Important Factors for Innovation in Physical Distribution and Commercial Distribution (1)

ABSTRACT

1. Services have the following characteristics: (1) the service providing process is implemented with the presence of customers or customers’ possessions, which are not part of the manufacturing process of products, (2) even with the same service product, customer satisfaction varies greatly depending on the delivery of the service. Innovation in services is comprised of service product innovation, service delivery innovation and service environment innovation. Information is sticky in the important concepts related to service innovation, and service delivery innovation is facilitated by the stickiness of information exchanged with customers in the service providing process.

2. From case studies of Yamato Transport’s delivery service and Seven-Eleven Japan’s CVS business, the following important factors for innovation in physical distribution and commercial distribution were derived: (1) that it is possible to adequately acquire the necessary information for business at the business locations from the information systems, (2) a company-wide prevalence of a strong customer-oriented philosophy that begins with top management, and (3) the activity of small groups at the business locations ((1) and (2) are factors for both service product innovation and service delivery innovation in physical distribution and commercial distribution, (3) is a factor of service delivery innovation in physical distribution, and of service product innovation and service delivery innovation in commercial distribution).