IB-int Log1
IB-int Log1
Group No.-7 Vivek Antil (03) Mandar Joshi (15) Kaustubh Nimdeo (32) Abhinav Pathak (37) Ramakrishna Anand (41) Amit Vatnani (56)
An Introduction
What is an Inland Container depot? What is Container freight station? Distinction between ICD & CFS?
Warehouse
Gate Complex
Step I
Step III
Procurement is acquisition of goods and/or services at the best possible total cost of ownership, in the right quantity and quality, at the right time, in the right place and from the right source
Importance
Acquired goods and services must be available to the firm for usage at the desired time for efficient utilization Procurement cost often ranges from 60% to 80% of the firms revenue
Objectives
I. II. III. IV. V. To support Operational requirement To manage purchasing process efficiently To select, develop and maintain sources of supply To develop strong relationship with other functional groups To support organizations goals and objectives 10
Procurement Process
Planning Specification Evaluation Relationship management Transportation and holding costs Implementation Monitoring and improving
11
Procurement Process
Planning
Honest assessment of international sourcing opportunities Management of more variable lead times Standardized process
Specification
Knowledge about markets, products, and procedures Terms of sale
Evaluation
Advantage over domestic sourcing Additional Transportation cost Currency shifts ISO certification
Relationship Management
Expectations need to be exchanged Win-win strategy
12
Procurement Process
Transportation and Inventory Holding Costs
Service and cost fluctuations Higher transportation costs Greater inventory holding costs Customs and other inspections Payment of import duty if applicable
Implementation
Higher chance of failure due to complexity High flexibility required
Additional Considerations
Child Labor Reduced Tariffs Foreign Trade Zones
Convenient transshipping points Pool of lower cost labor
Countertrade
Barter Buyback Switch trading Counter purchasing
14
Documents
Sales Contract Letter of Credit
Bank undertaking of payment reducing the payment risks
15
International Packaging
16
17
International Standards
PURPOSE: Harmonize requirements between signatory countries. International Standards help to ensure that import requirements have a scientific basis and are not used as unjustified trade barriers. International Standards provide guidance to countries developing import requirements. Less likely to be challenged under WTO if standards are followed.
18
Fiber Board or Corrugated Board Boxes : Useful for shipment of nonfragile goods. .These boxes have light weight, saves in shipping cost with a good deal of strength, fair resistance to moisture, compression
Steel Drums:- Used for sending liquids in bulk. A drum should normally not exceed more than 250 kg. Second hand drums should be used only if the buyer has agreed to use.
19
Labeling
Labeling informs the parties involved in the movement of exactly the nature and quantity of package contents. Labeling regulations generally attempt to (1) Force shippers to adhere to the specified product standards, (2) Restrict and control the use of additives, (3) Prohibit the use of misleading information, (4) Establish the standard description of products.
20
In Oman, use of adhesive label on product is prohibited. Label should also be printed in both Arabic and English. In Germany, the label on the textile item must indicate the origin of the fabric used In Canada, each package must carry label, printed in English and French.
Factor to be taken care * Include only relevant information * Use the language of importer's country, if possible * Check spelling of information, given on label. An error can lead the conclusion that the exporter is careless.
21
In Oman, use of adhesive label on product is prohibited. Label should also be printed in both Arabic and English. In Germany, the label on the textile item must indicate the origin of the fabric used In Canada, each package must carry label, printed in English and French.
Factor to be taken care * Include only relevant information * Use the language of importer's country, if possible * Check spelling of information, given on label. An error can lead the conclusion that the exporter is careless.
22
In Oman, use of adhesive label on product is prohibited. Label should also be printed in both Arabic and English. In Germany, the label on the textile item must indicate the origin of the fabric used In Canada, each package must carry label, printed in English and French.
Factor to be taken care * Include only relevant information * Use the language of importer's country, if possible * Check spelling of information, given on label. An error can lead the conclusion that the exporter is careless.
23
Warehousing Management
24
Warehouse Definition
Its a part of a firms logistics system that stores products at and between point-of-origin and point of consumption, and provides information to management of the status, condition, and disposition of items being stored. Warehouse- More than a storage facility
25
Warehousing Activities
26
Objectives of WMS
To provide a set of computerized procedures to handle the receipt of stock and returns into a warehouse facility
Model and manage the logical representation of the physical storage facilities (e.g. racking etc)
Manage the stock within the facility and enable a seamless link to order processing and logistics management in order to pick, pack and ship product out of the facility
27
Types of Warehouses
Private Warehouse owned and operated by channel suppliers and reseller ; used in their own distribution activity Public Warehouse space that can be leased to solve short-term distribution needs Automated Warehouse extensive use of computer and robotics technology
Climate-Controlled Warehouse For products that need special handling conditions Distribution Centre serve as points in the distribution system at which products are received from many suppliers and quickly shipped out to many customers Cross Docking , Milk Runs, Hub and spoke model
28
29
30
31
IARW's goals and activities : Collecting information and encouraging the exchange of ideas Aggressively promotes more efficient distribution of services. Aids members in adopting new technology Advises members of legislation and regulations affecting the food industry, assists members in complying with U.S. and international regulations Participates in alliances with industry and international organizations having a common interest in the safe and efficient flow of food products around the world. All active members of IARW are also members and beneficiaries of the work of The World Food Logistics Organization(WFLO
32
Purpose providing logistics support to the agricultural sector. It is one of the biggest public warehouse operators in the country offering logistics services to a diverse group of clients CWC is operating 469 Warehouses across the country CWS has a storage capacity of 9.98 million tonnes
33
34
International Insurance
One of the most complex issues in International Logistics The complexity of the field is substantial . Many of the risks are misunderstood The terminology is misleading The carrier offers limited coverage
35
Documentation Required:
A bill of lading is a contract between the exporter and the carrier indicating that the carrier has accepted responsibility for the goods and will provide transportation in return for payment. A commercial invoice is a bill for the goods stating basic information about the transaction, including a description of the merchandise, total cost of the goods sold, addresses of the shipper and seller, and delivery and payment terms. A freight forwarder specializes in handling export documentation.
36
Terminology:
Average: Loss incurred on an ocean voyage by a cargo owner . General Average Particular Average Barratry
37
Causes of Losses:
Overboard Losses Jettison Fire Sinking Theft
38
39
40
41