The Distribution System and Some Spatial Characteristics of Mail Order Businesses

Abstract

The purpose of this paper is to investigate mail order businesses from a geographical point of view. After outlining the mail order businesses in Japan, the distribution system of a leading mail order company (Nissen, headquartered in Minami Ward, Kyoto City) is examined carefully as an example. Then, based on this case study, some spatial characteristics of the mail order business in general are investigated.The major findings of the case study can be summarized as follows. Regarding procurement of goods for sale, Nissen has two main channels of domestic and overseas trades: procured goods are inspected closely before arrival at the distribution centers. Delivery of goods consists of two stages of main-line transport and home delivery, and particular forwarding agents, who differ by prefecture, are in charge of these stages.Nissen has the distribution center for wearing apparel and small-sized goods located at Kanazu-cho, Fukui Prefecture, and the other major distribution center for large-sized goods located at Fujiwara-cho, Mie Prefecture. These centers take charge of procurement, keeping, picking, packing and shipping of goods, and each task is automated as much as possible. Quick and punctual task supported by well-prepared logistics has enabled this company's sales to pick up.The spatial characteristics of mail order business in general are examined from two points: distribution center disposition and the shoplessness effect. From this examination the following conclusion can be shown.With respect to the construction of distribution centers, we generally need to take account of construction cost, stocktaking cost and delivery time. However, since leadtime in the mail order business is less seriously restricted, it is likely that a single, large-scale distribution center contributes to savings in equipment cost, stocktaking cost and rent.Shoplessness exerts various spatial influences. Specifically, it tends to lead to construction of fewer large-scale distribution center(s) for reducing necessary stock, to generate the necessity of home delivery, to have a nationwide trade area arising from the distinctive way of extending markets (different from retail business in general), to enable marketing focused on particular customers due to feedback of customer's shopping information, and to form distribution stages of inspection and return of goods.