Material Storage

Systems
For space efficiency and storage
density

Storage Principles
High storage density
Minimum travel distance
Ease in material movement
Ease in material storage and
retrieval
Material & human safety

Benefits of Scientific Storage

Ensures space economy
Enhances warehouse throughput
Ease in material location and tracing
Ensures security, safety and
housekeeping

Storage Methods
Block Storage
Pallets
Racks
Shelves
Bins
Bulk storage - silos
Automated Storage &
Retrieval

Storage Methods
Block Storage

Advantages
Simplest system
No investment
Stacking on platform or floor
Wide variety of products can be stored
Disadvantages
Limitation on stack height
Loading / unloading problem

Storage Methods
Rack storage

Pallet Storage
Advantages

Helps in optimum utilization of storage space

stability of products during Increases transportation
Lower handling cost due to unitizing
Increases speed of material flow
Reduces frequency of material handling
Facilitates handling loads with machines

Disadvantages

Does not give compete protection to product from

environmental effects

Space Saving Systems:

Mobile Storage Systems

Cantilever Rack

AS/RS Machines

Load Unitization
The unit load is constructed by bringing together
large number of individual items of identical
configuration, so as to make a large load, which
ensures convenience during storage, handling and
transportation

Pallet storage

Material Handling Systems

For
exploiting productivity potential in
logistics

Material Handling Principles

Standard equipment should be preferred
to keep low capital investments
Equipment designed for maximum
continuous flow should be preferred
Portable or movable equipment to be
preferred .
Ratio of dead weight to pay load should
be minimum for handling equipment
Gravity flow should be incorporated in the
system design

Material Handling Systems

Manual
Mechanised
Semi-automatic
Automatic

Selection Criteria:
Material Handling Systems
Volumes to be handled
Speed in handling
Productivity
Product characteristics
(weight, size, shape)

Nature of the product

(hazardous, perishable, crushable)

Material Handling
Manual Trolley
Versatile
For smaller loads
For short distance

Material Handling

Forklift

Manual or mechanized
Portable
Large distance travel
Medium & large loads
handling
Vertical movement
Intermittent duty
Directional undeliverable

Material Handling
Overhead Crane
Carry heavy loads
Continuous duty
Size shape no bar

Counterbalanced Lift Trucks

Straddle Reach Trucks

Turret Trucks

Material Handling
Material handling at sea ports

Advanced Material Handling Systems

Pneumatic tube system
For handling material in powered form

Semi-automatic system
Sorting devices
Robotics

Automatic guided vehicle system

Material handling on a fixed path
computer operated guided vehicle
Speed of operation 150-250 feet per minute

Automatic system
Human factor eliminated
Operator required for to programming and controls
Productivity

Packaging
For Safe Product Handling,
Movement and Storage

Consumer vs. Logistical

Packaging
Consumer Packaging
- Product packaging
- Designed for marketing
objectives

Industrial Packaging

- Unit Load Packaging

- Container packaging
- Designed for distribution

objective

Logistical Packaging
Requirement

Distribution Needs
Material handling arrangement
Transportation modes Maruti ,M&M,
garments
Storage conditions stacking of TVs
Communication
Product Environment
Type
Dimensions - vacuum packed
Characteristics
Cost Implications
Design
Material
Reusability

Logistical Packaging Materials

Corrugated board
Advantages Easy to fabricate ,Cheapest
alternative ,Light weight ,Easy to handle
,Waste can be recycled
Disadvantages Prone to easy damage
,Cannot take more load
Wood
Advantages
Readily available ,Easy to make ,Can be repaired
in-house,Takes loads upto 2000 kgs
Disadvantages Dimensional variation ,Nailing
may cause split in planks ,Prone to damage

Logistical Packaging Materials

Plastics
Advantages More durable than wood ,Cleaner
than wood pallets ,Can be machines moulded ,No
dimensional variations
Disadvantages Not disposable ,Strength lower
than wood ,Cannot be repaired
Metals
Advantages
Most durable ,Very strong,High
repairability,Designed for high capacity
loads,Excellent for liquid packaging
Disadvantages More expensive

Logistical Packaging

Export Packaging
Contents of package
Type of goods
Name of manufacturer
Name of consigner
Name of consignee
Country of origins

H a n d li n g
m a rk s

S h i p p e r 's c o d e

R iy a d h
v ia
D ubai
D S /PS/00965

P o r t o f d e s ti n a ti o n
C o n s ig n e e o rd e r n o

E n tr y p o r t
M UM BAI PO RT
G ro s s w t 2 5 0 K g s
N e t w t. 2 3 5 K g s
150x125x50 cm s

H a n d li n g m a r k s

W e ig h t
m a rk s

S iz e / m e a s u re n t
m a rk s

Containerization - Benefits
1. Inter-modal transportation possible
2. Leads to speedier delivery services
3. Door-to door service to customer
possible
4. Risk of transit damages and pilferages
reduced
5. Substantial reduction in logistical
packaging cost
6. Reduction in overall distribution cost

Container Types
20 ft container
6.1x2.4x2.6 meter
Volume -33.3 m3

40 ft Container
12.192x2.438x2.896 meters
Volume-76 m3

Dry type and Refrigerated

End loading, top loading

Transportation
Management

The backbone of logistics

Principles
Economy

of scale TL and LTL

Economy of distance- tapering
principle
Density
Stowability
Market factors return loads

Tapering Principle

C
O
S
T
Distance

Transportation Modes

Road
Rail
Air
Waterways
Pipelines

Road Transportation
Advantages

Flexibility
Door to door service
Reliability
Cost- comparative
and negotiable
Access to remote
places

Disadvantages

Environmental
pollution
Varying handling
condition
Strong packaging
required
Slow speed

Rail Transportation
Advantages

Any type of commodity

can be moved
Low freight cost
compared
to road and air
Large carrying capacity

Disadvantages

Varying handling
conditions
Strong packing
required
Needs
loading/unloading
platforms
Low delivery reliability

Air Transport
Advantages

Disadvantages

Speed
Low packaging cost
Good security
Less risk

High Freight cost

Limitation on size
Needs airport facility

Water Transportation (Sea &

Inland)

Advantages

Cheapest freight cost

No capacity constrains
Size and shape no bar
No environmental problems

Disadvantages

Varying handling conditions

Strong packing required
Weather conditions affect
delivery
Slow movement

Nature of Traffic versus Mode

of Transportation
Mode

Nature of Traffic

Rail

Extracting
industries,
heavy
manufacturing, agricultural commodities

Highway Medium
and
light
manufacturing,
distribution between wholesalers and
retailers.
Water

Mining and basic bulk commodities,

chemicals, cement, agro-based products.

Pipeline

Petroleum, gases, slurry.

Air

Emergency, perishables, limited

marketing period, high value premium
products.

Cost Structure for Each Mode

of Transportation
Mode

Fixed Cost

Variable Cost

Rail

High- equipment terminals,

tracks etc.

Low

Highwa
y

Low-highways provided by
public funds

Medium- fuel,
maintenance.

Water

Medium- ships and equipment

Low-capability to
transport large
amount of tonnage.

Pipeline Highest-rights-of-way,
construction, control stations,
pumping capacity.

Lowest-no labour cost

of any significance.

Air

High-fuel, labour and

Low-aircraft and cargo handling

system.

maintenance.

Transport Mode Selection

Criteria
Speed
Frequency
Availability of service
Reliability
Consistency in delivery
Capability
Cost

Transhipment
Offloading from one ship and loading it on another.
Why ?
1.All services do not cover all ports in the world.
2. Ship size handling capacity at ports.
3. Political considerations.

Container Shipping