Background
Since the late 1980s, the number of Japanese foreign affiliates, such as company branches or
factories, has risen steadily because many Japanese companies have shifted their sites of
operations in overseas areas. Recently, the number of Japanese companies transferring to
other countries, withdrawing from recipient countries, or coming back to Japan, is increasing.
Several studies have considered “market” and “product cost” as the main factors of the
international shifts. Although these are important factors for the shifts, they are, however, not
sufficient justification to produce profit to the company. This is because there is also the
distribution process that links production and sales. An important component is logistics,
which includes all the processes from procurement to sales (i.e. procurement, production,
distribution and sales). However, logistics concept is rarely present in these studies.
Proceedings of the Eastern Asia Society for Transportation Studies, Vol. 5, pp. 1703 - 1718, 2005
1703
BackgroundSince the late 1980s, the number of Japanese foreign affiliates, such as company branches orfactories, has risen steadily because many Japanese companies have shifted their sites ofoperations in overseas areas. Recently, the number of Japanese companies transferring toother countries, withdrawing from recipient countries, or coming back to Japan, is increasing.Several studies have considered “market” and “product cost” as the main factors of theinternational shifts. Although these are important factors for the shifts, they are, however, notsufficient justification to produce profit to the company. This is because there is also thedistribution process that links production and sales. An important component is logistics,which includes all the processes from procurement to sales (i.e. procurement, production,distribution and sales). However, logistics concept is rarely present in these studies.Proceedings of the Eastern Asia Society for Transportation Studies, Vol. 5, pp. 1703 - 1718, 20051703
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