3PL and Megacarrier NYK Logistics(Australia) Pty Ltd

NYK Logistics is a subsidiary of the NYK Group, officially named NYK Line, a shipping company founded in Japan in 1885, whose international network has now grown to make it a world-class end-to-end 3PL (third-party logistics provider).
A 3PL generally provides warehouse and distribution services for the products or materials of its clients. In such a competitive field a 3PL must maintain an edge by continually adjusting their systems to suit market conditions, demand based on seasonal factors being one example, and by employing state-of-the-art information management and security systems to correctly maintain and safeguard their clients' freight.

NYK Logistics owns 2,110,000 square metres of warehouse space and employs approximately 33,000 logistics workers in 333 logistics centres across 33 countries. It boasts 2500 clients globally and a group turnover that exceeds $US17 billion. NYK Line has an extensive history dealing with Australia; their first ship routing was established in 1896. Their Australian branch was established in 1988 and after a period of joint venture and further name changes it became a fully NYK Line-owned subsidiary and changed its name to NYK Logistics (Australia) Pty Ltd in 2003.

NYK Logistics' Australian head office is in Wetherill Park in Sydney alongside a 22,000 square metre warehouse facility which employs approximately 90 staff. With primary warehouse facilities in Sydney, Melbourne, Adelaide, Perth and Brisbane, and satellite operations in Townsville, Newcastle and Moss Vale, NYK Logistics Australia commands a total storage space of 100,000 square metres along with a national fleet of more than 140 vehicles.

The business specialises in storing and distributing electronics, medical goods and high-profile retail, in which capacity it deals with many major electronics companies.

Its services also extend to spare parts and technical reworks, ocean transportation, freight forwarding, customs clearance, reverse logistics, logistics consultancy, 4PL services (refined 3PL systems) and even luxury cruises.

One particular trademark of NYK Logistics' operations is the application of their "kaizen" program. Kaizen is a Japanese term which means "continuous improvement" and it takes the form of continual monitoring and streamlining of operations at all levels. One characteristic of the program is that, because NYK understand their clients' needs, it works with the opposite logic by eliminating what is unnecessary or what the client does not require, thus increasing productivity and financial turnover.

NYK Logistics tailors its services to its clients' requirements and provides integrated solutions that are flexible enough to respond to fluctuations in the supply chain. In this way it supplies the most efficient and cost-effective solutions for its clients' delivery and transport needs. NYK Logistics Australia is a true "one-stop shop for worldwide logistics requirements".

For further information about NYK Logistics please visit...
http://www.nyklogistics.com/

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Who's the boss? Interview: Teruhisa Fukuda Managing Director NYK Logistics (Australia) Pty Ltd

jstyle: Could you describe your company's main line of business and any particular achievements by it?

Mr Fukuda: We deal in general logistics, physical distribution, warehousing, freight transport, removals and forwarding. In 2004 we were the first Australian company to successively achieve the four industry accreditations of ISO 9001:2000-Quality Management (for excellence in service), ISO 14001-Environmental (for efforts towards minimising environmental impact), AS 4360-Risk Management (for excellence in security systems and contingency plans) and AS 4801-Occupational Health and Safety (for excellence in workplace conditions).

In a contract distribution survey published by Supply Chain Review in November 2006, we were also placed in the national top 10 total warehouse space providers with our combined warehouse space of 100,000 square metres.

What is your company's forte?

We specialise in providing general customer-specific warehousing services all over Australia. We are meticulous in our client support and, with our integrated shipping and aviation network, we can provide the most efficient and cost-effective logistics services and advice.

How does the Australian market figure in the NYK corporation's business strategies?

We consider the Australian market, being one of the larger markets in the Pacific Rim, to be very important in terms of shipping logistics and a vital contributor to our Asian and Pacific operations.

Is there anything notably characteristic about the Australian market?

Naturally it is not to the same scale as the European or American markets but I think it's more stable. Because so much of Australia's population is concentrated in coastal areas and there are such great distances between major cities, structuring efficient logistics is extremely difficult. But successfully meeting the challenges these problems present is why we set up here in the first place and why we have thrived.

Do you have any particular strategies or plans?

To address the needs of this unique market we initially set up our main two warehouses in Sydney but then moved to placing satellite warehouses in all the capital cities with major business potential. We then set about linking them with the most efficient transport system possible. To remain active in this market we will need to continually monitor and improve this network and its various control systems.We plan to expand our operations, while balancing the income and expenditure encountered when dealing with seasonal products and materials. Dealing with a seasonal product or material often means simultaneously storing off-season items.

Last year saw a merger of two big carrier names, which means the industry is becoming more of an oligopoly. There has been a lot of resistance against this but we will continue working towards maintaining our name and reputation in the industry.

In the coming years we will also decide how to best address prospective market activity in Queensland and Western Australia and careful consideration and business decisions will also need to be made into how to better deal with seasonal products, materials and foodstuffs, one of Australia's main types of exports.