Amendments to the Logistics Efficiency Act and Measures Shippers Should Take - Are You Leaving It All Up to the Logistics Company?

Amendments to the Logistics Efficiency Act and measures that shippers should take: Are you leaving everything up to logistics companies?

Introduction: Amendments to the Logistics Efficiency Act

Logistics is an important social infrastructure that supports people's lives and economic activity. However, due to the effects of a declining birthrate, aging population, and labor shortages, it has been pointed out that the shortage of transportation capacity may become more serious in the future.
In light of this background, the Ministry of Land, Infrastructure, Transport and Tourism has revised the Logistics Efficiency Act and introduced a new framework aimed at sustainable growth in logistics.
This legal amendment has made it essential for not only logistics companies but also shippers to take steps to improve logistics efficiency. Macnica has already received consultations from various shipper companies about their issues.
From my perspective as a shipper, I would like to introduce this article to shippers who are planning to get started in this field.

From fiscal 2025, it will be an "obligation to make efforts" and from fiscal 2026, it will become an "obligation"

From fiscal year 2025: All shippers and logistics companies will be required to make efforts to improve logistics efficiency.
From fiscal year 2026: "Specified businesses" of a certain size or larger are subject to "obligations" such as formulating medium- to long-term plans and submitting regular reports.

Source: Portal site for promoting understanding of the Logistics Efficiency Act https://www.revised-logistics-act-portal.mlit.go.jp/

Responsibility of specified business operators

"Specified Business Operators*" are businesses that are recognized as having a large impact on logistics as a whole, and are designated based on standards set by the government. (Specified shippers, specified warehouse operators, specified truck transport operators) These businesses have a responsibility to proactively promote initiatives aimed at improving logistics efficiency.

Key Takeaways
Not only transportation companies but also shippers need to understand the impact their cargo has on the overall logistics system and manage and supervise it.
With the responsibility of shippers now clarified, the visibility of logistics and information sharing has become even more important.

with its obligation to make efforts, it may be penalized.
If the company fails to comply If the response is insufficient, the government may issue a recommendation, and if necessary, it may request reports and conduct an on-site inspection. If the government does not follow the recommendation and does not take measures without a valid reason, an order may be issued. Violation of an order may result in a fine of up to 1 million yen.

The three main challenges shippers face and the risks that lead to management issues

Due to amendments to the Logistics Efficiency Act, shippers are now required to take responsibility for logistics management, but many challenges still exist in the field.
In particular, issues regarding "visualization and sharing of information" can be a barrier to complying with the law.
Macnica is also seeing an increasing number of shippers coming to us for advice on how to prepare for legal changes while also using technology to easily resolve quality control issues.

The issues that shipper companies consult us about can be broadly divided into three categories:

① Shippers can check directly No system	Most logistics information is managed by the transport company, and shippers only receive reports. This means they are unable to grasp the transport status or abnormalities of their own cargo in real time, and they tend to respond after the fact. ▸ Shippers cannot directly check information such as the temperature, location, and impact of their cargo ▸ Reporting time lags cause delays in quality control and complaint handling ⇒ solution: The key point is that it is a system that can also be checked by the shipper!
② In the digital tachograph Real-time confirmation is difficult	Most conventional digital tachographs (digital tachographs) are designed to record driving operations. Because the data is collected after the vehicle returns to the warehouse, it is difficult to immediately identify any abnormalities during transportation and take preventative measures. ▸ Data is collected after the vehicle is returned to the depot, so if an abnormality occurs, it cannot be detected immediately. ▸ Shippers only become aware of abnormalities after the fact, making preventative measures difficult ⇒solutionThe key points are "detecting abnormalities in real time, being able to respond immediately, and having information reach the shipper"!
③ Information is scattered, Cannot be comprehensively confirmed	Information such as temperature, location, and impact is managed in separate systems, and there is no environment where all parties involved, including shippers and transport companies, can centrally grasp the overall picture. ▸ Various sensors and systems are independent, with no integrated view ▸ Different people use different tools, making it difficult to share information ▸ It is difficult to track the response history and improvement status after an anomaly is detected ⇒solutionThe key point is that it is a system that visualizes the entire delivery process and allows shippers/stakeholders to share the same centrally managed data!

If not addressed, this could lead to the following risks:

① Check the status of your cargo In real time Unknown risks	If incidents such as temperature deviations, shocks, and delays during transportation cannot be detected in real time, it can lead to quality deterioration and delivery delays, causinga loss of customer trust.
② When an incident occurs "Reporting after the fact" is not enough	If a problem is reported only after it has occurred, the initial response will be delayed anddamage will increase. Preventive measures and prompt corrective action are essential.
③ Information for each department and contractor Divided"Siloization"	If information is scattered across departments such as quality control, logistics, and sales, and across subcontractors, it will have a major impact on the formulation of overall optimization plans and performance evaluations that must be reported to the government.

Macnica Tracks® can solve this problem! From fragmented, black Box logistics to a strategic supply chain connected by data

Three benefits that Macnica Tracks® can solve

Macnica Tracks® is a cloud-based monitoring solution developed by Macnica that realizes logistics visibility and efficiency.
We provide an environment where anyone, anywhere, can immediately grasp the "reality of the field", which was difficult to see with conventional logistics management.
Here are three benefits of Macnica Tracks® that solve the three challenges mentioned above.

1. Highly visible UI that anyone can use	An intuitive UI (user interface) designed for a diverse range of users in logistics sites. No expert knowledge required, just a dashboard with important information (temperature, location, impact, battery level, etc.) Anyone can understand at a glance. ⇒ "An easy-to-use and easy-to-implement system that can also be checked by shippers"
2. Cloud-based, real-time data viewing	Data from sensor terminals is sent to the cloud immediately. Shippers and transport companies can simultaneously view the same information, and receive immediate alerts if an abnormality occurs. ⇒ "Real-time anomaly detection, immediate response, and information confirmation by the shipper"
3. Permission management and device access restrictions enable information sharing among stakeholders	Viewing and operation permissions can be set for each party involved, such as shippers, transportation companies, and warehouse operators. This enables smart information sharing, delivering only the necessary information to those who need it. ⇒ "Visualize the entire delivery process, and all parties involved share the same centrally managed data."

Learn in 3 minutes! How to use Macnica Tracks® (video)

Finally

With the revision of the Logistics Efficiency Act, an era has arrived in which shippers are also required to take responsibility for logistics management.
In the future, utilizing technology will be essential to increasing the sustainability of logistics.
Macnica Tracks® contributes to improving the efficiency and quality of logistics by enabling real-time situational awareness, abnormality detection, and information sharing.
『An environment where anyone, anywhere can understand" to achieve Macnica Tracks® teeth,
In order to improve the efficiency and quality of logistics, highly conscious customers are currently considering introducing the system and conducting demonstration experiments.

Would you like to create an environment where anyone, anywhere can understand things immediately?

Please feel free to contact us if you have any questions, such as "I would like to see the actual dashboard" or "I would like to discuss the issues I am currently facing."
In terms of cost, we offer an amazing pricing structure that includes the cost of the device, communication fees, and cloud usage fees.
If you are interested, please feel free to contact us.

Inquiry

For any questions, estimates, or other inquiries regardingMacnica Tracks® introduced in this article, please contact us using the form below.

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