#Japan #Tokyo #Franchise Advantage #Super SANSHi #AI Delivery

Franchise Advantage Partners with Super SANSHi for AI-Driven Delivery Efficiency

In a significant step towards enhancing the efficiency of delivery operations within the service industry, Franchise Advantage, headquartered in Minato-ku, Tokyo, has initiated an extensive study using artificial intelligence (AI). This research specifically targets the delivery operations of the online grocery sector, partnering with Super SANSHi Co., Ltd., based in Suzuka City, Mie Prefecture. The practical experiment will take place from June 2024 to March 2025, utilizing realistic data from Super SANSHi’s online supermarket.

Background of the Project

The proliferation of the internet and the diversification of lifestyle values have increased the demand for online grocery shopping. However, the operational challenges in deciding what items individuals need and when they require delivery often rely heavily on the experience and skills of veteran staff. This dependency can compound issues like labor shortages, which necessitates a shift toward more efficient and standardized delivery and dispatch systems that accommodate a diverse workforce.

With over 40 years of experience in online grocery delivery, Super SANSHi has been committed to providing high-quality services entrenched in local communities, while also operating approximately 25 franchises nationwide. Given Franchise Advantage's rich consulting expertise within the retail sector, Super SANSHi has engaged in collaborative research to identify methods for enhancing delivery operations in online supermarkets.

Details of the Experiment

The experiment consists of creating delivery optimization systems that allow staff, even those without extensive experience, to execute tasks at levels comparable to those of seasoned professionals. The research is structured into two main phases:

Phase 1: Development and Validation of Driver Management and Support Apps (June 2024 - October 2024)

In this phase, two applications specifically targeting delivery drivers were developed and validated. These tools aimed to assist in better managing driver routes and operations.

Phase 2: Development and Validation of AI Dispatch Optimization and Skills Management Apps (November 2024 - March 2025)

This phase focused on creating tools for dispatch managers, enhancing their skills through validated applications that could optimize routing and delivery processes.

Results Achieved

In combining the results from both phases, we noticed substantial improvements at Super SANSHi’s Kawai store. Notably, it resulted in:

• - A daily reduction in total delivery distance by 17% (from 751 km to 626 km).
• - A decrease of 7% in the total driving time per day (from 2809 minutes to 2621 minutes).

Moreover, through this systemization based on veteran insights, significant strides toward standardizing operations were achieved.

This project was conducted with valuable collaboration from DENSO Corporation and DENSO WAVE, further enhancing its efficacy.

Future Initiatives

In light of these positive results, Franchise Advantage plans to promote further collaboration with service industries and IT companies. By utilizing AI and digital transformation, they aim to harness the valuable knowledge of seasoned professionals to continue standardizing and streamlining delivery operations. Their overarching goal is to improve operational processes in online supermarkets, lessening the burden on workers, and ultimately enhancing customer service by taking advantage of the extra time created through increased efficiency.