News
A recent survey revealed that enterprises that own in-house logistics service providers feel that it is not very necessary to have such subsidiaries in their groups. However, it was also indicated they understand the important roles played by logistics companies.
Funai Logistics Co., Ltd. conducted the survey in June 2011 among 419 business operators of a certain size or above that were selected at random.
A total of 61 responses were given by companies in various fields of business, including raw material producers; machine, electrical appliance and electronic component makers; wholesalers and food manufacturers.
According to the Tokyo- and Osaka-based logistics specialist, 62.3% of the respondents said their logistics subsidiaries play important functions in their groups.
However, those who answered they need to have in-house logistics service providers did not reach a majority, amounting to 44.3%.
It was unveiled the parent companies think it is not very important to have logistics arms in their groups, though fully realizing their importance.
It was also learned from the same survey that only 11.5% of the respondents think their logistics subsidiaries are highly competitive.
A vast majority, or 75.4% claimed that most of the earnings made by logistics service operators come from other members of their groups.
Those who said they will have weaker incentives to own logistics service providers in their groups unless costs are cut amounted to 44.3%.
