The History of Logistics Development

1. The concept of "logistics" varies among different countries, institutions, and time periods. The earliest documented records of logistics activities can be traced back to the United Kingdom. In 1918, Lord Ham of Unilever in the UK established the "Instant Delivery Co., Ltd." with the aim of delivering goods promptly to wholesalers, retailers, and consumers nationwide. During World War II, the United States, driven by military needs, first adopted the term "Logistics Management" in the context of wartime munitions supply, comprehensively managing the transportation, replenishment, and storage of munitions. After the war, the term "logistics" was borrowed by Americans for use in business management, known as "Business Logistics," which refers to the integrated management of a company's supply, marketing, transportation, and storage activities.

2. According to records from the Japan Logistics Management Association, after the 1950s, Japan's economy had basically recovered to pre-World War II levels. Enterprises undertook large-scale equipment investment, renovation, and technological upgrading, leading to significant increases in productivity. In 1955, the Productivity Headquarters was established. To improve the efficiency of logistics information networks in the circulation field and ensure the smooth operation and development of the economy, this organization sent a large-scale inspection team led by Michio Izawa to study logistics in the United States in the autumn of 1956. At that time, the term "logistics" did not exist in Japan, and the delegation was named the "Circulation Technology Professional Inspection Team." During their stay in the United States, the famous American professor, Mr. Ken Bass, mentioned that one of the reasons for the smooth development of the U.S. national economy over the past 30 years was the emphasis on both production efficiency and circulation efficiency.

Upon returning to Japan, the inspection team proposed to the government the importance of logistics and initiated a PD enlightenment movement within the industry. A PD research society was established within the Japan Productivity Center, with Mr. Naoyuki Hirahara (former director of the Loading and Unloading Institute and president of the Japan Loading and Unloading Association, known as the "father of logistics" in Japan) as its president, holding monthly PD seminars. At the Circulation Economy Research Institute, Professor Shuji Hayashi, a leading Japanese logistics scholar, and others also organized a PD research society, actively conducting various forms of enlightenment and educational activities.

After eight years of effort, in 1964, the Japanese government finally began to pay attention to PD. The Ministry of International Trade and Industry (MITI) invited Mr. Naoyuki Hirahara several times to explain the importance of PD to government agencies and give lectures to government officials. In July of the same year, when MITI decided to discuss the logistics budget proposal, concerned that the Japanese media would not understand the term PD in their reports, they invited Mr. Naoyuki Hirahara to consult with Mr. Kuman Uchiyama (Managing Director of Nippon Express Co., Ltd.).