Announcement of "LogiOS" AI Management System Concept for Small and Medium-sized Transport Companies, Recruiting First-Term Co-creation Partner Transport Companies to Address the 2024 Problem

Leach Inc., which develops industry-specific AI business OS utilizing generative AI, (Headquarters: Minato-ku, Tokyo; Representative Director: Takuya Tominaga) has formally announced the concept of "LogiOS," an AI management system for small and medium-sized transport companies, and has begun recruiting "first-term co-creation partner transport companies" to participate in specification discussions from the early stages of development.

LogiOS is an integrated AI business platform for small and medium-sized transport companies, integrating order management, AI dispatch optimization, automatic invoice creation, labor management (addressing the 2024 Problem), safety management (digital check-ins/alcohol checks), and profit analysis onto a single cloud AI OS. It primarily targets transport companies with 5 to 50 vehicles, and for sites beyond the reach of large-scale TMS systems costing hundreds of thousands of yen per month, it is being conceptualized with a design policy of "no initial fees, no contract ties, unlimited users."

Details of the concept and applications for co-creation partners can be found on the concept LP (https://logios.leach.co.jp/) released today.

**Background: Structural Transformation Posed by the 2024 Problem to Small and Medium-sized Transport Companies**

The overtime work regulation for truck drivers (960 hours annually), applied from April 2024, known as the "2024 Problem," is forcing a structural transformation in the transport industry. According to estimates by the Ministry of Land, Infrastructure, Transport and Tourism, transport capacity is projected to be 14% short in FY2024 and 34% short in FY2030, meaning conventional logistics operations reliant on driver overtime are no longer viable under legal regulations. "Business structural reform" to maximize transport efficiency within limited driver working hours has become an urgent management issue for the transport industry.

On the other hand, Japan's transport industry has a structure where over 99% of its approximately 63,000 businesses are small and medium-sized enterprises. Dedicated TMS (transport management systems) for large companies cost hundreds of thousands of yen per month, and it is not uncommon for investments, including implementation consulting and operation/maintenance, to exceed 10 million yen annually. As a result, many small and medium-sized transport companies with annual sales of several hundred million yen are in a state where they "want to adopt DX but cannot," remaining stuck with paper, phone, fax, and Excel despite facing legal revisions. To bridge this structural gap, LogiOS is being developed with the concept of "DX that small and medium-sized transport companies can start using today."

**LogiOS's Vision: All Transport Company Operations on a Single AI OS**

LogiOS is an integrated AI management system for small and medium-sized transport companies, designed with the concept of "all transport company operations on a single AI OS." It aims to allow transport companies with 5 to 50 vehicles to switch over "without changing their current operations" by integrating centralized order management from multiple channels such as phone, fax, email, and LINE, AI-driven dispatch optimization, automatic invoice creation from operational records, real-time labor monitoring to comply with the 2024 Problem, and safety management such as alcohol checks and roll calls, all onto a single cloud AI.

While TMS for large companies typically combines 4 to 5 systems such as SaaS, dispatch, attendance, and billing, LogiOS's greatest design feature is treating order reception, dispatch, operation, and billing as a single data flow. It is designed to structurally prevent double entry and data inconsistencies between systems, and with the conceptual basis of "no initial fees, no contract ties, unlimited users," it will jointly refine a pricing structure that small and medium-sized transport companies can easily adopt. Specific pricing structures and licensing scopes will be determined based on discussions with co-creation partner companies and announced at the official release.

**Six Structural Challenges Faced by Small and Medium-sized Transport Companies**

Based on on-site hearings in the transport industry and public statistics, the company has identified the following six representative challenges faced by small and medium-sized transport companies. Priorities and specific measures will be determined through dialogue with first-term co-creation partners.

* **Challenge ① Order Confusion**: Requests from shippers are dispersed across multiple channels such as phone, fax, email, and LINE, and order information is scattered across handwritten notes and whiteboards, leading to frequent order omissions, double bookings, and communication errors. During busy periods, incomplete entries due to inexperienced staff handling phone calls are also common, affecting subsequent dispatch and billing processes. * **Challenge ② Human-dependent Dispatch**: The comprehensive judgment required to optimize vehicles, drivers, loading rates, overtime hours, distance, and time is concentrated in veteran dispatchers. Many small and medium-sized transport companies face the business risk of dispatch operations grinding to a halt the moment one such person takes a day off. * **Challenge ③ Manual Invoice Creation**: Due to numerous variable factors such as fuel surcharges, highway tolls, and waiting time fees, creating one invoice requires 15 to 20 minutes of manual work, and at the end of the month,