Feature article 2018

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Feature 2 Connecting the Future with Logistics

Rethinking Working Styles and Promoting Business and Management Reforms Aimed at Sustainable Growth

The goal of our new medium-term management plan called KAIKAKU 2019 for NEXT100 is to reinforce the Yamato Group's management base in order to achieve sustainable growth over the next 100 years. At the same time, we established a new long-term vision for 2025 as well.

We will now build a sustainable business model aimed at addressing social issues in order to achieve continuous growth despite major changes taking place in the business climate.

Click here to find out more about our new medium-term management plan called KAIKAKU 2019 for NEXT100

http://yamato-hd.co.jp/english/investors/financials/briefing/pdf/E_3q_kaikaku_29_03.pdf

Figure: Vision for 2025

Figure: edium-Term Management Plan "KAIKAKU2019for NEXT100"

Topics 1 / The first in Japan to Introduce a 25-meter Double-trailer Truck

Addressing Labor Shortages and the Need to Reduce CO2 Emissions through More Efficient Trunk Route Transport

Changes in Japan's demographics have resulted in labor shortages in a number of industries. In the logistics industry, due to aging there is now a shortage of large truck drivers mainly on trunk routes. In addition, with the adoption of the Paris Agreement in 2015, there is growing worldwide momentum to reduce CO2 emissions.

Based on these social issues, we decided to become the first in Japan to introduce a 25-meter double-trailer truck in September 2017 for more efficient trunk routes. In 2016, we began using 21-meter double-trailers and 18-meter single-trailers in an effort to make trunk route transportation even more efficient. The new 25-meter double-trailers introduced in 2017 can carry twice the cargo amount of conventional large trucks. By being able to carry more on a single truck, we will be able to address driver shortages and reduce CO2 emissions.

Photo: 25-meter double-trailer trucks

Nicknamed "Connect"
This nickname symbolizes the connection between the truck and trailer along with connecting people, goods and cities together to connect the entire logistics industry through cooperative transport with other companies.

Capable of Transporting Cargos of Multiple Transport Companies at the Same Time

Our 25-meter double-trailer trucks can be connected to the trailers of other transport companies for seamless transport. Driver aging and shortages are major issues faced not only by the Yamato Group, but the entire logistics industry. The introduction of these double-trailers will contribute to the sustainability of the entire logistics industry, transcending barriers between transport companies.

Topics 2 / The Yamato Group Research Institute Develops a New Workflow to Reduce Wait Times during Truck Deliveries

Achieving Smooth Deliveries by Linking the Use of RFID* with Our Vehicle Booking System

Today, the long wait time truck drivers face at the time of delivery has become a social issue. This is because deliveries are made in order of arrival at the facility, and the receiving inspections are performed manually with visual confirmation or paper records.

Aimed at resolving these issues, Yamato Group Research Institute developed a workflow solution for achieving smoother, more efficient deliveries through a partnership with industry groups such as logistics association, toiletries makers, and Yamato Logistics.

The key point for achieving efficient deliveries is visualizing information (ASN data) about which product is located on which pallet in which truck and then sharing this data with shippers, drivers and receivers. This makes it possible to coordinate receiving schedules by assigning priority at the delivery location.

We introduced RFID* tags and a vehicle booking system in order to achieve these more efficient deliveries. RFID tags are affixed to pallets, products and trucks to create ASN data that connects all of them together. By sending this data to receivers in advance, they can determine the priority of trucks waiting in line and complete inspections smoothly by simply scanning the RFID tags.

RFID: A technology for contactless reading of data from an IC chip using electromagnetic fields.

Figure: General Delivery Workflow

This new workflow will enhance productivity of receiving work and receiving inspection operations, while also improve the work environment. In addition, the use of RFID tags will help ease workload during shipping inspections and reduce mistakes caused by human error. Moreover, reduced idling time will lower CO2 emissions and ensure a safe and secure living environment for local residents.

The effects of this new workflow were validated in real life testing with Lion Corporation in 2017. We are now conducting further reviews aimed at full commercialization in the near future.

CSR

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