DEPARTMENT; Transport logistics and traffic safety Course; 3 Group; 160A2 TEACHER; Elmaddin Salayev TELEBE. Məmmədova Çiçək Subject.Logistics operations,logistica and intermodal transport What are logistics operations? Logistics operations is an essential part of the supply chain and refers to the process of moving finished goods, starting from the manufacturer and moving to the end user. The entire inbound and outbound logistics process consists of managing ecommerce inventory, and fulfilling and shipping orders. Inventory management, warehousing, and order fulfillment all play a key role in optimizing ecommerce logistics. While larger companies may have dedicated logistics directors to manage logistics operations, smaller business owners typically handle it themselves. Why are logistics operations so important for ecommerce? Depending on the systems and processes you have in place, your ecommerce supply chain can make or break your business. Since ecommerce logistics has many moving parts, inventory management becomes a challenge without proper ways to track ecommerce inventory throughout the process
You can end up with too much product, which can
lead to deadstock and high carrying costs, or have too little, which can cause stockouts and shipping delays. Without streamlined logistics operations, you will end up with several loose ends that impact both your profit margins and customer satisfaction. Therefore, having a cost-effective, streamlined logistics operations process in place will help to keep logistics costs down, reduce risk and human error, Logistics operations: 4 key and keep your customers happy. processes Logistics operations are made up of a series of processes that work together to optimize the supply chain , from delivering goods from the manufacturer to the seller, all the way to last-mile delivery. 1. Suppliers and manufacturers Obtaining raw materials is the first part of supply chain management, which is taken care of by the manufacturer or supplier. A dependable manufacturer is responsible for tracking the work-in-process inventory phase (i.e., the movement of raw materials being processed into finished goods) to make sure you get a high-quality, sellable product on time and at the most affordable price. Choosing the right supplier is important; manufacturers that are inconsistent in delivering a quality product and/or shipping inventory to the seller can slow down operations from the very start. 2. Distributed fulfillment centers Fulfillment centers are warehouses that hold inventory close to the end customer, so each order is picked, packed, and shipped as soon as it’s placed to ensure the fastest delivery possible. Many direct-to-consumer (DTC) brands depend on a third-party logistics (3PL) company that performs ecommerce fulfillment services. That way, they don’t have to worry about fulfilling and shipping orders themselves.
Another key benefit of partnering with a 3PL is the ability to
distribute inventory across logistics centers. For instance, ShipBob is a retail fulfillment company that offers a robust international fulfillment center network that allows merchants to split inventory across locations to be closer to their customers. This reduces shipping costs and speeds up delivery. 3. Warehousing Warehousing is a key stage in the logistics operations process that involves storing and managing physical goods before they are sold. There are several key parts to warehouse management, including the safety and security of stored goods, inventory control processes that help to optimize inventory storage, and much more. These crucial operational warehouse management systems help to track where items are located, when they arrived, and how long they have been there. 4. Shipping Orders that are shipped to customers accurately and quickly speaks to how well you run your logistics operations. Although the execution of shipping orders to their final destination is ultimately up to the carrier, you can choose which shipping methods to offer your customers (e.g., standard via ground, expedited shipping via air, etc) and to which locations (domestic vs. international shipping). You also have the option to ship orders in-house, most often which involves standing in line at the post office. Otherwise, you can outsource fulfillment to a company that has access to discounted shipping rates from major carriers and can take care of the shipping process (and all other logistics operations) for you. 4 logistics operations that optimize your supply chain management There are several ways to improve logistics operations, and you don’t have to go at it alone. Many ecommerce businesses rely on a logistics service provider like ShipBob to help optimize their supply chain, from inventory management to shipping orders. Intermodal transport: efficient transport means management Globalisation has led to an increasing and more complex global demand for goods and services. The need for more efficient, economic and sustainable logistics flows is leading to a major boom in intermodal transport, an option that more and more companies are opting for to transport their goods around the world. What is intermodal transport and what does it consist of? Intermodal transport is the transport of goods in a single unit or vehicle using two or more means of transport to move the load from its origin to its destination where it is not handled when moved from one vehicle to another. In this type of transport, goods are grouped into sealed cargo transport units or CTUs (containers, mobile boxes or semi- trailers) to reduce cargo handling, therefore preventing any loss, breakage or theft. These units also facilitate their transfer or transhipment to the various means of transport (by road, rail, by sea, etc.) used to reach their final destination. What is intermodal transport and what does it consist of?
Intermodal transport is the transport of goods
in a single unit or vehicle using two or more means of transport to move the load from its origin to its destination where it is not handled when moved from one vehicle to another. In this type of transport, goods are grouped into sealed cargo transport units or CTUs (containers, mobile boxes or semi-trailers) to reduce cargo handling, therefore preventing any loss, breakage or theft. These units also facilitate their transfer or transhipment to the various means of transport (by road, rail, by sea, etc.) used to reach their final destination. Intermodal transportation means moving large-sized goods in the same steel-based containers through two or more modes of transport. It’s a typical way of moving goods in modern times. Intermodal transfer may involve truck, rail, ship, and then truck again. Basically, instead of shifting goods from one vehicle to the next in their journey, intermodal transport handles these special standardized containers instead. This process brings many benefits, such as increased safety for the goods and faster delivery. This mode of transportation system dates back to 18th-century Britain. The British used it to move coal stored in containers over their canal network. But it wasn’t until the 1960s that intermodal become the preferred choice for sea transport. Logistics companies and international organizations made efforts to integrate the other modes of transport through intermodalism. Later, containerization and standardizing international container sizes made intermodal transport even more lucrative by enabling easy handling between modal systems. Currently, intermodal transport is the dominant mode for the global supply chain and logistics. How Does Intermodal Transport Work? At the start of the intermodal transport process, an empty truck arrives at the consignee point. The shipper or transporter in charge loads the goods onto the container at the back of the truck. Most likely, nobody will handle these goods from this point until they reach the destination. The truck travels to a rail yard through the road network. Here, the logistics company transfers the containers onto a train. That train might transfer the container to a railroad station in the destination city, or it might go to a port for shipping. The shipping company moves these containers through the maritime network to the destination port. People unload the container and transfer it to another truck. Or they may put it on another train for more inland transport and then to the truck. This truck may deliver the container to the destination modal station. The trucks used to transfer these goods are called drayage, a service that only certain companies provide. What happens next? The logistics company now removes the goods from the container. Now, the container is empty and ready for a new load. Finally, the logistics company carries out the last-mile delivery to the end user. Why do companies use intermodal transport? It allows a logistics company to benefit from the advantages of each means of transport. Using rail service is often cheaper for inland transport. Shipping allows faster international travel over long distances. And trucks are essential for the last mile of local pickups and deliveries. Pros and Cons of Using Intermodal Transport Intermodal transport has become the backbone of the trade and logistics industry because it offers so many benefits. Unfortunately, because of the long distance, some problems and situations are unavoidable. Here are some pros and cons of using intermodal transport. Pros • Rapid service: By using intermodal transport, a company can reduce delivery times. The business can use the fastest mode of transport for long distances. Using containers also allows an efficient transfer of goods from one mode of transport to another. Reduced loading and unloading times also contribute to faster delivery. Choosing railway mode is Lower costs: Shippers also a good way to reduce enjoy lower prices, along costs, as it consumes less with low handling costs. fuel while traveling a considerable distance.
These prices are also more
predictable. These prices are also more predictable. Thus, the entire intermodal transfer is cheaper. • Increased capacity: Because most industries use intermodal transfer, it’s relatively easy to achieve economies of scale and ensure increased capacity. Companies can also use reverse logistics to fill up large containers. • Safety: The containers store the goods throughout the journey. They also don’t need handling during shifting between the modes of transport. These containers are like a warehouse and limit the risk of damage to the goods. Thus, nobody has access to the goods while they’re in transit. Using containers also reduces the chances of theft. Also, the container is also always under supervision, unlike an over-the-road shipment, thus providing the highest security for goods.