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We have enhanced medical DCs across the country and provide storage services specialized in pharmaceutical logistics.
We contribute to maintaining high quality medical supplies by enhancing a quality assurance system through establishment of a dedicated organization to improve the intangible side of GDP* and working on proper management of complicating distribution channels.
We also have a fuel procurement scheme and dedicated drivers familiar with characteristics, etc. of medicines as part of the BCP system to sustain supply chain in case of an emergency.
Area of medical DCs: About 250,000 square meters (As of March 31, 2020)
Of these, standard equipment for distribution centers that conform to GDP
*GDP (Good Distribution Practice): "Appropriate distribution standard for medical supply" to ensure strict quality control to prevent quality deterioration during transportation and storage.
In August 2018, HTS opened a logistics center for EC of health foods and cosmetics in Musashimurayama City, Tokyo. While we used to have only one logistics center in western Japan, we newly opened a site in eastern Japan for BtoC business to realize the logistics reform of our customers. In specific, With products stored in Kanto, we were able to shorten delivery lead-time for customers located in Chubu region and to the north, and contribute to reduction of shipping costs.
Going forward, we will continue to work on establishing a two-base system for BtoB business and improving the efficiency of production logistics from manufacturing plants in order to optimize the entire supply chain of our customers.
In September 2018, the steam turbine equipment in AES Andres Power Plant located near Las Americas International Airport, Santo Domingo, the Dominican Republic was damaged by a lightning strike, and steam turbine equipment from Mitsubishi Hitachi Power Systems, Ltd. (Currently Mitsubishi Power, Ltd.) was to be supplied, and HTS made transportation arrangements.
As the earliest possible recovery is expected to secure electricity for the country, from June to August 2019, all equipment including products with a maximum weight of 63.5 tons were shipped from Narita Airport and Nagoya Centrair Airport to Santo Domingo Las Americas International Airport in the Dominican Republic, aiming to shorten the delivery time by chartering five transport freighters.
We were often held back by the strict restrictions peculiar to air transportation, such as the effects of atmospheric pressure and loading restrictions, but we made progress on problems one-by-one by trial and error to pursue safe and reliable transportation by seriously addressing each problem with our customers. In addition, by making full use of the Group's global network in Japan and overseas, we managed centrally the work and progress from factory shipment in Japan to arrival at the site, and safely completed the journey of about 13,000 kilometers from Japan to the Dominican Republic without delivery delays.
As one of the few solution providers that can provide one-stop services under its own management, HTS Group will continue to provide flexible and one-and-only services that always meet the needs of customers, and meanwhile support the development of people's lives and society through contribution to the maintenance of local social infrastructure.
* AES Andres power plant: A power plant using a gas turbine combined cycle (GTCC) power generation facility owned by AES Dominicana, a power generation company in the Dominican Republic.
The HTS Group is promoting the implementation of new technologies and labor saving technologies at logistics sites in order to respond to social issues such as labor shortages, and is promoting automation and labor saving in site operations. By introducing new technologies and labor-saving technologies to logistics sites, we will reduce the burden on workers and establish a safe, stable and sustainable logistics management system.
|Main equipment introduced in FY2019
We are working to improve operational productivity by temporarily storing piece shipment items put in trays in rotary piece sorters and automatically discharging them in delivery destinations units. Currently, this is installed at three sites.
Medical DC (A)
Medical DC (B)
Medical DC (C)
Interoperability with mobile pallet racks, vertical conveyors, and automated warehouses to automate pallet cargo handling (warehousing/shipping) and transportation, including at night. Currently, this is installed at three sites.
Medical DC (A)
Medical DC (D)
Daily Commodities DC (E)
Promoting labor saving in simple work by replacing the manual picking and placing process with piece picking robots with specifications according to the product characteristics. Currently, this is introduced at two sites.
Apparel DC (C)
Medical DC (A)
For efficient inbound and outbound inspection and inventory
count, we test accuracy of reading in logistics sites and verify operations. We also participate in demonstration experiment of "Information sharing system for supply chain using electronic tag," a project outsourced by New Energy and Industrial Technology Development Organization (NEDO).
In FY2018, we verified the effects of using RFID in stores and formulated a data sharing model conforming to international standards. In FY2019, we continued to participate in RFID affixing demonstration experiments for all convenience store and drugstore products led by the Ministry of Economy, Trade and Industry. Going forward, we will continue to participate in study groups on implementation methods related to demonstration experiments, aiming for implementation.
*RFID (Radio Frequency Identification): Contactless automatic recognition technology that reads information via radio waves
Established a pay-per-use platform center where multiple customers share assets (automation/labor-saving equipment), systems (information systems), spaces (storage/workspace) and manpower (administrators/workers) in a logistics center.
In order to deal with the labor shortage that is currently a major social issue, in addition to labor-saving equipment such as AGV picking systems and automatic boxing machines, we have developed further labor saving systems such as product inspection by image recognition and automatic loading of packing cushioning materials, to minimize the man-hours required for manual work processing.
In September 2019, we opened the EC Platform Center in Kasukabe City, Saitama Prefecture. At this Center, we have realized a comfortable workplace environment in which the burden on workers is reduced by introducing labor-saving equipment, as well as stable work quality in operations standardized by automation. In addition, by pursuing convenience together with collaborative partners, we are able to implement the necessary functions around the logistics area.
While the number of accidents caused by the state of health of drivers has increased in recent years, the HTS Group is aiming for a "zero accident society" by providing safe driving to society through promotion of the commercialization of "SSCV." "SSCV" collects in the cloud danger signals and all of the biometric information from biometric information measurements before operation and from in-vehicle sensing devices during operation, and sends alerts to operation managers and drivers to prevent accidents, by determining situations that affect accidents or Hiyari-Hatto(near-miss) incidents with analysis by AI.
In FY2019, we expanded seven functions with five services, such as a warning function for drivers while driving and a function to visualize data during operation. In FY2020 as well, we will continue to work on expanding functions.
Utilizing the functions of SSCV-Safety will lead to the following realizations.
By the end of March 2020, we have introduced it to approximately 1,300 trucks nationwide in the Group and have begun operation in sequence. At the sites of our Group companies, the number of Hiyari-Hatto (near-miss) incidents decreased by 75% in the six months after introduction.
In the future, we will expand the scope of provision and work to provide it to partner transport companies.
In order to contribute not only to safety aspects, but also to a more convenient society, we have been developing solutions with various functions, such as improving the efficiency of the transportation business as a whole and supporting profit improvement.
The HTS Group is working on establishing volume forecasting technology using AI and developing new solutions utilizing forecasting technology in order to become a global supply chain solutions provider and improve operational efficiency.
The HTS Group is working on establishing volume forecasting technology using AI and developing new solutions utilizing forecasting technology in order to become a global supply chain solutions provider and improve operational efficiency .
In FY2019, we designed a demand forecasting tool through joint research with our customer (1 case) and examined the operation of a logistics forecasting tool (3 cases).
|Number of cases of manufacturing/sales control support (demand forecast)|
(as of March 31, 2020, cumulative)
We aim at contributing to supply-chain optimization with the calculation of standard inventory and development of order plans suitable for the customer's supply chain.
We have been conducting research with the aim of contributing to the smoothness of our customers' supply chains, such as creation of a mechanism to speed up the transportation and delivery of products and the payment of compensation associated with them using blockchain*. In FY2019, we demonstrated the concept of payment to transportation and delivery companies.
* Blockchain: A ledger that is managed digitally. Also known as "distributed ledger technology."
We are fostering data scientists who use data to identify and solve issues of customers' supply chain. In FY2019, 25 people took the training course.
|Number of attendees of data scientist training course|
(as of March 31, 2020, cumulative)