Amidst the maturing PC market and incessant price competition from international competitors, Japanese PC vendors are cutting down delivery times to minimize inventories and distribution costs.

 

Fujitsu plans to implement a system that enables delivery the day after a consumer purchases a computer at mass consumer electronics retailers. For corporate customers, delivery times will be trimmed from two days to one. The company looks to reduce its inventory to under half its 2000 level by the end of the current fiscal year.

 

Production migration to China has allowed Toshiba to ship PCs to retailers or enterprise customers in the US market directly from its Hangzhou plant. Expected to cut delivery times from seven days to four, this move is a contrast to the company's previous practice of shipping products to distribution centers first. Toshiba aims to apply the same strategy of direct shipments to the European and Asian markets in 2005. 

 

NEC has also restructured its distribution system, relocating its 13 nationwide distribution outlets to Tokyo. The company is able to ship approximately 70% of PCs to retailers a day after orders are placed, thus reducing distribution costs by 20%.