Logistics Barriers to International Operations: A Case Study of Japanese Firm in China

The aim of this paper is to capture the specific logistics problems and the new challenges that Japanese firms face in their operations in China, and to identify the key factors influencing the development of effective logistics management. The analysis is based on a case study of a Japanese firm that manufactures its products in China and sells in the Japanese market. The findings show that establishing logistics functionality in China is the key for maintaining low prices. The critical challenges in procurement: quality, cost, and delayed delivery are seriously affected by logistics problems. The logistics barriers Japanese firms encountered in China have been changing; however, regulatory restrictions and local protection regulations still remain the most critical problems. Meanwhile, some new issues: a rise in logistics costs, local labor costs, and a shortage of human resources are becoming major concerns. Keywords-international operation; logistics management; case study; China