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Enhancing Logistics Management: Introducing the CLO Function Map by Funai Soken Logistics

Funai Soken Logistics Unveils CLO Function Map

Funai Soken Logistics Co., one of Japan's leading logistics consulting firms, headquartered in Chuo City, Tokyo, has recently announced the launch of the CLO (Chief Logistics Officer) Function Map. This initiative comes in response to upcoming regulatory changes mandating the appointment of CLOs for specific shippers by April 2026. Alongside this, the company has also established a dedicated support team to strengthen their consulting services for CLO implementation.

Background of the CLO Function Map

The revised Logistics Comprehensive Efficiency Act, effective May 2024, requires certain shippers handling over 90,000 tons annually to appoint an executive-level CLO. These organizations must submit mid-to-long-term plans and regular reports as part of their compliance.

Historically, the logistics sector has been driven by cost-efficiency. However, with declining demographics and a shortage of drivers, a shift towards prioritizing sustainability is becoming essential. Many companies face challenges regarding the specific responsibilities of a CLO, highlighting discrepancies between executive management’s expectations and on-ground realities. In light of this, Funai Soken has developed the CLO Function Map to clarify the roles a CLO must fulfill.

Overview of the CLO Function Map

According to Funai Soken, a CLO should not merely be a manager but a leader who oversees the entire supply chain and drives managerial transformation. The CLO Function Map outlines seven crucial roles:
1. Collaboration with Management and Relevant Departments: Effectively determining supply chain-related decisions in coordination with management and departments.
2. Regulatory Compliance: Ensuring timely implementation of tasks required by entities such as the Ministry of Land, Infrastructure, Transport and Tourism.
3. Understanding Cost Structures: Conducting a detailed analysis of supply chain costs to identify bottlenecks.
4. Logistics Strategy Formulation: Developing strategies that optimize the balance between cost and service.
5. Supplier Evaluation: Accurately assessing and reviewing suppliers to successfully implement the formulated strategies.
6. Production and Sales Inventory Management: Optimizing production and procurement plans based on sales performance, including the introduction of Supply Chain Management (SCM) systems.
7. Environmental Initiatives Planning: Developing and managing plans to reduce environmental impact across procurement, production, and sales logistics.