Priority Measures in the Aftermath of the Great East Japan Earthquake

Motoki:

The Great East Japan Earthquake that struck on March 11, 2011, was a major disaster that severely affected many people and businesses. Nevertheless, a large number of corporations provided various kinds of support to the victims of the earthquake and tsunamis. How do you think corporations, including the Ajinomoto Group, should respond to such disasters? And could you illustrate this with an example of how the group contributed as a good corporate citizen?

Ito:

Immediately following the earthquake, we implemented our business continuity plan, which is designed to respond to a major earthquake, and stabilized operations. The most important thing for a company to do from the outset is to obtain accurate information related to the disaster and confirm the safety of its employees. Luckily, none of the Ajinomoto Group's employees were harmed, but tragically, family members of some employees were affected by the disaster. Our hearts go out to them and the rest of the victims of the earthquake.

Recognizing the Ajinomoto Group's responsibility as a good corporate citizen, we immediately prepared food supplies to provide as emergency rations for people in the affected areas. We selected the Ajinomoto Group's products that could be readily eaten, like instant rice porridge. Since transportation networks were in disarray at the time, company vehicles were used to deliver the food to the disaster-hit areas.

The Ajinomoto Group also has a crucial responsibility as a food manufacturer to ensure a supply of products. We therefore channeled efforts into restoring the supply chain; fortunately, the group's production plants did not sustain major damage. At a key distribution center in Kawasaki, however, storeroom shelves with products had collapsed. This caused shipment delays, leaving the group unable to sufficiently meet buyers' orders.

Consequently, while the group was able to contribute relief supplies, it fell short in meeting its responsibility as a food manufacturer to supply products dependably. With this in mind, we now have an even greater appreciation for the need to make improvements.

Post-Earthquake Priority Measures 1: Providing Support for Disaster-Affected Areas

Motoki:

The areas affected by the disaster are now on a path toward recovery. What kind of support will the Ajinomoto Group provide to these areas from hereon?

Ito:

In consideration of the disaster's impact, we formulated and implemented three sets of priority measures. The first set of measures addresses the nutrition of disaster victims who had been forced to evacuate to emergency shelters and temporary housing, specifically by helping to correct nutritional imbalances in their diet. These support measures are ongoing for three years.

Shopping is difficult when living in emergency shelters or temporary housing, and people generally depend on relief supplies. As a result, their diet becomes nutritionally unbalanced: if they mainly eat food rations like rice balls and bread, their protein intake becomes insufficient.

In that context, we felt that it was necessary to consider how to help the evacuees attain a healthy, balanced diet. We drew on the food-related expertise that the group has gained over the years to offer support tailored to their needs.

To carry out these measures, Ajinomoto Co., Inc. sent an employee to the disaster-affected area to serve as liaison between the group and local governments, NPOs, NGOs, and dietetic associations, thereby setting up a framework for collaboration. In cooperation with local dietetic associations, we are distributing food recipes and holding seminars on health and nutrition at temporary housing locations in an effort to provide information that promotes healthy and well-balanced eating habits.

For people moving out of the shelters and starting afresh in temporary housing, we are providing packages of seasonings and other products of the group to assist with cooking. The Ajinomoto Group is also providing support to employees participating in volunteer activities.

I spoke with many victims, including employees, when I visited areas affected by the earthquake and tsunamis, and a recurring topic of their concerns was the importance of food.

Eating is the most fundamental activity for people to stay alive. Even if one is immobile, or has no electricity, one must have food to survive.

In this way, the earthquake reaffirmed the importance that the Ajinomoto Group places on food, and made us appreciate anew the group's responsibility as a food manufacturer to supply products that are essential for people to live.

Post-Earthquake Priority Measures 2: Promoting Smart Energy

Motoki:

The Japanese government requested major users of electricity to curb their power consumption by 15% this past summer. What were the results of the Ajinomoto Group's energy saving measures?

Ito:

Returning to the priority measures I previously mentioned, we implemented a second set of "Smart Energy" measures based on using electric power appropriately and intelligently. Through these measures, which are being carried out to conserve energy at all business sites, the Ajinomoto Group has been reducing peak hour power usage by around 15%.

The measures include changing shifts at production plants to weekends and evenings, making existing equipment more efficient through upgrades, as well as installing new in-house power generators. Since the day of the earthquake right to the present, Ajinomoto Co., Inc. Kawasaki Plant has actually supplied about half of the power it generates on-site to Tokyo Electric Power Company.

Other Smart Energy measures are designed to reduce electricity consumption at offices and include lengthening summer holidays for employees, finishing shifts one hour early, turning off unneeded lights, and shutting down some of the elevators.

Post-Earthquake Priority Measures 3: Ensuring a Stable Supply of Products

Motoki:

From the experience of the earthquake, did the Ajinomoto Group come to recognize the need for any operational improvements?

While our emphasis on supply chain efficiency has not changed, it cannot be achieved at the expense of ensuring a stable supply of products. To better guard against risks to our supply capabilities, priority measures were formulated with the intention to decentralize operations and enable more flexible management systems.

To this end, we examined an array of existing risks at every stage from procurement of raw materials to production and distribution. We are establishing additional distribution routes, decentralizing production plants and distribution centers, and creating a framework that enables group operations to be shared across production plants and offices where required. These measures not only apply to earthquake scenarios; they also extend to all kinds of potential issues that need to be addressed through risk management.

After visiting the disaster-affected areas, my impression was that there were problems in getting relief supplies into the hands of the people who needed them. In ordinary business operations, cooperation between each step of product production, distribution and sales proceeds relatively smoothly, but during emergencies the final step often fails to work.

The rationing and distribution of relief supplies into easily handled packages for recipients is a very challenging task. Perhaps companies with expertise in logistics and distribution should have provided more support to properly deliver the necessary goods to evacuees, who have varying needs. This has become an issue for the entire consumer goods industry.

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