The distribution source temporarily stores the packages in the warehouse and then delivers them to the delivery location, with this cost of 3 vehicles was incurred for delivery.
Even if physical distribution costs are reduced to the maximum, there are limitations due to the relationship with the number of moving trucks.
This system increases efficiency by eliminating redundant transportation by periodically running vehicles to multiple delivery destinations.
We at Daisei W&T accept packages and consolidate the packages to trucks headed for the same delivery destination similar to people traveling together in buses, this reduces wastage of time and cost.
We are able to realize the speed, high quality, and low cost of the just in time system by centralized online management.
Our core business now focuses on chemical products such as synthetic resins and synthetic rubber. We first began handling them in the latter half of the 1970s, as raw materials for automobile components.
In the Chubu region, the major consumers are Toyota Motor Corporation and various automobile parts makers. When the Toyota manufacturing process began demanding JIT delivery, distribution companies were faced with the problem of making frequent, small-sized deliveries.
However, our former CEO Kato determined that JIT delivery would become the manufacturing norm, and pushed aggressively to take on JIT delivery contracts.
As JIT deliveries increased, problems began to emerge. For example, receiving processing times increased as multiple trucks from various chemicals manufacturers caused congestion in the receiving bays.
The receivers (or “Users”) began to ask if there was any way to reduce the delivery vehicle traffic. At the same time, we took a hint from the distribution of mass-market home appliances, which we were handling at the time, and proposed a “Shared bus system”, in which products of multiple manufacturers are loaded onto a single delivery vehicle.
Thus was born our consolidated distribution system, under the service system name “JUST-BIN”.
Next, we proposed our bus system to various chemical manufacturers, and set up a low cost distribution system that starts by collecting many chemical products, chemical products are collected from many manufacturers, this increases distribution loading efficiency of each delivery and lowers the logistics cost.
In addition, receivers of the packages after experiencing the performance of just-in-time deliveries (hereinafter referred to as JIT delivery) and the high quality have selected us as their logistics service partners, and now we have 430 shippers and 5,300 delivery destinations.