Introduction

Litro Gas Lanka has dotted the sri Lankan landscape since the late 1800’s. The
introduction of gas exposition in 1872 was the first step in this strategic direction,
while the household and industrial use of LPG has a history spanning 32 years.
Litro Gas Lanka Limited (LGLL) was formed on the 15th of November 2010 with
the Company’s ownership changing hands from the global multinational Royal
Dutch Shell. The change foreshadowed the birth of the brand Litro Gas.
Logistics is known as overall process of managing how resources are acquired,
stored, and transported to their final destination. There are many different logistics
activities or functions of logistics which are used by a company .

From the above chart we can understand there are many Logistics activities which
have to be taken care of. 5 such logistics functions of Litro Gas Lanka Ltd are
illustrated in this assignment.
Index
➢ Customer Service
➢ Transportation Management
➢ Warehousing Management
➢ Reverse Logistics
➢ Facility Location Decisions
Transportation Management
Transportation is the movement of people, animals and goods from one location
to another over time and space, whereas transportation management refers to
the management of transportation activities by a particular organization.
Transportation represents the most costly logistics activity in many organizations.
Litro Gas is the largest importer and supplier of Liquefied Petroleum Gas(LPG) in
Sri Lanka.They operate the country’s only import freight terminal and filling
facility which has the capacity to provide to the LPG needs of the entire Island.
The Company is the oldest gas supplier in the country and has complete coverage
through an island wide network.
In Litro gas Lanka the first stage of transportation chain is the primary storage,
where the product is received from the supplier. Litro Gas Terminal Lanka (Pvt)
Limited situated in Kerawalapitiya has their primary storage.
From the primary storage, the product is transported either to a bulk customer or
to the cylinder filling plant at Kerawalapitiya itself. Empty cylinders are also
receives to kerawalapitiya.
Then distributors transport the filled cylinders to their regional distribution yards.
The cylinders will redistribute to the point of sale from the yard using appropriate
vehicles. The customers are served through distributers and a network of over
6000 point of sales island wide. The customers may either pick up their Litro Gas
cylinder from the point of sale or they can use home delivery service if it available
at customer’s location.
Litro Gas delivers to large scale industrial and bulk customers using road tankers
of varying sizes.
This distribution chain ensures that the supply of Liquefied petroleum gas is in a
good and through the way, with no waste of time, money or energy and safely
delivered to all the Customers across the island.
Reverse Logistics
The products that can be returned for various reasons is called reverse logistics. It
could be because of product recalls, product damage, lack of demand, customer
dissatisfaction or some other reasons. Normally logistics flow is from origin to
destination whereas the revers logistics flow is from destination to origin. In the
case of revers logistics, the resource goes at least one step back in the supply
chain.
In Litro Gas Lanka Ltd reverse logistics is used for various reasons. The largest
marketing section in the LP Gas industry in Sri Lanka is the Domestic household
market. The customers can request a cylinder to be delivered home or they can
pick up the litro gas cylinder from a point of sale. The customers may take their
empty cylinders to a litro gas point of sale where it is exchanged for a new one for
the current price.
The industrial customers such as hotels, restaurant, fast food chains and other
small scale industries can be served through a single large cylinder or a cylinder
bank which is several cylinders connected together with a manifold. These large
cylinders or cylinder bank can be exchanged.
Reverse logistics is more than just returns management, it is activities related to
returns avoidance, reparations, disposal and all other reverse flow issues.
Kerawalapitiya receives empty cylinders which are visually checked for wear,
damage and requalification. If necessary, the cylinders are re-qualified, repaired
or disposed as per the company safety standards.
compressed gas cylinders are made according to a reusable packaging system.
Therefor requalified and the cylinders which are need to be repair, they can be
reusable. The challenges associated with reverse logistics can be complicated by
the fact that retuned products often move in small quantities and may move out
from the distribution point to the Litro Gas Lanka company.
Warehousing Management
Warehouse management is a processes that related to maintaining and
controlling a business’ warehouse. Warehouse is the place that the stock can be
stored for a particular period of time. Types of warehouses are storage
warehouses, distribution centers , retail warehouses, cold storage warehouses,
and flex space. As a place for storage, the warehouse has to be secure, suitable,
and as spacious as possible, according to the owner’s resources.
Litro Gas Lanka Limited engages in importing, storing, filling, marketing, and
selling liquefied petroleum gas (LPG) in Sri Lanka. The LPG Storage Terminal was
re-named Litro Gas Terminal Lanka (Private) Limited (LGTLL). This investment
consists of four spherical shaped above ground tanks which have the capacity to
store up to 2000 metric tons(mt) of LPG each in Kerawalapitiya and 3000 mt
import and storage terminal in Hambanthota, upgraded LPG tanker fleet and a
modern and more suitable LPG bottle Filling Plant for the use at the present time.
This tanker fleet known as their primary storage. LGTLL offers import and storage
facilities to it’s exclusive LPG Marketer in Sri Lanka.
From the primary storage the product is transported either to bulk customer or to
the filling plants itself. Once the cylinders are filled, distributors transport them to
the distribution yards from Kerawalapitiya or Hambanthota filling plants. LGTLL
Warehouses usually located in industrial districts or zones. Distribution yards are
stocked with products to redistribute to the point of sale. Retail warehouses
displayed cylinders for the home trade and commercial trade, such as hotels,
restaurant and other small scale industries. Distribution yards allows us to rapidly
deliver cylinders to the customer, even on short notice.
Reverse logistics is another type of warehousing. The term refers to items that are
going from the end user back to the distributor or manufacturer. Warehouse is
the foundation of the supply network.
Customer Service
Customer service is making sure that the right person receives the right product
at the right place at the right time in the right condition and at the right cost. It
can be defined as providing of service to customers before, during and after a
purchase. Customer service can be excellent competitive weapon and it is more
difficult for competitors to imitate than other marketing mix variables such as
price and promotions. From the point of view of an overall customer service plays
an important role in an organization's ability to generate income and revenue.
The largest marketing segment in the LP Gas industry in Sri Lanka is the Domestic
household market. A neighborhood retailors normally services customers at each
locality. Customers may receive the cylinders through the home delivery service
or they can take their cylinder to the point of sale and exchange it for a new one
at the current location price. In order to save costs for the customers, Litro Gas
Lanka Limited owns the storage facilities at most customer sites. Empty cylinder
may transport to the supplier. If necessary, the cylinders may dispose as per
safety standards.
LGTLL always willing to give different customer valve supposition for different
customer based on their size, current usage, the type of business, requirement
and possibility. Litro Gas Lanka customer service management process is helping
to add valve for both customer and the company in the short and long term. After
sales service, dependable technical advices and discussions or installation of LP
Gas supply systems are provided as value additions to the commercial customer.
The Customer is supplied with quality product and cylinders and maintenance and
checks are carried out to make sure to keep that premise all the time. To ensure
that LPG system is a good and safe condition the annual safety audits will be
carried out. Not only that but also training for the customers’ staff can also be
arranged on request. In order to save costs for the customers, Litro Gas Lanka
Limited owns the storage facilities at most customer sites.
Litro Gas Lanka Limited has well trained competent staff to handle customer
inquiries of different natures.
Facility Location Decisions
The meaning of ‘Facility location decisions’ is making right decisions on the
location of relevant warehousing and production facilities. The location should
have a safe environment for the production and warehousing, minimum distances
from each demand point to its nearest facility, minimum costs of the facilities,
etc. Facility location decisions are increasingly important as the structure of
logistics systems is altered due to the impacts of multinational trade agreements.
Choosing the right warehouse location can make all the difference in how
effective, efficient, and profitable a company is.
Litro Gas Lanka safety is an important base in the Company’s strategy. They are
concerned about their Customers, their People, their Contractors and the
Environment. local environmental factors such as weather conditions and risk of
exposure to natural disasters should also be considered. The hazards commonly
associated with LP Gas are fire and explosion. Since uncontrolled releases of LP
Gas can have serious issue. When the location has a minimum distance from the
supplier to customer, it will be cost effective and time affective for both company
and the customer. To make a profitable company logistics function of facility
location decision was doing a major task.
The LGLL Company is the oldest gas supplier in the country and complete
coverage through an island wide network.