“In Japan, Rakuten has established a network of automated, labour-efficient fulfillment centres,” explains Komori, extending to “eight fulfilment centres in seven locations across the country (one of which is planned to start operations this year),” and “plans to expand that number by building three additional fulfilment centres by 2023.”
While Japan’s population density and highly-developed infrastructure allows Rakuten to operate out of what may seem a relatively small number of fulfilment centres, each one is still a considerable investment, particularly with the high cost of land and construction in the country. Therefore, Rakuten has had to maximise its investment. For example, the new facility Rakuten uses in Yamato City is quite different to a logistics facility in the US. It sits deep within the 35-million-inhabitant urban sprawl of the Greater Tokyo Area, in a heavily built-up area, and has a far smaller footprint than a typical Amazon fulfilment centre. However, through its more vertical approach, covering five floors above ground, it still sits near the standard total floor area of those of its Western rival, at 95,000 m2 (a little over 1 million sq ft)."
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