•

Logistics What Are Logistics?

Logistics refer to the overall process of managing how resources are acquired,
stored, and transported to their final destination. Logistics management involves
identifying prospective distributors and suppliers and determining their
effectiveness and accessibility . Logistics managers are referred to as
logisticians.

"Logistics" was initially a military-based term used in reference to how military

personnel obtained, stored and moved equipment and supplies. The term is now
used widely in the business sector , particularly by companies in the
manufacturing sectors ,to refer to how resources are handled and moved along
the supply chain.

KEY TAKEAWAYS

• Logistics is the overall process of managing how resources are

acquired, stored, and transported to their final destination.
• Poor logistics in a business can impact its bottom line.
• Logistics is now used widely in the business sector, particularly by
companies in the manufacturing sectors, to refer to how resources
are handled and moved along the supply chain.
Understanding Logistics in Management and Business
In simple terms , the goal of logistics management is to have thE'; right
amount of a resource or input at the right time, getting it to the appropriate
location in proper condition and delivering it to the correct internal or external
customer.

For example, in the natural gas industry, logistics involves managing the
pipelines, trucks, storage facilities and distribution centers that handle oil as it is
transformed along the supply chain. An efficient supply chain and effective
logistical procedures are essential to reduce costs and to maintain and increase
efficiency. Poor logistics leads to untimely deliveries, failure to meet the needs of
clientele, and ultimately causes the business to suffer.
The concept of business logistics has been transformed since the 1960s. The
increasing intricacy of supplying companies with the materials and resources
they need and the global expansion of supply chains has led to a need for
specialists known as supply chain logisticians.
In the modern era, the technology boom and the complexity of logistics processes have spawned
logistics management sottware and specialized logistics-focused firms that expedite the

' t ;'
 .... ,.

movement of resources along the supply chain.

Manufacturing companies may choose to outsource the
management of their logistics to specialists or manage
logistics internally if it is cost effective to do so.

Special Considerations
The tasks for which a logistician is responsible vary
depending on the business. Primary responsibilities
include overseeing and managing inventory by arranQ:inQ
for appropriate transportation and adequate storage for the
inventory.
A qualified logistician plans out these and other aspects
of the logistics process, coordinating the steps as
inventory and resources move along the supply chain.

Understanding End-to-End in Business

End-to-end refers to a process that takes a method
or service from its beginning to its end, delivering a
complete functional solution.
more
When Contract Logistics Matters Most
Contract logistics is the outsourcing of resource
management tasks to a third-party company.
Often, it is both cheaper and more reliable to
hand resource management to a specialized
company.
more
Understanding Right-Shoring
Right-shoring is the placement of a business'
components and processes in locations that provide
the best combination of cost and efficiency.
•
•t ,.
'
 hain? 2. What are logistics and supply chain management ? 3.
How should you view SCM? 4. What are the challenges 5. Why
should you care?
2
F - Supply Chain and Logistics Fundamentals Lesson:
i Introduction to Supply Chains
v
e What is a Supply Chain?

Q 3
u -Supply Chain and Logistics Fundamentals Lesson:
e
s Introduction to Supply Chains
ti What is a Supply Chain?
o
n Two or more parties linked by a flow of resources- typically
s material, information, and money- that ultimately fulfill a
1. customer request.
W Information (order)
h
Money (payment)
a
t Information (status) 4
Material (delivery)
i
s

s
u
p
p
l
y

c
 •

r
-Supply Chain and Logistics Fundamentals
Lesson: Introduction to Supply Chains
What is a supply chain?
5
-Supply Chain and Logistics Fundamentals Lesson:
Introduction to Supply Chains

nllJ Logistics management is that part of supply chain

management that plans, implements, and controls the efficient,
effective forward and reverse flow and storage of goods,
services and related information between the point of origin
and the point of consumption in order to meet customers'
requirements.
nrn Supply chain management encompasses the planning and
management of all activities involved in sourcing and
procurement, conversion, and all logistics management
activities. Importantly, it also includes coordination and
collaboration with channel partners, which can be suppliers,
intermediaries, third party service providers, and customers. In
essence, supply chain management integrates supply and
demand management within and across companies.
..
•
..
CTL.SClx- Supply Chain and Logistics Fundamentals Lesson:
Introduction to Supply Chains

Process View of Supply Chains

• Four Primary Cycles nlll Customer Order Cycle nllJ

Replenishment cycle nlil Manufacturing Cycle nlll Procurement
Cycle • Cycles Occur Between Stages nlil Interactions differ at
each stage • Not every SC(supply chain) will have all 4 Cycles

Procurement Cycle

Manufacturing Cycle

Replenishment Cycle

Customer Order Cycle

Customer

Retailer

Distributor

Manufacturer
 ,

..

Unapproved aircraft part

From Wikipedia , the free
encyclopedia Jump to navi gation
Jump to search
Unapproved aircraft parts are aircraft parts not
approved by civil avi ati on author i ties for installation on
type certified aircraft.
For example, the Federal Aviation Adm inistration
(FAA) defines a "standard part" as a part produced in
accordance with government regulations, and it defines
an "approved part" as a "standard part" that is in
accordance with a specific set of criteria and
specifications.ill The FAA standards for approved parts
are in FAR 21.305. In the
United States parts may be approved through a Parts
Manufacturer Approval (PMA), with type certification
procedures through approval from the agency's
approval, through Technical Standard Orders (TSOs),
and from conforming to recognized specifications from
the aviation industry.gJ
Parts manufactured without an aviation authority's
approval would be "unapproved." Unapproved parts
include those that are counterfeit , have been used
beyond their time limits, were previously approved but
were not properly returned to service, are stolen, come
with fraudulent labels, production overruns that were not
sold with the agency's permission, and those that are
untraceable.Ql
.
•
..

Types and origins of unapproved parts[edit]

The term "counterfeit parts" refers to parts made of materials
inferior to the materials used in genuine parts.ill "Life-limited"
and "time-expired" parts are those used beyond their lifespan.
Some life-limited parts were taken from scrap yards and
illegally installed on aircraft.illThe term "bogus parts" can
loosely refer to various categories of unapproved parts. ill
Boeing has stated that mechanical parts, electronic parts and
materials have been counterfeited. Physical parts include bolts,
nuts, and rivets. Electronic parts include resistors, capacitors,
and integrated circuits. Materials include composite chemicals,
steel, and titanium. Hl
Some unapproved parts are production overruns from genuine
manufacturers. Some of these parts may be airworthy, but many
others are not, such as copies removed from the product line that
are not airworthy and therefore not intended to be installed on
any aircraft.ill
A part which was legally salvaged would not be approved if the
supporting information does not state the required information. ill
As of 1996, unapproved parts may originate from sources such
as counterfeiters, theft organizations, "strip and dip" operations,
and from production overrun piles. The "strip and dip" groups
hide defects with metal plating. ill

History[edit]
The crash of Partnair Flight 394 in 1989 resulted from the
installation of counterfeit aircraft parts. ill Counterfeit bolts,
.
•

attaching the vertical stabilizer of a Convair CV-580 to the

fuselage, wore down excessively, allowing the tail to vibrate to
the extent that it eventually broke off.

British Airways Flight 5390

From Wikipedia, the free
encyclopedia Jump to navigationJump
to search
British Airways Flight 5390

G-BJRT, the aircraft involved, seen in

July 1989

Incident

Date 10 June 1990

Explosive
Summary decompression due
to faulty maintenance
Didcot,
Oxfordshire,
Site
England
.51°36'21 "N
1°l4'27"W51.60583°N
 ,
.
•

1.24083°WCoordinates:
...51°36'2l"N
1°l4'27"W51.60583
°N
1.24083°W
Aircraft
BAC One-Eleven
Aircraft type 528FL
County of South
Aircraft name Glamorgan
Operator British Airways
ICAO flight No. BAW5390
Call sign SPEEDBIRD 5390
Registration G-BJRT
Flight origin Binninghan1 Airport
Destination Malaea Ah:Qort
Occupants 87
Passengers 81
Crew 6
Fatalities 0
Injuries 2 (1 minor, 1 serious)
Survivors 87 (all)

British Airways Flight 5390 was a flight from Binningharn

Ah]Jort in England for Malaga Airpo11 in Spain that suffered
explosive decompression, with no loss of life, shortly after
takeoff on 10 June 1990.An improperly installed windscreen
.
•

panel separated from its frame, causing the plane's captain to be

blown partially out of the aircraft. With the captain pinned
against the window frame for twenty minutes, the first officer
managed to land at Southa1npton Airport.
r

Contents

Incident

The County of South Glanzorgan was a BAC One-Eleven Series

528FL jet airliner, registered as G-BJRT.ill The captain was
42- year-old Tim Lancaster, who had logged 11,050 flight
hours, including I ,075 hours on the BAC One-eleven; the
copilot was 39-year-old Alastair Atchison, with 7,500 flight
hours, with
I,I 00 of them on the BAC One-eleven. ill The aircraft also
carried four cabin crew and 8I passengers.
Atchison handled a routine take-off at 08:20 local tin1e (07:20
UTC) then handed control to Lancaster as the plane continued to
climb. Both pilots released their shoulder harnesses and
Lancaster loosened his lap belt. At 08:33 (07:33 UTC) the plane
had climbed through about 17,300 feet (5,300 m)ill:3 over
Didcot, Oxfordshire, and the cabin crew were preparing for meal
service. Flight attendant Nigel Ogden was entering the cockpit
when there was a loud bangW and the cabin quickly filled with
condensation. The left windscreen panel, on Lancaster's side of
the flight deck, had separated from the forward fuselage;
Lancaster was propelled out of his seat by the rushing air from
the decompression and forced head first out of the flight deck.
 •
..

Hazardous chemicals
Work health and safety duties
Managing the risks associated with hazardous
chemicals Duties of suppliers

Duties of manufacturers or importers

Requirements for transporting hazardous chemicals
Restricted hazardous chemicals
Further advice
Contact options
Proposal to adopt GHS 7
In July 2019, Safe Work Australia conducted a consultation to
seek feedback on the proposal to adopt an updated edition of
the Globally Harmonized System of Classification and Labelling
of Chemicals (GHS) for workplace hazardous chemicals under
the model WHS laws.
The consultation period is now closed. Safe Work
Australia would like to thank everyone who provided
feedback.
The feedback received will help ensure any changes
to Australia's classification and hazard communication
requirements for workplace hazardous chemicals are
implemented in the most effective way.
The consultation summary includes feedback received through
the targeted face-to-face consultation sessions and the online
public consultation period.

To stay informed about the proposal to adopt GHS 7,

subscribe to the hazardous chemicals mailing list.

Hazardous chemicals

Hazardous chemicals are substances, mixtures and articles

that can pose a significant risk to health and safety if not
managed correctly. They may have health hazards, physical
hazards or both.

Examples of chemicals that can cause adverse health

effects include:

toxic chemicals

chemicals that cause skin damage

carcinogens.

Examples of chemicals that can immediately injure people or

damage property include:

flammable liquids

compressed gasses

explosives.

Exemptions
 •

. '

Infectious substances, radioactive sources and chemicals that

are only hazardous to the environment are not considered
hazardous chemicals under the model WHS Regulations.
The following hazard classes are also exempt under the
Regulations:
acute toxicity category 5
skin irritation category 3
eye irritation category 2B
aspiration hazard category 2
flammable gas category 2
acute hazard to the aquatic environment category 1, 2 or 3
chronic hazard to the aquatic environment category 1, 2, 3 or
4 hazardous to the ozone layer.
Work health and safety duties
If you are a business, you have specific duties under the model
WHS Regulations to manage the risks to health and safety
associated with using, handling, generating and storing
hazardous chemicals at a workplace. These include:
Ensuring correct labelling of containers and pipework, using
warning placards and displaying safety signs.
Maintaining a register and manifest (where required) of
hazardous chem.icals and notifying the regulator if you
store manifest quantities of hazardous chemicals.
 •

..

Identifying any risk of physical or chemical reaction of

hazardous chemicals and ensuring their stability.
Ensuring workplace exposure standards for hazardous
chemicals are not exceeded.
Providing health monitoring to workers (if relevant).
Providing information, training, instruction and supervision
to workers.
Providing a spill containment system for hazardous chemicals if
necessary.
Obtaining the current SDS(safty data sheet) from
the manufacturer, importer or supplier of the
chemical.
Controlling ignition sources and accumulation of flammable and
combustible substances.
Providing fire protection equipment, firefighting equipment
and emergency and safety equipment.
Providing a copy of your emergency plan to the primary local
emergency services organisation if the quantity of a class of
hazardous chemical at your workplace exceeds its manifest
quantity.
Ensuring the stability and support of containers for bulk
hazardous chemicals, including pipework and attachments.
Ensuring hazardous chemical storage and handling systems are
decommissioned correctly.
Notifying the regulator as soon as practicable of abandoned
tanks in certain circumstances.
Managing the risks associated with hazardous chemicals
Businesses must also manage risks associated with
using, handling, generating or storing hazardous
chemicals at a workplace, including:
Identify reasonably foreseeable hazards that could give rise to
the risk.
Eliminate the risk so far as is reasonably practicable.
If it is not reasonably practicable to eliminate the risk,
minimise it so far as is reasonably practicable by
implementing control measures in accordance with the
hierarchy of risk control.
Maintain the implemented control measure so it
remains effective.
Review and if necessary revise all risk control measures at
least every five years maintain, so far as is reasonably
practicable, a work environment that is without risks to health
and safety.
When managing the risks businesses must
consider: The hazardous properties of the chemical.

Any potentially hazardous reaction (chemical or physical)

between the hazardous chemical and another substance or
mixture, including a substance that may be generated by the
reaction.
•

The nature of the work to be carried out with the

hazardous chemical.
Any structure, plant or system of work that is needed in the
use, handling, generation or storage of the hazardous chemical
or could interact with the hazardous chemical at the workplace.
Failure to manage the risks associated with
hazardous chemicals is a breach of model WHS laws.
Duties of suppliers
A supplier is anyone who supplies a hazardous chemical that
may be used at a workplace. This includes intermediaries in the
supply chain such as distributors, on-sellers and wholesalers.
Suppliers of hazardous chemicals must:
Make sure, so far as is reasonably practicable, that
chemicals they supply are without risks to health and safety.
Provide SDS with hazardous chemicals .In addition they
must not supply hazardous chemicals to workplaces if they
know, or ought reasonably to know that the chemicals are
not correctly labelled.
To legally supply a hazardous chemical the worker must be over
16-years-old.
Duties of manufacturers or importers
Manufacturers or importers include anyone who
manufactures or imports chemicals that are classified as
hazardous under the model WHS Regulations.
..

Under the Regulations, a business that packages or re-labels a

hazardous chemical with its own product name is a
manufacturer and has the same duties as other manufacturers.
Manufacturers or importers of hazardous chemicals must:
Make sure, so far as is reasonably practicable, that
chemicals they manufacture or import are without risks to
health and safety.
Correctly classify the chemicals that they import and/or
manufacture, and prepare correct labels and SDS for those
chemicals.
The Hazardous Chemical Information System is a web-
based information system that helps you to find GHS
classification information on chemicals.
Requirements for transporting hazardous chemicals
The model WHS Regulations do not apply to transporting
hazardous chemicals. Instead there are laws in each state
or territory that set out the requirements for transporting
dangerous goods.
If you have questions about transporting hazardous
chemicals or dangerous goods you should contact your
local transport regulator:
Competent authorities for the transport of dangerous goods by
road and rail
Civil Aviation Safety Authority
'

This is an abridged docun1ent taken frorn the following

Training: ; ubisL:l-... & .JLOre in vecticHt P1 ucedures L6'\Sr - 3
Davs
For additional details please see \".'VVV/.sassofia.con1 or ernail
011tCelltJ assuila. ..-u 111
'

\fi HAT ARE HAZARDOUS MATERIALS?

A hazardous material is any item or agent (biological,

che1nical, radiological, and/or physical), which has the
potential to cause hann to humans, animals, or the
environment, either by itself or through interaction with
other factors. Hazardous materials professionals are
responsible for and properly qualified to manage such
1naterials. This includes managing and/or advising other
managers on hazardous materials at any point in their life
cycle, from process planning and development of new
products; through rnanufacture, distribution and use; and to
disposal, cleanup and rernediation.
Hazardous rnaterials are defined and regulated in the United
States primarily by laws and regulations ad1ninistered by the
U.S. Environmental Protection Agency (EPA), the U.S.
Occupational Safety and Health Administration (OSHA), the
U.S. Department of Transportation (DOT), and the U.S.
Nuclear Regulatory Commission (NRC). Each has its own
definition of a "hazardous material."
OSHA's definition includes any substance or chemical which
is a "health hazard" or "physical hazard," including:
che1nicals which are carcinogens, toxic agents, irritants,
corrosives, sensitizers; agents which act on the
hematopoietic system; agents which datnage the lungs, skin,
eyes, or mucous membranes; chetnicals which are
cotnbustible, explosive, flammable, oxidizers, pyrophorics,
unstable-reactive or water-reactive; and chemicals which in
the course of normal handling, use, or storage tnay produce
or release dusts, gases, fumes, vapors, Inists or stnoke which
may have any of the previously mentioned characteristics.
(Full definitions can be found at 29 Code of Federal
Regulations (CFR) 1910.1200.)
EPA incorporates the OSHA definition, and adds any itetn or
chemical which can cause harm to people, plants, or animals
when released by spilling, leaking, pumping, pouring,
emitting, etnptying, discharging, injecting, escaping, leaching,
dumping or disposing into the environtnent. (40 CFR 355
contains a list of over 350 hazardous and extremely
hazardous substances.)
DOT defines a hazardous tnaterial as any itetn or chemical
which, when being transported or tnoved in cotnmerce, is a
risk to public safety or the environment, and is regulated as
such under its Pipeline and Hazardous Materials Safety
Administration regulations (49 CFR 100-199), which
includes the Hazardous Materials Regulations (49 CFR 171-
180). In addition, hazardous materials in transport are
regulated by the International Maritime Dangerous Goods
Code; Dangerous Goods Regulations of the International Air
Transport Association; Technical Instructions of the
International Civil Aviation Organization; and U.S. Air Force
Joint Manual, Preparing Hazardous Materials for Military Air
Shipments.
The NRC regulates materials that are considered hazardous
because they produce ionizing radiation, which means
those materials that produce alpha particles, beta particles,
gamma rays, x-rays, neu trons, high-speed electrons, high-
speed
protons, and other particles capable of producing ions. This
includes "special nuclear material," by-product Inaterial,
and radioactive substance s. (See 10 CFR 20).

What are chemical hazards and toxic substances?

Chemical hazards and toxic substances pose a wide range of
health hazards (such as irritation, sensitization, and
carcinogenicity) and physical hazards (such as flammability,
corrosion, and explosibility).
This page provides basic information about chemical
hazards and toxic substances in the workplace. While not
all hazards associated with every chemical and toxic
substance are addressed here, we do provide relevant links
to other pages with additional information about hazards
and methods to control exposure in the workplace.
How does OSHA regulate worker exposure to chemicals?

In order to ensure chemical safety in the workplace,

information about the identities and hazards of the
chemicals must be available and understandable to
workers. OSHA's Hazard Communication Standard (HCS)
requires the development and dissemination of such
information:
. Chemical manufacturers and importers are required to
evaluate the hazards of the chemicals they produce or
import, and prepare labels and safety data sheets to
convey the hazard information to their downstream
customers;
. All employers with hazardous chemicals in their
workplaces must have labels and safety data sheets for
their exposed workers, and train them to handle the
chemicals appropriately. The training for employees must
also include information on the hazards of the chemicals
in their work area and the measures to be used to protect
themselves.

Allowable airborne concentrations

Employers are required to identify and evaluate the
respiratory hazard(s) in their workplaces. Various types of
Occupational Exposure Limits (OELs) have been
established by a number of organizations, and are listed on
many of OSHA's Safety and Health webpages on chemical
hazards and toxic substances. Here is an explanation of
some of the different levels.

OSHA sets enforceable permissible exposure limits

(PELs) to protect workers against the health effects of
exposure to hazardous substances, including limits on the
airborne concentrations of hazardous chemicals in the air.
Most OSHA PELs are 8-hour time-weighted averages
(TWA), although there are also Ceiling and Peak limits,
and many
 chemicals include a skin designation to warn against skin
contact. Approximately 500 PELs have been established.
acceptable levels of chemicals in the workplace. Of all the
states that have OSHA-approved State Plans, California
has the most extensive list of PELs.

What other common terms are used when discussing

chemical hazards or toxic substances?
Action level
An airborne level, typically one-half of the PEL
designated in OSHA's substance-specific standards, 29
CFR 1910, Subpart Z, calculated as an eight (8)-hour
time-weighted average, which initiates certain required
activities such as exposure monitoring and medical
surveillance.
Ceiling Limit
The exposure limit a worker's exposure may never
exceed.
Sampling and Analytical Error
A statistical estimate of the uncertainty associated with
a given exposure measurement.
Short-Term Exposure Limit (STEL)
The average exposure to a contaminant to
which a worker may be exposed during a short
time period (typically 15- 30 minutes).
Time-Weighted Average (TWA)
The average exposure to a contaminant over a given
period of time, typically 8-hours. For examples of how a
TWA is calculated, see the OSHA Technical Manual.
 How do I control chemical hazards and toxic
substances?
It is OSHA's long standing policy that engineering and
work practice controls must be the primary means to
reduce employee exposure to toxic chemicals, where
feasible. Use our Chemical Hazard Signs to alert

In some cases, it's better not to take a chance. When

working with toxic chemicals, there is no risk worth taking.
Post Poison Signs to let employees know which areas to
avoid. Chemical Signs also ensure that visitors and guests
know how to recognize dangerous areas, too.

UNDERSTANDING HAZARDOUS MATERIALS AND

HAZARD CLASSIFICATION

HAZMAT DEFINITION

f1l SUBSTANCE OR MATERIAL

i1J TRANSPORTED IN COMMERCE

DETERf\11NED TO POSE UNREASONABLE RISK TO

r2J
HEALTH, SAFETY AND PROPERTY

1A

HAZI\1 AT DE F1 NJTlON

Ill HAZARDOUS SU·BSTANCES

lZI HAZARDOUS WASTES

. -

f1J MARINE POLLUTANTS

1B

HAZl\1AT DEFINITION

!Zl ELEVATED TEMPERATURE l\1ATERIALS

[I) MATERIALS DESIGNATED HAZARDOUS IN 172.101

ill MATERIALS MEETING DEFINING CRITERIA IN PART

173

1C
HAZARDOUS SUBSTANCES
0 INCLUDES l\1IXTURES AND SOLUTIONS

2l LISTED IN APPENDIX A OF HT\1T

rzJ EQUALS OR EXCEEDS THE RQ IN APPENDIX A

2A

HAZARDOUS SUBSTANCES

0 CONCENTRATION BY \NEIGHT EQUALS OR EXCEEDS

CONCENTRATION CORRESPONDING TO ITS RQ

f1JRADIONUCLIDES CONFORM TO PARAGRAPH 7 OF

APPENDIX A
2B

HAZARDOUS WASTE

0 SUBJECT TO THE HAZARDOUS WASTE l\1ANIFEST

REQUIREMENTS OF EPA

lZl 40 CFR PART 262

MARINE POLLUTANTS

!ZJ LISTED IN APPENDIX B OF HMT

IZl SOLUTION OR MIXTURE EQUALS OR EXCEEDS

10
PERCENT BY WEIGHT

!ZJSEVERE l\1ARINE POLLUTANT SOLUTION

OR MIXTURE EQUALS OR EXCEEDS 1PERCENT
BY WEIGHT

ELEVATED TEMPERATURE MATERIAL

LIQUID PHASE AT OR ABOVE 100 DEGREES C (212

IZJ
DEGREES F)

ill LIQUID PHASE WITH FLASH POINT AT OR ABOVE

37.8 DEGREES C (100 DEGREES F)

SA
ELEVATED TEMPERATURE l\1ATERIAL

!Zl SOLID PHASE AT OR ABOVE 240 DEGREES C (464

DEGREES F)

HAZARD CLASSES

0 CLASS 1 - EXPLOSIVES

!Z! CLASS 2 - GASES

r7J CLASS 3 -FLAMMABLE OR COMBUSTIBLE LIQUID

6A

HAZARD CLASSES

I?J CLASS 4 - FLAI\1 MABLE SOLID

!ZJ CLASS 5- OXIDIZER OR ORGANIC PEROXIDE

0 CLASS 6- POISON

68

HAZARD CLASSES

[Z] CLASS 7- RADIOACTIVE

[Z] CLASS 8- CORROSIVE

I2J CLASS 9 - l\1ISCELLANEO US

6C
 •
. .

CLASS 1 EXPLOSIVES

[ 1.1 1\1ASS EX P L0S I0 N HAZARD

IZl 1.2 PROJECTION HAZARD

[?] 1.3 FIRE HAZARD

7A

CLASS 1 EXPLOSIVES

tL 1.4 0 SIGNIFICANT BLAST HAZARD

!Zl 1.5 BLASTT NGAG ENTS

!1J 1.6 DETONATING SUBSTANCES

78
CLASS 2 GASES

2.1 FLAMJ\1ABLE GAS

!Zl 2.2 N0 N- F LA I\1M A B L E GAS

2.3 POISON GAS

PRECEDENCE LIST

:zJ 1. CLASS 7
..

!B 2. DIVISION 2.3

!Zl 3. DIVISION 2.1

fZl 4. DIVISION 2.2

9A

PRECEDENCE LIST

5. DIVISION 6.1, PG I, PIH ONLY

lZi 6. DIVISION 4.2 (PYROPHORIC)

lZ1 7. DIVISION 4.1 (SELF-REACTIVE)

9B

PRECEDENCE LIST

IZi8. CLASS 3, CLASS 8, DIVISION 4.1, DIVISION 4.2,

DIVISION 4.3, DIVISION 5.1, DIVISION
6.1

0 9. COJ\1BUSTIBLE
LIQUIDS

IZl 10. CLASS 9

Hazardous Substances vs Dangerous Goods

The terms hazardous substances and dangerous goods are

used frequently at workplaces to refer to objects that have
the potential to harm human beings. There can be serious
accidents involving workers at workplaces when dealing
with
l

these two groups or categories of substances. However, there

re1nains confusion in the minds of the workers as to whether
the substance or product is hazardous or dangerous as they
do not have a clear cut definition. There are many who treat
both types of substances as same or synony1nous. However,
there are differences between hazardous and dangerous
goods that will be highlighted in this article for the benefit of
the readers.

Dangerous Goods

When there is an im1nediate danger or hazard to human

beings, property, or even to the environment fro1n certain
products, they are labeled as dangerous goods. This danger
may be because of their inherent properties such as their
toxic content, flan11nability, or even their reactivity to other
substances or che1nicals. If the goods are such that they can
cause a fire or an explosion, they are termed as dangerous.
They are dangerous even if they can lead to corrosion or
poisoning. Thus, it beco1nes clear that both physical as well
as che1nical effects of products are responsible for getting
them classified as dangerous goods. There are many
different classes into which dangerous goods are divided
into. These classes include explosives, gases, flaininable
liquids and solids, toxic solids and liquids, radioactive
substances, corrosive and acidic substances etc.

Hazardous Substances

The substances or the products used by employees at a

workplace are classified as hazardous when they have
l

hannful health effects, both short term as well as long tenn.

Many of the hazardous substances are the everyday products
we see and use in our daily lives such as paints, cleaning
powders, glues, and liquids. However, it is their 1nedium
tenn and chronic health effects that get them to be
classified as hazardous substances. So1ne people seem
susceptible to harmful health effects of these substances
while others can easily resist these health effects. Some
people report nausea , dizziness, watery eyes, and itching
and irritation on skin because of con1ing in contact with
hazardous substances while there are people who develop
dennatitis or even cancers of skin because of these
hazardous substances in the long run.

What is the difference between Hazardous Substances

and Dangerous Goods?

• Hazardous substances are those that are classified based

upon their health effects upon human beings.

• Dangerous goods are goods that have the potential to cause

harm to people, property or the environ1nent.

• Hazardous substances include paints, washing powders

and many other innocuous looking substances that can bring
in harmful health effects on a tnedium or long term to some
individuals

• Dangerous goods can bring immediate physical or

chemical harm by fire, explosion, corrosion, etc. These
include,
'

National Transport

Commission Labelling

chemicals

Classifying chemicals

Safety data sheets

Registers, manifests and placards

Workplace exposure standards for chemicals

ENGINE

The engine of your aircraft is without question, one of its

most important parts. And when it's time to replace an
aircraft engine, there is a good chance we can help.
Aircraft Parts Store is the first choice for many private
aircraft owners and those responsible for corporate aircraft
and fleets. We consistently provide quality used piston
aircraft engines, turboprop aircraft engines and
turbine aircraft engines for all types of corporate and
general aviation aircraft. We also provide parts for these
types of engines.

All of the engines we sell are "As Removed" meaning, we

do not invest numerous man hours or costs to refurbish or
rebuild our engines. This allows us to provide engines that
are in good condition at a much lower cost than a rebuilt or
new engine. We carefully inspect every engine before it is
'

available for sale in order to provide a detailed

assessment of the condition of the engine. Our
aircraft
engines come with their maintenance records or log
books and like all of our aircraft parts, carry a 60 day
warranty.
Our aircraft acquisition efforts consistently produce a
wide variety of aircraft engine types from a variety of
manufacturers. We commonly have Lycoming and
Continental engines, as well as Honeywell, Pratt &
Whitney and others from corporate and general aviation
aircraft. All of our engines are carefully removed from the
aircraft fully intact. We store all of our engines on-site at
our parts warehouse which allows us to ship any engine
the same day.

If you are in need of an engine, be sure to check with

us first. We have the perfect, cost effective solution for
your aircraft engine needs!

Aircraft Storage: Proper Protection for Any Storage

Condition
Aircraft engines are built to be used on a regular basis, so
any length of inactivity must be met with proper
maintenance planning to ensure the engine remains in
proper working order. Although experts recommend taking
a plane up at least once a week for 30 minutes to an hour to
prevent engine problems, many pilots in today's economy
have been forced to significantly reduce flight time due to
tightened budgets and increased operating costs.
Rust and corrosion prevention
Rust does happen. In some cases it will form because the
r

engines aren't flown long enough to evaporate the water

generated from condensation or blow-by from the
combustion process. However, rust generated in this
manner is the exception, rather than the rule. The most
common cause for rust is improper aircraft storage. There
are several different ways to help prevent rust and pilots
and technicians must be familiar with these tactics if they
plan to store an aircraft for longer than a few weeks.
Preservative oils protect aircraft piston engines from rust
and corrosion in a manner that standard aviation engine
oils do not. These preservative oils are specifically
formulated with robust corrosion inhibitors that allow the
lubricant to chemically protect metal parts, resulting in a
superior barrier against rust and corrosion. Such
preservative oils, however, are not suitable for extended
flight hours since they don't contain the ashless dispersant
additive package that protects engines during normal use.
When preparing for storage, it is highly recommended that
you drain and replace the existing oil with the preservative
oil, and then fly the aircraft for at least 30 minutes or more
to fully flush any remaining oil and circulate the new fluid
throughout the engine to coat all engine parts. This simple
step on the storage checklist will ensure much better engine
protection results.
Basic principles
Whatever the type of operation or reason for storing an
aircraft, there are several principles that should be followed
to ensure your investment is adequately protected based on
one of the following operating conditions:
Frequently flown: If your plane is flown several times a
month, for periods longer than one hour, there is little, if
any, need for additional rust protection. Phillips 66's 30
years of experience indicates the existing rust-inhibiting
properties of its ashless dispersant conventional oils
perform very well for preventing rust in this type of service.
Infrequently flown: Phillips defines an infrequently flown
plane as one that sits for several weeks to a month or more.
We recommend that if you're more than halfway through
the normal engine oil drain interval, change the oil and fly
the plane to circulate the fresh oil through all the bearings
and valve train. Parking the plane with fresh oil will greatly
reduce the likelihood of any bearing corrosion that may
result from contaminated or acidic used oil.
Infrequently flown with significant intervals (such as winter
months) of non-use: The use of a preservative oil can
significantly improve protection against rust when used as
a top-off with conventional aviation oil. We recommend
adding 10 percent of aviation anti-rust oil 20W-50 to the
engine oil and flying it for 30 to 60 minutes to allow
good distribution of the antirust additive before parking
the plane.
Long-term storage: More than three months of continuous
storage and the engine should be treated to a full change of
preservative oil. Drain the crankcase and refill with straight
anti-rust oil then fly the plane for at least an hour and park
it taking all other steps for long periods of storage such as
covering the exhaust. No matter where a plane is stored, '
critters and insects can pose just as big a threat to aircraft
parts as rust and corrosion. Wasps and small birds are
notorious for building nests within exposed areas of the
exhaust and exhaust valves. When these nests go unnoticed
by pilots or the maintenance staff, they can be ingested
when the engine is powered up, resulting in significant
damage to critical engine parts and also jeopardizing the
safety of those onboard. During extended storage periods,
every opening on the aircraft's exterior should be carefully
sealed to ensure nothing can fly or crawl into the plane.
Additionally, when preparing a stored aircraft for flight,
checking for such nests is a crucial step prior to operation.
Anti "scare tactic" anecdote
Rust does not always form in short periods of time. Phillips
66 once shipped an engine that had been using Phillips 66
X/C® 20W-50 from England, by boat, to Mobile, AL, for a
condition report. In the shipping process the engine was
misplaced. Months later, the engine was located on an
outdoor loading dock, completely exposed to the elements.
Arrangements were then made to deliver the engine to
Mobile for the disassembly and, to everyone's surprise,
there was no rust to be found in the crankcase or on any of
the internal oil-wetted parts.
Laboratory test methods for rust and corrosion
It may be helpful to understand the type of bench-testing
that can be a good indicator of the rust-prevention
properties of aviation engine oils. One aggressive lab test
for rust and corrosion prevention is the Turbine Oil Rust
Test -ASTM D665 (also known as the Saltwater Spindle
Test). The standard test consists of immersing a clean and
polished steel rod into a mixture of 90 percent oil and 10
percent water or saltwater solution. Part A of the test uses
distilled water while Part B uses synthetic seawater
(containing sodium chloride, magnesium chloride, sodium
sulfate, and a number of other ingredients in addition to the
water). The mixture is stirred, with heat (140 F), for four
hours, after which the steel rod is examined for evidence of
rust.
Blind testing
Two blind samples were submitted to an independent lab
that tested them in the Turbine Oil Rust Test, ASTM 0665,
Parts A and B. The two samples consisted of Phillips 66
X/C 20W-50 and a competitive multigrade product. Test
results showed no corrosion and no staining for either of
the samples. This test demonstrates that Phillips 66 X/C
20W- 50 has good rust-inhibiting properties to protect
steel under these adverse conditions.
The ASTM 0665 test is not designed to demonstrate long
term storage protection, but it does indicate that the
corrosion protection of passing oils is equivalent to that of
rust- and oxidation-inhibited steam turbine oils.
Monograde vs. multigrade oil film retention debate
A persistent perception in the aviation community is that
monograde, commonly referred to as straight-grade,
aviation engine oils adhere to engine parts better than their
multigrade counterparts, thus providing better protection
during periods of inactivity. While it may make initial
intuitive sense that a thi-cker straight-grade oil would
remain on
engine components longer than a multigrade oil, the simple
fact is that all aviation engine oils drain off the parts down
to a residual oil film thickness of 3 to 4 microns (25
microns
= 1/1,000 of an inch) after just a few hours- regardless of
the brand or viscosity of the aviation engine oil tested. So
the idea that one achieves greater oil retention with single
grade oils is a busted myth. The proven advantage of
multigrade oils is that they result in faster lubrication at
startup when most wear occurs, they exhibit better high
temperature protection in the piston ring belt area, and
provide significantly cleaner engine operation than
comparable straight-grade oils.
Final words of wisdom
Regardless of the reasons for a plane being stored, always
plan ahead so that no step of the process is missed, and
overestimate the anticipated storage time period in the
event the aircraft needs to sit longer. While there are many
components to proper aircraft storage, the process is easily
manageable when broken down in a few simple steps and is
critical to the long-term health of an airplane engine.
The basic EASA requirement is identified here- EASA
AMC 145.A.25(d) Facility requiretnents:
1. Storage facilities for serviceable aircraft co1nponents
should be clean, well ventilated and n1aintained at a constant
dry te1nperature to n1inimise the effects of condensation. .
Manufacturer's storage reco1nn1endations should be
followed for those aircraft components identified in such
published recom1nendations.
:

2. Storage racks should be strong enough to hold aircraft

con1ponents and provide sufficient support for large aircraft
con1ponents such that the cotnponent is not distorted during
storage.
3. All aircraft co1nponents, wherever practicable, should
remain packaged in protective 111aterial to tninin1ise dan1age
and corrosion during storage.

JlEQUIRED :IDEAL S'lORE

To consider what is required in details for our
"Ideal" Store:
General Storage Conditions - The conditions of storage of
aircraft supplies are in1portant. The pretnises should be laid
out in an ergonon1ic way, we should also consider the health
and safety of our workers and take note of the lifting
regulations and the need to be especially careful when
working at heights over 2 tnetres.
Goods Receipt Area - Adequate space to fully exan1ine
the Inaterial and parts which are arriving- ability to be able
to n1ove the product easily through the area in the n1ost
effective way (avoiding back tracking where ever possible).
ESDS Inspection Facility- Typically we will leave ESDS
ite1ns in their protective packaging, never the less we n1ust
have the capability to safely inspect in details
Ventilation- Natural Ventilation is best but it is not always
possible. Even when there is no natural ventilation there
should be adequate ventilation to n1ake sure there can be no
build-up of any fun1es if ever a product was spilled for
exan1ple.
Humidity- The facility should be 1naintained at an even dry
te1nperature to n1ini1nise the effects of condensation, note
that in 1nany instances the manufacturer will specify the
ten1perature and relative htnnidity in which the products
should be stored.
To ensure that these conditions are n1aintained \.Vi thin
the specified range, instrun1ents are used which n1easure
the te1nperature and relative hun1idity of the store room.
Te1nperature and Relative Htu11idity When required,
the te1nperature and hun1idity should be checked at
regular intervals by tneans of a hygro1neter which
Ineasures the an1ount of hu1nidity in the atmosphere.
The wall-type of hygrometer is nonnally used and consists of
wet and dry 'bulbs'; the dry bulb records the actual
ten1perature, and a con1parison bet\.veen this reading and
that registered by the wet bulb, \vhen read in conjunction
with a table, will indicate the percentage of relative hutnidity
present in the atn1osphere.
Racks and Storage Bins
Racks and Bins
Open racks allow a free circulation of air and are preferable
when the nature of the stock pennits their use. Nate - The
painted metal type of bins is 1nore suitable than the wooden
type, since with the latter there is a risk of corrosion due to
mould or datnpness.
Polyethylene, rigid PVC, corrugated plastics or cardboard
bins n1ay also be used. Many 1noulded plastics bins can also
be fitted vvith ren1ovable dividers vvhich vvill allow for the
segregation of sinall parts whilst n1aking econotnic use of the
space.
Nor1nal Stock Rotation
Typical vve should work with the philosophy of First In First
out (FIFO) 1neans vve always use the oldest stock first. This
is of course highly relevant for perishable goods, instrun1ents
and other components which have definite storage litniting
periods.
Shelf Life
Shelf life tnay affect both parts and n1aterials. Where a part
has a specific shelf life, we are expected to clearly n1ark the
part and to ensure it is no longer n1ade available when the
shelf life expires. This requires a shelf life n1anagetnent
systen1 where iten1s are controlled and retnoved (or ideally
used) before there due date.
So1ne exan1ples of material which have li1nited shelf life
include Aircraft Wheel Asse1nblies, Solvents, Sealants,
Adhesives, Packings ( 0-rings), and other Rubber Products,
also Safety Equip1nent.
Identifying Shelf life is one of the duties of the Stores
Receiving Inspector so it is in1portant that the Inspector has
the necessary con1petence to understand where the Shelf life
inforn1ation cotnes fro1n whether it is specific fro1n
n1anufacture's documentation- or generic fron1 best
practice.
flaininable solids and liquids, gases, radioactive materials,
and so on.

• There are many products that are classified under both the
categories and, therefore, safety regulations of both
categories are applied on such products.

Differences Between MRB & M D

What are the differences between the

Maintenance Review Board (MRB) and
Maintenance Planning Document (MPD) and
which one should be used as a basis for an
operator's maintenance program?

ANSWER: When a new aircraft is being designed

and produced, the aviation authority, the
manufacturer, and selected industry participants
form groups called maintenance steering groups
(MSG) and industry steering committees (ISC).

These groups, through numerous meetings

determine the frequency and scope of aircraft
inspections to be peformed. This informatton is
.·

provided to another group called the maintenance

review board (MRB). The MRB will issue their final
recommendations to the manufacturer on how an
aircraft should be maintained.

The manufacturer then publishes this information

in maintenance planning documents (MPD) to
be provided to the customer.

For small private aircraft the aircraft owner usually

follows the inspections and maintenance practices
published by the manufacturer.

For airline or commercial operators, the

recommendations of the MRB and subsequent MPD
are used to develop a Continuous Airworthiness
Maintenance Program (CAMP), which is then
approved by the FAA.

EAA Aircraft Certification Procedures

What type of certification do you need?

The list below includes the types of aircraft

certifications that can be performed. Click on
each link and be guided through that specific
certification process.
If you don't know what certification you need, or
are just researching the topic please read the
summary information below each link to help
guide you.

Standard Airworthiness Certification A standard

airworthiness certificate is issued for most aircraft
and is classified by category of operation (i.e.,
normal, utility, acrobatic, commuter, transport
category, or manned free balloons).

Export Aiworthiness Certification There are two

types of export approvals. An Export Certificate of
Airworthiness, FAA Form 8130-4, is issued for
aircraft, and an Export Airworthiness Approval, FAA
Form 8130-3, is issued for engines, propellers, and
other aviation articles.

Special Airworthiness Certification There are

special category classifications which require
special airworthiness certificates. Those categories
are Restricted, Multiple, Limited, Primary, Light
Sport, Experimental and Provisional.

Special Flight Permits and Authorizations A permit

or authorization to fly an aircraft may be issued for
an aircraft that does not currently meet the
applicable airworthiness requirements, but is
capable of safe flight.

1.1 INTRODUCTION

THE SCIENTIFIC MANAGEMENT OF STOREHOUSE IS AN

ESSENTIAL PART OF THE ORGANIZATIONS
OPERATIONS. TJ-IE STORES MANAGEJ\1ENT FUNCTION
ASSUI\1ES SPECIAL SIGNIFICANCE IN CONSTRUCTION
INDUSTRY \t\!H ERE IDENTITY OF THE MATERIALS,
THE HANDLING, PROPER STORAGE AND ACCURACY
IN ACCOUNTING DURING ISSUE ARE OF PARAMOUNT
IMPORTANCE IN THE EFFICIENT OPERATION OF THE
STORE HOUSE.

1.2 THE TASK OF STORES MANAGEMENT RELATES TO

SAFE CUSTODY AND PRESERVATION OF THE
l\1ATERIALS STOCKED AND THEIR RECEIPT, ISSUE AND
ACCOUNTING. THE OBJECTIVE IS TO EFFICIENTLY AND
ECONOMICALLY PROVIDE THE RIGHT l\1ATERIAL AT
TilE TIME WHEN IT lS REQUIRED AND IN THE
SERVICEABLE CONDfTfON IN VVHICH IT IS REQUIRED:·

1.3 EFFICIENCY IN THE STORE STARTS WITH PRECISE

FORECASTING AN.D PLANNING OF THE NECESSITY FOR
MATERIALS, AND THIS PRESUPPOSES THAT THE NEED
 f

. ..

ITSELF HAS BEEN FORECAST VVITH A CONSIDERABLE

DEGREE OF ACCURACY. THE FORECAST ALSO MUST BE
SUBJECTED TO PERIODIC REVIEvV. THE ART OF
ST0 RES l\1AN AGE J\1 ENT IS LARGELY THAT 0F
OPTIJ\1IZING THE USE OF RESOURCES TO MEET
ACTUAL NEEDS IN AN EFFICIENT J\1ANNER.

1.4 THE RELATIVE FUNCTION OF THE STORES

l\1ANAGEI\1ENT FUNCTION DEPENDS UPON THE
NATURE AND SIZE OF THE ORGANISATION OR
ACTIVITY CONCERNED, AND IN ALL CASES IT HAS TO
BE DESIGNED TO SUIT THE PARTICULAR NEED OF THE
ORGANIZATION IT SERVES. THERE IS, THEREFORE, NO
STANDARD SYSTEl\1 WHICH CAN BE UNIVERSALLY
RECOMl\1ENDED OR APPLIED, BUT IN THE COURSE OF
Tll\1E, CERTAIN PRINCIPLES AND PRACTICES OF
GENERAL APPLICATION HAVE BEEN EVOLVED. THE
UNDERSTANDING OF THESE PRINCIPLES IS ESSENTIAL
FOR EFFICIENTLY PRACTICING THE ART OF STORES
MANAGEMENT.

2.1 DEFINITION:

STOREHOUSE REFERS TO A BUILDING OR ROOM OR

PLACE V\THERE l\1ATERIALS ARE KEPT. IT CAN ALSO BE
DEFINED AS THE MANAGEMENT OF THE FOLLOWING
OPERATIONS:-

2.2 RECEIPT OF MATERIALS.

2.3 EFFICIENT STORAGE.

..

2.4 SAFE CUSTODY.

2.4 TIMELY ISSUE.

2.5 STOCK ACCOUNTING.

2.6 SCRAP MANAGEMENT.

STORAGE IS AN ESSENTIAL PART OF THE ECONOMIC

CYCLE AND STORES MANAGE1\1ENT IS TODAY A
SPECIALIZED FUNCTION WHICH CAN CONTRIBUTE
SIGNIFICANTLY TO THE OVER ALL EFFICIENCY AND
COST EFFECTIVENESS OF THE MATERIALS
MANAGEMENT.

3.1 OBJECTIVES AND RESPONSIBILITIES

THE OBJECTIVE OF THIS

IS TO ENSURE SCIENTIFIC AND EFFICIENT

MANAGEMENT OF RECEIPTS, STORAGE AND ISSUES OF
. ..

f\1ATERIALS KEEPING IN VIEV\T THE ECONOMICS,

SECURITY OF STOCK AS WELL AS SAFETY
REQUIREf\1ENTS.

TO DEFINE THE ORGANIZATIONS POLICY AND SCOPE

FOR f\1ANAGING A STOREHOUSE.

TO ESTABLISH A PROCEDURE TO FACILITATE SPEEDY

HANDLING AND ACCOUNTING OF RECEIPTS, STORAGE
AND ISSUE OF MATERIALS.

3.2 THE MAJOR RESPONSIBILITIES OF STOREHOUSE

ARE LISTED BELOW:-

IDENTIFICATION OF ALL M.ATERIALS STORED.

R EC EIPT 0 F INC 0 l\1ING l\1ATE RIALS.

INSPECTION OF ALL RECEIPTS FROM SUPPLIERS.

STORAGE AND PRESERVATION.

MATERIALS HANDLING.

ISSUE OF MATERIALS TO USERS WITHIN THE

ORGANIZATION.
MAINTENANCE OF STOCK RECORDS.

STORES ACCOUNTING.

INVENTORY CONTROL.

STOCK-TAKING.

SUBI\1ISSION OF MANAGEMENT INFORMATION

REPORTS.

4.0 SCOPE

THIS SOP COVERS ALL ASPECTS OF RECEIPTS,

STORAGE, ISSUES, HANDLING, STATUS REPORTS AS
WELL AS SAFETY AND SECURITY REQUIREMENTS
FOR:-

4.1 TRG TOOLS AND STORES.

4.2 CONSTRUCTION I\1ATERIALS. (EXPENDABLES AND

NON EXPENDABLES).

4.3 WORKSHOP MACHINERY.

4.4 OPERATING/ I\1ISCELLANEOUS SUPPLIES FOR

BUILDING MAINTENANCE AND ADI\1INISTRATIVE

SERVICES.
6

4.5 TRADESMEN TOOL KITS.

4.6 UNIFORf\1S & SAFETY EQUIPMENT.

4.7 0F F ICE E QUI PI\1EN T & STAT I0 N E RY.

4.8 HOUSE KEEPING STORES

4.9 REJ ECT E 0 I\1ATE RIALS.

4.10 SCRAP OF ALL TYPES.

5.0 POLICY

ONLY AUTHORIZED PERSONS SHALL HAVE ACCESS TO

THE STORE HOUSE.

STORE HOUSE SHALL NOT BE KEPT OPEN

UNATTENDED DURING WORKING HOURS.

ALL MATERIALS \NILL BE ISSUED ON FIRST -IN-FIRST

OUT (FIFO) BASIS.
ALL f\1ATERIALS WILL BE RECEIVED AT THE STORE
HOUSE AND PERSON/ DEPARTMENT CONCERNED
VVILL BE NOTIFIED PROMPTLY ON RECEIPT.

ALL MATERIALS SHOULD BE STACKED PROPERLY.

ALL MATERIALS APPROVED AFTER INSPECTION

SHALL BE STORED IN THE DESIGNATED LOCATIONS.

HAZARDOUS MATERIALS ARE TO BE STORED

SEPARATELY.

ALL MATERIALS REJECTED SHALL BE KEPT AT A

DESIGNATED PLACE AND ARRANGEMENTS FOR THEIR
DISPOSAL l\1ADE ON THE ADVICE OF CONCERN
PURCHASING OFFICIAL.

EXPENSIVE AND ATTRACTIVE ARTICLES SHOULD BE

STORED IN STEEL CUPBOARDS AND ALWAYS LOCKED
UP.
ITEMS ISSUED ON LOAN SHOULD BE PERIODICALLY
VERIFIED \NITH LOAN RECORDS. CAPITAL ITEMS
MUST BE PERIODICALLY CHECKED WITH CAPITAL
INVENTORY.

A GATE PASS SHOULD BE MADE FOR TAKING OUT

MATERIALS. THESE Sl·IOULD BE SIGNED ONLY BY
AUTHORIZED PERSONS.

UNIFORl\1S TO THE TRAINEES WILL BE ISSUED AT THE

TIME OF ENROLl\1ENT ON RETURNABLE /NON
RETURNABLE BASIS AS PER INSTRUCTIONS OF
DIRECTOR.

TOOL KITS VVILL BE ISSUED TO ALL TRAINEES ON NON

RETURNABLE BASIS AFTER SUCCESSFUL COMPLETION
OF THE TRAINING AS CERTIFIED BY DIRECTOR CTTI.

7
AFTER COMPLETION OF EACH BATCH OF TRAINING A
BOARD OF OFFICERS WILL BE CONVENED TRADE WISE
TO SURVEY AND ASSESS THE SERVICEABILITY OF ALL
TRAINING STORES. THE BOARD OF OFFICERS WILL
RECOMMEND RECOUPMENT OF CONSUMABLE
TRAINING STORES TRADE \NISE REQUIRED FOR NEXT
BATCH TRAINING. THEY VVILL ALSO RECOM!\1END
DISPOSAL ACTION TO BE TAKEN FOR ITEMS
RECOM!\1ENDED AS UNSERVICEABLE, SCRAP OR
BEYOND ECONOMICAL REPAIRS (BER).

TRAINING STORES DECLARED

UNSERVICEABLE/CONSUMED DURING THE SAID
TRAINING PERIOD VVILL BE REPLACED AFTER
OBTAINING THE APPROVAL TO CHARGE OFF/WRITE
0F F FR0 f\1 D G, NA C.

6.1 RECEIVING, INSPECTING AND INWARDING

STORES PERSONNEL SHALL INVVARD MATERIALS

AFTER ENSURING THE FOLLOWING.

6.2SUPPLIERS DELIVERY CHALLAN (DC)/ INVOICE

BEARS THE IN\NARD STAMP.

6.3SUPPLIERS DELIVERY CHALLAN / INVOICE BEARS

THE REFERENCE OF PURCHASE ORDER.

6.4IN CASE OF CONSIGNMENT RECEIVED WITH OUT 1

ANY DOCUMENTS OR ANY DISCREPANCY NOTICED IN
THE DOCUI\1ENTS RECEIVED, PURCHASE OFFICIAL
WILL BE N 0T IFIE D I 1\1MEDIATELY F0R 0 B TAIN IN G
NECESSARY INFORI\1ATION FOR INV\TARDING. TILL
SUCH TIME MATERIAL vVILL NOT BE IN \f\TARDED.

6.4 ACKNOVVLEDGEMENT OF RECEIP'T OF

C 0N SIGN l\1EN T' S IS SUBJ E C T T 0 FINAL C HEC K AND
APPROVAL. A NOTATION, TO THIS EFFECT MUST BE
STAMPED ON EACH COPY OF DELIVERY CHALLAN/
LORRY RECEIPT /INVOICE AS GIVEN BELOW:-

GOODS RECEIVED SUBJECT TO VERIFICATION AND

APPROVAL.

I/C TRAINING STORES CTTI HYDERABAD

6.5 ALL APPARENT DAMAGES/LEAKAGES/BROKEN

SEAL IN THE CONSIGNI\1ENT RECEIVED ARE
IMMEDIATELY RECORDED IN THE DC/LR/INVOICE
AND BRING THE SA!\1E TO THE ATTENTION OF DY. DIR
(S&M) OR CONCERNED AUTHORITY.

6.6 VERIFY THE IDENTITY OF THE 1\1ATERIAL

RECEIVED. ENSURE DESCRIPTION OF THE MATERIAL
GIVEN IN THE CONSIGNMENT AND NUMBER OF
CONTAINERS/ PACKAGES RECEIVED AS PER THE DC/
LR / INVOICE.

6.7 MATERIALS SHALL BE RECEIVED ON ALL

WORKING DAYS ONLY DURING WORKING HOURS.
12.1 STORES ACCOUNTING

12.2 NEED FOR STORES ACCOUNTING: STORES

ACCOUNTING HAS TVvO ASPECTS, THE VALUE OF THE
l\1ATERIALS STORED AND THE PHYSICAL QUANTITY
OF THE l\1ATERIALS STORED. STORES ACCOUNTING IS
NECESSARY FOR A LARGE NUMBER OF REASONS, OF
WHICH THE FOLLOWING ARE MOST IMPORTANT:

12.3 THE STOCKS REPRESENT ASSETS OF THE

ORGANIZATION AND AS SUCH IT IS NECESSARY TO
INCLUDE THEIR VALUE IN THE ACCOUNTS OF THE
ORGANIZATION.

12.3 IT PROVIDES A l\1EANS OF COSTING OF AN ITEM

USED.

12.4 IT PROVIDES A BASIS FOR INVENTORY CONTROL

BY VALUE.

12.5 AS FOR THE SECOND ASPECT, IT IS NECESSARY

ALL THE Til\1E TO ENSURE THAT ALL THE MATERIALS
THAT HAVE BEEN RECEIVED HAVE BEEN ACCOUNTED
FOR. ALL RECEIPTS AND ALL ISSUES HAVE T·o BE
ENTERED IN STOCK LEDGERS OR REGISTERS AND
HAVE TO BE ACCOUNTED FOR.

12.6 I\1AINTENANCE OF LEDGERS WILL BE DONE AS

EXPLAINED IN PARA 6.10 AND 6. .1.1ABOVE.

13.1 SCRAP MANAGEI\1ENT

13.2 SCRAP IS INEVITABLE IN A TRAINING INSTITUTE.

SCRAP HAS A VALUE AND l\1UST BE TREATED AS ANY
OTHER STORES ITEM. IT SHOULD BE ACCOUNTED FOR
PROPERLY AND STORES PERSONNEL ARE
RESPONSIBLE FOR IT. COLLECT, SORT AND PREPARE
THE SCRAP METAL AND WASTE. EACH HAS A
DIFFERENT VALUE AND IF ALL ARE MIXED UP, THEIR
VALUE MAY FALL VERY LOW. DIFFERENT ITEMS WILL
HAVE THEIR OVVN BUYERS. SORTING, CATEGORIZING
AND PREPARING THE SCRAP ARE THEREFORE,
Il\1PORTANT.

13.3 ITEI\1S LIKE EMPTY CEMENT BAGS, PAPER, CARD

BOARD BOXES, WOOD SHAVE, GI, MS, STEEL,
ALUMINUM, COPPER, PLASTIC AND WOOD BE
SALVAGED, CONVERTED INTO SCRAP AND SHALL BE
TAKEN ON LEDGER CHARGE AS SCRAP THROUGH A
CASUAL RECEIPT VOUCHER AND ACCOUNTING UNIT
WILL BE IN KGS. \NHEN CONSIDERABLE QUANTITY IS
ACCUl\1ULATED THESE CAN BE DISPOSED OFF IN THE
LOCAL l\1ARKET. DISPOSAL PROCEDURE AS
MENTIONED IN SOP FOR PURCHASE FUNCTION AT
NAC WILL BE STRICTLY FOLLOWED.
14.1 STOCK VERIFICATION

14.2 PHYSICAL STOCK TAKING IS THE PROCESS OF

COUNTING, \NEIGHING, T\1EASURING, ETC. OF ALL THE
ITEMS IN TI-·IE STOCK AND RECORDING THE RESULTS
OF SUCH AN EXERCISE. THE OBJECTIVE OF STOCK
·rAKING IS AS FOLLOWS:-

14.3 IT IS A STATUTORY NECESSITY.

14.4 TO VERIFY THE ACCURACY OF THE STOCK

RECORDS.

12

14.5 TO DISCLOSE THE POSSIBILITY OF FRAUD,

THEFT, LOSS ETC.

14.6 TO REVEAL ANY WEAKNESS IN THE OVERALL

STORAGE SYSTEM, SO AS TO MAKE II\1PROVEMENTS.

14.7 TO ENABLE BETTER CONTROL OF INVENTORIES.

14.8 VARIOUS T\1ETHODS OF STOCK VERIFICATION CAN

BE ADOPTED. ANNUAL STOCK TAKING SHALL BE
CARRIED OUT BEFORE CLOSURE OF EVERY FINANCIAL.
YEAR. AS PER STATUTORY REQUIREMEN'T EACH ITEM
MUST BE PHYSICALLY CHECKED AS PER ITS UNIT OF
I\1EASUREJ\1ENT AT LEAST ONCE IN A YEAR AND
ENTRY TO THE EFFECT THAT THE PHYSICAL STOCK
VERIFICATION IS CARRIED OUT BY WAY OF
COUNTING, VVEIGHING, OR MEASURING AND FOUND
CORRECT TO BE MADE IN THE RELEVANT LEDGER
PAGES AND INITIALED BY THE VERIFYING OFFICER.
DISCREPANCIES IF ANY FOUND ARE RECORDED AND
IMMEDIATELY INVESTIGATED.

14.9 THE STOCK CHECK SHOULD BE PLANNED IN SUCH

A WAY THAT ALL THE ITEMS ARE CHECKED AT LEAST
ONCE IN A YEAR AND THE IMPORTANT ITEMS AND
COSTLY OR ATTRACTIVE ITEMS CHECKED TWO,
THREE OR FOUR TII\1ES A YEAR.

14.10 A BOARD OF OFFICERS WILL BE ORDERED

BY THE CONCERNED DIRECTOR OF THE
INSTITUTE.

15.1 SAFETY OF STORES

THE TERJ\1 SAFETY ENCOMPASSES THE SAFETY OF

THE MATERIALS, FACILITIES USED, AND THE SAFETY
OF THE PERSONNEL WORKING IN A STOREHOUSE.

15.2 ACCIDENTS

ONE OF THE IMPORTANT RESPONSIBILITIES OF THE

STORES PERSONNEL IS TO PREVENT ACCIDENTS
FROM TAKING PLACE IN A STORE. ACCIDENTS CAN
CAUSE DAfviAGE TO -1ATERIALS, MACHINES OR
FACILITIES, AND INJURY TO WORKERS OR EVEN THEIR
DEATH. IT IS NECESSARY, THEREFORE, THAT ALL
PRECAUTIONS ARE TAKEN TO AVOID ACCIDENTS. THE
WORST CASE ONE CAN VISUALIZE IS A FIRE WHERE
THE ENTIRE PREMISES CAN BE COl\1PLE'TELY
DESTROYED. SOME OF THE MAIN CAUSES OF
ACCIDENTS IN A STORE ARE GIVEN BEL0\1\T:-

MATERIALS FALLING FROM RACKS.

WIRES, UNWANTED ROPES, STEEL RODS OR EI\1PTY

CARTONS KEPT CARELESSLY ON WALKWAYS.

INJURY ARISING FROM LIFTING VERY HEAVY LOADS,

OR NORMAL LOADS UNSCIENTIFICALLY.

COLLISIONS WITH BINS.

FALLING WHILE CLIMBING TO REACH THE UPPER

SHELVES.

INJURY TO HANDS RESULTING FROM LIFTING OR

HANDLING OF MATERIALS.

SLIPPING ON OIL, GREASE OR EVEN WATER

SPILLAGES.

INJURY CAUSED BY NAILS LEFT ON EMPTY CASES AND

BATTENS OF BOXES.
:

..

13

INJURY FROI\1 CORROSIVE ACIDS.

DROPPING GOODS ON ONES FEET WITHOUT

PROTECTIVE BOOTS.

I\10ST OF THE ACCIDENTS OCCUR DUE TO NON

OBSERVANCE OF PRECAUTIONS, CARELESSNESS AND
IN DISCIPLINE. ACCIDENTS ALSO ARISE FROM POOR
FACILITIES LIKE POOR LIGHTING, VVOBBLY LADDERS
OR RACKS, BADLY LAID OUT BINS ETC. GOOD
SUPERVISION IN THE MATTER OF OBSERVANCE OF
SAFETY RULES CANNOT BE OVERSTRESSED. STORES
PERSONNEL SHOULD EDUCATE, ENCOURAGE AND
ADVISE VVORKERS TO CHANGE THEIR ATTITUDES AND
GIVE THE HIGHEST PRIORITY FOR GOOD HOUSE
KEEPING.

15.3 FIRE PREVENTION:

ONE OF THE MAlOR HAZARDS IN A STORE RELATES TO

FIRE. IT IS NECESSARY TO TAKE EVERY PRECAUTION
AGAINST FIRE AND ENSURE THAT ALL FIRE
REGULATIONS ARE STRICTLY OBSERVED BY ALL THE
STAFF. IT IS NEEDLESS TO ADD THAT ADEQUATE
' .

MEASURES ARE ALSO TO BE PROVIDED TO FIGHT A

FIRE IN CASE ONE OCCURS. THIS MIGHT RANGE FROI\1
HAVING A FOAJ\1 EXTINGUISHER IN A SMALL STORE TO
INSTALLING A WATER RESERVOIR, GENERATOR AND
FIRE FIGHTING PUMPS IN A VERY BIG STORE. A PLACE
WHERE IN FLAMJ\1ABLE ARTICLES ARE STORED, IS
ESPECIALLY VULNERABLE. IT WOULD ALSO BE A VERY
DESIRABLE PRACTICE TO HAVE PERIODIC FIRE DRILLS
SO THAT PEOPLE KNOW V\THAT IS TO BE DONE IN
CASE OF A FIRE. STORES PERSONNEL SHOULD ALSO
BE TRAINED IN FIRE FIGHTING AND SPECIFIC
RESPONSIBILITIES GIVEN TO SPECIFIC PEOPLE SO
THAT THERE IS NO CONFUSION WHEN A FIRE OCCURS.

FIRE IS CAUSED USUALLY BY AN ACCIDENT. \IVHILE

SAFETY MEASURES ARE NECESSARY, PREVENTION OF
ACCIDENTS IS ALSO EXTREMELY IMPORTANT.

1.6.0 SECURITY OF STORES

SECURITY IN ALL STORES SHOULD BE PROPERLY

PLANNED AND ORGANIZED. DOORS SHOULD BE
STRONG AND PROVIDED WITH GOOD LOCKS AND
WINDOWS SHOULD BE PROVIDED WITH IRON GRILLS
OR WIRE J\1ESH.

16.1 THE INTERNAL LAYOUT IS ARRANGED IN SUCH A

WAY THAT THERE IS A SPACIOUS ISSUE COUNTER
., .
•

WHERE PEOPLE CAN OBTAIN MATERIALS WITHOUT

ENTERING THE STOREl-IOUSE.

16.2 STOCKYARDS SHOULD BE ENCLOSED WITH

FENCING WHICH IS ADEQUATELY HIGH. FOR EXTRA
PROTECTION THERE COULD BE A BARBED \NIRE
FENCE ALONG THE TOP OF A BRICK WALL. GATES
SIMILARLY SHOULD BE STRONG AND LOCKED.

16.3 CUSTODY OF KEYS: ALL KEYS OF STOREHOUSE

AND STOCKYARDS SHOULD BE NUMBERED AND
SPECIFIC PERSONS MUST BE MADE RESPONSIBLE FOR
THEl\1. DURING OFF-DUTY HOURS THESE KEYS ARE TO
BE KEPT IN A LOCKED ALI\1IRAH AT A CONVENIENT
PLACE (RECOMMENDED PLACE IS OF SECURITY
OFFICE). WHEN COLLECTING OR DEPOSITING A
BUNCH OF KEYS, ENTRIES SHOULD BE l\1ADE IN A
REGISTER AND DULY SIGNED. ONLY AUTHORIZED
PERSONS SHALL BE ALLOWED FOR HANDLING OF
KEYS CONCERNED TO THEIR DEPARTMENTS. THE
NUMBER OF

14 \IV EIG HE D/VERIFIED 10 0 °/o APPEND IX H -

TALLY CARD APPENDIX I

-LOSS STATEMENT
 ., .
• •

18.1 CONCLUSION

THERE ARE MANY ADVANTAGES IN STANDARDIZING

PROCEDURES AND LAYING THEM DOWN IN DETAIL.
HOWEVER, FLEXIBILITY IS DESIRABLE AND CHANGES
SHOULD BE ADOPTED \tVHENEVER AN IMPROVED
l\1ETHOD CAN BE THOUGHT OF. IT SHOULD BE THE
STORE KEEPERS FUNCTION TO CRITICALLY APPRAISE
EXISTING PROCEDURES AND MAKE CONTINUOUS
EFFORTS TO PROMOTE EFFICIENCY AND ECONOMY.

18.2 STORES PERSONNEL SHOULD BE THOROUGHLY

FAl\1ILIAR WITl·I THE STATUTORY REQUIREl\1ENTS,
RULES, BY-LAWS AND OTHER OFFICIAL REGULATIONS
AFFECTING THE STORAGE, SAFETY, ETC OF THE
STORES PREl\1ISES. TYPICAL EXAMPLES ARE THE
PET R 0LEU l\1 REGULA T I 0 N S, EX P L 0 SIV E S ST 0 RAGE
ACT, LABOUR LA\tVS, FACTORIES ACT ETC.

18.2 TilE PROCEDURE INCLUDED IN THIS SOP

SUPERSEDES ALL PREVIOUS PROCEDURES ISSUED ON
THE SUBJECT.

18.3 THE PROCEDURES COVERED IN THIS SOP ARE

MEANT TO BE EXHAUSTIVE. THOSE NOT SPECIFIED ,
HERE SHOULD BE DEALT WITH IN TERMS OF GENERAL
...

POLICY GUIDELlNES AND CONVENTIONS ALREADY

ESTABLISHED.

Purchasing Procedures For /!i.. Well Run Purchasing

Department
In a well run purchasrng department there is always a set
of purchasing procedures. This is usually a formal
document or manual that sets out each person's
responsibilities in the purchasing cycle as well as detailing
each of the specific purchasing procedures.
There are a nun1ber of standard purchasing procedures
that you will find in most purchasing departn1ents these
are:

. Purchase from Key Suppliers. This is where you

are purchasing fron1 your normal set of suppliers
that all have Master Agreements. This is a fairly
painless procedure that can often be done
automatically by your computer system.
. Ad hoc Purchases. In times of unusual selling
activity or when an unusual item is required there may
not be an agreement with a supplier to supply these
iten1s. This procedure allows you to n1ake these
unusual requests.
. Large Purchases. There rnay be a time when a
large piece of machinery of computer system is
required. In this case the purchase is usually put out
to tender and several companies are requested to bi'd
for the opportunity to meet this requirement. This
 procedure is not used often but is usually very well
defined due to the potential risk to the con1pany and
the high costs involved.
. Change of Purchase. Sometimes purchases are
n1ade but then have to be changed for son1e
reason. This is particularly true when standard orders
are placed and some change in the market demand
or manufacturing process happens.
. Goods Received. There have to be procedures
to ensure that the requested goods are received,
counted and stored in the correct n1anner.
. Goods Damaged or Short. There are times when
the order you receive is not that which was ordered,
there may be dan1ages or shortages. Obviously the
amount you pay n1ust be changed; the supplier
notified and damaged goods returned.
. Payment. Obviously your suppliers want paying
and
whilst your computer system can deal with the actual
payment, the canny business does not pay until they
have to.
. Stock. It is important that the purchasing
department
ensure that they are not over or under ordering and
that all purchased items actually reach the stock
room.
. Contracts and Contract Renewals. All suppliers
provide their best terms when there is a contract in
place. This can often be dealt with by the Master
Agreement, but these have to be put into place and
renewed.
As you can see there are a considerable number of
purchasing procedures that need to be set up. Luckily a
con1puterised purchasing system will provide a lot of
them but staff still need to understand them and have a
nun1ber of customised purchasing procedures to work to.
The efficient purchasing department will have the
purchasing procedures written down so that all can find
and work to them,
Logistics is generally the detailed organization and
implementation of a complex operation. In a general
business sense, logistics is the management of the flow of
things between the point of origin and the point of
consumption to meet requirements of customers or
corporations .The
resources managed in logistics may include tangible goods such
as materials, equipment, and supplies, as well as food and
other consumable items. The logistics of physical items
usually involves the integration of information flow, materials
handling, production, packaging, inventory, transportation,
warehousing, and often security.

In military science, logistics is concerned with maintaining

army supply lines while disrupting those of the enemy, since
an armed force without resources and transportation is
defenseless. Military logistics was already practiced in the
ancient world and as modern military have a significant need
for logistics solutions, advanced implementations have been
developed. In military logistics, logistics officers manage how
and when to move resources to the places they are needed.
Logistics management is the part of supply chain management
and supply chain engineering that plans, implements, and
controls the efficient, effective forward, and reverse flow and
storage of goods, services, and related information between
point of origin and point of consumption to meet customer•s
requirements. The complexity of logistics can be modeled,
analyzed,visualized, and optimized by dedicated simulation
software. The minimization of the use of resources is a
common motivation in all logistics fields.A professional
working in the field of logistics management is called a
logistician.

Configuring and managing warehouses is a central concern for

both business logistics and military logistics.

Logistics Specialist inventories supplies in a storeroom aboard

the aircraft carrier USS George H.W. Bush, where inventorying
means making a report on stock availability. Every stock
keeping unit has an individual code and a corresponding to a
specific subclass from a given drawer.

Emergency logistics (or Humanitarian Logistics) is a term used

by the logistics, supply chain, and manufacturing industries to
denote specific time-critical modes of transport used to move
goods or objects rapidly in the event of an emergency.[8] The
reason for enlisting emergency logistics services could be a
production delay or anticipated production delay, or an urgent
need for specialized equipment to prevent events such as
aircraft being grounded (also known as "aircraft on ground"
AOG), ships being delayed, or telecommunications failure.
Humanitarian logistics involves governments, the military, aid
agencies, donors, non-governmental organizations and
emergency logistics services are typically sourced from a
specialist provider.
The term production logistics describes logistic processes
within a value adding system (ex: factory or a mine). Production
logistics aims to ensure that each machine and workstation
receives the right product in the right quantity and quality at
the right time. The concern is with production, testing,
transportation, storage and supply. Production logistics can
operate in existing. as well as new plants: since manufacturing,
in an existing plant is a constantly changing process, machines
are exchanged and new ones added, which gives the
opportunity to improve the production logistics system
accordingly.[lO] Production logistics provides the means to
achieve customer response and capital efficiency. Production
logistics becomes more important with decreasing batch sizes.
In many industries (e.g. mobile phones), the short-term goal is a
batch size of one, allowing even a single customer's demand to
be fulfilled efficiently. Track and tracing, which is an essential
part of production logistics due to product safety and reliability
issues, is also gaining importance, especially in the automotive
and medical industries.
Construction Logistics is known to mankind since ancient times.
As the various human civilizations tried to build the best
possible works of construction for living and protection. Now
the construction logistics emerged as vital part of construction.
In the past few years construction logistics has emerged as a
different field of knowledge and study within the subject of
supply chain management and logistics.
Digital logistics is driven by a new generation of web-based,
enterprise logistics applications that enable collaboration and
optimization, leveraging a central logistics information
backbone that provides visibility across the enterprise and
extended supply chain.

In business, logistics may have either an internal focus (inbound

logistics) or an external focus (outbound logistics), covering the
flow and storage of materials from point of origin to point
of consumption (see supply-chain management). The main
functions of a qualified logistician include inventory
management, purchasing, transportation, warehousing,
consultation, and the organizing and planning of these
activities. Logisticians combine a professional knowledge of
each of these functions to coordinate resources in an
organization.
There are two fundamentally different forms of logistics: one
optimizes a steady flow of material through a network of
transport links and storage nodes, while the other coordinates
a sequence of resources to carry out some project (e.g.,
restructuring a warehouse).
Nodes of a distribution network[edit]
The nodes of a distribution network include:
Factories where products are manufactured or assembled
A depot or deposit, a standard type of warehouse for storing
merchandise (high level of inventory)
Distribution centers for order processing and order fulfillment
(lower level of inventory) and also for receiving returning
items from clients
Transit points for cross docking activities, which consist of
reassembling cargo units based on deliveries scheduled (only
moving merchandise)
Traditional retail stores of the Mom and Pop variety, modern
supermarkets, hypermarkets, discount stores or also voluntary
chains, consumers' co-operative, groups of consumer with
collective buying power. Note that subsidiaries will be mostly
owned by another company and franchisers, although using
other company brands, actually own the point of sale.
There may be some intermediaries operating for representative
matters between nodes such as sales agents or brokers.
Logistic families and metrics[edit]
A logistic family is a set of products which share a common
characteristic: weight and volumetric characteristics, physical
storing needs (temperature, radiation,...), handling needs,
order frequency, package size, etc. The following metrics may
be used by the company to organize its products in different
families:[19]
Physical metrics used to evaluate inventory systems
include stocking capacity, selectivity, superficial use,
volumetric use, transport capacity, transport capacity use.
Monetary metrics used include space holding costs
(building, shelving and services) and handling costs
(people, handling machinery, energy and maintenance) .
Other metrics may present themselves in both physical or
monetary form, such as the standard Inventory turnover.
Unit loads for transportation of luggage at the airport. In
this case the unit load has protective function.
Unit loads are combinations of individual items which are
moved by handling systems, usually employing a pallet of
normed dimensions.[20]
Handling systems include: trans-pallet handlers, counterweight
handler, retractable mast handler, bilateral handlers, trilateral
handlers, AGV and other handlers.
Storage systems include: pile stocking, cell racks (either static
or movable), cantilever racks and gravity racks.[21]
Order processing is a sequential process involving: processing
withdrawal list, picking (selective removal of items from loading
units), sorting (assembling items based on destination),
package formation (weighting, labeling and packing),
order consolidation (gathering packages into loading
units for transportation, control and bill of lading).[22]
Picking can be both manual or automated. Manual picking can
be both man to goods, i.e. operator using a cart or conveyor
belt, or goods to man, i.e. the operator benefiting from the
presence of a mini-load ASRS, vertical or horizontal carousel or
from an Automatic Vertical Storage System (AVSS). Automatic
picking is done either with dispensers or depalletizing robots.
Sorting can be done manually through carts or conveyor
belts, or automatically through sorters.
Transportation
Main article:
Cargo

Cargo, i.e. merchandise being transported, can be moved

through a variety of transportation means and is organized in
different shipment categories . Unit loads are usually
assembled into higher standardized units such as: ISO
containers, swap bodies or semi-trailers. Especially for very
long distances, product transportation will likely benefit from
using different transportation means: multimodal transport,
intermodal transport (no handling) and combined transport
(minimal road transport). When moving cargo, typical
constraints are maximum weight and volume.
Operators involved in transportation include: all train,
road vehicles, boats, airplanes companies, couriers,
freight forwarders and multi-modal transport operators.
Merchandise being transported internationally is usually
subject to the lncoterms standards issued by the
International Chamber of Commerce.

Push-back rack for motorcycles, a LlFO rack system for storage

Similarly to production systems, logistic systems need to be

properly configured and managed . Actually a number of
methodologie·s have been directly borrowed from
operations
management such as using Economic Order Quantity models
for managing inventory in the nodes of the network.[23]
Distribution resource planning (DRP) is similar to MRP,
except that it doesn't concern activities inside the nodes of
the network but planning distribution when moving goods
through the links of the network.
Traditionally in logistics configuration may be at the level of
the warehouse (node) or at level of the distribution system
(network).
Regarding a single warehouse, besides the issue of designing
and building the warehouse, configuration means solving a
number of interrelated technical-economic problems:
dimensioning rack cells, choosing a palletizing method (manual
or through robots), rack dimensioning and design, number of
racks, number and typology of retrieval systems (e.g. stacker
cranes). Some important constraints have to be satisfied: fork
and load beams resistance to bending and proper placement of
sprinklers .Although picking is more of a tactical planning
decision than a configuration problem, it is important to take it
into account when deciding the racks layout inside the
warehouse and buying tools such as handlers and motorized
carts since once those decisions are taken they will work as
constraints when managing the warehouse, same reasoning for
sorting when designing the conveyor system or installing
automatic dispensers.
Configuration at the level of the distribution system concerns
primarily the problem of location of the nodes in a geographic
space and distribution of capacity among the nodes. The first
may be referred to as facility location (with the special case of
site selection) while the latter to as capacity allocation. The
problem of outsourcing typically arises at this level: the nodes
of a supply chain are very rarely owned by a single enterprise.
Distribution networks can be characterized by numbers of
levels, namely the number of intermediary nodes between
supplier and consumer :
Direct store delivery, i.e. zero levels
One level network : central
warehouse
Two level network: central and peripheral warehouses
This distinction is more useful for modeling purposes, but it
relates also to a tactical decision regarding safety stocks:
considering a two level network, if safety inventory is kept only
in peripheral warehouses then it is called a dependent system
(from suppliers), if safety inventory is distributed among
central and peripheral warehouses it is called an independent
system (from suppliers).[19] Transportation from producer to
the second level is called primary transportation, from the
second level to consumer is called secondary transportation.
Although configuring a distribution network from zero is
possible, logisticians usually have to deal with
restructuring existing networks due to presence of an
array of factors:
changing demand, product or process innovation, opportunities
for outsourcing, change of government policy toward trade
barriers, innovation in transportation means (both vehicles or
thoroughfares), introduction of regulations (notably those
regarding pollution) and availability of ICT supporting systems
(e.g. ERP ore-commerce).
Once a logistic system is configured, management, meaning
tactical decisions, takes place, once again, at the level of the
warehouse and of the distribution network. Decisions have to
be made under a set of constraints: internal, such as using the
available infrastructure, or external, such as complying with
given product shelf lifes and expiration dates.
At the warehouse level, the logistician must decide how to
distribute merchandise over the racks. Three basic situations
are traditionally considered: shared storage, dedicated storage
(rack space reserved for specific merchandise) and class based
storage (class meaning merchandise organized in different
areas according to their access index).
Airline logistic network. Denver works as a hub in the network.
Picking efficiency varies greatly depending on the situation.[22]
For man to goods situation, a distinction is carried out between
high level picking (vertical component significant) and low level
picking (vertical component insignificant). A number of tactical
decisions regarding picking must be made:
Routing path: standard alternatives include transversal
routing, return routing, midpoint routing and largest gap
return routing
Replenishment method: standard alternatives include equal
space supply for each product class and equal time supply for
each product class.
Picking logic: order picking vs batch picking
At the level of the distribution network, tactical decisions
involve mainly inventory control and delivery path
optimization. Note that the logistician may be required
to manage the reverse flow along with the forward flow.
Warehouse management and control[edit]
Although there is some overlap in functionality, warehouse
management systems (WMS) can differ significantly from
warehouse control systems {WCS). Simply put, a WMS plans
a weekly activity forecast based on such factors as statistics
and trends, whereas a WCS acts like a floor supervisor,
working in real time to get the job done by the most effective
means. For instance, a WMS can tell the system that it is
going to need five of stock-keeping unit (SKU) A and five of
SKU B hours in
"

advance, but by the time it acts, other considerations may have

come into play or there could be a logjam on a conveyor. A
WCS can prevent that problem by working in real time and
adapting to the situation by making a last-minute decision
based on current activity and operational status.Working
synergistically, WMS and WCS can resolve these issues and
maximize efficiency for companies that rely on the effective
operation of their warehouse or distribution center.[24]
Logistics outsourcing[ edit]
Logistics outsourcing involves a relationship between a
company and an LSP (logistic service provider), which,
compared with basic logistics services, has more customized
offerings, encompasses a broad number of service activities, is
characterized by a long-term orientation, and thus has a
strategic nature.[25]
Outsourcing does not have to be complete externalization to an
LSP, but can also be partial:
A single contract for supplying a specific service on occasion
Creation of a spin-off
Creation of a joint venture

Third-party logistics (3PL) involves using external organizations

to execute logistics activities that have traditionally been
performed within an organization itself.[26] According to this
definition, third-party logistics includes any form of outsourcing
of logistics activities previously performed in house. For
example, if a company with its own warehousing facilities
decides to employ external transportation, this would be
an example of third-party logistics. Logistics is an
emerging business area in many countries.
The concept of a fourth-party logistics (4PL) provider was first
defined by Andersen Consulting (now Accenture) as an
integrator that assembles the resources, planning capabilities,
and technology of its own organization and other organizations
to design, build, and run comprehensive supply chain solutions.
Whereas a third-party logistics {3PL) service provider targets a
single function, a 4PL targets management of the entire
process. Some have described a 4PL as a general contractor
that manages other 3Pls, truckers, forwarders, custom house
agents, and others, essentially taking responsibility of a
complete process for the customer.
Horizontal alliances between logistics service providers[edit]
Horizontal business alliances often occur between logistics
service providers, i.e., the cooperation between two or more
logistics companies that are potentially competing.[27] In a
horizontal alliance, these partners can benefit twofold. On one
hand, they can " resources which are directly exploitable". In
this example extending common transportation networks, their
warehouse infrastructure and the ability to provide more
complex service packages can be achieved by combining
resources. On the other hand, partners can "access intangible
resources, which are not directly exploitable". This typically
.•

includes know-how and information and, in

turn, innovation. [27]
Logistics automation [edit]
Main article: Logistics automation
Automated storage and retrieval system used by the U.S.
military, also used by business in conjunction with manual
picking.
Logistics automation is the application of computer software
or automated machinery to improve the efficiency of logistics
operations. Typically this refers to operations within a
warehouse or distribution center with broader tasks
undertaken by supply chain engineering systems and enterprise
resource planning systems.
Industrial machinery can typically identify products through
either barcode or RFID technologies. Information in traditional
bar codes is stored as a sequence of black and white bars
varying in width, which when read by laser is translated into a
digital sequence, which according to fixed rules can be
converted into a decimal number or other data. Sometimes
information in a bar code can be transmitted through radio
frequency, more typically radio transmission is used in RFID
tags. An RFID tag is card containing a memory chip and an
antenna which transmits signals to a reader. RFID may be found
on merchandise, animals, vehicles and people as well.

Logistics: profession and organizations[edit]

A logistician is a professional logistics practitioner.
Professional logisticians are often certified by professional
associations. One can either work in a pure logistics
company, such as a shipping line, airport, or freight
forwarder, or within the logistics department of a company .
However, as mentioned above, logistics is a broad field,
encompassing procurement, production, distribution, and
disposal activities. Hence, career perspectives are broad as
well. A new trend in the industry are the 4PL, or fourth-party
logistics, firms, consulting companies offering logistics
services.
Some universities and academic institutions train students as
logisticians, offering undergraduate and postgraduate
programs. A university with a primary focus on logistics is
Kuhne Logistics University in Hamburg, Germany. It is non
profit and supported by Kuhne-Foundation of the logistics
entrepreneur Klaus Michael Kuhne.
The Chartered Institute of Logistics and Transport {CILT),
established in the United Kingdom in 1919, received a Royal
Charter in 1926. The Chartered Institute is one of the
professional bodies or institutions for the logistics and
transport sectors that offers professional qualifications or
degrees in logistics management. CILT programs can be
studied at centers around UK, some of which also offer distance
·.
learning options.[28] The institute also have overseas branches
namely The Chartered Institute of Logistics & Transport
Australia (CILTA)[29] in Australia and Chartered Institute of
Logistics and Transport in Hong Kong (CILTHK)[30] in Hong
Kong. In the UK, Logistics Management programs are
conducted by many universities and professional bodies such as
CILT. These programs are generally offered at the postgraduate
level.
The Global Institute of Logistics[31] established in New York
in 2003 is a Think tank for the profession and is primarily
concerned with intercontinental maritime logistics. It is
particularly concerned with container logistics and the role of
the seaport authority in the maritime logistics chain. The
Institute has developed a community of over 8,500
logisticians who act a global knowledge network committed to
supporting the Institute's mission of contributing to the
resolution of legacy challenges in global logistics. Challenges
associated with the traditional approach of managing single
transport modes, modal systems as stand-alone operations.
The key to overcoming these legacy challenges is for the
individual stakeholder groups within the logistics chain to
actively engage with each other. The promotion of this
agenda is the Institute's work.
The International Association of Public Health Logisticians
(IAPHL)[32] is a professional network that promotes the
professional development of supply chain managers and
others working in the field of public health logistics and
commodity security, with particular focus on developing
countries. The association supports logisticians worldwide by
providing a
• ..
community of practice, where members can network, exchange
ideas, and improve their professional skills.

Logistics museums[edit]

There are many museums in the world which cover various

aspects of practical logistics. These include museums of
transportation, customs, packing, and industry-based logistics.
However, only the following museums are fully dedicated to
logistics:

General logistics:

Logistics Museum (Saint Petersburg, Russia)

[33] Museum of Logistics (Tokyo, Japan)[34]

Beijing Wuzi University Logistics Museum (Beijing,

China) Military logistics:

Royal Logistic Corps Museum (Surrey, England, United

Kingdom)

The Canadian Forces Logistics Museum (Montreal, Quebec,

Canada)[35]

Museum of the Army Logistics (Hanoi, Vietnam)

See also[edit]

Physical inventory

Document automation in supply chain management and

logistics
.. -

Automated identification and data capture

Storage management system

Inventory management software

Freight claim

Sales territory
Integrated Service Provider
Performa nee-based
logistics Logistics
Performance Index