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Nikken Rental's Commitment to Logistics Improvement

On August 5, 2025, Nikken Rental Co., Ltd., headquartered in Minato, Tokyo, announced an ambitious action plan to enhance logistics efficiency and overall productivity. This initiative is tailored for primary and secondary shippers along with logistical operators, emphasizing collaboration and partnership towards improved logistics practices.

The newly established independent action plan is designed to facilitate structured improvements in logistics operations, focusing on creating a sustainable logistics framework that all stakeholders can rely on. Here are key points highlighted in their strategic plan:

1. Common Initiatives for Primary and Secondary Shippers

A. Efficiency and Rationalization of Logistics Operations

Nikken Rental aims to streamline logistics processes through several key actions, including:
1. Tracking Wait and Loading Times: Establishing clear metrics around loading and waiting times at various operational hubs like sales offices and factories.
2. Two-Hour Rule for Wait and Loading Times: They will ensure logistics operators aren’t burdened with longer waiting times exceeding two hours, advocating for processes that uphold this standard.
3. Designation of a Logistics Supervisor: Appointing a project lead to oversee logistics efficiency initiatives and facilitate necessary negotiations for improvements.
4. Proactive Collaboration for Logistics Improvement: Actively reviewing contracts to identify any excessive burdens causing delays and addressing them collaboratively with partners.
5. Utilization of Pallets and Containers: Adopting various logistics tools to minimize loading times while ensuring proper usage and return of rental equipment.
6. Placement of Appropriate Equipment: Ensuring adequate equipment like cranes and forklifts are available to diminish wait times for trucks.
7. Implementation of Efficient Inspection Methods: Accelerating inspection processes using technology, such as electronic invoices and RFID, to minimize waiting times.
8. Standardization of Logistics Data and Equipment: Promoting uniformity in logistics specifications including pallet sizes, thus enhancing operational efficiency.
9. Shortening Transportation Distances: Actively pursuing modal shifts for long-distance transport to alleviate pressure on truck drivers by reducing their working hours.
10. Joint Shipping Initiatives: Encouraging initiatives that enhance loading efficiency through collaboration among shippers during low cargo volume times.

B. Proper Management of Shipping Contracts

The plan emphasizes the importance of clear written agreements on the shipping contracts:
1. Ensuring that contracts are documented electronically or in writing.
2. Transparency concerning who pays for loading services to improve clarity among involved parties.
3. Separating shipping fees from other charges for improved cost management.
4. Dialogue on the introduction of fuel surcharges to address cost increases directly affects logistics providers.
5. Avoiding multi-layered subcontracting to ensure clarity and appropriateness of service charges.
6. Engaging logistic partners in discussions about fees and terms.
7. Utilization of highways to reduce driver working hours and ensuring costs for highway fees are separately reimbursed.
8. Selecting logistic partners that comply with regulatory frameworks and promote transportation safety.

C. Safety Measures in Transportation and Loading Operations

1. Cancellation or interruption of operations during extreme weather events to safeguard driver safety.
2. Collaborating with logistic partners to address safety issues at delivery locations.
3. Continually updating logistics partners on delivery access issues and restrictions.
4. Ensuring safe loading procedures are in place to minimize the risk of accidents during handling.

2. Initiatives for Primary Shippers

A. Optimizing Shipping Operations

1. Planning shipments according to logistics flow to shorten loading times.
2. Setting realistic shipping schedules that consider driver rest periods to promote road safety.
3. Providing advance shipment information to logistics partners ensuring they are adequately prepared.
4. Improving facilities to assist in minimizing waiting times during loading.
5. Timing shipments to avoid peak traffic hours to streamline delivery.

3. Initiatives for Secondary Shippers

A. Enhancing Preparedness for Deliveries

1. Ensuring adequate lead time in deliveries to allow primary shippers sufficient preparation time.
2. Making necessary adjustments to facilities to minimize wait times at delivery points.
3. Avoiding peak congestion times for pickup and delivery to ensure fluid operations.

4. Adaptations for Construction Machinery Rental Sector

Finally, when working with partner businesses acting as shippers, Nikken Rental will apply these standards consistently to ensure seamless integration into the logistics network.

By focusing on these collaborative initiatives, Nikken Rental Co., Ltd. is paving the way towards a more efficient and productive logistics ecosystem, reflecting a proactive stance on sustainable practices in the transportation sector.