Thursday, May 28, 2009

Day 11 (十一) 5/26/09

Ports… international sea-faring shipping is the blood system of the international economy. Cities like San Francisco, London, Shanghai, and Kobe are supplied by a steady stream of massive, sea-faring vessels that, unbeknownst to us, keep our societies well fed and clothed. Our first destination for today was Kobe’s Custom’s Port Authority. After globalization and international treaties lowered tariff barriers, government bureaucracies wanted to ensure that exporting would still be difficult for international companies by requiring a stringent amount of paperwork. This also keeps weaker, financially riskier firms from shipping goods into Japan because only strong companies will be able to handle the complex exportation process into Japan.
The custom’s authority is divided into four divisions: the administrative division, the enforcement division, the custom’s division, and the post-custom’s division. The first handles the accounting and HR work, the second handles security issues and the criminal investigative measures the port authority must undertake to ensure the safety of Kobe’s citizens, the third handles the international paperwork, and the fourth compiles economic data and statistics from the port for the Japanese government’s use. Our Japanese guides were from the enforcement division, and gave us an interesting perspective on how Japanese regulates and implements its importation policies.
Interestingly, we meet some U.S. custom’s officials working in Japan on security enforcement. As explained by them, the U.S.’s only security importation security measures prior to 9/11 involved goods after they had arrived in the U.S. In lieu of 9/11, the U.S. decided to place Custom’s officials in other countries to check imported goods prior to them being shipped to the U.S. This allows Custom’s officials in the U.S. to know which goods are clear prior to arrival in the U.S., which ones require additional checking, and this also allows Customs to keep certain goods from being shipped to the U.S. if they are considered a security threat.
After a nice lunch in the park, we boarded the Ohwada 2 and took a tour of the port of Kobe. The first thing one is bound to notice about the port is the massive cargo cranes that pick up containers off the cargo freighters. Most of the wharfs the ships dock with are man-made, given that Kobe, and Japan itself, has undergone swift expansion since the 1970s. One could look out at a ship docked in one of the ports sitting still and without cargo containers on it or by it. The tour guide remarked that the economy of Japan has downsized so much that cargo containers that where once fully utilized are now sitting in the docks without cargo to carry.

After sailing back into port, we traveled to a Nissin warehouse being rented by Toy’s R Us Japan. Toys, toys, toys… all of the Toy’s R Us goods that are being shipped to the Western half of Japan are first processed at the distribution center in Kobe and then shipped to over 74 different stores. The goal of the warehouse was two-fold: quickly remix goods for immediate shipment to stores throughout Japan, or store goods for long-periods of time, as with Christmas goods. The remixing process and the equipment base of the warehouse were simple, but effective. I was thoroughly impressed with the efficiency of the warehouse’s supply chain process and inventory forecast system. Though the warehouse was being used at 60% capacity during our visit, this percentage approaches 100% during Christmas and other holidays.

Ever since I was a little kid, I bought toys, books, and games at Toy’s R Us. Seeing the distribution process of a company most American children are so fond of was incredibly fascinating. The speed with which toys and diaper packages flew through the warehouse only makes me ponder the efficiency with which toys must have arrived at my own hometown Toy’s R Us.
Tomorrow, downtown…

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