Hitachi Launches "Hitachi Digital Solution for Logistics / Insight and Execution Agent" for Chief Logistics Officers (CLOs)

Hitachi, Ltd. will launch "Hitachi Digital Solution for Logistics (HDSL) / Insight and Execution Agent" (hereinafter, "this solution"), a solution for Chief Logistics Officers (CLOs*1) that centralizes logistics data to support the analysis of management challenges and compliance with laws, starting in April 2026. As improving logistics cost structures and reducing environmental impact become critical management issues, the revised Logistics Efficiency Act*2, effective from April 2026, will mandate companies of a certain size to appoint and report CLOs, who will oversee their logistics challenges from a management perspective and be responsible for building sustainable supply chains and improving efficiency. This solution integrates logistics data, which is often fragmented across operations and locations and stored in various formats, to facilitate current situation assessment by providing a platform that can oversee the entire supply chain, supporting everything from KPI (Key Performance Indicator) visualization to analysis, policy planning, and execution adjustment.

In April 2026, as the first phase, Hitachi will begin offering a function to visualize KPIs such as logistics costs, as required by the revised Logistics Efficiency Act. Specifically, it will visualize key management KPIs such as loading efficiency*3 and waiting/unloading times on a dashboard, and issue alerts when deviations from standard values are detected. This will prompt users to analyze causes and take action, contributing to legal compliance and improved productivity in logistics operations management. In the future, it will evolve into an AI agent that supports analysis, policy planning, and execution adjustment, expanding as part of the HMAX Industry lineup, aiming for innovation in both management and on-site operations.

Hitachi positions itself as "Customer Zero," advancing initiatives to first implement its own advanced technologies and solutions, and provides value to customers based on the knowledge gained through solving these challenges. In this case, PoCs (Proof of Concept) for this solution have been conducted at Hitachi Global Life Solutions, Inc. (hereinafter, Hitachi GLS), Hitachi Building Systems Co., Ltd., and Hitachi High-Tech Corporation. Based on the logistics characteristics and operational realities of each company, insights were gained on which logistics KPIs should be used as management indicators, what conditions should trigger alerts, and what improvement measures should be considered to practically address the revised Logistics Efficiency Act.

As a specific example, in co-creation with Hitachi GLS, even when vehicle data was unavailable and calculating the loading rate was difficult, this solution was used to visualize volume trends by delivery destination from shipping performance data. This enabled the identification of frequent small-lot deliveries and seasonal fluctuations that could lead to a decrease in loading rates, which in turn led to the consideration of improvement measures such as reviewing delivery frequencies and routes. In the first phase, these insights are reflected in the design of a dashboard that can visualize and manage necessary logistics KPIs and alert conditions.

Hitachi is committed to advancing and optimizing overall logistics using advanced digital technologies. For logistics centers, Hitachi possesses extensive experience and technical capabilities in construction and highly efficient operation, ranging from building design to robotics SI, the transport planning optimization AI engine "LogiRiSM," WCS*4, and WMS*5. In the transportation and delivery domain, various functions of "HDSL" contribute to improving efficiency, safety, and reducing logistics costs.

In Hitachi's Connected Industries (CI) sector, we are focusing on "Integrated Industry Automation," which horizontally deploys "HMAX Industry," a next-generation solution group for industrial fields that combines domain knowledge and advanced AI with data from a rich installed base of products (digitized assets), to growth industries. Through the provision of "HMAX Industry," which embodies Lumada 3.0*6, we aim to innovate the workplaces of frontline workers.

*1 Chief Logistics Officer (CLO): An executive-level manager responsible for overseeing all logistics operations within a company, driving logistics efficiency and supply chain optimization from a management perspective. *2 Revised Logistics Efficiency Act: A system that obligates shippers and logistics businesses to strive for improvements such as increased loading efficiency and reduced waiting/unloading times, and mandates the appointment of a CLO for companies above a certain size. *3 Loading efficiency: An indicator that evaluates overall vehicle utilization efficiency for transportation by multiplying the loading rate and the actual vehicle operation rate. The loading rate refers to the degree of loading in sections where a truck is running with cargo, and the actual vehicle operation rate refers to the proportion of actual running in the total operation. *4 WCS (Warehouse Control System): A system that receives instructions from a higher-level Warehouse Management System (WMS) and controls equipment and facilities such as conveyors, automated warehouses, and robots in real-time. *5 WMS (Warehouse Management System): A system that centrally manages information such as inbound/outbound management, inventory management, and work processes in warehouses and logistics centers to improve operational efficiency and quality. *6 Lumada 3.0: An evolution of Lumada by leveraging AI enhanced with Hitachi's domain knowledge. Lumada is Hitachi's collective term for solutions, services, and technologies that utilize advanced digital technologies to create value from customer data and accelerate digital innovation.

### Features of "HDSL / Insight and Execution Agent"

Traditionally, logistics data has been managed and stored in a fragmented manner across different systems or on paper for each location or department. This created challenges where analyzing company-wide figures required manual data collection and processing by staff, consuming enormous time and effort, and making real-time situation assessment and rapid decision-making difficult.

The functions provided in this solution automatically collect and standardize fragmented data using system connections and data converters*7, then integrate and centrally manage it. This enables the integrated visualization and management of KPIs essential for complying with the due diligence obligations required of companies by the revised Logistics Efficiency Act, such as improved loading efficiency and reduced waiting/unloading times, as well as management KPIs that should be understood as a result of these efforts, such as logistics costs and CO2 emissions. Furthermore, when the system detects deviations from budgets, target values, or standard times, it issues alerts on the screen, notifying the need for action and prompting quick and detailed analysis of problem areas.

This solution supports data-driven inter-departmental collaboration and rapid decision-making, contributing to reliable compliance with legal revisions and the construction of a sustainable and resilient logistics network.

*7 Data converter: A function or software that converts data formats when exchanging data between different systems.

### Background

In recent years, the application of overtime work regulations for truck drivers has led to a problem of declining overall transportation capacity in society. Furthermore, structural issues such as an increase in frequent small-lot deliveries and prolonged waiting/unloading operations have compounded the problem, making it difficult to maintain existing logistics systems.

Against this background, the revised Logistics Efficiency Act clearly positions the maintenance of logistics networks as a "management issue for shipper companies." Moreover, from April 2026, companies of a certain size will be mandated to appoint executive-level CLOs, strongly requiring a shift from conventional logistics department-specific operational improvements to a management-oriented optimization of the entire supply chain, involving manufacturing/sales departments within the company and external partners in a fundamental review of business practices and delivery conditions.

However, high practical barriers have become apparent, such as "lack of data (fragmentation) for overseeing the entire logistics network and managing KPIs," "difficulty in determining where to start with improvement challenges," and "burden of consensus building and coordination with various stakeholders, including internal manufacturing/sales departments and external partners."

Related Sites About Hitachi Digital Solution for Logistics https://www.hitachi.co.jp/products/it/industry/solution/hdsl/

Trademark Notice Integrated Industry Automation is a registered trademark of Hitachi, Ltd. LogiRiSM is a registered trademark of Hitachi, Ltd. Other company names and product names mentioned are trademarks or registered trademarks of their respective companies.

About Hitachi, Ltd. Hitachi contributes to the realization of a Harmonized Society, where environment, happiness, and economic growth are in harmony, through its Social Innovation Business (SIB) leveraging IT, OT (Operational Technology), and products. Operating globally across four sectors—Digital Systems & Services, Energy, Mobility, and Connected Industries—along with a strategic SIB business unit for new growth, Hitachi creates value from data with Lumada at its core to solve challenges for customers and society. For fiscal year 2024 (ending March 2025), consolidated revenue was 9,783.3 billion yen, with 618 consolidated subsidiaries and approximately 280,000 employees worldwide as of March 2025. Visit Hitachi's website (https://www.hitachi.co.jp/).

Contact Information Hitachi, Ltd. Inquiries: Solutions for Manufacturing and Distribution Industries: Hitachi

Image caption: (From left) Example dashboard of "Hitachi Digital Solution for Logistics / Insight and Execution Agent", overall view