LOGITECH Co., Ltd.

2024.06.27

[The 2024 Logistics Issue] Supporting the Resolution of Driver Shortages: Launch of the Driver Referral and Dispatch Service “DriverPit”

Logitec Inc., a member of the CAMCOM Group that addresses social issues related to “work” through its business activities (head office: Takanawa, Minato-ku, Tokyo; Representative Director and President: Masaomi Kawamura; hereinafter “Logitec”), launched DriverPit, a new driver referral and staffing service designed to help resolve the driver shortage that is a major factor behind Japan’s “2024 logistics issue,” on June 1, 2024.
The “2024 logistics issue” is raising serious concerns about an increasingly severe shortage of drivers due to tighter regulations on overtime work, and it is estimated that by fiscal 2030 there will be a nationwide shortfall of as many as 36% of drivers.*

DriverPit is a service that introduces and dispatches a wide range of driver talent — from experienced professionals to beginners and side-job workers — in line with each client’s specific needs. By also providing training for newly hired drivers and consulting on driver recruitment, the service aims to help address the growing shortage of drivers that is at the core of the “2024 logistics issue” in the logistics industry.

*Source: Nomura Research Institute, Ltd., “The Logistics Crisis Will Continue to Worsen After 2024” (June 5, 2024)

ドライバーピット

>>https://logi-tech.co.jp/dorapi/

Background to the Service Launch: Worsening Driver Shortages Under Tighter Overtime Regulations
Effective April 1, 2024, an annual cap of 960 hours on overtime work for professional drivers came into force. As a result, it has become increasingly difficult for drivers to work long hours, making long-distance transportation more challenging and triggering what is commonly referred to as the “2024 logistics issue.” For an industry that had already been struggling with growing shipment volumes driven by e-commerce and a shortage of personnel, the shortage of truck drivers has now become an even more critical issue.

According to estimates, by fiscal 2030 there will be a nationwide shortage of 36% of truck drivers, and in regional areas where population decline is expected to be particularly severe, the shortfall could reach 40%.* Against this backdrop, continuous efforts to secure drivers are expected to become ever more important in the years ahead.

*Source: Nomura Research Institute, Ltd., “The Logistics Crisis Will Continue to Worsen After 2024” (June 5, 2024)

https://www.nri.com/jp/knowledge/report/lst/2024/cc/mediaforum/forum375

Service overview: Driver referral and staffing service “DriverPit”
DriverPit is a service designed for companies that are unable to resolve driver shortages through conventional, one-size-fits-all hiring of experienced drivers. Taking into account each driver’s employment status, the service introduces and dispatches drivers whose skills match the specific assignments and types of cargo involved. In addition, by training inexperienced and novice drivers and providing consistent follow-up to support their retention, DriverPit helps companies meet the growing demand for driver personnel.

https://logi-tech.co.jp/dorapi/

■ Four Services Offered by DriverPit

Dispatch of Experienced Drivers
We introduce driver talent matched to your required years of experience, practical background, and qualifications.
On the assumption of medium- to long-term employment of six months to one year, we can propose candidates ranging from younger to senior drivers.
It is also possible to use a temp-to-perm arrangement in which the driver is hired directly after a certain period.

Dispatch of Inexperienced Drivers
For operations that do not require prior driving experience, we introduce candidates who have no on-the-job experience as drivers.
We can quickly propose a wide range of talent, from first-time drivers to those working as a side job.
This service can be combined with our New Driver Training Program, and it is also possible to adopt a temp-to-perm model where the driver is hired directly after a certain period.

New Driver Training Program
This service designs and delivers training programs tailored to your core operations and the types of cargo you handle, and supports drivers all the way through to becoming fully capable.
By leveraging Logitec’s training package “LogiCale,” drivers can be trained up to a practical level in as little as two days to one week.

*LogiCale is a platform for training and dispatching logistics personnel.

https://logi-tech.co.jp/forklift/

Logistics Talent Recruitment Consulting
This is a recruitment process outsourcing (RPO) service that covers the entire hiring process, from defining candidate requirements through to creating recruitment content.
Drawing on the hiring expertise of the CAMCOM Group’s staffing businesses, we provide comprehensive support for logistics talent acquisition.

Response from logistics-related companies
In less than a month since the service was launched, we have received strong interest from many logistics-related companies.

“We have been struggling with a shortage of drivers for several years. We knew we had no choice but to train and accept beginners, so having a partner that can handle everything from pre-employment training to recruitment consulting and retention follow-up is extremely helpful.”

“We invested significant costs to hire experienced drivers, but they quit soon after because they didn’t fit our workplace. We would like to use the inexperienced driver dispatch service so that we can focus on matching and cultural fit first, rather than skills alone.”

“Even large companies are struggling with a shortage of drivers. Since driver shortages are a challenge across the entire industry, not just for small and mid-sized companies, the driver training program is tremendously valuable.”

“For our operations, customer-facing communication is more important than pure driving skills. That is why we are very interested in a temp-to-perm model that allows us to evaluate personality and fit before making a direct hire.”

“We are concerned about rising turnover. By using temp-to-perm placements for beginner drivers, we hope to first observe their personality on a trial basis and then identify people who are likely to stay with us over the long term.”

Logitec’s initiatives for the “2024 logistics issue”
Leveraging the foundation of the CAMCOM Group, which operates staffing services, Logitec is building a logistics platform that matches its own resources—such as “people” and “locations”—with the delivery operations of shipper companies and logistics providers including warehouses and transportation firms. By expanding its network of sites and increasing personnel, the company has built a strong track record in securing labor and workspace as well as managing on-site operations, and now provides services to more than 500 companies.

At a time when the development of efficient transport networks is urgently needed in response to the “2024 logistics issue,” Logitec aims to contribute to society by helping solve industry challenges—through initiatives such as optimizing transport operations, strengthening collaboration among logistics companies, and appropriately sharing and reallocating logistics processes.

For further details, please refer to the article below.

https://prtimes.jp/main/html/rd/p/000000015.000122213.html