Keiko SatoChief Information Officer · Essays & perspective

Keiko Sato · Chief Information Officer · Japan

Six appointments on both sides of the systems contract

APPOINTMENT 1 / Apr 2021 — Present

Executive Officer and Chief Information Officer

Seriyama Logistics Holdings

Sector
Domestic trucking, contract warehousing, sequenced automotive-parts logistics and Asian forwarding
Ownership
Listed on the Prime Market of the Tokyo Stock Exchange; founding family's asset company holds 16 per cent
Company scale
¥214.0 billion revenue and ¥9.6 billion operating profit in the year to March 2026
Employees
11,800, including 4,700 drivers
Geography
Nagoya headquarters; 68 depots and 41 warehouses across Chubu, Kanto, Kansai and Kyushu; forwarding offices in Thailand and Vietnam
Reporting to
President and CEO; presents to the board twice a year and reports annually to the Audit & Supervisory Board
Team
220: 58 in group IT and 162 in Seriyama Information Systems; seven direct reports
Financial scope
Annual IT budget of ¥4.3 billion (¥3.0 billion run, ¥1.3 billion change) plus the ¥7.4 billion settlement renewal programme

Mandate

Renew the legacy settlement platform before its maintenance ends, prepare dispatch for the April 2024 working-hours rules and reduce the group's dependence on outside integrators for design.

Outcomes

  • Migrated three of four business lines off the legacy settlement platform; billing disputes fell from 1,900 a month to 620.
  • Built dispatch that refuses assignments breaching statutory hours; no line-haul driver exceeded the 960-hour cap in two years.
  • Cut average waiting at 41 data-sharing shipper sites from 112 to 44 minutes.
  • Contained a vendor's ransomware attack in November 2024 with no encryption in Seriyama's environment.
  • Brought requirements, architecture and data design in-house, building a design team of 46.

Decisions in context

I was appointed executive officer and CIO in April 2021, two months after the board approved the phased settlement renewal I had designed as general manager. The appointment brought the whole technology function under me, and in June 2022 I also became representative director of Seriyama Information Systems, the subsidiary that employs most of our engineers. The first two years were dominated by preparation for April 2024: modelling drivers' hours, building the dispatch planning system and working with operations on the relay network that made the limits keepable. The settlement renewal ran alongside, wave by wave. The ransomware attack on our warehouse vendor in November 2024 tested the resilience work we had begun and showed where it was incomplete. I lead 220 people with seven direct reports and present to the board twice a year, but I am not a director of the holding company.

Reason for the move

Current role. Not seeking an executive move; considering one outside directorship with the board's consent.

APPOINTMENT 2 / Sept 2016 — Mar 2021

General Manager, IT Planning Department

Seriyama Logistics Holdings

Sector
Domestic trucking, contract warehousing and automotive-parts logistics
Ownership
Listed on the First Section of the Tokyo Stock Exchange; founding family's asset company held about 18 per cent
Company scale
¥176 billion revenue in the year to March 2020
Employees
10,400
Geography
Nagoya headquarters; 61 depots and 34 warehouses in Japan; a forwarding office in Bangkok
Reporting to
Executive officer responsible for administration; regular presentations to the President on the renewal plan
Team
31 in the planning department; functional oversight of about 140 in the IT subsidiary
Financial scope
Planning and vendor management for an IT budget of about ¥3.4 billion a year; no approval authority above ¥50 million

Mandate

Assess the condition of the group's systems and vendor contracts, and propose how to renew the settlement platform before its maintenance ended.

Outcomes

  • Produced the first inventory of the group's 212 applications, their owners and their vendors.
  • Designed the phased settlement renewal, approved by the board in February 2021 at ¥7.4 billion.
  • Renegotiated three maintenance contracts, saving ¥260 million a year and requiring disclosure of subcontracting tiers.
  • Recruited the first nine members of an in-house architecture team.

Decisions in context

Seriyama hired me in September 2016 as general manager of IT planning, a mid-career appointment the company rarely made at that level. My brief from the President was to tell him what the company had stopped seeing. The answer took two years to assemble: 212 applications, many owned by nobody, maintained under contracts that had been renewed without review, with knowledge concentrated in a handful of subcontractor engineers. At the centre was the settlement system I had helped to write at Kotoshiro, now on hardware whose maker had announced the end of maintenance. I designed a phased replacement, kept design in-house and tested the plan with the CFO, sales and operations before it reached the board. I also renegotiated three maintenance contracts, saving ¥260 million a year, and began recruiting the architects who now lead the renewal.

Reason for the move

Promoted to executive officer and CIO.

APPOINTMENT 3 / Jan 2012 — Aug 2016

Regional IT Director, Asia (based in Bangkok)

Amabe Industries

Sector
Automotive components: seat frames, door mechanisms and window regulators
Ownership
Listed on the First Section of the Tokyo Stock Exchange; an automaker held about 20 per cent
Company scale
About ¥410 billion group revenue in the year to March 2016, of which Asia ¥96 billion
Employees
About 17,000 in the group; 5,200 in Asia
Geography
Seven plants in Thailand, Indonesia and Vietnam, with a regional office in Bangkok
Reporting to
President of the Thai regional subsidiary; functional line to the group CIO in Okazaki
Team
64 across seven plants; five direct reports
Financial scope
Regional IT budget of about 410 million baht a year, plus a one-off flood recovery budget

Mandate

Restore systems at the flooded Thai plant, then standardise production, EDI and finance systems across the region's plants.

Outcomes

  • Restored order receipt and shipping-notice exchange at the flooded plant within eleven weeks of arrival.
  • Moved the region's servers from plant buildings to two data centres on higher ground.
  • Brought seven plants onto one production and EDI template, cutting customer delivery-instruction errors by 70 per cent.
  • Built a regional team in which four of five managers were Thai or Indonesian nationals by 2016.

Decisions in context

The floods of late 2011 inundated industrial estates north of Bangkok, including Amabe's largest Thai plant. I arrived in January 2012 to restore its systems and stayed four and a half years as regional IT director for seven plants in Thailand, Indonesia and Vietnam. The first months were recovery: the plant's server room had been under water, and its customers' assembly lines were waiting for parts and for the shipping notices that told them what was coming. We restored the exchange within eleven weeks. The longer work was standardisation, bringing seven plants with different histories onto one production and EDI template, and moving servers out of plant buildings. I also served as a director of the Thai regional subsidiary. I learnt working Thai and built a team whose regional managers were mostly local by the time I left.

Reason for the move

Wanted to lead technology for a company whose core business was logistics, and was approached by Seriyama.

APPOINTMENT 4 / Jul 2007 — Dec 2011

Manager, Supplier Delivery Systems

Amabe Industries

Sector
Automotive components
Ownership
Listed on the First Section of the Tokyo Stock Exchange; an automaker held about 20 per cent
Company scale
About ¥350 billion group revenue in the year to March 2011
Employees
About 15,000
Geography
Okazaki headquarters; plants in Aichi and Shizuoka, Thailand and Indonesia
Reporting to
General manager, information systems
Team
18; three direct reports
Financial scope
Systems budget for production logistics of about ¥600 million a year

Mandate

Run and improve the systems that received delivery instructions from assembly-plant customers and returned shipping notices.

Outcomes

  • Replaced fax-based delivery instructions from two customers with electronic exchange.
  • Cut the time from receiving a sequence change to updating the loading plan from forty minutes to six.
  • Led systems recovery for two Aichi plants' customer links after the March 2011 earthquake disrupted supply.

Decisions in context

I moved to the client side in July 2007, joining Amabe Industries in Okazaki to run the systems through which its assembly-plant customers sent delivery instructions and received shipping notices. It was the other end of the exchange I had built for carriers at Kotoshiro, and it taught me how much a supplier's day depends on information arriving accurately and early. I replaced faxed instructions from two customers with electronic exchange and cut the time from a sequence change to an updated loading plan from forty minutes to six. The earthquake of March 2011 showed how fragile the whole chain was when suppliers further up lost power and people. Seven months later the Thai floods reached Amabe's largest overseas plant, and the company asked me to go to Bangkok.

Reason for the move

Sent to Bangkok to lead systems recovery after the 2011 floods, then appointed regional IT director.

APPOINTMENT 5 / Apr 2002 — Jun 2007

Project Manager, later Senior Project Manager, Transport and Distribution

Kotoshiro Systems

Sector
Independent systems integration and outsourced application maintenance
Ownership
Listed on the Second Section of the Tokyo Stock Exchange; no controlling shareholder
Company scale
About ¥120 billion revenue in the year to March 2007
Employees
About 4,800
Geography
Tokyo headquarters; Nagoya branch serving clients in Chubu
Reporting to
Head of the transport and distribution practice, Nagoya branch
Team
Up to 60 on the largest project, of whom 14 were Kotoshiro employees
Financial scope
Project budgets of ¥300 million to ¥1.8 billion; responsible for delivery against fixed-price contracts

Mandate

Deliver dispatch, settlement and warehouse projects for transport clients in Chubu.

Outcomes

  • Delivered six client projects, the largest a ¥1.8 billion warehouse system for a food distributor.
  • Introduced a register of subcontracted engineers' knowledge areas for each project.
  • Brought two loss-making fixed-price projects to completion within 4 per cent of revised budgets.

Decisions in context

From April 2002 I managed transport and distribution projects for Kotoshiro's Nagoya branch, first as project manager and from 2005 as senior project manager. The work taught me how Japanese systems are really built. On my largest project, a ¥1.8 billion warehouse system for a food distributor, fourteen of sixty engineers were Kotoshiro staff; the rest came from second- and third-tier subcontractors. I introduced a register recording which subcontracted engineers held knowledge of which components, because I had seen how quickly that knowledge left at the end of a contract. Two of my projects were loss-making fixed-price contracts inherited from colleagues, and I learnt how change requests become the real battleground of such contracts. I left in 2007 because I wanted to answer for how a system was used, not only for whether it was delivered.

Reason for the move

Wanted to be accountable for how systems were used, not only for delivering them.

APPOINTMENT 6 / Apr 1997 — Mar 2002

Systems Engineer, Transport and Distribution

Kotoshiro Systems

Sector
Independent systems integration
Ownership
Listed on the Second Section of the Tokyo Stock Exchange
Company scale
About ¥95 billion revenue in the year to March 2002
Employees
About 4,100
Geography
Tokyo headquarters; Nagoya branch from 1999
Reporting to
Project managers in the transport and distribution practice
Team
Individual contributor; led a sub-team of four from 2000
Financial scope
None

Mandate

Design and build components of dispatch and settlement systems for carriers.

Outcomes

  • Wrote the rate-calculation module of Seriyama's settlement system, which went live in April 2001.
  • Built a route-planning prototype from my master's research, later used in two client bids.
  • Moved from Tokyo to the new Nagoya branch in 1999 as one of its first six engineers.

Decisions in context

I joined Kotoshiro Systems in April 1997, straight from my master's degree, as a systems engineer in the transport and distribution practice in Tokyo. In 1999 I moved to the newly opened Nagoya branch as one of its first six engineers, and was assigned to the settlement system Kotoshiro was building for Seriyama, a regional trucking company. I wrote much of its rate-calculation module in COBOL, which went live in April 2001 and was still running when I returned to Seriyama fifteen years later. I also turned my master's research into a route-planning prototype that Kotoshiro used in two bids, though neither client bought it. From 2000 I led a sub-team of four. Those years gave me my first view of how a carrier's tariffs actually work, and of how few people on either side understood them.

Reason for the move

Promoted to project manager.

What I am looking for next

I am not seeking to leave Seriyama. The automotive wave of the settlement renewal moves in January 2027, and the work of extending data agreements to our partner carriers has only begun. I intend to see both through, and then to hand a stable function to a successor developed inside the company.

If I were later to consider an executive move, it would be to the CIO role of a larger Japanese group whose operations depend on a field workforce and on many small partner firms: a logistics group with national scale, a railway or bus group, or an infrastructure services company. I would look for a President who treats technology as part of operating risk, a board that wants difficult news early and a company willing to rebuild design capability rather than buy it back each decade. I would not consider a role that is mainly about running a large outsourcing contract.

Meanwhile my next chapter is on a board: one outside directorship at a listed company outside logistics and automotive supply, taken with my board's consent, where I can contribute on information security, operational risk and the use of workforce data.