Logistics Lecture Notes

Unit 1: Introduction to Logistics

Definitions of Logistics:

• Speaker 1: Management of procurement, movement of goods, and storage of inventory.
• Speaker 2: Delivery of goods to customers at the right time, place, and quality.
• Speaker 3: Planning, organizing, and managing operations to provide goods and services.
• Speaker 4: Involves purchasing, maintenance, distribution, and replacement of materials and staff.
• Speaker 5: Planning and support of operations such as warehousing, inventory, transport, procurement, and maintenance.

Job Responsibilities in Logistics

• Speaker 1: Organizes transport of goods; handles customer requests; negotiates shipping rates; books reservations; consolidates shipments; manages documentation and customs clearance.

• Speaker 2: Ensures safe and timely transport of freight and passengers; oversees budget and cost estimates; advises on shipping rates; prepares quotations.

• Speaker 3: Monitors stock locations; uses warehouse management systems for efficient storage and retrieval; liaises with transport and production departments; maintains equipment and health standards.

Unit 2: Logistics Providers

Key Providers:

• Provider 1: Leading transport company, offering competitive rates and flexible sea freight solutions (FCL and LCL).
• Provider 2: Specialist in home textiles, offering customized services (order picking, distribution, documentation).
• Provider 3: Air freight services provider, specializing in consolidated air freight forwarding with various flexible and cost-effective services.

Important Logistics Services Offered

1. Competitive rates with major shipping lines.
2. Custom solutions for shipping needs.
3. Web-based tracking for cargo in transit.

Online Shipping Tools

• Express Logistics Tool: Online tool for planning shipments, booking collections, preparing documentation, and tracking consignments.
• Intercargo eShipping: User-friendly booking system for price requests, scheduling transport, and real-time shipment information.

Unit 3: Continuous Replenishment Program (CRP)

• Definition: System activated by consumer demand coordinating information and goods flow.
• Process: Sales-based ordering system; orders processed based on stock levels noted at retail points.
• Example: Young Fashion retailer reduced inventory and transport costs by 15% and cut lead times to 18 hours through CRP.

Unit 4: Shipping Options

Transport Methods Comparison

• Inland Waterways: 6 days (cheap but inflexible).
• Road Transport: 4 days (50% more expensive than barge).
• Rail Transport: Express service takes 3 days (40% more expensive than road, less flexibility).

Shipping Container Types

1. General purpose containers for dry cargo.
2. Refrigerated containers (reefers) for temperature-sensitive goods.
3. Tank containers for liquids.
4. Open top containers for bulky cargo.
5. Flat rack containers for heavy loads.

Unit 5: Global Freight Logistics

• Container Specifications: Example of a 40-foot open top container (weight, dimensions, payload).
• Quotation Process: Steps for obtaining air freight quotation including details of goods and shipping requirements.

Unit 6: Express Delivery Challenges

• Discussed issues with delivery timeline and capacity constraints for express services.

Unit 7: Warehouse Management Systems (WMS)

• WMS 2x Features:
  • Centralizes inventories.
  • Reduces order cycle times by up to 25%.
  • Tracks material flow and optimizes processes.

Unit 8: Shipment Issues and Resolutions

• Discussed a delayed shipment and steps taken to resolve the issue.

Payment Methods in Logistics

1. Open Account: Risky for exporters; relies on customer payment compliance.
2. Letter of Credit: Secure method for new customers; detailed terms agreed upon.
3. Advanced Payment: Requires upfront payment from customers; safer for small businesses.