"Visible RFID" enables fast shipping! "Smart Cards" supporting futuristic logistics.

Introduction video of the case study.

Trusco Nakayama's vision of futuristic logistics.

Trusco Nakayama Corporation has built a nationwide logistics network to meet the needs of manufacturing sites by delivering "what is needed," "when it is needed," and "in the quantity needed." At "Planet South Kanto" (Isehara City, Kanagawa Prefecture), which began operations last August, cutting-edge material handling equipment was introduced. A key tool that maximizes its efficiency is the "Smart Card" by AIOI Systems Co., Ltd., featuring electronic paper and known as "visible RFID." We spoke with Yuko Morisaki, the center manager, about how this tool supports Trusco's high-speed shipping and their vision for future logistics.

Strengthening shipping capabilities with the latest material handling equipment.

Yumiko Morisaki, Director of Planet South Kanto Center, Trusco Nakayama Corporation

Please tell us about your company's business overview.

Morisaki: We are a wholesale distributor handling tools, materials, and other items used in factories and construction sites. Our corporate message is "Do your best!! Japanese manufacturing." We strive to provide a wide range of professional tools and have established a logistics system that can respond promptly to the needs of our business partners. Our sales for the fiscal year 2020 were approximately 210 billion yen. We have an inventory of 460,000 SKUs and ship over 90% of orders from that inventory.

Do you have many business partners?

Morisaki: We have 2,600 suppliers and over 5,500 clients. The products purchased from suppliers are stocked in our logistics centers and distributed to retailers nationwide such as home centers and online retail companies upon order. We have 27 logistics bases in Japan, from where we ship products daily. However, there were few challenges to overcome in order to carry out smooth and efficient shipping operations.

What were the challenges that needed to be addressed?

Morisaki: We were lagging behind in transitioning to a paperless system. Previously, we manually applied labels to products picked in the warehouse and issued shipping instructions for each destination. Small items were stored in containers, and even the instructions for that were handwritten. Tasks like applying and removing labels, generating waste, and the potential for human errors leading to misdeliveries were becoming bottlenecks in our operations.

Did you introduce "Smart Cards" to solve this issue?

Yes, that's right. The "Planet Minamikanto," where we introduced Smart Cards this time, is the latest logistics center that started operating in August 2020. It is equipped with state-of-the-art material handling equipment such as high-speed sorting shuttle racks and automated warehouses. In order to fully utilize these functions, it was essential to transition to a paperless system on the site. Smart Cards are an indispensable system for achieving the fast shipping that our company aims for.

Contributes to business efficiency and paperless operations.

Please tell us how you came to introduce Smart Card.

Morisaki: We started considering the introduction at the end of 2019 and conducted tests in June of the following year. We were able to implement it in about six months in conjunction with the launch of Planet Minamikanto. Without the prompt response and cooperation from AIOI System, it would have been impossible to introduce it in such a short period.

How and for what purpose are you using it?

Morisaki: We have attached Smart Cards to all folding containers used within the center, digitizing the shipping information that was previously managed with labels. Initially, we used 4,000 cards, but we recently purchased an additional 1,000 cards due to the increase in the volume of handled products.

Specifically, we pick up the items according to the orders and load them onto shuttle racks. Using a reader/writer, we instantly print the shipping destination information on the Smart Card. The containers coming out of the shuttle racks already have the information written on them, allowing us to smoothly carry out the shipping operations.

Have you experienced any charms or benefits from using it?

Morisaki: In terms of operations, we no longer have the hassle of applying and removing shipping labels. This has reduced waste and helped us keep the containers clean. The elimination of confusion caused by missing or duplicate labels has reduced shipping errors. While there were initial costs associated with the implementation, Smart Cards can be repeatedly printed and erased, so we should see cost benefits in the medium to long term.

Additionally, since the displayed information can be rewritten, we have recently included the delivery route sequence for the convenience of the drivers. When using it for replenishing inventory at nearby branches or for shipping requests, we include QR codes. This allows the recipient to scan it and understand the next steps in the process.

What was the deciding factor in implementing it?

Morisaki: Smart Cards were essential for the operation of the latest material handling equipment to achieve efficiency and automation. In addition, we considered them effective for business continuity planning (BCP) to ensure operations can continue even in unforeseen circumstances. Since they can display information without consuming any power except during rewriting, we believe they offer an advantage in ensuring that shipping operations can continue smoothly even in case of emergencies.

Supporting Japanese manufacturing with speed and reliability

How is the support system of AIOI System?

Morisaki: Even if there is a minor issue, they promptly provide replacement items and help us with reporting the cause, which is incredibly helpful. In fact, when we introduced Smart Cards, the impact caused by the automatic assembly machine for containers was a challenge, but they conducted tests internally and took measures to address it.

Please tell us about your future plans.

Morisaki: We have actively invested in material handling equipment and cutting-edge technologies, and strengthened our range of items and inventory. In the future, we aim to further advance this by building a new distribution platform called "Trusco Platform" utilizing AI and robots. This is a new project with the key message "The best is already here."

Furthermore, as we establish a new logistics base "Planet Aichi" in 2024, we will advance joint research with Nagoya University. We have also formed capital and business alliances with logistics solution company GROUND Inc. and AI technology company Cinnamon Inc. To achieve the fastest, shortest, and best logistics in the industry, we will continue to optimize the supply chain that supports Japanese manufacturing.

Is the Smart Card an essential tool for achieving the futuristic logistics that your company aims for?

Morisaki: Yes, that's correct. We have been introducing various logistics equipment and facilities to promote efficiency and automation. We first introduced shuttle racks and Smart Cards at Planet Minamikanto, and we are currently evaluating their effectiveness. Since Smart Cards are a highly effective tool for fast shipping, expanding them to centers with the latest material handling equipment is definitely within our considerations.

Are there ways for small businesses to effectively use Smart Cards?

Morisaki: There are benefits to using Smart Cards effectively, as they allow you to visualize the written information, increasing the reliability of operations while promoting paperless processes. In logistics warehouses, tasks tend to become personalized, but since the sequence of processes and destinations are all displayed on the cards, even new part-time employees on their first day will not make mistakes. In addition, there are various other uses such as work history management, access control, and replacing entry permits. I recommend considering these in relation to your company's specific challenges.