UPS supports Japanese businesses by building strategic logistics
Tokyo, September 12, 2008 - Yoshiki Mizokuchi, President of
UPS Japan presented at the Seminar on Latest SCM Strategies in Japan, China and
South East Asia organized by LNEWS.
Mizokuchi emphasized the importance of supply chain management for Japanese
businesses as they pursue the overseas market.
According to the UPS Asia Business Monitor which surveyed 1,200 SME decision
makers in 12 Asian nations, Mizokuchi said, "The outlook for Asia trade with the
US has slowed and the survey showed that only 39% of SME decisions expects
growth in trade with the US, as compared to 51% in 2007."
While
trade with the US is expected to slow, trade within Asia remained strong, with
71% of SME decision makers expect growth in trade with other countries within
Asia. This is further supported by Japan's trade statistics also that trade
within Asia is robust: In fiscal 2007, America accounted for about 20% of
exports by value, while Asia accounted for about 50%, up 10% from the previous
year.
Mizokuchi also pointed out that awareness of the supply chain among Japanese
small businesses is very low compared with other Asian countries and now that an
increasing number of small businesses are moving production offshore where costs
are lower, it is important to improve cash flow and optimize inventory through
efficient supply chain management. Said Mizokuchi: "Building a strategic supply
chain through outsourcing to specialist logistics companies can reduce
management costs such as inventory costs, which are estimated to reach 25-35% of
the value of finished products, and shorten the cycle from order receipt to bill
collection."
Finally, Mizokuchi talked about forthcoming initiatives: "UPS provides
services in over 40 countries in the Asia-Pacific region. In China, we operate
45 centers, and serve over 330 cities using our own transportation. We already
have three daily flights from Tokyo, Osaka and Nagoya to Shanghai which gives
Japanese businesses direct access to the China market. By the end of this year,
we will open an air hub at Shanghai's Pudong Airport, and we will connect all of
mainland China to the UPS international network. Furthermore, in 2010, we
will move our intra-Asia hub from Clark Airport in the Philippines to Shenzhen,
increasing its processing capacity fivefold. In such ways, we will proactively
support the activities of our Japanese customers overseas, especially in
Asia."
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