Ensuring supply through superior procurement capabilities

IssuesBackground/Issues

Initiative details

Why usWhy Japan Sea

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The Suez Canal grounding accident that occurred in March 2021 had a major impact on international logistics. As a result of the grounding accident, many container ships were forced to detour to the Cape of Good Hope route, prolonging the voyage, resulting in a serious container shortage and a significant increase in sea freight rates. As a result of this, a domestic paper manufacturer (hereinafter referred to as Company A) has run out of inventory of deleterious chemical products used as paper-making chemicals, and has been forced to suspend production at its factories.

Company A had traditionally used mainly European and American products, but due to the effects of the Suez Canal stranding accident, it became difficult to receive European and American products, so they requested Nihonkai Kagaku to expand the quantity of Chinese products.
However, Nihonkai Ka’s existing suppliers, Chinese manufacturers, experienced a decline in production capacity due to the effects of drought around the same time, making it difficult to cover the increased volumes.
Therefore, Nihonkai Kawa developed a new supplier in China as a second route and set up production and delivery for the increased quantity.As a result, we were able to secure and supply a 500% increase in quantity compared to the plan for the same year.

Normally, it takes time to develop new supplier routes, and the reality is that it is difficult to secure priority quantities in new transactions.
Even amid global turmoil, Nihonkai Kawa was able to take advantage of its extensive procurement network and strong negotiation skills in the industry to secure preferential quantities in transactions with new suppliers.
As a result, we were able to secure supply even under difficult circumstances, gain the trust of our business partners, and lead to subsequent sales expansion and even more stable supply.