Safety in Logistics
Goals and Achievements of Major Initiatives
Reduce CO₂ emissions attributable to logistics.
| Scope of target | Japan |
|---|---|
| Goal for fiscal year 2022 | Reduce energy consumption per unit of production attributable to logistics by 1% from fiscal year 2021 by promoting modal shift and improving transport efficiency. |
| Achievements in fiscal year 2022 |
|
| Evaluation | ★ ★ ★ ★ ★ ★ |
| Goal for fiscal year 2023 | Reduce CO₂ emissions attributable to logistics by 1.23% from fiscal year 2022. |
- Evaluations are based on self-evaluations of current progress.
Key: ★★★ = Excellent; ★★ = Satisfactory; ★ = Still needs work
Basic Approach
The DIC Group works with logistics partners to minimize risks, including by supplying information needed for the safe shipping and transport of chemicals.
Policies and Organization
Having positioned the reduction of CO₂ emissions attributable to logistics as a key aspect of its commitment to promoting Responsible Care, the DIC Group sets annual targets and promotes related initiatives on an ongoing basis. DIC’s logistics configuration— components of which include transport between production facilities, the transport of products to customers and international logistics— previously centered on a dedicated subsidiary, which operated under the direct supervision of DIC. In a bid to rationalize and increase the efficiency of logistics, in 2011 DIC transferred this subsidiary to a logistics partner—a third-party logistics (3PL)*1 firm—and began to outsource its logistics. Since then, the Group has worked closely with this and other logistics partners to improve the safety of, and reduce CO₂ emissions attributable to, its logistics activities. To respond better to social imperatives associated with the transport of chemicals, in fiscal year 2016 DIC combined the logistics components of its various departments to create a single Logistics Department.
The Logistics Department is charged with devising strategies to optimize logistics in Japan and across Asia, and with capitalizing on export controls and free trade agreements (FTAs)*2 in line with the Foreign Exchange Law. The department consists of the Domestic Planning Group, which implements measures to reduce import–export costs. and the Overseas Planning & International Trade Administration Group, which advances initiatives to enhance the safety and reduce the environmental impact of logistics planning.
- 3PLs are firms that provide partial or complete outsourced logistics services.
- FTAs are agreements between two or more countries or customs territories to eliminate import taxes, import quotas and other trade barriers for a set period of time, thereby encouraging trade.
Reducing Environmental Impact and Supporting White Logistics
The operating environment for Japan’s logistics industry continues to recover from a temporary decrease in shipment volume attributable to COVID-19, but the issue of driver shortages persists, owing to growing popularity of e-commerce and restrictions on drivers’ working hours resulting from a legal amendment dubbed the “2024 issue.” In addition, the Japanese government’s target for achieving a 46% reduction of greenhouse gas emissions by fiscal year 2030, announced in April 2021, obliged companies to step up efforts to lower the burden of logistics activities on the environment.
Against this backdrop, DIC continues to promote the transport of products using modes qualifying as “modal shift” in Japan with the aim of reducing the environmental impact of the transport of its products. In fiscal year 2022, the Company continued using larger trucks and taking decisive steps to improve loading efficiency, as a result of which it achieved declines in energy consumption and CO₂ emissions attributable to logistics of approximately 6% and 5%, respectively.
DIC also continues to support the White Logistics movement, an initiative put forward by the Ministry of Land, Infrastructure, Transport and Tourism, among others, to improve working environments in the logistics industry. The Company also works with logistics partners and shipping companies to ensure business continuity. In fiscal year 2022, the Company began using returnable pallets, which reduce the work associated with pallet transshipment, at another production facility.
DIC Group companies in other countries and territories also continue to actively advance the use of returnable pallets and other initiatives to lower the environmental impact of their logistics activities.
Safety in Logistics
Safety Management Initiatives
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 UN standards. The Group supplies information needed to display labels complying with the Globally Harmonized System of Classification and Labeling of Chemicals (GHS) as well as provides safety data sheets (SDSs) and other documentation to ensure safe shipping whether in Japan or overseas. The Group also holds in-house presentations regarding transport of products requiring UN numbers (i.e., hazardous substances) by sea and air to facilitate the sharing of information, including alerts.
In Japan, the Logistics Department cooperates with logistics partners, meeting regularly to discuss measures for improving the safety of both loading and transport work. Of particular note, logistics quality issues such as leaks, undelivered cargo and delivery errors are designated as incidents for priority attention and decisive steps are taken to ensure improvements. Other ongoing efforts include initiatives aimed at preventing the recurrence of past accidents and regular logistics safety campaigns. Members of site health and safety committees also participate in each other’s meetings, as well as meetings of logistics partners’ site general managers. The Logistics Department also inspects the offices of logistics partners located onsite at its main domestic production facilities. In fiscal year 2022, issues were pointed out at four of these offices, after which improvements were confirmed. In addition, DIC endeavors to maintain and enhance safety by requiring transport personnel to carry Yellow Cards.*
- Yellow Cards are part of activities recommended by the JCIA. These cards contain information about the correct actions to take if an accident occurs. They provide 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.
Regular meeting with a logistics partner
TOPICS
Taking Meetings with 3PLs Online
COVID-19 forced DIC to adopt an online format for its meetings with 3PL firms. This format has since taken firm root. Despite the restrictions of the online format for safety training, the Company used photographs and videos to reiterate the importance of robust safety and prevent memories of past accidents from fading. These efforts contributed to a 9% decline in the frequency of accidents.
Online environment, safety and quality meeting
Cushioning Materials Are Supplied to Route Operators at the Time of Shipping
Regular shipments of products usually involve issues such as damage and the soiling of packaging during transport. In response, DIC has explored the implementation of a measures to counter such issues, including the use of cushioning and nonslip materials when packing products, and has begun implementing and evaluating the impact at certain sites. Such efforts have earned favorable reviews, including for reducing damage to packages and accidents caused by falling loads, as a result of which the Company plans to expand the range of eligible products in the future.
Packing with cushioning materials and retaining clips
VOICE
We are working to contribute to the realization of sustainability through effective logistics.
Although the storage space shortages and soaring shipping costs of recent years, both consequences of global inflation and declining consumption brought about by COVID-19, have stabilized, the operating environment for logistics services continues to deteriorate as a result of the crisis in Ukraine, which has driven up fuel costs, and of frequent natural disasters and concerns over Taiwan.
In this environment, the Logistics Department remains keenly aware of the importance of prioritizing environmental and safety concerns to ensure its ability to contribute to the realization of sustainability. As such, we work closely with logistics firms and shipping companies to reduce both the environmental impact of our logistics activities and the incidence of logistics-related accidents. Looking ahead, we will continue to cooperate with our logistics partners to promote modal shift and support the White Logistics movement.
General Manager, Logistics Department, DIC Corporation Kenichi Tsuruta
