Targets and Results for Fiscal 2010 (Distribution)

An increase in airfreight meant that the targets were missed by a significant margin

For the same shipment weight transported over an identical distance, cargo shipment by air produces 57 times the amount of CO₂ as shipment by sea (based on GHG Protocol published values). Consequently, Konica Minolta has focused its efforts on reducing air transport.
However, in fiscal 2010, airfreight increased significantly as a consequence of fluctuations in demand. Since the third quarter, the use of aircraft has been reduced through measures to ensure a stable supply of products, but the targets for the fiscal year were not met by a significant margin.
While working to sharpen the precision of its demand forecasts, the Group will pursue efforts to reduce the amount of airfreight by implementing more advanced supply chain management (SCM)*.

*

Supply Chain Management (SCM): A method for effectively managing the flow of goods from procurement to production, and from sales to final product delivery to the customer.

• Standards for Calculating Environmental Data

Initiatives in Distribution

Konica Minolta aims to reduce CO₂ emissions from its distribution activities needed for each process ranging from procurement to production and sales.

Promoting a Modal Shift

Konica Minolta has been promoting a modal shift for the long-distance transportation of products and parts, switching from aircraft and trucks to ships, railways and other means that emit less CO₂.
When transporting its business information products internationally, the company normally uses marine transportation, but on occasion air transportation was necessary. To reduce the frequency of air transportation, the Group is working to enhance its demand forecasting accuracy and to review inventory management systems.

Improving Distribution Routes and Systems

Konica Minolta is reducing CO₂ emissions from its distribution processes by proactively restructuring its logistics facilities around the world.
In June 2008, for example, the company consolidated two logistics centers for business information products, one in Germany and the other in the Netherlands, at a new location in Emmerich, Germany, to serve all of Europe. Through such restructurings, the company aims to shorten the overall transport distance in its logistics operations Group-wide, while expanding the scope of direct customer delivery areas.

Milk Run Logistics (Round collection of cargos)

The term "milk run" originally came from the milk collecting system of dairy producers who visited dairy farms to collect milk in a single vehicle. In the manufacturing industry, it refers to a collection method in which a single vehicle is used to make rounds picking up goods from various supplier instead of requesting each supplier to deliver goods individually.
Konica Minolta is using the milk run logistics in Wuxi City in Jiangsu, China. It contributes to reducing CO₂ emissions by shortening the total driving mileage of the trucks.
In addition, the Group is also reducing waste by using re-usable boxes instead of cartons to transport the parts.

Container Round Use

Container Round Use is a concept in which the devanned container is used for export without returning it to the shipping company. By omitting the process of returning the devanned empty container and getting the new empty container for vanning, the concept contributes to both reducing CO₂ emissions and saving transportation cost.
Konica Minolta Logistics Co., Ltd. is implementing the Container Round Use system in the most effective manner by managing and controlling the shipping schedule with shipping companies and handling the containers that belong to the same shipping companies with minimum loss.
Further, the company is contributing to the reduction of CO₂ emissions by arranging a joint delivery combining finished products and parts, and sub-assembled units from overseas' manufacturing sites, that were previously transported individually.