Joint delivery eases logistical burdens.
In the North American market where you do business, how do you deliver MFPs ordered by customers? With tight logistics caused by COVID-19, JBMIA (Japan Business Machine and Information System Industries Association) member OEMs and their direct sales companies have joined forces as is the norm in other markets worldwide and have recently started joint logistics in Hokkaido. That’s right, for the first time in the Japanese market, rival OEMs are jointly contracting trucks, loading each other’s MFPs on one truck, and delivering them to the respective company’s customers.
JBMIA members and direct sales organizations are partnering on deliveries amid reduced transportation capacity triggered by the shortage of drivers in the logistics industry, as well as stricter compliance with laws and regulations. By nature, MFPs have been a troublesome package in the logistics industry. MFPs are heavy, precision equipment and must be handled carefully. The burden on logistics has grown, especially since delivery is concentrated at the end of the month and the end of the fiscal year (mainly, the end of March in Japan), and the boom-and-bust logistics cycle is large. Further, OEMs are experiencing shorter lead times from ordering to delivery and accepting delivery even on the same day of ordering.
With delivery capacity declining, the logistics industry requested to review the delivery method of MFPs. Particularly problematic were deliveries to local areas with lesser population densities where deliveries are traditionally low and decrease further in the off-season. Traditional transportation methods were resulting in higher costs and risking delayed deliveries.
To solve logistics issues, OEMs kicked off the Reverse Logistics Committee in JBMIA in February 2019, established it as a formal committee in April 2021, and subsequently started discussions for the implementation of joint delivery. In November 2021, the Committee rolled out joint delivery in the northern Hokkaido area, beginning local delivery in a large area with low population density, which is the most effective for joint delivery. Next, the Committee plans to expand joint delivery throughout Hokkaido in November 2022, including the metropolis of Sapporo.
This new initiative was inspired by the success of a 1998 initiative by JBMIA’s Intravenous Logistics Project Committee. With that track record, JBMIA was able to launch arterial logistics in a short period of time. The agreements and trusted relationships among OEMs and contract transportation companies established through this initial phase allowed arterial logistics to be put into practice quickly when needed.
Joint delivery not only reduces delivery costs but also helps reduce CO2 emissions. Due to joint delivery in Hokkaido, the number of trucks and CO2 emissions has been reduced by about 15%. JBMIA estimates that it will be possible to reduce CO2 emissions by nearly 50% by further reviewing service levels.
Tetsuo Kubo is president of OA Life Co., Ltd., a publication serving the Japanese office technology marketplace.
_________________________
To become a subscriber, visit www.thecannatareport.com/register or contact cjcannata@cannatareport.com directly. Bulk subscription rates are also available upon request and included in our media kit.
