Kao and Lion Begin Collaboration on Smart Logistics Initiative
Taking Part in the Strategic Innovation Promotion Program Being Led by the Cabinet Office

Kao Corporation and Lion Corporation are taking part in the Smart Logistics Service project being carried out as part of the Strategic Innovation Promotion Program (SIP), which is led by Japan’s Cabinet Office. In line with the project’s aim of establishing new logistics platforms, the two companies have begun two-way transportation between their respective operating sites aimed at optimizing their overall supply chains.

Under this initiative, the Distribution Economics Institute of Japan, a leading research institution, proposed possible combinations of the companies’ separate one-way transportation operations into two-way systems based on transportation data provided by participating household consumer product manufacturers, including Kao and Lion. Based on this report, Kao and Lion have combined Kao’s transportation operations connecting its Kawasaki Plant (Kanagawa Prefecture) and Sakaide Logistics Center (Kagawa Prefecture) with Lion’s transportation operations connecting the Lion Chemical Sakaide Factory and Lion’s logistics centers in Kazo (Saitama Prefecture), Kashiwa (Chiba prefecture) and Sagamihara (Kanagawa Prefecture) to realize two-way transportation. By doing so, we aim to increase trucking productivity and reduce CO2 emissions.

Kao and Lion’s two-way transportation
(This initiative encompasses a portion of the transportation between the two areas)

Kao and Lion started regular operations on October 27, 2020 after studying transportation and loading volumes, transportation routes and frequency and other factors, shared information and coordinated with transportation contractors, and conducted tests. Compared with the previous transportation methods, the initiative has resulted in shorter empty running distances for the trucks used, and we estimate combined reductions of 45% in CO2 emissions and 23% in transportation expenses.

In addition, Kao and Lion are collaborating on the recycling of film packaging toward the realization of plastic packaging resource circulation in society. This initiative, too, is aimed at helping to solve environmental problems and proactively working together to reduce the environmental burden across product life cycles.

[Company Profiles]

■About Kao
Kao creates high-value-added products that enrich the lives of consumers around the world. Through its portfolio of over 20 leading brands such as Attack, Bioré, Goldwell, Jergens, John Frieda, Kanebo, Laurier, Merries and Molton Brown, Kao is part of the everyday lives of people in Asia, Oceania, North America and Europe. Combined with its chemical division, which contributes to a wide range of industries, Kao generates about 1,500 billion yen in annual sales. Kao employs about 33,000 people worldwide and has 130 years of history in innovation. Please visit the Kao Group website for updated information.

https://www.kao.com/global/en/

<Related Information>
■ Kao and Lion Begin Collaboration on RecyCreation Activities
https://www.kao.com/global/en/news/sustainability/2020/20200929-002/

■ RecyCreation on Facebook (Japanese)
https://www.facebook.com/RecyCreation.jp/

■ Kao launches new ESG Strategy “Kirei Lifestyle Plan” to support consumer lifestyle changes
https://www.kao.com/global/en/news/sustainability/2019/20190422-001/

■ Kao’s New Challenges for the Future: Accelerating Purposeful Business Commitment with ESG
https://www.kao.com/global/en/news/business-finance/2019/20190926-001/

■Lion Corporation Overview
Representative: Masazumi Kikukawa, Representative Director, President and Executive Officer
Address: 1-3-7 Honjo, Sumida-ku, Tokyo, Japan
Established: September 1918 (founded October 30, 1891)
Net Sales (consolidated): 347.5 billion yen (term ended December 2019)
No. of employees (consolidated): 7,151 (as of December 31, 2019)
Business description: The manufacture and sale of toothpastes, toothbrushes, soaps, detergents, hair- and skin-care products, cooking-related products and pharmaceuticals. Exports to overseas affiliates.

<Related Information>
■ Kao and Lion Begin Collaboration on RecyCreation Activities
https://www.lion.co.jp/en/press/2020/3289

■ Released the LION Eco Challenge 2050 long-term environmental objectives for a healthy future for people and the Earth (Japanese)
https://www.lion.co.jp/ja/company/press/2019/2945

■ Lion’s Approach to the Environment
https://www.lion.co.jp/en/csr/env/

■ Lion’s Sustainability
https://www.lion.co.jp/en/csr/

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