Group japan report nurul atikoh
THE INTERNATIONAL JOINT SEMINAR
and
VISIT FP CORPORATION
Tokyo, Japan 31 January – 4 February 2017
between Indonesia & Japan
Arranged by
Nurul Atikoh - 120820160007
Graduate School of International Cooperation Studies
Master of Management Program Faculty of Economics and Business
University of Padjadjaran
2017
PRELIMINARY
In the last three decades, Japan as a developed country faces several problems at once. Namely, the
demographic problems, stagnant economic growth for two decades, and the Fukushima crisis. However, it is
not a great nation if it cannot solve big problems. Japan has once again proved to the world that they can rise
from the problem. The resolution of Prime Minister Shinzo Abe or better known as Abenomics has shown quite
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promising results. Since its implementation in 2013, Japan has achieved the following achievements :
1. The amount of Gross Domestic Product grew from 495 trillion to 532 trillion yen between the 2012
and 2015. The figure below illustrates the differences before and after Abenomics:
Figure 1. Comparison Graph Before and After Abenomics
2.
3.
Corporate ordinary profits increased by 20 trillion yen between 2012 and 2015 annually.
Unemployment rate declined from 4.3%
Abenomics strategy drive from three main gear: Productivity Boost, Innovation and Trade, and Energize
Corporate Activities. Abenomics aims to reach 600 trillion Yen in the future. Some people contend that this
achievement is pure because of the Abenomics and Shinzo Abe factor. However, I believe that these
achievements are happening because of many internal and external factor. The traditional values of Japanese
society (i.e., loyalty, detail, optimism, perfection) play a crucial role. This tradition is multiplied by the
hardworking nature of Japanese society so that Abenomics strategy becomes manifest.
Padjajaran University in cooperation with Rikyo University conducted a field trip to Japan held on 31 January
2017 to 4 February 2017 to some locations. This report was created for:
1. Analyze marketing strategies undertaken in Japan in general by visiting the Daiso trading center and
Harajuku Street;
2. Analyzing the impact of cross-culture between Indonesia and Japan by studying the values, beliefs,
and policies applied in both countries to know the constraints faced by Indonesia as a developing
country and provide input for future improvement;
3. Analyze the practice of Sourcing and Supply Management in FP Corporation.
Through this field visit report, I will try to elaborate my reasoning on the success of Japanese achievement and
why Japan is a good Role-Model for Indonesia
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Source: http://www.japan.go.jp/abenomics/index.html
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MARKETING ANALYSIS REPORT
Study Case: Daiso and Harajuku Street
A. Daiso
Behind the relatively high prices of goods,
Japan has a shopping place that offers goods
at a low price of 100 yen or maybe around
Rp11,700 (exchange rate of 1 yen = 117
rupiahs). Moreover, amongst the largest 100
yen stores in all of Japan, a shop called Daiso
is one of the best known and touted as the
most complete 100 yen. Daiso is a big 100-yen
store franchise in Japan. Daiso is owned by
Daiso Sangyo Corp.
Figure 2. Daiso Japan
Daiso carries nearly 70.000 kinds of
household and personal items, ranging from
knick-knacks such as Japanese-style fan, piggy bank, key chains, or stationery. Then the various makeup-like
powder, eye shadow, many face cream, and mirror. Also, cooking utensils, toys and much more. Many of the
conveniences offered by this shopping center. The customer can pay for their purchase with cash, various types
of credit cards, including Visa, Amex, and Master Card.
Supply Chain Management Daiso
Upstream
Daiso sets itself apart from other 100 yen shops by avoiding “second factory merchandise.” Instead, they keep
prices low by purchasing directly from manufacturers in very high volume. This strategy also performed by the
biggest retailer in the USA, Walmart.
Daiso has several big international suppliers from Korea, Brazil, Austria, and China. Most of Daiso's products are
imported from China, but with its brand products. Although most of these products made in China, Daiso has
an excellent quality control to ensure the quality of their products. Moreover, Daiso design all of their product
by themselves.
Sourcing and Supply Management
Daiso has a large plastic factory located in Amata City, Thailand at 890,000 ft², which is famous for its water
quality. Daiso plastic products are developed using the latest injection molding techniques. The construction of
the factory is aimed at developing higher quality products as well as to maintain the supply of goods Daiso.
Daiso also developed ten delivery centers, 3 of them are spread between China and Thailand while the other
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seven are in the domestic . Figure 3 below illustrates the spread of Daiso main factory.
In addition to a good network, Daiso also has 23 giant warehouses in domestic that maintain the quality of
goods. Daiso also has a strategy in selecting local suppliers. For those who wants to become vendor, some
requirements need to be completed so that the goods sold by Daiso remain qualified.
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Source: http://www.daisoglobal.com/about/logistics
2
Figure 3. Daiso Main Factory
Source Picture: http://www.daisoglobal.com
Downstream
Daiso site selection is also highly considered to capture the number of middle-class consumers. To overcome
this challenge, Daiso invests much money on shelving and fixtures so their stores can compete in the middleclass market. Moreover, their stock on their store also adjusts frequently to increase the number of loyal
customers. Currently, Daiso has 3.000 stores in Japan and 522 stores abroad.
Figure 4. Daiso's Strategy
Supply Chain
Management Daiso
Strong Internaional
Supplier
3.000 stores in Japan
and 522 stores abroad
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B. Harajuku Street
Harajuku area, especially on Takeshita Dori (Takeshita Street) is
the center of Japan's most extreme teenage cultures and
fashion styles. Their streets are lined with many shops,
boutiques, second-hand stores, crepe stands and fast food.
These outlets are always following the fashion and trend,
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especially for adolescence .
Harajuku street is never empty of visitors, both domestic and
foreign tourists. The number of visitors Harajuku street
indicates the successful implementation of marketing
strategies.
In my opinion, Indonesia has potential to develop shopping
center like Harajuku in Japan after I do the PESTLE analysis.
PESTLE Analysis, is a tool in understanding the big picture of
the business environment besides the opportunities and
threats that happen around the business. Thus,
this
analysis
Figure 5. Harajuku Street
will help us to get a better understanding and
create a better
strategy that maximizes the opportunities and
minimize the
threats.
Specifically, the PESTLE analysis is a tool for determine a strategic positioning of our business and maximizes its
potential. This analysis also used to give influence on the organization.
In this case, PESTLE analysis at Harajuku Street are:
1.
2.
3.
4.
5.
Political
Political factors include applicable laws, government policies, and formal or informal rules in the
corporate environment (ex-tax policies and local regulations). According to the observations in the field,
the government supports the Harajuku Street. The government legalized and made Harajuku street as
one of the tourist destination. Some people take advantage of this place as a center to find support
from young people by organizing various events in this area.
Economic
Economic factors include every factor that affects the business climate of a company and the purchasing
power of the customer (i.e. economic growth and exchange rate). Based on observations in the field,
the price of a similar product is lower in Japan than in Indonesia. For example, the price of iPhone that
was sold in Daiso Japan only 60-70% from Indonesia’s price. This lower price is due to the strength of
Yen over Indonesian Rupiah. Moreover, the price for all overseas tourist did not include 7% tax.
Social
Social factors include everything that can affect the size of the existing market share and the needs of
the customer (i.e. population growth rate, the level of people’s education, social environment condition
and work environment). Based on observations in the field, there are many small traders with highquality products. This policy decreases the number of unemployment by giving a chance to all citizens to
compete in free market equally.
Technological
Technological factors include everything that can increase the efficiency of the company's business
processes and help in facing business challenges (i.e. discoveries and development, cost and benefit of
technology, and the impact that brought from technological change). All of the shopping place in
Harajuku street support an advance payment method from using cash, credit card, even virtual payment
like Apple Pay in some localities. This technology makes it easy for customers to shop.
Legal
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Source: http://www.japan-guide.com
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6.
Legal factors include legal influences like the changes to existing or future laws (i.e. health and safety,
employment direction, and environmental responsibility). Japan has strict rules on labor protection,
working hours and minimum wages. Field observations show that all sellers in Harajuku street are very
obedient to regulations such as not damaging the environment, not exploiting young workers, and so
forth. They feel secure that the government protects their rights.
Environment
Environmental factors such as geographic location factors can be used to create the strategic plan to
influence the customer. Harajuku street is not only a place to buy goods but also a place that sells
environment. Along the street will be found a group of school children with Harajuku style. They proudly
wear products sold on Harajuku street. Conscious or not, this Harajuku Style influences the customer.
Harajuku Street as an example of free market
place in Japan
(Poliic)
The government
support the
Harajuku Street
(Economic)
Support free
taxes for tourist
(Social)
Many small
traders with
high quality
(Technological)
Support
advanced
paymen method
and latest
technology
products
(Legal)
Protected by
local regulaion
(Environment)
Sell Harajuku
Style
Figure 6. The overview of PESTLE analysis at Harajuku Street
Figure 4. The overview of PESTLE analysis at Harajuku Street
C.
Recommendation
After doing marketing analysis on Daiso and Harajuku street, the are some recommendations to improve
business practices in Indonesia:
1. The government and the business community can create the concept of household supermarkets such as
Daiso, with typical products coming from various regions in Indonesia, with reasonable price. Such as
handbags from Bali woven fabric, or pencil case from Lampung cloth. In this case, the central government
should collaborate effectively with local government and business community from all regions in
Indonesia.
2. The businessman develops typical Indonesian products, whether in the form of goods or food. They also
should create a product standard by registering it into a patent, then made a community place in the
shape of a street that also sells the product.
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CROSS CULTURAL ANALYSIS REPORT
It is possible for Indonesia to reach the Japan's Success story through cross-culture analysis. Cross culture refers
to a company's initiatives to understand better each of different groups, to create effective communication or
to set up marketing efforts that can reach customers and clients outside its traditional market. The crosscultural analysis is intended to strengthen the interaction of customer from two or more different
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backgrounds. This analysis is a vital issue in international business . Cross-cultural consumer analysis is based
on a research find out how do the two different customers have similar or different in their consumption
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habits.
A. Value, Believes, and Policy
A typical Japanese mindset in buying products.
1. Looking for something new
Field report from Ginza and Akihabara areas (electronics store town in downtown Tokyo), I noticed
Japanese consumers' love to have new gadgets, new products, and new technologies. This lifestyle
indicates that Japanese people will look for newest products at any price.
2. High-quality standards
The Japanese customers are very concerned with the quality of the product. Seen from goods
purchased in Japan, most of the product purchased in ordinary merchants, this product still durable
and fully functional until two years.
Japanese consumer behavior on product quality is the reaction from the products that produced by a highquality standard. Although Japan has an open trade policy, the producer of the product still needs to fulfill
certain standard criteria before they can enter the Japanese Market. Besides, they must keep their high
standard to survive the competition in Japanese Market.
B. Acculturation
Most of the acculturation process in Japan is came from Western Culture. Namely, Christian celebration like
Christmas, new year and even Halloween always celebrated massively in Japan, although the majority of
Japanese society is not a Christian. Most of the Japanese customer see this celebration as the celebration
without the understand the real meaning behind the event. This condition is well used by manufacturers in
Japan to sell goods according to the theme of celebration.
C. World Brands
If we talked about the world brand, Japan is an outstanding market share for a brand that put forward quality
with high standard. This phenomenon can be seen when visited Japan. Almost all people used iPhone brand
phones. iPhone became a leading brand and dominated the mobile phone market in Japan. Some of the
world's brands are also seen in food products, clothing, and electronics: Food products like Starbuck coffee; the
apparel products like Uniqlo and Zara; and electronics product like Rolex watches. Japan was The Strongest
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Country Brands in 2014 , so if the competitor wants to enter the market, they must sell/create a product with
high standard and quality.
However, not all of these successful products have successfully penetrated Indonesia’s market due to halal
certification problems. For example, Oreo ice cream sandwiches, Baskin Robbins Nougat, Lays Flavor Mac and
Cheese or Pepsi Salty Watermelon. Most of the food products in Indonesia must have halal certification to get
customer’s attentions.
Source: http://www.investopedia.com
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Source: Guide Report of TAKUSHOKU Joint Seminar & Visit to Clean Authority of Tokyo - 15-19 May 2017
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Source: http://nation-brands.gfk.com
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Refers to the Japanese product, a lot of Japanese products that became the world brand entered the
Indonesian market. The latest product that entered was Pablo bread. On the other hand, food products such as
KitKat, electronic products such as Sony, Toshiba, Hitachi, Casio and vehicles such as Honda, Toyota and
Daihatsu were in the top position of the market share in Indonesia.
Interestingly, Indonesia's products that enter the Japanese market is mostly food products. The example of the
products that pass through the rigorous selection of self-service and Japanese health agencies are natural
honey products, herbal tea (PT Aksara Kencana Putra), ginger drink (PT Intrafood), snacks, instant noodles (PT
Indofood CBP Sukses Makmur), and coffee Indonesia (PT Aimfood Manufacturing Indonesia). In addition to
food products, other products such as Polygon (bicycle) and Toshiba also enter the Japanese market. However,
it lacks a name in the Japanese market.
It is Possible for Indonesia to reach the Japan's Success story
Values, Believes, and Policy
Open Minded
Open policy
Acculturaion
Celebraion Culture.
Opportunity for
developt product
(but) domesic
product?
World Brands
Japan: Kitkat, Casio,
Toyota, Daihatsu,
Honda, Kawasaki,
Sony, Toshiba, tec
Indonesia: JCo,
Indomie, Polygon,
Politron, Edward
Forrer, etc
Figure 7. The overview of cross-cultural analysis
D. Recommendation
After doing cross-cultural analysis, Indonesia can imitate the process of cross-cultural marketing in Japan
because Indonesia has a very strategic location between two large continents and two large oceans. Indonesia
has become and plural maritime country for thousand years ago. Indonesia is a perfect place for exchange
transaction from different cultures. The nature of a high consumerism of Indonesian people makes Indonesia
an up-and-coming target market for Developed Country. Because of that, the government must protect
Indonesian, so they are not drowning in foreign products and eliminate the flagship products of the Indonesia.
If properly managed, it is not impossible that the flagship product of the Indonesia is spreading all over the
world.
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COMPANY VISIT ANALYSIS REPORT
SOURCING AND SUPPLY MANAGEMENT IN FP CORPORATION
A. About FP Corporation
FP Corporation is a manufacturer of food places number one in Japan. This food place is used for items such as
pre-cooked food that is easily damaged and bento lunch boxes that are sold in supermarkets and stores.
The strengths of FP Corporation can be seen through:
1. Products. The product is an item needed by the entire Japanese society;
2. Technology. FP Corporation has an industrial technology innovation in the processing of
environmentally friendly raw materials;
3. Network Infrastructure. FP Corporation Has an infrastructure network covering all areas of Japan;
4. Recycling. FP Corporation has a good recycling system called circular recycling.
FP Corporation utilizes an infrastructure network that covers all areas in Japan with excellent Supply Chain
Management (SCM) systems. In general, FP Corporation connects the capabilities of suppliers, companies
through great production processes, distribution power, recycling, and information networks.
FP Corporation has run SCM supply chain management system with:
1. Preparing the manufacturing schedule;
2. Manage detailed procurement planning;
3. Developing a product inventory plan based on the sales plan;
4. Preparing the intended transfer of manufacturing equipment to the factory according to demand.
By operating the above procedure, FP Corporation can optimize overall distribution costs whereby there is a
huge cost reduction enabling effective distribution to the shipping area. Therefore, the SCM practice applied by
FP Corporation is one of the best business practices in Japan.
B. Sourcing and Supply Management
One of the critical stages in Supply Chain Management is the sourcing and supply management. Supply
management can be defined as the identification, acquisition, and supplier relationships that a needed by the
company to attain its strategic objectives. Swink (2014) claims that sourcing includes the identification,
evaluation, and selection of suppliers, is an essential part of supply management.
Suppliers will provide a broad range of resources to the organization. Sourcing and Supply Management is
essential to achieve the target of the organization. Organizations buy not only raw materials, parts, and
components to create their products but also indirect materials such as office supplies to support the
organization’s goal.
FP Corporation is the example of the Company that successfully implement and innovate this Supply Chain
Management. This essay will explain the benefits and the drawbacks of sourcing decision in FP Corporation
supply management based on the results of the company visit on February 2, 2017. It is my contention that the
Company has already implemented the efficient process of the supply management for several reasons.
First
Their raw material is their products. In FP Corporation, input material was obtained from the waste of their
food trays products. These raw materials then were recycled into new food trays. FP Corporation manages the
input material to make food dishes also made recycling plant 26 years ago. The cost of Production can be
suppressed because of the efficiency the input material.
FP Corporation applies a circular recycle called "Tray to Tray" and “Bottle to Tray.” The work process of this
circular cycle is from the garbage of the used tray, and the PET (Polyethylene Terephthalate) bottle recreated a
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new tray. It means that the raw material of the product is a self-created product. This position benefits
companies. Concerning availability of raw materials, there will always be raw materials for its products.
Regarding cost, this product is produced from raw materials that do not need the purchase process.
Figure 8. FP's Recycle Process
Second
The Company has agreements with 8400 suppliers. FP Corporation’s recycling method use the trays and
transparent containers from 8,400 supermarkets. These materials are sorted based on the material. The sorting
point centers are spread in nine places nationwide. Currently, FP Corporation has three recycling plant
specifically to manage the input for recycling of waste to produce the new tray of food. So, they have a strong
chain to make sure the supply of the raw material.
In the other hand, FP Corporation gets much help to recycle used PET trays and bottles. Citizen's participation
to supply PET trays and bottles is very high. The citizen collects used trays and bottles of PET inside a dump
placed in supermarkets and shops. After that, the truck carrying from FP Corporation brought trash and PET
bottles back to FP Corporation to be recycled. From the analysis, there are 4 actors in the collection of raw
materials. There are customers, supermarkets, packaging wholesale dealers, the company itself.
Third
The Company's policy to use the waste of their products increase the Company's Value. From the foam trays
and transparent trays collected and conveyed to the sorting plants in the relevant areas, they manually remove
those that are unable to be recycled and send the proper trays to the material recycling process. Then, the
sorted products are transported to recycling plants. This recycling plants is the place where they are
reprocessed into new trays and containers. Their high degree of precision in undertaking manual sorting
supports the production of high-quality Eco Tray products. This policy supports the "Green policy" of the
company.
On the Other Hand, some of the processes still depend on human force. In the process of sorting of the waste,
the role of humans is the primary determinant. Human force is more expensive than machine, and sometimes
human error can drop the quality of input product. However, the quality control still controllable in the next
phase.
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Figure 9. Analysis of Source and Supply Management in FC Company
C. Policy
In 1991 Japan enacted a Recycling Act with the aim of reducing the volume of waste and improving recycling.
Under this law, the producer company should attempt to design the product in such a way that it may be
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recycled easily, among others, by signaling the cans whether made of steel or aluminum .
The law on recycling of containers or wrappers that came into force in 1997 regulates the disposal of
containers or packing-packaging. Consumers are required to separate PET bottles, glass and tin (steel and
aluminum) bottles. Companies are required to recollect and reuse (recycle) containers of their products, like
PET bottles, glass bottles and so on. Then, in April 2000 came out another law regulating the wrapping of paper
and other types of plastics other than PET bottles.
Plastics and vinyl used as a cheap disposable packaging material because it is cheap to have become one of the
leading causes of dioxin gas and increasing waste. Therefore, it is endeavored for its use to be limited and
redefined as much as possible. Because of this government policy, FP Corporation can manage the business
process well.
The Japanese government imposed strict regulations on disposing of garbage in Japan. Ranging from picking
waste to disposal by categories, wrapping garbage by type until the time to get rid of trash.
Before disposing of garbage, people are asked to buy plastic bags for the garbage available in the supermarket.
Plastic bags are green for the waste that can still be processed naturally / organic (Moerugomi) and white color
for garbage that cannot be treated naturally / inorganic (Moenaigomi). However, these two colors do not apply
in all areas because each region has its color to distinguish the two types of waste. Likewise, waste plastic
purchased in Tokyo cannot be used in Hokkaido because each city has its waste plastic.
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Types of Trash:
1. Moerugomi (Trash that can still be processed naturally)
Consisting of household waste, such as kitchen waste, photos, diapers, wood pieces, and pillows. For
kitchen waste (food waste or fruit peel) first, squeezed, then put in a garbage bag.
2. Moenaigomi (Trash that cannot be processed naturally)
Consists of several types, namely:
a. Trash cans; i.e., canned drinks, canned food, and spray cans.
b. Bottle of drink; i.e., the plastic bottle of drink, glass bottle separated by color.
c. Bottle of cooking oil.
d. Plastic containers; i.e., instant noodle cups, plastic bottle caps, shampoo bottles.
e. Iron and small-scale electronic appliances; i.e., pots, hair dryers, electric carpets, fans, clocks.
f. Objects containing chemical elements; i.e., batteries, lamps, thermometers.
g. Paper waste; i.e., magazines, newspapers, comics, and cardboard. Try to make this type of garbage
first tied with a rope to tidy.
h. Processed plastic objects; i.e., plastic toys, cd boxes, buckets, toothbrushes, cigarette lighters. If
there is a lighter, it is advisable to remove any residual gas remaining to prevent a fire.
i. Processed glassware; i.e., cups, glasses, lamps, cosmetic bottles. For glass, debris waste is required
to be wrapped in advance with paper.
Trash Removal Schedule
In Japan, not everyday people can throw garbage. The citizen has to dispose of waste according to its type and
disposal schedule. Moerugomi rubbish is usually discarded twice a week, and plastic type moenaigomy is
usually disposed of once a week. However, this schedule also depends on every city or region, because every
city has different schedules in taking out the garbage.
Special Trash
In Japan, there is also a term of particular junk or garbage that cannot be thrown away for free. Types of
garbage such as cabinets, desks, chairs, TVs, computers, air conditioners, refrigerators, or microwaves, which
are legal cannot be disposed of in ordinary places. If the people are going to throw away things like that, they
should look back on the timetable dumping schedule that the local government has given away. People should
buy a coupon to throw away the garbage, the price also varies depending on the type of item the people want
to throw away, and the coupon is tacked on the item that people want to throw away as proof we throw the
garbage legally.
However, there is another way if the people intend to dispose of this type of garbage without buying a coupon,
they can throw it in a thrift store or "Recycle Shop." If the goods they want to dispose of is still good and under
5 years old then maybe we can get money from the goods but if the goods they want to dispose of is
damaged/old and aged more than 5 years then they will not get money or maybe even have to pay To the
Recycle Shop.
D. Asset Management Role
Looking at the business processes of Sourcing and Supply Management FP Corporation, not apart from the
important role of asset management. FP Corporation must manage the asset to make the business process
work properly, whether fixed assets or other assets.
The results of the analysis, there are fixed assets that become the most important part in the circular recycle of
FP Corporation's, there are Trucks, Equipment and Machinery, and Building. Therefore, the fixed assets
management within the FP Corporation becomes one of the main focuses to be considered.
The companies should implement good asset management stages, to maintain their assets to have maximum
performance. The phases of asset management that FP Corporation needs to do to maximize asset
performance are 1. Asset Inventory, 2. Legal Audit, 3. Asset Assessment, 4. The optimization of Asset
Utilization, and 5. Asset Management System.
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1. Asset inventory consists of two aspects, namely physical inventory and juridical/legal. Physical aspects
include shape, area, location, volume/number, type, address, and others. The juridical aspect is the
aspect of complete asset recording. The asset inventory indicator is:
a. Record of assets according to form, area, amount, value, and location;
b. Inventory period is done at least once in five years;
c. The annual reports are always done;
d. The coding and numbering of inventory on assets have been done;
e. Availability of competent human resources in handling inventory;
f. Availability of other information relating to the inventory of fixed assets of land, buildings and
buildings and equipment and machinery.
2. A legal audit is the scope of asset management work in the form of an inventory of asset control status,
systems and procedures for asset control or transfer, identification and finding solutions to legal
problems and strategies for solving various legal issues. Legal issues that are often encountered include
the alienation of unmonitored assets, or lost assets, with the indicator:
a. Land assets, buildings and equipment or machinery, have a clear and permanent ownership status;
b. The completeness of proof of ownership, such as a certificate, Building Permit, goods hand over
news, purchase receipt;
c. The alienation of land, building and building assets and equipment and machinery meets applicable
legal systems and procedures;
d. The group of assets with a weak mastery status.
3. Assessment of assets is a process of work to assess the assets of land, buildings and buildings and
equipment and machinery controlled. Indicators in asset valuation are:
a. The value of fixed assets is objective and relevant to current conditions;
b. Already earned the fair value of assets with lowest estimates;
c. Assessment is done in the preparation of balance sheet, utilization, and alienation, not for other
purposes.
4. Optimization of assets is a process of work in asset management aimed at optimizing the physical,
location, value, volume, legal and economic potential of the land, building and building assets and
equipment and machinery. In this stage, assets owned and belonging to the Ministry of Trade are
identified and grouped into potential and unlikely assets. With the indicator:
a. Assets are optimally utilized;
b. Has been grouped assets that have potential and no;
c. As an asset optimization step, idle assets are planned or can be made sales, alienation, utilization of
cooperation or eliminated;
d. Land, buildings and buildings and equipment and machinery have contributed to FP Corporation
revenue.
5. Supervision and control of assets aim to know and assess the actual reality of the implementation of
tasks and or activities. Is it following the inside procedure or not. Whether the work being carried out
can proceed by the designated plan and or the desired result has been under the established plan and
the desired result by all applicable terms and policies, with the following indicators:
a. The existence of technical policy and guidance in asset management;
b. The power of the user of the goods has done the monitoring and controlling in asset management;
c. Further audits have been undertaken as a result of the monitoring and control of the asset.
For the excellent performance of fixed assets owned by FP Corporation, it is necessary to perform the abovefixed asset management stages
E. Conclusion and Overview
In conclusion, the policy, and innovation applied by the company successfully transform the FP Corporation
into one of the best efficiency Source and Supply Management practice in Japan.
F. Recommendation
By seeing the success of source and supply strategy in FP Corporation as one of the best efficiency Source and
Supply Management practice in Japan, probably government and business actors in Indonesia can imitate their
business practices through:
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1. The government makes regulations on waste management;
2. The business actors had an awareness of waste processing and applied a standard for the company;
3. Cooperation between the government and related business actors.
The recommendations above require commitment and awareness to be realized.
REFERENCES
http://www.japan.go.jp/abenomics/index.html
http://www.daisoglobal.com/about/logistics
http://www.japan-guide.com
http://www.investopedia.com
http://pestleanalysis.com/what-is-marketing-analysis
http://nation-brands.gfk.com
https://kbritokyo.jp
http://www.imccsub.com
http://www.fpco.jp/en/en_about/en_company.html
Swink, Managing Operations, 2014
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and
VISIT FP CORPORATION
Tokyo, Japan 31 January – 4 February 2017
between Indonesia & Japan
Arranged by
Nurul Atikoh - 120820160007
Graduate School of International Cooperation Studies
Master of Management Program Faculty of Economics and Business
University of Padjadjaran
2017
PRELIMINARY
In the last three decades, Japan as a developed country faces several problems at once. Namely, the
demographic problems, stagnant economic growth for two decades, and the Fukushima crisis. However, it is
not a great nation if it cannot solve big problems. Japan has once again proved to the world that they can rise
from the problem. The resolution of Prime Minister Shinzo Abe or better known as Abenomics has shown quite
1
promising results. Since its implementation in 2013, Japan has achieved the following achievements :
1. The amount of Gross Domestic Product grew from 495 trillion to 532 trillion yen between the 2012
and 2015. The figure below illustrates the differences before and after Abenomics:
Figure 1. Comparison Graph Before and After Abenomics
2.
3.
Corporate ordinary profits increased by 20 trillion yen between 2012 and 2015 annually.
Unemployment rate declined from 4.3%
Abenomics strategy drive from three main gear: Productivity Boost, Innovation and Trade, and Energize
Corporate Activities. Abenomics aims to reach 600 trillion Yen in the future. Some people contend that this
achievement is pure because of the Abenomics and Shinzo Abe factor. However, I believe that these
achievements are happening because of many internal and external factor. The traditional values of Japanese
society (i.e., loyalty, detail, optimism, perfection) play a crucial role. This tradition is multiplied by the
hardworking nature of Japanese society so that Abenomics strategy becomes manifest.
Padjajaran University in cooperation with Rikyo University conducted a field trip to Japan held on 31 January
2017 to 4 February 2017 to some locations. This report was created for:
1. Analyze marketing strategies undertaken in Japan in general by visiting the Daiso trading center and
Harajuku Street;
2. Analyzing the impact of cross-culture between Indonesia and Japan by studying the values, beliefs,
and policies applied in both countries to know the constraints faced by Indonesia as a developing
country and provide input for future improvement;
3. Analyze the practice of Sourcing and Supply Management in FP Corporation.
Through this field visit report, I will try to elaborate my reasoning on the success of Japanese achievement and
why Japan is a good Role-Model for Indonesia
1
Source: http://www.japan.go.jp/abenomics/index.html
1
MARKETING ANALYSIS REPORT
Study Case: Daiso and Harajuku Street
A. Daiso
Behind the relatively high prices of goods,
Japan has a shopping place that offers goods
at a low price of 100 yen or maybe around
Rp11,700 (exchange rate of 1 yen = 117
rupiahs). Moreover, amongst the largest 100
yen stores in all of Japan, a shop called Daiso
is one of the best known and touted as the
most complete 100 yen. Daiso is a big 100-yen
store franchise in Japan. Daiso is owned by
Daiso Sangyo Corp.
Figure 2. Daiso Japan
Daiso carries nearly 70.000 kinds of
household and personal items, ranging from
knick-knacks such as Japanese-style fan, piggy bank, key chains, or stationery. Then the various makeup-like
powder, eye shadow, many face cream, and mirror. Also, cooking utensils, toys and much more. Many of the
conveniences offered by this shopping center. The customer can pay for their purchase with cash, various types
of credit cards, including Visa, Amex, and Master Card.
Supply Chain Management Daiso
Upstream
Daiso sets itself apart from other 100 yen shops by avoiding “second factory merchandise.” Instead, they keep
prices low by purchasing directly from manufacturers in very high volume. This strategy also performed by the
biggest retailer in the USA, Walmart.
Daiso has several big international suppliers from Korea, Brazil, Austria, and China. Most of Daiso's products are
imported from China, but with its brand products. Although most of these products made in China, Daiso has
an excellent quality control to ensure the quality of their products. Moreover, Daiso design all of their product
by themselves.
Sourcing and Supply Management
Daiso has a large plastic factory located in Amata City, Thailand at 890,000 ft², which is famous for its water
quality. Daiso plastic products are developed using the latest injection molding techniques. The construction of
the factory is aimed at developing higher quality products as well as to maintain the supply of goods Daiso.
Daiso also developed ten delivery centers, 3 of them are spread between China and Thailand while the other
2
seven are in the domestic . Figure 3 below illustrates the spread of Daiso main factory.
In addition to a good network, Daiso also has 23 giant warehouses in domestic that maintain the quality of
goods. Daiso also has a strategy in selecting local suppliers. For those who wants to become vendor, some
requirements need to be completed so that the goods sold by Daiso remain qualified.
2
Source: http://www.daisoglobal.com/about/logistics
2
Figure 3. Daiso Main Factory
Source Picture: http://www.daisoglobal.com
Downstream
Daiso site selection is also highly considered to capture the number of middle-class consumers. To overcome
this challenge, Daiso invests much money on shelving and fixtures so their stores can compete in the middleclass market. Moreover, their stock on their store also adjusts frequently to increase the number of loyal
customers. Currently, Daiso has 3.000 stores in Japan and 522 stores abroad.
Figure 4. Daiso's Strategy
Supply Chain
Management Daiso
Strong Internaional
Supplier
3.000 stores in Japan
and 522 stores abroad
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B. Harajuku Street
Harajuku area, especially on Takeshita Dori (Takeshita Street) is
the center of Japan's most extreme teenage cultures and
fashion styles. Their streets are lined with many shops,
boutiques, second-hand stores, crepe stands and fast food.
These outlets are always following the fashion and trend,
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especially for adolescence .
Harajuku street is never empty of visitors, both domestic and
foreign tourists. The number of visitors Harajuku street
indicates the successful implementation of marketing
strategies.
In my opinion, Indonesia has potential to develop shopping
center like Harajuku in Japan after I do the PESTLE analysis.
PESTLE Analysis, is a tool in understanding the big picture of
the business environment besides the opportunities and
threats that happen around the business. Thus,
this
analysis
Figure 5. Harajuku Street
will help us to get a better understanding and
create a better
strategy that maximizes the opportunities and
minimize the
threats.
Specifically, the PESTLE analysis is a tool for determine a strategic positioning of our business and maximizes its
potential. This analysis also used to give influence on the organization.
In this case, PESTLE analysis at Harajuku Street are:
1.
2.
3.
4.
5.
Political
Political factors include applicable laws, government policies, and formal or informal rules in the
corporate environment (ex-tax policies and local regulations). According to the observations in the field,
the government supports the Harajuku Street. The government legalized and made Harajuku street as
one of the tourist destination. Some people take advantage of this place as a center to find support
from young people by organizing various events in this area.
Economic
Economic factors include every factor that affects the business climate of a company and the purchasing
power of the customer (i.e. economic growth and exchange rate). Based on observations in the field,
the price of a similar product is lower in Japan than in Indonesia. For example, the price of iPhone that
was sold in Daiso Japan only 60-70% from Indonesia’s price. This lower price is due to the strength of
Yen over Indonesian Rupiah. Moreover, the price for all overseas tourist did not include 7% tax.
Social
Social factors include everything that can affect the size of the existing market share and the needs of
the customer (i.e. population growth rate, the level of people’s education, social environment condition
and work environment). Based on observations in the field, there are many small traders with highquality products. This policy decreases the number of unemployment by giving a chance to all citizens to
compete in free market equally.
Technological
Technological factors include everything that can increase the efficiency of the company's business
processes and help in facing business challenges (i.e. discoveries and development, cost and benefit of
technology, and the impact that brought from technological change). All of the shopping place in
Harajuku street support an advance payment method from using cash, credit card, even virtual payment
like Apple Pay in some localities. This technology makes it easy for customers to shop.
Legal
3
Source: http://www.japan-guide.com
4
6.
Legal factors include legal influences like the changes to existing or future laws (i.e. health and safety,
employment direction, and environmental responsibility). Japan has strict rules on labor protection,
working hours and minimum wages. Field observations show that all sellers in Harajuku street are very
obedient to regulations such as not damaging the environment, not exploiting young workers, and so
forth. They feel secure that the government protects their rights.
Environment
Environmental factors such as geographic location factors can be used to create the strategic plan to
influence the customer. Harajuku street is not only a place to buy goods but also a place that sells
environment. Along the street will be found a group of school children with Harajuku style. They proudly
wear products sold on Harajuku street. Conscious or not, this Harajuku Style influences the customer.
Harajuku Street as an example of free market
place in Japan
(Poliic)
The government
support the
Harajuku Street
(Economic)
Support free
taxes for tourist
(Social)
Many small
traders with
high quality
(Technological)
Support
advanced
paymen method
and latest
technology
products
(Legal)
Protected by
local regulaion
(Environment)
Sell Harajuku
Style
Figure 6. The overview of PESTLE analysis at Harajuku Street
Figure 4. The overview of PESTLE analysis at Harajuku Street
C.
Recommendation
After doing marketing analysis on Daiso and Harajuku street, the are some recommendations to improve
business practices in Indonesia:
1. The government and the business community can create the concept of household supermarkets such as
Daiso, with typical products coming from various regions in Indonesia, with reasonable price. Such as
handbags from Bali woven fabric, or pencil case from Lampung cloth. In this case, the central government
should collaborate effectively with local government and business community from all regions in
Indonesia.
2. The businessman develops typical Indonesian products, whether in the form of goods or food. They also
should create a product standard by registering it into a patent, then made a community place in the
shape of a street that also sells the product.
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CROSS CULTURAL ANALYSIS REPORT
It is possible for Indonesia to reach the Japan's Success story through cross-culture analysis. Cross culture refers
to a company's initiatives to understand better each of different groups, to create effective communication or
to set up marketing efforts that can reach customers and clients outside its traditional market. The crosscultural analysis is intended to strengthen the interaction of customer from two or more different
4
backgrounds. This analysis is a vital issue in international business . Cross-cultural consumer analysis is based
on a research find out how do the two different customers have similar or different in their consumption
5
habits.
A. Value, Believes, and Policy
A typical Japanese mindset in buying products.
1. Looking for something new
Field report from Ginza and Akihabara areas (electronics store town in downtown Tokyo), I noticed
Japanese consumers' love to have new gadgets, new products, and new technologies. This lifestyle
indicates that Japanese people will look for newest products at any price.
2. High-quality standards
The Japanese customers are very concerned with the quality of the product. Seen from goods
purchased in Japan, most of the product purchased in ordinary merchants, this product still durable
and fully functional until two years.
Japanese consumer behavior on product quality is the reaction from the products that produced by a highquality standard. Although Japan has an open trade policy, the producer of the product still needs to fulfill
certain standard criteria before they can enter the Japanese Market. Besides, they must keep their high
standard to survive the competition in Japanese Market.
B. Acculturation
Most of the acculturation process in Japan is came from Western Culture. Namely, Christian celebration like
Christmas, new year and even Halloween always celebrated massively in Japan, although the majority of
Japanese society is not a Christian. Most of the Japanese customer see this celebration as the celebration
without the understand the real meaning behind the event. This condition is well used by manufacturers in
Japan to sell goods according to the theme of celebration.
C. World Brands
If we talked about the world brand, Japan is an outstanding market share for a brand that put forward quality
with high standard. This phenomenon can be seen when visited Japan. Almost all people used iPhone brand
phones. iPhone became a leading brand and dominated the mobile phone market in Japan. Some of the
world's brands are also seen in food products, clothing, and electronics: Food products like Starbuck coffee; the
apparel products like Uniqlo and Zara; and electronics product like Rolex watches. Japan was The Strongest
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Country Brands in 2014 , so if the competitor wants to enter the market, they must sell/create a product with
high standard and quality.
However, not all of these successful products have successfully penetrated Indonesia’s market due to halal
certification problems. For example, Oreo ice cream sandwiches, Baskin Robbins Nougat, Lays Flavor Mac and
Cheese or Pepsi Salty Watermelon. Most of the food products in Indonesia must have halal certification to get
customer’s attentions.
Source: http://www.investopedia.com
5
Source: Guide Report of TAKUSHOKU Joint Seminar & Visit to Clean Authority of Tokyo - 15-19 May 2017
6
Source: http://nation-brands.gfk.com
4
6
Refers to the Japanese product, a lot of Japanese products that became the world brand entered the
Indonesian market. The latest product that entered was Pablo bread. On the other hand, food products such as
KitKat, electronic products such as Sony, Toshiba, Hitachi, Casio and vehicles such as Honda, Toyota and
Daihatsu were in the top position of the market share in Indonesia.
Interestingly, Indonesia's products that enter the Japanese market is mostly food products. The example of the
products that pass through the rigorous selection of self-service and Japanese health agencies are natural
honey products, herbal tea (PT Aksara Kencana Putra), ginger drink (PT Intrafood), snacks, instant noodles (PT
Indofood CBP Sukses Makmur), and coffee Indonesia (PT Aimfood Manufacturing Indonesia). In addition to
food products, other products such as Polygon (bicycle) and Toshiba also enter the Japanese market. However,
it lacks a name in the Japanese market.
It is Possible for Indonesia to reach the Japan's Success story
Values, Believes, and Policy
Open Minded
Open policy
Acculturaion
Celebraion Culture.
Opportunity for
developt product
(but) domesic
product?
World Brands
Japan: Kitkat, Casio,
Toyota, Daihatsu,
Honda, Kawasaki,
Sony, Toshiba, tec
Indonesia: JCo,
Indomie, Polygon,
Politron, Edward
Forrer, etc
Figure 7. The overview of cross-cultural analysis
D. Recommendation
After doing cross-cultural analysis, Indonesia can imitate the process of cross-cultural marketing in Japan
because Indonesia has a very strategic location between two large continents and two large oceans. Indonesia
has become and plural maritime country for thousand years ago. Indonesia is a perfect place for exchange
transaction from different cultures. The nature of a high consumerism of Indonesian people makes Indonesia
an up-and-coming target market for Developed Country. Because of that, the government must protect
Indonesian, so they are not drowning in foreign products and eliminate the flagship products of the Indonesia.
If properly managed, it is not impossible that the flagship product of the Indonesia is spreading all over the
world.
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COMPANY VISIT ANALYSIS REPORT
SOURCING AND SUPPLY MANAGEMENT IN FP CORPORATION
A. About FP Corporation
FP Corporation is a manufacturer of food places number one in Japan. This food place is used for items such as
pre-cooked food that is easily damaged and bento lunch boxes that are sold in supermarkets and stores.
The strengths of FP Corporation can be seen through:
1. Products. The product is an item needed by the entire Japanese society;
2. Technology. FP Corporation has an industrial technology innovation in the processing of
environmentally friendly raw materials;
3. Network Infrastructure. FP Corporation Has an infrastructure network covering all areas of Japan;
4. Recycling. FP Corporation has a good recycling system called circular recycling.
FP Corporation utilizes an infrastructure network that covers all areas in Japan with excellent Supply Chain
Management (SCM) systems. In general, FP Corporation connects the capabilities of suppliers, companies
through great production processes, distribution power, recycling, and information networks.
FP Corporation has run SCM supply chain management system with:
1. Preparing the manufacturing schedule;
2. Manage detailed procurement planning;
3. Developing a product inventory plan based on the sales plan;
4. Preparing the intended transfer of manufacturing equipment to the factory according to demand.
By operating the above procedure, FP Corporation can optimize overall distribution costs whereby there is a
huge cost reduction enabling effective distribution to the shipping area. Therefore, the SCM practice applied by
FP Corporation is one of the best business practices in Japan.
B. Sourcing and Supply Management
One of the critical stages in Supply Chain Management is the sourcing and supply management. Supply
management can be defined as the identification, acquisition, and supplier relationships that a needed by the
company to attain its strategic objectives. Swink (2014) claims that sourcing includes the identification,
evaluation, and selection of suppliers, is an essential part of supply management.
Suppliers will provide a broad range of resources to the organization. Sourcing and Supply Management is
essential to achieve the target of the organization. Organizations buy not only raw materials, parts, and
components to create their products but also indirect materials such as office supplies to support the
organization’s goal.
FP Corporation is the example of the Company that successfully implement and innovate this Supply Chain
Management. This essay will explain the benefits and the drawbacks of sourcing decision in FP Corporation
supply management based on the results of the company visit on February 2, 2017. It is my contention that the
Company has already implemented the efficient process of the supply management for several reasons.
First
Their raw material is their products. In FP Corporation, input material was obtained from the waste of their
food trays products. These raw materials then were recycled into new food trays. FP Corporation manages the
input material to make food dishes also made recycling plant 26 years ago. The cost of Production can be
suppressed because of the efficiency the input material.
FP Corporation applies a circular recycle called "Tray to Tray" and “Bottle to Tray.” The work process of this
circular cycle is from the garbage of the used tray, and the PET (Polyethylene Terephthalate) bottle recreated a
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new tray. It means that the raw material of the product is a self-created product. This position benefits
companies. Concerning availability of raw materials, there will always be raw materials for its products.
Regarding cost, this product is produced from raw materials that do not need the purchase process.
Figure 8. FP's Recycle Process
Second
The Company has agreements with 8400 suppliers. FP Corporation’s recycling method use the trays and
transparent containers from 8,400 supermarkets. These materials are sorted based on the material. The sorting
point centers are spread in nine places nationwide. Currently, FP Corporation has three recycling plant
specifically to manage the input for recycling of waste to produce the new tray of food. So, they have a strong
chain to make sure the supply of the raw material.
In the other hand, FP Corporation gets much help to recycle used PET trays and bottles. Citizen's participation
to supply PET trays and bottles is very high. The citizen collects used trays and bottles of PET inside a dump
placed in supermarkets and shops. After that, the truck carrying from FP Corporation brought trash and PET
bottles back to FP Corporation to be recycled. From the analysis, there are 4 actors in the collection of raw
materials. There are customers, supermarkets, packaging wholesale dealers, the company itself.
Third
The Company's policy to use the waste of their products increase the Company's Value. From the foam trays
and transparent trays collected and conveyed to the sorting plants in the relevant areas, they manually remove
those that are unable to be recycled and send the proper trays to the material recycling process. Then, the
sorted products are transported to recycling plants. This recycling plants is the place where they are
reprocessed into new trays and containers. Their high degree of precision in undertaking manual sorting
supports the production of high-quality Eco Tray products. This policy supports the "Green policy" of the
company.
On the Other Hand, some of the processes still depend on human force. In the process of sorting of the waste,
the role of humans is the primary determinant. Human force is more expensive than machine, and sometimes
human error can drop the quality of input product. However, the quality control still controllable in the next
phase.
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Figure 9. Analysis of Source and Supply Management in FC Company
C. Policy
In 1991 Japan enacted a Recycling Act with the aim of reducing the volume of waste and improving recycling.
Under this law, the producer company should attempt to design the product in such a way that it may be
7
recycled easily, among others, by signaling the cans whether made of steel or aluminum .
The law on recycling of containers or wrappers that came into force in 1997 regulates the disposal of
containers or packing-packaging. Consumers are required to separate PET bottles, glass and tin (steel and
aluminum) bottles. Companies are required to recollect and reuse (recycle) containers of their products, like
PET bottles, glass bottles and so on. Then, in April 2000 came out another law regulating the wrapping of paper
and other types of plastics other than PET bottles.
Plastics and vinyl used as a cheap disposable packaging material because it is cheap to have become one of the
leading causes of dioxin gas and increasing waste. Therefore, it is endeavored for its use to be limited and
redefined as much as possible. Because of this government policy, FP Corporation can manage the business
process well.
The Japanese government imposed strict regulations on disposing of garbage in Japan. Ranging from picking
waste to disposal by categories, wrapping garbage by type until the time to get rid of trash.
Before disposing of garbage, people are asked to buy plastic bags for the garbage available in the supermarket.
Plastic bags are green for the waste that can still be processed naturally / organic (Moerugomi) and white color
for garbage that cannot be treated naturally / inorganic (Moenaigomi). However, these two colors do not apply
in all areas because each region has its color to distinguish the two types of waste. Likewise, waste plastic
purchased in Tokyo cannot be used in Hokkaido because each city has its waste plastic.
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Types of Trash:
1. Moerugomi (Trash that can still be processed naturally)
Consisting of household waste, such as kitchen waste, photos, diapers, wood pieces, and pillows. For
kitchen waste (food waste or fruit peel) first, squeezed, then put in a garbage bag.
2. Moenaigomi (Trash that cannot be processed naturally)
Consists of several types, namely:
a. Trash cans; i.e., canned drinks, canned food, and spray cans.
b. Bottle of drink; i.e., the plastic bottle of drink, glass bottle separated by color.
c. Bottle of cooking oil.
d. Plastic containers; i.e., instant noodle cups, plastic bottle caps, shampoo bottles.
e. Iron and small-scale electronic appliances; i.e., pots, hair dryers, electric carpets, fans, clocks.
f. Objects containing chemical elements; i.e., batteries, lamps, thermometers.
g. Paper waste; i.e., magazines, newspapers, comics, and cardboard. Try to make this type of garbage
first tied with a rope to tidy.
h. Processed plastic objects; i.e., plastic toys, cd boxes, buckets, toothbrushes, cigarette lighters. If
there is a lighter, it is advisable to remove any residual gas remaining to prevent a fire.
i. Processed glassware; i.e., cups, glasses, lamps, cosmetic bottles. For glass, debris waste is required
to be wrapped in advance with paper.
Trash Removal Schedule
In Japan, not everyday people can throw garbage. The citizen has to dispose of waste according to its type and
disposal schedule. Moerugomi rubbish is usually discarded twice a week, and plastic type moenaigomy is
usually disposed of once a week. However, this schedule also depends on every city or region, because every
city has different schedules in taking out the garbage.
Special Trash
In Japan, there is also a term of particular junk or garbage that cannot be thrown away for free. Types of
garbage such as cabinets, desks, chairs, TVs, computers, air conditioners, refrigerators, or microwaves, which
are legal cannot be disposed of in ordinary places. If the people are going to throw away things like that, they
should look back on the timetable dumping schedule that the local government has given away. People should
buy a coupon to throw away the garbage, the price also varies depending on the type of item the people want
to throw away, and the coupon is tacked on the item that people want to throw away as proof we throw the
garbage legally.
However, there is another way if the people intend to dispose of this type of garbage without buying a coupon,
they can throw it in a thrift store or "Recycle Shop." If the goods they want to dispose of is still good and under
5 years old then maybe we can get money from the goods but if the goods they want to dispose of is
damaged/old and aged more than 5 years then they will not get money or maybe even have to pay To the
Recycle Shop.
D. Asset Management Role
Looking at the business processes of Sourcing and Supply Management FP Corporation, not apart from the
important role of asset management. FP Corporation must manage the asset to make the business process
work properly, whether fixed assets or other assets.
The results of the analysis, there are fixed assets that become the most important part in the circular recycle of
FP Corporation's, there are Trucks, Equipment and Machinery, and Building. Therefore, the fixed assets
management within the FP Corporation becomes one of the main focuses to be considered.
The companies should implement good asset management stages, to maintain their assets to have maximum
performance. The phases of asset management that FP Corporation needs to do to maximize asset
performance are 1. Asset Inventory, 2. Legal Audit, 3. Asset Assessment, 4. The optimization of Asset
Utilization, and 5. Asset Management System.
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1. Asset inventory consists of two aspects, namely physical inventory and juridical/legal. Physical aspects
include shape, area, location, volume/number, type, address, and others. The juridical aspect is the
aspect of complete asset recording. The asset inventory indicator is:
a. Record of assets according to form, area, amount, value, and location;
b. Inventory period is done at least once in five years;
c. The annual reports are always done;
d. The coding and numbering of inventory on assets have been done;
e. Availability of competent human resources in handling inventory;
f. Availability of other information relating to the inventory of fixed assets of land, buildings and
buildings and equipment and machinery.
2. A legal audit is the scope of asset management work in the form of an inventory of asset control status,
systems and procedures for asset control or transfer, identification and finding solutions to legal
problems and strategies for solving various legal issues. Legal issues that are often encountered include
the alienation of unmonitored assets, or lost assets, with the indicator:
a. Land assets, buildings and equipment or machinery, have a clear and permanent ownership status;
b. The completeness of proof of ownership, such as a certificate, Building Permit, goods hand over
news, purchase receipt;
c. The alienation of land, building and building assets and equipment and machinery meets applicable
legal systems and procedures;
d. The group of assets with a weak mastery status.
3. Assessment of assets is a process of work to assess the assets of land, buildings and buildings and
equipment and machinery controlled. Indicators in asset valuation are:
a. The value of fixed assets is objective and relevant to current conditions;
b. Already earned the fair value of assets with lowest estimates;
c. Assessment is done in the preparation of balance sheet, utilization, and alienation, not for other
purposes.
4. Optimization of assets is a process of work in asset management aimed at optimizing the physical,
location, value, volume, legal and economic potential of the land, building and building assets and
equipment and machinery. In this stage, assets owned and belonging to the Ministry of Trade are
identified and grouped into potential and unlikely assets. With the indicator:
a. Assets are optimally utilized;
b. Has been grouped assets that have potential and no;
c. As an asset optimization step, idle assets are planned or can be made sales, alienation, utilization of
cooperation or eliminated;
d. Land, buildings and buildings and equipment and machinery have contributed to FP Corporation
revenue.
5. Supervision and control of assets aim to know and assess the actual reality of the implementation of
tasks and or activities. Is it following the inside procedure or not. Whether the work being carried out
can proceed by the designated plan and or the desired result has been under the established plan and
the desired result by all applicable terms and policies, with the following indicators:
a. The existence of technical policy and guidance in asset management;
b. The power of the user of the goods has done the monitoring and controlling in asset management;
c. Further audits have been undertaken as a result of the monitoring and control of the asset.
For the excellent performance of fixed assets owned by FP Corporation, it is necessary to perform the abovefixed asset management stages
E. Conclusion and Overview
In conclusion, the policy, and innovation applied by the company successfully transform the FP Corporation
into one of the best efficiency Source and Supply Management practice in Japan.
F. Recommendation
By seeing the success of source and supply strategy in FP Corporation as one of the best efficiency Source and
Supply Management practice in Japan, probably government and business actors in Indonesia can imitate their
business practices through:
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1. The government makes regulations on waste management;
2. The business actors had an awareness of waste processing and applied a standard for the company;
3. Cooperation between the government and related business actors.
The recommendations above require commitment and awareness to be realized.
REFERENCES
http://www.japan.go.jp/abenomics/index.html
http://www.daisoglobal.com/about/logistics
http://www.japan-guide.com
http://www.investopedia.com
http://pestleanalysis.com/what-is-marketing-analysis
http://nation-brands.gfk.com
https://kbritokyo.jp
http://www.imccsub.com
http://www.fpco.jp/en/en_about/en_company.html
Swink, Managing Operations, 2014
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