The Physical Internet Center (JPIC) held its second CLO Council meeting in Tokyo on December 12th. Approximately 100 people, including shippers, transportation companies, and warehousing operators, attended the meeting to clarify the role of CLOs (Chief Logistics Officers) for specific shippers, who will be required to register from April next year. The meeting also included explanations of a series of legal revisions, such as the two laws for optimizing trucking and improving logistics efficiency.
In the panel discussion, Mitsubishi Chemical and Godiva Japan represented the shippers, Nonoichi Transport & Engineering, headquartered in Kanazawa City, Ishikawa Prefecture, represented the transportation company, and Team Solution, which is involved in IT development and human resource development, represented the warehousing industry. They engaged in a lively exchange of opinions from their respective perspectives on "how to leverage legal reforms for corporate growth."
<Scenes from the 2nd CLO Council Meeting>
<JPIC Chairman Mori>
At the beginning of the event, JPIC Chairman Takayuki Mori gave an opening address. He explained JPIC's vision, stating, "As a partner of CLO, we position logistics companies and service providers as LPDs (Long-Term Distributors), and we envision realizing the physical internet through a network in which they collaborate, thereby connecting legal reforms to corporate growth."
Daichi Tsutsumi of the Freight Distribution Business Division of the Ministry of Land, Infrastructure, Transport and Tourism explained four key points of the two laws for optimizing trucking: "a system of renewing business licenses every five years," "restrictions on freight rates and charges below appropriate costs," "restrictions on the number of consignment orders," and "enforcement against shippers, etc., involved in illegal 'white trucks' (unlicensed trucks)." Regarding appropriate costs, he explained that "the Minister of Land, Infrastructure, Transport and Tourism will announce them, and the standard freight rates of the past will be abolished. This is an initiative that has been raised one gear." He also indicated a policy of providing corrective guidance to shippers, etc., who are the cause of illegal "white trucks," in cooperation with truck and logistics inspectors.
Kazuki Arai of the Logistics Planning Office, Commerce and Service Group, Ministry of Economy, Trade and Industry, gave a presentation titled "What is Required of Shippers," explaining the regulatory measures and judgment criteria resulting from the legal revisions. He then confirmed that the appointment of a CLO "will be regulated not only on the outgoing side but also on the receiving side and procurement." Regarding the role of a CLO, he said, "Internally, it is logistics optimization, and externally, it is diplomacy. We also plan to create a collection of best practices. I think the specific duties will vary from company to company, but I hope that efforts will progress beyond the boundaries of individual companies."
In the subsequent panel discussion, shippers and partner businesses (LPDs) took the stage to exchange opinions on "What all companies involved in logistics should do to understand the legal revisions and turn them into opportunities for business growth."
<Representing the shippers, Mr. Kusumoto, General Manager of Logistics at Mitsubishi Chemical (center), and Mr. Kajiwara, Deputy General Manager of Supply Chain Department at Godiva Japan (right), took the stage.>
Tadashi Kusumoto, General Manager of Logistics at Mitsubishi Chemical, took up his position in the logistics department in April of this year and said his perspective has changed, realizing that "for manufacturers, it's not about making things, but about getting them delivered (transported)." He stated his belief that "it's strange that logistics had been overlooked until now. We need to work together with suppliers, factories, and customers in logistics." He added that the revisions to various laws will support this, and expressed his hope that "the network of CLOs and LPDs will expand, and that this will provide an opportunity to openly discuss actual problems."
Another representative from a shipper company, Hirofumi Kajiwara, Deputy General Manager of the Supply Chain Department at Godiva Japan, introduced initiatives to address the legal revisions, such as stabilizing vehicle arrangements through forecasts of outgoing cargo volume, joint delivery to directly managed stores, and the introduction of a berth reservation system for 3PL warehouse companies and transportation outsourcing companies. On the other hand, he also mentioned challenges such as pallet standardization and seasonal fluctuations, stating, "The key lies in understanding what is happening on the ground (physically). It is important for executives to absorb this information and standardize the business."
<From the logistics side: Mr. Yoshida, President of Nonoichi Transport & Engineering (left), and Mr. Horihata, President of Team Solution>
What is required of logistics operators? "First, cost reduction, and second, the ability to propose solutions," says Akira Yoshida, president of Nonoichi Transport Machinery. He introduced his company's initiatives, such as reducing working hours through relay transport and wide-area cooperation for "metal delivery" transporting long materials and steel, and stated his belief that "there are things that can be achieved by collaborating" in the logistics industry, which is dominated by small and medium-sized enterprises. The key to this is the connections with people that are created by "meeting and drinking together for no reason." "There are structural challenges in order to respond to legal revisions and digitalization, but we will all form one team and take on the challenges," he said, and he is trying to find a way forward through communication and "collaboration," including the establishment of a CLO (Chief Logistics Officer).
Team Solution's President, Hiroshige Horihata, also expressed his expectations, saying, "We envision warehouse companies, which are the hubs of logistics, utilizing information in a sophisticated way to connect shippers, customers, and transportation companies. However, the current situation is that information and systems are not standardized. If information can be shared by installing CLO, it will be a groundbreaking development."
The CLO Council is scheduled to hold its third meeting on March 13, 2026, to further deepen discussions toward the establishment of the CLO in April and to increase momentum for collaboration in both digital and physical aspects toward building sustainable logistics.
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