- Seeking to Accelerate Logistics DX by Optimizing Transport Routes and Analyzing Traffic Data -

NIPPON EXPRESS HOLDINGS, INC. acquired on April 2 an equity stake in SWAT MOBILITY (hereinafter "SWAT"), an AI technology startup company headquartered in Singapore, as an investment by NX Global Innovation Investment Limited Partnership (hereinafter "NX Global Innovation Fund"). The Nippon Express (hereinafter "NX") Group hopes through this investment to further accelerate its digital transformation (DX) strategy and help resolve social issues on a global scale.

SWAT's logo: https://kyodonewsprwire.jp/img/202404159429-O1-rFKLIb5g

NX's logo: https://kyodonewsprwire.jp/img/202404159429-O2-E9u5HPjs

Overview of SWAT

Established in Singapore in 2015, SWAT provides services in eight countries (Singapore, Japan, the Philippines, Thailand, Malaysia, Vietnam, Indonesia, and Australia) using dynamic routing algorithms (*1) that instantly derive optimal routes for sporadic travel demand from multiple points. In Japan, SWAT is developing and providing logistics/distribution optimization systems, on-demand transport operation systems, and bus route traffic analysis systems as well as taking new approaches tailored to the local market environment from the perspective of Mobility as a Service (MaaS).

Background and objectives of the investment

The logistics industry is facing global social challenges such as driver shortages, rising fuel costs, and CO2 emission cuts required to combat climate change. Companies are expected to take concrete steps to address these challenges and help achieve sustainable societies. Japan in particular is likely to see a labor shortage due to stricter work regulations for truck drivers that go into effect in 2024, making improved logistics efficiency an urgent issue.

The NX Group has been pursuing DX as a tool for resolving these issues and has been actively exploring the use of external resources, including co-creation (*2) with startup companies in Japan and overseas, to attain greater logistics efficiency.

By investing in SWAT, which is strong in cutting-edge mobility solutions in Singapore and other countries, the NX Group seeks to accelerate its DX and resolve global-scale social issues in the logistics industry.

Initiatives

1. Verification of digitalized vehicle dispatch operations

SWAT's dynamic routing algorithm technology and advanced development capabilities will be utilized at NX Group locations and projects in Japan and overseas to verify the digitalization and global standardization of vehicle dispatch operations.

2. Development of new services via the strategic use of transport performance data

Utilizing the transport performance data accumulated through verification processes, the NX Group will analyze the parameters required for vehicle dispatch operations and calculate pickup and delivery costs as well as CO2 emissions. The Group will work to develop new services by making strategic use of the data.

The NX Group will continue leveraging its domestic and international networks to co-create with promising startups.

Notes:

(*1) Dynamic routing algorithm: Technology designed to create optimal routes based on traffic information and given data

(*2) Co-creation: Collaboration between NX Group companies and the NX Global Innovation Fund to invest in startup companies that add value to customers and on-site operations, with the NX Group and startup companies working together to achieve business growth

Profile of investee: https://kyodonewsprwire.jp/attach/202404159429-O3-i7B6ua8R.pdf

About the NX Group: https://kyodonewsprwire.jp/attach/202404159429-O2-dBeYgDVw.pdf

NX official website: https://www.nipponexpress.com/

Nippon Express Group's official LinkedIn account:

https://www.linkedin.com/company/nippon-express-group/