanto Distribution Center in Shiraoka, Saitama Prefecture, and the Kansai Distribution Center in Kobe, Hyogo Prefecture, we began operations between the Kansai Distribution Center and the Kyushu Distribution Center in Sasaguri, Fukuoka Prefecture, and the Okawa Cross-Dock Center in Okawa, Fukuoka Prefecture. Separating transport operations from loading and unloading work has made it possible to reduce working hours and ease the burden on drivers.」

「New fabric plant; site area: 96,493 m²; 6,400; 491; July 2019; August 2020」

「New fabric plant; site area: 96,493 m²; 6,400; 491; July 2019; August 2020」

「We will work to establish a more competitive and stable product supply system.」

「In October 2018, we newly established the Taicang Distribution Center in Taicang, Jiangsu Province, China, on a site of approximately 40,000 tsubo, making it the largest facility in our group. By using it not only for domestic distribution in China but also as a logistics hub linking production and procurement plants throughout Asia with Japan, we are establishing a stable product supply system and promoting global business growth. In Japan, to handle the increase in logistics volumes resulting from higher sales and further improve logistics quality, we opened the Sendai Distribution Center in Miyagi Prefecture and the Goka Distribution Center in Ibaraki Prefecture in November 2018.」

「In logistics, we began operating the Taicang Distribution Center in China, our group's largest facility, in October. Through this, we aim to strengthen our global product supply bases and further improve and stabilize logistics efficiency. In Japan, to handle the increase in logistics volumes resulting from higher sales, we opened the Goka Distribution Center in Ibaraki Prefecture to supply stores throughout eastern Japan and the Sendai Distribution Center in Miyagi Prefecture to supply the Tohoku and Hokuriku regions, and are working to further improve logistics quality.」

「As part of our logistics initiatives, we provided free meals through food trucks and boxed-meal distribution to temporary and part-time employees in order to improve working conditions and secure personnel at logistics facilities during the spring peak season. This helped curb staff shortages, and the increase in temporary employees who continued working also reduced the training burden, resulting in higher productivity and stable operations during the busy season.」

「Nagoya Distribution Center (provisional name), Tobishima, Aichi Prefecture; new distribution center; site area: 57,290 m²」

「The N COOL series also benefited from rapid inventory adjustments in response to temperatures and sales trends, and sales remained strong.」

「Through these measures, we aim to strengthen our product supply bases and further improve and stabilize logistics efficiency.」

「In addition, sales increased substantially as a result of expanding the range of products handled, establishing a stable product supply system, and the promotional effects of various media, including television and magazines.」

「We achieved a stable supply of products during the spring new-life season by establishing a system that enables rapid additional production alongside planned production based on demand forecasts, and by reviewing delivery frequency.」