Responsible Logistics

Basic Policy and Framework for Promoting Initiatives

DIC’s commitment to promoting Responsible Care encompasses initiatives aimed at ensuring safety in logistics, that is, the reduction of chemical risks associated with the distribution of chemicals, and at reducing CO2 emissions attributable to the transport of its products. Accordingly, the Company sets annual targets and promotes a variety of initiatives.
The DIC Group’s logistics configuration—encompassing transport between production facilities, the transport of products to customers and international logistics, among others—previously centered on a dedicated subsidiary, established in 1999, which operated under the direct supervision of DIC. In a bid to rationalize and increase the efficiency of logistics, in fiscal year 2011 DIC transferred ownership of the subsidiary to a partner firm and began outsourcing its logistics. Since then, the Group has worked closely with the partner to improve the safety of and reduce CO2 emissions from logistics.
With the aim of better responding to social imperatives associated with the transport of chemicals over the medium to long term, in January 2016 DIC combined the logistics components of its various departments to create an independent Logistics Department. As consignor, the new department, which comprises three sections—domestic planning, overseas planning and the global trading group—is charged with formulating logistics policies and promoting efforts to enhance efficiency, as well as with coordinating with partners, that is, third-party logistics (3PL) firms* providing complete outsourced logistics services, to further enhance safety and reduce environmental impact.

  • *3PL: Firms that provide partial or complete outsourced logistics services.

DIC’s Logistics Configuration

Safety Management in Logistics

Regular meeting with logistics partners
Regular meeting with logistics partners

Yellow Card carried by transport personnel
Yellow Card carried by transport personnel

The firms to which the DIC Group outsources logistics use containers that comply with the Fire Service Act and other transportation laws, as well as with related United Nations’ standards. The Group supplies information needed to display labels complying with GHS*1 as well as provides safety data sheets (SDSs) and other documentation to ensure safe shipping in Japan and overseas.
In Japan, the Logistics Department cooperates with logistics firms, meeting regularly to discuss measures for improving the safety of both loading and transport work. Members of plant health and safety committees and logistics firms’ accident reduction committees attend each others’ meetings to exchange information and promote on-site safety improvement initiatives.
The Logistics Department also inspects operations at the offices of logistics partners located on-site at its 20 main domestic production facilities. In fiscal year 2016, inspections were implemented at seven of these offices, after which issues were pointed out and improvements confirmed.
DIC endeavors to maintain and enhance safety by requiring transport personnel to carry Yellow Cards*2 to ensure proper responses in the event of an emergency and by meeting regularly with representatives from logistics firms to discuss safety and transportation quality.

  • *1GHS: Globally Harmonized System of Classification and Labelling of Chemicals
  • *2Yellow Cards are part of activities recommended by the Japan Chemical Industry Association (JCIA). The cards contain information about the right actions to take if an accident occurs. It provides contact details to ensure proper responses by transportation companies, firefighters and police officers if an accident occurs during the transport of chemical substances. Transport personnel must carry these cards at all times.

Reducing Greenhouse Gas Emissions Attributable to Logistics

CO<sub>2</sub> Emissions and Energy Consumption per Unit of Production Attributable to Logistics
CO2 Emissions and Energy Consumption per Unit of Production Attributable to Logistics

In fiscal year 2016, CO2 emissions attributable to logistics and energy consumption for the same purpose decreased 1.0%. In contrast, owing to a decrease in the volume of products shipped by truck, which caused the efficiency of truck transport to deteriorate, energy consumption per unit of production attributable to logistics rose 2.0%. In this environment, the volume of products shipped using modes of transport qualifying as “modal shift” rose 8.0%, as shipments by container ship remained level, while shipments by rail climbed 14.0%. Principal factors behind the increase in the volume of products shipped by rail included the combining of lots and the purchase of containers as part of an effort to encourage use of this mode. As a consequence, the DIC Group’s modal shift rate was 9.3%, up from 8.5% in fiscal year 2015. The Group will continue to promote modal shift, as well as to explore remedial measures for truck transport, including increasing load factor.

VOICE

We are searching for ways to realize sustainable logistics.

The two rules of transporting chemicals are safety management and legal compliance. In Japan, a critical shortage of qualified drivers has become a serious issue. To ensure the continuity of transport and distribution services, consignors must also make improvements. To this end, we are promoting dialogue with logistics companies, among others, a process that has helped identify a number of issues, including the need to assign assistants to reduce the burden on cargo loaders, minimize standby time and use co-shipping. There are no easy solutions, but I see working to address these issues, taking a medium- to long-term perspective, as one of the Logistics Department’s missions.

General Manager, Logistics Department Kazuhiko Yamada

General Manager,
Logistics Department
Kazuhiko Yamada

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