7. 3 Physical Distribution Problem


7. 3. 1 Environmental Change in Physical Distribution

   Socioeconomic conditions have changed and, as a result, there has been a transition in the physical distribution.
   The trends in domestic transport demand are now reviewed. A protracted recession since FY1974 has reduced freight traffic for the past two years. Previously traffic demand had increased at an annual rate of about 10%. Later, demand increased but the growth rate was stagnant. (See Figure 8.)
   This is partly because the industrial structure is shifting its weight from the mining an manufacturing industry to tertiary industries whose demand for transport per added Wall is comparatively small and partly because even secondary industries are beginning to change to products of a higher degree of processing.
   On the other hand, the consignors are pressing the forwarders to prune distribution costs and streamline the distribution structure as they are experiencing hardships under business conditions which are far from good.
   While the consignors are taking advantage of free choice, the freight forwarders and truckers are struggling for shares of a small demand. The physical distribution industries who so far have been rather quantity-minded, feel constrained to push streamlining and modernization to survive the situation.
   Progress of physical distribution activities has brought about social problems, such as noise, gas emissions, and vibration along the roads. Considering that the resources and energy situation has been growing tighter, the physical distribution industry, in common with other industries, should promote energy-saving measures.
   Distribution circles are also required to improve working conditions to attract youths in order to employ skilled labor.

 


7. 3. 2 Future Problems

   As mentioned above physical distribution sector is under pressure and is facing the following pressing problems which must be solved as soon as possible:
a.  Restructuring into energy-saving pollution-free physical distribution system
   Motorization has progressed at a rapid pace and trucks presently in service total some 11 million carrying 37.0% (ton-kilometer basis) of domestic freight.
   It is expected that improved roads will further the growth of motorization. Motorization, while aggravating traffic congestion, is on a collision course with the limiting constraints of a finite environment and a fast dwindling stock of energy sources. In view of these factors, trucking must be reviewed and a proper alternate energy-saving pollutionfree system should be established to maximize traffic space efficiency and minimize traffic accidents.
   Firstly, such alternate transport means, high in energy and space efficiency with little adverse effects on the environment, should be used as much as possible.
   Secondly, the automobile itself must be improved so that it will operate at a high fuel economy rate with NOx concentration reduced to a tolerably small level. At present, it is of paramount importance to develop a pollution-free engine for large-sized trucks, though it is reported that it is very difficult to reduce NOx and noise levels simultaneously.
   Thirdly, the new system must be unified, coordinated, or regulated. For example, it will be necessary to promote consolidation of separate channeling activities into a streamlined one, joint operation of local collection and dispatch centers, switchover from private to commercial trucking services) etc. All these will go a long way toward increasing the overall energy efficiency and reduce environment deterriation.
b.  Preparation of inter-city sundry goods transit system
   At present, the transportation of sundry goods between cities is heavily dependent on trucks.
   Although the overall demand growth rate for freight transportation will go down in the future, the demand for transportation of highly processed goods is expected to grow above the average level.
   On the other hand, the operation of long-range trucks is fraught with problems - environmental pollution, driver health, energy problems, etc.
   To cope with the expected increase in demand for transportation of sundry goods, it will be necessary to encourage the use of coastal shipping, including long-range ferry operation with its high energy efficiency.
   From this point of view, the government is going to study a comprehensive coastal shipping system for sundry goods.
c.  Enhancement of efficiency in intracity physical distribution
   To upgrade and streamline the physical distribution in cities, efforts have been made to provide truck terminals around the cities since the early 1960s in an attempt to separate arterial express services and intracity collection and delivery terminal services from each other.
   It is also desirable to carry out loading and unloading off the street to alleviate traffic congestion and prevent air pollution and traffic accidents.
   It will be necessary to study the feasibility of common facilities for efficiency of this type of work.
   Along with these hardware measures, software approaches have been tried in an effort to solve physical distribution problems in major cities. For example, experiments have been made with a joint routing system project, a joint home delivery model project, etc., in the hope that overall loading efficiency of the trucking system will be increased and that truck traffic will be greatly reduced without affecting the efficiency of collection and dispatch services. Much is expected of these projects. d. Strengthening foundation of physical distribution industry
   So far, the physical distribution industry has been preoccupied with expanding volume alone. Now that a depressed tone has pervaded the whole economy, there is not much hope of the industry benefitting from increased trade volume. The consignors on the other hand are bent on whittling down excess weight in management to improve competitiveness. In the face of these stark realities, the industry must hasten to adjust its operating setup to the present slow economic growth through modernization and streamlining of its business resources.



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