国际物流3_HND

Assessment Task for Higher National Unit Unit Code: F26Y 35

Unit Title: International Logistics

Assessment Task: Outcome 3

Candidate Information

Name:

SCN:

Major: Global Trade and Business

Centre:

Date:

1．Introduction

This report Explain the type of inventory decisions that ZK would have to make.Also the factors the company would take into account when choosing its transport methods.And how the company would take into account customer needs when deciding on warehousing facilities. Compare the benefits of each and discuss why this decision is suited to the organisation.

2．Procedures

The information from books internet and newspaper on October 08, 2010.

3. Findings

1.Firstly,ZK company should consider the inventory cost include depreciation, handling and insurance.Depreciation is cost allocation of fixed assets, consumed during its useful life,it is the decrease in the economic value of the capital stock of ZK company, through physical depreciation, obsolescence or changes in the demand for the services of the capital. The handling cost(especially the cost of packaging and mailing an order).ZK company have insurance for its product.It can minimize the loss of life and property.

Secondly,ZK company should consider the stock levels include minimum stock ,maximum stock ,re-order level and re-order quantity .The maximum stock that the ZK company is willing or able to hold .Minimum stock is the below which it is felt to be unsafe for the firm to operate .The re-order level and quantity means if ZK company want to re-order its stock,it will be bought in when stocks fall to the re-order level ,there is an unexpected variation in demand .When this applies a minimum level will be set .

Thirdly ,ZK company should consider the planning systems include the pull systems and push systems .Pull systems refer to a group of techniques that aim to ensure that when stock is used it is replaced .Push systems are made for everything likely to be

needed .The obvious disadvantage is that it is difficult to forecast all of the time .

2.The ZK company would take into account when choosing its transport methods ,it will think about cost factor .With high costs involved in storage and transportation it is essential that the right levels are maintained .It is very important .Also ZK company to keep control produce during transportation. The manager shall provide the complete safety of the goods during the transportation. Picking a flexible transportation such as road. Analysis of the product type and product attributes. Also as with any transport decision, it all boils down to understanding what its target audience wants.ensure the produce supply's continuity.

3.Over the past 10 years ZK has steadily increased their international partnerships and have built a reputation for quality products, adaptability, flexibility, excellent customer service and delivery reliability. Currently they manage a 95% availability on stock items.The ZK company has build warehouses in every factory.Helping to supply domestic and international markets.Providers of international logistics in ZK market,helping ZK company to continuous supply products and keeping low inventory to increase flexibility.

4.The providers of international logistics can provide different services include freight forwarding, groupage, inventory management and undertaking the entire logistics operation. The freight forwarding is a ZK company that organizes shipments for individuals or other companies and may also act as a carrier. Freight forwarders typically arrange cargo movement to an international destination. Also referred to as international freight forwarders, they have the expertise that allows them to prepare and process the documentation and perform related activities pertaining to international shipments.Groupage services are often provided through specialist divisions of companies .They give customers the best level of service with accurate documentation and commitment to ensuring that the best possible whether customers require large commercial freight orders or one-off orders .Contract logistics experts

work closely both with the customer and all parts of company operation to maintain cost-effectiveness and service level requirements .There is continuous investment in new technologies to provide the best solutions and business intelligence .The ZK company recognises this and has invested in good management to support its aim of being a lead logistics solutions provider .ZK was established in 1995 and produce a range of toys and gifts, undertaking the entire production process from design and development to production.

5．After long time of dedicated operators，ZK has won broad international recognition of its high-quality staff team。ZK currently employ two specialist dedicated international logistics organisations to deal with their international deliveries and to help them meet their customer service and fulfillment targets.

ZK can realistically expect to offer all of the services grouped under logistics .So ZK company employ a specialist team of research and development staff that helps to ensure that the company’s products match the changing markets trends and needs and to guarantee the delivery of sample products within 14–21 days of order.

The shared users operators helps member businesses access the best outsourcing opportunities worldwide . ZK produce toys for the home market but also work with a number of international toy manufacturers and retailers in Europe, the USA, Canada, Australia and Japan. They currently undertake contract manufacture work for six companies

6. By outsourcing to a logistics, ZK can invest more time and money in its core competency .Decrease its operating costs .Decrease its staffing costs .Replace large fixed costs and overhead with variable costs based solely on volume .Maintain flexibility within its organization and more effectively manage future demands .Improve customer satisfaction rates .However ,ZK will loss of expertise in key areas and possible loss of quality control .In-house service are ofren valued for their fit and flexibility with the organisation .Because they are managed within the same policies ,structure and culture .However ,in-house services may have high

overhead and management costs ,If the volume of service is not large enough to justify the infrastructure required .There may be difficulties in reducing or increasing the volume of the service quickly enough to respond to needs .If organisation become very large and carry out a wide range of different activities ,they may become difficult to manage and difficult to change .Skilled staff who perform well may often be the best people to continue to carry out the activities being considered for outsourcing .

7.

4. Conclusion

Nowadays , the Li Ning Company's annual revenue was in excess of US$300 million dollars and the company is public company traded on the Hong Kong Stock Exchange.,it became a great succes company.Li Ning remains the company's Chairman of the Board.

5. References

1. Business culture and strategy: An introduction. Scottish qualifications authority.

2. Porter, M(1985) cometitive Advantage: creating and sustaining superior Performance,New York: Free Press.

3. Handy, C(1990) inside organization:21 Ideas for manages,London:BBC Books