Nestled within the industrial heart of Sagamihara, Kanagawa Prefecture, lies a facility that showcases the transformative power of logistics in the face of demographic challenges. The Sagamihara Technology Center, marked by its sleek entrance, is a portal into a world where traditional logistics practices are being redefined.
According to a study by independent think tank Recruit Works Institute, Japan’s labor supply is expected to shrink by about 12% between 2022 and 2040, even as demand for workers remains steady. Against this background, the transition from manual labor to digital automation has not only made warehouses safer by reducing human involvement in hazardous tasks but also significantly lowered operating expenses.
The Quest for Zero Error Logistics
Jotaro Matsuno, Managing Executive Officer of ORIX Rentec, shares the story of how the logistics journey began. "The history of Rentec's foray into logistics really took off with the establishment of the Tokyo Technology Center," Matsuno remarks. Rentec's journey started in 1976, amidst a surge in product development utilizing integrated circuits. Rapid technological advancements drove increased demand for short-term rental of measurement instruments, prompting the establishment of Rentec. "It was a time of great innovation, and the need for flexible access to advanced measurement tools was clear," Matsuno recalls. Three years later, Rentec became an industry pioneer by offering rental services for logic development equipment. By 1981, Rentec expanded its business to include computer rentals, and in 1988, it ventured into calibration outsourcing, marking a strategic evolution beyond its traditional rental framework.
ORIX Rentec established the Tokyo Technology Center in 1987, specializing in the rental of computers and various ICT equipment and the Kobe Technology Center followed in 1996. In April 2023, the Tokyo center transitioned the ICT equipment function to Sagamihara and doubled its storage capacity to an impressive 250,000 units. "This move to Sagamihara was a significant milestone. Doubling our storage capacity means we can meet growing demand more effectively," Matsuno highlights.
At the heart of the Sagamihara Technology Center's operation is the quest to eliminate errors through the innovative use of Norway's ‘AutoStore’ automated warehouse system, which can store up to 140,000 products, and the integration of more traditional ‘Flat Storage’ shelves, capable of holding 110,000 products. This strategic combination allows for rapid retrieval and preparation of all kinds of rental orders within 24 hours, ensuring swift and seamless shipping. Moreover, introducing the automated warehouse has reduced human errors in dispatching and storing items to a near-imperceptible level.
Reducing Steps and Overtime While Increasing Efficiency
Implementing automated and traditional processes has not only prevented mishaps but also significantly reduced the labor required for on-site logistics operations. The average steps taken per day by employees have plummeted by one third, from 15,000 to 10,000, and even during last year's record making PC shipment orders, the work was completed without the need for overtime.
The Future of Automated Storage and Delivery
Currently, the use of 54 AutoStore machines at the Sagamihara Technology center accumulates invaluable robot technology know-how for the future. ORIX Rentec expects that intelligently automated processes will yield valuable post-sales data, offering insights into customer needs and asset longevity. This type of post-sales data, including shipping history and the history of necessary repairs, is unique and rarely available to manufacturing companies. By collecting data on the deterioration of rental products, Rentec can proactively prevent issues, enhancing their service and product reliability. This data will guide future business strategies and proactively resolve problems. With looming driver shortages and a push for more convenient delivery methods, the center also plans to shift towards environmentally conscious delivery and the use of durable, appropriately sized packaging materials.
Adapting to the evolving logistics industry, ORIX Rentec is engaging in a delicate dance, balancing the complexities of traditional storage systems with digitalization and robotics, in preparation for a more automated future.
