#Japan #Tokyo #AI Optimization #Hitachi #Nichirei Ice

Hitachi's AI System Optimizes Supply Chain for Nichirei Ice

In an exciting development for the food logistics industry, Hitachi Ltd. has introduced an advanced AI-powered optimization system for Nichirei Ice, a company under the Nichirei Foods Group. This innovative system significantly streamlines the production, transportation, and inventory planning processes for Nichirei Ice's packaged ice products, cutting down planning times by an impressive 70%.

The new system—leveraging Hitachi's Lumada solutions and mathematical optimization technology—creates precise plans that adhere to over 40 different constraints and optimize around 10 conflicting KPIs (Key Performance Indicators). This capacity for high accuracy is crucial for Nichirei Ice, whose operations are tightly linked to seasonal demand fluctuations.

What sets this system apart is its ability to produce a detailed and comprehensive supply chain plan, all while allowing for flexibility when responding to rapid shifts in demand. As input data can be easily modified, the system allows for quick adjustments to plans without significant delays or reformatting.

System Overview

The newly implemented AI system focuses on three core areas: production, transportation, and inventory. Each component works in harmony to ensure optimal decision-making. In production planning, the system considers existing inventory levels and sales forecasts to determine not just how much to produce, but also when to do it effectively while adhering to set inventory policies.

For transportation, the algorithm determines the best timing and locations for product distribution, prioritizing both efficiency and cost-effectiveness. The system maximizes cargo loading efficiency while minimizing the number of trucks needed for transportation, directly impacting logistics costs.

On the inventory side, the system establishes optimal stock placements across various locations based on specific inventory requirements and sales forecasts. In doing so, it alerts teams to potential issues like stock shortages, ensuring that operations can swiftly adapt to unforeseen circumstances.

Future Plans and Expansion

Hitachi plans to broaden the application's scope of the AI system within Nichirei Foods and Nichirei Ice. This expansion will encompass enhanced planning capabilities for longer-term strategies and the incorporation of functionalities for modifying plans during emergencies.

Furthermore, Hitachi envisions extending this automatized service across the manufacturing sector, collaborating closely with additional solutions related to distribution planning and production management. By evolving Lumada 3.0, Hitachi aims to transform data into valuable insights that will help tackle various societal challenges, including labor shortages, by fostering a sustainable and efficient supply chain.

Introducing Innovative Digital Services

Hitachi's Connected Industries (CI) sector is placing a strong emphasis on developing digital services that combine AI with domain knowledge, showcased by their newly launched 'HMAX for Industries.' This initiative aims to support frontline workers by providing innovative tools and systems that enhance operational efficiency.

Utilizing the 'ComiComiCloud'—Hitachi's cloud service that blends the benefits of both on-premise and public cloud offerings—the company ensures that infrastructure is optimized for the needs of industries such as manufacturing and logistics. This robust framework supports the full spectrum of applications and IT infrastructure required, enabling seamless operations from implementation to daily functioning.

Closing Thoughts

Hitachi continues to innovate within the logistics and supply chain sector, as evidenced by the launch of this AI-driven solution for Nichirei Ice. By effectively addressing the operational challenges faced by the food logistics industry, Hitachi is placing itself at the forefront of supply chain technology. The official unveiling of the system—and discussions around related solutions—are set to be held at the Hitachi Logistics & Supply Chain Day on October 28, 2025, in Ueno East Tower, where industry leaders will gather to explore the future of supply chain optimization.

About Hitachi
Hitachi Ltd. contributes to a harmonious society where environment, happiness, and economic growth coexist through its social innovation business. The company aims to generate data-driven value to solve customer and social issues worldwide. As of March 2024, Hitachi aims for a consolidated revenue of 9.7 trillion yen, employing about 280,000 people globally. For more insights on Hitachi's advancements, visit Hitachi's official website.