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YAMASA CORPORATION

Logistics optimization solution accelerated with digitization

* This content was published in the April 2019 issue of “Wedge” and updated in September 2020.
* Company names and product names mentioned are registered trademarks or trademarks of each company.

YAMASA CORPORATION aims to go voucher-less with their own inventory management system. Japan Pallet Rental (JPR) is challenged to computerize logistics with pallets at their core. With standardization and sharing as the key, collaboration is promoted to create logistics platforms that connect across industries.

From left: Mr. Yoshihisa Amiya, Manager, Information System Control Section, Accounting & Administration Division YAMASA CORPORATION
Ms. Naomi Kano, President and CEO, Japan Pallet Rental Corporation

From logistics containers to products, centralized management is achieved through computerization

JPR

We heard that YAMASA CORPORATION had independently developed a traceability system capable of tracking manufacturing processes, shipping destinations, and raw materials. At the Narita factory, individual identification of the pallets on which shipped products are placed is also being made possible.

YAMASA CORPORATION

Yes, we are building an inventory management system that links each pallet to the information from the automated warehouse so that you can see which product in which lot is on which pallet. So if you ever have a problem with your shipment, we can track it by pallet than by lot.

JPR

When we heard this story, we thought that it was very compatible with our individual management system for distribution containers such as pallets and the electronic voucher service. Since our founding, we have been working with customers such as major food processing companies to work together to improve efficiency and save labor by jointly using standard pallets, but now the management of IT is a major issue.

YAMASA CORPORATION

Certainly, the amount of work required to enter and check vouchers associated with the arrival and departure of logistics containers is enormous. If this is alleviated by the power of digital technology, the benefits of labor saving and cost reduction are great. As a basis for such a solution, JPR is working on RFID (automatic identification technology) to electronically manage pallets, read pallet information using a smartphone, and digitize vouchers. Right?

JPR

Yes, we finished installing RF tags with almost all of our 7.4 million plastic rented pallets. The electronic voucher service using smartphones has also been in use since last spring. Customers have traditionally used a system called "epal" that centrally manages the operation of distribution containers in the cloud, but RFID and electronic slips make it possible to operate more seamlessly. However, this is a story about logistics containers, ideally it should be linked to the product information on it.

YAMASA CORPORATION

That's why you proposed the cooperation with our system. By simultaneously reading the identification information of the RF tag attached by JPR and the loading information provided by our company from each pallet and linking them, you can manage which pallet is loaded with what and where it goes to by "epal" without the need for paper vouchers. Now it is in the stage of experimentation.

Image of "overall optimization" being achieved by digitalization

New logistics solutions that connect product and transport information

JPR

Neither the individual management of distribution containers nor the digitization of vouchers can be put to practical use without the cooperation of manufacturers and wholesalers. In terms of pallet vouchers, we would like to get everyone's support and digitize 80% of pallet movement data by the end of 2019.

YAMASA CORPORATION

In addition to that, as the link between product information and pallet information progresses, it will be possible to send shipping information to the customer in advance. If we can notify the customer of details such as the content and quantity of the delivered goods, the number of pallets and voucher ID, the shipping company, and vehicle information, then the delivery destination can distribute the work accordingly, which will greatly save on labor.

JPR

It also helps reduce the inspection work on the receiving side, such as wholesalers. We think we can expect shorter truck waiting times and higher vehicle turnover rates.

YAMASA CORPORATION

Manufacture, delivery, and sales are all connected in a win-win relationship. Therefore, we want to digitize the shipping and delivery vouchers of the products themselves and connect them seamlessly. The logistics department still carries out a lot of paper voucher processing, and digitization is not progressing. It would be great if we could create a logistics platform that goes across the industry to solve this problem.

JPR

In Europe and the United States, the creation of common infrastructure that digitizes and connects all logistics information from upstream to downstream is in progress, but in Japan this is yet to come. First of all, we decided to start with the digitization of paper vouchers for the entire distribution industry, and we started a new company for that purpose in September last year. It is called "TSUNAGUTE", meaning "connecting hands" in Japanese.

YAMASA CORPORATION

Speaking of connection, the project name of the next-generation core system development that we are aiming to launch in 2020 is called "BRIDGE", indicating our awareness of the connections between companies and the world. In areas without competition there is the intention to try to achieve overall optimization with other companies by proactive standardization, and for us, logistics reform is part of that.

JPR

That's a wonderful idea. Based on the foundation of standardization and sharing of pallets that we have built up over half a century, we would like to take on the challenge of standardizing and sharing information linked to it.

*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.

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