Streamlined Import of Apparel Products Physical Distribution from Plants in Vietnam and Delivery to Stores in Japan Cases and Achievements

Onward Kashiyama Co., Ltd.
(Apparel retailer)
Global Logistics

Soaring Distribution Center Rent and Labor Costs Were Straining Business Management

Onward Kashiyama Co., Ltd., one of GOAL’s longtime clients, consulted our team around 2017 on an issue concerning international procurement logistics. We suggested considering the company’s value chain beyond domestic physical distribution and introducing a new system that utilized Smart Import. In the system, products would be inspected and sorted at a bonded warehouse (in Nhon Trach) owned by SG Sagawa Vietnam Co., Ltd., a subsidiary of the Sagawa Express Group.


Rents of distribution centers in Japan were rising. What was worse, labor costs were soaring due to labor shortage.


GOAL tracked the flow of products to the upstream and thought about how we could help the client with the whole value chain.


Cross-border integrated logistics from plants outside Japan to stores in Japan has resulted in lower costs, higher transportation quality, and a low likelihood of missed deadlines.

Shifting Most of the Physical Distribution Tasks Overseas Reduced Costs

Onward Kashiyama uses our group’s distribution center to collect suits hung on hangers from a few subcontract factories in Vietnam in the milk run (go-around collection) system. For wrinkle-free delivery, Onward Kashiyama has introduced over 500 special hanger racks and garment-on-hanger containers for transportation to Japan by ship. To the distribution center, the company has installed four sets of an IC tag reading system. Cross-border integrated logistics from plants outside Japan to stores in Japan has resulted in higher transportation quality and a low likelihood of missed deadlines.

Voice of the Client

Higher Quality and Lower Likelihood of Missed Deadlines in Addition to Lower Costs

Onward Kashiyama Co., Ltd.
Executive Officer Supply Chain Management Deputy Group Director Koji Yamauchi

Nowadays, we import about one million pieces of clothing on hangers (hung on hangers during transportation) annually from Vietnam. In fiscal 2019, we are planning to apply the new system to about 40% of the pieces we import. We have already applied the system to the knitted items produced in China and packed in cardboard boxes. In the future, we aim to apply this new system to 100% of the items on hangers from Vietnam and spread the system to other countries where we produce clothing.

Other Global Logistics cases

Related Content