Annual Report 2000 (For year ended March 31,2000)

Business Review
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   Information Technology Contributing to the Advancement of Our Customer Services

With steady/diligent efforts, introduction of practicable and profitable IT has been underway. This helps to upgrade work for customer satisfaction in proficiency and quality. We are virtually positioned to incorporate IT into all business practices. The e-commerce business concept is of keen concern and a top target of the Company.
 
22.jpg (13622 ???)Information System is now a key to success in the ever-changing business environment, and playing a much more important role than ever before. Since "K" LINE conducted "System Re-engineering" project to optimize its computer system in size in 1997, we could overcome Y2K issues without any serious problem and could rather improve still further our core business application systems. With a broader expansion of EDI among our offices, it has been possible for us to further streamline the business process and improve our responsiveness to customers.
     In October 1999, the government-driven project named SeaNaccs (Sea Nippon automated cargo clearance system) went into practice to automate customs clearance procedures for export and import in Japan. We participated in this project from the beginning, taking an important part as an ocean carrier, and implemented new Documentation and Traffic application systems at the same timing of SeaNaccs implementation.
     In January/February 2000, we implemented a new terminal operation system in four terminals operated by "K" LINE group companies in Japan to streamline and rationalize terminal operations and cargo handling in accordance with automated customs clearance system-SeaNaccs. We adopted the package software CATOS (Computer Automated Terminal Operation System) replacing old terminal systems by the new Windows-based Client-Server system. The system enhancements have contributed greatly to improvement in the level of our service for customers.
     As a global carrier serving our customers worldwide, we are always taking a "global approach" in the area of Information Technology (IT). We have an annual conference called "K" LINE World Information System Conference to review all IT-related issues among all our offices worldwide and plan to improve our capability on a global basis.
     At the last conference, we set our target for implementation of communication with customers on the EDI with the fullest utilization of the Internet and e-commerce.
     We realize how important it is to serve and help our customers rationalize logistics by virtue of Information Technology. We are confident that we can be the most dependable business partner for our customers in providing required information, especially in ocean transportation sector, our core business area. Our information activity will assist them with their SCM (Supply Chain Management) scheme. We now offer various services on the Net via our Homepage, which are Global Cargo Tracking, Internet Booking and Bills of Lading. We continue to enhance our features and introduce new functions for greater customer satisfaction.
     E-commerce is also one of our major targeted areas. We have actively participated in the Bolero project as a member of trade chain. SWIFT and TT Club funded and established Bolero, which will serve as an open and neutral international organization to support document exchanges including Bills of Lading in the secured environment for settlement of foreign trade activity. We continue to participate in Bolero service to support customers through e-commerce in ocean transportation.
     We, at "K" LINE always try our best to improve our services in any aspect by adopting all possible and practicable Information Technology.

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