Mitsubishi and NTT partners for Blockchain DX Solutions
Japan’s largest entity Mitsubishi Corporation and Nippon Telegraph and Telecom Corporation have formed a joint venture, Industry One. The new company will launch this year and its purpose is to explore cross-industry digital transformation solutions.
The companies have already invested $8.3 million in the venture and Mitsubishi owns 51% of the company and the rest is owned by NTT. The initiative will offer digital transformation solutions to other companies.
Industry One is already working on a project to support DX in the food distribution sector. Along with NTT Data, NTT’s tech subsidiary, the joint venture will work on digitizing and upgrading stock management, using blockchain technology.
The purpose is to reduce inventory levels. However, when stock levels decline, this results in product shortage, and the solution aims to allow a lower rate of product shortage.
It is expected that infrastructure will link the data in the distribution supply chain. The data is related to retail, wholesale, and manufacturers’ inventories.
Across several distribution centers, there is a proof of concept that used artificial intelligence to cover 10,000 products. The results found that there was a reduction in inventories by 30% and as much as 40%. With the trial’s success, the solution will launch across Japan’s Lawson distribution centers in the coming months.
Lawson is a supply chain of convenience stores and a Mitsubishi subsidiary, its distribution centers are operated by Mitsubishi Shokuhin. Shokuhin is the wholesaler of processed foods.
Just like other growing economies, Japan has a serious food waste problem.
Did you know according to the Ministry of Environment, over 19 million tons of food is thrown every year? And from those, 9 million foods are thrown out even before the expiration date.
Apart from being an environmental concern, businesses have to face losses as well when the stock goes to waste. And that is where Industry One’s solution comes in place. The solution has a strong capability to shift how food inventory is managed.
Mitsubishi Shokuhin’s President says that not only does it promise to raise efficiency, but it also addresses the problems that are faced by customers, and optimizes the food distribution industry. It contributes to the sustainable development of regional communities.
Later in this year, other proof of concept will be escorted using blockchain and other technologies to address food waste.
Apart from this, Mitsubishi has formed three other business alliances with Toshiba Tec, Fujitsu, and LaKeel so that Japan can develop DX services. Toshiba Tec offers retail solutions that generate statistical food sales data that Mitsubishi will use to build demand prediction.