Ebara Corporation (hereinafter referred to as "Ebara") has established a distribution (logistics) center in Vietnam as part of its efforts to strengthen its global supply chain for standard pumps.
Established a distribution center for standard pumps in Vietnam
1. Background and Objectives
In its medium-term management plan "E-Plan 2022," Ebara aims to improve the profitability of its core pump business. Our standard pump business boasts the top market share in Japan, and we will actively expand into promising regions and markets overseas in order to increase sales there. On the other hand, optimizing inventory and shortening delivery times are essential to improving return on invested capital (ROIC), which is set as a key indicator in E-Plan 2022. As a concrete measure, we will establish a distribution center and increase our competitive advantage in the global market.
2. Distribution Center Overview
Our distribution center in Southeast Asia utilizes a bonded warehouse in an industrial park in Vietnam. Previously, standard pumps produced at Ebara Group's factory in Italy were shipped to each of the six sales subsidiaries in Southeast Asia, but now they will be stocked at the center and shipped to each company.
The establishment of the distribution center will shorten delivery times, reduce local inventory, and promote optimal inventory management, allowing products to be supplied efficiently to the markets of each country.
3. Future developments
We are planning to set up a knock-down center (assembly facility) near the distribution center in the future. By stocking parts at our distribution centers, we can respond to demand more flexibly. We will also work to strengthen the entire supply chain, including local procurement.
In order to strengthen our standard pump business, we will smoothly supply products to the Southeast Asian market and contribute to the safety and security of people's lives in the region.
By addressing key ESG issues based on our long-term vision and medium-term management plan, the EBARA Group aims to achieve the Sustainable Development Goals (SDGs) and further improve our corporate value.