■Logizard 4391's Medium- to Long-Term Growth Strategy

2. Specific trends and response policies

(1) WMS needs spreading to BtoB

Capturing the growing demand for OMO marketing spreading among BtoB companies, we will promote the acquisition of new BtoB companies by searching for and implementing functions unique to BtoB required in each work flow, such as allocation methods, packing statements, luggage tags, SCM labels, serial shipping, traceability, etc., and responding to needs peculiar to BtoB companies. The reason for focusing on acquiring new BtoB companies is that in addition to the fact that current inquiries are booming, competition in the existing BtoC market is also intensifying. While securing market share in the BtoC market, it is possible to utilize the company's strengths, and the idea is to secure profits by advancing into the BtoB market, which has a relatively moderate degree of competition. Additionally, while searching for industry-standard EDI support, we aim to grow into a standard WMS in the BtoB market.

As an implementation of functions required for BtoB, functions are created in line with the BtoB work flow while cooperating with client companies. Recently, store receipt/store shipping functions for internet orders have been added to “Logizard ZERO-STORE” as standard functions, and API cooperation with the “Shozo Magistrate Cloud” has begun as cooperation with core systems specialized in BtoB. The company originally started a business for BtoB in the apparel industry. Due to this characteristic, it is presumed that construction of a system suitable for BtoB will proceed smoothly. Under these circumstances, BtoB implementation cases are also on the rise, and as an example, Bed & Mattress Co., Ltd., which introduced “Logizard ZERO,” has increased the shipping capacity of logistics warehouses by 500% or more.

(2) Automation trends to make up for labor shortages

The company continues to plan to accelerate the provision of products that meet labor saving/automation needs in order to respond to labor shortages in the logistics industry and warehouse industry. Specifically, it has been possible to improve the efficiency of work in warehouses by expanding cooperation with AI logistics robots and making optional functions such as RFID*. Labor shortages in the trucking industry are a major problem, and we believe that labor saving and automation needs will remain steady. According to the “Truck Transportation Industry Business Confidence (Bulletin)” survey published by the (public corporation) in 2023/11 by the All Japan Trucking Association, the percentage that answered that the labor force was “insufficient” or “slightly insufficient” in the 2023/7/9 fiscal year was 65.4%, which is 6.7 points worse than the previous survey (2023/4/6 fiscal year). Also, the outlook for the future is 69.7%, and it is expected that labor shortages will continue for the time being. Under such an outlook, it is a policy to increase appeal by expanding functions and options that contribute to labor saving/automation for customers. Currently, by starting cooperation with the inventory forecast/gross margin maximization tool “LTV-zaiko,” we are actively promoting cooperation with external systems that contribute to improving customer work efficiency and automation, such as drastically shortening the time required for acquisition and aggregation of inventory data.

* A system that uses radio waves to read data from built-in memory tags without contact. Whereas in barcodes, tags are scanned one by one with a laser, multiple tags can be simultaneously scanned with radio waves in RFID. If it is within the range that radio waves can reach, it is possible to read the tag even if it is far away.

(3) Advancing smartization of stores and integration with online

As interest in OMO marketing and attention to inventory management methods that make it possible increases, the company will accelerate OMO support. Specifically, we will promote the development and acceptance of “Logizard ZERO-STORE” and “Logizard OCE” by expanding API* cooperation with other companies' products, organizing and implementing functions required by OMO marketing, etc. In the 2024/6 fiscal year, work continued to grasp and consolidate customer needs for OMO marketing and incorporate them into functional aspects. Going forward, by focusing on enhancing and expanding functions while capturing the needs of client companies, we will contribute to further optimization of customer inventory management and improvement of the quality of consumer purchasing experiences.

* An API (Application Programming Interface) is a connecting role for linking software and applications with each other. By linking APIs with other companies' products, it is possible to use functions such as software and applications that are not implemented in the company's system.

In addition to these various product policies, it is a policy to invest heavily in strengthening internal organizational systems and expanding personnel systems in order to continue providing high-touch services in the future. Based on this policy, a new personnel system was established for the 2024/6 fiscal year to create a system where employees can work with peace of mind. The idea is to improve the employee retention rate and add depth to the company's human resources by proceeding with the expansion of the personnel system in parallel with new hires. Also, as personnel increase, a solution department responsible for order acceptance and delivery and a product service department responsible for product development have been newly established.

In addition, sales promotion activities will also be actively continued. In order to respond to customers with warehouses in rural areas and customers nationwide, the company has been actively carrying out sales promotion activities using online since before the COVID-19 pandemic. In addition to accumulating know-how through customer attraction activities and sales activities utilizing online, offline events will also be held. Offline is a business opportunity where acquisition of new customers can be expected, such as existing customers visiting the venue together with prospects. Furthermore, it can be said that offline communication is important from the viewpoint that customer needs can be grasped and reflected in research and development.

(Written by FISCO Visiting Analyst Yoichiro Shimizu)