International Logistics Management

Sunday, 29 July 2012

[Notes]Chapter 4: Transportation Planning

1) Key issues and challenges that will affect freight planning and logistics in the future include the following:

The demands for freight transportation and logistics services and the ability of the physical and information infrastructure to meet these demands
The role of road pricing in urban freight transportation
The impact of information technology on goods movement
New development in logistics management

2) SUPPLY, DEMAND AND PRICING

In the new millennium, the freight transportation system will face challenges that will require the development of new paradigms of operations and planning. This situation will result from a combination of factors:

Domestic and international freight demand will continue to grow
New-freight transport systems must be responsive to user needs and expectations
Freight planners will have to deal with significant constants

Transportation allows for:

Geographic specialization- if it were not for transport, a community would need to produce everything locally. Specialization can continue as long as the production cost savings is greater than transport costs.
Increased land values- increased land values are a direct result of the fact that the land can be used for its most efficient purpose.
Large scale production- large scale production made possible because the product does not need to be produced close to the market.

Principles of Transportation:

Speed- ability to go from origin destination as fast as possible such as air transportation.
Consistency- ability for shipments to arrive at the same time, every time. Such example is the product delivered to the customer always at the right time.
Control- ability to make changes before and during transport. Telecommunications revolutionized transportation with the ability to communicate with the driver and possibly change the routing.

3) TRADE AND EQUIPMENT BALANCE

Equipment balance when there is the same amount of cargo or equipment going in both directions of a trade lane.

For example: trade between Europe and Asia is balanced when there is the same amount of cargo going from Europe to Asia as there is from Asia to Europe. If there is the same amount of cargo going in each direction, there is a balanced trade.

Four Factors in Transportation Decisions:

Shipper- the one making the transportation arrangements.
Cargo- determines the characteristics of cargo. Eg, cargo volume, origin, destination, timing of shipments.
Carrier- chooses carrier that offering the best services. Eg, private, contract, common carrier.
Consignee- often influences the method of delivery when the purchase was made.

Some similar factors used to determine cargo transport characteristics:

Size- the dimensions and volume
Weight- absolute weight of the cargo
Density- both the size and weight together
Stowability- many small pieces may be easier to handle but there is a lot more handling required.
Handling- containerized cargo is extremely easy to handle. Live animals are good example of cargo that very difficult to handle.
Liability- cost of damage or lost. Some cargo easily damaged. Fresh fruits are good example.
Dangerous goods- many commodities that we do not think as ‘dangerous’ can be so while under transport.
Special service requirements- some cargo have special needs or issues. Eg, live animals require feeding en route.

Special charges:

Transit services- allow the product to stop en route. Eg, half-full container stops enroute to pick up more cargo.
Diversion- when a shipment is redirected to a different destination while en route.
Re consignment- when a shipment is redirected to a different consignee.
Split delivery- when a shipment is split and part goes to one place and another part goes somewhere else.
Demur rage/detention- if the customer need to hold onto the container for a longer period of time, this is known as detention which is when the shipper holds the container or demur rage that when the carrier is holding the container.
Accessorial charges- include currency charges, fuel charges.

4) CONCLUSION

Freight movement uses local, regional, national and international systems. Cooperation between private and public sectors requiring changes in both will be needed to ensure a transportation system that meets the freight needs of businesses and consumers. Because customers will require one-stop shopping, freight movement increasingly will be intermodal and multimodal. This trend will accelerate cooperation and coordination between modes and transportation companies.

Tuesday, 24 July 2012

[Notes] Chapter 3: Global Supply Chain Management

Monday, 23 July 2012

[Notes] Chapter 2: Global Sourcing And Trade

1)Why Company Go Global Marketplace ?

International Customers. - Give the strong incentive to follow them into foreign market.

International Competition. - It give the advantage to the company market their product/ service in global market.

Regulation. - When environmental protection rules are strong in a country, there is an incentive to import the product from countries with laxer regulations.

New, Expanded markets. - this happen when the company may be looking for new markets and the domestic market is saturated, but that does not need to happen before a company looks to foreign market.

Economics Of Scale. - A company can gain greater economies of scale by producing more while supplying foreign markets.

2) Export

The least committing method, simply making an individual sale and export the product from the home country.

3) Joint Venture

The firm entering a foreign market may have a joint venture with a firm in the host country wholly owned subsidiary.

The foreign firm buys or builds a subsidiary in the foreign market.

Global companies organize themselves in one of two ways, national or stateless.

A national organization scheme is one in which the company treats each national subsidiary as relatively independent.

4) Sourcing

also known as purchasing or procurement, is the series of activities that results in decisions regarding from whom/ where goods, materials, and services should be obtained.

The sourcing office makes its decision based a wide variety of factors, such as the need for given products, the characteristics of the suppliers, and logistical feasibility.

5)Terms Of Sale And Incoterms.

Terms of Sale :

Selling terms in this case refers to the point at which ownership is passed from the seller to the buyer, and the arrangement for carriage and related activities.

The buyer and seller agree at the time of contact on the terms of sale (selling terms ).

a contract which mentions a sale price without selling terms is meaningless and not legally biding.

destination contract are when the contract calls for the cargo to be delivered to a given destination.

In a shipment contract, transfer of ownership occurs when the cargo is delivered to the first carrier.

Incoterms

INCOTERMS are a set of three-letter standard trade terms most commonly used in international contracts for the sale of goods. It is essential that you are aware of your terms of trade prior to shipment.

INCOTERMS 2012

EXW – EX WORKS (… named place of delivery) - The Seller’s only responsibility is to make the goods available at the Seller’s premises. The Buyer bears full costs and risks of moving the goods from there to destination.
FCA – FREE CARRIER (… named place of delivery) - The Seller delivers the goods, cleared for export, to the carrier selected by the Buyer. The Seller loads the goods if the carrier pickup is at the Seller’s premises. From that point, the Buyer bears the costs and risks of moving the goods to destination.
CPT – CARRIAGE PAID TO (… named place of destination) - The Seller pays for moving the goods to destination. From the time the goods are transferred to the first carrier, the Buyer bears the risks of loss or damage
CIP – CARRIAGE AND INSURANCE PAID TO (… named place of destination) - The Seller pays for moving the goods to destination. From the time the goods are transferred to the first carrier, the Buyer bears the risks of loss or damage. The Seller, however, purchases the cargo insurance.
DAT – DELIVERED AT TERMINAL (… named terminal at port or place of destination) - The Seller delivers when the goods, once unloaded from the arriving means of transport, are placed at the Buyer’s disposal at a named terminal at the named port or place of destination. “Terminal” includes any place, whether covered or not, such as a quay, warehouse, container yard or road, rail or air cargo terminal. The Seller bears all risks involved in bringing the goods to and unloading them at the terminal at the named port or place of destination.
DAP – DELIVERED AT PLACE (… named place of destination) - The Seller delivers when the goods are placed at the Buyer’s disposal on the arriving means of transport ready for unloading at the names place of destination. The Seller bears all risks involved in bringing the goods to the named place
DDP – DELIVERED DUTY PAID (… named place) - The Seller delivers the goods -cleared for import – to the Buyer at destination. The Seller bears all costs and risks of moving the goods to destination, including the payment of Customs duties and taxes.

2. MARITIME-ONLY TERMS

FAS – FREE ALONGSIDE SHIP (… named port of shipment) - The Seller delivers the goods to the origin port. From that point, the Buyer bears all costs and risks of loss or damage.
FOB – FREE ON BOARD (… named port of shipment) - The Seller delivers the goods on board the ship and clears the goods for export. From that point, the Buyer bears all costs and risks of loss or damage.
CFR – COST AND FREIGHT (… named port of destination) - The Seller clears the goods for export and pays the costs of moving the goods to destination. The Buyer bears all risks of loss or damage.
CIF – COST INSURANCE AND FREIGHT (… named port of destination) - The Seller clears the goods for export and pays the costs of moving the goods to the port of destination. The Buyer bears all risks of loss or damage. The Seller, however, purchases the cargo insurance.

6) International Trade Pattern

Trade Trends

Rich countries with rich countries
colonial networks
neighboring countries
common cultures.

Monday, 16 July 2012

[Notes] Chapter 1: Introduction to International Logistics

1. Logistics?

· Defined by Council Logistics Management (CLM)
· Part of Supply Chain that plan, implement and control the efficient & effective flow and storage of goods, services and other related information
· From the point of origin to the point of consumption to meet the customer requirement

**p/s: please note that the definition DOES NOT include the movement of people

2. Supply Chain?

· Movement of goods not that just from one place to another, but also from the ultimate origin to the ultimate destination.

**p/s: The Raw Material is the ULTIMATE ORIGIN, while the Consumer is the

ULTIMATE DESTINATION

3. Goal of Logistics

· To achive the logistics goal, there are 5 activities involved:

i) Network design

ii) Information

iii) Transportation

iv) Inventory

v) Warehouse, material handling and packaging

· Goal of Logistics?

i) Rapid Responds

- Refer that the company able to responds to any changes or new development made by customer to meet customer requirement.

ii) Minimum Variance

- The output, such as delivery times should be consistent

- Eg: Shorter lead times

iii) Minimum Inventory

- Make sure that the inventory kept is low since the cost to make inventory is expensive

iv) Movement Consolidation

V) Life Cycle Support

- Refer to the need NOT just to deliver the product, but also returned it as well.

- Reason of returning may because of defective product or the recycling of the packaging and product.

Vi) Quality

- Both product and services need the high quality

4. Regional Logistics Assessment

· It is referring to the logistics asset that a country have.

i) Geography

- Refer to the natural geographic feature such as bay, natural port

ii) Physical Infrastructure

- Refer to the infrastructure such as road, airport

iii) Legal/Business infrastructure

- Modern business require a legal system with rules of trade and commerce, customs officials, and legal enforcement of business contract

5. Roles of Transportation

- Shipper : Owner of the goods

: Also known as “Consignor” and “Seller”

- Carrier : The party that moves the goods

- Consignee : The party who receive the goods

Sunday, 15 July 2012

[INFO] Kementerian Malaysia

Assalamualaikum ...
Before korang baca smpai abes, jawab salam dlu... wajib jwab salam..
Lecturer Wannabe nak tanya lahh kann... korang tau x nama menteri2 Malaysia ni dan apa jawatan yang dorang pegang? Rasanya, x ramai kann yang tau. Nama PM and TPM kite tau tak? Bohong bebenor kalau korang xtau ...
So, di hari Ahad yang indah (?) ni, kiteorang nk share dengan korang psal menteri2 Malaysia. X payah susah2 nk hafal. Just ingat ponn cukuplah, yee adik2. Okeh,, lets start with our Prime Minister.

YAB DATO' SRI MOHD. NAJIB BIN TUN HAJI ABDUL RAZAK

Perdana Menteri ke-6 Malaysia.

Menteri Kewangan

Menteri Pembangunan Wanita, Keluarga dan Masyarakat

YAB TAN SRI DATO' HAJI MUHYIDDIN BIN MOHD. YASSIN

Timbalan Perdana Menteri Malaysia

Menteri Pelajaran

YB SENATOR DATUK SERI PALANIVEL A/L K.GOVINDASAMY