LOGISTICS AND SUPPLY CHAIN MANAGEMENT

A Brief look at the Logistical challenges

and peculiar Logistical techniques
unique to Japan

Professor Concerned: Dr. Prof. J.S. Lamba

Subject: Logistics and Supply Chain Management
Group 10
Group Members:
Dhruv Maheshwari (20)
Divya Nagar (34)
Hitesh Varshney (26)
Siddharth Singhvi (53)

DHRUV MAHESHWARI | DIVYA NAGAR | HITESH VARSHNEY | SIDDHARTH

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INTRODUCTION
Often referred to as the land of the rising sun,
Japan is a perfect example of where history
meets technology. The third largest economy
in the world, Japan has transformed as the
epicenter of reliable and outstanding
technology in the second half of the 20th
Century. Sprawling cities and heavily wooded
countrysides are a feature of the four islands
that make up this countrys landmass.
Modern architecture and traditional wooden
houses transfers one from the present to the
yester years. Japan has also been credited
with the highest degree of loyalty with
examples of employees working their whole
lives for one company itself. This goes to show
the very strong principles and social code to
which Japanese people adhere to. Even
though Japan remains a traditional society
with very strong societal and employment hierarchies; but such traditions are facing
the heat as the younger generations are becoming more inclined towards the
Western culture and ideas.
Post the Second World War Japans economy was propelled by their excellence and
prowess in automobile and consumer electronics sector. Most Japanese
multinationals are domestic names today. However, this economic bull run lost
steam in the 1990s with growing debt burdens on the country which successive
governments have not been able to address.
Another major demographic issue that the country faces is that like their neighbors
China, it too has an ageing population and social security costs are mounting.
Moreover, politically there are still tensions prevalent between Japan and its
neighbors China and South Korea, who have not yet gotten over the atrocities that
Japanese military inflicted on its prisoners of war.
Geographically, the country is sitting on a figurative time bomb. Set right over the
meeting point of three tectonic plates, the country is ravaged by regular
earthquakes and seismic activities. This is also evident through the light-weight
architecture that Japan is famous for. Over twenty percent of the worlds
earthquakes take place in Japan. Schools and offices regularly undergo fire and
disaster management drills with the threat of a disaster always there over their
heads.
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The March 2011 earthquake unleashed a devastating tsunami and Japan is still
coming to terms with its impact not least the question of restarting its nuclear
energy programme after the closure of the crippled Fukushima plant.

COUNTRY ANALYSIS
Economic Profile
Economic Structure
Japan has a population of 127.25 million in 2013, with a labor force of 65.02 million.
Japans unemployment rate for 2012 was 3.3 percent. One of the biggest challenges
for the Japanese government is its negative population growth rate. At about 24.8
percent Japan has the highest proportion of population over the age of 60 years in
the world. Much of this problem is due to their low birth rate and very high life
expectancy.
The country has a land area
of 364,485 square
kilometers. 70 percent of
Japanese land is forested
and unsuitable for
agricultural, industrial or
residential purposes. As
such, much of Japans
economic activity is
concentrated in major cities
such as Tokyo, Yokohama
and Osaka.
With only about 15 percent
of its land arable, Japan imports about 60 percent of grain and fodder crops from
other countries, and relies on imports for most of its meat products. Japan is also
the largest market for EU and third largest market for US agricultural exports.
With its lack of natural resources, Japan relies on the imports of commodities such
as fuel, foodstuff, chemicals, textiles and raw materials from various countries for its
industrial sectors. Japan is the worlds third largest oil importer, with 5.033 million
barrels per day to meet 45 percent of its energy needs in 2009. Japan boasts the
largest fishing fleets In the world, accounting for almost 15 percent of the global
catch.
Industry Sectors
Despite an overall stagnation of the economy for nearly two decades, Japans
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industries are still among the most highly advanced and innovative In the world.
Japanese manufacturing products, particularly in electronics and automobiles, are
the world leaders in both production and technological advancements in their
respective fields.
In 2012, industry was responsible for 27.5 percent of Japans GDP. Major industries
in Japan include motor vehicles; electronic equipment, machine tools, steel and nonferrous metals, ships, chemicals, textiles, and processed foods.
Japans automobile industry produces the second largest amount of vehicles in the
world behind China. However, Japanese automobile companies remain among the
most valuable and technologically advanced in the world. Japan is home to six of
the top twenty largest manufacturers in the world Toyota (1 st), Renault-Nissan (4th),
Honda (8th), Suzuki (10th), Mazda (14th) and Mitsubishi (16th). The automobile
industry also managed to register a massive 10.5 percent growth in 2009, in spite of
the global financial crisis.
Japan is also the worlds largest electronics manufacturer with prominent companies
such as Sony, Casio, Mitsubishi Electric, Panasonic, Canon,, Fujitsu, Nikon, Yamaha,
etc. Japanese electronic products are renowned for their innovation and quality.
However the turmoil from the 2011 earthquake disaster greatly affected its
industries, dropping Japan from the 8th highest industrial production growth rate in
2010 to the 8th worst in 2011.
Main
Indicators
GDP (billion
s USD)
GDP (Const
ant Prices,
Annual %
Change)

GDP per
Capita (US

2011

2012

2013

2014

2015 (e)

5,905.63

5,937.86

4,898.53e

4,769.80e

4,881.91

-0.5

1.5

1.5e

0.9e

0.8

46,175

46,531

38e

37,540e

38,522

-8.3

-7.6e

-7.6e

-6.7e

-5.5

229.8

237.3e

243.2e

245.1e

245.5

-0.3

-0.0

0.4e

2.7e

2.0

4.6

4.3

4.0

3.7

3.8

126.47

58.68

33.63e

45.42e

54.92

2.1

1.0

0.7e

1.0e

1.1

D)

General
Governme
nt
Balance (in
% of GDP)

General
Governme
nt Gross
Debt(in %
of GDP)

Inflation
Rate (%)
Unemploy
ment
Rate (% of
the Labor
Force)

Current
Account (bi
llions USD)

Current

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Account (in
% of GDP)

Source: IMF - World Economic Outlook Database - Last Available Data.

Note: (e) Estimated Data

Despite the historical significance of Japanese manufacturing, services are the

dominant component of the economy contributing to71.4 percent of the GDP in
2012. Major services in Japn include banking, insurance, retailing, transportation
and telecommunications.
The Tokyo Stock Exchange is the third lasrgest stock exchange In the world by
market capitalization with a total market cap of U.S$3.3 trillion as of December
2011. Japan is also home to 326 companies from the Forbes Global 2000.
Agricultures contribution to Japans economy is fairly small when compared to
Industry and Services. In 2012, Agriculture made up only 1.2 percent of the nations
GDP. Although its contribution appears minute, agriculture is still a highly important
component of Japans economy and society.

Japans agricultural economy is highly subsidised and protected. Only 15 percent of

Japanese land is suitable for agriculture, though any available land is highly
cultivated. As such, Japan has one of the highest per hectare crops yields in the
world. Though it has a small agriculture sector, Japan is self-sufficient in the
production of rice and fish, but relies heavily on food imports such as wheat, corn,
sorghum and soybeans from the US. This makes US the third largest market for
Japan's agricultural imports.
Japans Export, Import and Trade
Japan is the 5th largest importer and exporter in the world. Japan imports raw
materials and pays for them by processing the raw materials, thus adding value to
them before exporting the output. In recent years, Japan has been the top export
market for 15 trading nations worldwide.

In order to greater facilitate bilateral trade, Japan adopts Economic Partnership

Agreements (EPAs) According to former Japanese Prime Minister Taro Aso, countries
move on to discuss higher-level issues in EPAs, such as "devising framework through
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which investment can take place in a secure manner, or developing a mechanism to

ensure protection of intellectual property rights". The list of Japanese EPAs include
those with ASEAN, Brunei, Indonesia, Malaysia, Philippines, Singapore, Thailand,
Vietnam, Australia, Chile, India, Mexico, Peru, Korea and Switzerland. ASEAN-Japan
Comprehensive Economic despite Japans extensive list of EPA partners, China
remains as Japans largest export and import partner. In 2012, 19.7 percent of
Japans exports went to Japan while 21.5 percent of Japanese imports came from
China.

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Political Profile
At the end of World War II, Japan was required by the terms of its surrender to build
a new political system. With Allied forces occupying and helping to rebuild the
country, Japan adopted a democratic government for the first time in 1947. The
nation is now governed by the two houses of parliament, known as the Diet, with a
prime minister elected by the majority party. The two houses of the Diet are the
House of Councillors, or Sangi-in, which has 242 members; and the House of
Representatives, or Shugi-in, with 480 members. In the past, Japanese voters cast
their ballots for specific candidates, but since 1982 voters select a party, which then
receives proportional representation in the legislature.
Japan's main political
parties are the Liberal
Democratic Party (LDP)
and the Democratic
Party of Japan (DPJ).
Several smaller parties
also maintain a presence
in the legislature. The
LDP, generally
considered the more
conservative of the two
major parties, held
power from 1955 until
1993. Since 1994, the

Prime Minister Shinzo Abe

LDP has governed by forming a coalition government.

Some facts
Type of State
Empire having a parliamentary democracy.
Executive Power
The head of state is the Emperor. His role is largely ceremonial. The leader of
the majority party or leader of the majority coalition in the parliament (House
of Representatives) is designated as the Prime Minister for a four-year term.
The Prime Minister is the head of the government and enjoys the real
executive powers which include implementation of the law in the country and
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running the day-to-day affairs. The Cabinet is appointed by the Prime

Minister.
Legislative Power
The legislature in Japan is bicameral. The parliament called National Diet
consists of:House of Councilors (the upper house) having 242 members
elected through a popular vote for six year terms; and House of
Representatives (the lower house) having 480 members elected through a
popular vote for four-year terms. The Constitution of Japan states that the
nation's "highest organ of state power" is the National Diet. The executive
branch of government is directly or indirectly dependent on the support of
the National Diet, often expressed through a vote of confidence.
Main Political Parties
- The Liberal Democratic Party of Japan (LDP): centre-right, heads the ruling
coalition
- Democratic Party of Japan (DPJ): centrist, major opposition party
- Japan Restoration Party (JRP): right-wing, third largest force, but is slowly
losing representation
- Komeito (NK): centre-right, in coalition with the LDP
- Japanese Communist Party (JCP): left-wing, more than doubled its
representation in the last election
Current Political Leaders
Emperor: AKIHITO (since 7 January 1989) hereditary
Prime Minister: Shinz Abe (Liberal Democratic Party), since 26 December
2012.
Next Election Dates
House of Councilors: July 2016

Geographic and Topographic Profile

General Overview
Japan is an island nation in East Asia comprising
a stratovolcanic archipelago extending along the Pacific coast of Asia. It lies
between 24 to 46 north latitude and from 123 to 146 east longitude. The
country is southeast of the Russian Far East, separated by the Sea of Okhotsk;
slightly east of Korea, separated by the Sea of Japan; and east-northeast

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of China and Taiwan, separated by the East China Sea. The closest neighboring
country to Japan is the Russian Federation.[1]
The major islands, sometimes called the "Home Islands", are (from north to
south) Hokkaid, Honsh (the "mainland"), Shikoku and Kysh. There are also
2,456 islands,[2] including Okinawa, and islets, some inhabited and others
uninhabited. In total, as of 2006, Japan's territory is 377,923.1 km2
(145,916.9 sq mi), of which 374,834 km2 (144,724 sq mi) is land and
3,091 km2 (1,193 sq mi) water. This makes Japan's total area slightly smaller than
the U.S. state of Montana, and slightly larger than Norway.
Some facts
Location: Eastern Asia, island chain between the North Pacific Ocean and the Sea of
Japan, east of the Korean Peninsula.
Area:

total: 377,915 km

land: 364,485 km

water: 13,430 km

notes: Includes the Bonin Islands, Dait Islands, Minami-Torishima, Okinotorishima, the Ryukyu Islands, and the Volcano Islands. Ownership
of theSenkaku Islands and Liancourt Rocks (Japanese:Takeshima, Korean:Dokdo)
is in dispute.

Area comparative: 11% smaller than California; slightly larger than Newfoundland
and Labrador
Land boundaries: none
Coastline: 29,751 km (18,486 mi)
Maritime claims:

exclusive economic zone: 200 nmi (370.4 km; 230.2 mi)

territorial sea: 12 nmi (22.2 km; 13.8 mi); between 3 and 12 nmi (5.6 and
22.2 km; 3.5 and 13.8 mi) in the international straitsLa Prouse (or Sya
Strait), Tsugaru Strait, Osumi, and Eastern and Western Channels of the Korea
or Tsushima Strait.

Climate: varies from tropical in south to cool temperate in north

Terrain: mostly rugged and mountainous, can easily be compared to Norway, both
having about 70% of their land in the mountains.

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Natural resources: small deposits of coal, oil, iron, and minerals. Major fishing
industry.
Land use:

arable land: 11.26%

permanent crops: 0.81%

other: 87.93% (2011)

Irrigated land: 25,000 km (2010)

Total renewable water resources: 430 km3 (2011)
Natural Hazards
Ten percent of the world's active volcanoesforty in the early 1990s (another 148
were dormant)are found in Japan, which lies in a zone of extreme crustal
instability. As many as 1,500 earthquakes are recorded yearly, and magnitudes of 4
to 7 in magnitude are common. Minor tremors occur almost daily in one part of the
country or another, causing slight shaking of buildings. Major earthquakes occur
infrequently; the most famous in the twentieth century was the great Kant
earthquake of 1923, in which 130,000 people died. Undersea earthquakes also
expose the Japanese coastline to danger from tsunamis (?) and tidal waves. On
March 11, 2011 the country was subject to a devastating magnitude 9.0 earthquake
and a massive tsunami as a result. The March 11 quake was the largest ever
recorded in Japan and is the world's fourth largest earthquake to strike since 1900,
according to the U.S. Geological Service. It struck offshore about 371 kilometers
(231 mi) northeast of Tokyo and 130 kilometers (81 mi) east of the city of Sendai,
and created a massive tsunami that devastated Japan's northeastern coastal areas.
At least 100 aftershocks registering a 6.0 magnitude or higher have followed the
main temblor. At least 15,000 people died as a result.
Japan has become a world leader in research on causes and prediction of
earthquakes. The development of advanced technology has permitted the
construction of skyscrapers even in earthquake-prone areas. Extensive civil defense
efforts focus on training in protection against earthquakes, in particular against
accompanying fire, which represents the greatest danger.
Another common hazard are several typhoons that reach Japan from the Pacific
every year and heavy snowfall during winter in the snow country regions, causing
landslides, flooding, and avalanches.

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The 2011 earthquake and tsunami that hit Japan; successively leading to the Fukushima
nuclear plant disaster

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Bibliography
-

http://www.indexmundi.com/japan/#Transportation
http://www.economywatch.com/world_economy/japan/?page=full
http://www.pbs.org/pov/campaign/campaign_background.php
http://www.suddefrance-developpement.com/en/countryprofiles/japan/political-outline.html
http://en.wikipedia.org/wiki/Geography_of_Japan

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