News2008
Implementation of Organization, HR and Systems Reforms
~Large Increase in Overseas Personnel. Expansion of Intermodal Transport Services~
2008/10/01
KWE as the embodiment of its reforms in organization, HR and systems on October 1 launched the KWE Innovation Project (KIP).
In recent times a slowdown in economies throughout the world triggered by the U.S. sub-prime loan crisis, stagnation of the Japanese economy, a contraction in airline routes and repeated increases in fuel surcharges driven by the sharp rise in crude oil prices together with an increasing preference by shippers to use ocean rather than air transport have been seen. Given these circumstances the international airfreight market in Japan finds itself in a particularly difficult position.
KWE in order to overcome these present challenges and to ensure ongoing growth in its business revenues has implemented a package of fundamental reform strategies and measures. The embodiment of these is the KWE Innovation Project (KIP), which launched on October 1, encompasses reforms in organization, HR and systems.
An outline of the KIP is as follows:
«Focal Points behind the Reforms»
- A long-term viewpoint
- Rapid advancement in global markets
- Bold and speedy implementation (full implementation within 6 months)
«Reform Framework»
1. Reforms to HR, Organization and Systems for Business Optimization
| (1) | At the same time as maintaining and expanding KWEJ's core businesses, appropriate dispatch of employees (increased levels) abroad to further strengthen overseas operations where large-scale growth in business revenues has been seen. |
| (2) | Through a partial revision to the fixed age retirement system, strengthening of local business site performance (sales, quality) through utilizing the knowledge and experience of our veteran HR. |
| (3) | Through introduction of the "Overseas Service, Study and Training System (2-year dispatch" a major increase in the number of employees dispatched overseas to increase the volume of cargo handled both for Japanese import and export. |
| (4) | To improve sales efficiencies, consolidation of the sales offices and sites that are presently independently managed under both the Forwarding and Logistics Departments. |
2. Further Expansion of Overseas Operations
While the targeted percentage of total KWE sales accounted for by overseas operations, as previously stated in the "KWE Grand Design for the 21st Century", is 60%, in FY2009 the targeted ratio will be 70% overseas to 30% within Japan.
3. Establishment of New Businesses
KWE will continue to establish the organizations required for entry into and promotion of new businesses that in the future will form the backbone of KWE's operations and in addition will continue to promote new product development and commercialization plans. (Within the Ocean Department, the "Multi-modal Transport Development Office" has been newly established and control of the "Trans-Container Center" has been transferred from the Business Development Department to that Office.
