Revolutionary Test for the Chemical Industry’s Logistics Challenges
The Physical Internet Realization Council, a collaborative initiative led by Japan’s Ministry of Economy, Trade and Industry (METI) and the Ministry of Land, Infrastructure, Transport and Tourism (MLIT), is pioneering solutions to critical logistical challenges in industries like chemicals. Through the formation of specialized working groups, the council is addressing issues such as transportation and storage capacity shortages. These challenges, often termed the “logistics 2024 problem,” are particularly hard for individual companies to resolve independently. Hence, collaboration within the industry has become essential.
Key Participants and Collaboration in the Revolutionary Test
A group of leading chemical companies, including Mitsubishi Chemical Group, Mitsui Chemicals, Tosoh, Toray, and Prime Polymer, joined forces for a revolutionary test aimed at optimizing logistics. Supported by METI and MLIT subsidies, the test was conducted from September to December 2024. The initiative utilized government-promoted logistics data platforms and information standards established under the Physical Internet Realization Council.
This revolutionary test sought to demonstrate the advantages of joint logistics within the chemical sector, focusing on reducing inefficiencies, lowering emissions, and improving overall operations. The test involved real-world trials with actual freight and vehicles, as well as advanced simulations, to evaluate collaborative logistics strategies.
Goals and Structure of the Revolutionary Test
The primary goals of this revolutionary test were to:
- Evaluate Joint Logistics Feasibility: Test the practicality of joint logistics models involving multiple consignors and logistics providers, a novel approach for the chemical industry.
- Enhance Transport Efficiency: Assess the effectiveness of shared delivery systems and main-route services to optimize time and resource utilization.
- Test Digital Platforms: Examine the utility of a digital logistics platform in facilitating data sharing among stakeholders, including consignors and operators.
- Analyze Simulation Results: Validate shared logistics models using simulations based on real transport data.
The test covered multiple logistics routes, including:
- Real-world transportation from Yokkaichi to Ichihara.
- Simulations between Nagoya and the Hokuriku region.
- Analysis involving Ichihara and the Tohoku region.
These efforts enabled the team to assess the potential of joint logistics strategies to enhance efficiency and sustainability.
Results of the Revolutionary Test
The results of the revolutionary test were groundbreaking. Key findings include:
Yokkaichi–Ichihara Real-World Trial:
- Truck Fill Rate: Improved from 69% to 89%, a 20 percentage point increase.
- CO2 Emissions: Reduced by 28%.
Nagoya–Hokuriku Theoretical Simulation:
- Truck Fill Rate: Increased from 67% to 80%, a 13 percentage point rise.
- CO2 Emissions: Lowered by 16%.
Ichihara–Tohoku Theoretical Simulation:
- Total Mileage: Decreased by 29%.
- Driver Work Hours: Reduced by 17%.
- CO2 Emissions: Also cut by 17%.
These results highlight the transformative potential of joint logistics systems in addressing inefficiencies and contributing to sustainability goals.
Key Takeaways from the Revolutionary Test
The revolutionary test provided compelling evidence for the benefits of joint logistics within the chemical industry. Key takeaways include:
- Improved Truck Fill Rates: By increasing utilization, logistics operations can achieve significant cost and resource efficiency.
- Environmental Benefits: Substantial reductions in CO2 emissions underscore the environmental advantages of collaborative logistics.
- Digital Platforms as Enablers: The use of digital platforms enhances transparency, coordination, and data sharing among stakeholders.
- Government Standards’ Importance: Logistics information standards promoted by the government are critical for smooth collaboration.
Future Directions for Revolutionary Test Expansion
Building on the success of this revolutionary test, participating companies plan to expand joint logistics initiatives. Future efforts will focus on:
- Scaling Operations: Leveraging economies of scale through broader collaboration.
- Enhancing Digitalization: Increasing the adoption of digital platforms to streamline logistics processes.
- Standardizing Practices: Aligning logistics operations across stakeholders to enable seamless cooperation.
The Chemicals Working Group’s voluntary action plan will guide these initiatives, aiming for a nationwide implementation of joint logistics models. Such models promise to boost the sustainability of Japan’s chemical industry by reducing greenhouse gas emissions and fostering more efficient transport practices.
