DENSO Corporation and Global Mobility Service, (GMS) will start field testing this month a new transport service incorporating small refrigerated parcels to deliver fresh food and other products to commercial facilities and households in Indonesia.
During the field test, small, refrigerated trucks equipped with DENSO’s small freezer will be lent to drivers. Drivers will then deliver fresh and frozen food for shippers. DENSO and GMS will examine the needs for transportation services of refrigerated parcels and driver’s revenues from delivering fresh and frozen food for shippers.
The two companies will aim to operate services using GMS’s loan repayments system* in the near future and open the delivery job for those who do not have enough income to take out a loan for a truck as well as improve refrigerated transport services in Indonesia.
GMS’ loan repayment system allows fleet managers to manage the vehicles in real time, including remotely preventing the engine from starting when drivers miss loan payments and restarting the engine when they repay them. This system is realized by using an IoT device and mobility service platform.
Building a cold chain logistics network in Indonesia
GMS conducts business in Japan and other countries in Southeast Asia. As a global startup from Japan specialising in financial inclusion business, it provides a mobility service for people who do not have access to financial services.
In March 2017, DENSO took its first stake in GMS to verify the development potential of the mobility IoT business. In August 2019, DENSO took an additional stake to develop and expand the business for commercial vehicles in emerging countries. The company will continue to identify the needs and issues of service providers, promote market-oriented business development, and accelerate efforts to build the logistics network including the cold chain.
In the field test, both companies aim to build a cold chain logistics network in Indonesia – hoping to identify and solve potential issues in establishing a new commercial business model for the future.
In Southeast Asia, there is growing demand for frozen and refrigerated food delivery due to diversifying dietary habits, economic growth and the spread of e-commerce.
However, current refrigerated logistics services still experience issues with food safety and quality, and it is necessary to improve the effectiveness of refrigerated trucks in the region.
The increased demand for deliveries also serves as an opportunity to create new delivery driver jobs, particularly for those in need of work.
During the test, DENSO and GMS will do the following:
- Visit candidate shippers who are willing to participate in the field test
- Verify the economic rationality of financial institutions providing loans to delivery drivers after the field test
- Conduct a survey on business feasibility in ASEAN and other countries and conduct test marketing
- Conduct a study to gather and analyse the temperature management data of freezers and refrigerators manufactured by DENSO
DENSO and GMS will work on the safe and secure transport of food and contribute to creating a sustainable society to improve the lives of people who wish to work by deploying innovative services using IoT technologies in cooperation with partner shippers and financing companies.