Hello everyone. This is Hide Usui from Tokyo Electron Device America Inc.
In the previous issue of the Logistics DX Outlook, I introduced you to what logistics DX is and why it is necessary to promote logistics DX. I also have mentioned that logistics DX can improve the working style of workers involved in logistics, which may bring various benefits to consumers as well.
In this issue, I would like to look at what kind of DX is possible in the field of logistics, using paperless as an example.
Is the Opposite of Paper Digitalization?
Smartphones are probably the most indispensable item in our modern lives.
Whether or not we are completely proficient in using these smartphones, it is said that more than 80% of all generations are now using smartphones. As you know, smartphones are becoming indispensable in our daily lives because they can be used for basically everything, such as browsing the Internet, managing schedules, taking notes on daily events, taking photos of your family, and so on.
As all information is becoming increasingly digitalized, there are probably fewer and fewer opportunities to carry around a pen and paper. Recently, I think more people, including myself, are using emails and social apps instead of sending Holiday greeting cards. I miss the days when we used to prepare paper Holiday cards and handwrite them one by one, but now I think about it, it was a lot of work. (Personally, I prefer paper Holiday cards because of their warmth ^^)
Basically, it can be said that as digitization progresses, so does the shift to paperless.
In Japan, DX is also a national policy, and in 2022, there was a move in the Diet to make the minutes of proceedings and the official gazette available on the Internet, in other words, to make them paperless. The cost reduction effect is expected to be about US$750M per year. It is surprising that eliminating paper alone can reduce expenses this much.
So, what is the impact of using paper in the logistics field, where DX is said to be slow in progress?
For example, printing costs.
At logistics sites, paper may be used to manage goods and boxes. In a warehouse, a common use case is to issue a physical receipt for incoming cargo, which is then used for inventory control at the site. Assuming that 200 sheets are printed per day, or 4,400 sheets per month for 22 working days, and that the cost of monochrome printing is approximately 3 cents per sheet, the monthly printing cost would be US$132 plus the cost of paper, or about US$1,600 per year (plus operating costs for consumables and printer rental, etc.).
It may vary depending on the number of sheets printed and the type of paper, but in some cases, this alone could lead to significant cost savings by going paperless.
The use of paper also affects the labor and administrative costs of those who perform the paperwork. According to one survey, logistics companies spend approximately two hours per day on paper slips.
(Reference: PR TIMES “Will paper slips in logistics follow stamps and faxes? Estimated Economic Effects of Digitization of Paper Slips 353.3B Yen per Year“
For example, if 10 workers in a company spend 2 hours working on paper, the daily cost of paper-based work is 20,000 yen (assuming an hourly wage of 1,000 yen), or 440,000 yen per month, or 5,280,000 yen per year.
If the paperless system cuts this work time in half, the company may be able to reduce costs enough to hire one new graduate employee.
From the perspective of the SDGs, going paperless is the first step toward achieving this goal and will lead to increased corporate value.
In reality, each company’s paper operation should be different, so why not find out how much paper costs your company per month? It might be a surprisingly large amount of money that cannot be ignored, and improvement through DX may be an urgent necessity.
How to Paperless
Tokyo Electron Device America, Inc. offers HAKO-FLO EZ report, which enables easy one-touch measurement and damage report creation, and HAKO-FLO TAG, which digitizes the TAG cards, as a way to help customers go paperless.
HAKO-FLO EZ report is an effective solution for the following issues:
- Cargo size is measured with a measuring tape
- Time-consuming reporting when damaged cargo occurs
- Want to digitize reports for efficient storage and sharing
Reference: EZ-report Introduction video
The HAKO-FLO TAG is also an effective solution for the following issues:
- Torn paper present slips or written text is difficult to read
- Cumbersome to manage in paper form
- Lack of real-time and information sharing
If you have any of the above issues, please contact us.