How Yusen Logistics has built the foundations for significant growth
Global supply chain logistics company Yusen Logistics has had a very busy couple of years. The business has been planning for the future and analyzing market trends in order to build pipelines for substantial growth. Benjamin Bird, Director of Business Development sheds some light on what has been underway at the organization: “There have been three key pillars to this approach. Firstly, with regards to sustainability, we can see that even with the government carbon reduction targets pushed back, that shouldn’t slow progress, or lure anyone into a false sense of security that maintaining the status quo is a good decision.
“Secondly are automation and digitization. With all the known challenges in the industry, including macroeconomic circumstances, employment cost increases
(both salary and taxation) and shortages in the workforce, we recognize that to grow, we must adapt and reduce our reliance on searching for a workforce that may not be there when we need it. On top of that, property rental and overall prices just don’t match the market we work in anymore. Our customers challenge us to reduce the costs of their supply chains and that is incredibly difficult when rents are increasing by 30-to-40 percent during review periods.
“Thirdly we have evolved our product offering. As a company, our products cover every element of a customer’s supply chain from inbound ocean and air movements and customs operations, all the way through to business to business and direct to customer deliveries. Our focus going forward is to make sure we work with new and long-term customers to give the technical support that they need. There is far more value in being a true partner to our customers than simply working contract to contract as a third-party logistics operator.”
Continuous improvement
Greg Carter, Head of Environmental, Social and Governance (ESG) offers some specific details on how the company is approaching its sustainability targets: “We are committed to achieving net-zero emissions by 2050. This ambitious goal is integrated into the fabric of our business, guided by a clear strategic vision from leadership at every level.
“Understanding the importance of sustainability, we have established six strategic goals, with sustainability woven into the core of each one. This cohesive approach is overseen by our Sustainability Steering Committee, which ensures accountability and transparency by providing regular updates to the board and the broader workforce. Our network of ‘Sustainability Champions’ further motivates employees at all levels to engage in local initiatives that complement larger, organization-wide projects.
“In line with our commitment to reducing emissions and waste, we have implemented several key initiatives. In 2022, we transitioned to 100 percent renewable electricity and made significant investments in electric vehicle charging infrastructure, reinforcing our ‘electric-only’ company car policy. Continuous improvement is part of our culture; through Kaizen projects, we identify and implement daily efficiency improvements and waste reduction practices. For those unavoidable waste materials, we operate on a ‘zero to landfill’ basis.
“In 2024, recognizing the need for cleaner transport solutions, the company invested in one million liters of hydrotreated vegetable oil (HVO) for our HGV vehicle fleet. This certified fuel reduces carbon dioxide emissions by 90 percent compared to traditional diesel, marking a significant decrease in transport-related emissions. Collaborating with customers nationally and internationally, we provide innovative CO2 calculation tools and access to sustainable aviation fuel for airfreight, facilitating further reductions in our carbon footprint.
“These efforts have led to a commendable 23.8 percent reduction in Scope 1 and 2 emissions in 2023 to 2024, translating to nearly 5000 tons of carbon dioxide equivalent avoided, this is an important milestone towards our 2050 target.
“Further demonstrating our long-term vision, Yusen Logistics is investing £300 million in a pioneering 1.2 million square-foot warehouse. It will be the first net-zero facility of its size in the UK, already achieving the Building Research Establishment Environmental Assessment Method (BREEAM) Outstanding certification. Named the Sustainable Distribution Centre (SDC), this automated facility’s strategic location next to a rail terminal will enhance our efforts to develop a rail service for both inbound and outbound freight, further supporting our emission reduction commitments.”
Community commitment
“As part of its broader ESG agenda, Yusen Logistics is also focused on active engagement with the communities in which it operates and the charities that are important to its colleagues,” Greg adds. “In the last year we are proud to have donated, through fund matching and sponsorship, nearly £10,000. This has supported local football teams, hospices, schools and many other groups across the country.”
Sustainable supply chain solutions
Looking to the future, the company is maintaining a carefully orchestrated growth strategy. Benjamin expands: “Our focus is providing our customers with solutions for the incoming property challenges that they either face on rent renewal or future sustainability or employment led taxation in the warehousing and network transport side of our business.
“In terms of our other areas of expertise, we’re also establishing our Healthcare Control Tower. The Yusen Logistics control tower offers customers the opportunity to interface their air, ocean, and road transport and customs into a single point. We then manage cost, compliance and delivery for them. From the UK we can service any country from the current control tower across all modes of transport.
“Everything we are doing now is in line with our global and local strategies, with growth at the heart of it all. Our main mission is to make sure that we are our customers’ preferred supply chain partner and, aligned to that, we want to promote responsible supply chains that are as sustainable as they can be.
“I’d like to think that in five years we will be ahead of the competition across all areas of automation, digitization, sustainability and overall delivery for our customers. Our industry and the macroeconomics that effect it are changing so rapidly, so the real challenge in the next five years is staying dynamic enough to do that.”