Logistics: what is the American, European and Japanese system?

The First thing to note about the concept of logistics, what is the name in translation from Greek literally means “art is considered”. Initially, the concept was widely used in the army, where he pointed to employees responsible for food distribution. Some time later, in connection with the low level of development of information and transport technology, its basic principles and schemes have been widely applied in the economy. During the rapid development of science in the second half of the last century formed one of the three pillars including the American, European and Japanese. Any courses on logistics confirm this.

The American logistics system built on mutual respect, between such concepts as production and resources. Its main advantage economists call that provided the same number of products and potential buyers is achieved the most effective balance. In addition, it is possible to completely exclude the case that the warehouse will store large stocks of finished goods and semi-finished products. Along with this there is also its drawbacks. We are talking about a possible unjustified forecast of the manufacturer, which is usually the result of changes in the opinions of consumers about specific products or the emergence of competitors. In other words, it upsets the balance, called “demand”. It should be noted, speaking about areas such as logistics, that often happens.

The basis of the European system are stocks. In all other respects it is similar to the us. It is on the seller here assigned the mission of determining the views of potential customers about the products. The advantage of the system is the ability of the consumer to choose, and then buy the products he needs, because the scheme to build on the reserves gives the option to choose from cash range. It should be remembered, speaking of cons, which has a European logistics that such a large number of stocks leads to serious financial costs on their savings. Moreover, leading experts have already proved that the investment of money in inventory is unprofitable.

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International logistics allocates another system that is radically different in terms of approach to production and sales from the two mentioned above. She is known as Japanese and is built on the notion of order. In other words, the opinion of the buyer about a particular product does not interest neither the seller nor the manufacturer. The advantage of the system is higher maneuverability while placing the order for the goods and semi-finished products and necessary material resources. Moreover, there is no need and in stock.

As for the fault, it is the need of the producer to wait to receive the order. It is not necessary to forget and about the time that should be spent on its implementation. Despite some drawbacks, there is every reason to assume that in the future the Americans and the Europeans will move to this system, which is based on Japanese logistics. What is going to happen of course, and say leading economists.