"SSCV" is a transport digital platform that updates transport business through technology and open collaborative creation, and it consists of the following three solutions.

"SSCV" will build new business models contributing to the resolution of various social issues with services from ideas originating at the worksite that only a logistics company can provide and the utilization of big data obtained from services, connecting transport and society for a better future and contributing to the realization of a sustainable society.

"SSCV-Safety" is a solution with which we aim for "zero accidents," developed as a result of LOGISTEED's long-standing commitment to accident prevention and safety as a logistics company. The health status measurement function for drivers and the dashboard function for managers work in tandem to detect in real time near-misses that could lead to accidents.

In addition, the following functional enhancements were implemented.

In the future, we will work on expanding the functions of the system with the aim of strengthening compliance and improving the efficiency of driving management work in response to further legal regulation.

In FY2019, we began full-scale introduction of "SSCV-Safety" to Japan commercial trucks and personal vehicles, and by FY2021 the system has been installed on all of the company's approximately 2,200 vehicles. Since introducing the system, we have maintained zero vehicle accidents caused by distracted driving, thereby minimizing the occurrence of accidents. Starting in 2021, we have been offering the service to other transport companies outside the Group, and we are working to further spread the use of "SSCV-Safety". "SSCV-Safety" is certified as "TDBC Certified Solution" by Transportation Digital Business Conference (TDBC) and is used in initiatives to solve social issues such as research projects by the Ministry of Health, Labour and Welfare and verification experiments by the Ministry of Land, Infrastructure, Transport and Tourism.

In addition, our contribution to improving driver safety was highly commended at the All-Japan Logistics Improvement Case Study Convention 2025 in the Logistics Management category, organized by the Japan Institute of Logistics Systems (JILS), where we received the Grand Prize for Logistics Improvement.

The truck transport industry is made up mostly of small and medium-sized businesses, and many of them still conduct operations using telephone, fax machine, and paper documents. "SSCV-Smart", developed by LOGISTEED, is a transport operations support solution for cargo owners and transporters that supports business efficiency and legal compliance on both sides.

"SSCV-Smart" is an online system that connects cargo owners and transporters via the Internet. It supports business efficiency and legal compliance, as the system allows for centralized management of all processes from acquiring transportation projects to vehicle assignment, issuing driving instructions, and billing, in addition to supporting saving of electronic books and the invoice system.

Vehicle management is complicated and involves a wide range of tasks such as inspection, maintenance, and insurance renewal. In addition, compliance with laws and regulations is required, and inadequate management can lead to major risks. "SSCV-Vehicle" is a new solution for vehicle management that combines the unique perspective of a logistics company with technology.

"SSCV-Vehicle" centralizes and supports the individual management operations from vehicle procurement to purchase. Currently, we are developing preventive diagnosis functions, such as remote diagnosis and failure prediction alerts utilizing IoT technology and big data.

Addressing the transport capacity shortage across society, including the revised Logistics Act,* requires urgent measures such as shortening total working hours of drivers and strengthening transportation capacity to compensate for the shortage of drivers. The LOGISTEED Group is pursuing inter-company relay transport, modal shifts in collaboration with collaborative innovation partners, and the deployment of double-trailer trucks, enabling reduced labor dependency, increased cargo capacity, and shorter transport distances. In addition, we have introduced our proprietary truck loading dock booking management system at approximately 200 sites, aiming to reduce truck waiting times and streamline cargo handling operations. As a result of these initiatives, the number of violations of labor standards by the LOGISTEED Group's truck drivers was zero in FY2025.

In today's increasingly complex and sophisticated supply chains, we act as a strategic supply chain partner, contributing to improving our customers' business value and environmental value, such as decarbonization, through visualization and overall optimization through digital transformation.

In FY2024, we proposed a standard monitor linked with LOGISTEED Solutions, Ltd.'s "ONEsLOGI*" lineup, integrating three visualization solutions for warehousing, transportation, and CO2 emissions, to over 100 customers. We also developed a standard KPI dashboard based on the standard monitoring KPIs cultivated in LOGISTEED's 3PL business and began providing it to our customers' supply chain organizations.

As Japan's logistics industry undergoes significant regulatory and environmental changes, raising concerns about the negative impact on the supply of food, pharmaceuticals, and other products. In response to this situation, the government enacted the Act on Advancement of Integration and Streamlining of Distribution Business (Amended) on May 15, 2024, which requires shippers and logistics companies to make efforts to improve logistics efficiency. It also mandates that companies of a certain size or larger appoint a Chief Logistics Officer (CLO) and develop mid-to long-term reform plans. Going forward, it is expected that we will enter an era in which promoting logistics reform across companies and industries will be essential, rather than focusing on logistics efficiency at the individual company level. LOGISTEED has developed a new logistics solution to support CLOs and the staff directly under them, who hold the keys to this era, and has begun offering it to multiple clients.

With the risk of stagnation in international trade due to tariff policies under the Trump administration and uncertain geopolitical risks caused by authoritarian regimes, the importance of responding to resilience in global supply chains is receiving more attention than ever before. SCDOS is accelerating the expansion of its services to meet the needs of global customers, leveraging the supply chain planning and optimization analysis know-how it has gained from supporting customers with various solutions. As part of our continued initiatives in FY2025, we strengthened collaboration with the logistics engineering organizations of our major overseas group companies and provided services to multiple customers. The main regions in which we provide services include North America, Europe, and Southeast Asia, making it possible to provide services throughout the LOGISTEED Group.

Many customers have felt the limitations of improving efficiency through data tracking using spreadsheet software in import procurement operations. In this context, LOGISTEED provides "SCLINK+" for improving the efficiency of operations through platform-based management of data previously managed separately. Introducing this platform will visualize the number of orders and transportation status, enabling the reduction of manhours spent on inquiries among the players in the supply chain and accurate responses on delivery time, leading to improvement of efficiency of operations.

As part of "SCDOS," our DX service to support optimization of customers' supply chain, we offer "CO₂ emission visualization function" from FY2021. This service enables customers to accurately measure and visualize CO₂ emissions and reduction in the supply chain by centrally managing and monitoring their various data, which has received conformity assessment by a third-party organization.
In FY2025, the service was introduced to multiple customers, including major manufacturers and logistics companies in Japan, and its deployment progressed steadily as its scope of application expanded. We are also expanding our overseas operations and promoted the visualization and reduction of CO₂ emissions across global logistics activities. In addition, regarding the CO₂ emissions reduction project through "collaborative delivery," we completed registration under the J-Credit Scheme in FY2025 and are advancing initiatives toward the commencement of its operation. Under this scheme, LOGISTEED serves as the operator and administrator, aggregating and calculating performance data from "collaborative delivery" initiatives conducted by participating shippers and logistics companies, thereby establishing a framework aimed at applying for and generating J-Credits.

The Group is promoting DX by accelerating the digitalization, visualization and standardization of a variety of data arising in logistics sites, as labor shortages and long working hours become issues in the logistics industry.

To create new values and innovation by promoting DX, we are working to develop and establish a company-wide digital platform for both business and management systems. We completed renewal of the core management system for Japan group companies in FY2022, enabling us to provide innovative digital services and promote data-driven management through linkage of the digital management platform and the digital business platform. We are also advancing the development and deployment of digital platforms across our overseas group companies, promoting further operational standardization throughout the LOGISTEED Group and strengthening data-driven management on a global basis.

In our customers' business operations, the role of logistics is changing dramatically, from a traditional "cost center" to a "starting point for value creation." As symbolized by the mandatory appointment of a Chief Logistics Officer (CLO), the trend of viewing the supply chain as the core of management strategy is accelerating. The LOGISTEED Group systematically organizes all data into forms that can be utilized by AI, and we are promoting the enhancement of decision-making and business processes, from the back office to logistics sites and all the way to our customers. Furthermore, through the utilization of our accumulated on-site operational knowledge and logistics data, we provide value through both consulting and solutions. We aim to remain a partner that supports our customers' decisionmaking processes every step of the way, from strategy formulation to execution and improvement.

The Group is actively engaged in not only the promotion of labor-saving in logistics centers, but also in improving efficiency and standardizing warehouse operations through DX to resolve social issues such as logistics delays/stagnation and rising logistics costs caused by labor shortages.

To enhance productivity at logistics operations and realize sustainable logistics services, the LOGISTEED Group has developed and deployed its proprietary digital logistics solution, the Resource Control System (RCS). RCS consists of three solutions: RCS-Automation, which optimizes equipment management; RCS-Workforce, which optimizes workforce management; and RCS-Simulation, which leverages warehouse operational data to create a digital environment and conduct resource optimization simulations. Through these solutions, best practices identified in the physical warehouse environment are accumulated and leveraged in a virtual environment, enabling the establishment of a continuous improvement cycle in which more advanced best practices are developed and deployed back to the physical environment. This cycle supports ongoing end-to-end optimization of warehouse operations.

Automation and labor-saving measures are inevitable if we are to be prepared for future labor shortages. In addition, it is anticipated that various equipment and robots will be introduced in logistics sites in the future, and there will be a need for task coordination between multiple equipment and robots. RCS-Automation supports the improvement of overall worksite throughput by controlling multiple equipment without relying on manufacturers, based on such needs. Even in controlling individual equipment, it is possible to add functions that are not available in the manufacturer's system using the control system developed by LOGISTEED independently, without relying on the manufacturer's control system, and to deploy our control know-how.

We digitalize tasks that were previously dependent on individual workers, which helps eliminate reliance on specific individuals and promotes paperless operations, thus reducing administrative management burdens. Moreover, efforts to standardize worksite operations will enable business processes to be put in place, and it will become possible to compare and verify productivity per cargo owner. Additionally, based on visualized operational status, we can pre-allocate workers to their work areas, adjust allocations on the day, and make placement adjustments according to cut times.

RCS-Simulation utilizes logistics data obtained from RCS-Automation and RCS-Workforce to create a digital representation of warehouse operations, including the movements of personnel and equipment. This enables the simulation and evaluation of more efficient operational scenarios before implementation.

Implementing RCS in the household goods logistics center (Osaka) opened in FY2022 has enabled us to perform integrated control of automated facilities reflecting the Company's proprietary warehouse operation knowhow, and we have achieved efficient automation and labor-saving in work processes from the receipt of products in single and case packing modes to sorting by destination. We plan to introduce a similar system at our sporting goods logistics center (Tochigi Prefecture) in FY2023 and at our cosmetics logistics center (Fukuoka Prefecture) in FY2024, promoting automation and labor-saving measures. Furthermore, the implementation of RCS has enabled swift processing of warehouse operations such as personnel assignment planning, shift planning and work process planning in warehouses that had previously relied on the knowledge of managers. The implementation of the DX solution called RCS has resulted in real-time budget and results management of facilities and personnel and the improvement of efficiency and standardization of resource control.

We are working to standardize Warehouse Management System (WMS) to expand value we provide to our customers. We used to customize WMS by business type or customer. Now, in order to expedite and sophisticate our proposals on and provision of services to customers, we have reconstructed "ONEsLOGI, a new WMS-PF (standardized warehouse management system)" equipped with the Group's expertise on the warehouse domain as well as those acquired through the 3PL business over the years and all logistics-related functions as a standard solution.

The LOGISTEED Group believes that "intellectual property" is the source of its business competitiveness, and aims to achieve sustainable corporate growth and maintain competitiveness through its management and protection. We believe that the introduction and advancement of innovative technology are essential to fulfilling our role as a socioeconomic infrastructure in logistics, and we continue to take on new technological challenges with a proactive attitude that goes beyond the status quo. In our strength in the 3PL business, we combine on-site operations with software to achieve digitization, visualization, and optimization, and we have applied for business-related patents to highlight our achievements. By promoting individual data-driven decision-making and efficiency improvements while improving overall management and internal control performance, we will advance the "Step up DX," one of the Group's material issues. In FY2025, we examined business models for equipment systems linked to warehouse operations, an area in which our Group excels, as well as economic value that incentivizes the reduction of CO₂ emissions, and filed patent applications in each of these fields. We have also actively sought intellectual property rights for technologies related to automation, labor-saving, visualization, and optimization, and by securing numerous patents not only in Japan but also overseas, we have enhanced our competitive advantage and made progress in advancing our global strategy.
Through intellectual creation via the securing of patent rights, the LOGISTEED Group will contribute to society by solving customer issues and creating further value, and by providing advanced, high-quality logistics services.

In addition to enhancing DX training to secure DX personnel to handle the creation of new businesses utilizing IT and DX, we are developing data scientists for discovering and resolving customers' supply chain issues based on data.

"Recovice" developed to respond to consumption styles changing from ownership to use and experience is a service supporting subscription services of e-commerce operators through individual item management using RFID* tags and a cloud-based system.

As the fashion industry faces environmental issues such as mass consumption and disposal of apparel, this "Recovice" not only contributes to the realization of cyclical logistics supporting sharing, subscription and rental services, but also leads to "extension of product life" and circular economy through appropriate cargo handling.

We are seeking effective ways to use big data obtained from SSCV services and its new value in order to realize "smart and safe logistics." In collaboration with our collaborative partners, Sompo Japan Insurance Inc. and Sompo Risk Management Inc., we provide a service that analyzes near-misses (hazardous events) detected by the "SSCV-Safety" AI dashcam and delivers targeted, optimal safe driving training content.