Support for Optimizing Logistics Networks

Company A

SIGMAXYZ supported Company A, a trading company, in conceptualizing and executing a logistics network optimization project.

Company A was facing issues of rising logistics costs and inefficient transportation and delivery due to each group company arranging their own logistics separately. Moreover, due to a shortage of drivers caused by the declining birthrate and aging population, rising logistics costs, and an increasingly complex supply chain, the current individually-optimized operations risk being unable to transport goods in the future, making it urgent to optimize the logistics network across the entire group.

SIGMAXYZ developed a plan to achieve overall optimization by consolidating the logistics demand within Company A's group and enabling them to make centralized arrangements with a logistics company, and proposed the establishment of a joint venture (JV) to handle integrated logistics management. SIGMAXYZ introduced a proven 4PL(*) provider to Company A from its logistics partner network. After conducting a proof of concept (PoC), SIGMAXYZ established a JV with Company A. This JV aims to improve the efficiency of logistics operations and promote logistics  digitalization by consolidating and managing Company A's logistics demand in an integrated manner. Furthermore, SIGMAXYZ is also working to develop a logistics service that will be sold to other companies by utilizing its integrated logistics infrastructure. Company A aims to accumulate logistics knowledge in-house and solve issues in the logistics industry through the expansion of joint logistics between companies, while also establishing new revenue sources and improving its market competitiveness.

*4PL: A form of logistics that comprehensively manages and optimizes a company's entire supply chain. Rather than actually carrying out logistics operations, it is responsible for strategic design and management, and oversees logistics providers, including 3PL (third-party logistics).