b'Id say the simple explanation is that logistics is the movement of goods from point A to point B. It is easier said than done, as there are so many issues to deal with that you have to consider. The biggest change in logistics has been the speed and access of informa-tion. Everything now is 24 hours a day, 7 days a week and 365 days a year. My Sumitomo career began 28 years ago, and biggest day-to-day challenge is still getting the freight either picked up or delivered and minimizing the costs associated with the movement. As for the future, I see SGL getting more involved with Sumitomo and subsidiaries in their day to day operations. Import and export compliance, inventory management and insurance will be major areas of attention. Efficient logistics systems can be making use of any synergy within the SCOA group.- T ed KozlowskiPresident of Sumisho Global LogisticsSometimes the logistics support has no supply chain con- We always look to answer the question of, how can we pro-nection, however, and merely serves as the guiding hand forvide support for this subsidiary companys growth? Takayama processes by showing their expertise. said of their goal of constant improvement. The inventory We also serve as guest auditors for the International Auditmanagement or shipping may be similar, but we propose some Department. At one time, we were doing postings on some ofslightly different kinds of supply chain management options. these subsidiaries as an outside third party, postings for energySometimes a slightly different type of approach could increase companies. That means that when they needed invoicing donethe companys management capability which means, of and our accounting department was involved, we would docourse, could help increase the profit. As a logistic organization posting and invoicing to make sure that the documents wereoperating globally, we have to change our approach to gener-accurate and the customers are being invoice correctly. Weate a profit. Just the quantitative impact to the company is not were contacted once by a company, one of our subsidiaries, toenough, but seeking out new customers as well as expanding help them set up guidance and compliance for their activities,current business is the most successful way forward. so we created a day-to-day handling manual. Another exampleTakayama believes that factors that increase business will is our support for the LNG business during the formation ofinvolve some overhaul of the current processes to compete in that company. We set up their export regulations and trainedrapidly changing world markets. their staff on how to do export filing that companies need toI think logistics is rapidly evolving, changing and adapting, and do. Those are examples of non-shipping support jobs, and alsoI think we have to rapidly change and adapt with the way the helping out on an as-needed basis.industry is changing, said Rogawski. As the industry changes, we have to execute those changes within our organization, so supporting and adding value to Sumitomo Corporation Looking at Process to Increase Profit of Americas. I think of my personal tasks to execute and to give detailed high level support so we continue to garner For your average trading company, logistics is involved inrespect from Sumitomo Corporation and also provide the support for shipping, inventory management, compliance, taxguidance to Sumitomo Corporation globally. We look to be systems issues, etc., but that often extends to subsidiaries.something that is needed for a company with our identity, with SCOAs Group Companies also receive logistics support, whichour spirit, because we are part of Sumitomo Corporation Group can be tied to that companys increased profits when certainworldwide, and thats one of my personal goals. processes are at their best, or even improved. continued next pageSumitomo Corporation of Americas 5'