1998, Volume 1, Paper 13
ISSN: 2209-6612
Sanchoku – Supply Chain Management in Japanese Consumer Co-operatives
R. Ada
H. Kawasaki
R. Doolan
Introduction
The Japanese Consumer Co-operative Movement is among the largest consumer buying groups in the world. . With more than 19 million members, a 2.7% share of the Japanese retail market and a 7% share of the Japanese food market, the co-ops are the largest retail group in Japan. Based on co-operative philosophies and democratic management principles, the Japanese consumer co-ops have developed a number of unique characteristics and methods of operation, such as the joint buying (Han) groups, Co-op Brand products and a number of consumer movements. These features, including sanchoku, have given the co-ops a special place in the distribution industry in Japan and assisted in their rapid growth.
Sanchoku or direct delivery (direct transactions) has become an important competitive feature for Japan’s consumer co-operatives. Whilst it is similar in many ways with direct supply contracts developed between commercial supermarkets and agricultural producers, sanchoku has developed a number of unique characteristics which bring consumers and producers together. Begun as a means of reducing the transactional costs between agricultural producers and consumers, sanchoku has become a mainstay of the consumer co-operative movement for the supply of fresh foods including fish, fruit and vegetables, beef and pork. Traditionally only used in developing relationships with Japanese producers, sanchoku is now being extended to international suppliers as the co-operatives seek safe, good quality food products from around the world.
In this paper, we aim to:
- provide an overview of the Japanese Consumer Co-operative movement
- give details of the operation of sanchoku in the regional co-operatives and a view of the future of sanchoku and opportunities for international sanchoku.
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