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Kao, Kanebo Integrate Logistics and Distribution

July 14, 2008

JAPAN: Kao Corporation and Kanebo Cosmetics Inc. have begun to integrate logistics and joint distribution of their consumer products and cosmetics, for their common customers.

The goal is to more efficiently utilize logistics infrastructure, including logistics bases, systems and relevant subsidiaries. By incorporating Kanebo Cosmetics’ logistics bases with Kao Group’s logistics integration plan, the companies will reduce rental fees for external storage and cargo handling fees. At the same time, they plan to reduce delivery fees by more efficiently using Kao’s delivery routes for consumer products. Kao and Kanebo Cosmetics are targeting cumulative cost reductions of approximately $48.5 million by 2010.

Since November 2007, the two companies have sequentially implemented logistic integrations in the Kansai area and Hokkaido. In October, the firms plan to establish a logistics center in the Tohoku area. By 2010, integrated logistics bases will be located throughout Japan to provide nationwide joint distribution for mutual customers. More info: www.kao.co.jp.en

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