Thursday, September 25, 2014

Unable to deliver despite enough stock: the logistics industry with increasing worries.

Now there is a possibility of being unable to deliver across Japan, even though there is enough stock. Why has such a situation come to be feared?

As a matter of fact, it is thought that it is because of the influence of new truck regulations. This time we will explain the impact on the logistics industry of enforcing new regulations, and the changes from it.


Administrative standards with the expanding range of apply. 

Ministry of Land, Infrastructure and 
Transport, underwent audit policy and/or administrative punishment 
standards focusing on bus, taxi, and truck. The following is an example 
of those. It was only for buses until now, by trucks become the target, 
shock waves get through logistics industry.

1.    Working hours are basically13 hours.
16 hours are the maximum even if it is an irregular case.
2.    Working hours exceeding 15 hours can be up to twice a week.
3.    A daily rest break including sleeping hours must be 8 hours and above.
4.  Driver who has involved in driving long distance is not allowed to have long-distance driving until next week.
 
According to a lot of accidents of truck and bus by driver’s tiredness, the amendments as this time have been made. If the violation to this law has been made, the company will be suspended for its business. This means nothing but been sentenced to close the business.


Small-medium and micro enterprises in danger. 

A leading company may be able to deliver, even long distance, because it has many drivers, in the same manner as before, by a plan such as work shift of two people. However, for micro-enterprises and small and medium-sized enterprises, it is not so easy. Having more drivers gains extra costs of the equivalent amount. Gaining extra costs enforces price raise. However the owner tries to escape from its burden. This is really a vicious circle indeed. It is also the fact that many companies don’t care about it till now, but the first disposition has been made to one company in Kanto region this June. The companies from those have seen this, the companies which apt to avoid long-distance delivery have been increasing.

For example, the physical distribution will decrease if companies which can deliver vegetables of Hokkaido or Kyushu to Kanto region are getting less. It is unable to deliver because the cost is not appropriate even though there are offers. A negative spiral has been beginning bit by bit in the logistics industry.


The logistics industry in danger: even G8 moves.

The leading logistics companies are in the same situation having a sense of danger. The industry of leading logistics companies held a conference in May according to the reason that the way in the same manner as before will not be acceptable 10 years later. They gave ideas each other for surviving 10 years later. Through this conference, it was reportedly said that there were many ideas, which have never been thought out before, such as joint transportation which multiple deliver companies put their goods into one freight.


From focusing on cost to safety. 

It is not very easy to change the idea to focusing on cost, for this public environment of placing importance on safety. It means that the logistics industry, which has been focusing on cost until now, has been required change and innovation. It can be said that the existing system is almost at the end of limit.


As ideas that came out at a meeting of G8 of the logistics industry, in the future, it is required to regard as "partners", to take off the notion of competitors, to take each other’s hands, and to continue to provide the services. For example, it can be cited to make a system that provides free space information of the loading platform, to share information, and to utilize free space effectively. In order to keep up with this trend, we need to take a close contact with each logistics company, and need to consider measures of survival as well as building a partnership.




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