#Japan #Tokyo #Goals #Royal Group #Sojitz Foods

Introduction

In an innovative move to enhance the efficiency of food supply chains and mitigate waste, Royal Holdings Co., Ltd., based in Fukuoka, has joined forces with Goals, Sojitz Foods, and Delica Foods. This collaborative initiative, termed the 'Supply and Demand Adjustment Platform Construction Project,' is set to optimize inventory and significantly reduce food waste across the Royal Group's restaurant operations, including its well-known chains, Royal Host and Tendon Tenya.

Project Overview

The project will leverage artificial intelligence (AI) to apply demand forecasting data collected from Royal Group's restaurants to real-world logistics applications. This ambitious undertaking aims to refine inventory management within the overall food supply chain while tackling the pressing issue of food waste. With a mission to eliminate waste in the food industry, Goals will drive efforts using AI to facilitate digital transformation (DX), while Sojitz Foods enhances logistical efficiency through comprehensive demand chain management. Meanwhile, Delica Foods will apply its expertise in sourcing, processing, and supplying fresh produce to support effective demand and quality management in real-time operational environments.

The Role of AI in Reducing Food Loss

Goals, known for its cloud service 'HANZO Auto Order,' is applying insights gleaned from food demand data to research and develop inventory optimization strategies. The overarching goal is to address the challenges of food waste across the food industry. Starting in February 2025, the AI-driven demand forecasting service 'HANZO Auto Order' will be implemented in select locations of Royal Host and Tendon Tenya, allowing the AI to predict required ingredient quantities based on trends, customer volume forecasts, and even weather predictions. This technology will automate ordering processes, thereby optimizing inventory management and preventing overstocking or stockouts.

Logistics and Distribution Enhancements

Royal Group effectively manages its food inventory through multiple logistics centers distributed across the country. To validate the success of 'HANZO Auto Order,' the project will scrutinize how well AI demand forecasting data aligns with actual ordering trends to improve accuracy in inbound and outbound logistics planning at the centers. Additionally, this data will support Delica Foods' procurement and production planning in the fresh produce segment, aiming to fine-tune demand-supply regulation and enhance the freshness of products.

As part of the initiative, a phased implementation will start in August 2025, targeting specific products from Tendon Tenya. The project aims to evaluate the feasibility of effective inventory management, minimizing storage space while ensuring that there are no deficits in stock. As the project develops, there will be considerations for expanding the scope to include various business types and product categories systematically.

Comprehensive Supply Chain Automation

Ultimately, this project represents a comprehensive approach to automating the entire supply chain. From automated ordering in stores to inventory management at logistics centers and the procurement processes by purchasing departments, the objective is to attain a data-driven approach to supply-demand coordination. By centralizing demand forecasts from the retail level, the project hopes to enhance the interconnectivity of the entire supply chain, leading to reduced food waste and operational inefficiencies.

About the Companies

• - Royal Holdings Co., Ltd.

- Location: 28-5 Naka 3-chome, Hakata-ku, Fukuoka City, Japan
- CEO: Masataka Abe
- Established: April 4, 1950
- Overview: Holding company managing group operations.

• - Goals, Inc.

- Location: 5-3-2 Shiba, Minato-ku, Tokyo, Japan
- CEO: Suketaka Sasaki
- Established: July 9, 2018
- Overview: Developing and providing business support cloud services for the food service industry.

• - Sojitz Foods Corporation

- Location: 3-1-1 Roppongi, Minato-ku, Tokyo, Japan
- CEO: Yutaka Koizumi
- Established: January 25, 1983
- Overview: Importing and exporting agricultural and food products.

• - Delica Foods, Inc.

- Location: 4-12-12 Rokucho, Adachi-ku, Tokyo, Japan
- CEO: Kenji Kobayashi
- Established: October 6, 1979
- Overview: Specializing in the processing and distribution of fresh produce.