Oct. 22, 2020
Sumisho Global Logistics Co., Ltd.
Business Partnership with Logistics Fulfilment Platform Provider OPENLOGIEnhancing Strategic Initiatives in Rapidly Growing EC and Mail Order Markets
Sumitomo Corporation (Head Office: Chiyoda-ku, Tokyo; Representative Director, President and Chief Executive Officer: Masayuki Hyodo) and Sumisho Global Logistics Co., Ltd. (Head Office: Chiyoda-ku, Tokyo; President: Katsuya Okihiro; hereinafter, “SGL”) have signed a partnership agreement with OPENLOGI Inc. (Head Office: Toshima-ku, Tokyo; President and Chief Executive Officer: Hidetsugu Ito), which provides a logistics fulfilment1 platform, to collaborate in logistics for electronic commerce (EC) and mail order. In conjunction with the agreement, Sumitomo Corporation accepted a third-party allocation of shares from OPENLOGI.
The EC market has rapidly grown both in and outside Japan as the barriers to establishing and operating stores have been lowered with the emergence of EC platformers2. Additionally, the market is likely to expand dramatically with lifestyle changes due to the COVID-19 pandemic. Meanwhile, the business environment surrounding the logistic industry is becoming increasingly severe with labor shortages and rising labor cost at warehouses and delivery companies. Building an efficient and stable logistic system is a pressing issue.
OPENLOGI provides logistics services with EC businesses via a platform. Through cooperation with major EC platformers and numerous warehouse companies and delivery companies, OPENLOGI has grown by unfailingly meeting the needs of EC businesses, such as quickly starting sales and a pay-per-use system that is free from initial cost. Having built a network with logistics companies based on standard service specifications, OPENLOGI provides logistics fulfilment service that requires neither fixed costs nor an individual inquiry and quote. More than 8,000 companies use the service of OPELOGI, which has partnerships with over 40 logistics companies across Japan.
Sumitomo Corporation operates logistics facilities, named SOSiLA, that are located close to consumers and are highly convenient for deliveries. SGL, as the main player in the industry, provides custom-made logistics functions3 for large-scale EC businesses. Through the agreement, Sumitomo Corporation and SGL will use and improve OPENLOGI’s knowledge of EC logistics and networks with partner warehouses to provide logistics functions according to the growth of EC businesses, with the goal of expanding their business portfolios and gaining new customers. The two companies will aggressively contribute toward solving issues in Japan’s logistics industry while responding to lifestyle changes.
1 Logistics fulfilment: A series of operations at an EC site, from receiving a product order to shipment and completion of delivery
2 EC platformers: Business operators that support businesses in establishing and operating their own EC sites. Users can start EC business anytime and anywhere without using a conventional, major marketplace.
3 Custom-made logistics functions: Logistics services that provide product quality inspection, distribution processing and so on according to the needs of EC businesses, in addition to receipt, storage and shipment of goods.
■Company profile (OPENLOGI)
|Company name||:||OPENLOGI Inc.|
|Address||:||Ichigo Higashi Ikebukuro Building F9, 1-34-5 Higashi-ikebukuro, Toshima-ku, Tokyo|
|Established||:||December 2013 (Started services in October 2014)|
|Representative||:||Hidetsugu Ito, Representative Director and President, CEO|
|Business description||:||Operation of a logistics fulfilment platform, OPENLOGI, which requires no fixed costs and can be used on a pay-per-use basis
The number of user companies totals more than 8,000 and the number of partner logistics companies totals more than 40 (as of the end of September 2020).
|Vision||:||Innovate the flow of goods, driven by data, using technology and building a network of silo-based logistics|
Sumitomo Corporation’s Material Issues
Sumitomo Corporation Group positions “Six Material Issues to Achieve Sustainable Growth with Society” as an important factor in developing business strategies and in the decision-making process for individual businesses. Going forward, we will pursue sustainable growth by resolving these issues through our business activities. This project especially contributes to the following material Issues.