Intralogistics | Daifukus away into the future: CTO Takuya Gondoh about strategy, innovation and artificial intelligence

Daifuku's path to the future: CTO Takuya Gondoh on strategy, innovation and artificial intelligence

The world is changing at a breathtaking pace. Artificial intelligence (AI) and other technological advances are increasingly shaping almost every industry. Particularly in the field of material flow systems, these innovations are opening up unprecedented opportunities to master complex challenges in logistics and production. Daifuku, a global leader in material flow automation, recognized this early on. Therefore, the company consistently invests in future-oriented technologies to drive its growth and offer its customers innovative solutions.

To provide deeper insight into how Daifuku utilizes cutting-edge technologies to achieve its ambitious goals, Daifuku conducted an insightful interview with Takuya Gondoh , the company's Chief Technology Officer (CTO) and head of the Business Innovation Division. Gondoh explained the company's strategic efforts to create real value for its customers and society through the development and implementation of groundbreaking technologies.

Suitable for:

• Urbanization and global supply chains from and for Japan: Why Daifuku – market leader in intralogistics – is recommended

The role of the CTO and the strategic direction of Daifuku

Gondoh described his central role as CTO as follows: His main task is to identify growth areas and societal challenges from a technological and research-driven perspective. Building on this, he aims to recognize potential applications for the company's technologies, develop comprehensive research and development strategies, and invest in the foundations for innovation. Through this strategic approach, Gondoh intends to actively drive the development and introduction of advanced technologies and the creation of new business areas. Ultimately, all of this serves the overarching goal of realizing Daifuku's long-term vision, "Driving Innovative Impact 2030.".

For Daifuku, this vision is more than just a slogan; it embodies the company's profound commitment to innovation and its ambition to play a key role in shaping the future of material handling technology. “Driving Innovative Impact 2030” is a guiding principle that directs the entire company in its strategic decisions and operational processes.

In the interview, Gondoh emphasized that Daifuku's past success was largely based on the company's ability to listen attentively to its customers' needs. This customer-centric approach forms the foundation of the company culture. Building on this understanding of customer requirements, Daifuku developed specific research and development strategies in its various business units to create tailored solutions. These strategies led to the development and implementation of highly specialized technologies that proved their worth in practice and gave customers a genuine competitive advantage.

Over the years, each of Daifuku's business units has accumulated a considerable wealth of specialized technological know-how, comprehensive knowledge, and unique skills. This expertise is a crucial competitive advantage and enables Daifuku to meet even complex and individual customer requirements.

Examples of AI applications in various business areas of Daifuku

To illustrate the concrete application of AI technologies, Gondoh cited some impressive examples from Daifuku's various business areas:

Manufacturing and distribution industry

In these industries, Daifuku has developed AI-based image processing for picking robots. These intelligent robots are able to visually recognize, grasp, and sort products, significantly increasing efficiency and accuracy in warehouses and logistics centers. Additionally, AI-driven order processing for mixed pallet loading has been implemented. This technology optimizes the loading process for pallets containing different items, which is crucial in modern logistics where increasingly customized orders need to be assembled. The AI ​​analyzes the orders, calculates the optimal packing sequence, and thus ensures maximum utilization of loading space and minimizes transport damage.

Suitable for:

• Daifuku Europa: Automation of intralogistics through Autonomous Mobile Robots (AMR) and Automated Guided Vehicles (AGVs)

Semiconductor production

Daifuku also relies on AI to increase efficiency in the highly sensitive production lines of the semiconductor industry. Specifically, AI is used to optimize the route planning of overhead transport vehicles (OHTs) that transport wafers – the basis for microchips – between the various processing stations. Efficient route planning is essential in this area because the production processes are highly complex and time-critical. By optimizing transport routes with AI support, throughput times can be shortened, production capacities increased, and costs reduced. Furthermore, AI helps to avoid potential bottlenecks and ensure a smooth production flow.

Pharmacies

AI is playing an increasingly important role in healthcare, particularly in pharmacies. Daifuku is using AI to improve the accuracy of prescription verification systems developed by its electronics business unit. Prescription verification is a critical process in pharmacies, as errors in medication prescriptions can have serious consequences for patients. AI-based systems can support pharmacists in this task by automatically analyzing prescriptions, detecting potential errors or inconsistencies, and thus increasing the safety and efficiency of medication dispensing. These systems can, for example, detect drug interactions, uncover dosage errors, or verify whether a medication is suitable for a particular patient.

These examples illustrate the diverse range of applications for AI across Daifuku's various business areas. They also demonstrate that Daifuku is not only focusing on AI in a specific sector, but is pursuing a comprehensive strategy to leverage the potential of this technology in all relevant areas.

Promoting cooperation and knowledge exchange within Daifuku

Gondoh pointed out, however, that despite their extensive expertise, Daifuku's individual business units often develop similar technologies independently. To create synergies and accelerate development processes, he sees his role as CTO as also including fostering collaboration between the company's business units. The targeted exchange of knowledge and experience should make it possible to develop technologies and implement them in practice even faster.

This comprehensive collaboration is a crucial factor in Daifuku's innovative strength. By pooling the expertise of its various business units and fostering open communication, the company avoids duplicate development efforts, uses resources more efficiently, and brings new, innovative solutions to market faster. This approach is particularly important in a time of rapid technological change, as it enables Daifuku to remain agile and adapt quickly to new developments.

Daifuku's company-wide initiative to address long-term challenges

To further strengthen Daifuku's innovative capacity and prepare the company for future challenges, a company-wide initiative was launched in 2023. This project aims to identify, visualize, and then systematically address long-term business challenges.

A key aspect of this initiative is ensuring that the discussions do not remain purely theoretical, but rather lead to concrete action. To guarantee this, a diverse team of employees from various business units and central functions has been assembled, ranging from junior managers to department heads. This diversity of perspectives and experiences is crucial for gaining a comprehensive understanding of the challenges and developing practical solutions.

Four subcommittees were formed for the project, each focusing on specific areas: strategic planning, AI development and promotion, personnel and process management, and shared infrastructure.

The work of the Daifuku subcommittees in detail

Each of the four subcommittees plays an important role in implementing the company-wide initiative and contributes in its own way to preparing Daifuku for the future.

Strategic planning

This committee focuses on identifying technologies that will be of strategic importance to Daifuku over the next 10 to 20 years. Based on future projections and trend analyses, technologies are identified that should be prioritized for future research and development activities. The work of this committee is crucial to ensuring that Daifuku not only responds to current customer needs but also proactively anticipates technological developments and positions itself early in promising future fields. This requires a forward-thinking approach and the ability to recognize disruptive technologies and their potential impact on the material handling industry.

AI development and promotion

This committee is responsible for selecting and implementing AI development topics that can be applied across all of Daifuku's business units. The goal is to unlock the potential of AI technologies company-wide and leverage synergies. The committee identifies AI use cases that can create added value for various business units and coordinates the development and implementation of corresponding solutions. This can include, for example, the development of generic AI models or tools that can be adapted and used by different business units. Furthermore, the committee plays a key role in promoting knowledge sharing and best practices in the field of AI within the company.

Personnel and process management

This committee is dedicated to the important task of reviewing and updating the competency profiles of Daifuku's technical staff. Given the rapid pace of technological change and the increasing importance of fields such as AI, robotics, and data analytics, it is crucial that employees possess the necessary skills and knowledge to effectively utilize these technologies. The committee analyzes the current competencies of technical staff, identifies skills gaps, and develops measures for further training and skills development. These measures include, for example, creating skill maps, defining training programs, and promoting lifelong learning. The goal is to ensure that Daifuku has a highly skilled and future-oriented team of technical experts.

Shared infrastructure

This committee is working on creating a data infrastructure that improves data exchange and usage across the entire company. In today's data-driven world, an efficient data infrastructure is crucial for the success of a company like Daifuku. It enables the aggregation, analysis, and use of data from various sources to inform decision-making. The committee is developing a shared data platform that allows all Daifuku departments to access, share, and collaboratively use relevant data. This fosters transparency, improves collaboration, and enables the development of data-driven innovations. Furthermore, the committee addresses data security and privacy issues to ensure that the data infrastructure meets the highest standards.

Each subcommittee consists of four to five members and typically meets twice a month. Gondoh places great importance on the work of the committees and tries to attend all meetings to monitor progress, provide input, and ensure the initiative achieves the desired results. His active participation underscores the importance Daifuku attaches to this initiative and demonstrates that innovation and strategic development are top priorities within the company.

Suitable for:

• How innovative refrigeration logistics solutions from Daifuku address warehouse and labor challenges in the frozen food industry

Promoting a future-oriented mindset within Daifuku

A key aspect of Gondoh's efforts is fostering a future-oriented mindset among all Daifuku employees. He emphasized that the company's previous approach to product and technology development was highly customer-centric and rather short-term focused. Development cycles typically centered on a period of just a few years. However, groundbreaking innovations require a longer-term, forward-looking approach. It is essential to anticipate future business opportunities early on and develop technologies to capitalize on these opportunities.

To achieve this transformation in employee mindset, Daifuku is implementing various measures. A key component is raising employee awareness of the importance of innovation and long-term strategic planning. Through internal communication campaigns, training sessions, and workshops, employees are encouraged to think outside the box, develop new ideas, and actively participate in shaping Daifuku's future.

Gondoh happily reported that the subcommittee members have already internalized this forward-looking mindset and are proactively sharing information and generating new insights and ideas. He hopes that this positive trend will extend to all employees of the company in the future. To accelerate this change throughout the organization, Daifuku is focusing on creating "early wins" that motivate employees and demonstrate the potential of innovation.

Daifuku's internal AI system as an accelerator for innovation

A key instrument for fostering a future-oriented mindset and accelerating innovation is the development of a company-wide AI-powered system. This system will be deployed across all of Daifuku's business units and will comprise three key functions:

Similar problem case search

This function aims to reduce response times in the event of system failures. To achieve this, a comprehensive database of past system failures is being built. Using AI, relevant error cases are quickly identified and made available to employees. By converting implicit knowledge (the experiential knowledge of experienced employees) into explicit knowledge (stored in the database), even younger and less experienced employees will be able to restore systems as quickly as their more experienced colleagues. This leads to a significant reduction in downtime and an increase in system availability. Furthermore, the function contributes to knowledge retention and transfer within the company.

Digitized inspections

This function utilizes sensors to digitize vibrations and other operational data from systems and machines. The collected data is then analyzed using AI to detect potential failures early and ensure stable operation. This predictive maintenance enables maintenance work to be planned and carried out proactively before unplanned breakdowns occur. This reduces downtime, lowers maintenance costs, and extends the lifespan of the equipment. Furthermore, the digitized inspection data can be used to optimize plant efficiency and continuously improve production processes.

AI chatbot for manuals

This feature provides an intelligent chatbot that accesses an extensive database of company manuals. Employees can ask the chatbot questions on various topics and receive immediate, precise answers. This facilitates access to relevant knowledge, saves time searching for information, and relieves experienced employees of repetitive inquiries. The AI ​​chatbot thus acts as a "digital knowledge assistant," available to Daifuku employees anytime, anywhere, helping them to perform their work more efficiently. Furthermore, the chatbot contributes to centralizing and improving access to company knowledge.

Initial trials of some of these functions began as early as 2024 across various Daifuku business units. By creating a state-of-the-art system that can be deployed across all business areas, Daifuku aims to demonstrate the importance of future-oriented technologies and innovations to its employees and inspire them to embrace these topics. The internal AI system is thus intended not only to increase efficiency and productivity but also to serve as a catalyst for a broader culture of innovation within the company.

Talent development as the key to Daifuku's success

Gondoh emphasized that while digital transformation and the use of AI are crucial for transforming business operations and internal processes, there is a glaring shortage of skilled workers in these areas. Therefore, it is essential to focus on developing one's own employees in addition to recruiting external experts.

Daifuku pursues a comprehensive talent development strategy that includes various initiatives:

Company-wide e-learning programs on DX (Digital Transformation) and AI

These programs are designed to improve the digital skills and AI understanding of all Daifuku employees. They impart fundamental knowledge about digital technologies, data analysis, and artificial intelligence, enabling employees to recognize and utilize the potential of these technologies in their daily work. The e-learning programs are accessible to all employees and can be flexibly integrated into their workday.

D-Adapt Data Science Training Program:

This program is designed for select employees at key locations in Japan and provides them with advanced knowledge and skills in data science. Participants learn to identify challenges, use data effectively, and develop data-driven solutions. The program includes both theoretical foundations and practical exercises and case studies. The goal is to train participants to become data science experts capable of conducting complex data analyses and generating valuable insights for the company. Daifuku plans to expand this program to all its locations worldwide in the future to ensure that 10% of its workforce is trained in data science and AI.

These employee development initiatives aim not only to impart knowledge and skills but also to break down psychological barriers to advanced technologies. Through training and further education, employees are encouraged to engage with new technologies, reduce anxieties, and actively seize the opportunities of digital transformation. Daifuku recognizes that its employees are key to the success of digital transformation and therefore invests strategically in their training and skills development.

Gondoh's vision for the future of Daifuku

In closing, Gondoh spoke about his vision for Daifuku's future and his personal perspective as CTO. He emphasized that while technology is undoubtedly crucial, the company's economic success is equally important. Technological leadership alone is not enough. Even if Daifuku has a lead in certain technologies that will only become truly relevant in 10 to 20 years, the company must constantly consider how these technologies can contribute to business success.

This requires analytical thinking skills and the ability to identify problems, find solutions, and put those solutions into practice. Daifuku strives to foster a corporate culture in which employees actively seek out problems and solutions to create new added value. To achieve this, Daifuku not only relies on internal expertise but also promotes open innovation through partnerships with startups and universities. These collaborations are intended to further expand Daifuku's technological expertise and drive the company's growth in the medium to long term.

Gondoh's presentation provided a clear picture of Daifuku's strategic direction and its commitment to innovation. The company recognized the potential of AI and other advanced technologies early on and consistently leverages them to strengthen its competitiveness and offer its customers innovative solutions. At the same time, Daifuku places great emphasis on the development of its employees and fostering an innovation-friendly corporate culture. This comprehensive strategy positions Daifuku ideally to continue playing a leading role in the material handling industry and to significantly shape the future of logistics and production. The vision, "Driving Innovative Impact 2030," is more than just a motto – it is a promise to Daifuku's customers, employees, and partners that the company will continue to do everything in its power to make a positive contribution to society through innovation and to make the world a better place.

☑️ SME support in strategy, consulting, planning and implementation

☑️ Creation or realignment of the digital strategy and digitalization

☑️ Expansion and optimization of international sales processes

☑️ Global & Digital B2B trading platforms

☑️ Pioneer Business Development

Konrad Wolfenstein

I would be happy to serve as your personal advisor.

You can contact me by filling out the contact form below or simply call me on +49 89 89 674 804 (Munich) .

I'm looking forward to our joint project.

Xpert.Digital is a hub for industry with a focus on digitalization, mechanical engineering, logistics/intralogistics and photovoltaics.

With our 360° business development solution, we support well-known companies from new business to after sales.

Market intelligence, smarketing, marketing automation, content development, PR, mail campaigns, personalized social media and lead nurturing are part of our digital tools.

You can find out more at: www.xpert.digital - www.xpert.solar - www.xpert.plus