ip and then upon arrival at destination, unloading the:container from the ship and reloading it on the fruck was very high, Thus, RO-RO.-came as a new concept of reducing the cost, 7 aoe ey E 3, The cost of lifting acontainer from-a truck and toading onto a shi 4, In this method, the trucks containing the containers are directly driven iy inside a huge ship (ferry). The ship caries the consignment from origin, 5. In short, the trucks are “rolled on” into ‘the ship at the origin and | “rolled off” from the ship after reaching the destination port. ¢ | 6 The RO-RO vessels (ships) have built in ramps (platforms) which hel in “rolling on” and “rolling off". | 7. This technique helps to reduce the cost of loading and unloading. There | 4s no need of loading and unloading the cargo separately, directly the | truck gets in the ship and gets out on its wheels. 8. Itis a very convenient and time saving technique. Example: Konkan Railways RO-RO service. [12.4 LASH (LIGHTER ABOARD SHIP a 1. LASH is a method used to carry the cargo from shallow water ports to , ij i ted in deep water. ships/vessels which are loca : As all the ports may not have deep water, the concept of LASH is used 1. to load the cargo on the vessel h th method, a ship/vessel stays in the deep water away from the in ts “ shallow water port. barges (a kind of boat). orts are loaded on the-barg 1 . bad = shallows me cargo from shallow ports to the ship/vesse ese barges cary ‘ — located in deep water. y #1. RO-RO is a type of shipping vessel. 2. Due to problems in loadi ding and unloadi RO was introduced. ading of goods, the concept of RLogins = (4 ABC_V/S_ MBC SABE MBC : 1. Cost of individual activities is 1. Cost “of each mission is measured after the actual estimated _ well in advance. performance. Hence, ABC is Hence, MBC is proactive in | reactive in nature. nature. 2. Objective is to improve the | 2. Objective is to improve current | performance next. time by performance by having proper _| learning from last. performance. planning in advance. 3. ABC is analytic i.e. it analyses | 3. MBC is a Planning tool-as it=| Present activities for - a formulates“ plans for budgetary — Particular period. control of each mission/output. 4. Deals with ‘cost related to |4. - Deals with cost related to whole individual activities. mission. 5. _ABCis independent in nature. _[5. MBC is dependent on ABC. 6. ABC is a Micro Concept. 6. MBC is a Macro Concept. 7. It is Time Consuming. 7. Itis comparatively less Time Consuming.7.2. PRINCIPLES OF MATERIAL HANDLING: Handling Institute, USA’. These are as follows: () Planning Principle:{The material handling system should be (2) @) @) (5) (6) 7) ~~* © ulspatched, Ten material handling principles are given by ‘Material designed after analyzing needs of the Organization) [The objectives of the system should be clearly identified in advance. { Standardization Principle: [There should be standardization of material handling methods, equipments and_ controls, Standard operating procedures should be formulated, Work Principle:\ Minimization of material handling work without sacrificing level of service.) Ergonomic Principle: Exgonomics is the science of making the movements human friendly and designing machines in a way which increase productivity) Material handling methods and equipment should be human friendly. Unit Load Principle: The shipments should be converted in uniform unit load sizes. | e sizes of cartons or packages should be uniform {which makes it easier to handle them] Space Utilization Principle: {Available space of the facilit aaa should be used to optimal capacity. we pb: All operations or activities related t 8 Le. receiving, inspection, storage, retrieva Packaging, unitizing, loadin, : Converted in a well defined an unloading etc. should b0 oy are desired sos sization. irongate’ re co tregation, cot ad nformation flow. aE raises ——— Gonceme’ ing_goo ned at seine wade & fox (ie. 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JO SUOIssWA at jor AY Spo, pebome aes ree yonu 40} paureig aq oF : 3 motu oan P88 9, 22 gueId uoponpo!d NEY pue siso 2!Ng bron, ee amount of Bro ait Clover to nd user as uc eer Majority of iar to ttion units nek user: Ts hi eing brow jow costs’ and high, ove Teali labour cht closer to igh leva} elited thi and trans the at t sportation costs, roduction el A P Plants are of quality, fey can maintain the com, ff e production closer located Tega to o 23 of shorter lead times, orice end user shore or nearby “heer their focus on Large Yocum Planni results in femee ean the esses for Tran, Ing Of logistics owe, Peston ‘sportati : lon: Nowadays, mor. 12 fe and m to reduc i ore shi eae © Operational costs ee companies invest per unit. - In general, larger the vessel te Le Fotis on Orban essel, the lower is There is an ongoing trend in th aware of ou e society i industry. is ee apd Somited ie bie ee ee tee eee nitrogen dioxi e blamed for much of the se Ot Ae Be Nonomert a Gilde ete is eae ees of carbon and : nsport solutions. The recent trend is eae = oe in by airwat eos ys and roadways and focus on railwai ions a nee ys for environmental Continue ba ne tenronsse IT Solutions for Logistics: javil i istic ; ng full control over entire logistics chain requires reliable IT solutions. As the supply chain becomes more complex and dynamic, there is a greater need for advanced information technology solutions to facilitate better communication, co — ordination, traceability and transparency among supply chain members. Growing Trend of E - Commerce: There is a tremendous growth in e~ commerc decades. More and more consumers are buying stuff online instead of in as they have to visiting physical stores. This affects the supply chai pave continuously find new ways of providing last mile delivery services i.e. transporting the goods to private persons OF distribution points nearby. art of the o Globalisation: ; International and emerging markets have become 2 poles Ya overall business growth ® companies ‘Internation? This enhance: ¢ industry in the past few 5 the scopeportaion, 92” Principles of Transportation Economies Economies Of Scale of Distance onomies of Scale: Economies of scale is a principle which states that transportation cost per unit of weight decreases when the size of the sl Ehe /ahipt ent” cost Per_unit of weight decreases when the size of he shipment increases. This is possibte mainly because fixed cost involved in moving the load gets spread over large number of units thereby reducing cost per unit. Fixed cost includes those expenses that do not vary with the volume of shipment. For Example, the fixed cost of delivering 10kq of goods and 1000kg of goods will be same. Hence when the size of shipment increases, the fixed cost gets spread over a large shipment reducing the cost per unit. Hence, in order to gain benefits of lesser transportation costs, managers try to combine smaller items and then, deliver them rather than delivering half trucks loads. onomies of Distance: Economies of distance is a principle which states that transportation _ cost per unit init of distance decreases as distance increases, For Example : A shipment of 800 kilometres will be less costly than two shipments of {the same combined weight) of 400 kilometres. This principle is known as the tapering principle since rates taper (reduce) with increasing distance. This is mainly because the fixed cost incurred to load and. unload the vehicle gets spread over per unit of distance. Thus, longer distances allow the fixed cost to be spread over more kilometres resulting in lowering overall per kilometres charges.