International Logistics 2.doc

International Logistics F26Y35-Outcome5 Class:10E6 Candidate Name:Ma bo da Candidate Number:21 Introduction:To answer what kind of impact that technological changes such as EDI have had on the logistics industry and how ZK could benefit from the EDI.To explain the concept of reverse logistics and its impact on ZK and its customers.Also to explain the need for green logistics and relate this to the international toy industry and other industrial.This report has been written.ZK Industrial Company based in Shantou,Guangdong Province,China.The companey was established in 1995 producing a rang of toys and gifts.During the past ten years,the company has increased their international partnerships steadily and built a good reputation for quality products and excellent customer service.1.The impacts of EDI on the logistics industry and how could ZK benefit from EDIElectronic Data InterchangeThe EDI is the structured transmission of data between members of supply chain. It is used to transfer business documents and exchange invoices, purchase orders and information requests in a supply chain from one business system to another.The two main sets of EDI standards: UN/EDIFACT: United Nations Directories for Electronic Interchange of Administration, Commerce and TransportXML: Extensible Mark-up Language With EDI,the whole logistics industrial would be able to cut out the need for repitition of manual tasks,to minimise costs,provide better customer care and provide reliable information for partners.ZK could benefit from the EDI system in the following ways.With the EDI system,ZK could use agreed product codes,location codes to take the place of re-keying of information and delivers robust data so that ZK could provide better customer service and provide reliable information for the partners to improve the communication. ZK could set up a modern network-based transportation on the base of the EDI system to save the time for whoever wants to track down the commodity.2. Explain the concept of reverse logistics and its impact on ZK and its customers.Redirecting or removing a product or service after the original point of sale is what reverse logistics about.The returned merchants may be kept in warehouse for storage, recycling, return to original manufactures for payment, selling in another market or combinations of all of theseThe aim is to maximize the value of the merchants.The following situation would be determined as reverse logistics:One: out-of-date produce/merchandiseTwo: returns from consumersThree: redistribution of merchandiseFour: overstocked goodsIf ZK managed the process of reverse logistics well enough,it would help ZK to create a competitive advantage and to bulid great reputation among the customers. To recall the defective toys or unsafe material of products helps ZK to limit potential harm to kids and payment for damages.Having no possibility to do any harm to the kid,which helps ZK to build good reputation and increase customer loyalty.If ZK used reverse logistics to recycle the packaging or old toys to reproduce new toys with less waste of resource,ZKs social image would be improved. In addition, the return of toys to change or repair also involves in reverse logistics, so ZK could fulfill customers requirements to increase customer satisfaction and leave a good company impact on customers to attract more customers in order to gain more market share and gain more profits.3. Explain the need for green logistics and relate this to the international toy industry and two other industries of your choice.Green logistics is a form of logistics which is calculated to be environmentally and often socially friendly in addition to economically functional. In the case of green logistics, all of the issues which pertain to regular logistics still apply, with the added factor of environmental friendliness. Sometimes, making products environmentally friendly also happens to play into economic concerns. For example, a beverage manufacturer could reduce the use of plastics by making thinner bottles, thereby cutting down on shipping costs. In other instances, making a product environmentally friendly may cost more, causing it to come into conflict with traditional logistics.For interest in the green logistics concept soared with increased consumer concerns about how products were manufactured and delivered in the early 21st century lot changes happened to many different industries.Impact on toy manufacturing industry:The managers involved in decision-making pay more attention on inventory management and materials purchase.And customers are demanding shorter delivery times, reductions in costs and improvements to the quality of service.They optimize their inventory management in order to make it serve the organization more efficient to save the resources involved during the process like electricity,petrol,ect To purchase the materials which can be recycled instead of those can not.For instance,purchase rechargeable batteries rather than dry batteries. Impact on energy industry:Companies and governments started to make huge investment in new,sustainable and clean energy than ever before.The US planned to make America energy independent by 2015 with new energy,like natural gas,solar energy.Impact on building design:Designers tended to design the building with more natural materials,like rocks,bamboo,rinds of trees.And make the building integrate into its neighbourhood.Pay more attention to engergy saving,4. Evidence of additional research and answers linked to the case material.The purpose of logistics is to reduce costs,notably transport costs.In addition,economies of time and improvements in service reliability,including flexibility,are further objectives.At the Kyoto conference, the worlds nations struggled to set binding limits on greenhouse gas emissions to protect future generations.Adaopting green policies and mearsures is increasingly acceptable.Individual companies are finding a balance between profit and environmental consideration.The least polluting modes are generally regarded as being the least reliable in terms of on-time delivery,lack of breakage and safety.Conclusion:Now,it is clear that what the forces of change for future development of international logistics are by explaining electronic data systems, assesssing the impact of reverse logistics in terms of customer needs and correctly assess the need for green logistics.Reference:1. Scottish Qualifications Authority, International Logistics, P128-132, P203