01 Physical Distribution
Comprehensive Program of Physical Distribution Policies
The Comprehensive Program of Physical Distribution Policies was approved by the Cabinet in 1997, with the objective of achieving logistics services that meet international standards, including cost, by the year 2001.The basic objectives are (1) to offer the most convenient and attractive logistics services in the Asia-Pacific Region, (2) to offer logistics services at reasonable cost which do not inhibit competitiveness in any industry or business, and (3) to reduce environmental burdens related to physical distribution. To achieve these objectives, the government will implement policies based on the following three principles: (1) Integrated approach through cooperation, (2) Response to the diverse needs of users, and (3) Market stimulation through competition. The program also set goals for each physical distribution area, including numerical and other policy targets. Measures to be taken across the physical distribution sector include improvement of infrastructure, deregulation, and advancements in logistical systems.
Reduction in physical distribution costs
As the world economy progresses toward globalization, Japan needs to improve the competitiveness of its domestic industries. The high-cost structure of domestic industries is a major impediment to achieving a competitive edge. Among areas attacting the most attention for this high-cost structure is logistics, and pressure is mounting to reduce these costs. Doing so will require improvements in basic infrastructure such as port, airport, and road facilities, as well as new logistics centers such as freight train stations and truck terminals. Finally, logistical efficiency must be improved through modal shifts and inter-modal transport. Reform in the "soft" aspects, including deregulation, will also be vital.
