KOMATSU LOGISTICS CORP.

Komatsu Group is a global manufacturer of construction and mining equipment. KOMATSU LOGISTICS CORP., which is in charge of logistics introduced the cloud-based individual management system "Logiarx" to manage its own logistics containers for supplying parts, with the aim of streamlining logistics. We interviewed Mr. Ishida, Mr. Takahashi, and Mr. Tsuchiya, who are mainly in charge of logistics for overseas bases, about "Logiarx," which increasing its presence throughout the Komatsu logistics company.

From left: 
Mr. Naoya Ishida, General Manager, Logistics Technology Department
Mr. Youji Takahashi, Senior Manager, Logistics Technology Department
Mr. Kouichi Tsuchiya, Planning Department,
KOMATSU LOGISTICS CORP.

KOMATSU LOGISTICS CORP. is a logistics center business that performs storage, packing, and shipping of supplies to overseas factories of Komatsu (Komatsu Ltd.), a business centering on heavy goods. In order to optimize the Komatsu Group's supply chain by providing high-value-added logistics services, each Komatsu plant also has a Komatsu logistics base, and is actively engaged in improving streamlining logistics, such as introducing new systems and changing equipment layouts. General Manager Mr. Ishida says, "We launched the Logistics Technology Department three years ago and are working on new technologies specialized in logistics. In cooperation with the production technology department of each factory, we have introduced autonomous UGVs (unmanned guided vehicles) and we are proceeding with a plan for automatic forklifts, and as a challenge for fiscal 2020 we are verifying the accuracy and effectiveness of deploying image recognition technology at each factory."

The Komatsu Group has 85 production bases around the world and is expanding its business globally. There are a wide variety of shapes and sizes of parts for construction machinery, with 200 types of returnable containers that carry them. In 2015, we introduced the cloud-based individual management system "Logiarx" for its management. "Our department is in charge of approximately 90,000 metal returnable containers. By visualizing the stock status, we have been able to move containers efficiently. The utilization of Logiarx is expanding through domestic bases," says Mr. Takahashi.

The management system used before 2014 was installed in the company's server, so it was necessary to rebuild it when the OS of the server was updated. "We examined several candidates, but the systems of other companies were all server-installed, and the cloud-based Logiarx was very attractive. The initial investment was cheap, and proper security support was also a deciding factor. In the old system, RFID (automatic identification technology) was used for individual management, but to manage all containers, a cost effective QR code was used.
Mr. Tsuchiya added, "In general we use QR codes, but we are using RFID at overseas bases such as India. It is useful because local employees can easily read data, but RFID is still expensive, so we are examining the cost effectiveness," says Mr. Takahashi.

KOMATSU LOGISTICS CORP. uses the data of Logiarx to improve the efficiency of container operations. "We make predictions of container demand from overseas orders and order plans. If there is a short-circuit forecast, we will call overseas bases with excess capacity to return empty containers," says Mr. Takahashi. It is said that efficient operation is not possible without a forecast up to half a year ahead when interacting with overseas bases. With the forecast, it is possible to properly operate the containers, and the purchase of one-way logistics containers such as wooden boxes and steel containers will be reduced, contributing to cost reduction.
KOMATSU LOGISTICS CORP. evaluates the performance of each site by setting a KPI for how efficiently the logistics containers are used. Here too, the data of Logiarx is used for KPI target calculation and performance calculation.

The business itself is changing with the introduction of Logiarx. This is because the persuasive power has appeared with the reminder e-mail for overseas bases. Mr. Tsuchiya said, "By using the data of Logiarx, the necessary data can be aggregated and analyzed in a short time. By attaching the data and graphs when sending reminder emails, it makes the request much more persuasive. We listen to the voice of our employees."
"The introduction of the system is a good opportunity to make people aware of the workflow and improve it. Logiarx is a management tool, but it has led to a change in mindset. It's more than just a tool," says Mr. Ishida. Recently, the use of Logiarx is expanding, such as for managing the containers used for transportation between domestic factories.

The Logiarx data is also used to create an invoice when returning a returnable container from overseas. Having 200 types of containers, some have similar product numbers, and this led to easy mistakes. Therefore, we wondered if it is possible to utilize the data of Logiarx for notation of container names and declared prices so that invoices can be issued accurately at overseas bases. "By having JPR develop the app, we were able to create an accurate invoice and reduce man-hours," says Mr. Takahashi with a smile.

Logiarx is being introduced at 18 bases in North America, Brazil, China and other Asian countries, Europe, India and Australia where parts are shipped regularly. We will create an easy working environment for local employees such as using a handy terminal in Japan and using an iPhone or iPad overseas. "We are planning to expand usage at overseas bases. JPR's support is indispensable for smooth operation of Logiarx in various parts of the world. We have been always treated well with generous support, and will continue to depend on JPR," says Mr. Ishida. In the future, he wants to continue expanding overseas and strengthen logistics reforms.

*RFID (Radio Frequency IDentification) is an epoch-making information technology that uses the Internet to enable people and things to be identified and managed with a small wireless chip. IC cards such as Suica and Edy (contactless payment cards) are examples of high-profile RFID applications.