The Nichirei Group has positioned various activities for business transformation using data and technology as DX, which stands for “digital transformation.” We have established Value Creation DX, Production/Logistics DX, Sustainability DX, Human Resources DX, and Management Base DX, all linked to the Group’s five material matters (materiality). Through DX activities in each of these areas, we will create new value and realize the Nichirei Group’s vision.
Organizational Structure for Promoting DX
Overview of DX Strategy
To raise the awareness of employees, we will launch a new portal site focusing on our DX activities and conduct DX training for each Group employee to acquire digital literacy. By promoting DX throughout the Group, we will help to innovate existing work, generate new work and resolve supply chain issues, among other benefits.
Value Creation DX
We will utilize data and digital technology to create new businesses that contribute to good eating habits and a longer healthy life expectancy, and to offer a more valuable experience for customers. Through initiatives that go beyond our own industry, we also aim to build new ecosystems and work to monetize them.
Production/Logistics DX
We will work to implement automation using IoT, AI, robotics and other methods, and for overall optimization to link factories and warehouses in areas such as ascertaining production volume at factories and incoming, outgoing and storage volume at refrigerated warehouses. We will also work to achieve optimal equipment operation and maintenance that mobilizes our factory and warehouse management know-how, and to conduct all-inclusive control of multiple sites.
Sustainability DX
We will work to create a sustainable supply chain by collecting, managing and analyzing information on the sustainability of our suppliers and all other parties involved in the supply chain.
Human Resources DX
We will deploy the right human resources to the right places in the Company. At the same time, we will improve work efficiency by promoting cooperation with external human resources.
Management Base DX
We will collect, manage and analyze internal and external data to be converted into valuable information, and provide that information to management in a timely manner for speedy decision-making.
Initiatives at Operating Companies
Initiatives to Achieve Sustainability Management through a Smart Factory
- The Nichirei Group aims to create social and economic value as it works to achieve sustainability management. As part of these efforts, Nichirei Foods and the new factory for rice products at Kyurei Inc. are promoting a “smart factory” initiative. The production site, production management and back-office departments are working together to the establish smart factory, which we consider to be factory that meet three conditions: reduction of headcount and waste through the use of AI and robotics, reduction of physical labor and dependence on individual skills through standardization and use of IT systems, and a faster improvement cycle through utilization of data. One specific example is the automation of an extensive amount of inspection work that was previously done manually (removal of burnt sections). By using AI and robots to do these tasks, we have reduced employee workload. Automation has enabled more precise removal of burnt sections, which has led to a reduction in food waste. Moreover, by promoting the visualization of environmental metrics, as well as effective utilization of waste heat, installation of solar panels, and utilization of renewable energy sources, we have been able to reduce CO₂ emissions by 50%.* In addition, we intend to further reduce dependence on personalized knowledge and skills by using AI to prepare production plans, and have introduced a cockpit system for real-time monitoring of the factory’s status from the office, enabling prompt detection of problems and swift instructions to the factory floor for improvement. Going forward, we will continue rolling out these technologies to our other factories, enhancing production efficiency, driving operational reform to establish new ways of working and, in turn, improving job satisfaction.
- *Comparison of the former production line in October 2022 with the new production line in October 2023.
Improving Working Conditions at Nichirei Logistics Group: Results and Outlook for AGV Introduction
- To help resolve labor shortages caused by the Logistics Industry’s 2024 Problem and reduce the burden on workers, in 2021 Nichirei Logistics Group introduced automated guided vehicles (AGVs) for transporting pallets at Sendai DC, Nichirei Logistics Tohoku Inc. As a result, the shift to on-site tasks that anyone can handle has progressed. Forklift operations that previously required about a year’s experience can now be done by new employees after about one month on the job. Productivity and work efficiency have improved in the area where AGVs have been introduced, with the number of pallets transported per hour increasing by about 70%, and forklift operator person-hours decreasing by about 23%.* Further improvements are expected through continuous data collection and variation control. Going forward, we plan to introduce AGVs at other bases. We aim to shift from operating AGVs as standalone units to linking them with existing equipment. We also plan to conduct demonstration tests aimed at reducing headcount in freezer operations. These initiatives are expected to significantly contribute to improving Nichirei Logistics Group’s operational efficiency and productivity.
- *Comparison of May 29 to June 4, 2023 with June 5 to June 11, 2023. Effectiveness may vary depending on which workflow AGVs are used in.
