#Japan #Tokyo #beverage industry #GHG Reduction #Logistics Challenges

Collaborative Efforts in the Beverage Industry for Logistics Improvement

In November last year, the five leading beverage companies in Japan—Asahi Soft Drinks, Ito En, Kirin Beverage, Coca-Cola Bottlers Japan, and Suntory Food International—officially established the 'Social Issues Response Research Group.' This initiative is a response not only to the urgent challenges posed by the 2024 Logistics Problem but also to broader social issues like greenhouse gas (GHG) emissions reduction and food loss.

The 2024 Logistics Problem stems from a growing shortage of truck drivers, which has created severe challenges in maintaining the delivery of products to customers. Recognizing these issues, the companies have been engaging in discussions long before the formal announcement of the study group and have initiated improvements to tackle these challenges head-on.

Reducing Waiting Times and Handling Tasks

Central to their strategy is the reduction of waiting times and the incidence of handling tasks. For example, they aimed to decrease truck driver waiting times by an average of approximately 40% and successfully reduced handling tasks related to loading, unloading, quality checks, and picking by about 30% from March 2024 to February 2025.

Collaborative Transportation Initiatives

To enhance logistical efficiency and further decrease GHG emissions, the beverage companies have strengthened their partnerships not only within their sector but also across different industries by collaborating on transportation initiatives. For instance:

• - July 2024: Ito En teams up with Nissin Foods for round-trip transportation.
• - July 2024: Suntory Group partners with Daikin Industries for similar efforts.
• - August 2024: Coca-Cola Bottlers Japan and Ito En undertake joint deliveries.
• - October 2024: Collaborative transport between Coca-Cola Bottlers Japan and Koikeya kicks in.
• - November 2024: Asahi Soft Drinks and Ito En initiate round-trip deliveries.
• - November 2024: Suntory Group and Sapporo Group also join forces for round trips.
• - November 2024: Ito En collaborates with Zen-Noh Group for logistical enhancement.
• - February 2025: Kirin Beverage and Kao will begin joint delivery practices.

Engaging with Broader Stakeholders

The Social Issues Response Research Group is committed to actively engaging with government ministries and other logistics study groups to exchange information and discuss solutions to challenging social issues that cannot be managed by individual companies alone. The group's discussions extend beyond the immediate challenges of waiting times and handling tasks to a more holistic view of addressing additional logistical concerns. They are also exploring solutions from the perspective of packaging materials, particularly focusing on beverage containers, to further contribute to alleviating social challenges.

Commitment to Sustainability

The five beverage companies remain dedicated to responding to consumer needs while ensuring environmental considerations and fulfilling their social responsibilities. Their business activities aim not only to maintain market presence but also to contribute meaningfully to the realization of a sustainable society.

As they journey towards 2024 and beyond, these companies will continue to engage in discussions and research addressing the multifaceted challenges within the logistics sector and the broader social responsibilities they hold.