In our activities for a stable product supply and reduction of SCM (supply chain management) cost and environmental burden, we are undergoing a variety of activities in procurement, manufacturing, and logistics. As for procurement, we have made bottles lighter and labels thinner, focusing on environmental considerations while reducing material cost. In manufacturing, we have heightened the extraction rate of production lines and self-manufacturing average, cutting down costs. Additionally, reinforced communications between the SCM department and the sales department has lead to enhanced supply-demand accuracy, resulting in a reduction in disposal products for 2011 compared to the previous year. By investing in renewed production lines and the introduction of the in-line blow molder* 1, we are aiming for a medium-term manufacturing cost reduction while providing for our consumers’ diverse needs. In the logistics field, we are continuing our installation of a stock-intensive “distribution center,” which will allow streamlined distribution from our logistic facilities to our consumers and customers, reducing distribution costs and allowing a long-term restructuring of the logistics process. In 2012, we will start a new distribution network in Nagasaki and Osaka and validate the effects with a goal of full-scale expansion within our sales region. *1 In-line blow molder: our own PET bottle-molding device Plant Daisen Manufactured items Mineral water Package Plant PET bottle Manufactured items Carbonated drink, Sports drinks Kyoto Package PET bottle Carbonated drink, Coffee, Tea, Sports drinks, Fruit juice Can Carbonated drink, Sports drinks, Fruit juice, Lactic drink Tank*2,BIB*2 Coffee Roasting*2 Akashi Carbonated drink, Coffee, Tea, Sports drinks, Fruit juice PET bottle *2 Articles for cup vending machines and for dispensers. Plant Hongo Plant Kiyama Manufactured items Package Carbonated drink, Coffee, Tea, Sports drinks, Fruit juice PET bottle Carbonated drink, Sports drinks, Fruit juice Carbonated drink Carbonated drink, Fruit juice Carbonated drink, Sports drinks Tosu Coffee, Tea Coffee Manufactured items Package Carbonated drink, Coffee, Tea, Sports drinks, Fruit juice PET bottle Carbonated drink, Coffee, Tea, Sports drinks, Fruit juice Can Can Tank*2 Bottle PET bottle Can Roasting*2 *2 Articles for cup vending machines and for dispensers. Distribution Centers 14 Annual Review 2011 Supply Chain Management Activities Supply Chain Management Activities