The Nippon Pallet Pool reduces pallet losses with Asset Management solutions by KYOCERA Communication Systems Co., Ltd. connected to the Sigfox 0G Network
Challenges
NPP needed a solution to help it better utilise pallets, and reduce costs caused by losses, damage, and avoidable backlogs.
Solution
NPP partnered with KCCS to attach IoT-enabled monitoring devices, connected to the 0G Network, to precisely track the location of its pallet asset fleet.
Results
KCCS’ IoT location information management system lets NPP use location-based insights to:
- Decrease waste
- Reduce pallet losses
- Improve pallet return and utilisation rates
- Avoid uneven pallet distribution across its 200 depots
- Optimise transport to minimise CO2 emissions
0G IoT Solution Provider
KYOCERA Communication Systems Co., Ltd. (KCCS) is a subsidiary of KYOCERA Corporation and a provider of ICT, telecommunications engineering, environment and energy engineering and management consulting services.
Customer
Nippon Pallet Pool Co., Ltd. is an eco-logistics company delivering an innovative, integrated “pallet-as-a-service” rental and returns solution supporting fast, convenient, low-cost, distribution across a nationwide network in Japan.
NPP provides a convenient, eco-friendly pallet pool rental and returns service in Japan that helps customers reduce cost and risk when shipping goods. The service lets customers rent specific quantities of pallets for shipping, which NPP delivers to the customer’s location. The customer uses the pallets, then returns them to an NPP depot for maintenance before being made available for rental again.
From April 2024, a law will come into effect limiting truck drivers’ annual overtime to 960 hours, among other reforms that are designed to improve the job’s grueling conditions. However, the announcement sparked fears of a critical shortage of truck drivers that could leave a third of all cargo undelivered.
The problem of lost pallets is a long-standing concern for manufacturers and the logistics industry. Customers generally pay good attention to goods transported on pallets but have little awareness of the need to return pallets promptly or report damages. Additionally, the Japanese logistics industry needs to prepare for the “2024 crisis”.
The introduction of palletisation and integrated palletisation is essential to address these problems and meet rising customer demand for rental pallets.
To expand pallet utilisation, prevent losses, and avoid unnecessary backlogs, it became critical for NPP to implement a reliable solution to monitor the location of its pallets on-demand.
Palletisation is a method whereby cargo is loaded on pallets and transported and unloaded in its original form. It aims to rationalize transport, storage and packaging and is essential for unit load promotion.
A partnership approach to solve a familiar pallet management challenge.
In 2018, NPP set a strategy to introduce an Internet of Things (IoT) solution to remotely monitor and share pallet locations across Japan without manual intervention. NPP partnered with innovative solution provider KYOCERA Communication Systems Co., Ltd. (KCCS) to design and deploy the system. The partnership created a radical result for the age-old problem of pallet tracking.
The solution features
-Robust IoT transmitter devices
-Long-life batteries that last up to 5 years
-Explosion proof structure
-Ensuring premium operation in
fire-sensitive environments.
FukuLOW Measurements:
70mm x 33mm x 20mm
Connecting the devices to traditional network solutions, such as GPS and RFID, added cost, coverage complexity, and difficulties powering the devices.
Instead, KCCS proposed a compelling, cost-effective, location-based monitoring solution using the 0G Network, powered by Sigfox 0G technology, to enable system set-up, network connectivity, device manufacture and installation, and ongoing operation at a low cost. The 0G Network is a global low-power, long-range network enabling low-cost, low-energy device connectivity for Massive IoT.
Daily, NPP’s location information management system shares pallet location data from IoT devices across the 0G Network to a central database. The company uses the location information to create data-driven insights, available via a visual browser-based interface that helps NPP’s team make meaningful decisions that improve its operational effectiveness and pallet utilisation.
The “FukuLOW” solution helps NPP “see” tens of thousands of pallets across Japan.
In Japanese “fukurō” (FukuLOW) means owl. As owls are famous for their precise and powerful eyesight, “FukuLOW” is a fitting name for the pallet asset monitoring solution KCCS built for NPP.
In 2021, the solution was deployed, initially connecting thousands of trackers on pallets to the 0G Network. Today, NPP monitors tens of thousands of pallets with the IoT-enabled “FukuLOW” solution and plans to connect one million pallets over time.
NPP is confident the introduction of “FukuLOW” will significantly reduce the number of lost and damaged pallets NPP also expects to see an increase in pallet utilisation turnover by minimising pallet abandonment, retention, and avoiding uneven distribution.
The latest revolution for the logistics industry is already here.
Building on the success of its “FukuLOW” solution, NPP plans to expand asset monitoring to other logistics items which are in high demand, including
- LPG cylinders
- Steel boxes
- Foldable plastic containers
- Returnable plastic boxes
NPP is also committed to offering the “FukuLOW” solution as a subscription service to businesses looking to improve asset utilisation in supply and cold chains.
KCCS recommended the 0G Network for connectivity because it is low-cost, readily available, and almost instantly links to devices. Each IoT device is pre-configured to enable rapid deployment, certified explosion-proof, requires minimal maintenance, and powered by a battery that lasts over five years. The cost minimisation, reliable connectivity, and “set and forget” aspect of the solution help strengthening the viability of each use case.
Kenji Sugiyama, Sales Manager, Wireless Solutions Division, KYOCERA Communication Systems Co., Ltd. (KCCS)
Benefits of Logistics Customers include:
- Reduced losses, retention, and damage
to logistics equipment
- Eliminating unnecessary bulk shipments and transshipments
- Improved turnover of logistics
Additionally, the “FukuLOW” solution helps logistics companies aligned with the United Nations Sustainable Development Goal to achieve a better and more sustainable world by 2030.
Specifically, improving asset utilisation through IoT-enabled monitoring helps reduce the over-production of logistics equipment, reduce wasteful turnover, and minimise unnecessary transportation of goods, which in turn reduces operational cost and C02 emissions.
The humble wooden pallet once revolutionised logistics in the 20th century, enabling the efficient, secure shipment of large volumes of items. Now, IoT-enabled asset monitoring of pallets connected to the low-cost 0G Network is revolutionising the industry again. Simple, reliable, location-based insights add deeper meaning to operational decisions for NPP that let the company reduce pallet replacement and repair costs, improve asset utilisation, optimise transport routes, ensure perishables are shipped appropriately, and strengthen their customers’ experiences.
Alexis Susset, Group Chief Technology Officer, UnaBiz