AEON and CJPT working to resolve logistics industry issues and achieve carbon neutrality at AEON Fukuoka XD

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(1).

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 CO2emissions 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.