INTERNATIONAL LOGISTICS MGT

TOPIC FOUR: MANAGING

LOGISTICS
PIV

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 Identify different types of logistics management
tasks

• Logistics management tasks, are associated

with all activities being carried out by the
respective logistics company in terms of;
– Planning
– Organizing
– Controlling and
– Leading all personnel to deliver the
expectations of the company and
customers as a whole.
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 identify different types of logistics management
tasks

• Logistics management tasks are categorized

into two broader areas;
– Operational tasks
– Strategic tasks
• Operational tasks are those daily activities
associated with transportation of goods from
the upstream to downstream. These
operational tasks are;

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 identify different types of logistics management
tasks

• Inventory management; where the focus is to

establish the optimum stocks or inventories
required to fulfill the raised customer demand
over a specified duration. This would enable to
reduce the related inventory costs.
• Transportation management; it involves
planning how the required inputs will be
transported from suppliers to the
manufacturers and the shipment of goods from
manufacturer to the customers.
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 identify different types of logistics management
tasks

• Picking and Packaging; The respective picking

unit, is required to collects all required goods or
materials with regard to customer’s specifications,
and ensuring that they are properly packed in the
respective packages for easy and safe shipment.
• Materials handling; Manufactured goods and
delivered materials are supposed to be handled
effectively from one location to another locations
for easy receiving, inspection, issuing and
dispatched. Proper selection of appropriate
handling equipment's is also being carried out as
operational tasks.
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 identify different types of logistics management
tasks

• Clearing of goods from custom; if it is

imported consignment, proper procedures
of clearing goods should be carried
accordingly with regard to TANCIS
• Purchasing Management; proper
acquisition of goods or materials should be
lodged in line with procurement rules and
regulations, and administrative procedures.

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 identify different types of logistics management
tasks

• Strategic tasks focused on ensuring that the

organization would be in operations for long
time accordingly.
– Preparations of logistics strategy such as
transportation strategy, distribution strategy
and marketing strategies respectively.
– Securing of sufficient resources in terms of
financial, physical and human resources to
drive the above established strategies.

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 identify different types of logistics management
tasks

• Consolidation of division within the same

company or group of companies as a
mechanism to reduce total logistics costs.
• Evaluation of new product launches in the
market, selection of the suitable distribution
channels and plans for product promotions.
• Undertaking logistics performance
measurement in the choice of location for
new manufacturing plants and warehouses.
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 Factors to consider in preparation of logistics plan

• Strategic tasks are sometimes related with

logistics management planning. Therefore
important factors for the development of
good logistics plan should be considered.
• Objective of the company i.e short and long term
• Available resources i.e financial, physical and
human resources
• Market trend or demand from the customers
• Competitor’s logistics strategies
• Service level to be offered to the customers.

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 Continue……
• Cost; during plan preparation it is also advised to
determine the overall cost of implementing the
plan. Under this aspect it could be easier for the
organization to measure the adequacy of financial
resource needed to implement the developed plan.
• Research; in order to have a feasible plan which
involves all issues communicated by customers
and other stakeholders, research is a must.
• Proper assumptions; it is also significant to
assume either the plan will succeed or not.

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 Continue…..

• Review; in each stage of planning development, a

very important approach is to undertake review so
as to have a confidence that every inputs has been
incorporated well in the final draft which the
organization is going to rely upon, in the course of
carrying out its logistics duties.

• Furthermore the plan need to be reviewed to

determine the extent is implemented.

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 Global networks for carrires

• Carrier is a company or third party logistics

company providing transportation services in the
respective geographic locality.
• Carrier sometimes own and operating
transportation equipment, trucking company,
railway company, parcel or express company.
• Global network for carriers is a set of integrated
transportation vehicles and systems operated by
carriers worldwide.

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 Global networks for carries

• These companies positioned their offices in

several areas around the world to enhance
provision of most reliable transportation
services to their clients.

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 Types of carriers

• Private carrier; consists of a firm providing its own

transportation service.
– Must own or lease the transport equipment and
provide managerial direction regarding
transportation operations.
– Transportation activity is centered to the primary
business of the firm.
• Common carriers; are the carriers who service the
freight shipping need of the public

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 Types of carriers

• Common carriers are responsible;

– To transport all commodities or specialized
commodities such as steel, household goods
or computers.

– Specifies geographical areas the carrier may

service and indicate if such service is to be on
scheduled or unscheduled basis.

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 Types of carriers
– To publish prices it charge for transportation
service
– To provide adequate transportation services
– To deliver transport service on agreed time
– It’s establishment purpose is to provide
transportation services to the general public

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 Types of carriers

• NVOCC (Non – Vessel Operating common

carrier)
– These are carriers who own no vessels
– But they provides ocean shipping freight-
forwarding services.
– Examples of the services being provided
include;
• consolidations,
• negotiated service rates for inland water carriers.

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 Types of carriers

• Motor carriers; basically perform the function of

shipping goods from the point of origin to the point
of consumption in door to door basis.
– Normally uses the road mode of transport in the
process of taking goods to the point of
destination.
– Motor carrier are flexible because they operate in
all types of roadways.

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 Types of carriers
– Contract carriers; provide transport
service for selected customers
– Contract carrier must receive authorization
from the respective units.
– The contract carrier is for hire that do not serve
general public but rather serves one or limited
number of shippers with whom is under specific
contract.
– The contract contains the following terms
– Rates
– Liability
– Types of service and equipment
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 Determinants for carriers selection

– Transport costs in terms of;

• Rates
• Minimum weight
• Loading and unloading charges
– Transit time; the speed of shipment from one
location to another need to be sought out.
– Reliability; ability of the respective carrier to
offer consistent transportation service
throughout the time.

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 Determinants for carriers selection

– Capability; determine if respective carrier is;

• Capable to provide equipment and facilities
required in shipment operations.
• Has adequate number of competent personnel to
undertake transportation duties effectively.

– Accessibility; determine if the carrier, a company is

looking for, is available all the time.

– Security; select a carrier who is able to provide

service at the highest securable environment.
Means the cargo would be delivered safely.
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 Trade restrictions on international logistics

• Trade restrictions are the barriers imposed by the

Government on the business operations in order to
regulate the level of importation and exportation.
– Focusing on maximizing economic development
• Trade restrictions could be in terms of tariffs and
non tariffs.

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 Trade restrictions on international logistics

• The main reasons for erecting trade restriction in

international logistics are;
– Maximizing government revenues
– Emphasizing provision of quality logistics services
– Emphasizing the growth and development of local
industries
– Strategic or military reasons
– Emphasizing the purchases of domestic products
rather than international products/services

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 Trade restrictions on international logistics

• Tariffs trade barriers are;

– Those duties being levied on the imported
products. And these are classified into;
• Ad valorem taxes: being charged basing on the
value of the products
• Specific duty; charged on the physical
specification of the products.
– Non tariffs barriers to trade; these are non tax
restrictions which are levied on the business
operations.
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 Trade restrictions on international logistics

– Import quotas; limit a certain quantity of imported

goods, while emphasizing the consumption of
domestics products.
– Total ban; restrict total importation or purchases of
certain product from entering the national border.
E.g due to quality problems
– Public procurement policies; application of
selective and discriminatory buying policies on the
partly government and state owned industry.
– Providing subsidies to local firm to give them a
competitive advantages

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 Problems associated with inbound and outbound
logistics

– Inadequate fleets for shipments of the products from

suppliers to customers

– Congestion or traffic load at the delivery point due to

improper arrangement of the receiving points.

– Poor storage center in terms of capacity to accommodate

incoming materials or products

– Late delivery by the appointed suppliers due to capacity

constraints

– Improper materials handling once they have been delivered

and after being turned into finished good.
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 Containerization
• A practice of shipping goods through the
use of standard containers of different
sizes.
• Containerization reduces delays in
transferring materials between different
modes of transport.
• Standard sizes of containers minimize
efforts in transferring goods between
different transport modes.
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 Containerization
• ISO standard containers are widely used in
marine and overland transport.
• Smaller unit load devices are commonly used
to airfreight.
• Containerization is very important in transport
operations due to following reasons;
– Provide more robust packaging of goods
– Speed up handling of larger unit loads at port
– Improve security of cargo through the use of
sealed containers.
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 Containerization
– Improve utilization efficiency of a ship’s
storage spaces
– Provide secure means of shipping small loads
– It reduces the insurance premiums as due to
increase of security.

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 Types of standard ISO
containers
• 20’ General purpose Container
– Suitable for any general cargo
• 40’ General Purpose Container
– Suitable for any general cargo
• 40’ High Cube Container
– Suitable for light, voluminous cargo or cargo that
exceeds normal height dimensions.
• 20’ Open Top Container
– Suitable for overweight cargo or cargo that
exceeds normal dimension
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 Types of standard ISO
containers
• 40’ Open Top Container
– Suitable for overweight cargo or cargo loaded
with a crane.
• Flat Container
– Suitable for heavy loads and over width cargo.
– These are available in both 20’ and 40’ Lengths.
• Plat form container
– Suitable for heavy loads and oversize cargo.
– Available in both 20’ and 40’ lengths.
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 Types of standard ISO
containers
• 40’ Refrigerated container
– Suitable for cargo that needs temperature
control.
– Has a power plug and sometimes a separate
diesel generator for independent power use.
• 40’ high Cube Refrigerated Container
– Especially for cargo that needs temperature
control
– Suitable for voluminous cargo or cargo that is
higher than normal.
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 Types of standard ISO
containers
• 20’ Tank container
– Suitable for liquid storage while in transit.

– Liquid capacity between 21,000-24,000 litres.

– Tanks must be filled to not less than 80% of

their capacity.

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