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Topics C overed
1
Understanding S CM F unction1Components a nd f oundations o f S CM
1SCM M icro P rocesses
1Ingredients o f S uccessful S CM
1Performance r eview & E nhancement
1Designing L ogistics s ystem
1Domestic O perations
1Exports / I mports O perations
1Performance e valuation
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Understanding S CM F unction
The d esign a nd m anagement o f s eamless, v alue-
added
processes a cross o rganizational b oundaries t o m eet the r eal n eeds o f t he e nd c ustomer ( Institute f or
Supply M anagement)
Managing s upply a nd d emand, s ourcing r aw
materials a nd p arts, m anufacturing a nd a ssembly,
warehousing a nd i nventory t racking, o rder e ntry
and o rder m anagement, d istribution a cross a l l
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Understanding S CM F unction
The p lanning a nd m anagement o f a l l a ctivities
involved i n s ourcing a nd p rocurement, c onversion,
and a l l l ogistics m anagement a ctivities …
also i ncludes c oordination w ith c hannel p artners,
which c an b e s uppliers, i ntermediaries, t hird p arty
service p roviders, a nd c ustomers. C ouncil o f
Supply C hain M anagement P rofessionals
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Components a nd f oundations o f S CMIntegration o f t hree f unctions
1Planning
1Sourcing
1Delivering
1Well c onnected t hrough w arehousing a nd
transportation.
Effective d esigning, a dministration & p erformance
evaluation i s a k ey t o s uccessful S upply C hain
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Components a nd f oundations o f S CMlanning 1Basic L ogistics d esign, s uppliers, i n p rocess a nd
OBL
1Make o r b uy d ecisions
1Demand F orecasting , A BC A nalysis, I nventory
levels
1Primary C onsolidation a nd D istribution network
1Designing a nd p lanning t ransportation n etwork
1Legal c ompliances
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Components a nd f oundations o f S CMnventory F low
Information F low
S
uppliers
Customers
Procureme
nt Processing Distributi
on
Supplier
Partnership
Material P lanning
Material S chedule
Procurements Methods
Capacity P lanning
Production S cheduling
JIT I nventory S ystem
Flexibil ity – V olume
V ariety
Demand P lanning
Responsiveness
Postponement
Distribution
Networking
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Components a nd f oundations o f S CM1
Supply M anagement: S upplier m anagement, supplier e valuation, s upplier c ertification,
strategic p artnerships1
Operations: D emand m anagement, M RP, E RP, inventory v isibil ity, J IT, T QM
1Distribution: T ransportation m anagement,
customer r elationship m anagement, d istribution network, p erfect o rder f ulfil lment, g lobal s upply
chains, s ervice r esponse l ogistics1Integration: P rocess i ntegration, p erformance
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E6CC6C1SRM ( Supply r elationship M anagement)
1ISRM ( I nter s upply C hain M anagement )
A l l p rocesses t hat a re i nternal t o t he f i rm 1CRM ( C ustomer R elationship m anagement )
A l l p rocesses f ocusing o n i nterface b etween t he
firm a nd t he c ustomers
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E6CC6C
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E6CC6C
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E6CC6C
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E6CC6Courcing – P rocurements a nd T hird P arty Manufacturing
:
1Sourcing d ecisions a nd v endor M anagement
1Supplier M anagement
1Procurement s cheduling
1Quality c ontrol
1Replacements/ T APA c ertification
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E6CC6Cel iver ing
1Logistics d esign – T ransportation
1Strategic p lacement o f w arehouses
1Efficient o perations a nd S OP’s
1Use o f E RP/MRP f or b etter v is ibi l ity
1Risk m anagement
1Reverse L ogistics
1Waste d isposal m anagement
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96F69AC C6CC
1 Data i ntegration a cross S upply C hain - s trong ERP
1 Visibil ity a cross s upply c hain
1 Rationalizing l ayers 1 Strong O utbound L ogistics
1 Strong O TIF ( above 9 0 )
1 Regional D istribution c enters a s n ecessary1 Late s tage c ustomization t o i mprove
productivity
1 Partnerships a long S upply c hain
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9D896769A
1Cross F unctional T eam a nd r eview
1OTIF a nalysis a nd i mprovement
1Root c ause a nalysis
1Logistics A udit
1Performance e valuation
1Building s trategic p artnerships – 3 PL/4PL
B6C99 CAC 2CA67
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B6C99 CAC 2CA67
1
Domestic O perations 1Exports/Imports O perations
Designing t he s ystem o f
2Stocks f low
2 O perations, 2Services s upport,
2Controls, r eview, m odifications,
2Cost r ationalization
2Customer s ervice
B6C99 CAC 2CA67
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B6C99 CAC 2CA67
Domestic O perations – S OP’s
1Production p lanning, I nventory m anagement
1
Creating c hannels o f L ogistics1Strategic p lacement o f w arehouses
1Mobilizing v iable a nd e conomic t ransportation
1
Appointment a nd e xpansion o f s tockists network
1Customer O rder e xecution
1eceivables m ana ement a nd c redit c ontrol
B6C99 CAC 2CA67
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B6C99 CAC 2CA67
Domestic O perations – S OP’s
1Reverse L ogistics a nd D isposal o f w aste
1Legal c ompliance
1Safety a nd s ecurity
1Legal C ompliance
1Marketing s ervices
1Business A nalysis a nd M IS
B6C99 CAC 2CA67
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B6C99 CAC 2CA67
Exports O perations – S OP’s 1Production p lanning a nd f orward c overage
1Capacity p lanning a nd e xpansion
1Make o r b uy d ecisions
1Procurements – L ocal, I mports
1Shipment c onsolidation
1Exports D ocumentation
1Selection c r iter ia f or C HA, F orwarders
1Credit c ontrol n orms, M ethod o f r ecoveries
B6C99 CAC 2CA67
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B6C99 CAC 2CA67
Imports O perations – S OP’s 1Supplier v alidation – C redentials
1Capacity, f acil ity, G MP v alidation
1Commercial n egotiation
1Procurement – C ost, C redit t erms
1Logistics – F reight f orwarder, c ost, C HA
1Inspection, Q uality v alidation
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67896 88A9
1
Cost o f O perations1Operational e fficiency
1Customer E valuation
1
Procurement e valuation 1Quality o f C ustomer S ervices
1Scope f or I T u pgradation
1
Improvement i n M IS
A6 D8696C
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A6 D8696C
CAC 7E6769A
1Strategic p lanning, O utsourcing & p articipation
1Total Q uality m anagement ( TQM)
1Just i n t ime
1Quick r esponses
1Value a dded c ustomer s ervices
1Logistics a s a c ompetitive w eapon
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Thank Y ou
Have a g reat C areer
ahead
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4 Ethics is standardized form ofconduct/behaviour of individuals
understood and accepted in a particular
field of activity4 They give an idea what is right or wrong
, true or false , fair or unfair. E.g :
honesty , obedience, equality.4 Business ethics refers to the moral rules
and regulations governing the business
world
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4 In today's global & competitive
environment, people and business areexpected to behave in an ethical manner
& follow ethical standards
4 No one value system can be said to bebetter or more legitimate then others.
4 The challenge of globalization is to
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3D4 Globalization of business have ethical
dilemma
4 The business standard followed code of
conduct, rules, polices are different.4 There are different thought , ideas ,
practices, languages, concepts which a
global business needs4 It takes the unique identity of a country
or region
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4
Exploitation of labour4 Harassment of women
4 Environmental issues
4 Misleading advertisement
D 4 F9 E 48ED
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4 The world`s worst industrialcatastrophe. it occurred on the of
December 2 ,1984
4 26 yrs after the gas leaked , 390 tones oftoxic chemicals abandoned at the UCIL
plant continue to leak and pollute the
groundwater.4 By the end of 2009 , it was estimated
that 25000 people had died and nearly
6 00 000 eo le ere affected d e to as
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4
Analysis shows that parties responsiblefor the disaster are :
2 Union carbide corporation
2 Government of India
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32D D4F3B2
Unit of Analysis : culture or nation
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What is disaster
• Natural disaster
• Manmade disaster
• Relatively sudden
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y
• Relatively predictable
1
DISASTER CLASSIFICATION
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Table showing classification of disasters
Source: Wassenhove, Van L.N (2006). “Blackett Memorial Lecture - Humanitarian Aid Logistics: Supply Chain Management inHigher Gear”. Journal of the Operational Research Society (2006) 57, 475-489. Fontainebleau, France.
DISASTER CLASSIFICATION
Number of Disasters 1970-2008•Of 311, catastrophic events in 2008, 137 were natural and 174 were man-made•
Most of 240,500 people who died of catastrophes in 2008 are from Asia
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Source: Swiss Reinsurance Company Ltd. “Natural Catastrophes and Man-made Disasters in 2008”, Nov 2,2009.
What is humanitarian logistics (HL)?
Complex activity of providing relief to people at the time ofdisasters.
Humanitarian logistics is a specialized form of logistics thatdelves into supply warehousing and delivery in disasters
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delves into supply warehousing and delivery in disasters.
It is a process of planning, implementing and controlling the
efficient, cost-effective flow and storage of goods as well asinformation from point of origin to point of consumption tomeet the beneficiary's requirements
It talks about arranging the resources related to deliveryand storage of the rescue material and supplies..
4
Objective and Role of HL
The ultimate objective of humanitarian logistics is to
ensure distribution time minimization along with costminimization and response maximization.
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The role of humanitarian logistics is tough to measure
since there are many limitations related to naturalissues like- geographical situations, weather
conditions or other factors like- odd working
environment.
5
Challenges to HL
Demand irregularity
Abrupt occurrences High stakes related to delivery time appropriateness.
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6
Focus of HL
More on providing and analyzing timely
informationGaining more insight on nature of disaster
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view of logistics planning
Planning of relief activities
Identifying bottlenecks
Human factor
7
Concept of Cluster
• Importance of coordination
•Lack of coordination is a main cause of failure
• use of clusters for diverse functions like-sheltering logistics along with water and
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sheltering, logistics along with water andsanitation to achieve functional coordination
• Use of Technology
• Flexibility in operations
• Requirements of HL and relief ops are different
from those of Business ops
8
Differences between HL and BusinessLogistics
Demand irregularity
Abrupt occurrencesHigh stakes
Poor infrastructure Seasonal constraints
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Poor infrastructure, Seasonal constraints
Limitations on planning
Humanitarian objectives
Source of financing
Time and place value of inventory is far greater
than carrying cost and market value of inventory
9
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PPT Model of HL
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People
• The most significant component. Includes
all personnel in humanitarian logisticsactivity.
Th h t i h k it
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• The human aspect in such makes it more
sensitive since it is directly related to livesof people.
• Smooth coordination between human
components is important
12
Process
• Includes processes and guidelines to
facilitate smooth implementation of actionplan.
• A carefully considered action plan smoothens
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• A carefully considered action plan smoothens
right implementation of logistics.• Contingent approach is necessary, where
solution has to be sought based on situation.
• Contingent approach is necessary especially
when the pre-planned course of action fails.
13
Technology
• Technology forms the means of achieving
the end.• Use of radio frequency identification.
Radio waves facilitate effective tracking at
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Radio waves facilitate effective tracking atthe time of disasters. Japan has beenpioneer towards using such systems.
• MERS (Mobile Emergency ResponseSupport)
• Satellite Imagery Mapping
14
Recent examples of HL ops in India
• Example of relative failure - Kedarnath
landslide• Example of relative success - Phalin Odisha
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15
Three phases in Disaster ManagementCycle
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16
Before an emergency logisticsmay entail
• Acquiring equipment
• Stockpiling supplies
• Designating emergency
Providing utility maps toemergency responders
Providing material safety datasheets to employees
EMERGENCY RELIEF LOGISTICS (ERL)During an emergency logisticsmay entail
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Designating emergency
facilities
• Establishing training facilities
• Establishing mutual aid
agreements
• Preparing a resource inventory
sheets to employees
Moving backup equipment in
place Arranging for medical support,
food and transportation
Arranging for shelter facilities
Providing for backup power
Providing for backupcommunications
Emergency Relief Logistics requirements
Delivery of the appropriate supplies in good condition, when and where theyare needed.
A wide range of transport.
Limited, rapid, and specific deliveries from outside the area.
A t f i iti i i li f i t
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A system of prioritizing various relief inputs.
Storing, staging, and moving bulk commodities.
Moving people
Coordination and prioritization of the use of limited and shared transportassets.
Possible military involvement in logistics support
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ERL SUPPLY CHAIN
Donors and
Suppliers
Recipient Agency
•Government•Companies•Foundations
Stakeholders in the ERL supply chain:
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Delivering Agency
People inNeed
•Foundations•Government•
NGO’s -Red Cross- World Vision
•Government agencies•Military•Global and localNGO’s •Local organizations
Critical components of ERL
Demand analysis
Inventory planning and control
Regional coordination and synergies
In-kind donations management
Collaboration among organizations
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Collaboration among organizations
Constant communication Socio-economic impact assessment
Understanding regional political, economic andsocioeconomic conditions
Utilizing local capacity and capabilities
Humanitarian operation evaluation
20
Individual Assignment
• Take case of any ‘Emergency relief Logistics
Project’ or ‘Humanitarian Logistics Project’ inthe history.
• Obtain information about it from internet or
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• Obtain information about it from internet or
otherwise.• Assess its success based on various
parameters.
21
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New Technologies in Transport
• Road Transport
• Rail Transport
S T
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• Sea Transport
• Air Transport
• Commercial cargo transport
Main Objectives of new technology in
Road Transport
• Improve efficiency
I f
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• Increase safety
• Reduce damage to environment
Peculiarity in Road Transport
• Maximum independent actors
I h t i l t ti f t h l
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• Incoherent implementation of new technology
Types of application of New
Technology to Road Transport
• Infrastructure based applications
V hi l b d li ti
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• Vehicle based applications
• Applications for monitoring and enforcement
Infrastructure based applications
• Traffic sensors
• Sensors for wind and temperature• Auto incidence detection with video image processing,
radar, microwave sensors
• Ramp meter to restrict congestion and platooning
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• Ramp meter to restrict congestion and platooning
•Electronic Toll
• Smart cards
• Collection, processing, dissemination, exchange of data andmessages using variable message signs, RDS (radio datasystem) /TMC (traffic message channel) to deliver traffic
and travel info to drivers, road side beacons, GSM, internet.
Vehicle based applications
• For driver’s assistance
F d i d t i t
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• For reducing damage to environment
Applications for Driver’s assistance
• Navigation & Route Guidance – car navigationsystems, GPS for navigation, digital road network
database, dynamic and real time informationfrom traffic control centers, roadsidetransponders for vehicle-to-roadsidecommunication
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communication
• Collision Avoidance – collision warning system,assisting system such as increased acceleratorresistance, semi automatic driving, speedmeasuring, inter vehicle distance measurement
with radar, IR beam, laser.
Applications for Driver’s assistance
…… Contd.
•
Dynamic vehicle control is meant to assist driverin controlling lateral and longitudinal dynamicbehavior of the vehicle and stabilizing driving inorder to increase driver’s comfort reduce driver
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order to increase driver s comfort, reduce driver
workload and improve safety. – Distance sensors
– Video cameras
– Lateral sensors
– Systems constantly correcting vehicle dynamics
Applications for Driver’s assistance
…… Contd.
• Vision enhancement is aimed at assistingdriver’s vision in suboptimal visibility
conditions.
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–Near IR headlights
– UV based headlights
– Imaging techniques
Applications for Driver’s assistance
…… Contd.
• Driver and vehicle status monitoring isdetecting on time any deterioration of driver
or vehicle performance.
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p
–Sensor for driver’s physiological condition
– Sensor for status of vehicular controls
– Systems for intervention
Applications for Driver’s assistance
…… Contd.
• Speed control is meant to ensure thatappropriate speed is kept on each part of the
road network.
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–Speed limiter in vehicles
– GPS
– Digital road network with speed limit data
Applications for reducing damage to
environment
• Light weight design
• Improved efficiency of engine
• Constant search for new materials
• Alternate fuels Example electric car batteries
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• Alternate fuels. Example, electric car batteries,
fuel cells, solar panels, hybrid vehicles
• Cost effective recycling techniques
• Emission diagnosis systems
Applications for monitoring &
enforcement
• Low cost methods for speed detection
• Low cost methods for detecting movingviolations
• Electronic vehicle identification
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Electronic vehicle identification
• Image processing such as video pictures
Main Objectives of new technology in
Air Transport• Aircraft manufacturers – energy saving, reducing damage to
environment, improving aircraft space utilization
•
Airlines – fuel efficiency, reduced maintenance, easy to changepilots, ability to use cost effective routes, prediction of arrival time,maximize time in air.
• Air traffic control – maximize air traffic load, assessment of aircraftposition and adherence to flight plan, computer aided planning,
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p g p p p gharmonization among different air traffic control systems, reducing
minimum separation requirement to maximize airspace usage,accurate weather assessment
• Airports – cope with more take-offs and landings, faster loading,unloading and transfers, noise reduction, maximizing capacitywithin same ground area of airport
• Cargo interests – reduced cost of cargo transport, predictableschedules, faster transit, reduced cut-offs, improved safety
Application of new technology to Air
Transport
• Flight deck & navigation - Datalinks, enhancedcommunication technologies such as CNS, GCNN(global navigation satellite system), ADS(automatic dependent surveillance), 4D flying,FANS (future air navigation system), ADS
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( g y ),
(automatic dependent surveillance)• Control automation – low visibility taxiing
assistance, high precision in-trail operations interminal areas, automated collision avoidance,
automated wind shear avoidance
Application of new technology to Air
Transport
…… Contd.
•
Flight management – improved error checking,error management, enhanced error tolerance,modification of flight plans
• Warning and Advisory GPWS (ground proximity
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• Warning and Advisory – GPWS (ground proximity
warning system), GCAS (ground collisionavoidance system), TCAS (traffic alert andcollision avoidance system), millimetric radar andmicrowave systems for operation in poor
weather, advanced sensor and synthetic vision
Application of new technology to Air
Transport
…… Contd.
•Air traffic control – electronic data display,VHF datalink, SATCOM, SATNAV, graphicdisplay of aircraft separation, conformancemonitor what if displays problem solvers
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monitor, what if displays, problem solvers,
electronic role monitors, trajectory prediction,conflict detection, flight path monitoring,IATMAS (integrated air traffic managementsystem)
Application of new technology to Air
Transport
…… Contd.
• Safety – MSAW (minimum safe attitude warning),STCA (short term conflict alert), TCAS (traffic alert
and collision avoidance system), GPWS (ground
)
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proximity warning system)
• Interfacing – window environment for aircraft
position display and assistance tools, high
resolution display, voice recognition, handwriting
recognition
Main Objectives of new technology in
Rail Transport
• Safety• Speed
• Combined Transport
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• Combined Transport
• Reduce damage to environment
• Driverless operation
Application of new technologies to rail
transport
• Radio datalink, GPS, Ground-train
communication• Transport powered by magnetic induction
• Onboard data transmission
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•
Speed detection• Fault tolerant informatics
• Simulators for training
•
Light weight and impact absorbent material
Main Objectives of new technology in
Maritime Transport
•Reduced dependence on personnel skills
• Reduced crew on ships
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• Safety
•Reduced damage to environment
Application of new technologies to
Marine Transport
•
Navigation Support
• Maneuvering and Collision Avoidance Support
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• Integrated Bridge Systems
•Traffic Management Systems
Navigation Support
• GPS
• Electronic charts and maps
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•Automatic route planning, display of ship’sposition, deviation planning
•
Intelligent autopilots
Maneuvering and collision avoidance
• ARPA (automatic radar plotting aid) to displayposition of ship against other ships
• Superimposition of radar information on ECDIS(electronic chart display and information system)
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(electronic chart display and information system)
display products to combine position-monitoringand collision avoidance
• Sophisticated path prediction tools
Integrated bridge systems
• Navigation workstation with ECDIS (electronic
chart display and information system), ARPA(automatic radar plotting aid) radar, adaptive
autopilot.
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•
Navigation workstation which can work bothonline and offline
• Communication station
•Maneuvering station
Traffic management systems
• Concept – Instead of letting each ship decide
for itself when and where it goes, there can beexternal influence on this decision.
• Protocols for providing supervisory function
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over ships – VTS (vessel traffic services), VTIS(vessel traffic information services), VTMS
(vessel traffic management systems), MTC
(marine traffic control)
Technologies Transport area(s) of implementation
new sensor technology road, air, rail, maritime
image processing road, air,
speech recognition and synthesis road, air, rail, maritime
Global Positioning System road, air, rail, maritime
new visual information systems road, air, rail, maritime
new radio information systems road, air, rail, maritime
new transponder technology road, air, rail, maritime
smart card technology road rail
computers in vehicles road, air, rail, maritime
APPLICATION OF NEW TECHNOLOGIES
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new displays in vehicles road, air, rail, maritime
new communication links road, air, rail, maritime
public information centers road, air, rail, maritime
internet as information source road, air, rail, maritime
simulators as training tools road, air, rail, maritime
real time data collection road, air, rail, maritime
real time data processing road, air, rail, maritime
real time data dissemination road, air, rail, maritime
electronic charts road, air, maritime
radar technology road, air, rail, maritimelaser technology road, air, rail, maritime
computer hardware developments road, air, rail, maritime
computer software development road, air, rail, maritime
automation road, air, rail, maritime
Growth of InfoTech• Branch of Engineering to a separate faculty
• Limited application to universal application
• Competitive advantage to Sustenance factor
• Basic to matured programming languages
• Prices of operating ability of computer and
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• Prices of operating ability of computer and
data storage capacity
• Feasibility of investment into research
• Cost curve of new technology
Milestones in HiTech journey
• Hardware – Computer, PC, Mouse, Laptop, Handydrive, printers, handheld instruments
• Software – Basic to matured programminglanguages, threshold of talent, length of code, EDIand interfaces, Websites, ERP systems, Portals,
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social media• Hardware connectivity – LAN, WAN, Internet,
cable, wireless
• People connectivity – Internet, email, handheld
instruments, social media
Far reaching effects of InfoTech
• Talent suction in IT sector
• Widened social gap
•
Transparency• Demanding consumer and citizen
• Effects on business organisations
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•
Effects on political organisations• Increased and reduced people’s interaction
• Pressures at the place of work and health
hazards• Income levels and income difference
Use of InfoTech by Logistics Service
Providers
• Software systems and ERP systems• Outsourcing, insourcing, offshoring, BPO
• EDI and interfacing
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g
• B2B eCommerce
• Barcoding and RFID
What is ERP system
• Several systems is same organization/location
• LAN, WAN, WWW, Internet• Need for EDI and interfaces
• EDI and interfaces – Challenges & Limitations
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g
• Evolution of ERP and ERP system
• Concept of value chain
• Future – common system for Value Chain
What made ERP systems possible
• Internet technology – real time updates
• Concept of ERP• Optimization is of Enterprise vs optimization
of Fragment of Enterprise
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• Example of Agent’s income in LCL consol.
Why common system for Value Chain
• Concept of optimization of whole
•Resources spent in exchanging data amongmembers of value chain
Challenges
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•
Data ownership• Lack of trust
• Which system – different preferences
•Finally all parties are connected in value chains
Means of connection value chain
• Common system – not practical
•
Portals – ICEGATE – why provided by customs?• Why a forwarder/CHA is not suited to make
portal?
• Portal – INTTRA GTNexus – what is the
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Portal INTTRA, GTNexus what is the
structure?• Portal – Amezon, Quickr – What is the business
model?
•
Data exchangers – WIN consortium – Where arethe savings?
Software and ERP systems
• Low willingness & ability to invest in InfoTech
• Reduced requirement of resources• Automated transactions
• Transaction reports, MIS, exception reports
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p , , p p
• KPIs, SLAs, Balanced scorecard
• 4 stages of Systems Maturity of organization &
industry – transaction, analysis of past, future
action support, competitive advantage
Outsourcing, Insourcing, Offshoring,
BPO
• Definitions
• Cost leverage
• Consistent and unified processes
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p
• Resource buffering
• Centers of excellence, KPO
EDI and interfacing – members of
value chain
• Vehicles (Ship, Aircraft, Truck, Train)
• Carriers (Ocean, Air, Road, Air)• Shipper, Consignee
• Middle entities and service providers (CHA,
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p (
Freight Forwarder, NVOCC)
• Air Port, Air Traffic Controller, Sea Port, ICD,
CFS, Customs
• Bank
Case study ICEGATE
• Value proposition
•
Responsibility and prerogative of customs• Internal resistance
• eGovernance
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•
Improvements in phases• Centralization of servers
• Failed customer service
•
Global best practice of interfacing
ICEGATE – transaction with customs
• Objectives of customs – revenue, control
• How customs works – green channel, physicalcheck, sample check, blacklisting, role of CHA
• CHA files shipping bill and bill of entry
• What is manifest? Who gives/takes manifest?
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•
Manifest filed by forwarder, NVOCC, feederoperators, VOCCs.
• Issuance of BL/AWBL – master and house
• Issuance of BL/AWBL – filing manifest to customs
• Issuing BL/AWBL and filing manifest results intoincome and accountability.
Case study of BOLERO
• Internal chamber of commerce
• Container Shipping Lines’ Association (CSLA) • IATA
• Banking forum
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• Customs forum
Case study of common system for
Customs union
• Common interests
Narcotics, arms, trade which is illicit in bothcountries
Commercial frauds
• Conflicting interests
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• Conflicting interests
Trade which is illicit in only one country
Activities unofficially sponsored/encouraged byStates
Lack of trust
B2B eCommerce
• What is B2B electronic commerce
• Websites of Logistics Service Providers
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• Portals of Logistics Service Providers
Common features of B2B sites of LSPs
• eBooking
• eShippingInstruction (eSI)
• eBL, printing oBL
• Online Tracking of shipment
• Online view of shipment details
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•Online view of outstanding statement
• Online view of statistics
• Online payment
• Product information – schedules, transits,container types, contact details
Security features
• In which business, security is paramount?
• Why not in Logistics?• Secured password features
• IP certificate
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• Secure features – eBooking, ESI, Shipmentdetails, Transactions, Outstanding statements,
Statistics
• Why not tracking of shipment?
Intranet
• Intranet vs Extranet
• Website and ERP system – what is intranet,what is extranet
• Benefits of Intranet
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Barcoding and RFID
•Barcoding – product information, price, statusof sale, inventory management
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• RFID – monitoring of variables, data captureand transmission, inventory management,
locator
Future cost curves
• Old and matures Technology – cost drops in future
•New Technology – expensive, compulsive
• Human Resource – steady or rising
• Water, Energy – rising, scarce
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• Material – can be rising, falling, steady
• Green technology and Carbon points – Examples,
InfoTech will become cheaper, Paper will be come
expensive
Choosing the most suitable system
• Longevity of provider
• Longevity of programming tools
• Simulation of business model
•
Common user system vs customized system• Training requirement and intuitiveness
• Support commitment
• Changes to be done in future
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•
Robust code, QC and bugs• Transparent pricing
• Transaction level – MIS level – decision level – Competitive advantage level
•
Preparedness of users and organisation• Danger of choosing the lowest price provider
Features of ERP system• Why codes and masters are used?
• For which fields, master is not used?
•
What are masters – examples of SKU code andParty code.
• What is a table? What are fields and records?
• What is a database?
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• What is input and output?• What is form? What is report?
• Data, Information, MIS
• Information i.t.o. figures and graphs
• Statics vs dynamic reporting tools
PACKAGINGto be sent to [email protected]
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DEFINITIONS
• Packaging as the material -: can bedefined as materials used for thecontainment, protection, handling,delivery, and presentation of goods.
• Packaging as the process -: can be
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defined as the science, art and technologyof enclosing or protecting products duringits transport, distribution, storage,handling, sale, and use.
DEFINITIONS• Comprehensive definition -: Packaging is
defined as processes such as cleaning, drying,
preserving, counting and use of materials suchas glass, metal, paper or plastic employed tocontain, handle, protect, and/or transport, sellthe goods.
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• Packaging used to be just a topic in engineering,advertising, logistics. Today it is a separatedomain of study & research.
• Indian Institute of Packaging http://iip-in.com/
PACKAGING MATTERS• Packaging is the essential final operation in
production of goods.
• Inadequate packaging can damage value ofgoods or cause damage due to goods. Eg.Naphtha
• Excess packaging increases price of goods cost
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Excess packaging increases price of goods, costof transport, handling, distribution, storagewithout any value addition to goods. Eg. Egg
• Packaging determines minimum quantity of,transportation, handling, distribution and portionof consumption. Eg. Shampoo in sachet
BROAD CATAGORIES
•Primary Packaging (Consumer Packaging)
• Secondary Packaging (Distribution
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Packaging)
• Transit Packaging (Transportation)
Packaging
PRIMARY PACKAGING• wrapping or cover or container handled by
the final consumer. Eg. toffee wrapper
•
Contains communication with finalconsumer, consumption relatedinstructions. Eg. Medicine bottle
• Focus on aesthetics, consumer
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ocus o aes e cs, co su epreference, preserving value. Eg. Perfume
• Guarantees original goods in originalcondition. Eg. Cookies with tray & wrapper
• May be required to save remaining portionafter partial consumption. Eg. Eye drops
SECONDARY PACKAGING
• Larger cases or boxes that are used to
group quantities of primary packagedgoods for distribution and some times fordisplay in shops. Eg. Kitkat
• Bridges gap between consumer packing
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and transportation packing. Eg. Carton• Contains handling instructions, quantity
• Focus on inventory size for distribution
intermediaries. Eg. Grain in gunny bags
TRANSIT PACKAGING• Wooden pallets, board and plastic
wrapping and containers that are used tocollate the groups into larger loads fortransport, which facilitates and optimizestransportation, loading and unloading. This
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is called Unitization. Eg. Bottles on crate• Contains handling instructions and
quantity. Eg. Carton of medicines
•
Focus on transport and handling relatedconvenience. Eg. Container.
OTHER CLASSIFICATIONS OFPACKAGING
•
Returnable or reusable / Single use orDisposable. Eg. Coke in bottle and can
• Stiff / Semi stiff / Soft. Eg. Edible oil in can,
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Stiff / Semi stiff / Soft. Eg. Edible oil in can,tetra pack, thin plastic bag.
• Types of material such as wooden, metal,
paper, glass, plastic.
FUNCTIONS OF PACKAGING
•PROTECTIVE FUCTIONS
• COMMERCIAL FUNCTIONS
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• MANIPULATIVE FUNCTIONS
PROTECTIVE FUNCTION• Protection of value in goods.
•
Protection from goods.• Preserving original condition.
• Avoid or minimize damage during handling,
transport and storage
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• Statutory compulsions
• Protection against expected hazards such as
atmospheric changes, physical and chemical
changes, shocks, mechanical damage
COMMERCIAL FUNCTIONS• Aesthetics and positive impression
•
Role of shop assistant in self-service shop• Making consumption easier & convenient
• Commercial and sales communication with
consumers and influencers
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• Instructions to consumer, transporter, handler,
distributor, disposer
• Machine readable communication such as
barcode and RFID label• Increasing market reach, tapping new markets
MANIPULATIVE FUNCTIONS• The manipulative function lies in the
capability/power of the packing to shape a
product into an efficient, manipulative unitadapted in dimensions, mass/weight, shape andconstructional design for manipulation,transportation, warehousing, sale and
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consumption.• Unitization and assortment suitable for handling,
transport, distribution and consumption
• Portion control
PROPERTIES OF PACKAGINGMATERIALS
• MECHANICAL PROPERTIES
• PHYSICAL PROPERTIES
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• CHEMICAL PROPERTIES• OPTICAL PROPERTIES
• FUNCTIONAL PROPERTIES
MECHANICAL PROPERTIES
• Various Strengths and Breaking Points
• Rigidity/Stiffness i.e. movement resistance
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• Coefficient of friction
• Adhesivity
PHYSICAL PROPERTIES
• Water permeability
•Steam permeability
• Fat permeability
• Gas permeability
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• Heat permeability
• Light permeability
CHEMICAL PROPERTIS
• Action of water, weather, acid and base
• Presence of mineral and organic impurity,
traces, residues
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• Chemical effects on goods, packing
material and printing
OPTICAL PROPERTIES
•
Transparency
• Opacity
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• Reflection properties
•
Colors
FUNCTIONAL PROPERTIES
•Printability
• Thermal joining
• Adhesive joining
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• Shrinkage
• Shaping and malleability
• Fire resistance
PACKAGING MATERIALS
•
Paper• Metals
• Wood
•
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Textile• Glass
• Plastics
•
laminated (combined) materials
PACKAGING & ENVIRONMENT
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PAPER PACKING• Easy availability of RM
• Low cost of production
• Variety of form, look and feel• Variety of rigidity, strength water and fat
permeability
• Printability and adhesivity
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• Reusability and recyclability• Biodegradable
• Can be combined with wax, plastic, metal foil toimprove the properties
METAL PACKAGING
• Steel and Aluminum are most common
•
Mechanical strength and rigidity of frames• Impermeability
• Conductivity
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• Chemical properties and corrosion
• Recyclability
• Price
GLASS PACKAGING
• Easy availability of RM
•
Reusability and recyclability• Chemically inert
• Variety of light permeability
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• Rigidity
• Fragile, heavy
• Impermeability
TEXTILE PACKAGING
• Flexibility and pliability
•
Strength• Printability
• Permeability
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• Reusability and recyclability
• Absorbs moisture
• Growth of microbes
WOODEN PACKAGING
• Availability of RM. But discouraged.
•
Easy to process• Mechanical strength
• Insulator and impermeable
•
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Printability• Heavy and voluminous
• Absorbs water, degrades, decays.
•
Can be improved by treatment, coating,modification
PLASTIC PACKAGING• Easy to process and manipulate
• Variety of forms, shapes, sizes, look andfeel
• Can be combined with other materials
• Low cost
• Light weight
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• Impermeability
• Microbe resistant
• Relatively inert
• Aging of plastic affects strength, color
• Effect of temperature and radiations
LAMINATED (COMBINED)PACKAGING MATERIAL
• Connecting several layers of packaging
materials
• Improvement of properties.
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• Example – Tetra pack with combination of
layers of metal foil, paper and plastic
AUXILARY MEANS• Adhesives, adhesive tapes, connecting
material such as wires, nails, rivets
• Steel fittings on edges and corners
• Anti corrosive and water resistant layersand treatments
D i t h ili l l i
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• Drying agents such as silica gel, aluminagel, cotton
• Fixing agents – holding, separating,
support, transfer of weight, fillers
PACKAGING MACHINES
• Blister packs and Vacuum Packaging Machines
• Bottle caps equipment, Lidding, Closing and Sealing Machines
• Cartoning Machines• Cleaning, Sterilizing, Cooling and Drying Machines
• Conveyor belts, Accumulating and Related Machines
• Feeding, Orienting, Placing and Related Machines
• Filling Machines : handling liquid and powdered products
• I ti D t ti M hi
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• Inspecting, Detecting Machines• Label dispensers : Help peel and apply labels more efficiently
• Package Filling and Closing Machines
• Machines for : Palletizing, Depalletizing, Unit load assembly
• Shrink wrap Machines
BATCHING AND COUNTINGSYSTEMS
• Periodical batching system
• Continual batching system
• Dosers and batchers
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• Machine counters
• Electronic counters
FOODSTUFF PACKAGING• Relatively more stringent regulations
•
Safe, nutritious, appealing to consumption• Preservation of original color, taste, flavor
• Food grade material for primary packing -traces, odors, contamination, leakage,
i b th i d t i t bilit
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microbe growth, expiry date, printability
• Methods and materials of packaging forextending shelf life of fresh, minimally
processed and processed foodstuff
DEFINITION OF HAZMAT,DG,
RESTRICTED ARTICLES
•
Any kind of matter that can intrinsically orin certain circumstances adversely affect
life or property or environment
•
Cl ifi d i t i h d l d
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Classified into nine hazard classes andfurther subclasses
NINE CLASSES OF HAZMAT• Class 1 -: Explosives (1.1 to 1.6)
• Class 2 -: Gases (2.1 to 2.3)
•
Class 3 -: Flammable liquids• Class 4 -: Flammable solids (4. to 4.3)
• Class 5 -: Oxidizing agents and organic peroxides (5.1and 5.2)
• Class 6 -: Toxic and infectious substances (6.1 and 6.2)
• Cl 7 R di ti b t
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• Class 7 -: Radioactive substances• Class 8 -: Corrosive substances
• Class 9 -: Miscellaneous catagories
• HAZMAT labels http://www.fmcsa.dot.gov/facts-
research/research-technology/visorcards/yellowcard.pdf
PACKAGING HAZMAT• Stringent regulations
• Meticulous tally, inspection, track & trace
• Labeling and Emergency Response Guide
• Several regulations
•
C t l f t h i f t b i
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Control of atmospheric factors, barrier,separation, leakage, chemical and
physical changes.
•
Printability• Redundancy
PACKAGING LABELS/SYMBALS
•
Trademark• Proof of purchase
• Recycling symbols
• B d d RFID l b l
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• Barcodes and RFID labels• HAZMAT labels
• Labels related to handling and storage
Significance of packaging in
clearance and logistics• Air transport packaging requirements as per IATA
• Packaging requirement for certification by QA agency
appointed by buyer• Packing List for customs clearance
• Marks and numbers
• Documentary proof of quantity
f
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• Tally of quantity
• Packing material is exported and imported
• Claims of short landing
•
Handling and carrying convenience• Survival of CHAs and requirement of one window service
ASSIGNMENT
COMMON INSTRUCTIONS• Study the total packaging used from the place of manufacturing up to the
place of consumption in domestic as well as international markets.
• Interact with at least 2 parties such as manufacturer, trader, retailer, who