How Would the BCA Signed Between Nippon Express & Future Supply Chain Aid Both?
The supply chain and logistics company, Future Supply Chain Solutions, and Nippon Express's subsidiary, Nippon Express for South Asia & Oceania Pte. Ltd sign a business collaboration agreement (BCA) in Mumbai. This agreement is signed to explore the growth opportunities for the new and existing customers of both the companies. In addition, the companies have planned to expand the revenues for both the companies based on their strategic partnership and business collaboration. Both the companies are intending to start their business collaboration in January 2020.
"I am very happy to announce that Future Supply Chain Solutions and Nippon Express have both signed a business collaboration agreement. This partnership will form an important part of our long-term vision of becoming a logistics company with a strong presence in the global market through dynamic growth. To be specific, we hope to increase our sales outside Japan from our current sales of $ 4 billion to $ 12 billion by 2028 and become a proud world-class logistics company," states Satoshi Horikiri, Senior Managing Executive Officer & Chief Managing Officer of International Business Headquarters of Nippon Express.
With this collaboration, both the companies would leverage Nippon Express' competency in varied sectors across the Indian market, as Nippon aspires to become a leading logistics player in India. Besides, Future Supply Chain would implement its third-party logistics and express logistics operations to attract new business opportunities from Nippon Express' existing Japanese and MNC clients. As a part of the agreement, both the companies would formalize a steering committee. Nippon Express' representatives and Future Supply Chain's management would jointly operate it.
Through this collaboration, both companies intend to practice three business strategies. The first one is to offer Future Supply Chain's integrated and high-quality services to Nippon's Japanese and other foreign customers. The second plan is to provide Nippon's global logistics services to Indian customers through Future Supply Chain. Lastly, the companies have decided to increase Future Supply Chain's operational efficiencies by introducing latest technologies and process improvements (Kaizen activity).
"I am pleased to share that Nippon Express has joined the FSC family as a strategic partner. Together we will provide a best-in-class supply chain service offering to our customers in India, given our complementary skill sets and domain expertise. We are excited about the business expansion potential and revenue synergies from this partnership and remain committed to deliver significant value to our stakeholders in the long term," says Mayur Toshniwal, Managing Director at Future Supply Chain.
