The logical choice

Established in 1955, Yusen Logistics Co. Ltd is today a diversified global market leader in the field of logistics. With more than 22,000 employees worldwide at over 500 locations in 43 countries, not to mention 2.2 million square metres of warehousing space, in 2016 the business generated $4,17 billion, with $945 million coming from its European operations alone.

Yusen Logistics’ activities focus on the automotive, aerospace, retail, healthcare, consumer electronics and food logistics industries, with services ranging from supply chain management and consulting, through to contract logistics, hazardous materials logistics and reverse logistics. In addition to all of this, it also provides road and rail transport, air and ocean freight forwarding, intermodal and multi-modal transport, and national and international customs brokerage.

The organisation’s UK entity, Yusen Logistics (UK) offers complete supply chain solutions that utilise high quality infrastructure, modern facilities, and proven IT systems to meet and exceed the expectations of its customers. This infrastructure has been developed to support and cultivate a ‘can do’ approach to offering supply chain solutions. It also provides expertise in air freight forwarding, ocean freight forwarding, contract logistics and origin cargo management, as well as providing general logistics services.

“Our solutions place customers at the centre of their operations,” explains Nick Rees, Commercial Director of Yusen Logistics (UK). “Through our customer centricity, we have developed offerings that are tailored to a customer’s exact requirements, and those of their own clients. We focus on key verticals at a corporate level, which translate into tactical plans at a country/local level, while our focus in quality is demonstrated through our industry leading service levels. We combine a proactive approach, to monitor shipments and react to potential issues, with a reactive approach to allow us to be flexible to our customers’ evolving needs.”

The company’s dedicated teams are tasked with applying a customer-centric approach to how they work, delivering continuously high service levels, with a focus on building and growing relationships with key customers. This ‘partnership approach’, as Yusen Logistics calls it, encourages regular contact, which in turn has resulted in performance levels improving by an average of seven per cent year-on-year for one of its customers.

“In recent times, we have achieved particular success with our 4PL Control Tower solutions, for the healthcare, aerospace and automotive sectors, consumer electronics and high value consumer goods,” Nick continues. “Within the healthcare vertical, we focus on reducing product losses through exceptional quality control, superior security measures and accurate delivery times. We have demonstrated our strength in this field by achieving levels of 99.9 per cent of our shipments having no temperature deviations, 99.5 per cent of our deliveries on time, and 99.99 per cent having no potential freight claims, and we are now working to apply our experience to the non-healthcare arena.

“Yusen tends to work with ‘premium’ clients that entrust it to look after their brands, with brand reputation and goodwill being hugely important elements to a successful business. Alongside this, there is the needfor these customers to be able to guarantee secure logistics, complete supply chain visibility and flexibility, with fast-moving environments and products.”

In the last 12 months, the company has also spent time and effort focusing on building a strong presence in the domestic appliance sector. “We have a clear Customer Value Proposition in this particular field, and that is to always provide a reliable and trusted logistics service, maximising a client’s potential revenue through careful handling, a focus on trade delivery, and reworking and grading warranty returns,” Nick states. “This is supported by our exceptional care for goods, with 99.9 per cent of our deliveries experiencing no damage, and our reliable service, with 99.4 per cent of our deliveries on-time-in-full (OTIF). Additionally, our practice of regrading and reworking our customer’s returns procedures continues to prove successful, with one customer reporting to have made savings of over £500,000 thanks to our assistance.”

The efforts of Yusen Logistics has seen the company celebrate both the extension of key business agreements and the securing of important new contracts in the last year. An example of the former was the announcement that Mitsubishi Electric had extended its partnership with the company, reselecting it as its UK warehouse provider to continue to develop and tailor a bespoke logistics service. The decade-long relationship between the two has evolved to today include all inbound logistics and total reverse logistics, with an onsite workshop for repairs, re-work, testing and checking of recycled goods.

In the meantime, Yusen Logistics has also been successful in being awarded a major contract with Seiko, one of the world leaders in timing technology, following the latter’s decision to outsource its entire UK warehousing operation. The contract now sees Yusen Logistics managing all inbound, storage, picking and value-added activities from Seiko’s Maidenhead site. From here it has reengineered the company’s supply chain, successfully implementing a new Warehouse Management System, capable of processing both retail and ecommerce deliveries.

In order to help facilitate its own growth, construction has also been completed on Yusen Logistics’ latest addition to its UK warehousing portfolio, increasing its nationwide footprint to 186,000 square metres. The building, the first unit on the Prologis Park, Wellingborough West, is strategically located within close proximity to the A45, A14 and the M1, where it is ideally situated to serve key markets and urban areas within the UK, as well as the East Coast ports.

Kevin Appleton, Chairman for Yusen Logistics UK, commented at the time: “We’re delighted with our new building. We have a long-standing relationship with Prologis and have operated from Wellingborough for many years. The combination of Wellingborough’s location and Prologis’ delivery capability made a new purpose-built facility at Prologis Park Wellingborough West the ideal choice for our new operation.”

As Nick goes on to conclude, Yusen Logistics now has its sights set on what the future will hold: “Moving forward, we have a three-part strategic plan, which centres on achieving organic growth with our current customers,securing new business in targeted areas and identifying potential acquisitions. We also look forward to continuing the excellent track record in retaining customers, which in 2017 saw all current clients renew their contracts with Yusen. For us, this is a great indicator that we are headed in the right direction.”

Yusen Logistics (UK) Ltd
A diversified logistics market leader
99.4 per cent of deliveries arrive on-time-in-full
A nationwide UK footprint of 186,000 square metres