Utilizing Innovation to Address Societal Needs

MC has many physically based businesses that require DX-driven solutions. By providing DX functions to these businesses, we will optimize logistics and improve productivity, increase business value, and contribute to the development of the industry as a whole and the realization of vibrant local communities.

By developing cross-industry DX functions that leverage our broad business knowledge and then providing them as services, MC will help to improve the value of industries themselves. Toward this end, we aim to improve the productivity of industry and society as a whole and create sustainable value by building a “cross-industry digital ecosystem” in which industries, companies, local communities and others can organically connect and coexist.

MC Digital is an AI and data science company wholly owned by Mitsubishi Corporation, with the mission of “updating business models by leveraging technology”. MC Digital aims to have a significant impact on global industrial transformation by utilizing cutting-edge technologies, including generative AI, in the wide range of industrial fields in which Mitsubishi Corporation is involved. It is also actively working on new business development, deepening partnerships with international innovation ecosystems, academic institutions, and government agencies. Through these activities, MC Digital contributes to society by providing a wide range of solutions around the world.

Food waste in Japan has been calculated to be 5,700,000 tons (2019), and the scale of this food waste is equivalent to 1.4 times the amount of the WFP's (World Food Programme) world food aid (2020). Additionally, around 54% of Japan’s total food waste is comprised of commercial food waste that is disposed of during the distribution and production process. This is recognized as a key issue to be solved for the food distribution industry.

MC is proceeding with initiatives to reduce food waste using digital technology, including AI. Some of MC’s subsidiaries and affiliates have set a goal of reducing food loss by 50% by 2030 through initiatives such as improving distribution efficiency.

Specifically, MC has begun developing solutions to enable the prediction of demand and automation of ordering at food wholesalers. Through the utilization of AI to calculate appropriate order quantities, in order to not cause shortages, while reducing the stock amount at food wholesalers and then connecting this to actual orders, the “purchasing of the necessary amounts of necessary items” will become possible. Therefore, MC can contribute to the reduction of food waste at food wholesalers. In the demonstration experiment, compared to current manual ordering processes, it was possible to reduce stock volume while also reducing the probability of stock shortages. This solution is anticipated to display sufficient efficacy.

Mitsubishi Shokuhin, which operates a core function in the food distribution business, has completed the introduction of an inventory optimization solution that utilizes AI demand forecasting into all Lawson centers.

Supply chains connecting producers and consumers are made possible through effective combinations of storage and transportation-based logistics capabilities. Japan’s domestic warehousing market is central to those supply chains and worth approximately seven trillion yen. Various negative pressures including labor shortages, dependencies on specific individuals for certain jobs and lease agreements have resulted in inflexible inventory capacities, which has in turn contributed to wasteful, inconsistent and burdensome fulfillment practices throughout numerous industries. Other countries, such as the US and China, are facing similar challenges, which has prompted innovators to develop new business models such as self-driving warehouse robots and schemes that allow users to share vacant warehouse spaces.

Considering that the “Roboware” subscription service allows anyone, regardless of their background or skills, to use robots to easily manage their warehouse facilities, it presents a viable solution to the labor-shortage and overreliance problems mentioned above. “WareX” is a similarly straightforward system that anyone can use to share available warehouse space, thus addressing the problems of limited or excess capacities.

Gaussy will offer customers both of these services, the former (Roboware) of which employs six types of warehouse robots and has already been rolled out in more than 35 facilities across Japan, and the latter (WareX) of which has more than 1,500 facilities (as of June 2024) registered on its nationwide system. Large, medium and small enterprises alike have been taking advantage of “WareX,” as it provides them with an efficient way to lease vacant warehouse spaces on a pay-as-you-go basis.

Driven by its vision to create new opportunities in logistics, Gaussy is committed to developing flexible mechanisms that will adapt to evolving warehousing needs and cargo volumes. All of its partners look forward to offering fulfillment customers with new and unprecedented options for their businesses.

Decarbonization is an urgent issue that requires fast-paced initiatives on a global scale. To this end, MC believes it is important not only to develop completely new decarbonization technologies, but also to innovate at the scale-up stage, moving technologies that have already completed R&D to implementation as quickly as possible.

In order to realize a carbon neutral society, MC is already promoting the development of EX-related businesses such as next-generation energy. In order to complement and further accelerate these initiatives, MC will work to scale-up innovative decarbonization technologies through public-private partnerships.