Kerry Logistics

Company Visit 4

Company Name : Kerry Logistics Network Limited

Company Address :  16/F Kerry Cargo Centre, 55 Wing Kei Road, Kwai Chung, Hong Kong

Date of Visit : 25 March 2015

Schedule :

1. Presentation of company information
2. Q&A session
3. Visit facilities

Company Background:

Kerry Logistics is a leading logistics service provider in Asia. They focus on integrated logistics and international freight forwarding businesses. The company has developed an extensive route network (KART) between China and other countries in ASEAN. KART is an unique road network solution across ASEAN such as  Vietnam, Myanmar.  It across over 35 countries and territories in ASEAN.

They manage approximately 39 million sq.ft. of logistics facilities. As a service provider, they offer a wide range of services to different customers in order to satisfy their need and increase their competitiveness in the industry. The VAS can directly enhance the reliability and flexibility to their clients.

Presentation of company information:

First, the slides show that Kerry logistics have more than 19000 employees. It is a premier logistics service provider in Asia. It has 7 types of warehouse and 12 warehouses such as air-conditioning cargo storage , frozen cargo storage and bonded cargo storage. Also, he has introduced the KART service which is an extensive cross-borders road transportation network connecting ASEAN and China. It will be different from the traditional method which are plane and ship. Kerry Logistics has provided different value added service to their customers, it includes labeling, kitting and GOH. This helps us to know more Kerry Logistic.

Visit facilities:

We have visit Canon's warehouse called Canon Regional Distribution Hub. It is one of the Kerry Logistics' client. First, the staff introduce some service background to us, including incoming shipments, unpacking and outbound shipment. They show us how they add value to their product or service and how they divide the duties to different staff. They also show us how the staff to use the handling machine to move the freight in the warehouse.  After that, we have look around the hub.

Q&A

1.  What are the competitive advantages of Kerry Logistic compare with FedEx, DHL and USP?

Actually Kerry Logistic is different from FedEx and DHL. Kerry Logistic is providing B2B (Business to Business) Service. FedEx, DHL, and SF Express are providing B2C (Business to Consumer) service. Therefore, they are not competitors of Kerry Logistics. Since Kerry Logistics providing the large network service in Asian called KART, Kerry is still the leading logistic company in Asian. Many company will use this services, including FedEx and DHL. Besides, Kerry will invest large amount of money, time in developing their company to have more market share in different region. Therefore, Kerry Logistics have make use of their creative ideas, information technology and their unique services such as KART to be their competitive advantages.

2.   Besides RFID, what technology have you used for inventory tracking?

In Q&A session, the speaker mentioned that the use of RFID is not common for them and their clients due the operation of warehouse. But the RFID technology can  definitely help the company but do not contribute a lot.

Besides, the company is using KerrierWMS for their inventory management system. EDI is used in the system and whole operation. It has bar code and scan pack capability in order to make things more convenient. The unique system has multiple putaway, allocation and picking strategies to  handle different cases. It interlink with web-based logistics operation and offer real time stock movement and the status of inventory.Moreover, various inventory report (eg, inventory adjustment report and cycle count report) can be done in the system.

3.   Unlike your competitors, Kerry is an asset-based logistics company. Obviously, it reduces some uncertain market risk such as the raising rental cost. However, it will potentially reduce the future liquidity and flexibility in long term.  Why do you have this plan or strategy?

Kerry Logistics expressed that hardware is very important to logistic industry. Warehouses are used to store the goods. The capacity of warehouse affects the number of orders that can be handled. Therefore, Kerry Logistics would like to have their own asset to be the warehouses. It can make sure the stability of the capacity of warehouses. As the capacity of the warehouses is stable, Kerry Logistics can depend on the demands and requests to arrange the warehouses.

4.   Recently, Kerry logistic proposes to reconstruct the warehouse to columbaria.  Why does Kerry have this plan instead of expanding the business so that the warehouse capacity can be fully utilized?  Is this action implied that Kerry do have confidence with your core business?

First of all, the warehouse is the asset of the parent company of Kerry Logistics. The strategy of changing the purpose of the warehouse is decided by the parent company. However, it is not because there is any problem of the business of Kerry Logistics.The staff of Kerry Logistics said that the warehouse capacity were almost utilized. As the warehouse, which is planned to reconstruct to be columbaria, is used to store the documents and help the company to scan documents into electrical form, it is easy to transfer this service to other warehouses. Also, parent company may think the columbaria service is more profitable. Therefore, it would like to reconstruct the warehouse to columbaria.

5.  How can Kerry Logistics use the information system to enhance its effectiveness and efficiency?

Kerry has developed a platform called KerrierVISION. It combines with KerrierWEB KerrierSCV KerrierVBO KerrierTrack KerrierEPOD Kerrier T&T. The platform is customized to meet various types of customers. Inventory management, order making and tracking system and other functions are included in the IT systems. Not only the company can use it to manage and monitor their operation but also provide and platform for clients to receive the updated information and data sharing. It can greatly enhance the company's effectiveness and efficiency. It also increases cost effectiveness to their customers.

On the other hand, Kerry has created an application for customers to use their services. Customers can track their parcel through their smartphones and receive the latest information. By using the apps, users can scan the barcode and use electronic signature to handle the parcel. It can directly shorten the operating time and reduce paper work. 

6.   On your official website, you stated that you’ve provided exemplary cleaning and repair services for "your" ISO tanks. It's not clear here if the ISO tanks are provided by Kerry itself or the customer.  Could you please elaborate?

ISO tanks are provided by customers themselves. The ISO tanks can transport bulk liquids of both the hazardous and non-hazardous varieties, in an environmentally friendly way, as well as efficient and safest mode. In Kerry Logistics side, it provides an ISO tank solutions for customers to enjoy full cleaning and repair services of their ISO tanks in order to keep the ISO tanks at the highest standards in the industry.

7.   What do you do to protect the goods from being damaged during transport?

Kerry Logistics has given great care to all the things they handle especially for the high valued goods. For example, they put some bubble paper or blanket into the space of the boxes that can absorb shock so as to avoid the product being hurt. Some will add a stand to fix the product position in the boxes such as Garment on Hanger (GOH) in order to maintain the garment at their best situation.

8.   How does Kerry Logistics compensate their customers for loss due to the damage of goods?

Every time when they sign a contract, they will set up a maximum limit for the liability they can bare for. If there is a damage or loss of goods, they will first check carefully how and why will the damage/loss happened. If they find it is their fault after inspection, they will compensate to customer and try their best to recover the trust from the customer.

9.   How does KerrierVISION support your operation?

The main function of KerrierVision is similar to its mobile app, which is designed to meet the individual needs of every customer. It provides an online platform for users to check the inventories, freight, purchase order and delivery tracking, in order to increased cost effectiveness of the users. Through KerrierVision, users can connect all parties of the supply chain, aims at  monitor the situation well. The usage of KerrierVision is mainly for International Freight Forwarding, it can let users to check the inventory status, even the users are from overseas.

Reflection

It is a great experience for us to learn about the logistics industry and how they can add value to their services. Although we have already known that Kerry Logistics is a very complex and huge company through the pre-visit research, it is still be amazed by the presentation of Kerry Logistics. We understand more deeply about their business structure, operation flow and their different aspect of services. Also, it gives us a chance to learn to work with others and develop interpersonal skill and leadership skill.

References:

PowerPoint presented by Kerry Logistics

http://www.kerrylogistics.com/eng/OUR_EXPERTISE/InternationalFreightForward/iff.jsp

http://www.hktdc.com/services-suppliers/Kerry-Logistics-HK-Ltd/en/1X00L9KP/

http://www.kerrylogistics.com/eng/OUR_EXPERTISE/InternationalFreightForward/roadrailfreight/kart/kart.jsp

Hactl

Company visit 3

Company Name : Hong Kong Air Cargo Terminals Limited (Hactl)
Company Address : SuperTerminal 1, 9 Chun Wan Road, Hong Kong International Airport, Hong Kong
Date of Visit : 13 March 2015

Schedule :

1. Video showing
2. Visit facilities
3. Q&A session

Company background

Hong Kong Air Cargo Terminals Limited (Hactl) is one of the world’s leading air cargo terminals and the only neutral air cargo terminal operator at Hong Kong International Airport. Since 1976, Hactl has operated almost 40 years and established to support the import, export and transshipment of air cargo in Hong Kong. With the innovative technology, excellent service and professional employees, Hactl becomes the leader of the air cargo industry in Hong Kong and until now.

In order to maintain the daily operation smoothly, Hactl has total floor area up to 395,000 sqm and total site area up to 175,600 sqm which can handle the capacity up to 3.5 million tonnes per annual. To provide diversity services to their customers, Hactl has different kinds of system and facilities.

Hactl has Automated Cargo Handling System, which included Container Storage System and Box Storage System. Also it has several number of automatic transfer vehicle and workstations to ensure the system function well. Besides, Hactl has Special Cargo Handling Facilities, which included Dangerous Goods Store, Express Centre Airside Transfer Frontage, Livestock Handling Centre, Livestock Room, Onboard Courier Centre, Radioactive Goods Store, Refrigerated Cargo Centre, Twenty-Foot ULD Handling Centre and Valuable Cargo Handling Centre.

Video showing

In the beginning, the staff have show a video for us. This video has introduced the duty of Hactl. It has briefly describes the facilities and services offered by the company. It has serves 1000 airlines and 10000 other customers. It also introduce the information technology - COSAC-Plus.

Visit facilities

Q & A Sections

1. One of your service you provided indicated that “The first 48 Hours (from 0000 hours on the day of arrival & the Sunday and Public Holiday within the storage-free period)”, will there be large demand for such service?  How do you match the supply and demand if the service is free?

The storage fee depends on the type of cargo and the duration. For import general cargo, the rate for the first 48 hours (from 0000 hours on the day of arrival & the Sunday and Public Holiday within the storage-free period) is free. The Following days will be charge to $2.4kg per day. For Import Valuable Cargo,  the rate for the first 48 hours is free and charge $2.4kg per day for the following 3 days. However, there is a min. $300 shipment per day for the 4th day onwards.

In fact, the answer did not mention in the visit. We think that the free service will not directly affect the demand. Since service level is important to business (Hactl and their clients), they want to provide the fastest way to deliver their good to final destination. Therefore, Most cargo will be transshipped by using other transportation mode(eg. Truck) to send to the final destination as soon as possible. There are small proportion of cargo will be stored. In fact, if the cargo is stored, the more fee you have to pay.

They did not mention how to match with the demand. We think that it may be the use of EDI and COSAC-Plus or other information system to forecast the supply and demand.

2.  How does the development of HACIS (Hong Kong Air Cargo Industry Services Limited) help facilitating the shipping processes of HACTL?

Hacis is subsidiary of Hactl to provide logistic services. Hacis provides efficient road feeder services in Hong Kong as well as connecting to mainland China. It helps facilitating the ship process of Hactl. Hacis' SuperLink China Direct offers two-way customs-bonded road feeder service. This is connecting Hong Kong International Airport and China. Also, Hacis' trucks are registered with Intermodal Transshipment Facilitation Scheme (ITFS) and Quick Pass Mode (QP), offering non-stop transportation across the border. Therefore, Hactl and Hacis provide a series of service to customers to ensure good quality.

3.      How will you respond to the increasing demand caused by the third runway?

Hactl support to construct the third runway. The introduction of Hacis to support the third runway. The expert predict that the cargo capacity of Hong Kong will be fully used due to the third runway. The Hacis can balance the fulfilment between Hong Kong and Southern China, which means the cargo is collected in hk and moved to another airport that has spare capacity. Both parties can win in this situation and it enables hk to continue to work as a hub to meet the demand.  On the other hand, the company is collaborating with HDHL to find out more business opportunities to form joint ventures and work with other airports in mainland china. Besides, the company is also explore a new multi modal transhipment service in order to offer the best and more efficient service to their clients. 

4. Since the demand on air cargo has recently been increasing, how do Hactl deal with this problem and ensure your service quality?

To face with the increasing demand on air cargo, Hactl aims to remain their leading position of air cargo terminal in Hong Kong. In order to achieve this, Hactl is living up to their core values, which are Trust, Respect, Professionalism, Integrity and Teamwork. As they believe that when they can fully understand those terms and perform them well, they can give the best things and services to their customers.

Besides, Hactl is continuing invest in innovative technologies and enhancing the logistics supports between Hong Kong and mainland China in order to optimise their operations and resources. Also, Hactl is consistently engaging the best and professional people who can deliver excellent service in their business, in order to fulfill the customers’ expectations.  

5. It was mentioned on your site that the latest Hactl drill demonstrated that systems could be fully resumed in a maximum of four hours should there be a system failure, has there ever been such failures in the past when such precautions were not in place? How did it affect your operations?

If the system of Hactl has failure, it would run reserve system automatically. The daily operations, such as packing, distributing and retrieving the goods, would operate as usual. As the data would be backed up, the reserve system can retrieve the data from the backed up data. It can have the most updated storage location of all the goods. According to the introduction by the staff of Hactl, there is not a failure in the past when such precautions were not in place.

6. Listed under 'Special Cargo Handling Facilities' is a livestock room at Hactl, what exactly does this entail and how do you handle it when there is outbreak of influenza virus?

Special Cargo Handling Facilities include many facilities, such as dangerous & radioactive goods storage, express centre and livestock handling centre. Livestock handling centre is used to serve the travelling animals and pets. It provides the most comfort environment to them.

In 2008, Hong Kong hold the 08 Olympic Equestrian Events. Hactl was responded to transfer the horses for competition. A special livestock handling centre was built for the horses. The centre was decorated as the normal stable. Also, the horses for competition were accompanied by their parents. Those aimed to provide a comfort environment to them. This could help the horses to not be afraid of travelling.

For the question of handling the outbreak of influenza virus, the staff of Hactl did not mention on that day.

7. In the age of globalization, will you consider to expand your business overseas?

For Hactl, expanding their business overseas is not their main focus right now. They are trying to expand their market share in Hong Kong by different ways due to the establishment of the air cargo terminal operator of Cathay Pacific. In order to fully utilized their assets and capacity, they are putting more effort on cooperating with small and medium-sized enterprises (SMEs).

8. How do you make use of the automation to improve your efficiency?

Hactl believe that automation machine is very important. It can lower number of mistake, fasten the process and improve efficiency. Therefore Hactl has established different automation machine.

First, Hactl has a system called Box Storage System (BSS). It provides 10,000 computer-controlled storage positions for general import, export and transshipment cargo. It is customs-bonded with maximum security.

Also, the other facilities called Container Storage System (CSS). It is automated multi-floor system that provides more than 3,500 storage positions. The system has direct and covered interface with the airside.

In the warehouse, it has a yellow car called ATV. It helps to deliver the product to designated place. It is charge by electric. It is more environmental friendly. It will be efficiency than by doing manually.

9. What have you done in the environmental protection aspect?

To protect the environment, Hactl is using the electronic machines such as electric forklifts to unloading goods, using electronic automobile for the travelling within the airport area. They have 2-3 electronic charger within their building. Each forklift can use for 7-8 hours after charging. Also, they have other environment policy within their operation and building design. Other than the basic 3 kinds of recycling, they have also collect CDs, batteries and plastics for recycling. They Airway-bill to customers, can also help reducing the amount of paper used. Moreover, their building has a garden above that can reduce the use of air-conditioning and the air quality controlling that can provide better working environment to employees.

10.  How Hactl apply information technology in company operation in order to enhance its competitive advantages?

To maintain the efficiency of daily operation, Hactl develops COSAC-Plus which has more than 400 functions online to enhance their competitive advantages. Since there are over than 100 airline information such as airline schedule, COSAC-Plus is designed to facilitate efficient information sharing among all stakeholders. Besides sharing the information, users can also use COSAC-Plus to pursue the commodity. Users can make sure the safety of the commodity and whether it can arrive the terminal on time.  

Furthermore, some functions are available on mobile phones that users can insert the commodity number through the COSAC-Plus mobile app to pursue it. They can predict the arrival time of the commodity by searching the number, then they can prepare the jobs after receiving the commodity effectively and efficiently. Besides, users can use electronic bill of lading to take their commodity to reduce the usage of paper in order to protect the environment.

Reflections

We all have a great experience to the visit in Hactl. We can know more about the operation, service type and the related supporting activities of air cargo. We think that the reasons why they are so successful are their core values, which are Trust, Respect, Professionalism, Integrity and Teamwork.

Moreover, the company try to do their best in order to satisfy their client’s need and it makes Hactl so competitive in the industry. We realize that Hactl has put huge resource to improve the service and solve the safety problem. Also, the use of information system is another factor to contribute.

References:

http://www.hactl.com/en-US/Facilities/Box-Storage-System.aspx
http://www.hactl.com/en-US/Facilities/Special-Cargo-Handling-Facilities.aspx#.VT5BENKqqko
http://www.hactl.com/en-US/About-Hactl/Company-Profile.aspx#.VT5BG9Kqqko

Yakult

Company Visit 2

Company Name : Hong Kong Yakult Co., Ltd.

Company Address :  4 Dai Li Street Tai Po Industrial Estate Tai Po, New Territories, Hong Kong

Date of Visit : 06 March 2015

Schedule

1. Visiting the production line

2. Presentation of company information and Tasting
3. Video showing
4. Q&A session

Company Background

Yakult Honsha Co., Ltd is established by ​​Dr. Minoru Shirota in 1930. In 1935, he finished its research and sold the first Yakult. Yakult is a probiotic product. It is a mixture of milk, sugar, dextrose and bacterium Lactobacillus casei Shirota. Nowadays Yakult have sold in many countries such as Brazil, Taiwan and Hong Kong. Hong Kong Yakult Company Limited is established in 1969. It is very successful in Hong Kong. It can buy in many places no matter in supermarket or small store. Every people remembers their slogan “Have you drink it today?”.

Yakult’s Product in Hong Kong:

There are three products sold in Hong Kong. They are Yakult, Yakult (Low Sugar) and Bansoreicha.

The Production Line of Yakult

The Yakult’s staff has show us the production line. First, he told us the bacteria is straightly come from Japan. They show that Yakult will use a fertilization tank to produce more bacteria. After that, we saw few boards showing the history of Yakult. This lets us to understand the evolution of the container and some detail about the founder of Yakult. We have seen the production steps. It includes molding room, processing room and the filling room. It has three production lines in the processing room. During the visit, we have seen many pictures of their advertisements and some of their products.

Presentation

Yakult's staff give a presentation that about the birth of Yakult. In 1930s, Japanese has to face difference intestines diseases and hard to prevent it. Dr. Minors Shirota recognised this problem and start investigate the solution. By using 5 years, he successfully produced the first Yakult, which contains live lactobacillus to help us maintain healthy intestines and prevent those diseases. Besides this, the staff told us some of their supply chain system. They show the process of how their products deliver from the factory to the customers. They have give us one Yakult to try. It seems only little different from those bought in supermarket. Because it just produce one to two days which is fresher than the one bought in supermarket.

Video Showing

After the presentation of the birth of Yakult, we have seen a video talking about the harmful of Escherichia Coli in our body and the difference of our intestines between drinking Yakult everyday and did not drinking it.

Escherichia Coli is a bacteria that will make our small intestines cannot function well and cause us diarrhea. The video shows that if we drink Yakult everyday, the live lactobacillus in Yakult will kill all the Escherichia Coli in our small intestines and maintain our digestive system function well. That’s why we always see their advertisement promote us to drink a Yakult. This is healthy for us to consume it.

Q&A Section

1. How can Yakult deal with the increasing demand in China?

For making sure the quality, the products, which are produced in Hong Kong, would be only provide to Hong Kong and Macau. To develop the market in China, Yakult set up its first branch in Mainland in 2001. It located in GuangZhou. In 2002, the first factory in Mainland was built in GuangZhou. As the demand in the Mainland has increased yearly, Yakult has built continuously. Nowadays, there are 6 factories in Mainland. They are located in GuangZhou, ShangHai and TianJin. They cope with the demand of the market in Mainland. However, the demand is still increasing. Yakult plans to build more factory in Mainland.

2. As your company advocates customer to drink one bottle of Yakult per day, do you think this hinders the sales of products? Are there any methods to improve the daily intake under health consideration?

For problem of improving the daily intake, since the claimed 10 billion probiotics per day is already enough for a human. It will be only a waste of probiotics for in-taking more than enough. For the sale of products, although the catching phrase may hinder the sales amount, there may still have some unpredictable events that affect the demand of the product. Thus, they still need to use past data to forecast their sales.  

3. How can Yakult maintain the profit by your current product line? Will Yakult develop more different ways to yield more profits (e.g. more flavor)?

The setting up of Yakult is aimed to use low cost to bring health to public prior than earning profit. Thus, their development direction is not yielding more profit. Also, Hong Kong’s production line is small, the production capacity is already saturated for fulfilling the demand of Macau and Hong Kong itself. So they may not consider of producing more flavor in coming future.

The way to maintain their current sales is to maintaining the product quality. Their salesmen keep on checking the store environment and tracking any expired inventories in the store as to ensure customer can have the best product.

4. Will you consider providing other sizes (volume) of Yakult?

No, the size of Yakult in Hong Kong is 100ml and will remain unchange. A person only needs 10 billion probiotics per day to help strengthen our immune system and prevent harmful bacteria reproduce in our body. In Hong Kong, the size of Yakult - 100ml already includes 10 billion live lactobacillus and it is one of the probiotics. Therefore, Yakult size will not be changed and always suggest people to drink it once everyday.

5. What have you done in the supply chain management to handle this kind of perishable products?

Yakult has its supply chain to handle the perishable products. First, Yakult manufacture the product in the Tai Po factory. It includes many steps to produce a Yakult. For example, sterilisation,  filling, capping and sealing. In the product, it has suitable amount of sugar and dextrose in order to keep the lactic acid bacte alive. After producing, it will move to storage. Since the operating hours is 0830 to 1730, all the products will store in a refrigeration room for one to two days. Then, Yakult use its three 16 refrigerated tons trucks to deliver to two offices, Fo Tan and Kwun Tong. The products in Fo Tan will deliver to store or supermarket in New Territories and Kowloon West. For Kwun Tong, it will deliver to Kowloon East and Hong Kong Island. Different place has its office. Also , it will deliver to Macau with container. Every step includes refrigeration system to keep the perishable products.

Besides, there is some trained salesman to check the product in the store to ensure the quality. If the store has expiry products, Yakult will replace the product until all the products have sold.

6. How do Yakult prevent the leakage of the secret of its recipe?

Although it did not mention about it during the visit, however, the ingredient is public. It includes water, skimmed milk (reconstituted), glucose-fructose syrup, sugar, maltodextrin, flavouring, contains Lactobacillus casei Shirota. Dr Shirota was got a patent for this unique strain of bacteria. The patent of bacteria makes Yakult so successful in healthy drink.

7. How can Yakult ensure the level of probiotics in the Yakult is in the ideal/ appropriate amount when it reaches to the end customers?

Since Yakult is a fermented milk drink and it contains some live bacteria, the company has a strict hygiene standard in production and transportation process. In early stage, the live Lactobacillus casei Shirota strain are tested in Yakult laboratory and then added to the Fermentation tank. The temperature of the tank is kept at 37°C in order to ferment in the tank until the quantity of Lactobacillus casei bacteria reach their ideal concentration. In transportation stage, the finished products are wrapped and stored at 2-3°C to wait for delivery. Yakult uses 3 large refrigerated trucks to deliver Yakult to the warehouses of the major office (Fo Tan, Kwun Tong). Next, the products are delivered directly to different stores or supermarket. Yakult has a Quality Management Program to ensure the quality. They collect some samples from production process to do some analysis. Yakult testing involves more than 120 samples per production run and check the potential contaminants, microbiological quality, composition etc. the quality assurance not only measure the quality level but also the personnel and factory standard, for example, equipment cleaning, processing methods. The Hazard Analysis and Critical Control Points (HACCP) principles can strictly ensure the quality of Yakult.

8. Your website showed that you were planning on introducing Yakult to Ahmedabad, India in Feb, 2015. What does it drive your introduction? Did you collect information from local about their likes and dislikes? Otherwise, how do you determine which place and when to introduce the product? And how do you minimize risks (for instance of unsatisfied customers)?

Yakult has done a research in India. In the research, there were two group of people. One group drunk Yakult everyday. The other group drunk placebo everyday. The research found out Yakult can help them to build up resistance. As the water pollution problem is quite serious in India. The Indian are always sick. They always have intestinal diseases. Therefore, Yakult would like to introducing its products to Ahmedabad where is in India Yakult hopes its product can help the Indian to be more healthy. 

Yakult decides, where the place for introducing its products, according to the healthiness of the people in that place. Yakult aims at helping all of the people to be distinct from intestinal diseases. Therefore, they would introduce its products in the place that there are always disease like India. However, it would also forecast the profit before the introduction of products. It is because Yakult also needs to balance the revenue and expenditure..

9. Yakult provides home delivery service in Mainland China, Japan and Korean areas. Why don’t you provide such service in HK? 

Yakult has provided an unique service, home delivery service, to its customer. They want customers to buy their probiotic products in a convenient way. Yakult ladies will deliver the product to customer and provide lactic acid bacteria to customer. This lets consumer easy to enjoy the Yakult and understand more product’s information. 

This service has provided in Japan since 1963. Besides Japan, many countries provides home delivery service, such as Mainland China and Singapore. Hong Kong have launched this service in 1969. After a year, Yakult has stopped this service due to few reasons. First, there are different sales mode in different countries. Hong Kong people do not like to deliver product to their home. This is totally different to Japan. Also, it has different buying behavior. By comparing to other places, Hong Kong is relatively small. People are easy to buy product in a short period of time. Therefore, home delivery service is not popular and Yakult stop this service in Hong Kong.

10. Your company has different products in different countries. However, the products are sold locally. Why don’t you sell all types of flavor in all countries?

First of all, the production capacity is limited in Hong Kong. It only contains 3 production lines so the flavor variety is limited. Also, since Yakult do not contain any preservative, it is hard to have mass production with various taste. Besides, there are many competitors in overseas so the company invent different flavor in order to differentiate their products. However, there is not many competitors in Hong Kong so the flavor is limited.

11.  Would you have other sustainable policies other than the bottle recycling (e.g. plastic cover)?

Yes, there are different sustainable policies in Yakult. Since Yakult contains bacteria, even the bacteria is good one, the recycled bottle cannot be reused for Yakult again. However, the bottle will use for other purposes, such as making plastic bottle and making artificial limb. 

Besides, Yakult has a goal of making the company becomes green by offer products and services that are in harmony with the environment, operate factories and offices that minimize the environmental impact. In order to achieve this, Yakult focus on the realization of a low-carbon society, promotion on efficient use of resources, and preserve biodiversity to create a sustainable society.

Reflection

In the visit of Yakult, we saw the production line of its company. The first impression is the factory is not big. However, it can provide enough products to cope with the demand in Hong Kong and Macau. Furthermore, As the nature of the Yakult product is perishable, Yakult is required to forecast the demand very accurately. Yakult have done a well job in this. It forecasts the demand weekly and has an accurate the result. Therefore, there are not stock out problem or excess inventory problem.  

Also, we appreciate its aim. The main aim of Yakult is helping people to be healthy rather than making profit. Moreover, we increase the knowledge of the Lactobacillus casei Shirota, the function and the effectiveness of protecting our digestive system by watching a video clap. It was an enjoyable time of having fun, drinking Yakult and taking group photos with the mascot dolls.

References:

Yakult presentation contents
http://en.wikipedia.org/wiki/Yakult

http://www.yakult.com.hk/co_dr.htm
http://www.yakult.co.jp/english/company/history.html
http://www.yakult.com.cn/company/history.html