International Logistics

Group No.-7 Vivek Antil (03) Mandar Joshi (15) Kaustubh Nimdeo (32) Abhinav Pathak (37) Ramakrishna Anand (41) Amit Vatnani (56)

Inland Container Depot & Container Freight Stations

An Introduction
What is an Inland Container depot? What is Container freight station? Distinction between ICD & CFS?

Key pillars of ICD & CFS

Rail Siding
Container yard

Warehouse
Gate Complex

Operation and Documentation Imports

Assessme nt of goods Importer and files bill of payment entry of duty

Taking goods out of customs area

Operation and Documentation Exports

Goods brought to CFS under shipping bill Cargo received by custodian

Step I

Stuffing of goods in container Step II CBT is sealed by customer officer

Step III

Ready for exports

Functions of ICD and CFS

The primary functions of ICD and CFS are :
Receipt and dispatch/delivery of cargo Stuffing and stripping of containers Transit operations by rail/road to and from serving ports Customs clearance Temporary storage of cargo and containers

Benefits of ICD & CFS

The following benefits are envisaged from an ICD/CFS :
Concentration points for long distance cargos and their unitization Service as a transit facility Reduced level of demurrage and pilferage No customs required at gateway ports Competitive transport cost Reduced inventory cost and increased trade flows

Procurement of Raw materials

Procurement is acquisition of goods and/or services at the best possible total cost of ownership, in the right quantity and quality, at the right time, in the right place and from the right source

Importance
Acquired goods and services must be available to the firm for usage at the desired time for efficient utilization Procurement cost often ranges from 60% to 80% of the firms revenue

Objectives
I. II. III. IV. V. To support Operational requirement To manage purchasing process efficiently To select, develop and maintain sources of supply To develop strong relationship with other functional groups To support organizations goals and objectives 10

Procurement Process
Planning Specification Evaluation Relationship management Transportation and holding costs Implementation Monitoring and improving
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Procurement Process
Planning
Honest assessment of international sourcing opportunities Management of more variable lead times Standardized process

Specification
Knowledge about markets, products, and procedures Terms of sale

Evaluation
Advantage over domestic sourcing Additional Transportation cost Currency shifts ISO certification

Relationship Management
Expectations need to be exchanged Win-win strategy
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Procurement Process
Transportation and Inventory Holding Costs
Service and cost fluctuations Higher transportation costs Greater inventory holding costs Customs and other inspections Payment of import duty if applicable

Implementation
Higher chance of failure due to complexity High flexibility required

Monitoring and improving

Dynamic Continuous monitoring
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Additional Considerations
Child Labor Reduced Tariffs Foreign Trade Zones
Convenient transshipping points Pool of lower cost labor

Countertrade
Barter Buyback Switch trading Counter purchasing
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Documents
Sales Contract Letter of Credit
Bank undertaking of payment reducing the payment risks

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International Packaging

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International Packaging Issues

Packaging is instrumental in getting the merchandise to the destination in a safe, presentable condition. Because of the added stress of international shipping, packaging that is adequate for domestic shipping may be inadequate for international shipping. Packaging considerations that should be taken into account are environmental conditions and weight. Cost attention must be paid to international packaging.

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International Standards
PURPOSE: Harmonize requirements between signatory countries. International Standards help to ensure that import requirements have a scientific basis and are not used as unjustified trade barriers. International Standards provide guidance to countries developing import requirements. Less likely to be challenged under WTO if standards are followed.

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Packaging and Packing

Packaging:* Polythene Bags * Box made of card paper or card board * Box made of fibre board/plastic/acrylic/sheets. Wooden Boxes: The most useful forms of packing as these are strong enough to withstand the load places on the top of it without crushing or cousins damage. The weight of a standard wooden box should not exceed to 100 kg.

Fiber Board or Corrugated Board Boxes : Useful for shipment of nonfragile goods. .These boxes have light weight, saves in shipping cost with a good deal of strength, fair resistance to moisture, compression
Steel Drums:- Used for sending liquids in bulk. A drum should normally not exceed more than 250 kg. Second hand drums should be used only if the buyer has agreed to use.
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Labeling
Labeling informs the parties involved in the movement of exactly the nature and quantity of package contents. Labeling regulations generally attempt to (1) Force shippers to adhere to the specified product standards, (2) Restrict and control the use of additives, (3) Prohibit the use of misleading information, (4) Establish the standard description of products.

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Labeling requirements of different countries

The label should contain the following information Country of origin Specification of the product (Size, Weight etc) Lot number of consignment.

In Oman, use of adhesive label on product is prohibited. Label should also be printed in both Arabic and English. In Germany, the label on the textile item must indicate the origin of the fabric used In Canada, each package must carry label, printed in English and French.

Factor to be taken care * Include only relevant information * Use the language of importer's country, if possible * Check spelling of information, given on label. An error can lead the conclusion that the exporter is careless.

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Labeling requirements of different countries

The label should contain the following information Country of origin Specification of the product (Size, Weight etc) Lot number of consignment.

In Oman, use of adhesive label on product is prohibited. Label should also be printed in both Arabic and English. In Germany, the label on the textile item must indicate the origin of the fabric used In Canada, each package must carry label, printed in English and French.

Factor to be taken care * Include only relevant information * Use the language of importer's country, if possible * Check spelling of information, given on label. An error can lead the conclusion that the exporter is careless.

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Labeling requirements of different countries

The label should contain the following information Country of origin Specification of the product (Size, Weight etc) Lot number of consignment.

In Oman, use of adhesive label on product is prohibited. Label should also be printed in both Arabic and English. In Germany, the label on the textile item must indicate the origin of the fabric used In Canada, each package must carry label, printed in English and French.

Factor to be taken care * Include only relevant information * Use the language of importer's country, if possible * Check spelling of information, given on label. An error can lead the conclusion that the exporter is careless.

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Warehousing Management

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Warehouse Definition
Its a part of a firms logistics system that stores products at and between point-of-origin and point of consumption, and provides information to management of the status, condition, and disposition of items being stored. Warehouse- More than a storage facility

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Warehousing Activities

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Objectives of WMS
To provide a set of computerized procedures to handle the receipt of stock and returns into a warehouse facility

Model and manage the logical representation of the physical storage facilities (e.g. racking etc)

Manage the stock within the facility and enable a seamless link to order processing and logistics management in order to pick, pack and ship product out of the facility

Examples of WMS: ERP, RFID

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Types of Warehouses
Private Warehouse owned and operated by channel suppliers and reseller ; used in their own distribution activity Public Warehouse space that can be leased to solve short-term distribution needs Automated Warehouse extensive use of computer and robotics technology
Climate-Controlled Warehouse For products that need special handling conditions Distribution Centre serve as points in the distribution system at which products are received from many suppliers and quickly shipped out to many customers Cross Docking , Milk Runs, Hub and spoke model

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International Federation of Warehousing and Logistics Associations (IFWLA)

Legal office in London. 18 members (Major Members are India, US, UK, Canada, China, Japan, Australia) Purpose : Promotes the warehousing and logistics industry Collect, study and exchange information Views on matters of common interest to members Advance global connections and good relationships between members. Warehousing Logistics industry convention (annually) : Provides participants with unique opportunities to explore different business models, experience cultural venues and develop business connections.

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International warehouse Logistic Association(IWLA

Formed by merger of Canadian Association of Warehousing and Distribution Services (CAWDS) with the American Warehouse Association (AWA) Founded in 1891 Headquartered in Chicago

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Benefits of Partnering With an IWLA Member:

Increased shipment visibility Improved technology and service Local expertise in new or emerging markets Improved customer service through shorter shipment times Reduced inventory costs through better management Cost benefits through volume shipping discounts Risk reduction Increased expertise in supply chain security Reduced total delivered cost for your customer

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International Association of Refrigerated Warehouses(IARW)

Came into existence in 1891 Purpose : To facilitate storage of perishable foods which requires complexity of operating temperature controlled storage facilities.

IARW's goals and activities : Collecting information and encouraging the exchange of ideas Aggressively promotes more efficient distribution of services. Aids members in adopting new technology Advises members of legislation and regulations affecting the food industry, assists members in complying with U.S. and international regulations Participates in alliances with industry and international organizations having a common interest in the safe and efficient flow of food products around the world. All active members of IARW are also members and beneficiaries of the work of The World Food Logistics Organization(WFLO

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Central Warehousing Corporation

Came into existence in 1957 The Corporate Office is located at "WAREHOUSING BHAWAN, New Delhi CWC has 18 Regional Offices located in major state capitals of the country.

Purpose providing logistics support to the agricultural sector. It is one of the biggest public warehouse operators in the country offering logistics services to a diverse group of clients CWC is operating 469 Warehouses across the country CWS has a storage capacity of 9.98 million tonnes

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Services Provided by CWC

Storage ICD/CFS Services Bond facility Air Cargo Operations Container Train Operations Integrated Check Post Service Pest Control FESS(Farmers Extension Service Scheme

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International Insurance
One of the most complex issues in International Logistics The complexity of the field is substantial . Many of the risks are misunderstood The terminology is misleading The carrier offers limited coverage

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Documentation Required:
A bill of lading is a contract between the exporter and the carrier indicating that the carrier has accepted responsibility for the goods and will provide transportation in return for payment. A commercial invoice is a bill for the goods stating basic information about the transaction, including a description of the merchandise, total cost of the goods sold, addresses of the shipper and seller, and delivery and payment terms. A freight forwarder specializes in handling export documentation.

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Terminology:
Average: Loss incurred on an ocean voyage by a cargo owner . General Average Particular Average Barratry

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Causes of Losses:
Overboard Losses Jettison Fire Sinking Theft

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Marine Cargo Insurance:

Open Insurance: Insurance Contract with which a firm insures every international shipment it makes for a fixed amount of time . Special Cargo Policy: Customized option for every shipment. Hull Insurance: risk of damage incase of fire or sink .

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What doesnt come under Insurance

Improper packing Inherent Vice Ordinary Leakage Unseaworthy Vessel Nuclear War

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