Regional Logistics Strategy: Building an Optimal Network Covering All of Japan

あゆみ佐藤
Nov 4
3 min read

For overseas brands entering Japan’s e-commerce market, ensuring fast and reliable nationwide delivery cannot be achieved through cross-border logistics alone. To truly localize operations, it is essential to collaborate with Japan’s major logistics providers and regional delivery partners, creating a sustainable, efficient domestic distribution network.

1. Leveraging the Networks of Japan’s “Big Three” Logistics Companies

Japan’s three major carriers — Yamato Transport, Sagawa Express, and Japan Post — handle approximately 90% of domestic parcel deliveries, collectively covering more than 30,000 municipalities across the country.

Yamato Transport operates about 2,900 last-mile depots and 80 sorting terminals, with a fleet of 46,000 delivery vehicles, enabling 100% national coverage.
Sagawa Express manages around 429 regional branches, supported by large-scale transit hubs that ensure next-day delivery from Hokkaido to Okinawa, 365 days a year.
Japan Post utilizes its network of 24,000 post offices, offering both Yu-Pack (face-to-face parcel delivery) and Yu-Packet (mailbox delivery) services. Its address-forwarding system and high accessibility make it particularly popular with e-commerce operators.

By contracting with these carriers, overseas businesses can immediately gain access to Japan’s highly reliable logistics infrastructure — including remote islands and rural areas.

2. Optimizing Long-Haul Transportation:

Shared Freight Platforms and Efficiency Gains

In Japan, optimizing line-haul (intercity) and last-mile delivery is crucial to reducing logistics costs and improving delivery times.

In May 2024, Yamato Holdings launched Sustainable Shared Transport (SST), a joint transportation platform that digitally matches shippers with logistics operators to maximize efficiency.

Key features include:

Integration of shipment data and carrier schedules for better truck utilization through standardized pallets and semi-trailers.
Aiming for 80 round trips per day on the Tokyo–Nagoya–Osaka corridor by January 2025, with 65% labor reduction and 42% CO₂ emission cuts.
Shippers can select optimal transportation plans in real time, while logistics partners benefit from improved utilization and reduced driver burden.

These initiatives can reduce long-haul costs by up to 20% and enable seamless coordination with last-mile delivery systems.

3. Partnering with Local and Municipal Logistics Providers

Regional partnerships are essential to achieving full nationwide coverage and maintaining sustainable “last-mile” delivery solutions.

Sagawa Express collaborates with local governments under its SAGAWA Town Support initiative, providing joint cargo-passenger transport and luggage delivery for tourists, combining community support with new business opportunities.
The Yamato Transport × Zentan Bus partnership in Hyogo Prefecture uses local bus routes to deliver parcels, simultaneously reducing driver workloads and preserving regional transport lines.
Japan Post has restructured its postal delivery network by incorporating motorbike-based delivery for small parcels and mail, improving delivery speed in depopulated regions. Its one-year address forwarding service helps e-commerce operators reduce reshipment costs.

Through such collaborations, overseas brands can integrate local delivery networks into their own logistics streams, reaching every corner of Japan.

4. Warehouse and Fulfillment Hub Strategy

Optimizing the location of fulfillment centers is key to reducing lead time and logistics costs.

Japan Post’s Logistics Solution Centers (LSC) operate 25 nationwide facilities dedicated to e-commerce fulfillment, enabling same-day pickup and next-day shipping for lightweight items such as apparel and cosmetics.
Major e-commerce players partner with Yamato’s “Nekopos One-Stop” service or Sagawa’s 3PL centers, achieving delivery time reductions from an average of 2.5 days to 1.2 days through local dispatch.

With the right hub strategy, companies can offer next-day delivery and time-specified delivery even to remote islands and mountainous regions.

5. Continuous Improvement Through PDCA

Once a domestic network is in place, continuous quality improvement is achieved through PDCA (Plan–Do–Check–Act) cycles supported by data analytics tools.

Delivery Quality Metrics: Track delay and damage rates monthly.
Route Optimization: Use heatmaps to improve delivery routes and time slot allocation.
Customer Feedback: Collect receiver satisfaction surveys to refine delivery time windows and reduce redelivery frequency.
Sustainability KPIs: Set CO₂ emission targets and increase the ratio of EV delivery vehicles.

These ongoing adjustments contribute to both higher operational efficiency and sustainability goals.

Conclusion

A truly nationwide logistics network in Japan is built through five integrated pillars:partnerships with the Big Three carriers, shared-transport optimization, regional collaborations, strategic warehouse deployment, and a robust PDCA cycle.

By adopting this localized logistics framework, overseas e-commerce brands can move beyond cross-border dependency and deliver a customer experience that meets Japan’s exacting standards for speed, reliability, and care.

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