Safety in Logistics
Goals and Achievements of Major Initiatives
Reduce CO₂ emissions attributable to logistics.
|Scope of target||Japan|
|Goal for fiscal year 2021||Reduce energy consumption per unit of production attributable to logistics by 1% by promoting modal shift and improving transport efficiency.|
|Achievements in fiscal year 2021||
|Goal for fiscal year 2022||Reduce energy consumption per unit of production attributable to logistics by 1% by promoting modal shift and improving transport efficiency.|
- Evaluations are based on self-evaluations of current progress.
Key: ★★★ = Excellent; ★★ = Satisfactory; ★ = Still needs work
The DIC Group works with logistics partners to minimize risks, including by supplying information needed for the safe shipping/transport of its products.
Policies and Framework for Promotion
Having positioned the reduction of CO₂ emissions attributable to the transport of its products as a key aspect of its commitment to Having positioned the reduction of CO₂ emissions attributable to the transport of its products as a key aspect of its commitment to promoting Responsible Care, DIC sets annual targets and promotes relative 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 established in 1999, which operated under the direct supervision of DIC. Since then, the Company has worked closely with this and other partner firms to improve the safety of, and to reduce CO₂ emissions attributable to, logistics. With the aim of responding better to social imperatives associated with the transport of chemicals over the medium term, in January 2016 DIC combined logistics components of its various departments to create the independent Logistics Department.
The Logistics Department, which consists of the Domestic Planning Group and the Overseas Planning & International Trade Administration Group, is charged with advancing initiatives to enhance the safety and reduce the environmental impact of logistics. The Domestic Planning Group, as a consignor, coordinates with logistics partners—third-party logistics (3PL*1) firms—to formulate logistics policies and promote plans designed to enhance the efficiency of domestic logistics. The Overseas Planning & International Trade Administration Group is charged with planning and devising strategies to optimize logistics across Asia, promoting Groupwide efforts to capitalize on export controls and free trade agreements(FTAs)*2 in line with the Foreign Exchange Law and implementing measures to reduce import–export costs.
- 3PLs are firms that provide partial or complete outsourced logistics services.
- FTAs are agreements between two or more countries or customs territories to eliminate 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 the 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 2021, the Company began using larger trucks and took decisive steps to improve loading efficiency, as a result of which it achieved declines in energy consumption and CO₂ emissions attributable to logistics of 4% and 1 %, respectively.
DIC also continues to support the White Logistics Movement, an initiative put forward by three government ministries—the Ministry of Land, Infrastructure, Transport and Tourism, the Ministry of Economy, Trade and Industry, and the Ministry of Agriculture, Forestry and Fisheries—to improve working environments in the logistics industry. By implementing measures in line with its own declaration of voluntary action, the Company also works to strengthen cooperation with logistics partners and transport companies to ensure business continuity. In fiscal year 2021, the Company succeeded in reducing the work associated with pallet transshipment in some areas at production facilities using returnable pallets. The use of returnable pallets has contributed to a decrease in CO₂ emissions resulting from the disposal of one-way pallets. DIC Group companies overseas also continue to actively advance the use of returnable pallets and other initiatives to lower the environmental impact of their logistics activities.
Safety Management 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*1) and provides safety data sheets (SDSs*2) 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 that cause trouble for customers—including leaks, undelivered cargo and delivery errors—are designated as incidents for priority attention and targets, number of incidents, causes and countermeasures are confirmed at monthly meetings. The department is also promoting a variety of steady efforts, including initiatives aimed at ensuring past accidents are not forgotten and regular logistics safety campaigns. In addition, members of plant health and safety committees attend each other’s meetings, as well as meetings of logistics partners’ site general managers across Japan, to exchange information and encourage on-site safety improvement initiatives.
The Logistics Department inspects the offices of logistics partners located on-site at its main domestic production facilities. In fiscal year 2021, 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.*3
- The GHS was formally adopted by the UN in 2003 to facilitate the uniform global classification and labeling of hazard information for chemicals.
- SDSs contain information on the hazards of chemicals to ensure their safe handling.
- Yellow Cards are part of activities recommended by the Japan Chemical Industry Association (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.
Environment, Safety and Quality Meetings in the Era of COVID-19
During fiscal year 2021, the COVID-19 pandemic made it necessary for DIC to take environment, safety and quality meetings with 3PLs located on-site at its domestic production facilities online. Despite the restrictions of the online format for safety training, the Company reiterated the importance of robust safety awareness and learning from past accidents, both of which it believes played a key role in reducing the process accident frequency rate for the period.
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.
Even COVID-19 cannot stop the transport of products.
Everything in 2020 was colored by COVID-19. Initially, calls for companies to shift to telework assumed that the Tokyo 2020 Olympics and
Paralympics were going ahead, but with the declaration of a state of emergency across much of Japan remote working took on a different level
of importance. Preventing the further spread of the pandemic added another layer of difficulty to efforts by DIC, as consignor, and by 3PLs
and other logistics firms, to maintain normal operations. In the autumn, we also began to feel the impact of insufficient container space and a
shortage of dock workers, a challenge we continue to deal with today.
T he Logistics Department is keenly aware of the need to work c losely with logistics f irms and shipping c ompanies and to ensure that shipments of our products are not delayed, even given the current global situation. I am grateful to the cooperation and efforts of our partner companies to respond to our expectations.
General Manager, Logistics Department, DIC Corporation Kenichi Tsuruta