Fujitsu and AWS offer cloud-based logistics

  • December 18, 2023
  • Steve Rogerson

Fujitsu has launched a cloud-based logistics data standardisation and visualisation service for shippers, logistics companies and vendors across the supply chain.

The service will offer tools so users can achieve sustainability in their operations and address challenges, including looming shortages of truck drivers, the urgent need to reduce the carbon footprint of transportation, and compliance with stricter industry regulations.

The Amazon Web Services (AWS) cloud-based service converts and standardises logistics data for areas such as inventory and transport to empower users to share insights safely and easily to internal stakeholders, as well as with other companies to streamline transportation and enable joint logistics planning between players in different industries across the entire supply chain. By providing indicators for visualising and analysing logistics data, the service also supports business improvement and process reform to optimise operations amid growing complexity and uncertainties for supply chain managers.

Fujitsu will launch the service in Japan this month. As part of new labour standards to promote work style reform, the Japanese government will introduce regulations to limit overtime for truck drivers in Japan that will take effect in April 2024. Concerns remain this could lead to a severe shortage of truck drivers, and that shipper companies may not be able to carry packages under the existing contract terms, making it difficult for them to continue their business. Without appropriate measures, the Japanese Cabinet Secretariat estimates a 14% capacity shortage in 2024 and a 34% capacity shortage in 2030 in the logistics industry.

In addition, the amount of cargo truck drivers are allowed to carry will be limited by stricter regulations on the working hours of drivers, and logistics companies will face the same challenges as shipper companies in securing profits.

To ensure future sustainable and stable logistics operations, efficient allocation of resources including vehicles and drivers in the logistics industry represents an important challenge.

To address these issues, the Japanese Ministry of Land, Infrastructure, Transport & Tourism (MLIT) and the Japanese Ministry of Economy, Trade & Industry (METI) have issued a series of policies and guidelines to support the logistics industry.

Based on the planned policies of the Japanese government, Fujitsu developed the cloud-based service that promotes the standardisation of logistics data and contributes to supply chain efficiency.

Fujitsu has been promoting technology research and infrastructure development required for logistics and commercial distribution data infrastructure as part of a Japanese Cabinet Office project. Fujitsu leveraged the results of research to develop a service in compliance with the guidelines published by MLIT and METI. By automatically transforming and standardising logistics data formats from multiple systems, which often create bottlenecks in the supply chain, Fujitsu aims to facilitate inter-company collaboration, contribute to societal issues in the logistics industry, and realise optimisation of the overall supply chain.

The service includes a datahub function for seamless integration of logistics data from various logistics related systems. In this way, it enables analysis and use within and between companies by consolidating and storing a wide range of logistics data including inventory and transport data.

A logistics KPI function enables numerical visualisation of consolidated logistics data and analysis for improvement and reform. Basic logistics KPIs are provided as standard and visualised and analysed in tables and graphs to promote business improvement and process reform.

By linking logistics data from different user companies including shipper companies (senders and receivers) and logistics companies, the service can improve the efficiency of operations including inspection work and slip entry by digitising field operations.

By connecting the entire supply chain through information, it helps users strengthen their business continuity including inventory allocation planning, distribution centre operation planning and vehicle arrangements for transport and delivery by using standardised logistics data.

By promoting shared use of vehicles and drivers through joint distribution among companies, it addresses the challenge of driver shortages and enables optimisation of vehicle usage; by optimising and reducing drivers’ total distance, it contributes to the reduction of energy consumption.

The service integrates data from users’ core systems and multiple logistics systems, including warehouse and transportation management systems; users can use the service as a data infrastructure for visualisation and analysis for improvement and reform, and for linkage with various cloud services.

By using standardised data in the supply chain, it supports users in preventing food loss by improving the accuracy of demand forecasting and optimising inventory throughout the supply chain.

In emergency situations, it enables rapid situational analysis and emergency measures including alternative transport and delivery methods.

As part of an agreement with AWS in 2021, the service is implemented in a serverless architecture that supports agile modern application development with the support of AWS Professional Services.

“Fujitsu has a wealth of knowledge and experience in the mobility and logistics sectors, and is partnering with AWS to drive digital transformation in diverse industries,” said Tetsuya Aida, senior manager for AWS (aws.amazon.com) in Japan. “We anticipate that this will contribute to solving problems not only in the logistics industry, but also in our daily lives, and also support customers in innovating their business.”

Fujitsu (www.fujitsu.com) reported consolidated revenues of ¥3.7trn for the year ending March 2023.