Sugimura Warehouse

Basic Information

Stock Code: 9307
Industry: Warehousing and Transportation Related Industries
Category Detail: Warehousing & Logistics
Prefecture: Osaka Prefecture
Establishment Year: October 1919
Listing Year: May 1949
Official Website: https://www.sugimura-wh.co.jp/
TSE Information: TSE Information
Yahoo! Finance: Yahoo! Finance
Other Companies: SBS Holdings, Rei, Wise HD, Area Link, Konoike Transport, AZ-COM Maruwa Holdings, NIPPON EXPRESS HOLDINGS, Mitsubishi Warehouse, Mitsui Warehouse Holdings, Sumitomo Warehouse, Shibusawa Warehouse, Japan Transcity, Kin'ei

Overview

Sugimura Warehouse is a long-established company in the Kansai region's warehousing and logistics industry, founded in 1919. It primarily operates in warehousing, with expansion into distribution processing and transportation services.

Current Situation

Sugimura Warehouse recorded consolidated net sales of approximately 10.2 billion yen and operating profit of about 1.2 billion yen in the fiscal year ended March 2021, maintaining a solid earnings base. In addition to its core warehousing business, it is expanding distribution processing and transportation operations, building a stable customer base mainly in the Kansai region. The company continues to invest in digitalization and efficiency improvements in logistics, pursuing steady growth in a highly competitive industry. Leveraging collaboration with its parent company, Nomura Holdings, it is strengthening real estate management and related services. With tailwinds from increasing domestic logistics demand and e-commerce market growth, it aims for further business expansion. While considering sustainability initiatives such as reducing environmental impact and community contributions, it is advancing mid- to long-term growth strategies. Backed by a stable management foundation, it focuses on new business development, enhancing port logistics and warehousing services. It aims to strengthen competitiveness through employee training and technological innovation, establishing its position as a key player in regional logistics.

Trivia

Interesting Facts

Long-established warehousing company founded in 1919 with a strong base in Kansai.
Originally started as a sole proprietorship in Nishi-ku, Osaka City.
Receives stable support in finance and real estate as a member of the Nomura Group.
Obtained permission to issue warehouse receipts under the Warehouse Industry Law in 1940.
Early expansion of rare distribution processing services in the warehousing industry.
Rooted in local industries as a mid-sized logistics company in the Kansai region.
Consolidated subsidiary Sugimura Transportation mainly handles transportation business.
Deploys diverse regionally integrated logistics solutions.
Maintains a mid-sized organization with 375 consolidated employees.
Parent company Nomura Holdings is the major shareholder with 46.2% ownership.
Warehouse facility leasing is one business generating stable revenue.
Actively investing in digitalization of the logistics industry.
Contributes to local communities through environmentally considerate warehouse operations.
High expertise specialized in the Kansai market is highly evaluated.
Logistics facilities are well-located near urban areas with excellent access.

Hidden Connections

Closely collaborates with Nomura Land and Building, a real estate subsidiary of Nomura Holdings, for efficient warehouse operations and land utilization.
Strong ties with the regional economy as a logistics partner for Kansai's local industries.
Built long-term transaction base with food manufacturers and retailers through advanced distribution processing.
Ensures stability in funding and management through parent company collaboration, enabling participation in large-scale logistics projects.
Adopts business strategy of differentiation by providing customized logistics services for local SMEs.
Establishes unique service model fusing traditional warehousing with responses to growing e-commerce logistics demand.
Realizes one-stop logistics integrating land transportation and warehousing through coordination with related subsidiaries.
High social credibility from contributions to regional logistics infrastructure development in collaboration with local governments.

Future Outlook

Growth Drivers

Increasing logistics service demand due to e-commerce market expansion
Growing demand for regionally integrated logistics
Value enhancement through advanced distribution processing
Eco-logistics solutions responding to stricter environmental regulations
Efficiency improvements through digital transformation
Securing and training logistics talent in aging society
Flexible response to diversifying customer needs
Optimal placement and sharing of logistics facilities
Strengthened disaster risk management and BCP
Business opportunity expansion through enhanced parent company collaboration
Development of new BtoB business areas

Strategic Goals

Improve overall logistics efficiency by 30%
Achieve 40% reduction in CO2 emissions and lower environmental impact
Practical implementation of logistics automation using latest IT
Double distribution processing service sales from current levels
Strengthen disaster response capabilities in collaboration with local communities
40% or higher utilization rate of diverse talent including women and elderly
Expand new business sales to 20% of total
Maximize synergies through group collaboration
Stabilize revenue through business diversification
Establish position as logistics leader contributing to regional economic development

Business Segments

Logistics Warehouse Services

Overview

Provides optimized warehouse storage and distribution processing services for various industries.

Competitiveness

Regionally integrated efficient logistics network

Customers

Manufacturing
Wholesale
Retail
Food Distribution
Chemical Handling Companies
Pharmaceutical-Related Companies
Cosmetics Manufacturers
Electronics Manufacturers
Automotive Parts Manufacturers
Construction Materials Sales

Products

General Cargo Storage
Distribution Processing
Picking
Packing
Inventory Management
Logistics Consulting
Temperature-Controlled Warehouses

Land Transportation Services

Overview

Provides truck transportation services for corporations centered in the Kansai area for various applications.

Competitiveness

Rapid and flexible transportation services

Customers

Retail Chains
Manufacturing
Food Wholesalers
Medical Institutions
Inter-Factory Transporters
E-commerce Operators
Beverage Manufacturers
Warehouse Operators
Mail-Order Companies
Machinery Parts Manufacturers

Products

Corporate Truck Transportation
Regular Route Transportation
Charter Services
Refrigerated and Frozen Transportation
Emergency Transportation Services
Packaging Materials Transportation

Related Real Estate Management

Overview

Supports leasing and optimal operation of warehouses and logistics facilities.

Competitiveness

Real estate utilization leveraging group synergies

Customers

Group Companies
Local Companies
Logistics Operators
Retail
Manufacturing
Real Estate Investors

Products

Warehouse Facility Leasing
Logistics Center Management
Land Management
Facility Maintenance

Distribution Processing

Overview

Provides various product processing tailored to customer needs.

Competitiveness

High operational quality and rapid response capabilities

Customers

Food Manufacturers
E-commerce Operators
Retail Chains
Manufacturing
Logistics Companies

Products

Inspection Operations
Packaging and Packing Processing
Labeling
Picking
Setup
Assembly Operations

Competitive Advantage

Strengths

Kansai-based regionally integrated logistics network
Stable warehouse storage and distribution processing services
Support from parent company Nomura Holdings
Solid financial base and asset scale
Diversified logistics services
Long industry experience and trust
Efficient inventory management system
Flexible customer response and service quality
Stable revenue from related real estate business
Employee expertise and technical capabilities
Excellent warehouse locations near urban areas
Broad industry customer base
Synergy effects with consolidated subsidiaries
Promotion of latest logistics technology adoption
Thorough compliance and safety management systems

Competitive Advantages

Strong Kansai regional logistics infrastructure earns high trust from local customers
Able to provide integrated services up to distribution processing
Can leverage wide resources from Nomura Group including finance and real estate
High creditworthiness from historically stable management
Superior rapid and flexible customization capabilities compared to competitors
Broad response to customer needs through diverse logistics solutions
Revenue stability from warehouse facility leasing and management
Responds to customer ESG demands through environmentally considerate warehouse operations
IT systems for inventory management and delivery optimization
Strong regionally integrated services for SMEs and mid-sized companies
Maintained service quality through high-quality employee training
Stable funding capabilities through parent company collaboration
Customized logistics proposals aligned with regional economic structures
Efficient operations in increasingly competitive transportation industry
Diversified business areas bring revenue dispersion and stability

Threats

Intensifying competition with major logistics groups
Risk of rising transportation and fuel costs
Expanding impact from labor shortages due to aging population
Risks of IT security incidents and system failures
Revenue pressure from difficulties in acquiring new shippers
Risk of logistics disruptions from natural disasters
Demand for service diversification amid rapid e-commerce growth
Cost increases from regulatory changes and labor environment shifts
Demand fluctuations from novel infectious diseases and similar
Declining profit margins from competitors' price wars
Equipment investment burdens to comply with stricter environmental regulations
Challenges in securing truck drivers affecting service continuity

Innovations

2023: DX Promotion for Warehouse Management Systems

Overview: Advancing digitalization and automation of warehouse operations using the latest IT technologies.
Impact: 20% improvement in operational efficiency, reduced mis-shipment rate

2022: Introduction of Environmentally Friendly Warehouse Facilities

Overview: Commenced operations of new warehouses utilizing energy-saving equipment and renewable energy.
Impact: 30% reduction in CO2 emissions

2021: Introduction of Automated Equipment for Distribution Processing

Overview: Installed new automated lines for inspection and packing to strengthen measures against labor shortages.
Impact: 15% reduction in working hours, improved productivity

2020: Improved Fuel Efficiency of Transportation Vehicles

Overview: Introduced new high-fuel-efficiency trucks to reduce environmental impact.
Impact: 10% reduction in fuel consumption

Sustainability

Introduction of energy-saving warehouse equipment
Expansion of renewable energy utilization
Improvement in waste recycling rate
Promotion of low-environmental-impact logistics
Participation in local traffic accident prevention activities
Strengthening of occupational health and safety
Support for employee work-life balance
Environmental conservation activities in collaboration with local communities
Thorough chemical substance management
CO2 emission reductions through logistics optimization
Promotion of elderly employment
Initiatives to advance women