News Release：Pioneer and Toyota Tsusho Partner to Develop and Offer Logistics DX Solutions to Support Last-Mile Deliveries

Pioneer Corporation has partnered with Toyota Tsusho Corporation to develop and offer logistics DX solutions to support last-mile deliveries.

The first jointly developed logistics DX solution in this partnership is the Optimized Delivery Planning Service, which is designed to streamline delivery processes in logistics operations. Pioneer's Piomatix LBS (location-based service) API Suite, which is based on the company's proprietary mobility AI platform Piomatix, optimizes travelling routes of commercial vehicles. In this Optimized Delivery Planning Service, two APIs in the suite—the Route-Searching API and the Route Matrix API—work in tandem to search for and recommend optimal delivery routes and predict delivery distances and time. These two APIs use a scalable routing engine, real-time wide-area traffic congestion information, and highly accurate prediction of travelling time to generate reliable routing information. With this service, delivery service providers can achieve greater on-time delivery performance and operational efficiency.

Toyota Tsusho has been providing this service to WILLPORT Co., Ltd., a Tokyo-based logistics service provider, since November 2022. WILLPORT has incorporated this service into its open logistics platform (“OLP”) for last-mile deliveries (“Polaris Navi”) to coordinate with consignors and delivery service providers of varying sizes in joint small-area deliveries to provide better services to customers and achieve greater operational efficiency. Toyota Tsusho found that WILLPORT's OLP helped delivery service providers achieve a more than 94% on-time delivery rate while reducing their total delivery time by 12% and total delivery distances by 20% for the month of November 2022.

Pioneer intends to work closely with Toyota Tsusho to expand the Optimized Delivery Planning Service in Japan. This is part of our efforts to address social issues, such as overtime restrictions to be imposed on truck drivers in 2024 and reducing logistics CO₂ emissions, and support sustainable last-mile delivery services. As a second step, the two companies will explore the opportunity to extend the service into markets outside Japan.

How the Optimized Delivery Planning Service, Powered by Piomatix LBS APIs, Works

Overview of the Piomatix LBS API Suite

As of February 2023, the Piomatix LBS API Suite offers the following three APIs and will add more down the road. The Optimized Delivery Planning Service is supported by the Route-Searching API and the Route Matrix API.

Key Advantages

1. Proprietary vehicle-routing technologies optimized to real-world road conditions and restrictions in Japan
   Pioneer owns more than 80 patents for route-searching technologies, which makes it easy to search for optimal travelling routes by taking into account a variety of factors, including the frequency of having to make right or left turns on the way, the avoidance of having to make U-turns, the ease of pulling vehicles over at the roadside, and travel restrictions on large vehicles.
2. 97.2% accuracy^* in predicting arrival time
   This service provides optimized travelling routes that bypass congested roads, based on the combination of nationwide traffic congestion information provided by the VICS (Vehicle Information and Communication System) and Pioneer's proprietary probe information. In addition, the service provides with 97.2% accuracy the predicted time of arrival at destinations by taking into account even the number of traffic lights on the route and the total predicted time of stops at red lights.
   * Obtained when an option to consider traffic information is chosen, which was derived from internal assessments based on probe data gained from 38,000 trips
3. Upgraded Professional Service available as an option
   In the optional Professional Service, Pioneer's routing specialists use more than 100 parameters to provide customized optimal travelling routes. Parameters include types of commercial vehicles, types of businesses, geographic areas to be covered, and other restrictions specific to commercial operations.

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