3-13. Logistics System Construction Period and Project Team Formation Methods
1. Study Period (Example of a 3PL Food Distribution Center)
This is a practical document that organizes the study process (progression) of a "New Center" launch project corresponding with the PC data folder hierarchical structure. The entire story from conception through temporary suspension, resumption, to full operation is visualized.
🔍 [Detailed Diagram Explanation] The Realistic Transition of the Project Deciphered from the Folder Hierarchy
This is a project transition diagram using the actual folder hierarchy for the "Tokyo Branch New Center." This diagram meticulously records how building a large-scale logistics center is a complex process extending over a long period.
- Records of Inception and Initial Study (Before 0710): The project began with its inception, and as stored in the folder "Before 0710," initial proposals and volume data analysis had been steadily conducted since 2006 (before 060921).
- The Reality of Temporary Suspension (0710-0906): Despite repeated site studies, return on investment (ROI) calculations, and negotiations with shippers, the vivid process of the project being once "suspended" due to inconsistent conditions is recorded.
- Resumption at a New Site (After 090719): When the project "resumed" at a new site in July 2009 (090719), actions such as re-layout, re-data analysis, and recalculation of ROI proceeded at a rapid pace. Detailed verifications up to shipping simulation (100202) were conducted.
- Lead Time to Full Operation: The schedule maps out "1 year" from board approval through vendor ordering to building completion, and an additional "3 months" until logistics system installation is completed (Total 1 year 3 months). It shows the complete picture of the actual construction lead time, leading from there through operation testing/training (3 months) and logistics system acceptance (1 week) to handover and full operation.
1-1. Process Transition and Folder Structure (4 Phases)
① Inception / Initial Conception Phase
Period: _0710 and earlier (Around 2006 - 2007)
Implemented details: Inception, creation of overall rough image, rough estimation, internal consensus building.
Data: Past volume data analysis, training materials, initial proposals.
② Detailed Study and Temporary Suspension Phase
Period: 0710-0906 (October 2007 - June 2009)
Implemented details: Site study, detailed system study, ROI calculation, shipper negotiation.
Result: Temporarily suspended due to condition mismatch.
③ Resumption / Re-study at New Site Phase
Period: 090719 - 100202 (July 2009 - February 2010)
Implemented details: Resumption at new site, layout recreation, SAS/temperature zone verification, shipping simulation.
④ Approval, Construction, and Full Operation Phase
Standard construction lead time of approximately 1 year 6 months to 1 year 7 months from board approval (Approval ➔ Ordering ➔ 1 year construction ➔ System introduction ➔ Testing ➔ Full operation).
1-2. Practical Points Indicated by this Material
- Traceability of Information and Process: Centralized management with dated folders shows at what stage and based on what data (version) discussions were held.
- Risk Management of "Suspension and Restart": Even if there is a temporary suspension due to unsuited conditions, retaining past study assets allows for a quick shift to re-study when a new site is decided.
- Specific Verification of Material Handling Systems: Quantitative studies aimed at building a high-function center, such as SAS (automated sorting system), temperature zone classification, and shipping simulation, were conducted.
2. Project Team Formation
This is the "Promotion Structure Diagram (Project Structure Diagram)" for opening/renewing a logistics center.
🔍 [Detailed Diagram Explanation] Robust Promotion Structure Separating Core and Spot
This diagram represents the ideal "promotion structure" in a logistics center opening project. A structure that balances the speed of decision-making and securing expertise can be seen.
- Decision-making Line (Upper Tier): With the "Board of Directors" at the very top, it depicts the nexus of top-down and bottom-up approaches centered on the "Center Manager in Charge," who holds overall responsibility for the project. On both sides, "Consulting" and the "Facility/Technology Department Manager," who provide advice based on specialized knowledge, are positioned.
- Project Team / Main Persons in Charge (Center Section): These are the core members handling the core of the actual work. In addition to internal staff such as on-site "Operation/Work Managers" and HQ's "Facility/Technology Staff" and "Operational Business Staff," external "Logistics Equipment System Companies," "Construction Companies," and "Consulting" collaborate closely, forming a structure that advances hardware and software design in parallel.
- Members Participating as Needed (Left and Right): These are spot members who do not reside permanently on the project but join only during necessary phases. On the left are HQ's "Sales Staff," "Accounting Staff," and "General Affairs Staff" on standby; on the right, the "Shipper," "Architectural Design," and "Information System Construction Company" are positioned, defining a rational, lean formation that joins only when specialized knowledge is required.
2-1. Overall Structure of the System and Division of Roles
① Management / General Control Layer (Decision-making Line)
- Board of Directors: Approval of final business plan, investment decision (budget allocation)
- Center Manager in Charge: General control and board reporting as the Chief Executive (PM)
- Facility/Technology Dept. Manager / Consultant: Supervision and advice from a technical and specialized perspective
② Project Team (Execution Unit)
- Main Person in Charge: Operations manager, consultant, HQ technology, material handling equipment company
- Support: HQ operational business staff, construction company
2-2. Members Participating as Needed (Spot Participation)
| Category | Members | Role / Participation Timing |
|---|---|---|
| Internal Support (Left Side) | ・HQ Sales Staff ・HQ Accounting Staff ・HQ General Affairs Staff |
・Sales: Contract conditions/revenue adjustment with shipper ・Accounting: Budget management, asset capitalization, depreciation handling ・General Affairs: Site contract, legal procedures, labor environment setup |
| External Partners (Right Side) | ・Shipper ・Architectural Design ・Information System Construction Company |
・Shipper: Alignment of delivery conditions, packaging, shipping requirements ・Architectural Design: Creation of basic design / detailed design ・System Company: WMS linkage / IT infrastructure setup |
2-3. Practical Points of the Structure Diagram
- Clear separation of "Core" and "Spot": Accelerates decision-making speed while preventing relevant departments from being left out of the loop.
- Integration of Frontline (Operations) and HQ (Technology/Standards): Allocation aligning on-site usability with company-wide technical standards.
- Balance of Hardware and Software: Concurrent design of not only building construction but also shipper requirements and systems like WMS.
3. Steps for Plan Progression
This details the promotion process (Stage Gate) by phase and practical ironclad rules for opening a logistics center and introducing systems.
🔍 [Detailed Diagram Explanation] "Stage Gate" Mechanism for Narrowing Down Options
This is a conceptual diagram representing the steps of plan progression through 6 phases and "stage gates (barriers)." It shows a filtering mechanism to ensure complex projects move forward reliably.
- 6 Progression Stages: An irreversible process is defined from left to right: "Plan Conception Stage," "Current Status Grasping Stage," "System Proposal," "System Restructuring," "Final Estimation Stage," and "Ordering Stage."
- Convergence via Gates: Between each phase exist "gates (barriers)" indicated by orange ovals. In the initial "Inception/Drafting (Manufacturer Participation)," there are multiple system proposals and vendor options (multiple arrows); however, each time a gate like "Determination of Prerequisites," "Exploration of Systems," or "Creation of Unified Specifications" is passed, options are strictly narrowed down. By the time it moves from the final "Customer Approval" to "Ordering," the process visually depicts converging into a single, thick, certain vector.
- 3 Ironclad Rules Noted at the Bottom: At the bottom of the diagram, the ironclad rules of management to lead the project to success are clearly stated. It preaches the importance of information management and data-driven design, such as "the plan conception stage is confidential outside the project," "prerequisites are determined based on shipping data," and "shipping characteristics determine the center's scale and functions."
3-1. Promotion Process by Phase
| Stage (Phase) | Main Action Point at the Gate |
|---|---|
| 1. Plan Conception Stage | Inception/Drafting / Manufacturer Participation: The stage of refining the initial concept and beginning to involve major equipment manufacturers, etc. |
| 2. Current Status Grasping Stage | Determination of Prerequisites: The stage of identifying current volumes and operations to solidify the prerequisites of the plan. |
| 3. System Proposal | System Exploration: The stage of exploring and selecting options for necessary functions, material handling (automated equipment), etc. |
| 4. System Restructuring | Unified Specifications (RFP): The stage of comparing and integrating proposals from each company and translating them into a unified specification document (RFP). |
| 5. Final Estimation Stage | Customer Approval: The stage of aligning final amounts/conditions and passing through shipper or internal payment/approval processes. |
| 6. Ordering Stage | Final Ordering: The stage of concluding contracts and transitioning to actual manufacturing and construction. |
3-2. Important Messages for Project Promotion
① Information Management and Risk Care
"The plan conception stage is confidential outside the project => Affects affiliated companies, employees, and part-timers."
*Because hub integration/reorganization affects the frontline, information management in the uncertain early stages is essential.
② Data-Driven and Total Optimization
"Prerequisites are determined based on shipping data; system construction chooses total optimization."
*Eliminates emotional arguments and strives for the optimization of the entire supply chain from quantitative shipping data.
③ The Essence of Building a Logistics Center
"The crux of a distribution center is the shipping system; shipping characteristics determine the center's scale and functions."
*Designing with shipping characteristics (number of delivery destinations, shipping volume, fluctuations, etc.) as the axis (reverse design) is the key to success.
4. Scope of Logistics System Construction Study
The process from requirement definition to system selection and vendor request for proposal (RFP), and the most important principle of hub development.
🔍 [Detailed Diagram Explanation] Real Example of Precise Data Analysis in Box Container Selection
The diagram shows a precise data analysis (quantification of STEP 1 in the study scope) for actually operating small items placed in Box containers as "Yokohama Base Verification Experiment Prerequisites."
- Matrix Aggregation of Volume (Left Side): In the "Yokohama Data 2 Box Container Target Aggregation" table, the volume is cross-tabulated by the long and short side dimensions (groups from 5mm to 50mm+) of the small items, visualizing the size distribution of a total of 33,627 items, including percentages.
- Selection of Optimal Container and Barcode Operation (Right Side): Based on the analyzed data, "Sunbox #20-2 (External dimensions: Long side 600 x Short side 500 x Height 86mm, Capacity 19.9L)" is selected as the optimal "Adopted Box Container." It also describes the system requirement of affixing barcodes to both sides of the adopted Box container and linking them with the invoice during automated cargo input.
- Quantitative Requirement Definition for Exception Handling (Bottom Left): Based on the table "converted to SAS handling volume of 8000 items (999 small items)/day," out of 999 items with a height of 70mm or less, it determines that "985 items can be automatically input." On the other hand, it reveals that the operational requirement definition for exception handling is narrowed down very specifically: the remaining "14 items do not fit in the Box container, so they will be put into a different container and entered into the SAS from the normal cargo input line."
4-1. 3 Steps of the Construction Process
Based on product characteristics and DATA analysis, quantitatively calculate the "shipping characteristics prediction of the new center" from incoming/outgoing characteristics, functional requirements, and future predictions.
Formulate specific plans of multiple patterns and align them against site constraints, investment budgets, internal/external factors, and the knowledge of 3PL/4PL partners.
Create a "Unified Specification Document (RFP)" and request estimates from each manufacturer (building, equipment, operation, information system) so they can be compared under the same conditions.
💡 The Most Important Principle in Hub Development (Inside-Out)
"For a distribution center, determine the logistics system first, then align it with the building specifications"
If the box (building) is built first, efficient material handling deployment becomes difficult due to column pitches and ceiling heights. It is an ironclad rule to design the interior (systems, traffic lines) first and build the box that encases it.
5. Content of Progression and Planning Steps
This is a comprehensive roadmap integrating the progression process of business negotiations (shift in roles between sales and engineering) and plan progression.
🔍 [Detailed Diagram Explanation] Comprehensive Roadmap Showing the Linkage Between Sales and Engineering
This comprehensive roadmap is drawn by completely linking three axes: "Progression of Logistics Manufacturer Negotiations (Left)," "Progression of Project Planning (Top Right)," and "Content of Progression (Bottom Right)." It is a master plan offering a bird's-eye view of the entire project.
- Role Shifts by Phase (Left Side): It shows the structure where the steps of negotiation progression shift from initial "Sales-led (Inquiry / Sales Advice)" to mid-stage "Engineering-led (Current Analysis / Future Prediction / Determination of Prerequisites / Proposal)," and after final specifications are solidified, the initiative shifts back to "Sales-led (Creation of Unified Specifications / Quote Submission / Order Receipt)."
- Content of Progression and Total Optimization Puzzle (Bottom Right): This is the core of the project. First, "Incoming/Outgoing Characteristics," "Functional Requirements," and "Future Predictions" are derived from product characteristics and DATA analysis, and these are integrated to derive the "Shipping Characteristics Prediction of the New Center." Based on that prediction, "Operation Methods, Information, Equipment, and Work Methods" are formulated. Furthermore, comprehensively aligning location/site constraint conditions, investment budget, internal/external factors, and requests for quotes from sought 3PL or 4PL operators (building equipment, operational system, information system, logistics equipment system) leads to the "Selection of Optimal System and Building Specifications." The process covers solving a complex puzzle towards total optimization, ultimately creating a "Unified Specification Document" that encompasses all of this.
5-1. Role Shifts in Each Phase
1. Initial: Sales-led
Promotion ➔ Inquiry ➔ Sales advice/adjustment.
Sales acts as the point of contact to draw out challenges and initial needs.
2. Mid-stage: Engineering-led
Current analysis ➔ Future prediction ➔ Determination of prerequisites ➔ Proposal.
Engineers analyze data and construct specific system proposals.
3. Final stage: Sales-led
Creation of unified specifications ➔ Quote submission ➔ Order receipt.
Final adjustments and contract conclusion are made after specifications are finalized.
6. Internal Situation of the Project Team
An approach to mindset reform transitioning from initial "conflict of opinions and confusion (scalar)" in the project to "total optimization (vector)" where everyone faces the same direction.
6-1. Transition from "Scalar" to "Vector"
| Stage | State (Concept) | Characteristics / Internal Situation |
|---|---|---|
| Initial Stage | Scalar (Magnitude only, pointing in all directions) |
・Each person makes different claims, sticking to departmental benefits (local optimization). |
| Promotion / Unification | Organization, Adjustment, Visualization | Organize and visualize information, making adjustments based on objective grounds. |
| Arrival Stage | Vector (Magnitude and a clear direction exist) |
・Unification of intention regarding purposes and means is completed, shifting to "Total Optimization." |
🔑 Requirements for Vectorizing a Team
"Objectivity that a third party can evaluate, and expressive power that can be visualized are required."
Quantitative logistics data (objectivity) and diagrams/3D visualizations (expressive power) that allow everyone to share a mental image are the keys to intention integration.
7. Project Creation Materials (13 Items of the Basic Plan Document)
These are the structural requirements of the 13 items for the "Basic Plan Document" that should be included in management approvals (circulars) and RFPs for vendors.
1. Philosophy and Data Grounds
- 0. Current challenges and system construction philosophy
- 1. Logistics prerequisite (study) conditions (numerical expression)
2. Physical Design (Hardware/Space)
- 2. Logistics flow (Pallet/Case/Piece)
- 3. Space study (area estimation by function)
- 4. Transport method study
- 5. Storage method study
- 6. Layout drawing allocation
3. Operational Design (System/On-site)
- 7. Information system configuration diagram (WMS/WCS, etc.)
- 8. Operation/Work explanation
- 9. Time schedule
4. Decision Making & Effect Measurement
- 10. Reform (improvement) points and effect explanation
- 11. Investment amount and depreciation (ROI)
- 12. Creation of 3D system image
📌 Practical Summary
By gathering these 13 items, you can create a state where "management can make investment decisions," "the frontline gets an image of operations," and "vendors can create estimates without discrepancies."