Chapter 3  New Developments in Physical Distribution


1. Approach to Needs of Sophisticated PD


   There is a need to improve the system of handling imported finished goods at ports and harbors in response to changes in Japan's industrial structure, and also to take concrete steps to ensure the efficient physical distribution of air cargo in view of the sharp increase in the volume of international air cargo.
   To meet consumer needs, the Ministry of Transport is now implementing measures to accelerate "freight villa and document villa" projects, and also to institute "trunk-room services and rationalize fares and charges with respect to consumer physical distribution services such as the ever-growing door-to-door delivery services (Fig. 13) and house-moving services. In addition, the ministry is studying steps to improve international house-moving services, which have expanded with the progress of intemationalization of Japanese businesses.

 


2. Promotion of Countermeasures for PD Services


   In addition to the sophistication and diversification of the needs of physical distribution, active cargo movements in recent years have brought about rising demand foh manpower on the one hand, while changes in lifestyles have made it increasingly difficult to secure an adequate workforce, young workers in particular, on the other. In such circumstances, in order to provide appropriate, excellent and stable transport services, countermeasures must be taken promptly, including the improvement of the working environment.
   In order to expand facilities that meet the sophisticated and diversified needs of physical distribution, the Ministry of Transport is also forging ahead with the construction of physical distribution modernization centers and basic facilities for the sophistication of physical distribution. In addition, the ministry is carrying out, in 15 model areas throughout the country, surveys in preparation for the implementation of plans to construct "Physical Distribution Network Cities," which will form the nucleus of local distribution services and contribute to regional revitalization.
   Distribution services are mostly handled by smaller enterprises, and they have faced a severe management situation. To improve their management structure, steps to modernize and sophisticate smaller distribution enterprises, and measures to counter the recession are now being pushed forward.
   With respect to the technology of distribution, measures to mechanize and automate loading, unloading and sorting operations and to develop and introduce railway freight transport technologies are being promoted in response to needs of consignors.
   Moreover, the Ministry of Transport will review regulations governing distribution services from the standpoint of ensuring flexible and punctual distribution services, and forming, at the same time, efficient distribution systems through various transport services in response to the changing needs of distribution. The ministry will also prevent activities that hinder the safety of transportation and the maintenance of order in the industry. To this end, a bill concerning trucking services and a bill relating to services candling trucking were enacted into law in December 1989 in accordance with "opinions on what trucking services and regulations governing complex integrated forwarding services should be," presented to the Distribution Subcommittee of the Council for Transport Policy, the Ministry of Transport, "recommendations concerming the easing of official regulations", submitted by the Provisional Council for the Promotion of Administrative Reform, and the "Platform for the Furtherance of Deregulations". decided at a Cabinet meeting.



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