An organisation or service that assists manufacturers—especially e-commerce merchants—in contracting out logistics and distribution-related work is known as third-party logistics. Specialised services such as inventory management, door-to-door delivery, cross-docking, and product packaging are provided by a third-party logistics company. In addition to ensuring scalability and lowering the danger of product damage, these services assist businesses in improving customer experiences, growing their clientele, entering new markets, and finishing up essential internal processes. Increased asset utilisation and asset sharing partnerships are further features of the third-party logistics model that support the market expansion by driving demand.
Japan Third Party Logistics Market Driving Factors and Challenges
Driving Factors The Japanese third-party logistics market is growing at a rapid pace due to several factors, such as emerging trends. One of the primary factors is the trend of businesses concentrating more on their core competencies in an effort to get a competitive edge. Companies are using third-party logistics providers to handle their operations, which allows them to focus on their primary skills. Furthermore, the growing e-commerce industry in Japan plays a significant role in the expansion of the third party logistics market, as online retailers increasingly turn to logistics outsourcing to manage warehousing, order fulfilment, and delivery more efficiently.
Challenges Numerous challenges face Japan's third-party logistics industry, including rising labour costs and wages that drive up operational costs and stringent laws that drive up compliance costs. The market is further challenged by the lack of available warehouse space and the high cost of real estate, particularly in urban areas. The necessity of integrating advanced technologies, including automation and IoT, to satisfy the increasing expectations for efficiency and transparency is accompanied with significant cost restrictions. Additionally, because of the ongoing consequences of global supply chain disruptions and the shift towards e-commerce, which increases operational complexity and expense, third-party logistics providers need to continuously adjust their logistics strategy.
Impact of COVID-19 on Japan Third Party Logistics Market
Japan's third-party logistics industry was significantly impacted by the COVID-19 epidemic, which resulted in shortages and delays, interrupted international supply chains, and increased need for adaptable and reliable logistics solutions. Third-party logistics firms have to invest in technology and automation to accommodate the growing demand for efficient last-mile delivery services as a result of the pandemic's increase in e-commerce. Staff availability was hampered by health and safety issues, which raised operational costs and exacerbated the employment deficit. In addition, the pandemic brought attention to the importance of supply chain transparency and flexibility, which led to an increased emphasis on digital transformation and real-time tracking systems to boost efficiency and response.
Japan Third Party Logistics Market Key Players:
The market study provides market data by competitive landscape, revenue analysis, market segments and detailed analysis of key market players such as Alps Logistics Co. Ltd., DHL, Fukuyama Biagi Logistics Inc., Kintetsu World Express Inc., Kokusai Express Co. Ltd., LOGISTEED Ltd., Mitsui-Soko Holdings Co. Ltd., Nichirei Logistics Group Inc., Nippon Express Co. Ltd., Sagawa Express Co. Ltd., Others.
Japan Third Party Logistics Market Segmentation:
By Transport: Based on the Transport, Japan Third Party Logistics Market is segmented as; Railways, Roadways, Waterways, Airways.
By Service Type: Based on the Service Type, Japan Third Party Logistics Market is segmented as; Dedicated Contract Carriage, Domestic Transportation Management, International Transportation Management, Warehousing and Distribution, Value Added Logistics Services.
By End Use: Based on the End Use, Japan Third Party Logistics Market is segmented as; Manufacturing, Retail, Healthcare, Automotive, Others
By Region: This research also includes data for Western Region, Eastern Region, Northern Region, Southern Region.
This study also encompasses various drivers and restraining factors of this market for the forecast period. Various growth opportunities are also discussed in the report.