AEON, CJPT Tackle Logistics Issues, Aim for Carbon Neutrality

AEON Co., Ltd. (AEON), AEON KYUSHU Co., Ltd. (AEON KYUSHU), AEON GLOBAL SCM Co., Ltd. (AEON GLOBAL SCM), and Commercial Japan Partnership Technologies Corporation (CJPT) will implement initiatives seeking to address social issues faced by the logistics industry and contribute to carbon neutrality at the new logistics center AEON Fukuoka XD.

AEON has been working on improving efficiency in each stage of distribution, from procurement to sales, with the aim of optimizing logistics. CJPT has been focusing on two pillars: logistics efficiency which it believes will not only solve logistics issues but also lead to immediate carbon neutrality and vehicle electrification.

AEON and CJPT started collaborating at AEON Global SCM's South Osaka RDC*2 from April 2021 as Phase 1. Combining the retail logistics expertise built up by AEON and the philosophy of TPS (Toyota Production System), the companies aimed to visualize and streamline the flow of goods, achieving improved loading efficiency through work improvement in the logistics center and optimal delivery utilizing real-time data. As a result, they achieved approximately 10% efficiency improvement in total truck mileage and a 10% reduction in CO2 emissions. Starting from September 2022 as Phase 2, in collaboration with AEON KYUSHU, the scope of activities has further expanded to include wholesalers and suppliers. This expansion has resulted in the streamlining of the entire supply chain from upstream to downstream through cross-industry initiatives.

As part of Phase 3, AEON and CJPT will strive to enhance the effectiveness of logistics efficiency by consolidating these initiatives at the new logistics center, AEON Fukuoka XD, which will commence full operation starting on July 24, 2024.Furthermore, by promoting "vehicle electrification," the companies aim to address logistics problems and achieve carbon neutrality, targeting a 35% reduction in CO2 emissions by 2030*3. Specifically, "logistics operations automation" will be integrated into efforts to reduce overall travel distance through improvements both in operations within the logistics center and in optimal delivery. This will help reduce workload and enhance productivity. In addition, the companies will actively pursue the reduction of CO2 emissions through the introduction of fuel cell (FC) small trucks and other environmentally friendly vehicle technologies.

Moving forward, the companies will expand the initiatives throughout the entire supply chain, improving efficiency in procurement logistics through data integration with suppliers and utilizing double-trailer trucks and collaborative transportation for long-haul logistics. AEON and CJPT will take on the challenge of achieving carbon neutrality and addressing nationwide logistics problems, thereby contributing to society's overall logistics challenges.

Concrete initiatives based on the new logistics center "AEON Fukuoka XD"

CategoriesInitiativesTargetReduction in CO2 emissions
Logistics Efficiency ImprovementEfficiency pursuit through integration of stores and logistics based on TPS philosophy
  • Enhanced loading efficiency through improvements in logistics center operations
  • Improvement of vehicle efficiency through logistics optimization
10% reduction in total mileage▲10%
Efficiency improvement through data/automation technology in logistics
  • Efficiency improvement through optimal delivery planning utilizing real-time information
  • Workload reduction and productivity improvement through automation and labor-saving equipment
10% reduction in total mileage

30% increase in shipping capacity

▲10%
Vehicle ElectrificationReduction of CO2 emissions through environmental and vehicle technologies
  • Shift to fuel cell (FC) and electric vehicles
15% of all vehicles▲15%
Contribution to Local CommunitiesResolution of logistics problems
  • Streamlining procurement logistics through information collaboration with suppliers
  • Reducing waiting time through the implementation of a berth reservation system
  • Resolving driver shortage through the utilization of double-trailer trucks and collaborative transportation in long-haul logistics
*1Cross Dock = A logistics facility with the function of temporarily receiving and quickly delivering goods to the appropriate location.
*2Regional Distribution Center = A logistics facility that stores fast-moving goods and supplies them to stores in the designated area through a cross-dock center in the designated area.
*3Submitted on October 22, 2021―Japan's NDC (Nationally Determined Contribution) as determined by the national government.
The new logistics center
Name
AEON Fukuoka XD
Location
1-1-4 Minato Kashii, Higashi-ku, Fukuoka City, Fukuoka, Japan, T-LOGI Fukuoka Island City 1F-2F
Leased Area
41,335.80 square meters

Improvement of work efficiency by incorporating TPS (Toyota Production System) philosophy

  • AEON and CJPT collaborating at the worksite
    AEON and CJPT collaborating at the worksite
  • Efficiency improvement case
    Efficiency improvement case
  • AI remote Depalletizing arm robot Remote unmanned forklift AGF
    AI remote Depalletizing arm robot

    Remote unmanned forklift AGF

  • Next-generation AGV (Automated Guided Vehicle) transportation system
    Next-generation AGV (Automated Guided Vehicle) transportation system

Optimal delivery planning system (E-TOSS*4) utilizing connected technology and real-time data

  • Utilizing E-TOSS for dispatching
    Utilizing E-TOSS for dispatching
  • Image of Dispatch planning
    Image of Dispatch planning
*4
E-TOSS
Developed by Toyota Motor Corporation based on CJPT's concept
Hydrogen-powered fuel cell vehicles emit zero CO2 during operation Utilizing the Fukuoka Prefecture Fuel Cell Truck Introduction Promotion Project subsidy
Hydrogen-powered fuel cell vehicles emit zero CO2 during operation

Utilizing the Fukuoka Prefecture Fuel Cell Truck Introduction Promotion Project subsidy

Beyond Zero

"Achieving zero, and adding new value beyond it"

As part of efforts to pass our beautiful "Home Planet" to the next generation, Toyota has identified and is helping to solve issues faced by individuals and overall society, which Toyota calls "Achieving Zero," hoping to help reduce the negative impacts caused by these issues to people and the environment to zero. Additionally, Toyota is also looking "Beyond Zero" to create and provide greater value by continuing to diligently seek ways to improve lives and society for the future.

About Beyond Zero
https://global.toyota/en/mobility/beyond-zero/
Sustainable Development Goals

Toyota Motor Corporation works to develop and manufacture innovative, safe and high-quality products and services that create happiness by providing mobility for all. We believe that true achievement comes from supporting our customers, partners, employees, and the communities in which we operate. Since our founding over 80 years ago in 1937, we have applied our Guiding Principles in pursuit of a safer, greener and more inclusive society. Today, as we transform into a mobility company developing connected, automated, shared and electrified technologies, we also remain true to our Guiding Principles and many of the United Nations' Sustainable Development Goals to help realize an ever-better world, where everyone is free to move.

SDGs Initiatives
https://global.toyota/en/sustainability/sdgs/

SDGs goals that this project makes particular contribution to

/Public Release. This material from the originating organization/author(s) might be of the point-in-time nature, and edited for clarity, style and length. Mirage.News does not take institutional positions or sides, and all views, positions, and conclusions expressed herein are solely those of the author(s).View in full here.