With the power of logistics, we will develop businesses to support the realization of the next-generation sustainable industries and social infrastructure in various areas across the globe.
We have enhanced medical DCs across the country and provide storage and shipping services specialized in pharmaceutical logistics.
In order to enhance intangible aspects of GDP, we are working to strengthen quality assurance system in the pharmaceutical logistics. For example, we set up an organization dedicated to promoting GDP, which is developing a quality management system for GDP management and also conducting verification experiments such as for the next-generation temperature sensor to monitor temperature during transportation.
In FY2021, we provided our customers with low-cost GDP-compliant temperature mapping services at the advanced medical DC, including preparation of implementation plans and inspection reports.
We also have a fuel procurement scheme and dedicated drivers familiar with characteristics, etc. of medicines as part of the BCP system to sustain supply chain in case of an emergency. We will continue to contribute to maintaining high quality pharmaceutical logistics by working on proper management of increasingly complex distribution channels.
Area of medical DCs: About 270,000 square meters (as of March 31, 2022)
Of these, standard equipment for distribution centers that conform to GDP
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*GDP (Good Distribution Practice): "Appropriate distribution standard for medical supply" to ensure strict quality control to prevent quality deterioration during transportation and storage.
Moves toward a decarbonized society are now accelerating around the world. Japan too set a goal of becoming "carbon neutral" by 2050, and making renewable energy the main source of power is considered essential to achieving this goal.
Under such circumstances, in FY2021, our group transported onshore windmills in Rankoshicho, Hokkaido, as part of our initiatives to transport social infrastructure-related equipment to contribute to expand renewable energy use. The route to the onshore windmill construction site included mountain roads that are too steep or narrow for ordinary trucks and trailers, but our "Multi Carrier" multi-axle trailer made it possible to transport the equipment from the foot to the top of the mountain. This transport project was accomplished by leveraging our technologies and experience obtained from many years of our service to transport power generation equipment and also by maintaining close coordination with the construction company and regional partner companies. We will continue to contribute to the realization of a decarbonized society through transportation related to renewable energy business including wind, biomass, and solar power generation in Japan and overseas.
We will contribute to a sustainable society by supporting customers' business activities and the spread of renewable energy through the provision of integrated solutions for the safe and reliable delivery of important products.
Our group is promoting the implementation of new technologies and labor saving technologies at logistics sites in order to respond to social issues such as labor shortages, and is promoting automation and labor saving in site operations. By introducing new technologies and labor-saving technologies to logistics sites, we will reduce the burden on workers and establish a safe, stable and sustainable logistics management system.
Main equipment introduced in FY2021
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We are working to improve operational productivity by temporarily storing piece shipment items put in trays in rotary piece sorters and automatically discharging them in delivery destinations units. We have been promoting the installation since FY2018, and this is currently installed at five sites.
Medical DC (A)
Apparel DC (B)
Apparel DC (C)
Apparel DC (D)
Medical DC (E)
Interoperability with mobile pallet racks, vertical conveyors, and automated warehouses to automate pallet cargo handling (warehousing/shipping) and transportation, including at night. We have been promoting the installation since FY2018, and this is currently installed at four sites.
Medical DC (A)
Medical DC (E)
Daily Commodities DC (F)
Medical DC (G)
Promoting labor saving in simple work by replacing the manual picking and placing process with piece picking robots with specifications according to the product characteristics. We have been promoting the installation since FY2019, and this is currently introduced at three sites.
Apparel DC (C)
Medical DC (A)
Apparel DC (B)
Depalletizers and palletizers are used with products shipped by the case for loading and unloading between pallets and conveyor lines and for stacking products from conveyor lines onto cage carts, thereby reducing the amount of heavy-lifting work and achieving labor-saving operations. We have been promoting their introduction since FY2019, and they are currently introduced at seven sites.
Medical DC (E)
Distribution DC (H)
Distribution DC (I)
Distribution DC (J)
Medical DC (G)
Distribution DC (K)
Distribution DC (L)
In addition to pallet transport and the like, these are utilized for shelf transport type picking systems to promote labor-saving in transport and picking operations. We have been promoting the introduction since FY2014, and these are currently introduced at five sites.
Apparel DC (C)
Medical DC (M)
Shopping DC (N)
Daily Commodities DC (O)
Medical DC (G)
Recently, introducing RFID technology which is near field communication is expected to become a solution for product management in the retail industry, but its high cost is now preventing it from spreading. We have continued to study toward the introduction of the RFID technology to logistics site since FY2017, and in FY2020, we successfully achieved it by introducing the RFID technology to the logistics services for customers that provide the use/experience-type services including rental, subscription, and sharing.
Specifically, RFID technology is being used for rental items and the like to manage products at receipt/shipment and return. With a conventional barcode system, each item had to be read by a barcode reader, but with the introduction of RFID technology, it is now possible for an RFID reader to batch read multiple IC tags attached to individual items that contain the current status, thereby reducing the workload of workers. In addition, the implementation of RFID technology in product management has realized logistics services that support a new consumption cycle of using cyclical goods. In FY2021, we started providing services to those customers who intend to enter fashion subscription business. By developing logistics services that utilize RFID technology, we contribute to improving convenience of providers and users of rental/subscription services.
*RFID (Radio Frequency Identification): Contactless automatic recognition technology that reads information via radio waves
In light of the importance of business continuity in the manufacture and sale of products such as pharmaceuticals, we are actively promoting labor-saving efforts at medical DCs and the use of sharing by multiple customers as a measure to deal with logistics delays and stagnation due to pandemics and labor shortages and to deal with rising distribution costs.
At the East Japan II Medical DC (Kazo City, Saitama Prefecture), which opened in FY2020, the introduction of our independently developed RCS* has enabled complex control coordination of various automated equipment from different manufacturers. That has realized complete unmanned operation of a series of processes from receiving products in case loads, which account for a high percentage of shipments, to sorting and arranging them by direction for shipment. In addition, we are prioritizing the introduction of automated equipment with flexibility in order to realize a sharing-type operation format that can be used by multiple customers. We will contribute to business continuity by flexibly reducing the risk of rising logistics costs arising from factors such as future changes in customers' sales channels and increases or decreases in the volume of goods.
*RCS (Resource Control System): An integrated control system equipped with a work execution function that gives instructions to each equipment and worker based on the information on the operation status of the automated equipment and the work results of workers within the logistics center
"SSCV" is a transport digital platform that updates transport business through technology and open collaborative creation, and it consists of the following three solutions.
"SSCV" will solve a various problems with services from ideas originating at the worksite that only a logistics company can provide, connecting transport and society for a better future and contributing to the realization of a sustainable society.
"SSCV-Safety" is a solution with which we aim for "zero accidents," developed as a result of our long-standing commitment to accident prevention and safety as a logistics company. The health status measurement function for drivers and the dashboard function for managers work in tandem to detect in real time near-misses that could lead to accidents. By centrally managing and visualizing the data, not only can accidents be prevented, operation can be reviewed after driving. In FY2021, we enhanced the overall performance of the system by expanding many functions, including immediate alerts for drivers in operation and visualization of information on locations where accidents frequently occur. We will continue to enhance the functions and accuracy of the system into the future.
| Status | Functions | Features | |
|---|---|---|---|
| Before driving | Predict | ・ Comprehensive health condition assessment ・ Near-miss forecasting |
Driver "fatigue" and "stress" that can lead to distracted driving are visualized, accident risk is predicted in advance using a unique algorithm. |
| While driving | Watch over | ・ Dangerous driving alert ・ Emergency information notification ・ Vehicle location and fatigue level monitoring ・ Danger detection by IoT button |
Dangerous situations (driving, fatigue level) are detected and drivers are notified on the spot, and managers can monitor the situation to catch near-misses in real time, rather than after the fact. |
| After driving | Review | ・ Operation route ・ Dangerous driving videos ・ Driving evaluation comment input |
Risk of accidents, which was previously determined by experience and intuition, is predicted and environment where drivers can be trained and evaluated based on facts and data is provided, thereby supporting the creation of a system to prevent accidents before they occur. |
In FY2019, we began full-scale introduction of "SSCV-Safety" to domestic commercial trucks and personal vehicles, and by FY2021 the system has been installed on all of the company's approximately 2,200 vehicles. Since introducing the system, we have maintained zero vehicle accidents caused by distracted driving, thereby minimizing the occurrence of accidents. Starting in July 2021, we have been offering the service to other transport companies outside the Group, and we are working to further spread the use of "SSCV-Safety". "SSCV-Safety" has also been utilized in efforts to solve social issues, such as being adopted in a research project by the Ministry of Health, Labor and Welfare and in a demonstration experiment by the Ministry of Land, Infrastructure, Transport and Tourism.
The truck transport industry is made up mostly of small and medium-sized businesses, and many of them still conduct operations using telephone, fax machine, and paper documents.
"SSCV-Smart", developed by we, are a transport operations support solution for cargo owners and transporters that covers all the required functions from the perspective of logistics companies in order to improve operational efficiency, including order management, vehicle assignment management, driving management, accounting management, labor management, and procurement management.
"SSCV-Smart" is an online system that connects cargo owners and transporters via the Internet. It contributes to business efficiency and profit improvement, as the system allows for centralized management of all processes from acquiring transportation projects to vehicle assignment, issuing driving instructions, and billing.In FY2021, we introduced it to our Group transport centers and regional partner transport companies (60 companies).
Vehicle management is complicated and involves a wide range of tasks such as inspection, maintenance, and insurance renewal. In addition, compliance with laws and regulations is required, and inadequate management can lead to major risks. "SSCV-Vehicle" is a new solution for vehicle management that combines the unique perspective of a logistics company with technology.
"SSCV-Vehicle" centralizes and supports the individual management operations from vehicle procurement to purchase. Currently, we are developing preventive diagnosis functions, such as remote diagnosis and failure prediction alerts utilizing IoT technology and big data. By utilizing big data obtained from the services we provide, we will build a new business model to solve social issues.
We are working on establishing volume forecasting technology using AI and developing new solutions utilizing forecasting technology in order to become a global supply chain solutions provider and improve operational efficiency.
We aim to improve operational efficiency by optimizing inventories at logistics centers based on high-accuracy volume forecast using AI. In FY2021, we improved the precision of the volume forecasting tool which was designed and tested so far and successfully introduced it in 30 logistics sites. Currently, the number of cases using volume forecasting tool increased to a total of 50.
| No. of cases using volume forecasting system (as of March 31, 2022, cumulative) | 50 |
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We are working to contribute to the design and optimization of customers' supply chains by developing supply plans that take into account the acceptance capacity and operational efficiency of logistics resources (warehouses and trucks). In FY2021, we realized and started providing as a service an inventory optimization solution developed through joint research with customers in the previous fiscal year.
Maintaining appropriate inventories helps companies reduce wasteful storage costs, maintain product quality, and ensure a stable supply of products, but timely inventory resupply decisions are essential to achieving this goal. We aim to contribute to customers' logistics optimization by supporting the execution of inventory replenishment orders through inventory analysis and evaluation using a wide range of data generated in the logistics process along with forecasting technology. In FY2021, we studied approaches to inventory optimization starting from DCs, verified their effectiveness through simulations, and then started to verify the effectiveness at actual logistics sites.
We have been conducting research with the aim of contributing to the smoothness of our customers' supply chains, such as creation of a mechanism to speed up the transportation and delivery of products and the payment of compensation associated with them using blockchain*. In FY2021, we completed the verification of our hypothesis regarding centralization of information related to trade operations. Currently, we are working on the next phase of our research toward the development of this into a service.
* Blockchain: A ledger that is managed digitally. Also known as "distributed ledger technology."
We are fostering data scientists who use data to identify and solve issues of customers' supply chain. In FY2021, 19 people took the training course.
| Number of attendees of data scientist training course (as of March 31, 2022, cumulative) | 83 |
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