Growth Strategy (Medium-Term Management Plan)
In July 2021, we announced a four-year Medium-Term Management Plan that covers the period from the fiscal year ending May 20, 2022 to the fiscal year ending May 20, 2025, in order to enhance our corporate value and survive in the intensifying competition in the EC market.
Under our Medium-Term Management Plan, we adopted the target of “Transformation from an Office Supplies Mail-Order Company” and we will carve out a position as an infrastructure company to support all workplaces and lifestyles. In order to achieve the target, we will steadily implement the four key strategies: Strategic Areas and Expansion of Product Lineups, Establishment of the Most Powerful B-to-B E-Commerce Website, Synergies with Z Holdings, and Reform Platforms.
Note:
1. The information on this page is current as of the announcement of the Medium-Term Management Plan (FY5/2022 – FY5/2025) in July 2021.
2. Z Holdings Corporation reorganized the group on October 1, 2023, merged with Yahoo Japan Corporation, LINE Corporation, and other companies, and changed the corporate name to LY Corporation.
Basic Policies
We will pursue management based on three basic policies: sustainable management, which is required as a corporate responsibility; maximize customer value, which is indispensable for the realization of ASKUL’s growth; and transformation to a highly profitable model to enhance corporate value.
Management Indicators
In the fiscal year ending May 20, 2025, we aim to achieve consolidated net sales of ¥550.0 billion, an operating profit ratio of 5.0%, and return on equity of 20.0%.
Key Strategies
Strategic Areas and Expansion of Product Lineups
The medical domain and the MRO domain are large markets that are considered growth markets, since e-commerce is poised to expand. Among the sectors with the largest number of registered B-to-B customers at ASKUL, the medical institution/nursing care facility (medical domain) and manufacturers (MRO domain) are positioned as the two largest strategic sectors for ASKUL. We aim to expand our lineup of specialized products (long-tail products) needed by these sectors as well as increase new customer acquisitions and shopping opportunities.
We will expand the number of products handled and enhance customer convenience by increasing the number of products in stock available for same-day or next-day delivery. We also aim to maximize value for customers by expanding original products.
Establishment of the Most Powerful B-to-B E-Commerce Website
We aim to provide convenient products and services to all working customers regardless of company size, work location, or format. In order to do so, we are building a new e-commerce website, the New ASKUL Website, that combines the strengths of both our current website for small- and medium sized enterprises and our existing website for mid-tier and larger enterprises.
Synergies with Z Holdings
Through collaboration with Z Holdings, we aim to continue expanding sales via ongoing sales promotions. In FY5/2022, the LOHACO Main Store was moved to Yahoo Japan Corporation’s systems platform, reducing fixed costs, which is expected to help the LOHACO business turn profitable in FY5/2023. Through this major turning point for LOHACO, ASKUL aims to increase sales by ¥20 billion during the Medium-Term Management Plan and then continue on a path of steady growth.
Reform Platforms
Distribution Center Restructuring
In order to maximize the shipping capacity of distribution centers, we are planning to have distribution centers specialize in outgoing shipments and to use external warehouses for pre-handling and replenishing functions. Going forward, the use of external warehouses should allow us to stock long-tail products at our distribution centers, and we aim to expand sales further by offering same-day or next-day deliveries of long-tail products.
Fusion of B-to-B and B-to-C Distribution Centers and Delivery Functions
We aim to expand the range of products available for next-day delivery, while reducing out-of-stock products, thereby improving the level of customer service by sharing distribution centers in the B-to-B business and the B-to-C business and share inventories.
In addition to distribution centers, we are fusing together B-to-B and B-to-C deliveries. We began to externally provide our independently developed delivery management system “Torakkuru” so that our delivery partners who previously only handled B-to-B deliveries will be able to perform B-to-C deliveries.
B-to-C deliveries require a different level of service than B-to-B deliveries. By providing delivery management system, we aim to improve delivery efficiency through mixed deliveries of B-to-B and B-to-C parcels.
B-to-B deliveries
- Deliveries usually successful on first attempt
- High-density deliveries to office districts and buildings
B-to-C deliveries
- Designated delivery times
- Multiple delivery attempts or unattended deliveries
- Detailed instructions, such as delivery to parcel lockers
Use of ASKUL’s Data for Digital Transformation (DX) in Value Chain
Through the big data platform ASKUL-EARTH, ASKUL is gathering and sharing massive amounts of data generated by all processes and systems in ASKUL’s value chain. By doing so, ASKUL is building a framework for analyzing and leveraging accumulated big data across the entire organization.
In addition, we offer ASKUL DX ACADEMY, a training program for all employees to acquire the necessary skills and knowledge for using this data. Through these initiatives, we are advancing DX through the utilization of big data.
