Hakudo: Material Supply in the Digital Age

By Daniel de Bomford and Bernard Thompson

The digital age has brought about a radical shift to commerce. Online platforms like Amazon have created a new paradigm for consumer goods, opening new pathways for businesses and customers alike. Hakudo Co., Ltd. is bringing materials supply and monozukuri—Japanese craftsmanship—into that digital age. President Koji Tsunoda says their goal is to become a global go-to platform for materials. “Our goal is to become the Amazon of monozukuri, and we are enhancing our digital platform to offer more comprehensive online services to our customers.”

Japanese manufacturing is known for its reliability and high-quality, driven by the capability of manufacturers in conjunction with traders like Hakudo. Mr. Tsunoda says that Hakudo’s role is not only distribution, but also to convey customer feedback to the manufacturer, which is invaluable in maintaining Japan’s competitive advantage. Currently Hakudo primarily services semiconductor manufacturing equipment and OLED flat-panel displays but is diversifying into the high demand industries of automotive, aircraft, food and medical. Aluminum represents 60% of materials sales, driven by the EV sector’s demand for lightweight materials needed for energy efficiency.

Hakudo receives around 20000 requests per day—approximately 10000 of which result in actual orders—80% arrive via the online platform, with around 40% of the orders. Hakudo’s capability is supported by bases all over Japan with over 5500 items and 7000 tons of stock on hand and through its digital platform, offers more than 100000 items handled by its partners. Mr. Tsunoda says Hakudo processes orders received by 5 p.m. that night and delivers them the following day.

Hakudo is currently looking to expand into the international market, with systems being set up in the USA, China, Thailand and Vietnam and are looking to form partnerships in India and the Philippines.