ICT and DX Promotion

Basic Philosophy

The ICT Promotion Division was established in April 2018 with the aim of building a DX-ICT platform to achieve business process reform and business transformation, and has focused its efforts on ICT infrastructure restructuring and productivity reform. Our fundamental mission is to generate new sales and profits in the KONOIKE Group businesses based on this infrastructure by utilizing ICT and digital technologies to promote business transformation (transformation of existing business models), acquire new customers, and deepen business with existing customers. Specifically, on the business side, we are working to transform our global forwarding business into an e-commerce business model and to evolve our logistics business to become an integrated logistics partner with an optimal supply chain. In addition, our Group employees and stakeholders are making extensive use of digital technology to build business processes that enable us to focus on operations with high quality and productivity. While our 2030 Vision focuses on these technologies and maintains high aspirations, the ICT Promotion Division works with the field, the people carrying us to these heights, in order to maintain a firm grasp on issues and potential needs there. It also works to fully understand ICT and DX in each headquarters, with actions in the field and headquarters as the two pillars driving our transformation.

FY3/2020 to FY3/2023 Results

[FY3/2019]Laying the Groundwork for IT Transformation [Results]Launch of KITS, Launch of new integrated logistics concept formulation, Selection of cloud infrastructure, Survey of infrastructure environment, Survey of security status, Selection of standard computers [FY3/2020]Launch of ICT Infrastructure Restructuring [Results]Formulation of the enterprise resource planning (ERP) concept, Start of business reform through robotic process automation (RPA), Start of enacting of information security management regulations, Introduction of work-style reform tools, Deployment of security enhancement measures, Development of new integrated logistics infrastructure [From FY3/2021 to FY3/2022]ICT Infrastructure Renewal and Productivity Reform [Results]Development of data integration infrastructure, Development of business and development infrastructure, Streamlining and combating deprecation of accounting areas, Start of PC life cycle management (PCLCM) operations, Enactment of information security management regulations, Strengthening of overseas IT security, Start of new integrated logistics implementation rollout

Transformation Initiatives Harnessing ICT and DX

Rapid technological innovation has already brought about a variety of changes in the logistics industry, including transformation of legacy supply chains driven by the entry of players in different industries. We recognize that ICT and DX initiatives will be extremely important amid a growingly-challenging competitive environment due to the decline in the working-age population and other changes in the socioeconomic environment. At the same time, we will promote actual initiatives based on both offensive and defensive measures in accordance with our medium- to long-term overall concept in the ICT and DX area (top of P.42). In particular, in our current medium-term plan, our offensive DX strategy includes priority initiatives to: (1) complete a standard model for the new Integrated Logistics System and expand this to the food business, machinery-related business, and general logistics, aiming to evolve our logistics services, and (2) build and deploy a global and digital forwarding system to support B2B transformation in the forwarding business, aiming to expand into the midsize market. Our defensive strategy includes priority initiatives to: (1) streamline operations through digitalization of business processes and data integration to improve productivity of group-wide operations; (2) build zero trust-based information security, and; (3) build a BCP-based information system cloud infrastructure and establishing a safe, secure, and optimal information system operation structure.

Overall Concept for ICT and DX Promotion

Overall Concept for ICT and DX Promotion

Technology Capital KPIs

Technology Innovation Using Digital Technologies a Number of new integrated warehouse management system (WMS) installations
b Number of business site operations productivity improvements (e.g., Salesforce utilization)
c Berth reservation management systems

a. Completion of a Standard Model for the New Integrated Logistics System

Our standard model for the new integrated logistics system implements the standard use of handheld terminals that enable users to trace data on products and human unit operations in the warehouse and allows us to visualize work progress. In the past, we analyzed work using daily work reports and offline tabulation. However, obtaining data from these terminals allows us to visualize analysis, reduce work time, and improve efficiency.

b. Productivity Improvements of Business Site Operations

The use of AI-OCR and RPA improves our productivity through the digitalization of time and attendance management operations. Previously, we manually checked daily work reports against attendance records and entered attendance data. However, we work to reduce work hours through the use of AI-OCR to digitize daily work reports and RPA to automate checks and data entry work.
[The Trinity of Safety, Quality, and Business Performance]Quality Supports Trust, The Front Lines Support Quality, And Safety Supports the Front Lines

Check the KONOIKE Group Integrated Report 2023 here.

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