Jun 2, 2015

Suzuyo puts up local subsidiary in the Philippines

Suzuyo & Co. has recently established the local subsidiary Suzuyo Whitelands Logistics, Inc. in the Philippines jointly with a local logistics provider and another partner, kicking of operation at the new office on June 1. It has long been engaged in the international transport of goods to/from the Philippines through its partner, UPS, but with the launch of its Philippine subsidiary, it aims to shift to independent domestic logistics operations toward the expansion of its business interests in the country. It also plans to promote in the Philippines the horizontal deployment of the temperature-controlled logistics services it currently offers in Thailand. The new venture will start with domestic transport and delivery, but Suzuyo will also consider the construction of warehouses with constant temperature storage functions in the future while monitoring the progress of its business.

Suzuyo has been stepping up the reinforcement of its bases in the growing markets of the ASEAN region through such moves as putting up a local subsidiary in Indonesia in September 2011 and a branch for its Thai subsidiary in Yangon, Myanmar in December 2012.

In the Philippines, it opened a resident office in Manila in 1995. Since then, it has been advancing the development of a system aimed at addressing the needs of customers, conducting market research and building logistics in the country.

The Philippine subsidiary will be Suzuyo's joint venture with the local consulting/investment company iCube and its local logistics subsidiary Whitelands Express. As the logistics firm of the Philippines' sugar trader All Asian Countertrade, Whitelands offers container drayage using its own vehicles, warehousing and domestic transport services.

Suzuyo Whitelands Logistics has two Japanese and nine local staff members. Its employees are stationed at its headquarters in Paranaque City, which is located in the outskirts of Manila, and in Cebu.

It already customers has customers in the Philippines such as companies related to parts for four-wheeled/two-wheeled vehicles, but its marine/air export/import forwarding needs continue addressed based on its partnership with UPS.

With regard to the development of domestic logistics in the Philippines, Suzuyo aims to differentiate itself from the competitors in the market by offering controlled temperature logistics and other value-added services. In the ASEAN region, it has a track record in handling chilled products in the long-distance store delivery services for convenience stores in Thailand since 2012. It controls the quality of all its vehicles as company-owned vehicles and has not yet experienced cargo damage and other problems, thereby winning more trust from its customers.

Interest in food safety has been growing in the Philippines following the rise in the country's standard of living, but in reality, there are still occasional cases in which fresh products being hauled by flat body trucks that are covered only with towels. Akihiko Takahashi, president of the company (deputy manager of the logistics division, in charge of overseas bases), claimed that, "We have been approached by companies that have dealings with us in Thailand, and we hope to capitalize on the know-how we have cultivated in Thailand for our business in the Philippines." It will target all customers, regardless if the company is Japanese-affiliated or local investor-funded, with the company already in talks about multiple potential projects.

Suzuyo will use the vehicles of its partner company for the time being. As soon as it secures the necessary permits from the proper authorities, however, it plans to deploy around 10 company-owned vehicles to its services in the country, including drayage trucks and temperature-controlled vehicles.

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