Research of Reverse Logistics Recycling Information Platform Construction for End-of-Life Vehicles

Abstract:

Recycling of End-of-life vehicles in China shows a relatively backward than western developed countries, one of the reasons is some manufactures have not completed a recycling information system. This article analyzes the Reverse Logistics Recycling Information Platform Construction for End-of-life Vehicles; highlight the manufacturer take-back recycling models advantages and disadvantages, to show the necessity and urgency.

• Periodical: Applied Mechanics and Materials (Volumes 543-547)
• Pages: 4532-4535
• DOI: https://doi.org/10.4028/www.scientific.net/AMM.543-547.4532
• Online since: March 2014
• Authors: Xian Zhong Mu*, Sheng Tao Tang
• Keywords: End of Life Vehicle (ELV), Information Platform, Reverse Logistic

References

[1] Ensure that commercial confidentiality. As a mature industrial product, manufacturers take the highest level of understanding of their own products. Due to the intensive competition, manufacturers invested a variety of differentiated technologies that may be its own trade secrets or confidential designs. If the dismantling process of End-of-life vehicles is taken charge by third parties, some commercial confidentiality might be disclosed. The regulatory cost to ensure commercial confidentiality is not low [] Li-bin Yang: How to Implement the Automobile Reverse Logistics. Logistics Technology, Shanghai, Vol. 8 (2006).

[2] Readily available Customer Relationship Management (CRM) system. Manufacturers have the strong control of sales and distribution channels via the existing channel, they know the exact information of sold vehicles' performance, parameters and other information with full control capabilities. By holding such information assets, Manufacturers can easily manage the recycling of End-of-life vehicles and launch the appropriate services in time.

[3] Readily available Management Information System supports Reverse Logistics Recycling process management. Some manufacturers have finished the implementation of some business management information system, such as SAP ERP or Oracle ERP, there management software already have the extension ability to support Reverse Logistics Recycling Management. A lot of companies in Fortune 500 are aware of the importance of this kind of management information system. Some of the manufacturers invested on Product Lifecycle Management (PLM) software. That itself provides a certain amount of reverse logistics functions for business. For information system construction, this software eliminates a lot of the cost and human resource inputs. For those who do not use PLM, but also took large-scale management information system, the relative cost of its expansion into new information system, has obvious advantages in system integration, data interface, personnel training, etc.

DOI: 10.1007/978-3-540-24815-6_19

[4] Differentiation in Business Operation, enhance brand value. The concept of Recycling Economy continues to strengthen publicity, and some consumers have a deeper understanding of green consumption, they prefer to choose greener products. Manufacturers have to focus on the aspects concerned by customers, and highlight it via its products. Volkswagen has launched the Blue Motion car series that will lower fuel consumption. Competitive differentiation enhances their brand value. Similarly, Manufacturers take Green and effective reverse logistics operation into consideration as a point of competitive differentiation, provide consumers with high-quality recycling services, and thus enhance its brand value too. 1. 2 Disadvantages of Manufacturer Take-back Recycling Model.

[1] Operations risks. Manufacturer Take-back Recycling Model means that manufacturer must take all the processes of the entire reverse logistics management into their business consideration. End-of-life Vehicles recycling business with poor degree of specialization is risky to the main business, whether it is substantial help to the main business is unknown. Cost savings from recycling process is not controllable, and business ROI is difficult to be guaranteed. Some manufacturer's reverse logistics management is very confusing [] Zheng-gang He, Li-peng Ye, Wei Liao: Key issues in development of recycling and dismantling enterprises of end-of-life vehicles in China. Recyclable Resources and Circular Economy, Chengdu, Vol. 9 (2012).

DOI: 10.25236/ajbm.2022.041013

[4] Krikke HR, Kooi EJ, Schuur PC: Network design in reverse logistics, A quantitative model. New Trends In Distribution Logistics, Netherlands, Vol. 480(1999), pp.45-61.

DOI: 10.1007/978-3-642-58568-5_3

[5] Zheng-gang He, Junwei Gan, Wei Liao: Comparative Analysis and Choice about the Recycling Modes of end-of-life Vehicles Based on Different Recycling Participants. Ecological Economy, Chengdu, Vol. 1(2013), pp.106-108 ].

[2] Impact on the main business investment. Manufacturers need to spend a lot of manpower and resources to support this service, and this business may not be able to achieve enough profitability, so it is difficult to obtain strong support of investment, and the distributed part of investment from enterprises will affect the whole investment on the main business. 2. Reverse logistics information platform construction 2. 1 Reverse logistics information platform construction Factors In general, Manufacturer Take-back Recycling network includes the following elements: collection points, testing center, reprocessing center, distribution network as well as waste treatment center, involving users' application, information collection from users, data process, the recycling network infrastructure, information systems[4]. Although each collection point is independently scattered throughout the reverse logistics networks in different locations, yet the tracking status in the information platform should continuously record the accurate tracking data of each End-of-life vehicle. 2. Manufacturer Take-back Recycling Process Analysis The following figure describes a recycling process of End-of-life vehicles: Figure 1: Manufacturer Take-back Recycling Process We can see the whole recycling process includes a lot of data in the information platform needs. We should record accurate data and store them into database for further use. 2. 3 The platform overall demand design As we set Manufacturer Take-back Recycling Model as an example, the reverse logistics information platform is designed to match the whole recycling process. We should consider the combination of the new platform with the existing workflow. This contains more complex and uncertain factors, and will take time and resources to ensure efficiency. The main target is to build a platform and integrate with existing business processes, open interface with the existing information system that contains the basic business processes, and provide data flow analysis, internal system structure, module division, reserve integration interface, database design, software and hardware configuration requirements design. The system's main goal should be the organic integration with the various modules together to form a correct and high performance platform with accurate data, stable collaborative and efficient platform. Meanwhile the system needs to be easier, more secure, and more reliable[5]. 2. 4. Platform functional modules Design System module should include system management, reverse logistics management, recycling system processing, problem analysis, financial management, and customer relationship management. For subsystem modules are divided on the basis of the module from.

[1] System management module. To ensure system security, manage the access control for different users and identify authentication. This module includes user login, identify authentication, permission settings, and user maintenance.

[2] Reverse Logistics Management module. This module is for the vehicles in recycling process to collect End-of-life vehicles' checking and splitting information. This module includes recycling management, processing management, and disposal management.

[3] System processing module. This module manages the materials that can be directly used, or that need some repair and put the materials into use.

[4] Problem analysis module. For End-of-life vehicles into recycling process, manufacturer needs to analyze the certain problems accordingly. They need to build a knowledge database so as to effectively deal with them.

[5] Financial management module. Capital flow in the reverse logistics management information platform plays an important role to the whole company. This module includes cost management, revenue management, and asset management.

[6] Customer relationship management (CRM) module. CRM includes the customer's basic information as well as product information and other relevant information. CRM can provide fast and efficient service, not only reduces the cost but also to attract new customers and maintain existing customers. 3. Conclusion Information technology, communication technology and the rapid development of network technology can provide enough support for the End-of-life reverse logistics information platform construction. End-of-life Reverse Logistics Information Platform for manufacturers integrated with the existing information system make full use of all the resources, and meet the need of Green Manufacturing. After integration with the supply chain, manufacturer can coordinate with upstream and downstream suppliers, in conjunction with e-commerce. This issue remains to be more in-depth study and discussion. Acknowledgement This paper is sponsored by Beijing Key Disciplines Foundation : Resources, Environment and Recycling Economy(No. 033000541213004) References.