Meet the Robot Keeping the Japanese Logistics Industry Moving

The logistics industry has reached a major turning point. Driver shortage and overloaded schedules have turned operational efficiency and safety into a daily struggle. To help ease the burden placed on logistics companies, Tokio Marine & Nichido Fire Insurance Co. Ltd. (TMNF) and Tokio Marine dR Co., Ltd. (TdR) have been working to provide a support framework by strengthening their accident prevention solutions, particularly when it comes to safe driving and driver health management.

One example of the solutions is the redesign of operations management at Nippon Express. The introduction of AI robots equipped with talk, watch and listen functions helped the company become more adaptable to a constantly changing legal and operational landscape.

Tokio Marine Group’s vision is to continue to innovate and find new ways to complement our insurance offering with ‘insurance + α’ solutions, in order to inspire confidence in our customers and accelerate progress toward a brighter tomorrow.

The entirety of our economy, from the clothes we wear to the houses we live in to the food we eat, is underpinned by logistics. The industry is a form of social infrastructure, and like all infrastructure, carries with it myriad risks, from worker injury to goods damaged during transport.
In recent years, however, the challenges faced by logistics companies have become more severe. The operational environment has grown increasingly strenuous, while companies have to content with social issues like an aging driver population, labor shortages, long working hours, and administrative tasks that can only be carried out by select individuals.

One of the initiatives addresses the practical challenges faced by Nippon Express for tasks such as roll calls (driver check-ins) and safety training. TMNF and TdR both visited the front lines and conducted numerous interviews. As a result, they were able to implement a new project: the AI Robot for Transport Management Support.

The AI Robot for Transport Management Support developed by TdR is a post-transport automatic roll call device certified by Ministry of Land, Infrastructure, Transport and Tourism (MLIT), able to talk to, observe, and listen to truck drivers. The robot can also verify the driver’s identity using AI facial recognition, as well as assess health status based on body temperature and blood pressure data. Alcohol testing and a driver’s license scanning tool are also available.

Since roll call data before and after every shift can be collected and centrally managed, the robot has greatly improved accuracy and efficiency compared to prior methods, namely traditional phone calls and handwritten records. Data is also linked across locations, thereby becoming easier to share between managers from multiple locations.

In 2023, MLIT regulatory changes allowed for the use of machines to replace in-person roll calls with remote and automated post-shift roll calls. The shift, however, was not as simple as saying, “Regulations were relaxed, so we can now switch over to robots.” Multiple issues immediately emerged from the front lines, necessitating reviews of how work was conducted and how records were kept.

Through its existing network, TMNF and TdR were quick to identify a discrepancy between the shifting regulatory framework and the reality on the front lines. They carefully listened to the experiences Nippon Express had with regulatory compliance, and as a corporate risk management support partner, collaborated with the company to analyze how regulatory changes could be practically implemented without causing excessive burden.

The end result was a proposal to redesign transport management tasks using roll call robots. The collaborative exchange leading up to the proposal, rather than simply coming in and introducing a new tool, is what made the solution resonate so strongly with Nippon Express users.

The successful roll out at Nippon Express indicated potential for scalability across the logistics industry. The close collaboration with front line users and process of incremental improvement helped cement a positive reputation for the solution, and progressive implementation at other transportation companies is already underway. Furthermore, heading into fiscal 2025, TdR has begun rolling out new functions, including the automation of pre-shift roll calls and API integration with other business systems.

The initiative is also by no means limited to large corporations. In fact, for small and medium-sized transport operators, which account for about 99% of the industry, the challenges of securing drivers, establishing training systems, and legal compliance are even more serious. This solution has the benefit of being designed for easy implementation, even at the front lines of operations with limited human resources.

With the increasing speed of societal and regulatory change, companies are facing more pressure than ever before to stay agile and keep an eye on the future. For insurance, this means not only to prepare for disasters, but increasingly to ask the question, “What can we do to avoid this risk in the first place?”

The roll call robot initiative is one example where Tokio Marine Group companies saw an opportunity at the intersection of front-line requirements, technological development and regulatory change. Through a collaborative process, TMNF and TdR were able to support their clients, confront a difficult changing environment, and come out with a new solution beneficial to all parties.

This approach is emblematic to how, at Tokio Marine Group, we envision our role in the future of society: a more holistic way of delivering on our purpose and being there for our customers and society in their times of need.