Expanding Advanced Logistics Solutions for Electric Components Globally

Based on our extensive experience supporting the production of the Honda Group, the Parts Division has established a robust network for parts supply in the global mobility industry. How are we responding to the wave of electrification sweeping through the automotive industry? We spoke with two key members of the Parts Division about their current initiatives and future outlook.
*Note: The information is current as of March 2025.

Strengths in Global Network and Transportation Routes

ーCould you tell us about the overview and strengths of the Parts Division?

Takaaze: We procure parts used in automobiles, motorcycles, and power products from around the world and supply them to many customers, including the Honda Group. Our long-standing support of the Honda Group's production has enabled us to secure a comprehensive network and transportation routes, and our extensive experience in handling parts is a strength in the field of parts supply chain management.

Additionally, to flexibly respond to optimal packaging and mixed loading in parts logistics, we have established warehouses close to our customers, enabling us to consistently handle export/import, delivery, supply and demand management, packaging design, and small-lot cargo consolidation, providing services tailored to our customers' needs.

In global commercial and logistics design, we leverage these strengths, and with sales offices in major countries, we can respond to geopolitical risks and various national regulations, thereby realizing optimal logistics design proposals for our customers.

In terms of quality, we have established bases in 19 countries worldwide, ensuring a system and organization that can respond quickly and accurately. We are continuously striving to build optimal supply chains and to provide the best solutions.

Building a New Parts Logistics Model in Response to Electrification

ーThe wave of electrification is sweeping through automobiles and motorcycles. How are you responding to changes in the external environment, such as the reduction in the number of parts due to electrification?

Takaaze: As the electrification of automobiles and motorcycles progresses and the number of internal combustion engine parts decreases, our division is also looking to increase the handling of EV (electric vehicle) parts such as batteries and drive motors. Through our expertise in packaging design optimized for specific transportation conditions and enhanced quality control, we are building a new parts logistics model.

We aim to contribute to the overall optimization of the supply chain while synchronizing with the Honda Group's strategy. As electrification progresses, we believe that by flexibly responding to Honda's procurement plans and strengthening collaboration, we can also respond to the entire mobility industry.

ーCould you explain the needs and solutions related to in-vehicle batteries?

Uehara: The Honda Group has set a goal to convert 100% to EVs (electric vehicles) or FCVs (fuel cell vehicles) in the United States by 2035. We are already handling batteries for hybrids, but we plan to increase the application of batteries for EVs and FCVs in the future. We aim to build a procurement and supply scheme in collaboration with battery manufacturers and customers to ensure quality at a reasonable price for newly applied batteries.

ーI hear that temperature management is important for lithium-ion batteries.

Uehara: Indeed, lithium-ion batteries are challenging to handle. There are various regulations regarding transportation and storage, which differ by country. When handling these batteries, we check product specifications and comply with packaging specifications, transportation requirements, and storage requirements that meet the transportation regulations and fire laws of each country.

Temperature management is crucial. Some batteries require transportation and storage below a certain temperature to ensure quality, and this temperature is specified in the specifications.
When containers carrying batteries pass through the Pacific Ocean in midsummer, they are exposed to high temperatures for extended periods. Therefore, we have taken measures such as transporting in temperature-controlled containers and equipping storage warehouses with air conditioning to enable 24-hour temperature management.

ーHow do you manage the inventory of lithium-ion batteries?

Uehara: Batteries naturally discharge, and if the remaining charge falls below a certain level, quality cannot be guaranteed. Therefore, specifications define a so-called expiration date, such as "assemble into a vehicle within ○○ days after manufactured date."
To meet this deadline, we conduct maritime transportation and storage as safety stock and ship to customers.

Thus, traceability management from the production of batteries to delivery to customers is crucial. In addition to managing the number of days, we also check and record whether the specified charge level is maintained by plugging the batteries into the warehouse upon arrival.

Expanding HEV Experience and Know-How Horizontally to Asia and Beyond

ーHow are you horizontally expanding the experience and know-how accumulated with BEVs globally?

Takaaze: We are already handling two-wheeler batteries in Asia, but we believe that Asia will also become important for four-wheeler batteries. Therefore, we plan to expand the supply chain functions developed in North America to Asia.

Uehara: In North America, we have four quality experts in our division, all of whom are veterans with over 30 years of experience. We are currently working on horizontally expanding their know-how globally to enhance our quality support.
Through temperature management, charge level management, transportation and storage traceability functions, and inventory level optimization, we aim to standardize our service functions at a high level to contribute to the stable production of customers worldwide.

Expanding the Supply Network to Parts Manufacturers Outside the Group

ーCould you tell us about the future direction for business expansion?

Takaaze: Our basic strategy is to horizontally expand the advanced procurement know-how developed in each country, such as BEVs in North America and two-wheelers in India. Additionally, a challenge is how to utilize this value proposition for customers outside the Honda Group.

Our division holds management meetings regularly in each region to exchange information. For example, we share know-how on batteries that are ahead in North America and conduct site visits to advanced warehouses in each region. We also share customer needs and response cases in each region to discuss business strategies. We aim to continue providing services that respond to changes in the external environment and manufacturing.