chapter 3.pptx

CHAPTER 3: LOGISTICS ACTIVITIES STUDENTS LEARNING OUTCOME At the end of this class, the students should be able to describe: 1. The logistics activities cycle around the company 2. The functions of every cycle Recap from previous lecture: Logistics is about of planning, organizing and ma...

CHAPTER 3: LOGISTICS ACTIVITIES STUDENTS LEARNING OUTCOME At the end of this class, the students should be able to describe: 1. The logistics activities cycle around the company 2. The functions of every cycle Recap from previous lecture: Logistics is about of planning, organizing and managing activities that provide goods or services from point of consumption to the point of destination. There are 7Ps in logistics that should be care by company; product, price, place, promotion, people, process and physical evidence. The uniqueness of logistics can be consider in its utility which are Form, Possession, Time and Place. LOGISTICS ACTIVITIES 1. Communication 2. Order Processing 3. Packaging 4. Transportation 5.Customer Service Communication Due to increasing digitalisation of businesses, today’s consumers have higher expectations on how fast they should be able to access information. When communications are delayed or unsecured, it leads to supply chain risk which ultimately leads to incurred costs for not only service providers but its clients. In the long-run, it can lead to dampened customer relations, and even loss of customers. Creating a holistic communications strategy, Logistics processes must adapt to expanding both customer and supplier networks through innovative communication and information technologies, and employing efficient To implement a holistic strategy, the following can be considered: 1.Cloud Computing Many organisations have switched over to cloud computing. This enables logistics and shipment firms to secure the timeline clearance of goods through customs, to scheduled delivery or transport of goods by haulers and shipping agents, and to manage the shortest possible time and route for trucks, planes or ships. 2. Email Security and Compliance The security of email communications should also be factored. Information exchange between customers and suppliers needs to be of the highest quality and always up-to-date. Order Processing Order processing is the process associated with the packing and delivery of the packed items to a shipping carrier. Order processing is a key element of order fulfilment. Order processing operations or facilities are commonly called "distribution centers". Process of Order Processing Order processing is a sequential process involving: Picking: consists in taking and collecting in a specified quantity before shipment to satisfy customers' orders. Sorting: process that separates items according to destination. Pre-consolidation or package formation: includes weighting, labelling and packing. Consolidation: gathering packages into loading units for transportation, control and bill of lading. Packaging Packaging can come in many forms, mostly depends on the nature of the goods to be transported. Some goods are sold as it is but some are sold inclusive with its packaging itself, for example like watches by Dunhill or clothes by Chanel. There are 4 basics served of packaging: Cargo protection against theft and damage during transportation Content presentation again rotting, insect, or high and low temperature Presentation of its ingredients, shape and color to attract buyer Company promotion Marking and Labelling in Packaging There are a few common marks which can be found on packages: a. Shipping marks – information about consignee of the cargo (name, reference number, destination and package number) b. Information marks – information about the cargo such as weight, origin and cargo instruction handling c. Dangerous goods – all cargos that found dangerous and must be handled within the care d. Material safety data sheet – a sheet that explains the properties of the dangerous cargo and how to handle it. Transportation Involves all act of transferring goods/cargo from one location to another. Can be in terms of mode of motor vehicles like trucks or ship, or in order modes such as cables and pipe. Logistics cost that may occur include equipment maintenance, fuel, salary, etc. Types of Transportation Rail Road Water Air Pipeline Rail Transport: Advantages of Rail transport:  It is a convenient mode of transport for travelling long distances.  It is relatively faster than road transport.  It is suitable for carrying heavy goods in large quantities over long distances.  Its operation is less affected by adverse weathers conditions like rain, floods, fog, etc. Rail Transport: Limitations of Railway transport: It is relatively expensive for carrying goods and passengers over short distances.  It is not available in remote parts of the country.  It provides service according to fixed time schedule and is not flexible for loading or unloading of goods at any place.  It involves heavy losses of life as well as goods in case of accident. Road Transport  Advantages It is a relatively cheaper mode of transport as compared to other modes.  Perishable goods can be transported faster by road carriers over a short distance. It is a flexible mode of transport as loading and unloading is possible at any destination. It provides door-to-door service.  It helps people travel and carry goods from one place to another, in places not connected by other means of transport like hilly areas. Road Transport Limitations of Road transport Due to limited carrying capacity road transport is not economical for long distance transportation of goods. Transportation of heavy goods or goods in bulk by road involves high cost. Water Transport Advantages: It is a relatively economical mode of transport for bulky and heavy goods. The cost of maintaining and constructing routes is very low most of them are naturally made. It promotes international trade. Water Transport  Disadvantages: It is a slow moving mode of transport and therefore not suitable for transport of perishable goods. It is adversely affected by weather conditions.  Sea transport requires large investment on ships and their maintenance. Air Transport: Advantages: It is the fastest mode of transport.  It is very useful in transporting goods and passengers to the area, which are not accessible by any other means. It is the most convenient mode of transport during natural calamities. Air Transport: Disadvantages: It is relatively more expensive mode of transport.  It is not suitable for transporting heavy and bulky goods.  It is affected by adverse weather conditions. It is not suitable for short distance travel. Pipeline Pipeline transportation is developed along with the increase in oil and natural gas production. It is a transportation that uses gas to deliver gas, liquid and fluid. Advantages It can be transported continuously, is not affected by the weather, and has high reliability throughout the day. The pipeline can take shortcuts and the transportation distance is short. The transportation volume is large. High environmental benefits and no harmful substances. The energy consumption is small, which is the lowest among various modes of transportation. Disadvantages The specialty is strong, the transportation goods are too specialized, and the transportation items are limited to gases, liquids and fluids. Forever one-way transportation, poor maneuverability. Fixed investment is large.  Characteristics by Transportation Modes: Operating Remarks Characteristics Speed Air is the fastest Availability Road is the best since they can drive from origin to destination Dependability Pipeline ranks best-As the service is continuous and there is no stoppage due to traffic or congestion Capability Sea is the best-Can handle all types and size of cargo Frequency Pipeline is ranked best-As the movement is continuous Customer Service Customer not only want to know the location of their cargo but also the added assistance that a logistics company could serve. The role of customers service are to handle all the question by customers that related to cargo /goods they purchased. Thank you… any question??  TUTORIAL 1. Explain the 5 logistics activities that you learned today. 2. By using a table, discuss the benefits of this activity to the customer.