Project on logistic management and SCM

UNIT 2

UNIT -2

TRANSPORTATION WAREHOUSING MATERIAL HANDLING SYSTEM

PACKAGING

6-TRANSPORTATION

IMPORTANCE OF TRANSPORTATION PARTICIPANTS IN TRANSPORTAION DECISION

TYPES OF TRANSPORTS
FACTORS INFLUENCING TRANSPORTATIONCOSTS AND PRICING

IMPORTANCE OF TRANSPORTATION
Transportation plays an important role in economic success of a business by allowing the safe and efficient distribution of goods and services to the market. Transportation links the various integrated logistics activities. Transportation physically moves products from where they are produced to where they are needed.

PARTICIPANTS IN TRANSPORTATION DECISION

1. 1.

SHIPPER CONSIGNEE(DESTINATION PARTY OR RECEIVER) CARRIER GOVERNMENT PUBLIC

2. 3. 4.

1.

SHIPPER :

Shipper is the party who wants to transport the product to the market and ultimately to the final customer.
Shipper is also known as consigner and they are normally the businessman who produce the goods as per demand.

2. CONSIGNEE : Consignee is the person to whom the goods are sent. They may be a wholesaler, retailer or the final consumer.
3. CARRIER : The carrier is the service provider or the transporter who carries the shipment from the shipper to consignee.

4 GOVERNMENT :

Transportation is the core of the business which is fundamental to the economy of the country.

Economic prosperity of the society is the objective of the government. Beside this government also earns income by collecting tax on the transaction.

5 PUBLIC :

General public are the another party who have a large involvement in the transport transaction.

Public demand for the goods produced not only in the country but also all over the world.

TYPES OF TRANSPORTS

RAIL NETWORK ROAD TRANSPORT

WATRE TRANSPORT
PIPELINE TRANSPORT AIR TRANSPORT

RAIL NETWORK
Rail network is fully owned and operated by the government in India. This a major step for facilitating movement of goods throughout the country at a very low cost for promoting trade and business in the country.
1.

Advantages of rail transport: Rail transport facilitates long

Speed of operation in rail transport is high as compared to road because there is no traffic an railway has a right of way.

Rail transport useful for heavy and bulk products. 2- Disadvantages of rail transport : Railway transport is unsuitable for short distances and small quantity of goods.

ROAD TRANSPORT
1-Importance of road transport High flexibility and speed Ultimate mode transport Low capital costs are compared to railways Operating cost are higher Bad and unsafe road condition

2- Advantages of road transport:

1.

Less capital:- Road transport requires much less capital investment as compared to other transport. Door to door services:- The outstanding advantages of road transport is that it provides door to door services

2.

WATER TRANSPORT

FEATURES OF WATER TRANSPORT:Water transport has low capital cost as compared to other transport. Water transport has low operating costs as compared to rail and road transport.

1.

2.

1.

Advantages of water transport:The main advantages of water transport is the capacity to move extremely large shipments. Water transport is suitable for long distance and large volume shipments.

2- Disadvantages of water transport:

The main disadvantage of water transport is the limited range of operation it is the slowest mode of transport. If the port and destination are not

PIPELINE TRANSPORT
Generally liquids like oils, crude, petroleum products are transported in a pipeline. In India pipelines are used for transporting crude and petroleum products. Advantages of pipeline transport:1. Suitable for all weather 2. Low energy consumption 3. Space utilization

AIR TRANSPORT
FEATURES OF AIR TRANSPORT:1. Speed of transport is highest in air transport.
2.

Fixed cost is lower than rail or road.

3.

Test marketing is easy.

Product can be shipped directly from the factory as time of high

4.

Advantages of air transport:1. Less damage to goods

2.

High speed

3.

Quick service
Easy access

4.

Disadvantages of air transport:1. Restricted products

2.

Narrow coverage

3.

Risky
Very costly

4.

FACTORS INFLUENCING TRANSPORT COSTS AND PRICING

PRODUCT RELATED
DENSITY STOWABILITY HANDILING LIABILTY MARKET RELATED

1. 2. 3.

4.

PRODUCT RELATED FACTORS:1. Density: Density refers to weight and space aspects. Weight and space are important since transport cost is usually quoted in terms of per unit weight. 2. Stowability : It refers to product dimensions and

3- Handling:

Special handling equipments may be required for loading or unloading trucks railcars or ship.
The manner in which products are physically grouped together for transport and storage also affects handling cost.

4-liability: Some products are subjects to damage of goods, to theft. Carrier must either have insurance to protect against possible claims or accept responsibility for any damage. MARKET RELATED FACTORS: Location of markets Nature and extent of government Degree of completion Balance or imbalance of freight

7-WAREHOUSING

FUNCTION OF WAREHOUSE BENEFITS OF WAREHOUSE ALTERNATIVES WAREHOUSE STRATEGIES WAREHOUSE STRATEGIES

FUNCTION OF WAREHOUSE Receiving goods:-The warehouse should receive and accept responsibility or the goods that are delivered to it. 2. Identifying goods:- The goods that are received should be identified as per place, label, color code. 3. Sorting goods:- sort out the goods for appropriate storage area. 4. Dispatching goods to storage:-The goods that are sorted should be dispatched for temporary storage with
1.

6.Selecting,packing:- The items that are stored are selected and grouped according to customer order for dispatch. 7-Marshalling goods:-Marshaling means checking whether all the goods ordered by customers are dispatched properly. 8-Dispatching goods:-As per requirements order is packaged and directed to right transport.

BENEFITS OF WAREHOUSE
ECONOMICS BENEFITS SERVICE BENEFITS

1.

ECONOMICS BENEFITS
COSOLIDATION BREAK BULK CROSS DOCK POSTPONEMENT

2.
3. 4.

Services benefits

1.

Assortment
Mixing Product support Market presence

2.

3.

4.

ALTERNATIVES WAREHOSE STARTEGIES

PRIVATE WAREHOUSE PUBLIC WAREHOUSE CONTARCT WAREHOUSING

WAREHOUSING STRATEGIES

PRESENCE SYNERGIES INDUSTRY SYNERGIES OPERTAING FLEXLIBLITY

LOCATION FLEXLIBLITTY
SCALE ECONOMICS

8- MATERIAL HANDLING SYSTEM

STAGES IN MATERIAL HANDLING SYSTEM OBJECTIVES OF MATERIAL HANDLING PRINCIPLE OF MATERIAL HANDLING

FUNCTION PERFORMANCE

1-STAGES IN MATERIAL HANDLING SYSTEM: Material are transported from supplier to the plant . Unloaded inputs are moved to storage spaces and stacked. Stored inputs are moved to manufacturing location. Semi finished products are moved from one location to another within plant Finished goods are moved top

OBJECTIVE OF MATERIAL HANDLING :-

1.

Increase the storage capacity of warehouse Minimization of space

2.

3.

Reduction of the number of times product is handled Development of effective working

4.

TYPES OF MATERIAL HANDLING EQUIPMENTS

1. 1.

FIXED PATH FIXED DESTINATIOIN CONVEYORS ELEVATORS HOISTS VARIABLE DESTINATION CRANES AUTOMATED GUIDED INDUSTRIAL ROBOTS

VARIABLE PATH

PRINCIPLE OF MATERIAL HANDLING

1.

2.
3. 4. 5. 6.

7.
8. 9.

PLANNING STANDARDIZATION WORK PRINCIPLE ERGONOMIC PRINCIPLE UNIT LOAD PRINCIPLE SPACE UTILIZATION SYSTEMS AUTOMATION ENVIRONMENT

FUNCTIONS PERFORMANCE DURING MATERIAL HANDLING

Unloading the incoming material transport vehicle.

Moving the unloaded material to assigned storage place in warehouse. Lifting the material from its storage place during order picking.

SELECTION MATERIAL HANDLING EQUIPMENTS

1. 2.

Suitable for the type of materials Direction of movements

3.
4. 5.

Speed of movements
Path followed Power required for the operation of the equipments

9-PACKAGING
OBJECTIVES OF PACKAGING TYPES OF PACKAGING LOGISTICS FUNCTION OF PACKAGING FUNCTION OF PACKAGING BENEFITS OF GOOD PACKAGING

OBJECTIVES OF PACKAGING
1.

2.

3.

Increases customers service:-the packaging should be convenient for the customer to handle. Decreases overall cost:-packaging should be lightweight to reduce transportation cost especially for long distance. Facilitate easy handling:-it should provide easy material handling facilities.

TYPES OF PACKAGING
CONSUMERS PACKAGING:Consumer oriented packaging is a packaging which is designed for consumer convenience and appeal, marketing consideration and display. The main focus is on marketing. INDUSTRIAL PACKAGING:-Industrial packaging focuses on the handling convenience and protection during transportation, material handling, and storage. The main emphasis is on

LOGISTICS FUNCTION OF PACKAGING

1.

2.

3.

4.

Containment; Product must be contained before they are moved from one place to another. Usefulness; To reduce the output from the bulk\large quantity to size required by the customer. Unitization; To permit primary package to unitized into secondary package. This enables to reduce handling of the products separately and with ease. Convenience ;It offers customer

FUNCTIONS OF PACKAGING
1.

2.
3. 4. 5. 6.

7.

Physical protection Environment protection Cube minimization Weight minimization Facilitating handling and using Facilitating storage and reuse Communication

BENEFITS OF GOOD PACKAGING

1. 2.

3.

4. 5.

Packaging enhances customer services level. Lighter packaging saves transportation costs. Careful package planning helps better utilization of warehousing space. Reduce damages and losses of the products. Reduces requirement of special