Glossary

Alphabetical order

A~G

AGV

Automatic Guided Vehicle.

ALP

Stands for ASKUL Logi PARK.

AMR

Autonomous mobile robot. AMR makes use of sensing technologies, such as cameras and sensors, and AI to create maps of the environment in which they move and confirm their own location, allowing them to move while avoiding people and obstacles.

ASKUL Agent

In the Company’s B-to-B business, “ASKUL Agent” refers to a designated distributor determined by each customer. ASKUL Agents are responsible for acquiring and maintaining customers and collecting receivables. As of May 20, 2022, the Company had over 1,100 ASKUL Agents in operation across Japan.

ASKUL DX ACADEMY

A training program established in 2021 for all employees to acquire the necessary skills and knowledge for using this data as part of our human resource development efforts in terms of digital transformation. We develop human resources who will promote business transformation through the use of basic content (for all employees) and specialized content (for engineers).

ASKUL Resource-Recycling Platform

A platform for promoting resource recycling initiatives in cooperation with all entities in the value chain throughout the entire product lifecycle, from product design, manufacturing, sales, and post-use recycling and re-commercialization.

ASKUL service (ASKUL website)

B-to-B e-commerce site that ASKUL operates for small and medium-sized enterprises.

ASKUL-EARTH

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.

ASN

Advanced shipping notice. ASN is a notification usually used by suppliers to provide detailed shipment information (delivery date, product information, volume, etc.) to distribution centers in advance.

Automated storage

ASRS is a massive system that automatically stores, on shelves, packages that have been transported via conveyor belts. ASKUL has installed and operates ASRSs at all of its distribution centers. ASRS stands for automated storage and retrieval system.

AVC

Stands for ASKUL Value Center. The distribution center is named as a facility that creates new value, not cost.

Berth

Short for “truck berth.” Loading and unloading packages at spaces set aside in parking lots for trucks.

Biz-Raku

New SaaS business launched in October 2022 in collaboration with SoftBank to support DX at small and medium-sized businesses.

B-to-B

“B-to-B” stands for business to business and indicates transactions between companies. B-to-B has served as the core business of the Company since its founding.

B-to-B Advertising Business

Leveraging our experience gained from the LOHACO website, ASKUL plans for full-scale development of advertising business for manufacturers on the new ASKUL website.

B-to-C

“B-to-C” represents business to consumer (customer) and refers to transactions between companies and consumers. In terms of B-to-C, the Company offers the LOHACO business.

Carrier

“Carrier” refers to a delivery company. Specifically, it is a company that owns trucks and other modes of transportation and has personnel who carry out the transportation business on its own.

CB product

Stands for consumer brand product, a term coined by ASKUL. At the LOHACO EC Marketing Lab, ASKUL is developing and rolling out a large number of “consumer-oriented design products,” which are products designed to enhance the quality of consumers’ lives, in collaboration with manufacturers.

DC

Stands for Distribution Center.

DCM

Stands for Demand Chain Management. In ASKUL, the term “DCM” is sometimes used to refer to the DCM center, a distribution center.

Depalletize

Work involving unloading individual packages off a pallet. Devices that conduct this work are referred to as “depalletizers.”

DMC

Stands for Demand Management Center.

Eco-Platform

Eco-platform is the most efficient and environment-friendly distribution platform that ASKUL aim to create, so that the more often customers use ASKUL, the more they positively impact the environment.

ECO-TURN Delivery

The ECO-TURN delivery system distributes products in containers (folding containers/returnable boxes) that are collected for reuse in subsequent deliveries.

EDI

Electronic data interchange. EDI involves the electronic handling of forms between companies, such as purchase orders, order sheets, delivery notices, and invoices, via networks.

Ethical e-commerce

A type of sustainable e-commerce that the Company aims to realize. Ethical e-commerce considers environmental conservation and the resolution of social issues and aims to help facilitate sustainable behavior among customers simply through the use of ASKUL’s services.

EV100

A global business initiative in which participating corporations aim to convert all vehicles used for business operations to electric vehicles. In ASKUL, we aim to convert 100% of delivery vehicles owned or leased by ASKUL LOGIST Corporation, a Group company responsible for distribution center operations and deliveries, to electric vehicles (EVs) by 2030.

Fiscal Year

ASKUL fiscal year is from May 21 to May 20 of the following year.

Fitting Our Lifestyles LOHACO Exhibition

The Fitting Our Lifestyles LOHACO Exhibition is held as an event to showcase consumer brand products created by the LOHACO ECM Lab. It was held as an in-person event five times from 2015 until 2019, drawing crowds of people with companies aiming to sell their products. Due to the COVID-19 pandemic, however, the exhibition moved online from 2020.

Free Delivery Charge

Amount of free shipping per order; free basic shipping for orders over 1,000 yen (including tax) for B-to-B and over 3,780 yen (including tax) for LOHACO (Main Store).

Go Ethical

An initiative whereby products returned to manufacturers from stores that have no quality issues other than old packaging or other minor imperfections are sold at outlet prices rather than disposed of as waste.

H~P

Head product

Head products are general-purpose products that are ordered at a high frequency.

Last mile

“Last mile” refers to the last leg of the journey that involves moving goods from the transportation hub to the customer. Enhancing the quality of service while reducing costs in the last mile, which serves as an important contact point with customers, are becoming important strategical elements for EC business operators, including ASKUL.

Lead Time

The number of days required for delivery. (Next day delivery→LT1, same day delivery→LT0)

LOHACO EC Marketing Lab

Launched in February 2014 at a research center in ASKUL’s head office as an initiative to research and rapidly implement new marketing methods that use big data in the era of e-commerce.

Long-tail product

Long-tail products are specialized products that are ordered at a low frequency. Long-tail products are multi-type products that are sold in low volumes. The term “long tail” comes from the long tail of an XY graph.

Material Handling

A generic term for equipment and machinery used to improve the efficiency of logistics operations. Major items at ASKUL distribution centers include conveyors, digital picking, forklifts, and Oricon.

MD

Short for Merchandiser. Strategically procures and sells products while keeping a close eye on market trends.

Monthly Period

ASKUL monthly period is from 21st of the month to the 20th of the following month.

MRO

Stands for maintenance, repair, and operations. MRO refers to equipment, tools, repair materials, and other consumables used in the frontline operations of factories, construction sites, and other locations. MRO has traditionally referred to materials that serve as secondary materials (indirect materials), which are different from raw materials (direct materials) needed for the production process.

National Brand (NB)

A product that is distributed by a manufacturer throughout Japan. The manufacturer plans, develops, and manufactures the product, which is then sold in stores through wholesalers, distributors, and retailers.
The opposite of NB is private brand (products).

Non-Inventory Products

Products that are not stocked at the distribution center and delivered mainly from suppliers (direct shipment from the manufacturer).

Number of Units (boxes)

Number of boxes shipped from the distribution center.

1 box for 2 trees project

An unique initiative that ASKUL has implemented since August 2010. ASKUL ensures that two trees are planted for every box of copy paper purchased by customers. Trees that are planted, grown, and harvested comprise the tree farm used to create the copy paper.

Oricon

Oricon, which means “foldable container,” are used when products need to be transported using a conveyor belt. The Company’s ECO-TURN shipping method makes use of Oricon.

Original product

“Original product” includes such products as PB (private brand) products, products jointly developed with manufacturers, and limited-time-only products. ASKUL develops and sells a wide range of Original products, including products developed based on customer feedback; products developed in collaboration with manufacturers that give consideration to the environment, design, and quality; and products tailored to mail-order and e-commerce sales that do not need to stand out to consumers at storefronts.
Notes: The opposite of PB is national brand (NB).

Pallet

“Pallet” refers to a flat transport structure used to transport and unload products and move and store products within a warehouse. Multiple pallets are often stacked on top of each other and moved with equipment such as forklifts and hand lifts. Transportation and shipping methods that make use of pallets are often referred to as “pallet method” and “palletization.”

Palletize

Work involving stacking packages on a pallet. Devices that conduct this work are referred to as “palletizers.”

PB product

ASKUL develops and sells a wide range of PB (private brand) products, including products developed based on customer feedback; products developed in collaboration with manufacturers that give consideration to the environment, design, and quality; and products tailored to mail-order and e-commerce sales that do not need to stand out to consumers at storefronts.
Notes: 1. The opposite of PB is national brand (NB).
Notes: 2. “Original product” includes such products as PB products, products jointly developed with manufacturers, and limited-time-only products.

Picking

“Picking” is a type of work performed within a warehouse. Picking involves picking out products from a fulfillment center in accordance with customer orders. Picking is used in such terms as “digital picking,” a system that uses digital displays to support picking work, and “total picking,” a method where multiple shipping orders are listed together and then sorted by item.

Q~Z

RE100

A global business initiative in which participating corporations aim to procure 100% of energy used in business operations from renewable energy sources. In ASKUL, we set our goal to 100% renewable energy usage at all Group companies, including subsidiaries, by 2030.

Sai (measurement)

Sai is a unit of volume used in the logistics industry. 1 sai is 30.3 square centimeters. ASKUL keeps track of sai per pallet for inventory control.

SCM

Shipping carton (container) marking. SCM refers to delivery labels with barcodes that are attached to Oricon, foldable containers, as well as to other types of containers. Using SCM, recipients of packages can confirm content details, tracking numbers, and other information without actually opening the package.

Shuttle system

This is a type of equipment that can conduct deliveries to and from automated warehouses and other locations at high speeds.

SKU / item number

Stands for stock keeping unit. SKU is a unit of stock management used when orders are received or when inventory management is conducted. In ASKUL’s case, SKU is used as a unit of sale. Utilized in combination with item volumes (type of product), SKU is an important unit of measurement for distinguishing between, for example, products of the same type that have differing numbers contained in their respective unit.

SOLOEL

Purchase solutions for large companies.

SOLOEL ARENA

B-to-B e-commerce site that ASKUL operates for mid-tier and large companies.

Strategic Sectors

ASKUL has positioned medical institutions and nursing care facilities in the medical domain and manufacturers in the MRO domain as the two largest strategic sectors in the Medium-Term Management Plan which ends in May 20, 2025.

Supplier

“Supplier” refers to the companies and organizations from which the Company purchases products. ASKUL purchases products directly from manufacturers and also purchases products indirectly through general trading companies and wholesalers. As of May 20, 2022, ASKUL had been procuring products from approximately 1,200 suppliers.

Supplier direct delivery (product)

“Supplier direct delivery” refers to a service where products (referred to as “direct delivery products”) are sent to the hands of customers directly from suppliers, without passing through the Company’s warehouses. This term is similar to the term “cross dock products,” which refers to products that pass through warehouses without being stored and are shipped to customers together with warehouse inventory.

Supply chain

The supply chain is the entire physical sequence through which a product travels from the area of production to the hands of customers.

The New ASKUL Website

The New ASKUL Website combines the strengths of both our current website, ASKUL site for small- and medium sized enterprises, and SOLOEL ARENA site for mid-tier and larger enterprises. This is positioned as a key project in the Medium-Term Management Plan which ends in May 20, 2025.

3PL

Stands for third-party logistics. This term refers to a type of business that takes on logistics design and proposal work in a comprehensive manner, as a third party in place of the shipping company.

Torakkuru

“Torakkuru” is a delivery management system developed with big data accumulated from ASKUL’s own logistics operations. Drivers can use smartphones loaded with this system to handle all aspects of delivery work, including automatically generate delivery route plans, changing delivery times, and confirming requests for redelivering missed packages. We began providing this system to delivery partners in June 2021.

2030 Zero CO2 Challenge

Goals on climate change and carbon neutrality that ASKUL announced at ASKUL Environmental Forum 2016 held in July 2016.

Value chain

The value chain represents the sequence of value brought about by a product. “Upstream” refers to processes in the sequence that are closer to the raw material stage, and “downstream” refers to those that are closer to the consumer stage.

VOC

Stands for Voice of Customer. ASKUL also created the VOC Portal website on its intranet to provide customer feedback on issues in various areas, among other efforts, to ensure employees are aware of and share customer feedback.

WMS

Stands for Warehouse Management System. It centrally manages information to improve the efficiency of operations at distribution centers, such as receiving/shipping management, inventory management, and labor management.