Intra-Asia trade is key to growth for Japanese businesses
Tokyo, March 19, 2010 - At the Logistics SCM + Retailing Fair in Tokyo, UPS, the world's largest package delivery company and a provider of supply chain solutions, spoke on "Global SCM - Business Models After the Economic Crisis." In the presentation, UPS points the direction of supply chain strategies that Japanese businesses can adopt as they recover from the economic crisis.
Since Q4 2009, there has been a gradual economic recovery in Japan that is driven by exports. Japan's export in December 2009 increased for the first time in 15 months for a 12% year-on-year, and showed a further increase of 40% in January 2010 compared to last year, according to trade statistics announced by the Ministry of Finance. In particular, exports to Asia are showing a prominent recovery relative to exports to Europe and America. Asia accounts for 54% of total export value in 2009, while a total of EU and America is only 30%.
In a business environment where growth is being driven by demand within Asia, or so-called "Asian domestic demand," Japanese companies have the advantage of proximity to these growing Asian markets, and have opportunities to develop new businesses and markets. As it is considered difficult for the European and American markets to regain their pre-crisis levels, developing business strategy focused on Asian markets, such as China and India, which will drive the global economic recovery, will be key to business growth.
Supply chain optimization is also an important aspect of developing such global business strategies. With the right transportation method that is in line with production and marketing plans, inventory adjustment, and supply chain visibility, businesses can reduce the costs and risks of transportation and warehousing. Case studies of businesses that have succeeded in improving their supply chain efficiency by utilizing UPS as a logistics partner were also presented. Regarding the factors behind the success of these companies, it was pointed out that, regardless of business size, they all have recognized the importance and difficulty of SCM and consequently improved their productivity and reduced their costs by outsourcing to UPS as a logistics specialist.
Japanese businesses are expected to increase their overseas development and international trade as the Asian market grows. Accordingly, UPS emphasized that it will continue to enhance its services, in order to support the global supply chain operations of businesses.
About UPS
UPS (NYSE: UPS) is the world's largest package delivery company and a global leader in supply chain and freight services. With more than a century of experience in transportation and logistics, UPS is a leading global trade expert equipped with a broad portfolio of solutions. The company can be found on the Web at UPS.com and its corporate blog can be found at www.blog.ups.com. To get UPS news direct, visit pressroom.ups.com/RSS.
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