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MonotaRO <3064> regards improving its logistics capabilities as the most important issue and has been working on improving delivery speed and quality. Examples of pioneering initiatives include the expansion of logistics centers, the establishment of two bases in the east and west, and the introduction of unmanned transport robots. In the advanced stage, the company aims to make significant progress in delivery services. Specifically, they are implementing three measures: (1) extending the shipping deadline, (2) specifying delivery date and time, and (3) providing safe drop-off services. All of these measures are being implemented through strengthened collaboration with Yamato Transport. In particular, regarding the extension of the shipping deadline, we believe that there are some orders that have been missed in the past, so we expect a direct increase in revenue from this measure.
(1) Extending the shipping deadline
This initiative aims to extend the shipping deadline for same-day shipping products from the previous time of 3:00 PM to 5:00 PM. The company's customers often have urgent purchasing needs such as ordering during work hours and wanting the products to arrive in time for the next day's work. If they notice their need for products after 3:00 PM, they may use nearby home improvement stores, etc., to meet their immediate needs. There is a possibility that the company has experienced missed opportunities in such cases. Additionally, by reducing the time from ordering to delivery for orders placed between 3:00 PM and 5:00 PM, customer satisfaction is expected to improve. This initiative will be launched in the southern Kanto region in the third quarter of the fiscal year ending in December 2024, and will gradually expand to other target regions.
(2) Specifying delivery date and time
This measure is intended for customers in the construction, manufacturing, and construction site industries, among others. It was implemented to meet demands such as wanting to receive deliveries at a specific timing or avoiding deliveries at the end of the month. Starting from July 2024, it will be possible to specify delivery date and time on the Yamato Transport website, and from the first quarter of the fiscal year ending in December 2025, customers will be able to specify delivery date and time on the company's website.
(3) Safe drop-off service
This service is mainly targeted towards individual business owners and general consumers who have the need to receive packages even when they are not present or want to receive packages at the job site. It is also an initiative that contributes to the resolution of the social issue known as the "2024 problem" in the logistics industry. The service was launched in November 2023, targeting corporations and individual business owners in 14 prefectures, and expanded nationwide in June 2024, including targeting general consumers.
(Written by FISCO Guest Analyst, Hideo Kakuta)