Mitsubishi Logistics Group Entrusted as LLSP by Mitsubishi Motors' Manufacturing Subsidiary in the Netherlands

Sep. 10, 2008

Mitsubishi Logistics Group was selected by Netherlands Car B.V. (hereinafter NedCar), Mitsubishi Motors Corporation's manufacturing subsidiary in the Netherlands, as LLSP for production of the sport-utility vehicle Outlander. Delivery management is already underway for knockdown parts of the Outlander, which started full production in August 2008. (LLSP, or lead logistics service provider, is an approved logistics company that manages various logistics vendors, while establishing and controlling the logistics process, aiming for maximum profit on behalf of the customer.)

With a great deal of Mitsubishi Motors Corporation's manufacturing of Outlander for the European market to be transferred from Japan to NedCar in Born, the Netherlands, transportation of a huge volume of knockdown parts from Japan to the Born plant is expected. As knockdown parts require a strictly fixed transportation schedule, NedCar realized the need for an LLSP able to provide comprehensive control of the transportation process and sequential container delivery (delivery synchronized with manufacturing). After conducting the selection process for a logistics company that can satisfy such requirements, NedCar appointed Mitsubishi Logistics Europe B.V. (headquarters in Rotterdam, the Netherlands) as LLSP. Responsibilities start with obtaining delivery schedule data and shipping information and cover the comprehensive control of ocean transportation conducted by various shipping lines, continental river transportation from the port of Rotterdam to the local barge terminal and trucking to the factory. LLSP service also includes managing the return shipment of returnable racks. As LLSP, Mitsubishi Logistics Europe is also establishing a backup system to ensure emergency transportation arrangements when needed due to harsh weather and other factors that may create changes in the transportation environment. To handle the issuance of delivery instructions for 50 containers per day, they established a computer support system in which shipping information is collected through an EDI (electronic data interchange) connection with customers and sequential delivery is arranged via their in-house progress management system.

Mitsubishi Logistics Europe was appointed NedCar's LLSP based largely on its credentials accumulated through years of experience as LLSP for parts procurement from Europe and Asia to Mitsubishi Motors' Nagoya and Mizushima plants. Here, LLSP responsibilities extend from parts pick-up, to multimodal transportation by ship and air, and JIT (just-in-time) delivery. Mitsubishi Logistics Europe strategically employs a transportation progress management system that provides the customer with logistics visibility for shipment, transportation, storage and delivery. Mitsubishi Logistics' accumulated know-how in automobile parts shipping, including implementation of their dedicated engine rack, greatly contributed to this appointment. As LLSP, Mitsubishi Logistics Europe provided the multimodal transportation service, from packing in Japan to delivery in the Netherlands, for equipment used in the Outlander production line, such as welding jigs and molds.

Additionally, Mitsubishi Logistics Europe is forming a cooperative framework with NedCar for the transport of other procurement parts from within Europe. By providing across-the-board support throughout NedCar's operational area, Mitsubishi Logistics Europe aims to gain headway in other new businesses in the region. The Mitsubishi Logistics Group as a whole is working to enhance local business by expanding their LLSP operations to other areas and new customers.