Supply Chain Innovation in Japan: Addressing Issues and Driving DX in the Logistics Industry

The Japanese logistics industry is facing growing challenges, such as the labor shortage and enforcement of the “Work Style Reform Act,” making it difficult to sustain traditional domestic supply chains. In particular, the trucking industry, or the land transportation sector, has been subject to restrictions on overtime work since April 2024, leading to the so-called “2024 problem.” Trucking companies (including pickup truck companies) are struggling to find a middle ground between work style reform and the severe shortage of truck drivers amid the increase in cargo. To address such challenges as well as to streamline logistics operations and achieve operational reform, the Japanese government set up the “Ministerial Conference on Innovation in Logistics in Japan” to hold discussions among relevant parties in both the public and private sectors. The group consists of members representing governmental agencies, various industry groups, and logistics companies (e.g., trucking companies). This study first clarifies the definitions and relationships among the terms “information technology (IT),” “information and communication technology (ICT),” “digital transformation (DX),” “logistics information platform (LIP),” and “trade information platform (TIP).” We will then discuss the current state and challenges of the logistics industry, which is an important component of Japan’s supply chain. This paper will also look closely at LIPs that aim to bring about innovation, such as optimization, enhanced efficiency, visualization, and improved productivity of logistics operations.