1. TOP
  2. EnglishTOP
  3. Sustainability
  4. Value Creation Process Overview

Value Creation Process Overview

Value Creation Process Overview

The Pack Group has established a purpose and basic policy for realizing sustainable management and incorporated this purpose and policy into its corporate philosophy structure. Its mission is to bolster social prosperity and creating satisfaction through packaging by adapting to external circumstances and delivering products, services, and value to stakeholders through its business activities.

Value Creation Process Overview

Management Capital

We create new management capital based on the outputs and outcomes of incorporating (investing in) six types of management capital into our business model. The Pack Group’s key management capital consists of its solid financial foundations, creative human resources and knowhow, extensive customer base, structures that facilitate joint efforts with manufacturing subcontractors, and forest resources and related conservation activities.

Financial capital

Solid financial foundations and investments to promote growth

The Group boasts the leading market share in Japan in paper shopping bags and has demonstrated growth mainly in areas like the manufacture and sale of paper products and film packaging. We strive to pay stable dividends while enhancing corporate growth through expanding facilities, primarily facilities that produce paper cartons and paper bags, and by increasing both ROE

  • FY2023 ROE 8.3%
  • FY2023 ROIC 7.6%
Human capital

Highly specialized and experienced human resources

We employ tiered training programs and evaluation and support systems to enable each individual to demonstrate his or her abilities to the utmost. Our sales sections with wide-ranging package expertise and creative sections handling product design, manufacturing design, and planning propose optimal products for customers. Our manufacturing, quality control, and procurement sections support provision of a diverse range of high quality products while building on their own skills from day to day.

  • Employees as of end of FY2023
    (consolidated)
    1,183
  • Employees completing
    digital transformation training:
    700
Intellectual capital

The Package Laboratories serving as a communication and R&D center, and an extensive database of proposals

Our Package Laboratories in Tokyo, Osaka and Fukuoka collect and exhibit materials on more than 100,000 packages in total.
Their individual sections cooperate in R&D on state-of-the-art packages. They also are developing proposal databases to share Groupwide in leveraging the latest information on packages to support sales activities.

  • Collected case studies on packaging as of end of FY2023 Approx.100,000
  • Patents held
    as of end of FY2023
    60
  • Design rights held
    as of end of FY2023
    45
Social and
relationship capital

A customer base that extends across various industries

The Group deals with about 14,000 companies who form its extensive customer base. To meet various customer needs, we cooperate with numerous suppliers in Japan and worldwide in addition to our own plants, to deliver a wide range of packages from apparel shopping bags through packages and packaging solutions services for food and sanitary products, delivery bags, and promotional materials. We also implement various CSR activities in cooperation with local governments, communities, and nonprofits.

  • Transaction counterparties
    in FY2023
    Approx.14,000
Manufacturing capital

Alliances with domestic and overseas subcontractor plants and a network of logistics facilities across Japan

We maintain a manufacturing infrastructure capable of meeting diverse customer needs through our 10 plants in Japan and overseas and alliances with subcontractor plants. We also employ risk management to enable stable supply of products through readiness for potential disasters and accidents. Our nationwide network of logistics facilities, including four logistics centers on the sites of four domestic plants, enables efficient delivery.

  • Plants in Japan and overseas
    (including Group plants)
    as of end of FY2023
    10
  • Logistics facilities in Japan
    as of end of FY2023
    15
Natural capital

Effective use of natural resources and forest conservation activities

In light of the fact that the Group’s businesses are based on natural resources such as timber (paper pulp), water, and petroleum (plastics), we strive to lessen our environmental impact through means including effective use of resources, controlling waste, and promoting recycling. We also have carried out continuous forest conservation activities since 2001 and contribute to cyclical use of wood pulp.

  • Forest conservation
    activities in FY2023
    9
  • Trees planted in FY2023 828

Business Model

The Pack Group’s strengths include planning and proposal capabilities driven by specific customer needs and product development capabilities that track market trends. We deliver total solutions ranging from planning through production and logistics, leveraging our advanced technologies and extensive knowhow as a group of packaging professionals.

Planning and proposal
Planning and proposal

Sales Sales planning Package Laboratories Planning and proposing packaging solutions for customers

  • Responding swiftly to packaging inquiries through a nationwide network of business sites
  • Total packaging solutions provided by knowledgeable, experienced sales personnel
  • Package Laboratories that effectively function as communication centers and R&D facilities
  • Plans and proposals developed by staff highly familiar with products and with packaging trends to help customers identify optimal packaging solutions
Product development
Product development

Graphic design Manufacturing design Materials development A group of packaging professionals

  • A total of some 75 graphic designers, industrial designers, and planners on staff nationwide
  • A group of professional package developers, highly familiar with trends across a wide range of industries and businesses, to deliver high quality manufacturing
  • R&D on new materials to meet ever-changing needs, including demand for eco-friendly materials
Procurement, production
Procurement, production

Procurement Production management Production technology A robust production structure based on joint efforts among our 10 plants in Japan and overseas and with subcontractor plants

  • Our network of plants in Japan and overseas and subcontractor plants employs risk management to prepare for potential disasters and accidents
  • Our production facilities can meet delivery times and cut logistics costs.
  • We meet diverse needs based on joint efforts and sharing technologies and knowhow among plants.
Quality control
Quality control

Quality assurance / quality control Stable supply of high quality products

  • Maintaining and improving high quality levels through production process controls based on product standards and activities to check and improve the quality of finished products
  • Certified under ISO 9001 (quality management) and FSSC 22000 (food safety), our operations meet international standards. We also deliver the high quality customers expected of products made in Japan.
Shipping, delivery
Shipping, delivery

Logistics Sales and services Nationwide logistics network in Japan

  • Realizing efficient delivery through integrated management ranging from manufacturing through shipping at logistics facilities located on the sites of four plants in Japan
  • Enabling efficient delivery nationwide based on a network of 15 logistics facilities across Japan
  • Enabling optimization of inventory and delivery timing through coordination with sales and service sections and manufacturing and logistics sections

Value Provided

The Pack Group recognizes the importance of building relationships based on trust with a diverse range of stakeholders. We understand the perspectives of individual stakeholders and propose environmental, social, and economic value based on carefully considered partnership roles. All members of the organization share the commitment to contributing to society through packages and packaging.

Realizing our purpose Mission to bolster social prosperity and creating satisfaction through packaging

Realizing our purpose Mission to bolster social prosperity and creating satisfaction through packaging

Economic value

Shareholders and investors
Maintaining stable finances and dividends (payout ratios)

The Pack Group makes decisions on dividends that account for maintenance of stable dividends and sufficient internal reserves. Internal reserves are intended to strengthen the financial constitution and meet funding demand for production facilities, R&D, and other needs. We believe they contribute to the stability and growth of shareholder dividends through future profits.

Social value

Employees
Maximizing employee engagement(realizing rewarding work and career planning)

To broaden opportunities for diverse human resources to thrive, in addition to promoting improvements in working environments, forms, and systems, we seek to ensure appropriate assignments based on the effective use of our talent management system and other programs. We encourage individual and corporate growth and vitality through training and other opportunities for skills improvement and reskilling.

Social value

Suppliers
Realizing and maintaining structures for partnership, coexistence, and shared prosperity

Announced in July 2022, The Pack Group’s declaration of partnership building seeks to enhance coexistence, shared prosperity, and partnership throughout the supply chain. In addition to raising awareness of the content of the declaration both inside and outside the organization, we will also strive to increase value throughout the supply chain by smoothly putting it into practice.

Social value

Customers
Cocreating brand value

As a group of packaging professionals, we propose optimal packages to customers. We propose solutions based on ascertaining customer needs and issues regarding not only the actual packages but also related aspects. Furthermore, we support customer environmental initiatives by offering eco-friendly products and we participate in product planning and sales methods, to cocreate brand value with customers.

Social value

Consumers
Providing functional and sensory value through packages

The Pack Group develops products and services to meet ever-changing needs, based on planning and proposals reflecting the roles and values that consumers demand of packages. We supply packages that reduce consumer stress, such as shopping bags that make it easy to carry purchases and paper cartons and corrugated boxes that are easy to open and dispose of. We also add originality in design, materials, and forms, to propose packages that make products and brands more valuable. This creates sensory value and increases consumer satisfaction.

Environmental value

Global environment
Protecting the environment through business activities

Based on our environmental philosophy—We will work to protect our irreplaceable environment and broadly contribute to society out of our deep respect for people and nature as well to inspire future generations—we have sought to reduce the environmental impact of production activities. We bring to life the environmental solutions demanded by society through the development and sale of eco-friendly products as well as forest conservation activities through The Pack Forest® Environment Fund.

See related pages

This website uses cookies for the purpose of improving the service. If you agree to the use of cookies, please click the "Agree" button. For more information on the use and handling of cookies, please see About Cookies.