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Wednesday, December 6, 2023

Hino Motors "Serious DX". Digital Transforms the Blue Ocean Logistics Industry and Revitalizes Japan

Since its establishment in 1942, Hino Motors has supported Japan's logistics industry by manufacturing trucks and buses, which are indispensable to society. However, the environment surrounding the movement of people and goods is rapidly changing with technological innovation and diversifying lifestyles. Furthermore, there are a wide range of social issues that need to be resolved, such as driver shortages, reduction of CO2 emissions, and maintenance of sustainable transportation networks.

Therefore, HINO ACCELERATOR 2021 -HINO DE SAFARI- was implemented with the aim of solving social issues not only by developing and providing solutions in-house, but also through collaboration with other companies. By combining the technologies and ideas of startups with Hino's assets, Hino aims to provide new value by solving issues in the logistics industry and society. We interviewed Mr. Goseki Osano, Hino Motors' Chief Digital Officer (CDO) and General Manager of the Digital Domain, to learn more about the specifics of the project.

A Digital Strategy Serious about Changing the Logistics Industry

--Hino Motors is actively working on digitalization by launching the DX Promotion Department in 2019. First of all, please tell us the background behind this.

Since its establishment in 1942, Hino Motors has supported Japan's logistics industry as a manufacturer of trucks and buses. However, the environment surrounding logistics has changed dramatically, and our customers' businesses and needs have also diversified.

To this end, we have adopted "Challenge 2025" as our mid-term management plan, and have been promoting various initiatives to solve various social issues such as safety, the environment, and driver shortage.Specifically, there are three areas: first, the development of optimal products that pursue safety and environmental technologies; second, total support, including after-sales care; and finally, the challenge of entering new areas.It is.

Among others,Since the use of digital and big data and DX strategies are essential to take on challenges in new areas, the DX Promotion Department was established in 2019 with an elite group of employees recruited from within the company.I did.

--Mr. Kosano, who has been promoting IT and digital technologies at Yamato Transport and Aeon for many years, joined the company to promote DX reform by the DX Promotion Department, didn't he?

I have seen the logistics scene as the general manager at Yamato Transport and have been involved in IT and digital for many years as the director in charge of IT. I made the decision to leave Yamato because I felt that there was a limit to how much Yamato alone could do to solve the major issues of driver shortages and increasing material volume, even if it did its best to digitalize its operations.

Thinking that the entire logistics should be changed by capturing not only the delivery perspective but also the shipper's viewpoint, he joined AEON in an attempt to find a way to change logistics from the shipper's standpoint. However, even at Aeon, logistics was mostly a manual process, and although we approached other retailers to try to standardize data, it was not an easy task.

In other words, it was difficult to reform logistics from the standpoint of either Yamato, the No. 1 transportation company, or Aeon, the No. 1 retailer. How could we change the logistics industry? It was at this juncture that I was approached by Hino Motors.

There are only four major players in the domestic trucking industry. I joined Hino Motors in March 2020 after realizing that the trucking industry has few players and that it could contribute to more efficient logistics, and that trucks connect the entire logistics process, from manufacturers to wholesalers, retailers, and the last mile. Currently, I am working on logistics reform as CDO (Chief Digital Officer).

Change requires diverse perspectives that manufacturers do not have

--What did you work on in the year after joining Hino Motors and before starting the accelerator program?

In order to accelerate our efforts in new areas, we have developed a strategy by closely examining what resources are available in Hino.Hino's goal is to become a "solution provider" that utilizes big data obtained from its own vehicles, while at the same time becoming a "data provider" that allows outside parties to utilize its own data.It is.

However, since we have no experience as a data provider, we have been working on the technical aspects of data retrieval and the legal and internal rules for data utilization.

--Was the data originally accumulated?

There was data for vehicle quality, development, and maintenance. However, this was only for better product manufacturing and after-sales service, not data for new logistics services. To change this, we need more diverse perspectives, not only from the manufacturer's manufacturing perspective.

Therefore, as a first step toward a diverse set of eyes, we are working to build an open logistics information platform and provide specific solutions by linking Hacobu's MOVO Fleet logistics management solution with Hino's standard onboard GPS.

We also introduced the Accelerator Program this time,I want to think from a variety of perspectives, from what is created when completely different perspectives are crossed, and what kind of data will lead to problem solving, even though it is not clear from the manufacturer's perspective.It is.

For example, the Corona disaster has greatly increased the volume of goods, but the driver shortage has not been resolved and transportation efficiency remains low. In particular, transportation efficiency is low, with many trucks having a load factor of less than 50%, so most trucks are full of cargo on the way to the destination but scuttling on the way back.

What data should be utilized to bring the loading rate closer to 100%, etc,There must be many things that cannot be noticed from a manufacturer's perspective, so I would like to work with diverse start-ups to create new value and revolutionize the logistics industry.I believe that this is a good idea.

Leapfrog" to bring about change in one fell swoop

--What are your expectations for startups in this accelerator program?

We are looking forward to new business proposals as well as proposals such as, "If we can get this kind of data, there are new possibilities like this. We can provide data that can be taken from maps and data that can be taken from weather, etc., from the companies that are cooperating with us in holding this event. We would like to explore the use of various types of data.

What we want to achieve in this way is a leapfrog-type rapid industry transformation. We want to create a change in the logistics industry similar to the rapid spread of cell phones in emerging countries. Because this is a blue ocean area where digitization has not yet progressed, I would like to take advantage of this opportunity to achieve a rapid transformation.

-What are your thoughts behind the desire for rapid change?

I believe that if we miss the wave of the new era, it is only a matter of time before we are swallowed up by the digital champions of foreign capital. Just as Uber quickly changed the cab and restaurant industries, the digital champions could change the entire trucking and logistics industries if they continue to do so.

Of course, this is not a bad thing, but it does not necessarily mean a happy future for Hino, its customers, and the various players in the logistics industry. That is why Hino, as a domestic manufacturer, is committed to revolutionizing the logistics industry in Japan. I believe that now is our last chance to do so.

Hino Motors is Serious about Digitalization, Industry Transformation, and Revitalization of JapanThe following is a list of the most common problems with theIf you have even the slightest desire to work together with us to not only revolutionize the logistics industry, but also to solve social issues and energize Japan by creating new value, we would like to talk with you. We are looking forward to hearing from you!The following is a list of the most common problems with the

Overview of HINO ACCELERATOR 2021

Application period: May 17, 2021 - June 11, 2021
Target companies: Corporations (start-ups) with the technology to develop solutions and the human resources to collaborate

Application Theme

To realize smart logistics

Ideas for solving emerging logistics issues using Hino's connected data
The driver's driving and work support.
The solution to the problems unique to large vehicles, such as parking.
The solution to the long waiting time for cargo and long working hours.
Reduction of logistics losses such as transportation of empty cargo, etc., leading to improvement of transportation efficiency, etc.

To realize a more prosperous mobility society

Ideas that utilize Hino's connected data to solve increasingly complex social issues and contribute to an affluent society through mobility and transportation
The following are some examples of the types of products that can reduce the environmental impact of CO2 and lead to sustainable movement of people and goods.
The number of people who use the service is increasing, and the number of people who use the service is decreasing.
The safety and security of trucks and buses.
Mobility services that solve social problems and enrich people's lives, etc.

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Tomomi Tamura
He joined Snow Brand Milk Industry in 2000. He then worked for an advertising agency and as a sole proprietor before joining BizReach in 2012. Engaged in content creation, he joined NewsPicks in 2016 as an editor on the BrandDesign team, and is now a freelance writer and editor.
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