World Class Logistics Report - Third Party Logistics Goes Live in the Beverage Industry

World Class Logistics Report

Issue 1

Third Party Logistics Goes Live in the Beverage Industry

Kirin Beer, the largest Japanese brewery operator with over 60% market share, recently established its own third-party logistics subsidiary: Kirin Logistics (KL). KL is responsible for distribution and transportation between the brewery's finished goods distribution centers and the large network of beverage wholesalers throughout Japan. KL currently operates 30 distribution centers for Kirin throughout the country, focused primarily at Kirin's 15 manufacturing sites.

The showcase distribution site is the new Tokyo distribution center. The center features: automated trailer loading and unloading; automated storage and retrieval systems for full pallet order picking; eight Mitsubishi robots for automated case picking and mixed pallet makeup (the robots are fed by a small ASRS for order picking staging); automated guided vehicles (Toyota) for transporting empty and full pallets between receiving, storage, order staging and shipping; smart-card verification of transportation drivers and shipment assignments; a driverless lift truck for floor storage and retrieval and pre-picked order staging; four-pallet lift trucks for slow moving items; and lighted displays throughout the facility to monitor throughput and productivity.

With an investment of over $60,000,000 in material handling systems, $100 per square foot, the facility is perhaps the most highly automated beverage distribution center in the world. The investment was justified on the basis of land and labor savings. There is no human work element in case or pallet picking.

Kirin Logistics is providing logistics services to other companies in the beverage industry and is planning to expand. This is just one more example of the expanding role of third-party logistics in major corporations.

To receive a full copy of the Kirin Logistics case study report, contact Logistics Resources International and request Publication #97020101.

Click here to return to Table of Contents for Issue 1 of World Class Logistics Report