May 17, 2020

E-commerce growth reveals Japan’s modern warehousing shortage

Japan e-commerce sector
modern warehousing gap
DHL Express warehouse Shin-Kiba
Tokyo
Nye Longman
2 min
E-commerce growth reveals Japan’s modern warehousing shortage
As the growth of Japans e-commerce sector gathers pace the lack of modern warehousing in the country is fast becoming increasingly apparent. This gap is...

As the growth of Japan’s e-commerce sector gathers pace the lack of modern warehousing in the country is fast becoming increasingly apparent. This gap is something that developers and logistics services providers are investing heavily to fill.
 

DHL Express recently inaugurated a new $74 million 215,278 square foot warehouse at Shin-Kiba, Tokyo which has doubled its space in the city – this comes at a time when the company’s operations in the city are on the rise.

"The new DHL Express Tokyo Gateway marks the largest investment to date by the company in Japan and enhances our extensive operational network in the country,” said Ken Allen, CEO of DHL Express.

“We believe the Japan market has room to grow further, especially in the e-commerce and automotive sectors, and we see increasing demand for international shipping needs from China and Southeast Asia into Japan.”
 

Ming Mei, chief executive officer of GLP, highlighted that the demand for modern logistics facilities in Japan was strong – and that as little as 3 percent of the current space is up to modern standards. Rapid development is required to serve the outsourcing business that has grown by 125 percent since 2006 and to accommodate the delivery pressures of e-commerce sales that have risen by 270 percent in Japan since 2006.

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SOURCE: [joc.com]

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Jun 9, 2021

Biden establishes Supply Chain Disruptions Task Force

supplychain
Supplychainriskmanagement
Procurement
Biden
3 min
US government lays out plans for supply chain transformation following results of the supply chain review ordered by President Biden in February

The US government is to establish a new body with the express purpose of addressing imbalances and other supply chain concerns highlighted in a review of the sector, ordered by President Joe Biden shortly after his inauguration. 

The Supply Chain Disruptions Task Force will “focus on areas where a mismatch between supply and demand has been evident,” the White House said. The division will be headed up by the Secretaries of Commerce, Transportation, and Agriculture, and will focus on housing construction, transportation, agriculture and food, and semiconductors - a drastic shortage of which has hit some of the US economy’s biggest industries in consumer technology and vehicle manufacturing. 

“The Task Force will bring the full capacity of the federal government to address near-term supply/demand mismatches. It will convene stakeholders to diagnose problems and surface solutions - large and small, public or private - that could help alleviate bottlenecks and supply constraints,” the White House said. 

In late February, President Biden ordered a 100 day review of the supply chain across the key areas of medicine, raw materials and agriculture, the findings of which were released this week. While the COVID-19 health crisis had a deleterious effect on the nation’s supply chain, the published assessment of findings says the root cause runs much deeper. The review concludes that “decades of underinvestment”, alongside public policy choices that favour quarterly results and short-term solutions, have left the system “fragile”. 

In response, the administration aims to address four key issues head on, strengthening its position in health and medicine, sustainable and alternative energy, critical mineral mining and processing, and computer chips. 

Support domestic production of critical medicines

 

  • A syndicate of public and private entities will jointly work towards manufacturing and onshoring of essential medical suppliers, beginning with a list of 50-100 “critical drugs” defined by the Food and Drug Administration. 
  • The consortium will be led by the Department of Health and Human Services, which will commit an initial $60m towards the development of a “novel platform technologies to increase domestic manufacturing capacity for API”. 
  • The aim is to increase domestic production and reduce the reliance upon global supply chains, particularly with regards to medications in short supply.


Secure an end-to-end domestic supply chain for advanced batteries

 

  • The Department of Energy will publish a ‘National Blueprint for Lithium Batteries’, beginning a 10 year plan to "develop a domestic lithium battery supply chain that combats the climate crisis by creating good-paying clean energy jobs across America”. 
  • The effort will leverage billions in funding “to finance key strategic areas of development and fill deficits in the domestic supply chain capacity”. 


Invest in sustainable domestic and international production and processing of critical minerals

 

  • An interdepartmental group will be established by the Department of Interior to identify sites where critical minerals can be produced and processed within US borders. It will collaborate with businesses, states, tribal nations and stockholders to “expand sustainable, responsible critical minerals production and processing in the United States”. 
  • The group will also identify where regulations may need to be updated to ensure new mining and processing “meets strong standards”.


Partner with industry, allies, and partners to address semiconductor shortages

 

  • The Department of Commerce will increase its partnership with industry to support further investment in R&D and production of semiconductor chips. The White House says its aim will be to “facilitate information flow between semiconductor producers and suppliers and end-users”, improving transparency and data sharing. 
  • Enhanced relationships with foreign allies, including Japan and South Korea will also be strengthened with the express proposed of increasing chip output, promoting further investment in the sector and “to promote fair semiconductor chip allocations”. 
     

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