How did a missing driver become a salesperson's delivery job?
KSK is a pharmaceutical wholesaler serving hospitals and pharmacies across Japan's Kansai region, with 32 sales offices and three logistics centres. It operates under tight delivery windows and verification requirements. When a regular delivery employee was unexpectedly absent, KSK kept medicine supply moving by rearranging assignments manually and asking sales staff to make some deliveries.
That is not simply a shortfall inside the logistics team. Every hour a salesperson spends covering deliveries may be an hour unavailable for customer relationships and their original responsibilities. Covering an urgent order is not inherently wrong. The strategic question is how often a disruption in one business function consumes the capacity of another.
What precisely did the reported 60% measure?
On October 22, 2026, Hitachi and KSK said a proof of concept completed at the end of September had produced a calculated 60% reduction in the amount of delivery-cover work performed by sales staff. Rather than manually giving all of an absent driver's stops to other delivery staff and salespeople, the system reassigned those stops to other viable routes. Hitachi's release explicitly says the calculation was based on driver operating conditions at the target branch.
The number is not a 60% reduction in KSK's total delivery cost, delivery headcount, or the workforce of 32 offices. It does not establish a corresponding increase in sales revenue. Nor has every branch achieved the same result. Reading the denominator correctly reveals the operational problem: a substitute task had spilled into a department whose main work was different.
Why retain fixed routes if the software can optimize routes?
Hitachi's Hitachi Digital Solution for Logistics (HDSL) uses a capability called Point Dynamic. In ordinary operations, drivers keep their familiar fixed routes. If a driver absence is detected, a routing engine reallocates the unserved stops to other available routes. It does not replace every route from scratch on every working day.
A familiar route can embody practical knowledge of hospital entrances, delivery procedures and customer time windows that a pure shortest-path calculation may not fully capture. Keeping stable operations intact while changing the exceptional portion can reduce unnecessary disruption, although the announcement does not independently benchmark every fixed-route strategy against full daily optimization. The design is deliberate: preserve what works and reconfigure what breaks.
The shortest route may be impossible to execute
Medicines cannot always be dropped off at the closest address whenever a vehicle happens to be nearby. Delivery windows, vehicle-entry rules, shipment size, other routes' spare capacity and the available drivers and vehicles constrain a feasible plan. Hitachi says Point Dynamic checks these conditions when deciding whether stops from an uncovered route can be assigned elsewhere.
For example, another vehicle might be geographically close but already loaded or committed to an earlier hospital deadline. The practical goal is a route that can meet actual obligations, not simply the lowest number of kilometres. The public release does not claim that the system can solve every shortage. If staff, vehicles or time are truly insufficient, routing software cannot create the missing resources.
The digital foundation started a year before the headline result
In September 2025, Hitachi and KSK described earlier work connecting HDSL with Hitachi's integrated logistics management system, HITLUSTER. A pilot at KSK's Osaka branch aimed to digitize dispatch inspection, medicine handovers, receiving records and warehouse-to-delivery work history. That created a basis for understanding the work that normally depended on experienced managers and manual records.
The September 2026 dynamic rerouting proof of concept came after that foundational work. Banseog reads the sequence as: record the work, standardize relevant constraints, then use those constraints for operational decisions when something unexpected occurs. Data collection alone does not create efficiency, but planners need information about stops, delivery commitments and available capacity before they can credibly adjust assignments.
Electronic acceptance is a second, separate form of task completion
The project also includes NFC-card-based proof of delivery. A driver scans a customer's NFC card with a smartphone, allowing the system to match registered receiving information and store the time and evidence of the handover. The aim is to reduce paperwork, matching and archiving while improving traceability.
A driver arriving at a hospital is not equivalent to medicine being received by the correct party. Dynamic routing determines how to reach the destination; electronic acceptance helps establish that the transaction was completed and recorded. These are complementary functions. The announcement is not evidence that NFC has already been adopted at all 32 offices or eliminated all delivery errors.
Hours returned to sales do not automatically become higher sales
Lower cover-delivery labour could give sales employees more time for the customers and activities they are meant to handle. But a 60% reduction in substitute work does not imply a 60% rise in sales or even a measured increase in customer-facing time spent productively. Those outcomes need their own observations after deployment.
The reverse question matters too: was the work simply pushed onto delivery drivers who were already overloaded? If other routes incur excessive overtime or missed service windows, one department's improvement may hide a cost elsewhere. A serious evaluation should combine sales cover hours with total delivery effort, on-time fulfilment, overloaded routes, exception handling and customer service results. The proof of concept does not establish all these downstream outcomes.
November is the beginning of rollout, not proof of results at 32 sites
Hitachi and KSK plan to start deploying dynamic rerouting and NFC-based electronic receipt progressively at KSK branches from November 2026. KSK's 32 offices describe the company's wider footprint; they were not all part of the 60% pilot calculation. Different customer geography, driver availability and delivery commitments could change results across locations.
Hitachi has broader ambitions for HMAX Industry and for eventually integrating warehouse, delivery and even physical AI capabilities. But the evaluated 2026 project was not a robot delivering pharmaceuticals. What was tested was condition-aware reassignment and electronic receipt. Its next commercial test is whether stable delivery quality and reduced cross-department cover labour can be reproduced across different real-world branches.
BANSEOG VIEW
BANSEOG VIEW | The real shortage may be work displaced into the wrong department
This case starts with an absence in deliveries reducing the time sales staff could spend on sales. The lesson is not that hiring more delivery workers is unnecessary; it is that employers should distinguish a true capacity deficit from an assignment problem created by disruptions.
Retaining everyday fixed routes while reallocating uncovered stops is different from trying to optimize everything every day. The 2025 data-digitization foundation and the 2026 exception-handling pilot also show why execution sequence matters.
Sixty percent refers to sales cover-delivery effort calculated from conditions at a target branch, not realized savings across KSK. For other firms, the useful question is: when someone is absent, which other department stops doing its own work to cover the gap?
SOURCES
Primary sources and references
- Hitachi and KSK — pharmaceutical routing proof of concept (Oct 22, 2026)
Primary account of 60% calculation, point-dynamic logic, delivery constraints, NFC and rollout plan.
- KSK — official route-replanning release (Oct 22, 2026)
Pharmaceutical wholesale operations, targeted proof of concept and scope of sales cover work.
- Hitachi and KSK — initial logistics digitalization agreement (Sep 10, 2025)
HDSL/HITLUSTER integration, scanning and proof-of-delivery digitization in Osaka.
- IT Leaders — KSK reroutes medicine deliveries during driver absences
Independent technical description of the driver-absence replanning use case.
- MONOist — Hitachi/KSK dynamic routes and electronic receipt
Point Dynamic and NFC with future Physical AI direction differentiated from current rollout.
- Mynavi TECH+ — 60% sales cover-work proof of concept (Oct 22)
Calculation based on the target branch and planned phased rollout from November.
Oct 24 2026. The 60% sales cover-delivery work reduction was calculated from driver availability and conditions at target pilot branch, not total logistics cost or all 32 sites. PoC completed Sep 2026; rollout begins progressively Nov 2026. HDSL Point Dynamic maintains routine fixed routes and replans on absence. NFC receiving records are separate; 2025 Sep Osaka HDSL/HITLUSTER project predates pilot. KSK owns 32 offices and 3 logistics centres, not all in pilot. Do not assert improved sales revenue, fewer workers, completed rollout, physical robot courier or across-the-board cost savings.