Empathizing with Mr. Ichiki and sensing his potential, Mr. Sato of Yamagin Corporation decided to partner with Sync Logistics. What did this formidable company president who has had more than 40 years of experience in the industry exactly empathize with?
Yamagin Corporation
Since its establishment in 1978, Yamagin Corporation has led the used car export industry in Japan for over 40 years.
Its founder, Mr. Hiroshi Sato, is also the founder and board chairman of the Japan Used Motor Vehicle Exporters Association (JUMVEA) which has approximately 250 member companies nationwide.
Yamagin Corporation has been outsourcing its container and RORO shipping, and its local transportation arrangements in the countries it exports to for the past 7 years. While working together, Mr. Sato has found commonalities with Mr. Ichiki’s work stance and approach. According to Mr. Sato, he has recently built a strong relationship with Mr. Ichiki based on trust, and he is now Mr. Sato’s partner in pioneering new business.
This interview with Mr. Sato and Mr. Ichiki reveals the particulars of their partnership, and Mr. Sato’s impressions of Sync Logistics.
About the Japan Used Motor Vehicle Exporters Association (JUMVEA)
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JUMVEA is a cooperative mainly comprised of used vehicle exporters in Japan. Authorized by the Minister of Trade and Industry at the time, the cooperative was established in 1997 as the“Japan Used Motor Vehicle Exporters Association.” Based on mutual cooperation among its members, the association aims to create orderly systems in the used car export industry, works for its sound development, promotes its members’ businesses, and improves their social and economic status. Currently, the association has approximately 250 members (as of March 2022). Website: |
Sensing Mr. Ichiki’s potential When he was only 28 years old and when Sync Logistics was in its second year in business
Yamagin Corporation’s Company Profile and Consigning Work to Sync Logistics
Mr. Sato: We are a used automobile export company. We offer a proxy export service that picks up cars at a customer’s specified location and transports them to a port abroad; as well as a whole range of services from car procurement to transport (including unloading at a port abroad).
Sync Logistics supports us in various tasks and procedures from container and RORO shipping to local transportation arrangements in the countries we export to. We export to a wide range of countries including Mongolia, Russia, the USA, Sri Lanka, and Myanmar, and the number of container transport orders we have received so far has already exceeded 660.
This past year, Sync Logistics has been supporting us beyond our shipper/forwarder relationship. As a business partner, they’ve been helping us solve problems that have been troubling us in our Russian business.
Meeting Mr. Ichiki and The Reason for Doing Business With Him
Mr. Sato: I first met Mr. Ichiki about 7 years ago at JUMVEA’s year-end party. The association’s year-end party is a large-scale gathering where almost 250 member companies (exporters) nationwide can all meet at the same time and place. It’s where they can exchange information and make new connections.
I had the chance to speak with Mr. Ichiki at the party, and even though I thought he was still too young, I saw his passion and potential. After I speak with someone, I could guess whether he would be able to grow (as a businessperson) or not. So in the beginning, I consigned container transport to Mongolia, and we gradually expanded our dealings.
Mr. Ichiki: It was around the time when I was managing our Kawasaki office, and I was 28 years old. It has only been 2 years since I founded Sync Logistics in Fukuoka, but I was able to attend the association’s year-end party. I immediately printed many flyers, and I asked to be allowed to stand by the reception desk at the party so I could distribute the flyers. I was able to give a flyer to each exporter, and thankfully, I got to know them, which led to new business.
Even if an unforeseen transport problem occurs, Sync Logistics carefully investigates its cause.
Challenges of our Russian Business and the Particulars of our Initiatives
Mr. Sato: Russian demand for used cars has always been high, and our company has been in the transport business for almost 40 years since the Soviet era. There was a time when business was so brisk that we were exporting four times as much compared to now, but the fall of Lehman Brothers and the subsequent financial crisis in 2008 caused a drastic decline in business. But recently, demand for used cars has recovered because the price of crude oil, Russia’s main industrial product, has been rising.
However, transportation to Vladivostok has not been proceeding smoothly, with many cars being left at yards in Japan. The supply system for cars is in place, but they can’t be transported to Russia. We didn’t know the exact cause, whether it was the lack of ships due to COVID-19 or not, so we contacted Mr. Ichiki.
Mr. Ichiki: You contacted me through my email newsletter that I send to my clients. You empathized with what I wrote in it that said, “For the used car export industry to prosper, shippers, who are the revenue source for all stakeholders, must first be successful,”and you invited me to a meal.
You consulted me about why shipments bound for Vladivostok were being held back, so our company decided to solve the issue and develop services for you.
First, in order to determine why they were being held back, we looked for corroborative evidence by gathering feedback from people onsite in Japan and Vladivostok. We found out that the bottleneck was the lack of space at the local port in Vladivostok. Due to a policy change in Vladivostok, space for used cars has been restricted, so even if the cars are transported by ship, they cannot be unloaded. This led to a complication where cars were being held at Japanese yards.
After having identified the bottleneck, and being advised by Mr. Sato, we are now proceeding with our plan.
Sync Logistics is an excellent business partner that benefits shippers
Impressions of Sync Logistics and of Mr. Ichiki
Mr. Sato: We think highly of Sync Logistics with regard to their contribution in improving our profits. The secret of success in business is to surround yourself with partners who can bring bigger profits to your company quickly. In this sense, Sync Logistics is an excellent business partner.
I think Mr. Ichiki is a brilliant person who thinks broadly. Among forwarders, there are those who are only after a quick buck, but there are those with foresight and thinks one step ahead. When I talk with people from the same industry, I can often tell what they are focusing on, but Mr. Ichiki has a broad perspective and thinks ahead. That’s why I felt he had potential.
When I read his newsletter, I thought that even though he’s young, he knows things. Business cannot happen unless the customer makes money. Even though they won’t say it out loud, for-profit companies want to increase their own profits, but firstly, it is important to make their customers’ businesses successful. Things that shouldn’t be mentioned shouldn’t be said, but when talking about dreams, it’s ok to say “Let’s both grow together.” In my experience, people who know that often do well in the future.
The potential to be an industry leader in the near future
Prospects for Future Business and Expectations from Sync Logistics
Mr. Sato: Not only with Russia, but we would also like to work with Sync Logistics in the future as our partner in other projects.
This can be said in any industry, but whether a company does well or not depends on the owner’s personality and mindset. When things go well, some people become proud thinking it was all because of their own effort, and people around them notice that attitude. But if things are done the way Mr. Ichiki does it, we don’t have to worry about such an attitude.
In the next 5 to 10 years, he will grow even more, and I expect him to be a leader in our industry.
Mr. Ichiki: Thank you. I will do my very best!
As for me, I would like to maximize the number of cars exported in the next 10 years when demand for engine-powered automobiles is high, before shifting to electric vehicles. To achieve this, shippers need to export as many used cars as possible, and we will continue to properly support them as our business partners.
■Company Profile
Company Name: Yamagin Corporation
Description of Business: Used automobile exporter
Number of employees: 18 (as of 2020)
URL：https://www.yamagin.co.jp/
