OPENLOGI promotes Japan’s local businesses to start ECommerce, as the first “Regional Revitalization” project, supporting logistics for “Edo Tamagawaya”, the only manufacturer of dried noodle in Tokyo, Japan 〜Going forward, OPENLOGI plans to further initiatives with major Japanese financial institutions to accelerate E-Commerce of local businesses〜
December 28, 2020, TOKYO — OPENLOGI, Inc. provides the logistics fulfillment platform “Openlogi” with the vision of “using technology to network siloed logistics and revolutionize the flow of goods based on data analytics”. OPENLOGI provides a zero fixed cost, pay-as-you-go logistics fulfillment service by networking affiliated warehouses through the company’s proprietary warehouse management system and realizing the efficiency and centralization of logistics operations through standardized specifications and operations.
”Edo-Tamagawaya”, a brand run by Tamagawa Shokuhin Co., Ltd, the only manufacturer of dried noodles in Tokyo, Japan, to take on the new challenge of building cross-border ECommerce business due to the decline in sales caused by the COVID-19 pandemic and with an eye to strengthening the management base for after the pandemic.
OPENLOGI plans to continue to support this kind of challenge of entering into the E-Commerce business in logistics and expand the wave throughout Japan. In order to accelerate the regional development initiatives, OPENLOGI will further cooperation with Japan’s major financial institutions (Mizuho Bank, Resona Bank, Shoko Chukin Bank, Japan Finance Corporation, and Aozora Bank), which are OPENLOGI’s funding partners, and promote business matching with local businesses and warehouses.
Overview of the new challenge
Tamagawa Shokuhin Co., Ltd, a dried noodle manufacturer, has attracted many customers in its hometown of Tokyo including schools and the Imperial Household Agency of Japan, for the quality and taste of its dried noodles backed by its 80-year history. The udon noodles produced by its craftsmen’s techniques have been selected as offerings for the “Niinamesai”, a ritual of the Imperial Court, because of their high quality and beauty. In addition, “Tokyo Soba” and “Tokyo Udon”, products with their innovative Kabuki designs, have been well received by wholesale customers as local souvenirs for foreign visitors to Japan, and sales have been increasing year by year as the number of inbound tourists increases.
On the other hand, Tamagawa has not only made noodles by following the traditional method but also developed a new manufacturing process with an awareness of the SDGs (Sustainable Development Goals). From the perspective of protecting the environment of Akune, Kagoshima, Tamagawa has developed noodles made from sea urchin, which causes “sea urchin scorch,” and has begun selling them as “products that are environmentally friendly and delicious”. In addition, the bent noodles, commonly known as “scrap noodles,” that are always generated during the production of dried noodles are usually disposed of as industrial waste, but Tamagawa is taking on the challenge of food recycling by having the scrap noodles used as feed for pig farms in cooperation with Usui Farm in Atsugi.
However, sales plummeted due to the hardship of a large drop in inbound demand caused by the COVID-19 pandemic and zero orders for noodles from schools due to the closure of schools under lockdown in Tokyo.
In order to overcome this difficult environment, Tamagawa launched a new e-commerce business for overseas customers to increase sales, and selected OPELOGI as its logistics partner because of its extensive knowledge and expertise in cross-border e-commerce logistics.
Following the fundraising announced in October 2020, OPENLOGI is strengthening its alliances with business companies and financial institutions that have become stakeholders through the fundraising process.
In order to expand the case of Tamagawa nationwide, OPENLOGI will work with financial institutions to promote business matching not only with local businesses but also with warehouse companies to support new EC entrants and cross-border EC in logistics.
Products: “Tokyo Udon” and “Tokyo Soba” – Japanese traditional noodles
About Cross-border EC
EC for overseas markets (cross-border EC) is attracting attention as a solution for retailers and other businesses suffering from a decline in sales due to a decrease in inbound demand caused by the COVID-19 pandemic. On the other hand, customs duties, return rules, and regulations on imported goods differ depending on the destination country or region, and there is a risk of problems related to the collection of payments and returns. Moreover, when outsourcing logistics operations, there are few logistics companies that can seamlessly handle both domestic and overseas delivery, and fulfillment fees for overseas delivery are generally set at a higher rate than for domestic delivery.
OPENLOGI offers the same rates for fulfillment and storage for overseas delivery as we do for domestic delivery (delivery rates depend on the carrier and destination country or region). Also, both overseas and domestic deliveries can be requested from the same web page, and inventory management can be handled in the same way.
In response to this situation under the COVID-19 pandemic, OPENLOGI will strengthen its logistics construction and support for domestic and international EC sales for Japan’s local businesses whose sales have been affected by the pandemic and who want to take on the challenge of cross-border EC but are unsure of what to do about overseas delivery rules and delivery carriers.
OPENLOGI users do not need a quotation and can start using fulfillment services on a pay-as-you-go basis immediately after registering. Because a single system network and standardizes a large number of warehouses in Japan, OPENLOGI can flexibly respond to the growth of users, seasonal demand surges, short-term demand, and multi-locations of inventories. In addition to domestic delivery, OPENLOGI can also provide a one-stop service for cross-border EC logistics by linking up with multiple overseas delivery carriers (*1). OPENLOGI helps users to automate logistics by leveraging its API linkage (*2) with major EC platform players, EC carts, EC malls, and order unification services.
*1: International Shipping Carriers: ECMS, DHL Express, Japan Post (EMS, international e-packets), Buy & Ship, 4PX (in alphabetical order)
*2: API linkage partners: EC Carts (Shopify, BASE, STORES.jp), EC Malls (Yahoo! Shopping, PayPay Mall, eBay), selling apps (Mercari), order unification services (Next Engine, GoQSystem)
OPENLOGI’s Regional Revitization Projects
With the spread of COVID-19, demand for E-Commerce has surged over time, and the number of businesses launching EC and the volume of EC logistics transactions is rapidly increasing. The number of EC businesses using OPENLOGI is also increasing, not only among the small and medium-sized EC businesses that have traditionally been the main customer segment of OPENLOGI, but also among large-scale companies that use OPENLOGI to newly launch EC businesses, diversify risks, and respond to seasonal fluctuations. For these reasons, OPENLOGI is working to form alliances with a variety of warehousing companies throughout Japan in order to meet the diverse needs of EC businesses of all sizes.
At the same time, each of the financial institutions with which OPENLOGI is strengthening ties is providing the support that will help revitalize the economy in local areas of Japan. In the communications with financial institutions, OPENLOGI has heard comments such as, “There is a growing need for local businesses to start or strengthen their EC operations, and we are looking for players that can provide logistical support,” and “There have been troubles with decreases in the volume of goods in BtoB warehouses. They’d like to start operations for the growing EC market, but it’s difficult because they don’t have the know-how.” “Warehouses in urban areas are in short supply due to the growth of EC, but warehouses in local areas cannot fill up their spaces.”
In response to the above situation, OPENLOGI is seeking further collaboration with financial institutions on business matching that will enhance regional revitalization, and the company will strengthen the efforts to introduce locally-based warehousing companies and provide logistics support to new businesses entering the EC market. In addition, OPENLOGI will support cross-border EC for retailers and wholesalers, not only in Japan but also in other countries where inbound consumption has disappeared, and support the overseas sales of community-based companies in Japan.
Financial Institutions in the OPENLOGI’s local business accelerator project
Aozora Bank, Ltd.
Japan Finance Corporation
Mizuho Bank, Ltd.
Resona Bank, Ltd.
The Shoko Chukin Bank, Ltd.
■Overview of Tamagawa Shokuhin Co., Ltd
In 1935, Tamagawa Shokuhin opened a noodle manufacturing business in Tokyo, Japan. In 1960, the company became a model factory for the Food Agency and cooperated in the food policy for school lunches, and contributed to the stabilization of dietary life. In the field of dried noodles, the company maintains its tradition as the only remaining dried noodle factory in the former Edo city and supplier to the Royal Family of Japan. Tamagawa conducts thorough hygiene management as a factory designated for school lunches in boiled noodles and launched the “Edo Tamagawaya” brand in fresh noodles.
Company Name: Tamagawa Shokuhin Co., Ltd
Representative Director: Yasuhiro Sekine
Established: October 6, 1950
Address: 7-5-12, Toshima, Kita-Ku, Tokyo, Japan
■Overview of OPENLOGI, Inc.
OPENLOGI, Inc. provides the logistics fulfillment platform “Openlogi” with the vision of “using technology to network siloed logistics and revolutionize the flow of goods based on data analytics”. OPENLOGI provides a zero fixed cost, pay-as-you-go logistics fulfillment service by networking affiliated warehouses through the company’s proprietary warehouse management system and realizing the efficiency and centralization of logistics operations through standardized specifications and operations.
“OPENLOGI Platform Connect” is a SaaS that streamlines, centralizes, and automates the tedious operations between shippers and warehousing companies, and is mainly aimed at warehousing companies.
Company name: OPENLOGI, Inc.
Representative Director, President, and CEO: Hidetsugu Ito
Established: December 25, 2013
Address: Ichigo Higashi-Ikebukuro Building 9F, 1-34-5 Higashi-Ikebukuro, Toshima-Ku, Tokyo, Japan
Service: Logistics Fulfilment Platform Service