Feb. 3, 2016
Management / Financial Result
Technology / R&D
Shiseido Establishes a New Global Supply Chain Management Base in Osaka
Shiseido Company, Limited announces the relocation of its Osaka Factory to improve its productivity as the primary factory making skincare products, and the establishment of a new distribution base, Shiseido Kansai Integration Center (tentative name), on the same premises
In an effort to achieve the goals of its medium-to-long-term strategy named “VISION 2020”, Shiseido is reorganizing its business structure to build a strong foundation able to deliver stable corporate systems that can sustain for 100 years or more. In order to “increase brand value”, Shiseido has actively invested in marketing and innovation, and has already decided to build a new basic research base, the Global Innovation Center (tentative name). This center will begin operation at the end of FY2018 in the Minatomirai 21 area of Yokohama. In addition, Shiseido will establish a new global supply chain management base in Ibaraki, Osaka. This base will include the New Shiseido Osaka Factory, where the current Osaka Factory’s production facilities will be relocated. This is expected to enhance the system for producing and providing high-quality skincare products that meet the needs of the Japanese as well as global markets. The new factory’s production capacity will be approximately 1.5 times higher than that of the current facility , and, according to the company’s global supply chain management vision, it will play the role of the primary factory making skincare products. . Furthermore, Shiseido will have a new flagship distribution base, Shiseido Kansai Integration Center (tentative name), established on the same premises, whose functions will include distribution within Japan and overseas as well as storing and shipping products. The total investments are expected to amount to about 40 billion yen, with construction beginning in FY2018 and operation starting in FY2020 according to the plan.
Image of the new baseDownload Small Image[79.8KB]
Shiseido is making every effort to achieve the goals of its medium-to-long-term strategy “VISION 2020” to become a “Japanese company that leads the world’s beauty industry.” In order to create globally competitive brands, with the concept of “Centers of Excellence” at the core, Shiseido focuses on advanced countries and regions that have great influence internationally within each category. For example, Japan leads the skincare market; New York, makeup and digital marketing; and Paris, fragrance. Shiseido gathers information, plans strategies, and develops products in each advanced area and slots the results into global marketing activities. In particular, Shiseido is actively promoting strategies to increase the demand in Japan, China, other Asian countries, and all over the world for skincare products developed and produced in Japan, epitomizing ”made-in-Japan products” with their high quality. The role of the new global supply chain management base will be to accelerate the implementation of the strategies.
◆Establishment of New Shiseido Osaka Factory
The new factory will play the role of the primary factory that focuses on skincare brands with a mid-to-high price range, internationally competitive and superior in quality. Thus, Shiseido ensures strict production and quality control, from reorganizing to operation of facilities, sanitary systems, human resources, raw/packaging materials, and waste management in compliance with ISO22716, equivalent to international standards used in the oral medicine manufacturing industry. Moreover, the new Shiseido Osaka Factory will lead Shiseido’s craftsmanship as a “factory that creates the future”, where humans and robots collaborate to develop highly efficient production technologies, based on the company’s accumulated knowledge of skincare product manufacturing.
◆Shiseido Kansai Integration Center (tentative name)
The current distribution flow consisting of factories (production), distribution centers (storing), and product centers (shipment) will be integrated. The new center will incorporate loading and unloading of raw materials, as well as storing and shipping of products. Various technologies and systems will be introduced, such as state-of-the-art distribution technology and highly efficient, robot-based selection systems that allow for sorting, selecting, and storing. These will enable more efficient and cost-effective operation, leading to a well-organized supply structure.
Going forward, in order to promptly satisfy the needs of customers and markets in Japan as well as overseas, Shiseido is aiming for a more streamlined operation and quicker response to market needs, with a view to improving this new facility as a distribution hub.
◆Outline of New Shiseido Osaka Factory and Kansai Integration Center (tentative names)
Factory: Shiseido Osaka Factory
Distribution base: Shiseido Kansai Integration Center (tentative name)
Planned construction site
Eastern Saito District, Ibaraki-shi, Osaka
Factory: 15,000 m2
Distribution base: 13,000 m2
Factory: 4 stories above ground
Distribution base: 5 stories above ground
New factory: products
Skincare and other products
New factory: production capacity
Approx. 100 million products per year
Approx. 40 billion JPY
Construction begins (plan): FY2018
Operation begins (plan): FY2020
※The content of the release is correct as of the time of release, but please note that it may in some cases differ from the latest information.
*The content of the release is correct as of the time of release, but please note that it may in some cases differ from the latest information.
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