Matsukiyo adopts ezTRADE to improve trade efficiency and go green

Matsumoto Kiyoshi (matsukiyo), a well-known pharmacy chain in Japan, has grown rapidly and opened 10 stores in as short as 2 years. 2 of the Hong Kong stores holds the top 10 position in sales among the company's expansive network of over 3,400 stores throughout Asia, showing strong locals’ demands for Japanese products.  

The company has experienced steady revenue growth, driven by its product diversification strategy which highlights more than 16,000 different products offering, from cosmetics and health foods to everyday grocery. Matsukiyo has to process tens of thousands of POs and invoices every month to ensure products are never out of stock. 

While 80% of the group's products are shipped directly from Japan to Hong Kong, the other 20%, such as Kao and Lion brands, are supplied via local agents at present. Keenly aware of the values of EDI (Electronic Data Interchange), the company has been using GS1 HK's "ezTRADE" platform since the Group’s inception in Hong Kong, to trade with suppliers electronically that promises seamless communications.

Matsukiyo adopts the Gateway solution of ezTRADE, the leading B2B trade platform in HK, and connects it to the ERP system to facilitate trading. In fact, more than half of matsukiyo local merchants are already ezTRADE members prior and have been familiar with electronic trade, so their onboarding processes are quick with minimal disruption to daily operations. The platform now processes 24 million EDI messages every year. 

One-third of matsukiyo local suppliers are using ezTRADE to receive digital PO and send invoices. The platform helps digitalise the trade processes, from creating POs, transmitting orders to suppliers, generating invoice based on the PO after delivery, to invoice checking by buyer.

Introducing the solution in phased approach, matsukiyo allows EDI beginners to familiarise themselves with the solution, while GS1 HK offers training for suppliers to quickly learn the simple and easy-to-navigate interface. 

More than tens of thousands of orders are made through ezTRADE by the group today. Various departments like purchasing, receiving, accounting are enjoying better efficiency because of the clear and accurate electronic documents. For suppliers, details of the invoices are drawn automatically from the POs, like product information, quantity, unit price, etc., helping to reduce man-hour and error for input, while increasing accuracy. The company’s accounting team can minimise time for cross-checking the invoices as they are based on standardised format.

With increasing number of branches, matsukiyo is also broadening its product range with more daily essentials and food products. With ezTRADE, matsukiyo not only benefits from the highly efficient trade processes, but also goes green by curbing paper use. An extended function of ezTRADE allows the SME sellers to leverage their trusted trade data on the platform for trade financing, supporting their businesses to scale up and grow stronger with partners.

Matsukiyo enjoys 4 key benefits by adopting the solution:

• Improve trade efficiency between buyers and sellers by shortening time for validation
• Ensure data accuracy and reduce human error
• Support green agenda by going paperless 
• Foster closer ties with partners because of the value-added service

Matsumoto Kiyoshi (HK) is a subsidiary of Matsukiyo Cocokara & Co. The group is the largest healthcare and beauty chain in Japan, operating more than 3,400 stores in the country. Aims to become "Asia's no. 1 healthcare and beauty brand", its Hong Kong business arm provides the customers with popular Japanese health and beauty products and services.