Management System

Policy and Basic Approach

In logistics, in addition to safety, transporting with attention given to quality and the environment is an important challenge. In view of the serious labor shortage in logistics in recent years, however, transport services are inclined to keep away from handling chemical products, and it is getting more difficult to find means of transportation. For this reason as well, we recognize that stable transportation is a major challenge.
To ensure that our products are transported in a manner that takes into consideration safety, quality and the environment, the Mitsui Chemicals Group is engaged in a wide range of initiatives including workplace improvements, development of an appointment system and the introduction of shared logistics. To prepare for the new changes likely to occur in the next 10 to 20 years, we are working in collaboration with the supply chain to build a resilient logistics system capable of a versatile response to all environmental changes.

The Mitsui Chemicals Group has established “Logistics Environment, Safety, and Quality Management Bylaws” based on its Responsible Care Policy and Company-wide regulations for risk management. Moreover, the Group complies with all related legal and regulatory requirements and has put in place various initiatives including logistics accident countermeasures. Logistics subcontractors are also required to comply with the Group’s bylaws.

System and Responsible Officers

The responsible director in charge of the Logistics Division manages our logistic system. The Logistics Division sets goals for the fiscal year based on results (number of accidents, complaints, etc.) up to the previous year. Various measures (audit of logistics subcontractors, training, on-site discussion, campaigns, etc.) are incorporated into the annual plan with definitive steps then taken to implement a PDCA cycle. The Logistics Division reports on logistics performance as well as the progress of annual plans while promoting the exchange of opinions through various means including regular meetings with the Responsible Care Committee and the responsible director in charge of the Logistics Division.
Among a host of measures, steps are taken to conduct a Logistics Division Responsible Care audit of the Group’s business sites and logistics subcontractors based on specific criteria and a checklist that is prepared in advance. In this manner, every effort is made to monitor the progress of annual logistics Responsible Care plans. The results of the aforementioned measures and audit are reported to all relevant logistics-related parties and proper action taken.

Goals and Results

Safety

KPI Scope FY2018 FY2019 Medium to
Long-term
Goals Results Level
Achieved
Goals Goals
Number of significant occupational injuries*1 in logistics Mitsui Chemicals Group 0 2 0 0
Number of major accidents*2 in logistics Mitsui Chemicals Group 0 0 0 0

*1Significant occupational injuries in logistics:
Significant occupational injuries that occurred during logistics activities undertaken by the Mitsui Chemicals Group including across the supply chain.

*2Major accident in logistics:
Major accident that occurred during logistics activities undertaken by the Mitsui Chemicals Group including across the supply chain.

Quality

KPI Scope FY2018 FY2019 Medium to
Long-term
Goals Results Level
Achieved
Goals Goals
Number of issues impacting customer*3 Mitsui Chemicals Group 24 or less 32 25 or less 90% or less (average of the most recent three years)
Incidence of issues impacting customers*3 Mitsui Chemicals Group 50ppm or less 70ppm 55ppm or less 30ppm or less (FY2020)
Number of complaints Mitsui Chemicals Group 7 or less 13 7 or less

*3Issues impacting customers:
Quality issues (including complaints) and accidents that impacted customers.

Compliance

KPI Scope FY2018 FY2019 Medium to
Long-term
Goals Results Level
Achieved
Goals Goals
Number of legal and regulatory violations Mitsui Chemicals Group 0 0 0 0

Review and Challenges

The number of complaints and issues have dropped dramatically since fiscal 2008. However, neither safety nor quality goals have been achieved in fiscal 2018. We believed this to be due to the drastic changes in the logistics business environment. The following activities will be implemented in fiscal 2019 to prevent a recurrence and to reduce complaints and issues in logistics.

  • Safety: Review the work environment at each site, as well as the work procedures and methods. Additionally, review the state of compliance and reinforce management.
  • Quality: Reduce issues that have a significant impact on customers (delayed delivery, erroneous shipments and deliveries as well as product leakages).

Number of Issues

Also, we continue to conduct safety activities in cooperation with our logistics subcontractors, including joint safety patrols with other sites and campaigns to prevent issues recurring. We are making diligent efforts to foster mutual understanding by sharing Mitsui Chemicals' safety policy through the release of weekly and monthly reports and safety dialog to gather opinions from on-site workers, to enable us to become top in the industry in logistics safety and security.

We are also developing rules for the Mitsui Chemicals Group. Due to the differences between countries and regions in the rules governing the transport and storage of hazardous chemicals, the Group plans to establish global rules that require strict compliance in transport and storage in any part of the world. We are making preparations to introduce them within fiscal 2019.

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