International

Logistics
Critical Elements of Logistics System

 Nature of Product
 Product should reach on time and intact
 Low volume and high value products – By Air
 High volume and low value products – By Sea
 State and Volume of product affects the cost
 Perishable and non-perishable

 Location of Manufacturing Plant

 Located either close to the source of raw material
or close to the markets
 Government subsidies (SEZs)
 EOU located near port or airport
Critical Elements of Logistics System

 Availability of Infrastructure
 Includes roads, railways, air transport, inland
waterways, efficient telecommunication, and ports
with capability of handling cargo
 Warehousing and material handling facilities

 Location of Warehouse
 Just in time concept used to cut down cost
 Raw-materials, semi-finished goods, finished
goods, capital goods and spare parts
Critical Elements of Logistics System

 Dealers and Distribution networks

 It is a link between manufacturer and customer
 Zero-level, One-level, Two-level

 Government Policies
 Policies related to sales tax, excise duty, octrai
duty, motor vehicle act, etc
Benefits of an efficient Logistics System

 Increased Operational Efficiency

 Optimum utilization of resources by delivering right
quantity at right place at right time

 Channelization of Resources
 Availability of vans, their routes, and profitability of
each route

 Improved Customer Service

 As production department needs goods on time and
purchase and planning department need to plan the
same and sale and marketing department needs to
check the demand
 On-time delivery without mistakes, defects and
breakages
Benefits of an efficient Logistics System

 Inventory Control
 Timely delivery and quantity ordered
 No cost overruns
 No overstocking and understocking
Latest trends in Logistics Operations

 Door to door Logistics

 Outbound Logistics

 Inbound Logistics

 Fourth Party Logistics

Containerization

 It is a shipping system based on cargo-

carrying containers (size upto 48 ft long), that
can be easily interchanged between trucks,
trains and ships without re-handling the
contents.
Container Leasing Practices

 One-way lease

 Round-trip lease

 Short lease

 Long lease

 Master lease
Inland Container Depots (ICDs)

 Large enclosed/secure area where cargo-

carrying containers are stored and this area is
connected to seaports by rail or road or both.

 Duties
 Gate-in check, Gate-out check, Documentation,
Reporting, Repair & Maintenance, Storage, Dispatch
and some other miscellaneous duties.