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Sunday, December 10, 2023

Logistics startup Hacobu and BIPROGY Group form capital and business alliance! Realizing Solutions to Social Issues in Logistics

Hacobu, a logistics startup, and BIPROGY signed a collaboration agreement in the area of logistics and transportation delivery on February 27, 2023! In addition, Emellience Partners, a member of the BIPROGY group, subscribed to Hacobu's third-party allocation of new shares on November 29, 2022, forming a capital alliance.
Through the integration of BIPROGY's truck reservation service "SmartTransport" and Hacobu's truck reservation service "MOVO Berth", the know-how of both logistics services will be gathered, and through the capital alliance with Emellience Partners, a comprehensive collaboration will be promoted to solve social issues such as building a business ecosystem in logistics DX Through the capital alliance with Emellience Partners, we will promote comprehensive collaboration to solve social issues, including the creation of a business ecosystem in the logistics DX field.

Background of the Cooperation Agreement

Based on the vision of "creating a sustainable logistics infrastructure," Hacobu promotes the construction of a "logistics information platform" that serves as a foundation for analyzing and utilizing logistics big data beyond the boundaries of individual companies, and operates a cloud logistics management solution "MOVO" that supports logistics DX for companies and municipalities, and a consulting We are also developing the cloud logistics management solution "MOVO" and the consulting service "Hacobu Strategy" to support the DX of logistics for companies and municipalities.
In December 2022, the cumulative number of drivers (1) using the "MOVO Berth" truck reservation acceptance service exceeded 420,000, which is equivalent to about half (2) of all truck drivers in Japan.

On the other hand, BIPROGY is not only providing the "SmartTransport" truck reservation acceptance service, but is also working with various customers and partner companies to solve social issues based on the knowledge and know-how gained from building systems and providing services in a wide range of industries and sectors. We are creating and expanding business ecosystems to solve social issues together with various customers and partner companies.

The two companies agreed on the need to solve social issues in the field of logistics and transportation and delivery, and on the need to develop a logistics information platform as a means to achieve this. The capital alliance will also enable HOYA to expand its business in the logistics industry. At the same time, the capital alliance will strengthen Hacobu's financial base and mutually confirm their commitment to medium- and long-term cooperation.

Details of Capital and Business Alliance

The capital and business alliance has the following four main components

(i) BIPROGY's "SmartTransport" is transferred to Hacobu and integrated into "MOVO Berth". Becomes the dominant No. 1 truck reservation service provider in terms of market share.
Hacobu's "MOVO Berth" truck reservation acceptance service has the No.1*3 market share among logistics centers of various sizes. On the other hand, BIPROGY also provides the truck reservation service "SmartTransport" and has the No.4*3 market share.
The two companies have agreed to transfer SmartTransrpot to Hacobu on April 1, 2023 to unify their service lineups. After the transfer, BIPROGY will continue to license SmartTransport from Hacobu and will continue to provide SmartTransport services to its existing customers.
In addition, we will gradually switch to MOVO Berth after the date of conclusion of this cooperation agreement.

BIPROGY sells Hacobu's cloud logistics management solution "MOVO".
BIPROGY will also sell MOVO from BIPROGY by concluding a distributorship agreement, taking advantage of BIPROGY's extensive customer network.
MOVO consists of multiple applications related to transportation and delivery, and aims to solve issues related to transportation and delivery for a wide range of customers, including shippers and logistics companies, from a variety of perspectives.

3) Creation of new value through mutual collaboration and data utilization between Hacobu's strong consulting services and BIPROGY's strong system integration services
Hacobu has Hacobu Strategy, which specializes in consulting for the promotion of logistics DX in companies, and is staffed by logistics specialists who have held positions in charge of logistics and SCM departments at consulting firms and major foreign companies in the retail and distribution industry.

BIPROGY has been in business for more than 60 years as a system integrator, solving customer issues and building systems that support society and industry. With this experience and track record as a backbone, we are working with a variety of partners to create new value to enrich society and solve social issues.

In the field of logistics, we have provided SmartTransrpot, a truck reservation service, and developed and linked many systems, including core systems, warehouse management systems (WMS), and transportation and delivery management systems (TMS). By leveraging our accumulated knowledge and experience, we will link Hacobu's MOVO and BIPROGY's logistics solutions with the systems owned by our customers to realize data utilization that transcends the boundaries between companies and industries.

Hacobu and BIPROGY will work together in their areas of expertise to optimize, standardize, and save labor in SCM and accelerate Logistics 4.0*2 initiatives to solve social issues.

(4) Underwriting of third-party allotment of new shares by Emellience Partners
Emellience Partners, a member of the BIPROGY group, will underwrite Hacobu's private placement of new shares. Emellience Partners has invested 490 million yen in this capital and business alliance.
Emellience Partners supports businesses in the DX domain and actively engages in co-creative business creation with external clients and partners.
It will strengthen Hacobu's financial base and enable collaboration between the BIPROGY Group and Hacobu to solve social issues over the medium to long term.

Comments from each company

Taro Sasaki, President and CEO, Hacobu he

The truck reservation acceptance service provided by BIPROGY and Hacobu is an essential digital solution for realizing a sustainable logistics infrastructure. Through this collaboration, the mechanisms of both companies will be integrated, and the convenience of users, truck drivers and logistics bases, will be dramatically enhanced. In addition, the fact that Hacobu, a start-up company, has taken over the business of BIPROGY, a large corporation, and entered into a capital and business alliance is a progressive example. While there are still few successful cases of collaboration between large companies and start-ups in Japan, we will work together with BIPROGY to create a new form of open innovation.

Mr. Hideaki Sato, Executive Officer, BIPROGY

BIPROGY has long been solving customer issues, building systems that support society and industry, and providing various system development and services in the logistics field. Through this collaboration agreement with Hacobu, BIPROGY aims to provide new value-creating services to address social issues by developing logistics core systems and linking other systems, which is BIPROGY's specialty, in addition to Hacobu's MOVO service and consulting capabilities, which are leading the industry.

Mr. Shinsuke Chiba, CEO, Emellience Partners

We share Hacobu's vision of "creating a sustainable logistics infrastructure" and have invested in the company with the aim of creating a co-creation business. We will work together with Hacobu to create a business eco-system and create logistics DX services to realize the sustainable society that the BIPROGY Group aims for.

(1) Cumulative number of drivers in use refers to the number of driver phone number IDs that users register when they use MOVO Berth.
(2) Estimated based on 767,000 employees in 2015 from the Ministry of Land, Infrastructure, Transport and Tourism's "Guidance on Measures to Improve the Efficiency of Trunk Transportation that Contribute to Improving Logistics Productivity.
(in Japanese history)https://www.mlit.go.jp/seisakutokatsu/freight/content/001415371.pdf)
(3) Source: Deloitte Tohmatsu MIC Economic Research Institute, "Smart Logistics Solution Market Status and Forecast [FY2022 Edition]. https://mic-r.co.jp/mr/02560/SmartTransport" is an estimate. SmartTransport" is an estimate.
(4) Logistics is the process of planning, implementing, and controlling the efficient and progressive flow of "goods" from the point of origin to the point of consumption, storage, services, and related information to meet customer requirements. Logistics is the process of planning, implementing and controlling the flow of "goods", storage, services and related information. Changes in Logistics 4.0 are considered to be labor-saving and standardization through IoT, AI, etc.

About Hacobu

Hacobu offers MOVO, a cloud logistics management solution that promotes logistics DX. We provide cloud services such as "MOVO Berth," a truck reservation acceptance service with the largest market share(*3), "MOVO Fleet," a dynamic management service, and "MOVO Vista," a delivery case management service, as well as the "Hacobu Strategy" consulting service, to support the optimization of business-to-business logistics. Hacobu supports the optimization of business-to-business logistics.

name of companyHacobu Corporation
EstablishmentJune 30, 2015
Location9F Mita 3-chome MT Building, 3-14-10 Mita, Minato-ku, Tokyo 108-0073, Japan
representativeTaro Sasaki, Representative Director, President and CEO
uniform resouce locatorhttps://movo.co.jp/


name of companyBIPROGY Corporation
*Company name (trade name) will be changed from Nihon Unisys, Ltd. on April 1, 2022, in order to become a company that creates social value as stated in the new Purpose.
EstablishmentMarch 29, 1958
Location1-1-1 Toyosu, Koto-ku, Tokyo 135-8560, Japan
representativeAkiyoshi Hiraoka, President and Representative Director
Business OverviewService businesses such as cloud computing and outsourcing, sales and leasing of computer systems and network systems, development and sales of software and various system services
uniform resouce locatorhttps://www.biprogy.com/

About Emellience Partners

name of companyEmellience Partners K.K.
EstablishmentJuly 1, 2020
Location1-1-1 Toyosu, Koto-ku, Tokyo 135-8560, Japan
representativeShinsuke Chiba, CEO
Business OverviewCo-creative new business creation in the area of digital transformation
Provide support functions for new business creation, including consulting
uniform resouce locatorhttps://www.emellience.com/
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