Efficiency and Inefficiency of Japanese Distribution System

Most discussions of the Japanese distribution system criticize the inefficiency of small retailers whose management ability is poor, and a multi-layered structure that adds unnecessary distribution cost. Also the performance of big retailers, such as super-stores and department stores, is relatively low-level, because of their complexity of merchandising and management systems. On the other hand, high-performance retailers such as convenience store chains and SPAs (specialty store retailer of private label, apparel) have created low-cost logistics and value-added products in competitive fields. This paper investigates the recent criteria in the Japanese distribution system and makes some suggestions for future progress