On The Links Launches "YUKAITM" Profit Simulation Service to Visualize Logistics Profit Improvement Effects in Two Weeks

Against the backdrop of rising logistics costs, labor shortages, and the need to comply with logistics efficiency laws, investment decisions for logistics improvement have become critical issues for corporate management. However, many companies are unable to quantitatively determine in advance whether "implementing improvements will truly lead to profits," leading to hesitation in adopting DX and AI.

On The Links Inc. (Headquarters: Hiroshima City, Hiroshima Prefecture, Representative Director: Seiya Higashi) has launched the pre-implementation diagnostic service "YUKAITM Profit Simulation Service" to address this challenge.

This service simulates the improvement effects of applying the autonomous AI logistics OS "YUKAI"'s demand forecasting and inventory optimization engines, based on a company's sales, procurement, and inventory performance data from the past three years, reproducing the current ordering and inventory operations at a daily level. It quantitatively visualizes the profit improvement potential through inventory reduction, stockout prevention, opportunity loss reduction, and storage cost savings. The analysis results are provided as a report in as little as two weeks, supporting decision-making for AI logistics implementation.

Background: The End of the Era of "Holding Ample Inventory for Peace of Mind"

The business environment surrounding companies is undergoing significant changes, including rising logistics and labor costs, and increased inventory holding costs due to rising interest rates. While the conventional wisdom was that "holding ample inventory provides peace of mind by preventing stockouts," inventory now represents a management challenge that ties up capital.

Many companies operate with safety stock set at a higher level and fixed replenishment rules such as "order only what has been sold." However, in many cases, the impact of resulting excess inventory, storage costs, and opportunity losses is not quantitatively understood from a profit perspective.

Furthermore, logistics operations often still rely on the experience and intuition of veteran order planners. With labor shortages and generational shifts, this reliance on individual expertise poses a new management risk.

Meanwhile, expectations for optimization through AI and logistics systems are growing. However, limited means exist to quantitatively determine "how much profit will be improved for our company" before implementation, making the lack of visible return on investment a major hurdle for DX promotion.

Originally, logistics holds untapped profit potential. Future logistics DX requires visualizing the profit improvement opportunities present in daily logistics activities such as stockouts, inventory, storage costs, and ordering accuracy, and connecting this to management decisions.

Service Overview: Visualizing "Untapped Profit in Logistics" from Actual Data

This service is not a diagnosis that applies industry averages or other companies' case studies. It simulates logistics at a daily level based on each company's sales, procurement, and inventory performance data to quantitatively visualize "untapped profit in logistics."

A sample report visualizing hidden logistics losses numerically.

The report provides the following:

Visualizes Untapped Profit in Logistics in Monetary Terms Quantifies profit improvement potential by comprehensively analyzing stockout rates, inventory turnover, inventory capital, storage costs, and opportunity losses.

Identifies Ordering Patterns That Hinder Profitability Extracts operational issues from data that pressure profits, such as "order only what has been sold," "excessive safety stock," and "high-frequency ordering."

Compares Optimal Balance Between Profit and Stockout Risk Compares multiple scenarios for different service levels to present the optimal inventory strategy for your company.

Quantitatively Estimates Profit Improvement Effects Simulates the impact on profits from three indicators: throughput, inventory, and operational expenses (TOC: Theory of Constraints).

Specifies Improvement Priorities Analyzes improvement effects on a per-product basis and proposes a phased implementation roadmap, indicating which products to start with.

Demonstration Results

A simulation using actual data from a daily goods manufacturer (F company, approximately 30,000 SKUs, 8 warehouses, sales of approximately 7 billion yen) showed potential to reduce stockouts by 15.2% while compressing inventory capital by 57.5% (approximately 470 million yen per month). Furthermore, scenarios that simultaneously improve the four indicators of stockouts, opportunity losses, inventory capital, and storage costs were confirmed with actual data.

Representative's Comment

Logistics is not for cost reduction. It is a management resource for generating profit. However, many companies make investment decisions without seeing this profit improvement potential.

We developed this service with the philosophy of "Please look at the numbers first before making a decision." We quantitatively show the profit improvement potential from your company's actual data, not from industry averages or other companies' case studies.

Dr. Goldratt's TOC (Theory of Constraints) defines the goal of a company as "increasing the money coming in, decreasing the money tied up, and decreasing the money going out." The YUKAI Profit Simulation Service visualizes this concept using your company's actual data.

Please decide whether to implement it after reviewing the numbers. That is our confidence.

Why Can We Offer This Service for a Flat Fee of 300,000 Yen in Two Weeks?

Traditionally, such logistics diagnostics have often taken several months, primarily through individual consulting, and have cost over 1 million yen.

The YUKAI Profit Simulation Service can be offered for **a flat fee of 300,000 yen (excluding tax) in two weeks** because we have standardized and automated the analysis process while maintaining quality.

This is supported by the following three factors:

1. Standardization of Analysis Process Through demonstrations, we have standardized the entire process from data analysis to report creation, building a highly reproducible analytical foundation.

2. Automation of Operations with Generative AI By utilizing AI in each stage of data verification, analysis, and report creation, we provide high-quality analysis in a short period.

3. Operational Know-how Cultivated Through Actual Projects We have incorporated know-how accumulated from actual projects, such as confirmation items and pre-processing when receiving data, into our system, minimizing rework during implementation.

This price and speed are not a result of compromising quality. They are the outcome of an analytical foundation and operations refined through demonstrations and actual projects.

Method and Steps for Analyzing Profit Improvement Effects

Features of This Service

1. Quantifies Profit Improvement Potential in the Logistics Domain

2. Analyzes Using Only Your Company's Actual Data

3. Flat Fee of 300,000 Yen for Two Weeks

4. Full Diagnostic Fee Credited Towards Implementation Within Six Months

Differences from General Analysis Services

The YUKAITM Profit Simulation Service is not a diagnostic aimed at proposing logistics improvements or selling systems. It is a service that quantitatively visualizes profit improvement potential using your company's data before implementation to support investment decisions.

1 Analysis Using Your Company's Actual Data, Not Industry Averages Instead of estimates based on case studies or benchmarks, we simulate sales, inventory, and procurement performance at a daily level for each company to calculate "how much profit can be improved internally."

2 Evaluation Based on "Profit Improvement," Not "Forecast Accuracy" Management results cannot be measured by AI's forecast accuracy alone. YUKAITM evaluates the impact on profits based on three indicators: throughput, inventory, and operational expenses, following the principles of TOC (Theory of Constraints).

3 Leads to Operation, Not Just Diagnosis The service levels, safety stock, and reorder points (ROP) calculated during the diagnosis can be used as initial settings when implementing YUKAITM. The effects can be continuously monitored using the same KPIs after implementation, so the diagnosis does not end with a one-time report.

4 Offered at a Minimum of Two Weeks and a Flat Fee of 300,000 Yen We provide high-quality analysis in a short period and at a low cost through the standardization of analysis processes and the use of generative AI. We achieve both speed and quality through an analytical foundation cultivated in actual projects.

Frequently Asked Questions

Q. What specifically can be understood from this report?

It quantitatively visualizes the untapped profit in your company's logistics based on actual data. In addition to current analysis of stockout rates, inventory capital, storage costs, and opportunity losses, the report provides profit improvement potential, optimal service levels, and product groups that should be prioritized for improvement.

Q. Do I have to implement YUKAITM after receiving the report?

No. There is no obligation to implement. The report is a standalone diagnostic service. Please make your decision after reviewing the diagnostic results. If you implement YUKAI within six months of receiving the report, the diagnostic fee of 300,000 yen (excluding tax) will be fully credited towards the initial implementation costs.

Q. What kind of companies are eligible?

Any company that possesses sales, inventory, and procurement data for each product can use this service, regardless of industry. It is suitable for companies managing multi-item inventory, such as wholesale, retail, manufacturing, and e-commerce businesses.

Q. What is YUKAITM?

It is a logistics system AI development platform (autonomous AI logistics OS). It applies Dr. Goldratt's TOC (Theory of Constraints) to the logistics domain, optimizing 1 delivery instructions (automatic selection of optimal warehouse/carrier), 2 optimal inventory placement, and 3 optimal order quantities to minimize integrated logistics costs and generate "profit."

Company Overview

Company Name: On The Links Inc. Representative: Seiya Higashi, Representative Director Location: 2-8-2 Otemachi, Naka-ku, Hiroshima City, Hiroshima Prefecture, Fuja's Hiroshima Otemachi Building 8F Established: 1999 Capital: 10 million yen Number of Employees: 22 Business Description: Planning, development, and sales of logistics DX solutions that transform logistics

Product URL: https://www.onzalinx.co.jp/yukaitukai/index.html Company URL: https://www.onzalinx.co.jp/

Contact for Inquiries Regarding This Release

For Media Representatives On The Links Inc. Public Relations: Konishi TEL: 082-569-8135 Email: [email protected]

For Product Inquiries On The Links Inc. Sales Department: Kobayashi TEL: 03-6870-6646 Email: [email protected]