Can startups save Japan’s logistics industry?

Описание: According to Taro, Japan's logistics industry is on the brink of collapse, and it's hard to argue that he's wrong.

Taro Sasaki founded Hacobu with the goal of modernizing Japan's logistics industry. He found few takers for the first few years, and then a new law changed everything.

We talk about how Japan's demographic and economic challenges, why some industries simply refuse to invest in themselves, and how to sell to them anyway.

It's a great conversation, and I think you'll enjoy it.


Show Notes


Why Japanese logistics is on the brink of collapse
The factors pushing demand for trucking higher in Japan
What's preventing Japan's logistics industry from modernizing
How to sell digital products to skeptical analog industries
A new Japanese law mandating business efficiency
How to bootstrap a complex application ecosystem from scratch
The huge value hiding inside Japanese logistics data
Hacobu's global expansion plans
Taro’s best advice to founders wanting to sell into traditional, blue collar industries
The importance of dreaming big -- even in Japan


Links from the Founder

Everything you ever wanted to know about Hacobu

Keep up with the latest on Hacobu [Japanese]
Hacobu's survey of 1271 Japanese truck drivers [Japanese]


Friend Taro on Facebook
Connect with him on LinkedIn
Follow him on Twitter @tarosasaki



Leave a comment




Transcript
Welcome to Disrupting Japan, Straight Talk from Japan's most innovative founders and VCs.
I'm Tim Romero and thanks for joining me.
Today we are going to talk about how to drive innovation into traditional, conservative, low margin blue collar industries. Now, that might sound hard to do, but it's actually even harder than it sounds. And, you know, that's why so few startups seriously attempt it and why it's extremely profitable for the few founders who manage to get it right.
Today we sit down with Taro Sasaki, the founder of Hacobu, a startup that is finally, finally bringing digital transformation and automation to Japan's logistics industry. Taro’s constant refinement and testing of his ideal customer profile and go to market is a story that all founders can learn a lot from.
Taro and I talk about the best path for founders to take when trying to sell to industries that are resisting digitization, how a lack of regulation can sometimes actually lead to less innovation. Why the logistics market is so hard to crack globally, and the two big factors that led to Hacobu’s sudden change of fortune.
But, you know, Taro tells that story much better than I can. So, let's get right to the interview.

Interview
Tim: So, I am sitting here with Taro Sasaki, the founder of Hacobu, who is reinventing Trucking Logistics in Japan. So thanks for sitting down with us
Taro: Thank you too.
Tim: So, MOVO is a suite of SaaS tools that handle fleet tracking vehicle dispatch loading, unloading.  I gave a brief explanation in the intro, but I think you can explain it much better than I can. So, what is MOVO?
Taro: So, Japanese logistics infrastructure is collapsing.
Tim: What do you mean collapsing?
Taro: So, the number of truck drivers is decreasing. The government estimates that in 2030, 25% of truck driver will short to the demand.
Tim: So, what's causing it? It's a lower paying job that younger people just don't want to get into?
Taro: Yeah, yeah. That's one of the reasons. And also the business process in the infra is very outdated and very analog, there are many inefficient things going on. So, the demand for the truck driver is increasing, but actually the supply of the truck driver is decreasing. So, the gap is going to increase.
Tim: That's interesting. So, the demand for trucking is actually increasing recently?
Taro: Yes. Because of the development EC, we want to get things, for example, at the supermarket, we want the commercial goods on demand so that the suppliers have to deliver the products on time that we want to buy it. So, the amount of goods in one truck is decreasing.
Tim: So, is this increase in demand, is it mostly that sort of last mile delivery? Is it long haul freight or is it both are increasing?
Taro: Both of them.
Tim: Wow. Did not expect that.
Taro: Yeah, because B2C logistics is easy to understand because, you know…
Tim: The whole e-commerce boom is Yeah,
Taro: Yeah. But there is a big infra in the back of the EC, which is called B2B logistics. For example, there's a factory, and the factory have to be supplied. So the suppliers have to deliver to the factory by a track. And then after the factory manufacturer, they have to deliver to warehouse. And then the warehouse deliver to the supermarket, the EC in a warehouse. This B2B logistics infra much bigger than the EC infra. The number of the size of the infra is about like 50 cho-yen comparing to EC, which is about three cho-yen.
Tim: And so Hacobu's goal, MOVO's goal is to address that 25% shortfall through increases of efficiency. I want to dig into that and the chal...