NYK Group provides logistics services for TESCO in Asia and Europe.
Yasuyuki Takahashi of NYK Logistics (Hong Kong) Ltd. talks with Christophe Roussel of TESCO International
Sourcing about the partnership between the two companies.
Takahashi: What can you tell us about why TESCO chose
NYK as a partner?
Roussel: TESCO has worked with NYK for almost 10 years.
In 1998, TESCO sourced very little from Asia (300 containers per year); however, NYK demonstrated that they understood the TESCO vision of growth and were committed to investing in TESCO for the long term. We are now doubling our direct sourcing business every two years, sourcing from factories across Asia and Europe and shipping the goods to our 13 retail operations around the world. TESCO’s culture is centered on creating value for customers and earning their lifetime loyalty. In our relationship with NYK, we are the customer and NYK shares a similar vision in meeting our needs and requirements. NYK takes the initiative to address issues proactively, and is flexible and innovative in finding solutions to our problems. Whilst you are a Japanese company and we are a British one, we speak a common language, that of total service to the customer.
Takahashi: In terms of the service NYK provides, what is important to your business?
Roussel: In our business, we can’t succeed if we don’t plan. It is the same for you, if you don’t plan for the future; you don’t know whether you need to invest to support business growth and you can’t succeed. Good planning requires accurate and timely data. We share our plans with NYK, and you help us

achieve them. Quality of service is also crucial; whatever we buy must be maximum quality and have zero defects. We also expect a sense of urgency. Success is simply the result of solving issues faster than your competitors.
Takahashi: Is there anything else?
Roussel: Yes. I can’t overstate the importance of trust. We place a lot of trust in NYK’s ability to execute our contracts reliably. NYK does a great job of extending its corporate culture and values to its managers globally and providing TESCO with exactly the same level of service and quality in every country in which we do business together.
Takahashi: If you had to pick just one priority, what would it be?
Roussel: I would have to say it is the sense of urgency in finding and implementing solutions quickly. The advantage goes to the business that implements solutions, not the business that considers solutions. TESCO excels at being proactive, not reactive. Implementing solutions is a very fast and efficient process.
Takahashi: We’ll do our best. Of our many collaborative efforts, can you cite a case in which we helped you succeed?
Roussel: One of our major efforts is to simplify our business and make life easier for our suppliers, service providers and for our staff as well. Anytime
TESCO can simplify a process, reduce waste, or add value, we have an opportunity to become leaner and more efficient than our competitors. At TESCO,
Director & General
Manager,
International Network
Solution Division
NYK Logistics (Hong
Kong) Ltd.
we continually retread, reengineer our processes, simplify, and adapt. Good examples of where NYK has helped
TESCO simplify our processes are in reducing the number of shipping documents that we ask from our suppliers and supporting the development of the movement of goods by slip-sheet (see p. 10). This has enabled containers to be cross-docked in our UK distribution centers, enabling us to unload a container in 30 minutes instead of three hours.
Takahashi: So NYK can be of assistance to you in such cases?
Roussel: Yes, and please don’t wait for me to ask you for help. If you have a good idea, come and discuss it with me; this is a real partnership. I value that we can speak freely together, that there is no hidden agenda, and there is full transparency about how we are doing.
Takahashi: Is there something in particular that you expect from NYK?
Roussel: I expect efficiency. I may want to integrate some of the ways that NYK does business into TESCO.
You can freely borrow ideas from us as well. When I first joined TESCO, I already had 15 years of experience in dealing with Japanese suppliers and expected NYK to be as thorough but also as slow. At NYK, decisions are made quickly and decisively. Working with you has changed my perception of Japanese culture.
International Sourcing
& Logistics Director,
TESCO International
Sourcing
Takahashi: Do you have any ideas about how NYK and
TESCO could collaborate to help society?
Roussel: We’ll have to find an opportunity to collaborate.
TESCO believes strongly in education and is building two schools in partnership with some of our suppliers in Sri Lanka, and planning another in Bangladesh.
Takahashi: Which CSR activities of TESCO and NYK do you find interesting?
Roussel: CSR is really integral to both of us. Activities involving the environment and raising money for charity interest me.
We have many initiatives within TESCO to reduce our carbon footprint and help educate our customers in how they can play their role. I can see the NYK Group Values—integrity, innovation, and intensity—being put into practice in your activities.
You received our Value Award for your tangible CSR actions toward carbon dioxide reductions and inspired us to evaluate
TESCO’s carbon emissions this year. NYK employees embody the company’s values and strive to uphold them every day. I see it in my interactions with you, and I read about it in your internal magazine Seascope . You should publicize your activities more. The business world can learn from you.
NYK Group CSR Report 2007