Innovative Transportation Management System Implementation by Suzuo Shinwart

Suzuo Shinwart's Groundbreaking Transportation Management System Implementation

Suzuo Shinwart Corporation, led by President and Executive Officer Yasuyuki Tokuda, is currently engaged in an innovative project aimed at enhancing the transportation management system of Suzuo Shinwa Logistics Corporation, overseen by President Motohisa Oishi. This initiative, based in the heart of Tokyo, is being documented in real-time as a part of their ongoing consulting services.

Progress Reporting and Challenges Faced

With the recent rounds of updates, this article focuses on the practical outcomes and efforts taken towards efficient implementation of the transportation management system. Previously, we discussed the application for a subsidy aimed at increasing transportation efficiency using AI and IoT technologies. Now we will delve into the effects of the system's implementation and the measurement of its success.

A significant goal was set to achieve a 5% reduction in fuel consumption based on ton-kilometers (the product of cargo weight and distance transported). By June 2024, they submitted an application for a subsidy and reported achieving an average reduction of 5.3%. The main challenge involved repeatedly revising the dispatch plans to ensure a minimum improvement of 5%. Initially, the concept of transportation ton-kilometers was not well understood by the logistics staff, leading to a focus primarily on immediate fuel efficiency improvements

Strategies implemented included advising drivers on idling stops and earlier shift-ups, as well as selecting routes that seemed to minimize fuel consumption. Unfortunately, this approach did not yield the expected results. Over time, the team learned that focusing on ton-kilometers showed significant improvements proportional to the longer distances and larger payloads.

Through strategic management, they began to deploy vehicles to long-distance, high-volume deliveries. Utilizing a real-time tracking system prevented traffic congestion and allowed them to collaborate with stakeholders to optimize transportation, thereby reducing empty runs and enhancing efficiency per route. As a result, the team successfully met their initial targets.

Enhancements Gained from System Replacement

The visibility brought by the new attendance management system exceeded expectations. In the past, drivers were informed to avoid continuous driving for over four hours; however, unexpected traffic congestions on highways sometimes forced them to drive longer. Now, with the implementation of big data analysis and traffic predictions, dispatch plans can be developed proactively, adjusting to real-time conditions. In instances where planned routes become unviable due to unexpected incidents, real-time messages are sent to nearby vehicles, suggesting optimal detours, thus preventing prolonged driving hours and increasing overall transportation efficiency.

Even in severe weather conditions such as heavy snow, real-time monitoring enabled managers to make informed decisions like allowing drivers to rest for nine hours at a service area instead of risking unsafe travel back.

Current Achievement Status and Future Initiatives

The successful implementation of a central system featuring IoT devices for real-time tracking represents a significant accomplishment. In case of incidents or adverse weather, this system ensures driver safety, aligning with the company’s mission for secure transportation. From an operational efficiency standpoint, dynamic management has certainly enhanced transportation performance.

The supporting dispatch plan feature now allows the estimation of operational costs per journey, enhancing visibility on vehicle profitability and helping to balance operational costs and driver work hours effectively. The consulting process through Suzuo Shinwart has indeed offered valuable insights; however, there remains a continuous need for education and refinement in using the selected systems.

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Company Overview of Suzuo Shinwa Logistics Corporation

- Name: Suzuo Shinwa Logistics Corporation
- Location: 3-26-1 Kaigan, Minato-ku, Tokyo, 5th Floor, Bark Shibaura
- Established: November 1, 2011
- Capital: 50 million yen
- Business: Cargo Utilization Transport Business, Port Transport Business, Warehouse Business
- Employees: 66 (As of July 1, 2024)

About Suzuo Shinwart

As the only publicly traded entity in the Suzuo group, Suzuo Shinwart specializes in the development of large-scale information systems, logistics IT consulting services, human resources, salary and accounting solutions, outsourcing, and cloud services. To learn more, visit their official website here.