Logistics

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Basic Policy

The Otsuka group handles products that relate directly to human life, including pharmaceuticals, foods and beverages. As such, we ensure the rigorous control and maintenance of product quality throughout distribution, and actively take measures to ensure stable supply in the event of a natural disaster or other emergency situation. The group also promotes environmentally friendly logistics operations through measures such as reducing CO2 emissions.

Approach

The Otsuka group delivers products throughout Japan, mainly via group company Otsuka Warehouse. To ensure the control and maintenance of product quality, Otsuka Warehouse has set up the GDP* Promotion Office to facilitate appropriate logistics in accordance with the GDP guidelines for pharmaceuticals. We disseminate the principles of the GDP guidelines among personnel engaged in the manufacture and distribution of pharmaceuticals through training and drills on temperature control during shipping and storage, security and other quality management systems, document control, administration of outsourced processes, facility and equipment maintenance, storage and transport operations, assessment of supplier and customer eligibility, among others. In addition, we conduct regular training to ensure compliance with internal standards and procedures.
We also strive to standardize data management system specifications in order to facilitate collaboration and cooperation between shippers and logistics operators. Specifically, we are improving logistics quality by introducing IT systems for truck dispatch and vehicle monitoring, which enable better tracking of transport and delivery status.

Warehouse navigation system

Other initiatives include computerizing warehouse operations to reduce incorrect shipments and mispicks, thereby helping quality improvement through higher efficiency. The diverse assortment of shipping forms has been standardized and digitalized, with benefits that include lower mishandling rates when orders are changed.
Otsuka Warehouse is working to ensure stable supply by establishing distributed storage facilities across Japan to maintain adequate product stocks that reflect product characteristics. Furthermore, for pharmaceuticals, a framework for business continuity planning (BCP) has been established that ensures essential products can be delivered to where they are needed. In addition to securing stock, measures include developing an emergency response system for transporting products, for example registering vehicles for authorized access to restricted areas and exchanging MOUs with shippers, warehouse owners and other partners for cooperation in the transport of emergency relief supplies.

Among measures to reduce environmental impact, Otsuka Warehouse is moving forward with a modal shift to rail and sea transport, which have lower CO2 emission intensities. Use of a reservation system for booking access times when receiving and shipping at warehouses has reduced the average waiting time for drivers by more than half. Such measures contribute to reducing CO2 emissions throughout the industry. Furthermore, taking into account the optimal vehicles and routes for diverse products and transport destinations, the company is actively implementing joint logistics, which combines products from multiple companies in a single vehicle, thereby reducing the number of transport vehicles across society.

*GDP: Good Distribution Practice

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