Putting Our Customers’ Success First

Hello, I’m Ichiki of Sync Logistics.

Today I’d like to share with you the point of view of logistics service providers that are essential to the development of the used car export industry.

■Customers seek solutions

Our industry is undergoing great upheaval. Looking at our industry, I am seeing the spread of changes in management at our partner companies (especially port operators) due to a generational shift. I also sense a growing momentum in them wanting to expand their businesses, and trying their hand at other business areas upstream. I think that boldly trying new things without maintaining the status quo is a great way to revitalize our industry. As a manager whose duty is to make our company grow, I can relate.

However, changes within logistics service providers who want to expand their businesses may not necessarily lead to profits for exporters who are their customers. For example, during the early days of our company, I created and sold services which I thought were good, such as providing specific land and vanning services. There was a time when such services sold, but there were also times when we were not chosen for the job. This was because we were not providing solutions that led to the growth of our customers’ businesses. 

I realize that exporters who want to export as many vehicles as they can will trust a provider that offers flexible solutions tailored to them, and not a provider that only offers specific functions.

■The importance of taking the customer’s point of view

The development of the automobile export industry would not be possible without the success of exporters (shippers). The reason for this is if the buying and selling of vehicles (commercial distribution) do not increase, then the volume of logistics will not increase as well. Let me say with absolute certainty that when creating logistics and distribution services, the foremost consideration is the maximization of shippers’ profits. To achieve this, I believe that the most important thing is a market-oriented service creation approach from shippers’ point of view. 

For example, when you’re sick in bed, how do you want your family or partner to take care of you? Wouldn’t you be happier and recover faster if your loved one would try to see what’s wrong with you, check your appetite, give you food and make you feel comfortable, rather than that person cooking his or her signature dish without taking your condition into consideration? I think the same can be said about the provision of logistics services. A disadvantage of services created solely for the convenience of the logistics side is the inability to appropriately respond to changes in shippers’ circumstances and needs, resulting in them being unable to maximize their profits. If their businesses stagnate, commercial distribution and the volume of logistics also decreases, and distribution and logistics providers will go out of business. 

In fact, the businesses I was able to grow in the past took into account the customer’s point of view (I considered the best strategies from the shipper’s point of view). On the other hand, the businesses that didn’t have the customer’s point of view declined, which was inevitable.

■Our industry is an industry with many stakeholders

Although the Japanese used car export market is showing signs of recovery after a downturn caused by the pandemic, the market is expected to begin shrinking around 2030 due to the increase in demand for electric vehicles over the medium to long term. Because the market is expected to become even more challenging, I believe that building even stronger, more cooperative relationships among all parties is necessary for developing our industry. 

• Distributors and logistics providers should create optimal services after listening to the issues and needs of shippers. 
• We ask exporters to quickly provide and share information that will be helpful in creating smooth logistics services.

Because there are many stakeholders in our industry, I feel it is important for us to be conscious about cooperating with each other. 

Moreover, when considering the development of our industry, we must avoid a “partial optimization” approach that only pursues our own rights and profits.You may reprimand me for saying this considering we are a for-profit company, and therefore it is only natural that we should think of ourselves first, 

BUT,

• The market is largely subjected to ups and downs, and is directly influenced by world events and various countries’ regulations.
• The used car export market is expected to shrink, especially the market for engine-powered vehicles.
• Because logistics processes are complex and many parties are involved, close cooperation and information sharing are essential.

With these in mind, I believe that a “total optimization” approach that commits to the growth of shippers and the industry as a whole will eventually lead to the growth of all companies.

These past few years, I have been devoting much of my time to organizing our company and developing our human resources. I regret not being considerate of and not communicating enough with our partner companies, and some of you might feel that I have been unfair to you. Now that we have trained personnel I can count on, I am determined once more to focus on strengthening efforts that will develop our industry as a whole. 

Please message me if you want to share your opinions or if you can relate to any of what I’ve written.

Thank you for your time.