KAIKAKU 2019 for NEXT100
In September 2017, the Yamato Group announced its new medium-term management plan called KAIKAKU 2019 for NEXT100 (KAIKAKU 2019).
In November 2019, we will celebrate our 100th anniversary. To achieve sustainable growth beyond this milestone, we determined there is a need to steadily implement fundamental structural reforms aimed at the next 100 years, instead of just responding to the environmental changes in front of us.
We also took this opportunity to establish a new long-term vision targeting the year 2025 and decided to embark on the new three-year medium-term management plan called KAIKAKU 2019 that focuses management's attention on working style reform.
We will now reinforce our management foundation using the three reforms of Structural Reform in the Delivery Business, Reform of Revenue and Business Structure Geared to Achieving Discrete Growth, and Reform of Group Management Structure Geared to Achieving Sustainable Growth, with a focus on working style reforms. At the same time, at the foundation of these efforts stands our response to digital innovation and strengthening governance.
Since launching TA-Q-BIN services, we have grown by creating a number of innovations in the world and providing value to society. We will steadily implement KAIKAKU 2019 with the goal of always meeting the expectations of customers and society and identifying new needs created from changes in the time period to create valuable services that can address these needs over the next 100 years.
Promoting Working Style Reforms Across the Entire Group
KAIKAKU 2019 considers the creation of workplaces where the employees underpinning the Yamato Group's services can work with a sense of pride, motivation and passion on a daily basis as one of the company's most important issues.
This is because we believe establishing safe and comfortable workplaces for employees who are the greatest capital of the Yamato Group is essential in our efforts to provide value to society and grow as a company well into the future.
In February 2017, Yamato Transport established the Working Style Reform Office and other Group companies set up Working Style Creation Committees, signaling the start of Group-wide efforts toward working style reform. Among these efforts, we focused particularly on improving labor management by streamlining management approaches to working hours and increasing the number of managers. At the same time, we have made changes to our services, including changing delivery time slots for TA-Q-BIN services and shortening the hours of parcel re-deliveries, among others, which have helped to steadily reduce the burden placed on frontline employees. These measures are moving us toward the ideal work environment, including ensuring sales drivers are able to take breaks.
The aim of working style reform is to increase comfort while at the same time boosting motivation. Improvements in the work environment also require employees to change the way they think about work. As part of our efforts to transform the way employees think, we have expanded opportunities for dialogue between management and frontline employees. By fostering employee understanding in the direction of the Group, including what the company is thinking, doing, and aiming for in terms of working style reform, we have been able to see real change in the way employees think.
By further pushing ahead with working style reform, we will make employees more comfortable and motivated, and reinforce inclusive management, the driving force behind corporate competitiveness.
Solving Social Issues Using Our Real Logistics Network
Today, Japan faces a number of social issues. The quality of services available to residents is deteriorating due to the fiscal situation of local governments, depopulation and a growing population of elderly, while in some cases these services can no longer be maintained. Japan also faces growing disparities between cities and rural areas along with the decline of regional industries.
Given this situation, we are focusing on Project G (Government), which aims to contribute to solutions to social issues by partnering with local governments and others. For example, Project G includes watch-over support services for the elderly where sales drivers regularly check on elderly community members living alone, and support for expanding sales channels of specialty products in regions where the decline of local industries is an issue. In addition, we also have combined passenger-cargo operations where parcels are loaded onto scheduled buses or railways to transport passengers and TA-Q-BIN parcels. This unique initiative is helping to maintain transportation networks and promote economic revitalization in depopulation areas, as well as reduce CO2 emissions.
The basis of these initiatives is the connections built by the Yamato Group with its customers through its TA-Q-BIN services. Harnessing this real logistics network, we will combine information and demands to build new platforms that address a host of needs and issues in the world facing consumers, companies and society.
The Yamato Group stands committed to creating shared value (CSV) where we improve our own economic competitiveness while solving issues facing society. We believe there will be a mountain of serious issues facing society over the next 100 years due to changes in the environment and social structure. The Yamato Group will aim for the sustainable growth of society and companies through CSV closely in tune with the reality of society.
Moving Toward the Global Standard of CSR Based on Our Corporate Philosophy
The Yamato Group's CSR entails becoming a company most loved and trusted by society by achieving the Yamato Group Corporate Philosophy comprising our management philosophy, corporate stance, and employee code of conduct, rooted closely on company precepts. For this reason, we are promoting CSR initiatives in the main fields of safety, environment and society, given the nature of the Yamato Group's business and our impacts on society.
The premise of CSR is correctly understanding the impacts business activities have on society and building more positive relationships between the company and society. This requires various forms of engagement with stakeholders. We are committed to listening intently to the voices of customers, employees and shareholders.
In addition, we recognize that complying with the rules and norms of the regions where we operate is an important duty of any company. As we globalize our business operations, we decided to become a signatory of the UN Global Compact in April 2014. We endorse the 10 principles in the four areas of human rights, labor, environment, and anti-corruption, and we manage our operations closely in tune with these principles.
However, the world has changed since then, with the adoption of the Paris Agreement and Sustainable Development Goals (SDGs) in 2015. The Yamato Group now must speed up its efforts to resolve social issues facing the entire world. Toward this end, we are reinforcing our CSR framework for compliance with global standards, which involved reviewing once again the material issues facing the Group.
I would like to take this opportunity to express our deepest regrets for the inappropriate billing practices at Yamato Home Convenience Co., Ltd. involving moving services provided to employees of corporate clients. To prevent this from ever happening again, as President I will take the lead in ushering in governance reforms across the Yamato Group. I will make doubly sure that each and every employee of the Yamato Group takes action to achieving our management philosophy with a high degree of ethics. This will ensure that we can always be a company trusted by customers and stakeholders.
We evaluate corporate value not only financially, but also in terms of customer satisfaction, social satisfaction, employee satisfaction and shareholder satisfaction. I am convinced that elevating corporate value both financially and non-financially will result in the sustainable growth of the Yamato Group. Your continued support is greatly appreciated.
Representative Director, Executive Officer and President