Editor's note: Today's blog features Yoshihiro Hatano of Yamato Transport and Shigeaki Namiki of Accenture. They explore how Yamato Transport has implemented Google Maps Platform, including Route Optimization API, Google Cloud, and Accenture Google Logistics Optimization Platform (AGLOP) to meet diversifying needs and increasing social issues while streamlining operations and achieving work style reform.

"At Yamato Transport, we have developed a variety of services, including TA-Q-BIN (parcel delivery service), and have provided new value to our customers' daily lives and local communities while pursuing greater efficiency in the 'last-mile' delivery," says Yoshihiro Hatano, Executive Officer responsible for the Transport and Delivery Operation System of Yamato Transport, explaining the foundation of the company’s success. "However, with the widespread use of the internet, customers' consumption behavior has changed, and B2C packages, especially e-commerce packages, have increased. The expansion of B2C packages has changed the balance of transport between regions, and we have also shifted toward taking more orders at night."

Responding to diversifying needs and social issues

Hatano also points out that addressing the labor shortage—which is a concern due to the declining birthrate, aging population, and the “2024 Problem”¹—as well as responding to climate change, has become an urgent task.

“To respond to concerns about labor shortages, it is important to create a work environment where drivers can feel really satisfied with their jobs, while leveling out workloads and optimizing delivery processes,” says Hatano. “At the same time, to meet the changing needs in both quality and quantity, as well as to address social challenges, it is required to dynamically transform the operational structure in all areas, including package delivery, sorting, and on-site operations. Business reform is vital for building a sustainable growth model.”

Leveraging geospatial technology to address change with Google Maps Platform and Accenture’s logistics platform

To adjust to these drastic changes, the Yamato Group has announced its mid-term management plan, "Sustainability Transformation 2030~1st Stage~", in 2024. One of the pillars of this plan is to pursue innovation using digital technology.

“Since starting TA-Q-BIN, we have implemented digital technology to improve customer convenience while doing the same for drivers' work but there are still many tasks that rely on the experience and judgment of individual drivers,” Hatano says. “Promoting digital transformation and streamlining operations in delivery will further enhance our company's advantages and provide higher quality services to our customers.”

For this purpose, they implemented solutions offered by Google Maps Platform, including Route Optimization API (formerly Cloud Fleet Routing API), Google Cloud, and Accenture Google Logistics Optimization Platform (AGLOP).

The Route Optimization API uses the Google Maps data and Google Cloud AI technology to automatically determine the areas each driver covers, the volume of packages allocated, the optimal delivery route, etc., based on factors such as the total number of packages and the truck’s operating time.

AGLOP is a platform developed by Accenture for the logistics industry that integrates Google Maps Platform and Google Cloud technology. It also uses AlloyDB, a fully managed database service that excels in scalability, processing capacity, operability, and can handle the large amount of delivery data expected to increase in the future. Hatano says it was quite a natural choice. "Google Maps Platform and AGLOP fully use a vast amount of data and we have achieved specific and detailed data over the years. By integrating the two data sets, we could fully leverage both.”

Global and agile development focusing on delivery site

The development started in 2023 after a six-month review. With Yamato Transport at the core, Accenture's domestic and international staff and the Google Maps Platform's four global teams formed the task team. 

“As this project works on the very foundation of our business system, we must communicate directly with the Google Maps Platform development team,” Hatano explains. “That was one of the reasons we chose their partner Accenture to join us. We focus on agile development and feedback from drivers. Team members from overseas regularly ride in the delivery trucks to hear the drivers’ opinions, and we also include drivers in the project. We want to give drivers a sense of unity as a team, a feeling that their opinions are being reflected, and to share the experience of success in solving issues.”

Shigeaki Namiki, Managing Director, Technology Consulting Division of Accenture, details the development process from a technical perspective.

“The key is to integrate the drivers’ senses and experience with the logic of the Route Optimization API, thereby building a system that drivers can use naturally.” Namiki says. “We face challenges when handling a problem that cannot be solved just by collecting data. If it is not clear why the system deliberately chooses a certain route or a delivery order, the whole team works on verifying the underlying algorithm to see priorities the system sets.”

Further development and potential of generative AI

The company began implementing this new system at select delivery locations in 2024. “We have received many comments from drivers on the frontline that they can now flexibly optimize the workloads and the delivery routes,” Hatano says. “Of course, we are still building the fundamental framework. As we expand the area to cover, we will face other issues. However, we have already started using the system in some areas and under certain conditions. We plan to roll out in stages and introduce it nationwide by the end of FY2026.”

Namiki is also formulating a new development plan to leverage the potential of AI.

“We are also looking to increase the potential of the platform itself. For example, if we utilize generative AI, it should be possible to provide real-time guidance based on drive recorder images and video, and to navigate the driver by interactive voice,” he says. “We recognize that implementing these functions would be extremely useful, not only to improve delivery efficiency, but also to ensure driver safety.”

Fulfilling great expectations from the whole of Japan 

This project also tries to solve the social issues facing Japan in the field of logistics.

“We aim to create value and build a prosperous society by staying close to individual customers and local communities through doing our business of delivering packages,” Hatano explains. “At the same time, we have many corporate clients as well. This means they entrust us with the core of their business, and we strongly feel their great expectations for our projects. I think Google Maps and Accenture feel the same way. This project is still in its early stage, but the whole team shares the same philosophy and vision, and we are determined to continue this reform to fulfill our social mission, too.”

¹ The "Workplace Reform Bill" was enacted in April 2024, imposing a cap on drivers' overtime hours.