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.

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■Company profile (OPENLOGI)

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.

Achieving Harmony with the Global Environment

To realize recycling-oriented society and mitigate climate change, we are working to establish frameworks for the efficient use of resources and stable supply of renewable energy. In doing so, we will achieve growth in harmony with the global environment.

Contributing to the Development of Local Communities and Industries

We steadily procure and provide goods and services to meet the needs of people in various countries and regions and contribute to developing industrial platforms. Through these means, we will create a virtuous cycle in which we can grow and develop together with local communities.

Establishing a Foundation for Comfortable and Enriching Lifestyles

We strive to realize more convenient and comfortable lifestyles by providing goods and services for daily use while also responding to needs for high-quality lifestyles in order to support the physical and mental health of people around the world.

Providing Diverse “Accessibility”

We provide diverse accessibility to open up the possibility of creating new value. To this end, we will improve mobility for safe and efficient flow of people and goods, and expand the network connecting information and finance.

Developing Human Resources and Promoting Diversity

In order to create new value and innovation by allowing our diverse personnel to fully exercise their abilities in a variety of fields, we will promote the development and empowerment of human resources, which represent our most important management resources.

Enhancing Governance

We will enhance our ability to draft and implement strategies for achieving sustainable growth and to provide appropriate supervision of these strategies, all while maintaining transparency. In this manner, we will improve management efficiency and maintain sound management.