– Major logistics companies introduce automatic delivery cloud service, and attempt to convert delivery vehicle EV
– Japan’s Ministry of Land, Infrastructure and Transport’s 'Comprehensive Logistics Policy Program (2021-2025)' also emphasized
Japan's logistics industry is growing as the number of e-commerce surges in the wake of the COVID-19 outbreak, but at the same time, it faces a number of challenges, such as a labor shortage, poor working conditions, and establishment of a sustainable supply chain. There is a movement toward digitalization and decarbonization in the entire logistics industry, and we will look at examples of companies that are actively participating in this and at the same time find out about the 'Comprehensive Logistics Policy Program (2021-2025)' announced by the Japanese Ministry of Land, Infrastructure and Transport.
Examples of digital and decarbonization attempts by Japanese companies
1. SAGAWA Express
Sagawa Express introduced 'Loogia (Optimind Inc.)', an automatic dispatch cloud service, from October of '21 to increase the efficiency of delivery work. In the past, the delivery order was determined by analog, but with the introduction of this service, the delivery route is automatically determined, and the truck driver can even be provided with a recalculated route according to the progress of the delivery task. This reduces delivery business hours and mileage. Sagawa Express is building a system in stages to promote digitalization.
<Automatic dispatch cloud service 'Loogia'>
2. ASKUL
As the decarbonization movement in all industries is rapidly progressing, Asschool (office supply sales) is also planning to introduce a small EV truck developed by Hino Motors with the goal of reducing carbon emissions in the second quarter of 2022 only for delivery within Tokyo. . As School mainly uses office supplies, it often transports heavy and bulky items such as copy paper. Hino Motors developed a vehicle that improved the previous problems in terms of delivery distance and load capacity, and Asschool introduced it and plans to continue the challenge for the transition to EV.
<Small EV truck introduced by Asschool>
<Response of major logistics companies for decarbonization>
Japan's Comprehensive Logistics Policy (2021-2025)
The Ministry of Land, Infrastructure, Transport and Tourism of Japan announces a comprehensive logistics policy every five years. Relevant ministries are planning to promote a comprehensive logistics policy through partnership, and the current logistics policy is also being promoted in accordance with this policy. The comprehensive logistics policy has three key tasks: 5) digitalization of logistics, 2021) countermeasures against labor shortage and reform of logistics structure, and 6) establishment of a flexible and sustainable logistics network.
Logistics digitalization
The need to actively promote DX in the logistics industry has increased as the transition to non-contact and non-face-to-face logistics is urgently required due to the spread of the Corona 19 virus.
Accordingly, with the goal of streamlining work and increasing productivity through digitization of logistics, the company plans to digitize work that is written in principle. Currently, procedures such as logistical procedures and cargo collection between private business operators are made by fax, telephone, and e-mail, including making them paperless.
In addition, by utilizing sensors and RFID, we plan to establish a system so that all stakeholders can consistently check the progress of logistics and share data. An example is Cyberport (a comprehensive platform that digitizes and links data in the fields of port logistics, port management, and port infrastructure), which electronically conducts port logistics procedures.
<Cyberport>
In addition, it is related to identifying possible routes for cargo transport special vehicles on the web and allowing them to pass without a separate procedure, and to convert the face-to-face roll call procedure performed by freight drivers before and after work to non-face-to-face with the introduction of robots and ICT technologies. The ministry plans to consider deregulation.
<Speed up procedures for special vehicles for freight transportation>
<Non-face-to-face roll call using robot and ICT technology>
Countermeasures against labor shortage and reform of logistics structure
Although the labor force is scarce due to the low birth rate and aging population, truck drivers, who are major occupations in the logistics industry, have relatively long working hours and low annual income, so the working environment needs to be improved. In order to solve this problem, we plan to continuously improve the working environment through amendments to the law, such as securing an appropriate delivery rate for logistics and reducing unnecessary logistics waiting time for truck drivers.
Amend the 'Standard Freight Car Transportation Terms and Conditions' to stipulate waiting time charges as rates, clarify the contents of incidental work, and introduce a 'standard fare notification system' to provide a working environment in which truck drivers can receive a salary that is at the level of the average in all industries. plan to improve it. In particular, the 'restriction on the upper limit of overtime work for truck drivers', which will be applied from 2024, is expected to help secure and nurture drivers in the future.
In addition, the government supports the introduction of AI and IoT technology-based robots, unmanned forklifts, and unmanned transport vehicles to logistics facilities such as warehouses and delivery centers to promote efficiency in warehouse operations. will continue to do so. This will ultimately be an attempt to digitize the entire logistics chain.
<Digitalization for Logistics Chain Optimization>
Building a flexible and sustainable logistics network
Supply chains are being hit by the spread of the COVID-19 virus. Taking this opportunity, the government recognizes that it is an urgent task to secure a logistics network that can be operated continuously without being affected by large-scale disasters such as typhoons and earthquakes or outbreaks of infectious diseases.
A representative example is a plan to promote a 'smart cargo terminal' using AI technology to address the problem of a marked decrease in terminal gate handling capacity due to a decrease in the productive population and a deepening shortage of workers in ports. Accordingly, we plan to establish a system that links container import/export information with cargo handling procedure information and enables non-face-to-face operations such as face-to-face access control while maintaining security.
<Smart Cargo Terminal>
In addition, logistics infrastructure maintenance plans such as autonomous trucks to be realized in the future, 6-lane Shintomei-Shinmeishin Expressway* for group driving, designation and expansion of important logistics road routes, and review of road function reinforcement to respond to large cargo trucks plan to implement.
* Expressway connecting Tokyo, Nagoya, and Osaka in Japan's three major metropolitan areas
<Autonomous truck, road maintenance section for driving in large groups>
In terms of environment, in order to secure sustainability in the logistics industry, we will additionally promote a modal shift (conversion of existing means of transportation to more suitable means of transportation) through railroads and ships, which emit less CO2 than trucks, and FCV trucks or It plans to promote the spread of next-generation vehicles such as EV trucks.
In the long term, it is planned to form a 'carbon-neutral port' through the advancement of port functions in ports where industrial activities such as power generation and chemical take place. Specifically, it includes reviewing the size and layout of port facilities so that hydrogen and ammonia fuels for carbon-free power generation can be imported from abroad, and promoting the introduction of fuel cells in port unloading machines or large vehicles entering and exiting the port.
<Carbon Neutral Port>
implication
As telecommuting increases due to the impact of COVID-19, Japanese companies are showing changes to digitalization little by little, such as using WEB fax. The Ministry of Land, Infrastructure, Transport and Tourism has also established KPIs (important performance evaluation indicators) for each important task of comprehensive logistics policy through partnerships with various organizations, and is setting specific goals for 'digitization work 2025% start, 100% realization' by 70.
As Japanese companies and governments are showing strong will to strengthen digital capabilities and promote decarbonization in the logistics industry, it is expected that related projects will continue to be created from a long-term perspective. Therefore, it is judged that it is a good time to discover export opportunities related to projects for companies that have technologies such as AI, IoT, data processing, sensors, and robots that can be applied to the logistics industry.
Source: Nikkei Business, OPTIMIND website, Ministry of Land, Infrastructure and Transport, KOTRA Osaka Trade Center