Meiji, a Japan-based dairy firm, is set to merge its five distribution centers in the Tokai, Chubu region into a single plant on the grounds of a new plant in Aichi Prefecture to strengthen distribution functions and to reduce overall costs by up to JPY300m ($3m).
This move is a part of the company's three-year medium-term management plan - TAKE OFF 14 - initiated in April 2012.
Out of the five distribution centers, two sites are engaged in manufacturing drinking milk, yogurt and chilled products; one site handles confectionary products, vacuum-packed foods and other room temperature products; and two sites handle both types of products.
The merger is expected to increase the company's distribution efficiency for temperature segments, promote the dual shipment of chilled and room temperature products and help improve vehicle turnover and load ratios.
The construction of the plant in Aichi Prefecture, which will also manufacture drinking milk, yogurt, and other dairy products, is scheduled to be completed in July 2014.
The Aichi plant will include a JPY1.2bn ($12m) storage facility for chilled products as well as a JPY1.4bn ($14m) storage facility for room temperature products.
Plant construction and management of the storage facility for chilled products will be handled by Meiji, whereas Meiji Logitech will handle the construction and management of the storage facility for room temperature products.
