To Survive the “2024 Problem”. Taiyo Kosan is entering the warehousing business with a “hybrid warehouse-type operating warehouse! ｜Interview with Taiyo Kosan Co.

The so-called “2024 problem” is that drivers will no longer be able to engage in long-distance transportation as they have in the past due to the cap on working hours imposed by the Workplace Reform Bill. The inability to transport goods over long distances will lead to a decline in sales for the logistics and transportation industry as a whole, as well as a decrease in driver income. On the other hand, logistics volume is increasing, so efficient transportation and reforms to realize it will be essential in the future. Taiyo Kosan, which has been operating a transportation business for 20 years in Nishi-Shirakawa-gun, Fukushima Prefecture, is one company that is working to solve the “2024 problem” by constructing a new “hybrid warehouse-type business warehouse” and starting a warehousing business. We interviewed Representative Director Kyokuyama and Advisor Kanno about how they came to this decision and their current situation.

We begin by asking Representative Director Kyokuyama about your company's business and features.

Taiyo Kosan Limited was established in 2003 as a transportation company. Thanks to our customers’ appreciation of our careful cargo handling, thorough management system, and ongoing safety efforts, we have continued to grow. We transport mainly industrial products such as auto parts and plastic parts, but we also transport food products. One of our strengths is our ability to respond flexibly to customer requests.

Like other transportation companies, we felt a sense of crisis when the “2024 problem” was widely discussed. We thought we had to try something different and realize more efficient transportation. Therefore, we acquired a new sales warehouse, and we worked to diversify our business by developing warehousing as well as transportation services. As a result, synergies were created between the two businesses, and we are now better positioned than ever to meet the expectations of our customers. I am now filled with anticipation for the future growth of the company.

Next, I would like to ask Mr. Sugano, Advisor. What has changed since you started the warehousing business?

We live in an era when many of our customers do not carry inventory. This reduces risk and cost, but does not allow for flexible response. On the other hand, if you leave your products in our warehouse, we can quickly ship the necessary amount at the time you need it. Rather than having to go to the customer’s factory to pick up the goods and deliver them to the designated locations, it is more efficient for us to use our own 2-ton or 4-ton trucks to deliver only what is needed from our warehouse, and we receive a delivery fee for each delivery. In addition, we also receive a storage fee for the duration of the contract, which is a big advantage for us.

Representative Director Kyokuyama, please tell us how you came to request our services.

We thought that a hybrid warehouse combining a membrane roof and a steel sheet exterior wall would be a good way to build a sales warehouse while keeping costs down. In addition, I wanted the warehouse to be stylish in both color and shape. So I did some research, and the fact is that Taiyo Kogyo was the only company I could find that could fulfill my ideal. The company’s brand power and sense of security were also significant, with Taiyo Kogyo’s membrane roofs being used in stadiums, airports, and world-class expositions, and we decided to commission the project, confident that this company would be able to give form to our ideas with a hybrid warehouse. We are often asked if we chose them because of the “sun” connection in the company name, but that was just a coincidence. It really was a coincidence (laughs).

Please tell us about your favorite points.

The most important thing is the exterior. We were given several colors in advance and chose midnight blue, which contrasts strikingly with the white of the membrane roof. The midnight blue color was used for the warehouse walls, and white lines were run on both sides of the three loading/unloading entrances to create a tight impression. The warehouse is eye-catching even from the nearby prefectural road, and we have received many comments such as, “The image of the warehouse has changed. Where did you commission the work? The warehouse has also been well received by other companies in the same industry.

In terms of functionality, I also like the outdoor cargo handling roof (workstations) that allow employees to safely and stress-free handle cargo regardless of weather conditions.

Advisor Kanno, how do you feel about its usability as a warehouse?

First of all, the membrane roof makes the inside of the warehouse very bright. During the daytime, you can work without turning on the lights, which saves electricity. In addition, the ventilation fan on the ceiling and large air intake ports on the walls keep humidity inside the warehouse. I was surprised to find that the humidity is kept at a constant level even during the rainy season. Recently, inexpensive corrugated cardboard is increasingly used for packing products, but it expands and deforms due to humidity, causing cargo to collapse. However, our warehouse can minimize such deformation, so customers can leave their goods with peace of mind. Currently, we are accepting parts for solar panels, but we can also handle foodstuffs such as rice, for example. In addition, the pillar-less structure allows for smooth cargo handling. Our employees also find it easy to operate the forklifts.

What is your vision for the future?

In order to do business with major manufacturers in the warehousing business, we must have our own sales warehouse due to insurance coverage for the goods we receive, and we have cleared this requirement. We have met this requirement. We would like to focus on sales activities in the future.

In addition, we joined the Japan Warehousing Association when we built our hybrid warehouse and started our warehousing business, and we would like to establish a system that allows us to cooperate with other companies in the same industry throughout Japan while taking advantage of its organizational strength. Currently, if we load cargo here and transport it to Osaka, for example, over a nine-hour period, the driver’s work is finished when he unloads the cargo. I would like to accomplish this concept within five years, if possible.

Representative Director Kyokuyama, any last words?

We were able to rely on Taiyo Kogyo not only for building codes and ordinances, but also for business warehouse permits and registrations, which was really helpful. We only had to make a few corrections to the various inspections, and we are very thankful that we were able to complete the project as originally planned.

While our competitors are struggling to find drivers, in our case, our employees are very helpful in introducing us to people they know and trust. In this case, the fact that we own our own sales warehouse as well as the treatment we receive is a key point of appeal.

This was all possible because of our encounter with Taiyo Kogyo. As we expand our business in the future, we are considering building a new sales warehouse, and we intend to contact Taiyo Kogyo at that time as well. I hope that Taiyo Kogyo will continue to support us as an important partner.

Thank you, President Kyokuyama and Advisor Kanno.