LOGISTICS MANAGEMENT

Doç. Dr. Bülent SEZEN

What is Logistics?

Logistics is the . . . “process of planning, implementing, and controlling the efficient, effective flow and storage of goods, services, and related information from point of origin to point of consumption for the purpose of conforming to customer requirements.“

Council of Logistics Management

Is it different from SCM?

Not really!

“Supply Chain Management deals with the management of materials, information, and financial flows in a network consisting of suppliers, manufacturers, distributors, and customers.” (Stanford Supply Chain Forum)

So, Logistics and Supply Chain are equivalent terms.

Logistics Functions

Purchasing / Procurement

Inventory Control

Warehousing

Materials Handling

Facility Location / Network Design

Transportation

Customer Service

Order Processing

A List of Approaches in Log. Man.

Just in Time Inventory Vendor Managed Inventory Quick Response Collaborative Planning,

Forecasting, and Replenishment

Outsourcing / 3PLs Cross-docking / Flow

Through Centers

Build to Order SC Visibility Software Internet / EDI Collaborative

Transportation Management

Auctions / Exchanges Merge - In - Transit Partnerships / Alliances

A Sample Logistics Firm: EKOL

Value Added Services

Value added services, such as quality control, labeling, sorting, repacking, etc. can be included in the logistics processes.

Bonded Warehouse(In Turkish: “Antrepo”)

Bonded warehouse is a warehouse in which goods are stored without customs duties being paid until they are removed from the warehouse.

Such warehouses are used for the storage of import merchandise, subject to duty, until the duties are paid or the goods reshipped without entry.

In accordance with the limitations and authorities defined by laws of customs, bonded warehouse stores merchandise, not subject to free circulation, under internationally acclaimed standards prior to nationalization.

Operations in the warehouse may include assembly, manipulation or storage but usually not manufacturing.

Bonded Warehouse…

Cross Docking

A logistics activity that attempts to reduce costs and total lead time.

Breaks down received items on the loading dock and immediately matches them with outgoing shipment requirements, instead of stocking the items in warehouse locations and returning to pick for orders at a later time.

Cross Docking…

Eliminates the need to place inventory in storage.

This can mean moving pallets across the docking areas (hence the name) for loading onto delivery vehicles.

Cross Docking…

Crossdocking essentially eliminates the inventory-holding function of a warehouse while still allowing it to serve its consolidation and shipping functions. 

The idea is to transfer incoming shipments directly to outgoing trailers without storing them in between. 

Logistics Experience will be different from one sector to anotherTextiles

– speed and variety due to seasonality concernsRetailing (FMCG)

– prevents stores from having empty shelves or shelves with overstocks

– Frozen storage and transportationHealth

– hygienic, have limited shelf life, require special storage conditions and entertain high inventory risks

Automotive – just in time (JIT), delivering parts from thousands of

kilometers, special packagingFuel and Petroleum Transportation

– very special tanker security systems

Fuel and Petroleum Transportation Fuel tankers have bodies, including the

chassis, made of aluminum alloy and are the lightest tankers in weight and highest in volume (20.000 to 38.000 liters).

The tanks have a bottom loading and unloading system and all the necessary security equipments for overloading.

Fuel and Petroleum Transportation… The tanks have capacities between 20.000 and

38.000 liters, 4 to 7 compartments and 3.200 to 7.000 liters of compartment capacities.

Along with these tankers there are three-level security systems, bottom loading equipments, anti-rolling system, a security system locking the brakes when the API drum is opened and the valves when it is closed, emergency buttons at three sides and an EBS brake system.

Fuel and Petroleum Transportation…

There are also:

Emergency power switch,

Emergency valve locking switch,

6 rear-view mirrors

Fuel and Petroleum Transportation…

The drivers clothes have long sleeves and long trousers.

The fabric is 100% cotton to avoid static electricity.

In addition, all drivers wear anti-static shoes.

The drivers’ equipments also include gloves resistant to the material they carry, a helmet compliant to EN norms and glasses against the material vapor.

Vehicle Logistics

Vehicle logistics services include:

– Vehicle Transportation

– Marine Transportation (RO-RO)

– Ship Loading and Unloading

– Storage and Parking Lot Services

– Dealer Distributions

– Information Systems and Reporting

Vehicle Logistics …

Special transportation services are:

Inter-dealer transportation,

Fair exhibitions,

Sports competitions,

Collection vehicles

Vehicle Logistics …

During the placement of vehicles on to the ship;

Minimum parking distances,

Installation of the safety equipment

should be realized.

Vehicle Logistics …

Storage and Parking Lot Services:

- Transfer to addressed area,

- Transfer to the dispatch area,

- Transfer of the out of order vehicles to the service area,

- Transfer from the service area to the addressed area

What is Ro-Ro?

Roll-on/roll-off (RORO) ships are designed to carry wheeled cargo such as automobiles, trailers or railway carriages.

This is in contrast to lo-lo (lift on-lift off) vessels which use a crane to load and unload cargo.

What is Ro-Ro?

RORO vessels have built-in ramps which allow the cargo to be efficiently "rolled on" and "rolled off" the vessel when in port.

While smaller ferries that operate across rivers and other short distances still often have built-in ramps, the term RORO is generally reserved for larger ocean-going vessels.

What is Intermodal (Combined) Transport?

It is a transport method that more than one transport mode is used for the same transport container.

The process can also be defined as a transportation method where transport mode changes for the same transport container or land vehicle, but the goods themselves are not handled during these changes.

What is Intermodal (Combined) Transport?

In other words, it is a transport method that integrates advantages of different transport modes.

In intermodal transport, the aim is to achieve an effective combination of cost, delivery time and service quality.

Features of Intermodal Transport

Using standard transport units (like standard containers, trailers or pallet).

The suitability of the transport units for loading, carriage and unloading.

The compatibility of the technological, legal and organizational parts of the process chain within the transport system.

The goods inside the transportation container are not handled

Advantages of Land-Railway Intermodal TransportGuarentee of long-term fixed price

Secure shipping

Minimum interference by weather conditions and traffic constraints

Easier border crossing

Cost and equipment supply advantage in high volume and planned shippings

Omsan Lojistik’s Intermodal Transport

Omsan Lojistik’s Intermodal Transport (cont’d)

What is Milk Run Distribution?

It is the combination of shipments from multiple vendors in close geographic proximity into one shipment received by the customer,

normally done for a defined route on a recurring basis.

What is Milk Run Distribution?...

What is a Freight Forwarder?

An independent business that handles export/import shipments for a fee.

A freight forwarder is among the best sources of information and assistance on export regulations and documentation, shipping methods, and foreign import regulations.

Forwarder assembles, collects and consolidates less-than-truckload (LTL) freight .

What is a Freight Forwarder?...

Forwarder consolidates freight for many shippers, arranges for shipment and delivery via LTL carriers and gets lower (freight) rates based on volume than the individual shippers could obtain.

At the request of the shipper, the forwarder makes the actual arrangements and provides the necessary services for expediting the shipment to its overseas destination.

It also clears the freight through customs.

What is a Freight Forwarder?...

The freight forwarder does not actually carry the cargo or conduct business for the ship.

It is an intermediary between carrier and owner of goods being transported.

The forwarding agent assists the exporter in finding the most economic and efficient methods of transporting and storing cargo.

E-marketplace, Online Auctions and Exchanges

An E-marketplace is a virtual online market where organizations register as buyers or sellers to conduct B2B e-commerce over Internet.

They can be operated by an independent party, or be run by some form of industry consortium that has been set-up to serve a particular sector.