What is port?

A port is a facility at the end of an ocean, river, or lake to receive ships and transfer cargo and
passengers into it. Ports usually have specially designed equipment for loading and unloading
docked ships.

Port is according by law, port is a place consisting of land and waters with certain boundaries
as a place of government activities and corporate activities used as a place for ships to dock,
up and down passengers, and loading and unloading goods, in the form of terminals and ship
berths equipped with shipping safety and security facilities and port supporting activities as
well as a place for intra and intermodal transportation movements.

What is logistic?

Logistics comes from the Greek, Logos, which means ratio, calculation, conversation, reason
and also oration. Logistics is a process that includes planning, implementation and
supervision of a movement process in the form of goods, services, energy and other resources
from one place to another.

Logistics can also be interpreted as the art of sending goods carried out in a modern way,
where there are stages and functions that are useful in order to achieve certain goals.

Logistics is about the effective transportation of goods (delivery) by ship from the port of
origin to the port of destination as a maritime logistics system. Contextually, transportation
logistics is an effort to manage and provide transportation facilities and infrastructure for the
smooth distribution of logistics.

Logistical Benefits

In business, it is not only the quality of goods that is important to pay attention to, but also
the logistics process. Because if a company's delivery service is not as good as the quality of
its goods, customer needs cannot be met and business operations will be disrupted.

Even though it looks like just a process of moving goods, it turns out its effects can affect
many aspects of a business. The benefits of logistics include:
1. Product Storage

Becomes a temporary storage warehouse for production results before distribution. With this
product storage, companies can produce products in large quantities without worrying about
storage space.

2. Fulfill Community Needs

The next benefit is that the presence of this provision certainly meets the needs of a diverse
and heterogeneous community. The community can distribute new goods, ranging from
technology, food supplies, and others.

3. Quality of Goods Delivery is More Guaranteed

If the goods you want to send or vice versa and via logistics. So the provider will guarantee
maintenance and storage until the customer receives the goods.

4. Distribution becomes effective

Delivery of goods will become more regular and effective because it is integrated online. You
don't need to worry, because the goods will arrive according to the provisions in a short time.

Logistics success by a company can increase efficiency, lower costs, increase production.
Then you can control inventory better, increase customer and supplier satisfaction, and
improve customer experience.

Logistic’s Purposes

It is closely related to the supply chain, along with the objectives of logistics procurement and
the ideal scenario that will be achieved if a company's logistics management runs well.

1. Increase Efficiency

The aim of increasing efficiency in logistics and transportation processes must always be a
top priority for every logistics company. One way that service providers can do this is by
collaborating with transportation provider companies. Because with it, the processes that
occur in the warehouse, layout and workflow can improve significantly.
2. Process quickly to obtain customer response

Customer satisfaction is the reason why this goal must be achieved by logistics companies. In
order to get a positive response from customers, logistics companies must also respond
quickly.

3. Reduce the occurrence of unexpected events

Many unexpected events may occur during the process of producing goods and sending
goods, such as goods arriving damaged, delays in receiving customer orders, or events such
as the wrong order being received. If this is not anticipated, it will only waste time and
resources.

4. Reduce transportation costs

The biggest costs in the logistics process are transportation costs. Transportation costs are
very influential according to the type of product sent, the size of the shipment, and the
distance traveled. Generally, the larger the shipment and the longer the distance traveled, the
lower the transportation costs per unit will be.

5. Improve Quality

As a service provider, if there is a defective product or if a service promise is not kept.

Because apart from the non-refundability of shipping costs incurred, it will be difficult to
restore customer trust. But here is the challenge that logistics companies must face.
Especially if you have to send goods all the time and across distant geographic areas.

Logistic’s Document

Before sending goods (shipping) using an expeditionary service, you need to prepare a
number of things to expedite the process. Especially for shipping with large loads by sea or
air cargo.

In this case, shipping documents are important things that you should take care of from the
start, especially since there are not a few of them. Not to mention that the data that will be
entered must be valid.
By knowing the documents needed for shipping, it will be easier for you to monitor the
delivery of goods and prepare evidence if there is a problem on the way. So what documents
should you know and prepare before starting shipping?

1. Shipping Instructions (SI)

Shipping Instruction (SI) is a shipping document agreed upon by the First Party and the
Second Party for the delivery of goods. The First Party in question is the seller of goods
(shipper) which can be a buyer of goods or a freight forwarder (logistics service company).

While the Second Parties are companies that provide transportation fleets for shipping, for
example shipping companies, trucking flights, and logistics companies that become freight
forwarders.

Shipping Instructions will be given to the Second Party who will later receive the data and
cargo stated in the letter. Some of them are the shipper's name, consignee's name, loading
location and destination, notify address, name and type of goods, total weight and volume,
delivery date, and commercial invoice.

2. Order of Loading

As the name suggests, this shipping document is issued by the expedition service company to
the First Party or seller. The data included in the Loading Order are the type of cargo, the
purchase of the cargo, the name and telephone number of the driver in charge of transporting
the cargo.

3. Expeditionary Certificate

The expedition service company will provide a travel document to the trucking company that
wants to carry the container. This document will be used as proof that the container has been
completed

have permission to go to the destination (for example the port) for the process of loading
luggage.

The Expedition Travel Letter usually contains information such as the type of goods, the
signature of the seller or sender of the goods, the driver on duty, the driver, and the
warehouse clerk.
If there is a freight forwarding company that manages its own trucking services, then the
Expedition Travel Certificate which is a shipping document must still exist, it's just that it is
internal between departments.

4. Factory Road Certificate

The seller, who acts as a company and goods sender, issues a factory waybill which is handed
over to the expedition or trucking service.

The contents of this document are almost the same as the Expedition Pass, only there are
differences in the party issuing the Factory Pass. If the expedition waybill is issued by an
expedition service, then the factory waybill is usually issued by the seller or sender of the
goods.

5. Release Order (RO)

Next there is a Release Order (RO), which is a shipping document that contains an order to
release container assets to the owner or buyer. A Release Order usually takes the form of a
request for permission to pick up a container by or on behalf of a particular interested party.

Release Orders, like other shipping documents, contain a number of important pieces of
information. These include the barcode scanned at the depot for container selection, the RO
receipt number, the depot (where the empty container is located), the origin and destination of
the container, the transportation that delivers the goods from the destination or origin, the
number and type of containers.

6. Bill of Lading (B/L)

Known as consonoment in Indonesian, the Bill of Lading (B/L) is a transportation agreement

made by the shipper (sender) with the consignee (recipient) when using a carrier. This
shipping document contains a number of information such as the sender's name, ship name,
cargo data, loading and unloading place, payment method, freight details, consignee name,
original B/L amount, and signature date.

7. Equipment Interchange Receipt (EIR)

Next there is the Equipment Interchange Receipt (EIR), a shipping document issued by
shipping depots to expedition and trucking service companies. The EIR is issued based on a
survey or inspection of the container carrying the goods. Then, the shipping depot submits
this document to the carrier when it is about to load and empty the container.

Equipment Interchange Receipts contain various information, one of which is damage found
to the container to make it easier to identify the responsible party. This document is divided
into two types, namely the EIR port of origin and port of destination containing a list of
container numbers, ship and shipping codes, storage positions and stacking positions.

8. Delivery Order (DO)

Delivery Order (DO) is a document that functions as an order for delivery of goods that have
been ordered based on a mutual agreement between the seller (sender) and the buyer
(recipient). This shipping document will later be given to the company warehouse as proof.

There are three main functions of Delivery Order, including:

• As an official statement stating that the purchase of goods from the seller to the buyer is
legal;

• As evidence that clearly details what items are ordered;

• As proof that the buyer has received the goods with the signature stated in the document.

9. Minutes of Handover (BAST)

The final shipping document that should not be missed is the Minutes of Handover (BAST).
The information contained in this document can be in the form of documentation of goods
that have arrived in the hands of the buyer. The parties who sign the BAST are the First Party
as the seller and the Second Party as the buyer.

After all the goods delivery processes are complete, the party receiving the goods must send
back several documents. These include Shipping Instructions, Release Orders, Factory
Waybills, Bills of Lading, and Equipment Interchange Receipts. The process of returning
containers is not much different from shipping, so it won't be a hassle for you who will be the
recipient.