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Management article
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Reference no. SMR46115
Published by: MIT Sloan School of Management
Published in: "MIT Sloan Management Review", 2004
Length: 3 pages

Abstract

Manufacturing practices popularized by the Japanese, such as total quality management and just-in-time procurement, have become the worldwide gold standard for producing high-quality products. One might expect the same to be true of Japanese methods of logistics management (planning and arranging the transport and storage of goods and materials). However, research shows that Japanese-owned logistics companies in Europe struggle to meet those expectations. In their 2004 paper Japanese Logistics in Europe: Will East Meet West? de Koster and Shinohara report that, in their 2001 survey of 65 manufacturers'' European distribution centers - of which 12 were American and 14 Japanese - the Japanese logistics subsidiaries failed to deliver superior logistics support. In follow-up interviews, the Japanese managers described a clash of cultures underlying their operations. Non-Japanese staff were frustrated that, among other things, proposals moved slowly through multiple channels before decisions could be made and that high-ranking Japanese managers spent so much time apologizing for service failures and focused less on planning. The authors conclude that the Japanese subsidiaries would better adapt to western business practices if they were to take into greater account the conditions and mores of the country where they are doing business.

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Abstract

Manufacturing practices popularized by the Japanese, such as total quality management and just-in-time procurement, have become the worldwide gold standard for producing high-quality products. One might expect the same to be true of Japanese methods of logistics management (planning and arranging the transport and storage of goods and materials). However, research shows that Japanese-owned logistics companies in Europe struggle to meet those expectations. In their 2004 paper Japanese Logistics in Europe: Will East Meet West? de Koster and Shinohara report that, in their 2001 survey of 65 manufacturers'' European distribution centers - of which 12 were American and 14 Japanese - the Japanese logistics subsidiaries failed to deliver superior logistics support. In follow-up interviews, the Japanese managers described a clash of cultures underlying their operations. Non-Japanese staff were frustrated that, among other things, proposals moved slowly through multiple channels before decisions could be made and that high-ranking Japanese managers spent so much time apologizing for service failures and focused less on planning. The authors conclude that the Japanese subsidiaries would better adapt to western business practices if they were to take into greater account the conditions and mores of the country where they are doing business.

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