Panel Discussion - 'Green Logistics: An Emerging Solution', 16 June 2011, Double Tree Hotel (Hilton)

Prof Ir Dr Ruslan (lead researcher for one of MITRANS' funded research projects) and noted transport and logistics 'green guru' is a panel member for the discussion.

In addition to Prof Ir Dr Ruslan Other members of the panel were: 

1. Vincent Piket, EU Ambassador).

2. Mr Tom Wheelwright, Head of Public Policy Asia Pacific of DHL Express (Singapore) Pte Ltd.

3. Mr Patrick Hartless, Executive Director, Supply Chain Malaysia and Singapore, Nestle (Malaysia) Berhad.

4. Mr Anand Menon, VP, Head of Engineering and Technology for ASEAN, Siemens (M) Sdn Bhd.

5. Mr Thomas Bloemen, Customer Service Director, Maersk Line.

6. Mr David Jones, Chairman of EUMCCI (EU-Malaysia Chamber of Commerce and Industry).

 

Click here for more http://mitransuitm.blogspot.com/2011/06/panel-discussion-green-logistics.html

The 5 Myths About Product Returns

Author: Curtis Greve

http://grevedavis.com/

Many executives go out of their way to avoid product returns. In many companies, if you want to take a nap, just go lay down in the returns area and enjoy a peaceful rest. Ok, that may be a bit of an exaggeration, but not by much.

Executives regularly skip by the returns department during their facility tours because of flawed thinking. They most likely believe in one or more of the 5 myths of product returns.  Once they realize the impact of returns, and the truth about product returns is separated from the myth, they will never avoid the returns area again.

The 5 myths about product returns are:

Myth #1 – Returns are junk.
This is the biggest and most pervasive myth about returns.  Returns are not junk.  In fact, studies have found that only about 20% of returns are actually defective.  The other 80% are functional and are often valued at 75% to 95% of original value. Even defective returns have value if processed properly. If you look at the reasons consumers return their purchases, the number one reason is some version of buyer’s remorse. Thinking returns are just junk can cost a company a lot of money.

Myth #2 – When processing product returns, take your time, there is no hurry.
Key to maximizing the value of returns is to process returned goods as fast as possible.  Best-in-class returns operations will turn their inventory anywhere between 24 times to 50 times per year. For those companies that are not best-in-class, their managers think you can put off processing returns for a while. They will use the returns staff as flex staff for everything else. It’s not unusual to see the returns area go unmanned until the end of the month or longer.

Remember, returns are like bananas not like wine.  They don’t get better with age.  On average, returns lose 10% of their value every 30 days. Putting off processing returns is tantamount to burning money in the corner of your facility.

Myth #3 – You do not need dedicated returns management.
There are a number of companies that assign responsibility for returns management to a mid-level manager that already has a full time job.  Returns management is a function that requires executives to work with buyers, operations, sales people, accounts payable, and systems.  Asking somebody to figure out how to run returns and do their normal job is simply ensuring that returns will get the short end of the stick.

Myth #4 – Managing returns is much easier than running a distribution center.
Often, companies will take a second shift supervisor and put them over their reverse logistics operations.  The theory is that running a distribution center is much more complicated than running returns. If you believe this, you could not be more wrong.  In a DC, you receive, put away, pick, and ship orders that are composed of small, medium, and large containers. Somebody created a PO, notified the facility it was on the way, and when it arrived it was received on an invoice.  When orders are received, you generally go to the same location, pick the item, load it on a trailer and off it goes.  There are clear standards for receiving, picking and shipping and most companies have a WMS that drives the process.  The manager’s job is simply to staff the operations properly and keep them trained and happy.

Running a returns center is much more complicated.  First, you do not know what you are going to receive until you unload the truck.  Nobody orders returns.  When product returns are received, each item has to be inspected, and based on it’s condition, it could be handled one of six ways.  When shipping, a return authorization request usually has be provided by the OEM, and most of the product is not in the original carton or packaging which complicates everything. Returns processing requires dedicated, intelligent, leadership that is creative and has a broad set of skills.  A common mistake company’s make is to try to save a couple of pennies by not investing in leadership for the product returns management.

Myth #5 – You can use your WMS to process returns.  You don’t need special returns software.
Companies around the world lose a lot of money because they don’t want to invest in a returns management application (RMS).  They think they can use their existing WMS system to process returns.  However, there are so many differences (See Myth #4), that they end up doing a bulk receiving in the WMS and stacking the returned goods in a corner of their warehouse. Once the product is in the warehouse, it has to be manually inspected and prepared for shipping.  Every company’s we’ve worked with that was using their WMS for returns was shocked to learn how much money they had lost because they tried to save money by using their WMS that was not built to process returns.

Returns have a big impact on a company’s bottom line.
According to the NRF, the average retailer’s return rate is 8.12% of sales.  According to a study done by the Aberdeen Group, the average manufacturer spends between 9% and 14% of sales on returns.  Managing returns can have a big impact on a company’s bottom line.  A first step toward improving the bottom line contribution from managing product returns is to stop believing in the 5 mythes of product returns.

INDUSTRY - MITRANS MEETING 2011

In conjunction with our last Green and Reverse Logistics workshop in March 2011, Malaysia Institute of Transport (MITRANS), UiTM is conducting and expanding the discussion with more various stakeholders in the industry (i.e. manufacturers, third party logistics and government agencies).

MITRANS is taking the lead in green supply chain initiative in Malaysia with the collaboration of Malaysian Logistics Council. Thus, the meeting will be focused on the business sustainability agenda, experience sharing, getting feedback and establishing the network.

 The details as below:

Venue              : i-Learn Meeting Room, MITRANS UiTM, Shah Alam

Date                : 26 April 2011

Time                : 2.30 pm- 5.00pm

 Agenda:

Time	Agenda
2.30pm - 3.30pm	Introduction and presentation from MITRANS
3.30pm - 4.30pm	Round table discussion
4.30pm - 5.00pm	Hi-tea

Please call Ms. Hasmawati Mat Hassan at 013-3991835.

Toyota Sells One-Millionth Prius in the U.S.

TORRANCE, Calif., April 5, 2011 – Toyota Motor Sales (TMS), U.S.A., Inc., today announced the one-millionth sale of the Toyota Prius, the world's first mass-produced hybrid gas-electric vehicle, in the United States. It is the third milestone for Toyota's hybrid lineup in the last six months that started with the announcement of worldwide Toyota Prius sales topping two million in October 2010 and overall global Toyota hybrid sales passing three million last month.

"Since the Prius went on sale eleven years ago not a year has gone by when it hasn't been the number one selling hybrid vehicle in the U.S," said Bob Carter, Toyota Division group vice president and general manager. "Prius has become synonymous with the word hybrid and as we see fuel prices starting to rise again, it has accounted for more than 60 percent of hybrid passenger car sales so far this year. Prius paved the way for hybrids and while it is still the hybrid leader in sales and fuel economy, I'm proud to say that since its introduction, 13 other auto brands have seen the benefits of hybrid technology and joined the hybrid market."

The third-generation Prius topped the EPA's list of the Most Fuel Efficient Vehicles for 2011. It has been named the Best Overall Value of the Year for the last nine years in a row by IntelliChoice, and has the highest owner loyalty of any mid-size vehicle for four of the last five years according to R.L. Polk. More than 97 percent of all Toyota Prii sold since 2000 are still on the road.

Since it was introduced in the U.S. in 2000, Prius, when compared to the average car, has saved American consumers more than an estimated 881 million gallons of gas, $2.19 billion in fuel costs, and 12.4 million tons of CO2 emissions.

In January 2011 at the North American International Auto Show in Detroit, Toyota debuted the Prius v, the first vehicle to be debuted as part of the Prius family marketing strategy. Prius v, which goes on sale in third quarter of 2011, is a mid-size vehicle that provides more than 50 percent additional interior cargo space than the current Prius. In early 2012 Prius will launch two more Prius family members – the Prius c compact hybrid vehicle and the Prius Plug-in Hybrid vehicle.

Our comment :

Toyota is very well known for innovation. Not only for their product, their supply chain management has created a new benchmark and admired by their competitors and other industries. We had a great opportunity to have a speaker from UMW Toyota Malaysia in our last workshop series, we admired on how well their lean supply chain management being synchronize into their most popular TPS (Toyota Production System). Hybrid cars will be the next generation preferred model. Toyota not only lean in their practice and process, they really mean GREEN!

Agility Invests In Malaysia Logistics Facility

Friday, April 01, 2011 — Logistics Insight Asia - Top Story

Agility has broken ground on a logistics facility in Melaka, Malaysia. The new facility is scheduled to open in September and will house the Melaka branch office of Agility.

The new logistics center will support a variety of industry sectors and will target the growing alternative renewable energy industries in Melaka. It will also provide a full range of vendor managed inventory (VMI) and other logistics services to Agility's customers in this sector.

"Agility is at the forefront of developing its logistics services for the renewable energy sector in Malaysia," said Mike Gildea, Agility, CEO, Southeast Asia. "We are very proud to support the pioneering work of the State of Melaka in developing the Melaka World Solar Valley to facilitate industries in this fast emerging market sector. Malaysia is a strategically important country for us and opening this facility is another example of our long-term commitment."

The new 11,890 square meter hub will incorporate the latest energy saving technology and has been designed to meet the latest ecological standards, to include maximizing the use of natural light to reduce energy costs. The hub will be TAPA certified and will have 10 loading docks, a full staging area and will be able to handle both dangerous and non-dangerous goods.

Agility provides logistics services in Malaysia with 500 employees, seven offices and 50,000 square meters of warehouse space. Its Malaysia office serves customers in a range of industries, comprising automotive, hi-tech, retail, renewable energy and telecommunications.

Our comment; To drive a green initiative in Malaysia, we should look at the commercial sector. The focus should be more on the whole supply chain. The closed loop supply chain from the source until the end plus with the extension of the reverse supply chain, from procurement, manufacturing and packaging, storage, distribution and recycling.

While it is very good for this company (Agility) to start with their green building, we hope the manufacturers (their customers) will also playing their role for this green initiative.

The companies can start by looking at their 4Ps; Processing, Partners, People and Profitability.

We are saying the best approach for greening our transportation is by looking at the whole supply chain. Not by the transportation alone. We hope this will be a good start from the 3^rd party logistics like Agility to initiate this green agenda in Malaysia.

How to source sustainability

Companies should collaborate with their suppliers and competitors to ensure long term sustainability across the industry

 

Organisations should be prepared to invest in as well as purchase from their suppliers if they want to work towards long term sustainability. Photograph: Stringer/India/Reuters

In 2011 companies' supply chains will gain greater importance, irrespective of the size of businesses involved.

The primary driver of this trend is taking recognised measurements for water consumption, waste and greenhouse gas emissions and applying them to a company's supply chain.

But many businesses are finding this tricky for their overseas suppliers as the practical implementation of responsibility can vary from country to country.

Shirahime, a UK based ethical fashion consultancy, has published a guide to responsibly sourcing textiles and clothes from India.

Despite its narrow country and industry focus, the guide is packed with advice for any business looking to find responsible goods or services suppliers from overseas.

Be clear about the outcomes you want to achieve

Define aims clearly and build a strategy around the outcomes you want to achieve. Don't try to do everything all at once: focus on what is important now.

Don't look exclusively for suppliers who have certification. Certification is a costly process and may not guarantee the specific outcomes youwant.

Instead, visit potential suppliers and examine their operations for yourself. If you do this, make sure you have a suitable translator and cultural liaison who can guide your decision making process.

In addition, start networking, even if it's with your competitors. If you do this up front it can vastly increase your chances of success in finding the right supplier.

Consider company size alongside business practices

There can be a correlation between a supplier's size, the goods or services it provides, and its ability to operate responsibly.

As a broad rule of thumb, the larger the company the more comprehensive their offering will be. Yet the larger the company, the more likely it is that their business is focussed upon financial efficiency, not responsible practice.

Therefore, if you're looking for a responsible supplier it may be worth choosing smaller producers rather than bulk providers as your partners.

To make this affordable, you should collaborate with other companies, including competitors. Effective purchasing partnerships can influence medium sized enterprises significantly, leading to a greater overall focus on sustainability.

Consider alternatives to your preferred goods, service or country

India is the largest organic cotton producer in the world. However it also produces other sustainable natural fibres and is the eighth largest wool producer in the world. Few people would think of India as a source of wool and if your intention was to buy textiles from India you wouldn't immediately think of wool, would you?

In order to get the most responsible procurement deal, businesses have to change their mindset and be open minded about both the country of origin and the goods or service they're looking to procure.

Be prepared to invest as well as purchase

This final point is possibly the most important in Shirahime's report: the days of simply handing over the money to supplier are fading fast.

Instead, businesses need to think about how they can contribute long term value to their suppliers' enterprise beyond a simple commercial deal.

This is where the value of being clear in your outcomes and partnering with other companies can yield substantial benefits.

For example, your business wants to reduce carbon emissions and you and your partners have found a suitable company. However, you know this company's health and safety record is not desirable ... what can you do to improve it?

As part of the commercial relationship with your supplier, you can offer health and safety training and leverage resources across the partner companies as appropriate.

This is not about financial gain. It's about investing long term in the sustainability of both the supplier and purchasing companies: sharing skills and knowledge on a commercial basis for the benefit of all.

Richard Perkins, WWF's senior commodities adviser, agrees with Shirahime's approach. "You must be clear about the risks arising from your impacts and dependencies, that you're trying to mitigate," he says.

"It's all about drawing up your own analysis and then speaking to stakeholders to place risk mitigation and identification of opportunities alongside other purchasing criteria."

Chris Milton is a freelance journalist with strong ties to the sustainable business community. He writes regularly for The Ecologist, as well as The Washington Post and Green Parent. He's also been republished on several occasions by Scientific American.

PepsiCo unveils 100 percent plant-based bottle

PepsiCo creates entirely plant-based bottle, plans to cut carbon footprint

PepsiCo Inc. unveiled a new bottle Tuesday made entirely of plant material that it says bests the technology of competitor Coca-Cola and reduces bottles' carbon footprint.

The bottle is made from switch grass, pine bark, corn husks and other materials. Ultimately, Pepsi plans to also use orange peels, oat hulls, potato scraps and other leftovers from its food business.
The new bottle looks, feels and protects the drink inside exactly the same as its current bottles, said Rocco Papalia, senior vice president of advanced research at PepsiCo.

"It's a beautiful thing to behold," he said. "It's indistinguishable."

PepsiCo says it is the world's first bottle of a common type of plastic called PET made entirely of plant materials. Coca-Cola Co. currently produces a bottle using 30 percent plant-based materials and recently estimated it would be several years before it has a 100 percent plant bottle that's commercially viable.

"We've cracked the code," Papalia said.

PepsiCo announced the discovery Tuesday and said it plans to test the product in 2012 in a few hundred thousand bottles. Once the company is sure it can successfully produce the bottle at that scale, it will begin converting all its products over.

That could mean a switch of billions of bottles sold each year. Of Pepsi's 19 biggest brands, those that generate more than $1 billion in revenue, 11 are beverage brands that use PET.
Scientists said the technology is important innovation in packaging.

"This is the beginning of the end of petroleum-based plastics," said Allen Hershkowitz, a senior scientist with the Natural Resources Defense Council and director of its waste management project. "When you have a company of this size making a commitment to a plant-based plastic, the market is going to respond."

Coca-Cola said it welcomed other advances in packaging, but noted that it has scaled up use of its own plant-based bottle since introducing it in 2009. It also says it has demonstrated a 100 percent plant bottle in the lab and is still working to ensure it is commercially viable.

There are other plant-based plastics available or in development, but Herskowitz said these are not environmentally preferred because they typically use plants grown solely for that purpose rather than using the estimated 2 billion tons of agricultural waste produced each year. And these alternative plastics cannot be recycled.

PET plastic is a go-to material for packaging because it's lightweight and shatter-resistant, its safety is well-researched and it doesn't affect flavors. It is not biodegradable or compostable but it is recyclable.
A completely plant-based PET could change the industry standard for plastic packaging. PET is used in beverage bottles, food pouches, coatings and other common products.

Traditional PET plastic is made using fossil fuels, including petroleum, a limited resource that's rising in price. By using plant material instead, companies reduce their environmental impact.
Pepsi, based in Purchase, N.Y., said it has had dozens of people working on the process for years. While PepsiCo wouldn't specify the cost to research and design the new bottle, Papalia said it is in the millions of dollars.

The Associated Press, On Tuesday March 15, 2011, 2:08 pm EDT