Logistic Management in the Shipment of Product from Japan to Northern Territory - Assignment Example

Logistic Management in the shipment of product from Japan to Northern Territory Introduction: The industrial age has brought about with it a growth in the market system and in the economy of the world. Trade has always been an important part of the production and market system of all nation states. This has thus led to the development of an arrangement that looks for the easy movement of goods from region to region. This has become of greater significance in the 21st century with the emergence of the global market where there has been observed a collapse of the barriers created by states to protect the domestic market and investors. Thus, logistics has arrived in a very important way in the functioning of the world economic order. The meaning of Logistic management is the transfer and movement of goods. Logistics is basically the flow of various factors such as goods, information, energy and people from one point to another (Baziotopoulos 2008). The point where it starts is the point of origin and the end point is called the point of consumption. Logistic management is a part of the supply chain management or the production management that deals with the organizing and controlling the flow and storage of goods and services, and also takes into account the related information that is used in the production process, which flows from one point to another, and also looks into the reverse movement of the same. It looks into the effective movement of the goods and services from one point to another to assist production in an economic and efficient method. Today the transfer of information has become an important service which is transported through logistic management, and this has led to the development of software development to assist the process. In the following report there shall be a detailed study conducted on the existing logistic management system that exists in the shipping industry that helps carry out trade between Japan and the Northern Territories. Aspects of Logistics and the area of influence in the case study: Logistics, as mentioned above deals with the management and flow of goods, services and even people from one region to another. It thus includes the aspects of integration of the all the data and information that is available, the transportation of the goods and services, the storage of the material, the handling of these goods and transportation material, the packaging and at times it even looks into the security aspects of the operation. In the following report the logistic aspects of the Japanese shipping industry will be looked into. In the current report there shall a detailed study on the shipping that is carried out between Japan and Northern Territory. Both the territories are surrounded by water, and thus shipping becomes an important method through which trade can be conducted. The two areas are divided by the waters of the Pacific Ocean. The only two methods through which trade between the two can be conducted is through shipping and airways, and since both areas have a large and extensive coastlines, thus making a more practical choice. Japan is today the leading trading partner in the area, and the trade between the two can be traced back to the 1960s (The Age 1972). The trade that is carried out between the two countries includes both export and import by both regions. In 2004, the total amount of goods exported to the Northern Territories by Japan amounted to 25.6 billion Australian dollars, while the amount that was imported from the area amounted to 18.7 billion Australian dollars. The two way trade thus amounts to almost 44.3 billion Australian dollars. The chief exports that are conducted by Japan to the region are passenger motor vehicles, transport motor vehicles, civil engineering equipment, motor vehicle parts, sound and video recorders, etc. The country of Japan is lacking in natural resources and thus the chief imports from the northern territory are agricultural imports and natural resources. These include coal, beef, iron ore, aluminum, wood chips, manganese and other natural resources (Sydney Morning Herald). We shall now look into the logistic management that is involved in ensuring the economic execution of the process of shipment between the two regions. Integration of information: The first important step in ensuring that effective trade can be carried out in any operation is to look at the viable choices and methods that are disposal to the structure. This can be carried out only through thorough research and study of the existing market and economic conditions. For example, in the year of 1937 when the Japanese were considering the Northern territory as the future source of beef for the region, the Sub manager of Nipon Yusen Kaisha was sent to Darwin to look into the existing conditions of the port facilities in the area. This helps ensure that the correct and current data is available so that it can be processed. This thus helps ensure that all the options are looked into and all factors considered before a method of trade is arrived at. Thus, there are set up from time to time trade delegations which travel into the other market and survey the current market trends. In the year of 2009, there were 40 exploration teams that surveyed the gas and oil supplies and investment opportunities, which were later analyzed to provide information to help establish exploration and investment opportunities in the area. Dr Burns, who is the minister of Asian relations and trade, met with the head of Inpex president Naoki Karoda to talk and establish relations. He also traveled to Niigata City to visit the gas plant situated in the area (Dr Burns 2009). Thus, integration of the information that is available is important so that the most economic, efficient and effective method of trade can be arrived at and established for the achievement of a stable system. Transportation: Transportation provides for one of the most important factors that needs to be taken into account while setting up any trading method or arrangement. Transportation includes the movement of the goods and services, the handling of the material. There have to be considered two important factors while looking at the transportation system of any project. This would then lead to the question of provision of vehicles and ports which are close to the centre of commerce in both the regions. Trade in Japan is usually conducted by the individual traders, who employ shipment companies to carry the material from the region to the Northern Territory. These companies include companies such as the MOL. The MOL is the Mitsui- OSK lines, which carries out most of the trade that the country conducts with other regions; it maintains the Australian route, the US route, and others. It has developed from the merger of the two shipping powers in the country, the OSK and the Mitsui Bussan Kaisha (Chida, Momohei Davies P N 1990). These two were operation since the late 1800s and have only grown since then. The transportation that is conducted is conducted has to be through large ships as the area that has to be covered is huge. There has also the problem that the cargo that is carried by these are large and heavy, as they are usually vehicle machinery. To meet the need there emerged the container ships which were built for the special purpose of carrying heavy loads, like minerals, vehicle, machinery from one area to another. There also been observed that the trend is that of specialization. There have been seen that certain ships have been built to carry certain load (Govan, A. 2007). This makes it easier to conduct the operation as a whole. There has also been seen that with the world facing energy crisis there have been developed ships which are more energy efficient ships. These consumed less fuel, and the performance that was experienced were better. Thus there was seen that with the containerization of the shipment process there was observed a more efficient and economic methodology of shipment which was more intoned to the requirements and demands of the market. Shipment of the goods are carried out in several ports that are located in the country. The leading ports that are used for the conduction of trade and commerce in the nation state are Abashiri, Akita, Chiba, Fukui, Fushiki, Hakata, Hakodate, Imari, Hitachi, Hirao, and others. Another important aspect of the transportation is the handling of the cargo at the docks. This is important to ensure that no damage is done to the products and that there is efficient uploading and transportation carried out. Thus, the functioning of the machinery at the docks also needs to discussed and studied in detail. The use of containers in the exporting of the products in the country has helped ensure that helps make the transportation execution more efficient and easy to handle. Usually it has been observed that at the docks to handle the heavy shipments the use of crane and gantry. These help ensure that the material is easily handled and moved without the problems or mishandling. These are usually used to pick up both twenty four equivalent units and the dry cargo containers (TIS). These are usually lifted through the forklifts. These equipments and shipments are thus equipped with forklift pockets (Shipping Department: Logistics Management). These are utilized by the shipment companies to lift empty or heavy containers with the help of forklifts. These are installed at the sides of the containers to facilitate balance maintenance. These have standard doors at one or both ends of the container to facilitate uploading and unloading of the cargo into the containers. The shipment before it is uploaded is weighed and sealed by the shipment teams, and when it reaches the other side, these are again unloaded and weighed. This is done to ensure that the whole process has been carried out with precession and there are no hitches. Also the quality of the shipment had to be maintained. These containers are usually low maintenance to ensure that they can easily be repaired. These can be made of different material such as aluminum, plywood or glass or steel. Steel is the cheapest and can easily carry high weight. It is usually this which is used to carry material from one end to the other. Inventory: Inventory is the specified management of the stocks of the goods. This has been mentioned in brief in the above section. The first important factor that has to be realized in this is that all shipments are of a specified size and quality. It is through the management of the inventory in the logistic management that it is ensured that it is maintained. The shipment and the material is weighed and the quality is checked when it is being loaded. This is then specified in the shipment order. After the transportation has taken place, the cargo is unloaded at the other side. Here the material is again checked and verified. This is then cross checked with the information on the shipment order. This is so conducted to ensure that there is no misuse of the cargo, and that it is delivered unaltered at its destination. That is the reason why the cargo is transported in dry containers, so that no damage is done to the cargo. Inventory is thus important as it maintains the quality and standard of the shipment and ensures that there is no abuse or tampering done with the cargo during the time of transportation. It extends accountability to the shipping company, and the suppliers. Warehouse or storage: It has to be realized that such large shipments once they have been conducted do not just travel directly to the markets. These are first collected from the ports and then stored in warehouses and storages across the area. In the Northern Territory the storage spaces have been placed and developed quiet close to the docks. This is a requirement because the shipment that are sent to the region are high, but are also durable. These storage spaces that are developed have to ensure that the items stored are maintained. In Australia there are certain restrictions in the storing spaces. The first is that the storage houses will only store items which movers are willing to move. Another problem that is encountered is that the climate in the area is such that the storage of items which are perishable is quiet difficult. As Japan exports only materials which are durable such as machinery, parts, etc the storages that are required are big and spacious. The special demand is high. The storages also have a list of the items that they will and will not store. This is a system that has been developed to ensure that there is no misuse of the storage space provided, and to ensure the safety of the storage company as well as of the cargo that is stored. There has usually been maintained a direct contact with the storage companies, and the warehouse is responsible for the cargo till it has been picked up by the concerned parties. On the reverse side, the material and the cargo that is imported into Japan from the region is usually agricultural and natural products. Products such as minerals like coal can be easily stored and maintained. But the storage that is provided for the perishables is more detailed as these require special care. The transportation and the storage is done using methods that utilize the help of freezers, and ‘warm weather’, where the temperatures are controlled. The food products are frozen and they are removed and taken to the markets as and when required to fill the demand, and if not required they can be kept in storage. This is the most economical and hygienic method of transportation and storage of food. Packaging: The packaging of the material that has been procured is an important step in the supply management chain to ensure that the logistics are better maintained. This is done through advertisement, where resources are channalized toward capturing the market and the interest of the people into demanding the products. The basic aim of the packaging stage is to create demand in the market for the product. Packaging looks at the most alluring and advantageous characteristics of the products and after evaluation of this, it sets about in setting up a campaign which highlights these in the market to attract attention to the products. In the Australian context, the machinery and the other products that are imported into the continent are sold in the market by local distributors who have knowledge of the demand and wants of the masses. They highlight the strong points of the products. For example, the Australian markets usually show a high demand for Japanese recorders, and the main suppliers in the area of the product are Sony, Nikon etc. In the machinery market also the demands for the Japanese products are high. Packaging also helps ensure that the product and its quality is maintained. It allows for physical protection of the cargo, like protection from vibrations, shocks, etc. It also helps ensure that the products that are transported and stored during the period do no undergo any damage or permeation (Yoxall; Jason, Bradbury, Langley, Wearn, Hayes, 2006). The packaging also allows for better treatment and management of the products as they are easy to handle, and this is especially necessary in the case pf large shipments where there is a huge amount being transported. Packaging allows for the units to be broken into precise and concise units which help in keeping account and tract of the products during the movements. Packaging also provides for methods for the correct handling of the cargo so that it is ensured that during the transportation there is no damage done to the cargo. It provides for instructions such as which side to hold up the cargo, what temperature is to be maintained, waterproof, etc. Package development also involves considerations for sustainability, environmental responsibility, and applicable environment and recycling regulations. Security: Security as a state or condition is resistance to harm. From an objective perspective, it is a structure's actual (conceptual and never fully knowable) degree of resistance to harm. That condition derives from the structure's relationship (vulnerability, distance, insulation, protection) to threats in its environment. This is usually not significantly important in the case of management of the logistics in the short space logistics. But in the current case study where there is shipment of large cargoes over long distances this is of utmost importance (Schneier B). This is important as it is only through this that the integrity of the cargo be maintained and also be ensured that the sanctity of the transaction is upheld. There have been maintained new and innovative methods in the current times to ensure against dangers of theft and other problems. There has been developed the fire alarm systems in the storage spaces, where they are smoke sensitive devices set up to ensure that there is protection against any danger and the cargo is safely stored. There have also been set up security cameras and other devices to ensure that there can be protection of the cargo and the products against any sort or form of tampering or theft. Conclusion: It can thus be concluded that the shipping organization that has been in practice between Japan and Northern territory has evolved and developed from the times since it has existed from the late 1800s. There have been many changes bought about in the system to help maintain its integrity and meet the demands and challenges of times. Today, it has been realized that an effective industry can only be managed through logistic management and the emerging global developments are catapulting logistics and supply chain managers into the forefront of their organizations. References: The Age 1972: Japan trade and investment in Australia, accessed on January 1, 2010 at http://news.google.com/newspapers?nid=1300&dat=19720404&id=Z8cQAAAAIBAJ&sjid=spADAAAAIBAJ&pg=6961,627606.  Baziotopoulos 2008: An Investigation of Logistics Outsourcing Practices in the Greek Manufacturing Sector; PhD thesis. Chida, Momohei Davies P N 1990: The Japanese Shipping and Shipbuilding Industries: A History of their Modern Growth. London: Athlone Press. Govan, A. 2007: Broadband debate key to NT's future, N.T. Business Review, vol. N/A, no. N/A, p.7 Dr Burns 2009: Minister Talks investment and trade in Japan, NT government media release, may 19 2009. Schneier B, Beyond Fear: Thinking Sensibly about Security in an Uncertain World, Copernicus Books, pages 26-27 Shipping Department: Logistics Management; Cargo Insurance, accessed on January 1, 2010 at http://www.export911.com/e911/ship/conShip.htm. Sydney Morning Herald 1937: Beef for Japan; Northern Territory, Supply Possible, accessed on January 1, 2010 at http://news.google.com/newspapers?nid=1301&dat=19370119&id=1NYQAAAAIBAJ&sjid=DpIDAAAAIBAJ&pg=3309,2565277. TIS: Standard Container, accessed on January 1, 2010 at http://www.tis-gdv.de/tis_e/containe/arten/standard/standard.htm.  Yoxall; Jason, Bradbury, Langley, Wearn, and Hayes 2006: Openability: producing design limits for consumer packaging. Packaging Technology and Science 16 (4): 183–243, July 2006. Read More