Japan Turns to Ultra-Efficient Cargo Transport to Keep on Truckin’
Domestic trucking companies are now cooperating to avoid wasting precious cargo space and to optimize loading rates by mixing and matching truckloads.
What’s new: Known as the “2024 Problem,” Japan’s logistics industry is on the brink of facing a crisis that will, most likely, diminish service levels to a noticeable extent for both corporate and consumer customers (see “The So-Called "2024 Problem" in Logistics Weighs Heavy on Japan, Inc.” for more details).
In response, shippers are beginning to cooperate with each other to optimize available capacity by mixing and matching truckloads.
“We transport various shapes and sizes of cargo like a puzzle, which transcends industries and business categories, such as food manufacturers and auto parts. At first glance, it may seem simple, but in fact it is very difficult. We have to consider various factors such as what combination of cargo to load, the balance of the weight on each axle, which types of goods should not be transported together with foul-smelling cargo, and when the cargo must be delivered.” - Yukio Umemura, President, NEXT Logistics Japan
This new method of hyper-consolidation was developed by NEXT Logistics Japan, a subsidiary of Hino Motors, and a domestic venture capital firm. At the core of the system is a quantum computer.
Why it matters: Of the 19 trillion yen (approximately US $134 billion) trucking business in Japan, "business-to-business logistics" accounts for most of it. Approximately 60% of the cargo space of trucks is, however, not filled with any cargo. The drivers are simply transporting air due to a lack of efficiency improvements, which is resulting in unaffordable waste.
What’s happening: To optimize every cubic meter of available volume, the system must combine all kinds of information, including the load on the axles, the balance of the cargo space, the shape and size of the cargo, as well as the timing and destination of the consolidation, to create a plan for a specific date and time.
NEXT Logistics Japan’s computer network is connected to a quantum computer operated by a Canadian company, which churns out the optimal solution from hundreds of thousands of choices in just 40 seconds.
If a human were to try to plan all of these details, it would take two to three hours and the result would, most likely, not be as efficient as the solution determined by the quantum computer.
In developing the system, the company's staff members were stationed at sales offices to listen to the opinions of shippers and drivers about how to load cargo. Thus, the system reflects real voices of the frontline.
By the numbers: At a typical warehouse, nine double-coupled trucks make daily round-trips between Tokyo and Hyogo Prefecture, a distance of more than 400 km (approximately 250 miles), carrying approximately 300 tons of cargo per day.
Since the system was introduced in the fall of 2022, the average loading rate of the trucks has exceeded 60%, and on the day of an interview with NHK, the loading rate was 71.5%.
By shifting to focus on optimizing mixed loads, carbon dioxide emissions from trucks have, moreover, been reduced by 26% thus far, which is an added benefit.
In addition, cameras installed in the cargo hold "visualize" the loading rate so that shippers can see the effect of the new packing methods calculated to maximize loading rates.
What to watch: Collaboration among logistics service providers is the key to success thus far. The number of companies participating in this high-tech consolidation program has gradually increased to more than forty firms, including beverage manufacturers, automobile manufacturers, companies handling daily necessities, paper manufacturers, and many others.
Cooperation between companies from different industries has great advantages.
“We have traditionally done joint deliveries with other companies in the same industry, but we inevitably end up with similar seasonal volumes. It is easier simply to implement mixed deliveries in the same direction with people in the same industry, but in order to solve social problems, we need to increase the loading rate of trucks both going to the destination and coming back. In that sense, I think it is better to work with people from different industries. The system that has been developed is groundbreaking because it incorporates the know-how of shippers and drivers, as well as the ‘artisanal’ elements of the frontline. We want to address this issue beyond the boundaries of our industry.” - Participating company Asahi Logistics Ichiro Shimazaki, Vice President
The goal is ultra high-efficiency. The more companies that participate in this high-tech consolidation system, the greater the variety of cargo, and the easier it will be to fill in the pieces of the puzzle, so to speak, in the truck's cargo space.
What’s next: NEXT Logistics Japan plans to further upgrade the system over the course of FY2025 so that it can respond to possible same-day cancellations and predict the cargo to be carried.
In addition, the company will work to create an environment in which drivers can concentrate on driving.
What’s more, a fully automated forklift truck under development will be introduced to reduce the time drivers spend waiting for their turn to load and unload cargo.
Link to Japanese Source: https://www3.nhk.or.jp/news/html/20230627/k10014110321000.html
#hightechconsolidation #NEXTLogisticsJapan #MaaS #ハイテク混載 #無人自動運転 #物流MaaS #完全自動運転のフォークリフト
I would be really happy to see this level of innovation in freight rail industry. Rail transport is much more easily automatable. I cannot wait to see one day fully automated freight trains running between major cities.
Very interesting and ingenious. However, Japan seems to have an excellent rail network. It would be preferable to see Japanese ingenuity devoted to getting more freight off Japan's over-crowded inter-city roads. I would also like to see Japan introduce laws like they have in some other countries which ban trucks from the outside overtaking lanes on expressways. Far too many Japanese truck drivers hog the outside lane.