Addressing the growing complexity of the supply chain Consolidating business processes to improve resilience

 

STANDAGE Co., Ltd. (Minato-ku, Tokyo, CEO: Akinori Adachi, hereinafter referred to as Standage), which develops and provides digital trade platforms, has started offering a new service called "Logify" together with Sankyu Co., Ltd. (Chuo-ku, Tokyo, CEO: Kimihiro Nakamura, hereinafter referred to as Sankyu) to improve the efficiency of parts procurement operations for the manufacturing industry. In the current unstable global situation, the supply chain structure has become more complex, making it increasingly important for the manufacturing industry to improve the efficiency of procurement operations. By combining Standage's digital technology with Sankyu's logistics functions, this service not only improves the efficiency of procurement operations, from parts ordering and inventory management to payment with suppliers, but also contributes to off-balancing inventory and improving cash flow.

 

■ Background of the development of "Logicify"
Standage and Sankyu began their capital and business alliance in March 2020 and have been jointly developing solutions to improve trade and logistics operations, such as expanding sales channels in the manufacturing industry and streamlining logistics processes.
On the other hand, the recent instability in the global situation has led manufacturers to reassess their supply chains, resulting in structures that are more complex and diverse, making it more important than ever to improve the efficiency and resilience of procurement operations.

In the manufacturing industry, it is common for procurement tasks such as ordering, logistics, and payment to be managed using separate methods and systems. This means that each step of the process requires separate tasks and responses, making procurement operations cumbersome.

Against this background, Standage and Sankyu brought together their respective strengths, and with the cooperation of major financial institutions on the financing side, they developed and provided "Logicify."
This service will contribute to resolving procurement issues by consolidating different business processes into one contact point and establishing a scheme for integrated contracting and management between the two companies. In addition, by working with major financial institutions, it will also be possible to obtain the funds required for parts procurement in a timely manner.

In a demonstration conducted prior to the launch of the service, the introduction of this service's mechanism succeeded in reducing procurement fees by 50% and procurement work time by 70%.

■ Overview of "Logicify"
The service name "Logify" is a contraction of "logistics" and "finance."
The specific services provided and the roles of the two companies are as follows:

・Service details
① Procurement agency:Parts ordering, logistics and inventory management
②Provision of finance services:Payment with suppliers, off-balance sheet of parts inventory

・Role of each company
Standage:Arranging necessary trade documents and settlement procedures as an import/export business (utilizing a system developed in-house)
Sankyu:Import/export customs clearance, storage and transportation related operations
Partner financial institutions:Providing usance through trade finance (debt assignment agreement)

By providing and expanding this "Logify" service, Standage and Sankyu will contribute to improving the procurement operations of many manufacturing companies.

 

■About Sankyu
The company offers a wide range of logistics services, including general port transport and truck transport, as well as international logistics, warehousing and machinery construction. With many of the country's leading manufacturing companies as major shippers, the company is involved not only in logistics services such as packaging and inventory management, but also in plant engineering services such as plant construction, installation, maintenance, renovation and dismantling. It is a pioneer in the field of heavy goods transportation and installation. It also operates its own domestic container ships. Together with Nippon Express and Nissin, the company is known as one of the "Big Three of China's Logistics," and its group's annual sales are 9th in the domestic land transport industry, with over 30,000 employees across the group.

 

■About Standage
Established in March 2017. Opened an office in Nigeria in December of the same year, and established local subsidiaries in Kenya, South Africa, and Egypt in 2021. Provides "Digitrad," a comprehensive digital trade service that can complete all trade operations, from matching trade sellers and buyers to payment, financing, and cargo delivery. For payments with emerging countries, it has developed a safe, inexpensive, and fast payment system using blockchain and crypto assets. By combining trading company functions with tech, it aims to create a society in which domestic small and medium-sized enterprises are seamlessly connected to the rest of the world.
◇“DigiTrad” service official website: https://standage.co.jp/digitrad
Established: March 2017
Representative: President and CEO Akinori Adachi
Capital: 548,240,000 yen (including capital reserve of 272,620,000 yen)
URL: https://standage.co.jp/