International Airfreight Forwarding
The KWE group's core business is international airfreight forwarding (freight consolidation).
Freight consolidation is where cargo bound for a common overseas destination is collected from multiple clients and bundled into a "Single KWE shipment". Following this, KWE as the forwarder claims to commission an air carrier to transport that freight.
KWE is responsible for preparing documentation such as load manifests, performing export customs clearance and providing overland transport operations. To ensure smooth, reliable and accurate performance of these interrelated operations, KWE has fully integrated the sales functions performed at its sales offices and branches with those of its operation divisions to allow them to work in close cooperation.
Major products that KWE handles by air from Japan include computers, IT and electronics related products such as semiconductors, communication related products particularly those for the portable communications industry such as mobile phones as well as automotive industry related products.
The consolidated freight upon arrival at its destination is removed from the freight shed of the air carrier by KWE's locally registered company or representative office and after import customs clearance it is delivered to the consignee.
Major product lines that KWE handles by air into Japan include computers, semiconductors and other manufacturing related products as well as automotive related products, medical equipment, chemical products, textile products, designer brand items and fresh food. After arrival at an airport in Japan, KWE performs import customs clearance, interim storage, distribution processing and domestic delivery.
International Ocean Freight Forwarding
The greatest merit of international ocean freight forwarding is the ability to ship at one time a large volume of cargo at a comparatively low cost.
While the basic cargo processing flow is the same as for international airfreight forwarding, within this sector KWE's major role is as a "Non-vessel Operating Common Carrier (NVOCC)" that utilizes the transport services provided by ocean carriers. At its international ocean freight forwarding sales offices, KWE performs a variety of operations ranging from sales through to booking cargo space on vessel, preparation of customs clearance documents and lading instructions. KWE's ocean freight forwarding customs clearance division provides a comprehensive and integrated customs clearance service that includes preparation of documents related to cargo import / export, customs clearance and follow ups regarding the status of cleared freight.
The operations division, in addition to booking space on vessel, also provides containers, freight consolidation services, issues bills of lading (B/L) and transmits documents to the final destination of the export cargo. In addition, KWE also arranges for the receipt of cargo from ocean carriers and domestic delivery of imported cargo after customs clearance.
Freight forwarded by KWE includes a wide range of products for a variety of industries and markets, including everything from raw materials to goods-in-process and finished products. Particularly in recent times KWE, centering on China, has greatly expanded its import and export operations throughout Asia, which given their relative proximity to Japan compared with Europe and the Americas and the correspondingly short transport period makes them ideal for ocean freight forwarding.
Logistics
Logistics is a service sector that at present is experiencing the most rapid growth within the distribution industry.
KWE, as a part of its comprehensive freight forwarding operations or as a separate ancillary service, has recently been actively involved in providing logistics services that include interim storage before and after delivery, and distribution processing such as sorting, labeling, packaging and product inspection. In recent years KWE's clients have been increasingly using outsourcing to rationalize distribution and reduce costs. KWE has been providing these services at its Narita Terminal (Narita, Chiba), No. 1, 2, 3 and 4 Baraki Terminals (Ichikawa, Chiba), Tokyo Terminal (Shinagawa-ku, Tokyo), Chubu International Airport Terminal (Tokoname, Aichi) and Rinku Terminal (Izumisano, Osaka).
KWE in addition to utilizing it's independently developed KWE-WMS (Warehouse Management System), has also developed and manages an OMS (Order Management System) that as a 3PL (Third Party Logistics) model, allows KWE as the client's agent to perform daily management of orders received and sent.
Further, through linking KWE-WMS and OMS, KWE is able to provide a uniform information management service that encompasses the entire process from orders received through to delivery to the final destination.
In addition, KWE through its subsidiary Kintetsu e-support, Inc., is operating a call center and actively expanding the group's e-business in areas such as order processing.
Domestic Freight Forwarding
In October 2002, as a split-off from its domestic Cargo sales division, Kintetsu Logistics Systems, Inc. was newly established as a wholly owned subsidiary to perform domestic freight forwarding operations. In the future this company will continue to actively expand the group's domestic transport, warehousing, packaging, waste collection and disposal businesses.
KWE will also further strengthen its comprehensive sales and transport network that includes everywhere from Hokkaido in the north to Okinawa in the south. Concentrating not only on its established main domestic freight forwarding business for semiconductor manufacturing equipment and IT related products but also on medical and chemical products transport where it has performed strongly in recent years, KWE expects to become a market leader.
