AZ-COM Maruwa Holdings

Basic Information

Stock Code
9090
Industry
Land Transportation
Category Detail
Warehousing & Logistics
Prefecture
Saitama Prefecture
Establishment Year
August 1973
Listing Year
April 2014
Official Website
https://www.az-com-maruwa-hd.co.jp/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
Other Companies
SBS Holdings, Ship HD, Mirrors HD, Area Link, Konoike Transport, NIPPON EXPRESS HOLDINGS, Mitsubishi Warehouse, Mitsui-Soko Holdings, Sumitomo Warehouse, Shibusawa Warehouse, Nippon Transcity, Yasuda Warehouse, GENOVA

Overview

AZ-COM Maruwa Holdings is a major company in the land transportation industry founded in 1973, deploying a full-line logistics integrated system and holding top-class nationwide performance in the online supermarket home delivery sector as a holding company.

Current Situation

AZ-COM Maruwa Holdings achieved consolidated sales of approximately ¥198.5 billion and operating profit of approximately ¥13.8 billion in the fiscal year ended March 2024, with strong business performance. Its core logistics business operates a nationwide logistics network centered on room-temperature, food, and medical logistics. It collaborates with Amazon as a delivery provider, enhancing its presence in domestic e-commerce logistics. Transitioned to a holding company structure in 2022 to strengthen ties with group subsidiaries. Although there were past safety and health issues, improvement measures have been implemented. It focuses on supporting small and medium-sized logistics companies through shared logistics systems and joint purchasing of goods, aiming for sustainable growth. In 2024, it attempted a takeover bid for C&F Logistics Holdings but it failed. Adapting to changes in the logistics industry, it seeks growth by providing high-value-added logistics services leveraging its nationwide customer base.

Trivia

Interesting Facts

  • The company name 'Maruwa' is derived from the founder's business name and surname, Katsushi Wazami.
  • Unique branding featuring Momotaro illustrations on truck vehicles.
  • Holds top-class nationwide share in individual home delivery for online supermarkets.
  • Partnered with Amazon Japan since 2017 to operate delivery provider business.
  • Deploys logistics subsidiaries in multiple regions domestically and internationally to establish wide-area delivery network.
  • Built AZ-COM network to support small and medium-sized logistics companies.
  • Head office located in Higashi-Saitama Technopolis, Yoshikawa City, Saitama Prefecture.
  • Subsidiary operates Ayabe Community Bus, a contracted community bus service.

Hidden Connections

  • Built large-scale network as Amazon's home delivery contractor, exerting strong influence in EC logistics.
  • Collaborates with small and medium-sized enterprises in the logistics industry to enhance competitiveness through joint purchasing of goods and shortened payment terms.
  • Developed business model integrating regional transport and logistics through bus operations collaboration.
  • History of transitioning from produce brokerage to logistics business leveraging founder's own experience.
  • Strategically advancing subsidiary reorganization and business consolidation through holding company transition.
  • Focused on safety management after receiving citations from labor standards inspection office for Industrial Safety and Health Act violations.
  • Actively investing in new technologies and introducing dispatch systems in line with EC logistics growth.
  • Utilizes subsidiary Japan Tarō's to build nationwide logistics network from Hokkaido to Kyushu.

Future Outlook

Growth Drivers

  • Increasing demand for online supermarket home delivery amid EC market expansion.
  • Efficiency improvements and cost reductions from logistics DX promotion.
  • Expansion of demand for low-temperature logistics services and growth in medical logistics market.
  • Enhanced competitiveness through strengthened collaboration with small and medium-sized logistics firms.
  • Strengthened operations corresponding to regulatory reforms and labor environment improvements.

Strategic Goals

  • Maintain and expand top domestic share in online supermarket home delivery business.
  • Improve delivery efficiency by over 30% through logistics DX and AI technology introduction.
  • Achieve sustainability standards at all group logistics bases.
  • Elevate safety and health levels for employees and partners to industry-leading standards.
  • Develop new business models through logistics collaborations with other industries.

Business Segments

Logistics Support for Retail

Overview
One-stop response to diverse logistics needs of the retail industry.
Competitiveness
Provision of full-line logistics integrated systems
Customers
  • Supermarkets
  • Drugstores
  • Online supermarket operators
  • Consumer cooperatives
  • Supermarket chains
Products
  • Fulfillment logistics
  • Delivery services
  • Warehouse management
  • Inventory management systems
  • Joint delivery systems

Medical and Pharmaceutical Logistics

Overview
Logistics services corresponding to strict temperature management and quality assurance for pharmaceuticals, etc.
Competitiveness
Robust low-temperature logistics infrastructure strong in medical logistics
Customers
  • Pharmaceutical companies
  • Medical institutions
  • Pharmaceutical wholesalers
  • Medical equipment manufacturers
Products
  • Low-temperature warehouse management
  • Quality-controlled transport
  • Traceability services

Sundry Goods and General Cargo Logistics

Overview
Handles diverse storage and transport needs centered on sundry goods.
Competitiveness
Flexible response through diverse logistics systems
Customers
  • Sundry goods wholesalers
  • EC operators
  • Logistics subsidiaries
  • Trading companies
Products
  • Storage management
  • Transport and delivery
  • Picking and packing services

Logistics Systems and Information Services

Overview
Comprehensive support services aimed at logistics efficiency and cost reduction.
Competitiveness
Support network through group collaboration
Customers
  • Logistics companies
  • Retail companies
  • Transport companies
  • Partner companies
Products
  • System development and maintenance
  • Logistics consulting
  • Joint purchasing support

Competitive Advantage

Strengths

  • Nationwide logistics network
  • Infrastructure supporting both room-temperature and low-temperature logistics
  • One of the leading Amazon delivery providers
  • Unique network supporting small and medium-sized logistics companies
  • Regional expansion through abundant subsidiaries
  • Logistics information systems development capabilities
  • Trust and track record built over many years in the industry
  • Provision of multi-temperature zone logistics services
  • Strong customer base
  • Management efficiency from holding company structure

Competitive Advantages

  • Top-class nationwide track record in online supermarket individual home delivery
  • Comprehensive response to customer needs through full-line logistics provision
  • Wide-area deployment leveraging subsidiary network
  • Cost reduction support system in collaboration with SMEs
  • Robust low-temperature logistics infrastructure strong in pharmaceutical logistics
  • Advanced capabilities in latest dispatch apps and logistics DX
  • Quality maintenance through group-wide training programs
  • Ability to complete diverse logistics services in-house
  • Efficient delivery management via proprietary systems
  • Community-focused expansion through regional community bus operations

Threats

  • Labor shortages in the logistics industry and demands for improved working conditions
  • Increased operational costs due to strengthened regulations
  • Price competition pressures from intensifying competition
  • Image risk from Labor Standards Act violation correction recommendations
  • Risks from fluctuations in fuel prices and material costs
  • Fluctuations in logistics demand due to changes in the EC market
  • Risks to logistics bases from natural disasters, etc.
  • Risks of delays in responding to technological innovations
  • Potential entry of overseas logistics companies
  • Management uncertainties from regulatory uncertainties

Innovations

2022: Transition to holding company structure

Overview
Transitioned to holding company system to promote efficiency in group management.
Impact
Concentration of management resources and strengthened business collaboration across the group

2023: Development of dispatch app for logistics DX promotion

Overview
Introduced dispatch optimization app 'GO' to accelerate digitalization of logistics operations.
Impact
Contributes to improved delivery efficiency and cost reductions

2024: Expansion of joint purchasing network for logistics

Overview
Strengthened joint purchasing platform for small and medium-sized logistics companies to improve cost competitiveness.
Impact
Strengthened win-win relationships with partner companies

2021: Expansion of Amazon delivery provider business

Overview
Focused on expanding delivery volume for Amazon and improving service quality.
Impact
Established position in EC logistics and increased revenue

Sustainability

  • Strengthened safety and health management system and implementation of recurrence prevention measures
  • Promotion of fuel efficiency improvement projects to reduce environmental impact
  • Energy-saving measures at logistics bases and utilization of renewable energy
  • Improvement of working environment through employee training
  • Promotion of collaboration for coexistence and co-prosperity with small and medium-sized logistics operators