Geographical study on the change of the local wholesale business and the local cities accompanying informatization of distribution channels

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An important geographical change that has produced sophisticated information networks within wholesalers is the spatial separation of transaction locations and logistics depots. The need for face to face contact means that transactions will be directed to big cities that are convenient for representatives from manufacturing companies or chain stores. Meanwhile, logistics depots, which have become automated and integrated into a smaller number of large depots with the expansion of delivery areas, will be directed to suburbs with good traffic conditions (locations with proximity to a by-pass or interchange).Such trends will bring about three changes in Japan's regional economy. The first is the widening of the gap between cities due to the concentration of transaction functions in large cities. Concentration of wholesalers in regional-capitals like Sendai will continue and the gap in wholesale sales among regions will increase. The second is the drastic relocation of logistics depots. A typical example is the concept of supply chain management in which multiple manufacturers share one logistics depot in order to increase the delivery efficiency for each delivery area. The third is the collapse of the procurement function of small-scale retailers in line with the rapid decline of small and medium wholesalers. Wholesalers that are not good at responding to informatization will be alienated from transactions and many will be forced out of business or to reduce their function to vendors.