No. 1: Don’t be hung up on the tradition and goodwill (November 17, 2010)

Nakakita Yakuhin, a Nagoya-based drug wholesaler, was established in 1726. When the company was doing business with the shop name “Izutsuya” in the Edo era, a broke out at the bathroom of this shop in 1855, and the fire immediately grew to be a big fire and burnt neighboring houses. In 1966, it rebuilt the shop and made the roof lower than roofs of neighboring houses on purpose to show the apologies for having caused the big fire. With the advent of the Meiji ear that began in 1968, the company started to handle western-style medicine. Aggressive and energetic, the 7th family head visited the U.S. to see the rationalization of operation using computer in 1968 and 1969 and expanded the distribution network. Much affected by this father, the 8th family head integrated manufacturing and built a distribution center beside the manufacturing plant.

The 8th family head did not succeed his father’s name contrary to the tradition, saying “If I am hung up the tradition, no drastic reform can be achieved.” He took the initiative in constructing the state-of-the-art distribution center and introducing the information system to increase the efficiency of operation. In fact, no drug wholesalers introduced such advanced information system as Nakakita Yakuhin. His initiative helped the company strengthen the sales force. In addition, he set up the sales force specially dedicated to dispensing pharmacies despite the opposition of other directors who dislike increasing cost, knowing well the current system found it hard to take care of medical practitioners and dispensing pharmacies simultaneously.

The manufacturing division is expanding business under the theme of erasing, and disinfectants are growing to be one of the mainstays of this company. The 8th family head is planning to increase the outsourcee business of large pharmaceutical companies and spin off the manufacturing division into a separate company to give outsourcers sense of security about confidentiality obligation. As shown the above, he is working out new innovations from one after another. The courage to overcome the tradition is one of the secrets to keep a long-established company prosper.