Summary of Research Findings

In May 2024, the “An Act to Partially Amending the Act on the Advancement of Integration and Streaming of Distribution Business and the Motor Truck Transportation Business Act” (Law No. 23, 2024) came into effect, for the purpose of achieving sustainable growth of logistics, which is an essential social infrastructure. At the same time, the “Act on the Advancement of Integration and Streaming of Distribution Business” was revised to “Act Concerning the Efficient Distribution of Goods.” Under the “Act Concerning the Efficient Distribution of Goods”, businesses (shippers and logistics companies) over a certain size are designated as “specified business operators”, who are obligated with the preparation of mid-to long-term plans and regular submission of reports. Moreover, out of the “specified business operators”, it became mandatory for shippers to appoint Chief Logistics Officer (CLO). Shippers designated as specified business operators are strongly required to take initiatives in logistics (of their products, making efforts to optimize the appropriate use of the subcontractors).

The purpose of appointing a Chief Logistics Officer (CLO) is to enhance shippers' involvement in improving logistics efficiency, broadening the scope of initiatives beyond what logistics companies could achieve on their own. The CLO is expected to drive sustainable logistics practices through collaboration with logistics providers, identifying and promoting initiatives that benefit both parties.

Noteworthy Topics

Difference Between Japan and the United States

The motivations for appointing an executive in charge of "logistics" differ between Japan and the United States.
In the U.S., many companies aim to strengthen their supply chains as a means of enhancing corporate value and increasing competitiveness. To achieve this, they appoint a Chief Supply Chain Officer (CSCO) who is responsible for strategically addressing key supply chain challenges, such as ensuring a stable supply, reducing CO2 emissions, and managing geopolitical risks, including those related to China.

On the other hand, in Japan, the role of the Chief Logistics Officer (CLO) focuses on improving the efficiency of product transportation and eliminating business practices that may hinder the sustainable growth of logistics. Shippers designated as "specified business operators" are required to appoint a CLO to tackle logistics challenges, with an emphasis on streamlining operations, particularly reducing loading wait times and optimizing load capacity.

The business environment for shippers differs significantly between the U.S. and Japan, and factors such as the size of the countries and business practices also creates different logistics needs.
If Japan were to adopt supply chain strategies from U.S. companies, the role and responsibility of CLOs would likely need to expand beyond logistics to encompass broader supply chain management. To enhance corporate value, it is crucial for supply chain strategy to be integrated into the overall corporate strategy, or at the very least, align with it.

Research Outline