The 7 Rs of Logistics

Question №3 The 7 Rs of Logistics.

1 . The product has to be necessary for the consumer.

2 . The product has to be the corresponding quality.

3 . The product has to be in necessary quantity.

4 . The product has to be delivered in due time.

5 . The product has to be delivered in the right place.

6 . The product has to be delivered with the minimum expenses.

7 . The product has to be delivered to the specific consumer.

 

 

Qustion #6

A Bill of Lading (sometimes abbreviated as B/L or BOL) is a document used in the transport of goods. It is issued by a carrier; it details a shipment of merchandise, gives title to the goods, and requires the carrier to deliver the merchandise to the appropriate party.

A Certificate of Origin (often abbreviated to C/O or COO) is a document used in international trade. It is a printed form, completed by the exporter or its agent and certified by an issuing body, attesting that the goods in a particular export shipment have been wholly produced, manufactured or processed in a particular country.

A Commercial Invoice is a document used in foreign trade. It is used as a customs declaration provided by the person or corporation that is exporting an item across international borders. A commercial invoice is used to calculate tariffs, international commercial terms (like the Cost in a CIF) and is commonly used for customs purposes.

A Letter of Credit is a document issued by a financial institution, or a similar party, assuring payment to a seller of goods and/or services provided and certain documents have been presented to the bank.

A Shipping List, Packing List, Waybill, Packing Slip (also known as a Bill of Parcel, Unpacking Note, Packaging Slip, (Delivery) Docket, Delivery List, Manifest or Customer Receipt) is a shipping document that accompanies delivery packages, usually inside an attached shipping pouch or inside the package itself. It commonly includes an itemized detail of the package contents and does not include customer pricing. It serves to inform all parties, including transport agencies, government authorities, and customers, about the contents of the package. It helps them deal with the package accordingly.

 

7) Payment methods. Describe different payment methods and say when they are used and how secure they are for the seller.

Payment methods. There are two types of payment methods; exchanging and provisioning.

 

10. Compare transport modes for a shipment from Moscow to Almaty. Discuss speed, cost and flexibility.

 

Both are intermodal, because requires not only air plane or train but also trucks to deliver the load to a first point of destination.

From Moscow to Almaty

First mode:

Air way

Is the fastest way to transport also the most expensive way to transport.

It takes about 6 hours to deliver the freight by the plane.

Advantages:

Speed, safety

Disadvantages: price

It’s flexible under a multimodal contract which consists of trucks and air planes, which means they’ll take your freight right to you.

Second mode:

Railway

It takes about 3 days to deliver the freight

Advantages:

A lot of space (quantitative), is cheaper that air

Disadvantages:

Safety, requires a lot of time

Railway is more flexible when a plant or facilities have their own branch line(spur track-подъездной путь).

12. Types of containers. What transport is suitable for each of them? Discuss advantages and disadvantages of using them.

 

Type of container                                                      suitable for transport of

Standard container dry cargo

Refrigerated                                      delicate cargo and perishables

Tanktainer                                                                   liquids

Open top      bulky cargo

Flat-rack                                  heavy machinery and pipes

 

Container types

 

Standard containers	Flatracks		Open-top containers
	Tank containers		Insulated and refrigerated containers

 

14. Metric and non-metric measurements. In which countries are non-metric measurements used?

Various systems of measurement create difficulties in transfer of units from various systems of measurement.

The metric system is an internationally agreed decimal system of measurement that was originally based on the metre and the kilogram es introduced by France in 1799. Over the years, the definitions of the metre and kilogram have been refined and the metric system has been extended to incorporate many more units.

non-metric - not based on the meter as a standard of measurement.

non-metric system is used such countries as United States of America, United Kingdom, Japan (not almost), Liberia, Burma

 

18. Warehouse. Describe different areas of a warehouse and name the activities that take place in them.

The main areas:

Space Planning;

Dock Operations;

Receiving Operations;

Storage Operations;

Picking Operations;

Other.

 

20. Name 8-10 acronyms (abbreviations) that are widely used in logistics. Why is it important to know each of them?

• 3 PL       Third-Party Logistics Provider
• FIFO First In First Out : warehousing term, meaning that the oldest inventory (first in) is the first to be used (first out). (LIFO)
• FLT Fork Lift Truck
• FOB Free On Board : point during transportation where title, transport costs, risk, etc. transfer from seller to another party (e.g. FOB Truck, FOB Vessel, FOB Warehouse).
• HHT Hand Held Terminal : bar-code scanner or other portable data input device.
• RFID Radio Frequency Identification Data : electronic tags which replace conventional barcodes.
• JIT     Just-In-Time : logistics discipline requiring increased frequency and regularity of deliveries to reduce stocks in the supply chain. Frequently used in manufacturing to cut or even eliminate component stocks.
• TEU Twenty-Foot Equivalent Unit : a standard measure for containers (see also FEU).
• VIN Vehicle Identification Number
• WMS Warehouse Management System : software to manage inventories.
• AWB  Air Way Bill
• B/L   Bill of Lading
• 22. Logistic services. Describe several types of logistic services and name 2-3 companies in Kazakhstan that can provide them.
• Transshipment (перевалка) – loading goods from one means of carriage onto another;
• Break-bulk – packing goods in small, separable units;
• Cross-docking (прием и перевалка без хранения) – direct flow of goods from receipt at warehouse to shipping, bypassing storage;
• Order picking (выбор и сбор заказа) – selecting and assembling items from stock for shipments;
• Reverse logistics (Entsorgungslogistik) – collecting and handling of used or damaged goods or of reusable transit equipment;
• Tracking and tracing (отслеживание товара в пути) – locating items in transit; (DHL,  kazpost, Spark Logistics, Exline)
• Warehousing – receiving and storing goods; (DAMU)
• Collection – picking up goods at a named place;
• Outsourcing – contracting functions out to third-party providers (3PL);
• Consolidation – the grouping of small shipments into one container
• Kitting (загрузка в контейнер с ячейками)
• Import/export cargo customs clearance (ТОО Азия Кеден Сервис, Globalink logistics group, International Cargo Service, Panalpina World Transport LLP)
• Packaging service
• Export packing and crating (упаковка в решетчатую тару, в ящики)
• Polybagging (упаковка в мешки) and shrink-wrapping (запаковывание)
• Bundling/unbundling (склеивание корпуса коробки бумажной лентой без загибки краев)
• Labeling

 

25. Inventory management and procurement. Define it and explain its importance in logistics.

Inventory management is the process of efficiently overseeing the constant flow of units into and out of an existing inventory. This process usually involves controlling the transfer in of units in order to prevent the inventory from becoming too high, or dwindling to levels that could put the operation of the company into jeopardy. Competent inventory management also seeks to control the costs associated with the inventory, both from the perspective of the total value of the goods included and the tax burden generated by the cumulative value of the inventory.

Or 

Inventory management is primarily about specifying the quantity and placement of stocked goods.

FUNCTION of Inv. Management (that’s importance for logistics)

 

• Make scheduling and shop loading more efficient
• Narrow the gap between sales and stock replacement
• Fine tune record keeping accuracy for better inventory management
• Determine exact material status and inventory dollar burden
• Reduce cost of inventory obsolescence
• Become truly responsive to your customers real needs

 

Procurement – is the act of obtaining or buying goods and services. The process includes preparation and processing of a demand as well as the end receipt and approval of payment. It often involves:

 
(1) purchase planning, 
(2) standards determination,  
(3) specifications development,  
(4) supplier research and selection,  
(5) value analysis,  
(6) financing,  
(7) price negotiation,  
(8) making the purchase,  
(9) supply contract administration,  
(10) inventory control and stores, and  
(11) disposals and other related functions. 

 
The process of procurement is often part of a company's strategy because the ability to purchase certain materials will determine if operations will continue. A business will not be able to survive if it's price of procurement is more than the profit it makes on selling the actual product. 

27. Name any 5 inventory management techniques and explain how they work

5S is the name of a workplace organization method that uses a list of five Japanese words: seiri, seiton, seiso, seiketsu, and shitsuke.Transliterated or translated into English, they all start with the letter "S". The list describes how to organize a work space for efficiency and effectiveness by identifying and storing the items used, maintaining the area and items, and sustaining the new order. The decision-making process usually comes from a dialogue about standardization, which builds understanding among employees of how they should do the work.

27. Strategic sourcing in procurement.

 

Most Companies and governments today are under pressure to operate more efficiently. And many of them are realizing the effective procurement can reduce costs? Improve processes and increase productivity.

In the past few years strategic sourcing has become a frequently used approach in this context. But what is strategic sourcing, To put it simply, It means companies are adopting a new strategy for how they buy  services and products.

Strategic scouring is a systematic process of analyzing expenditures, internal and external influences. And finding out what kind of supplier relationships are necessary to help achieve the company’s goals. Before the company decides to purchase a product or service? Strategic sourcing is used to consider the total cost of product or action, Not just price alone.

In the past, many purchasing managers neglected the fact that low purchase costs does not necessarily mean low total cost, In a strategic sourcing process other costs are examined as well e.g. the cost of purchasing, transport, support, maintenance, and disposal.

Leading companies have realized how much they can benefit strategic sourcing.