Transport mgmt system

1. Transportation
Management

2. Coverage
• Marine Transportation
• Air Cargo Transportation
• Courier and Cargo Operations
• Application of IT in Logistics and
Transportation

5. MARINE TRANSPORTATION
• THE WORD MARINE OR MARITIME MEANS SOMETHING TO DO WITH SEA
AND COMMERCE. IN COMON PARLANCE WHEREVER BOTH SHIPPING
AND PORTS ARE INCLUDED THE WORD MARITIME IS USED. WORLD
OVER THE WORD MARITIME IS ASSUMING GREATER SIGNIFICANCE AS
PORTS, SHIPPING, SHIPYARDS HAVE BECOME CLOSELY LINKED.
• IN THE INDIAN MARITIME SECTOR , THE SEA-BORNE TRADE IS 0F
SIZE 8.5 US$ Bn AND EXPECTED GROW 15%. THE TOTAL ACTIVITY
ENCOMPASSING PAN-INDIAN MOVEMENT OF CARGO (TOTAL
LOGISTICS) IS OF SIZE 60 US$ Bn WHICH IS ALSO EXPECTED GROW
15%.THE NATION'S MARITIME POLICIES, GOVERNMENT AND PRIVATE
INVESTMENT ETC ARE NOW GEARED TO ACHIEVE THIS GOAL

6. TERMS OF SALES
Ex-Factory
FOR Free on Rail
FOT Free on Truck
FAS Free Alongside Ship
FOB Free on Board
C&F Cost & Freight
CIF Cost, Insurance & Freight

7. TERMS OF SALES
Risk Transit + Insurance
Seller Buyer Seller Buyer
Ex-Factory To make the goods To load and arrange transport - Yes
available at the premises
FOR / FOT To load on the carrier and Cost & risk after loading - Yes
obtain clear transport
documents
FAS To place the goods To clear the goods for export, From seller's warehouse Yes
alongside the ship on the bear cost & risk from quay till the load port
quay onwards
FOB To place the goods on Bear the risk and costs after From seller's warehouse Yes
board and obtain clean B/L loading till goods placed on
board
C&F To pay cost and freight Bears the risk after the good From seller's warehouse Yes
necessary to destination pass the ship's rail till goods placed on
board
CIF Same as above with cost & Same as above plus bears the To arrange insurance
to arrange insurance cost of insurance from seller's warehouse
till destination

8. TYPES OF VESSELS
• PASSENGER SHIPS • TANKERS
• CRUISE SHIPS  CRUDE CARRIERS
• RO-RO FERRIES  PRODUCT CARRIERS
 CHEMICAL CARRIERS
• GENERAL CARGO SHIPS
 UNIT LOAD • LIQUIFIED GAS CARRIERS
 CONTAINER SHIPS  LNG VESSELS
 LIGHTER ABOARD SHIPS  LPG CARRIERS
• BREAK BULK
 T'WEEN DECK • REFRIGERATED CARGO VESSELS
 SINGLE DECK
• BULK CARRIERS
 HANDYMAX
 PANAMAX.
 CAPE SIZE

9. MARINE TRANSPORTATION
- KEY FACTORS
• PORTS
• INFRASTRUCTURE
• SUITABLE VESSELS
• CARGO HANDLING FACILITIES
• SERVICE PROVIDERS
• REGULATIONS

10. DIFFERENT PLAYERS
• SHIPPER / CONSIGNOR / CONSIGNEE
• SHIPPING LINES / AGENTS
• CHARTERERS / AGENTS
• CHA / FREIGHT FORWARDER / CLEARING AGENTS
• CUSTOMS
• PORT AUTHORITIES / TERMINAL OPERATORS
• CONTAINER FREIGHT STATIONS
• SURVEYORS
• INSURANCE COMPANIES

11. PORT OPERATION
• TRAFFIC DEPT
• MARINE DEPARTMENT
• WAREHOUSE / BONDED STORAGE
• CARGO HANDLING
• SECURITY
CONTAINERIZATION
• FIRST CONTAINER SHIPPING IN US – 1956
• INTERNATIONAL CONTAINER TRANSPORT (TRANS
ATLANTIC) – 1966
• TRANSPACIFIC CONTAINER TRANSPORT – 1968
(700 – 1000 TEU)
• 1971 (2000 – 3000 TEU VESSELS)
• 2002 (7000 TEU VESSELS)
• 2005 (8000 – 18000 TEU VESSELS)

12. NEED OF CONTAINERIZATION
• OCEAN CARRIERS OR SUPPLY CHAIN
ENABLERS
• ONE STOP SHOP IN THE SUPPLY CHAIN
• CONTAINER AS SHIPPING UNIT
• REDUCED SHIPPING COST
• RAPID TRANSIT TIME
• FACILITATES "JUST IN TIME" INVENTORIES

13. ADVANTAGES
• EFFICIENT CARRIAGE (WAREHOUSE TO WAREHOUSE)
• REDUCED HANDLING
• REDUCED RISK OF THEFT / PILFERAGE
• ECONOMY IN INDIVIDUAL PACKING
• PROTECTION AGAINST SEA / FRESH WATER DAMAGE
• PROTECTION AGAINST EXTERNAL CONTACT DAMAGE
• REDUCED RISK OF MISDELIVERY
• BETTER SECURITY

14. TYPE OF CONTAINERS
• GP DRY FREIGHT CONTAINERS
• HALF HEIGHT CONTAINERS
• TANK CONTAINERS
• FLAT RACKS
• OPEN TOP CONTAINERS
• REFRIGERATED CONTAINERS
• VENTILATED CONTAINERS

15. TERMINOLOGY APPLICABLE TO
CONTAINERS
• STUFFING / DESTUFFING
• HOUSE STUFFING
• FCL – FULL CONTAINER LOAD
• LCL – LESS THAN FULL CONTAINER LOAD

16. NATURE OF CARGO DAMAGE
• MECHANICAL -BREAKAGE, DEFORMATION
• ORGANIC - DECOMPOSITION
• CHEMICAL - CHANGE OF STATE
• DISAPPEARANCE - PILFERAGE/MISPLACING
• SHORTAGE

17. EXPORT/IMPORT DOCUMENTATION
• CONCERNERD PARTIES
• EXPORTER/SHIPPER/CONSIGNOR
• CUSTOM HOUSE AGENT
• CUSTOMS

18. DOCUMENTATION
REQUIREMENT(IMPORT)
• ORIGINAL BILL OF LADING DULY  CATALOGUE
ENDORSED  INSURANCE CERTIFICATE
 CERTIFICATE OF ORIGIN
• COPY OF BILL OF LADING
 LETTER OF CREDIT
• IMPORT LICENCE
 SIGHT DRAFT
• INVOICE  SSI/DGTD REGISTRATION
• PACKING LIST CERTIFICATE
• DECLARATIONS (CUSTOMS/GATT)  SALES TAX REGISTRATION
DETAILS (FOR MOVEMENT OF
• ORDER/INDENT
GOODS)
• ORDER  CERTIFICATE FOR LOCAL
CONFIRMATION/ACCEPTANCE AGENCY COMMISSION
• PROFORMA INVOICE/QUOTATION  IMPORTERS/EXPORTERS CODE
NUMBER ALLOTTED BY DGFT
• WRITE-UP

19. SECURITY CONSIDERATIONS (POST 9/11
SCENARIO)
– US
 CONTAINER SECURITY INITIATIVE (CSI) IMPLEMENTED BY US CUSTOMS IN
JANUARY 2002
 AUTOMATED MANIFEST SYSTEM (AMS) OR 24 HR MANIFEST RULE
IMPLEMENTED FROM 2ND DECEMBER 2002
 C-TPAT(CUSTOMS-TRADE PARTNERSHIP AGAINST TERRORISM)
EFFECTIVE FROM 25 MARCH 2005

20. SECURITY CONSIDERATIONS (POST 9/11
SCENARIO)
• INTERNATIONAL
 ISPS (INTERNATIONAL SHIP & PORT FACILITY SECURITY
CODE
 IMPLEMENTED FROM 1ST JULY 2004
 SHIP SECURITY PLAN
 PORT FACILITY SECURITY PLAN
 SHIP SECURITY OFFICER
 COMPANY SECURITY OFFICER
 PORT FACILITY SECURITY OFFICER
 SECURITY LEVEL-1
 SECURITY LEVEL-2
 SECURITY LEVEL-3

21. Evolution of Air Cargo
• Airmail.
• India: pioneer of 1st airmail flight in
Feb 1911.
• Air Cargo: by-product of airline
passenger operations.
• Freighters:
– Increased direct demand.
– Contribution to airline operating
revenues.
– Emergence of Integrators.

22. Challenges to Air Cargo growth
Source: Boeing

23. Growth of Air Cargo
Source: Boeing

24. Growth of Air Cargo
Demand for Air Transport Has Outpaced the U.S. Economy
Air Travel and Air Cargo vs. Real GDP
Source: MIT/ICAT Sources: ATA Annual Reports and U.S. Department of Commerce
(Bureau of Economic Analysis) via www.bea.gov/bea/dn/gdplev.xls

25. Growth of Air Cargo
India: Air Cargo Growth vs. GDP Growth
50.0%
40.0%
30.0%
20.0%
Dom
Intl
10.0%
Dom + Intl
GDP
0.0%
-10.0%
-20.0%
-30.0%

26. AIR PORT STATISTICS OF MAJOR METROS
DELHI KOLKATTA M UM BAI CHENNAI BANGALORE
2004 - 2005 2004 - 2005 2004 - 2005 2004 - 2005 2004 - 2005
Export Import Export Import Export Import Export Import Export Import
Apr 12102 6721 1354 778 12369 6924 6218 4732 1637 1855
M ay 11181 7467 1260 1092 12222 7491 5780 5108 1759 1630
Jun 11349 7563 1412 1021 12361 7680 6829 5763 1415 1821
Jul 11466 7424 1622 1134 11687 8228 7205 5684 1541 1854
Aug 12530 7125 1529 1127 10127 8147 6653 4769 1500 1700
Sep 12549 7571 1790 1261 12473 8560 6709 5060 1640 1874
Oct 13321 8048 1863 1188 14036 8774 6829 5637 1633 1974
Nov 11726 8069 1970 876 11954 8383 6421 4876 1601 1759
Dec 11700 8659 1687 1041 12673 10926 6532 5750 1779 2252
Jan 12802 7139 1563 890 12211 8413 6897 5275 1775 1808
Feb 10887 6006 1410 875 12259 7989 7718 4814 2092 1772
M ar 14669 7804 1641 1368 12216 8320 8356 6636 2020 2255
TOTAL 146283 89595 19102 12651 146589 99836 82147 64105 20393 22555

27. Air Cargo Growth: Success Factors
REPOSITIONING
• Air Cargo as a distribution
and
supply-chain support.
• A mode of transportation to
a critical infrastructure for
business and trade.

28. Air Cargo Chain
Integrators
Shipper
All- cargo-Air lines
Forwarder Forwarder consignee
Combination carriers
Customers interact
Postal authorities at origin and
destination

29. Players in Air cargo transportation

30. Critical Success Factors
UNDERSTANDING BUSINESS & INDUSTRY NEEDS
GOODS NEEDS COMPATIBLE INDUSTRY
SEGMENTS
• Perishables • Reliability • RMG
• Just-in-time • Speed • Automotive
• High value • Security • Computer/IT
• High security • Information • Telecom
• Emergency • Consumer Durables
• Project Goods • Electronics
• Floriculture
• Diagnostics

31. Critical Success Factors
• Infrastructure
– Compatible ground feed
• Last-mile
transportation:
surface
• Network
• Customs
• Regulatory Expertise
• Ground-Handling
– Air service oriented to
business needs
• 80% of goods will be
manufactured
in countries other than
where they
will be purchased.
• Reliability

32. Critical Success Factors
• Technology
– Integrated systems across the
value-chain
– Tracking in real-time
– Customer software
– Customer Relationship Management

33. CHALLENGES
• Capacity: support to build air
infrastructure
– Emergence of the low-cost airline
– Freighter conversions: old aircraft
– Connectivity: production to
consumption
• Costs
– High & volatile prices of ATF
• Regulatory support for speedy
distribution
– Ground time
– Charters

34. Emerging Trends in Air cargo
• Growth rate of air cargo traffic has lately been
consistently higher than passenger movement.
• Development of some airports as cargo hubs:
example : development of cargo village at Dubai
• Use of secondary airports and multi modal transport:
example: development sea-air cargo linkage at
Sharjah
• Joint ventures and partnerships example: Jet air
with Blue dart

35. Role of integrators and service
providers

36. Nature of integrators services
• Integrators started principally as express operators
• Initially they work through Hub and Spoke
distribution system
• Integrators operate a vertically integrated structure
• Integrators provide tailor made door-door express
services with guaranteed delivery time
• They integrate both forwarder and airline functions
with in the air cargo chain

37. Specialized Services Offered
• Multi-modal Shipping
• International Freight forwarding
• Customs handling
• Consolidation
• Break-bulk and de-consolidation
• Letter of credit
• Insurance

38. WHO IS A FREIGHT FORWARDER?
• The freight forwarding professional advises clients on
– the best rates,
– modes of transporting goods to or from any area in the world.
• The forwarder is the exporter’s agent and provides the traffic
and documentation services consistent with routings and
• the exporter’s needs, arranging for carriage with vessel
operators, trucking companies and airlines specializing in the
consolidation of container-load shipments.
• Using the many resources at their disposal, forwarders find
the “right match” of services available so that products are
moved by the most timely and cost-effective means.

39. WHO IS A FREIGHT FORWARDER?
• “”Customized” services to fit the clients’ operational
needs are forwarder’s specialty. Forwarders
coordinate arrangements for storage, pick-and-pack
operations, consolidations or full container
movements as well as inland transportation to
provide clients with true door-to-door service.
• From assisting with initial quotations or preparation of
proforma invoices, to banking clients’ documents for
collection, the professional ocean and or air freight
forwarder is and essential component in the
facilitation of international trade.

40. WHAT IS THE VALUE ADDITION OF A FREIGHT
FORWARDER?
• The sheer volume of shipping space allows the freight forwarder
to offer reduced prices while ensuring available space during
peak season.
• Access to the on-board infrastructure essential to handling
refrigerated cargo, garments on hangers, and other special
needs.
• Forwarding experts help ensure that shipment is in compliance
with a country's import/export regulations.
• Less-than-container load (LCL) shipments can be consolidated,
allowing to piggyback with other clients - and significantly
reduce expense.

41. WHAT IS THE VALUE ADDITION OF A FREIGHT
FORWARDER?
• Access scheduled reports, or create them as per
needs dictate through a tracking system.
• Long-term relationships with major carriers mean
that ability to negotiate contracts
• Milestone notification via e-mail and text pager
• Electronic Data Interchange (EDI) connectivity
with carriers and customers
• Generate customer-specific rates quotes

42. WHAT IS EXPORT
DOCUMENTATION?
• The paperwork that is required for an
export sales transaction
• The means by which the shipping process
is facilitated and recorded.
• Documentation is essential for moving
goods through the channels of distribution,
transferring responsibility or possession,
clearing goods through customs, and
facilitating payment according to the
agreed upon terms.

43. WHAT IS THE PURPOSE OF EXPORT
DOCUMENTATION?
• Export documentation provides evidence that
the negotiated terms between the buyer and
the seller have been complied with.
• Export documentation provides important
information that is used by the seller, the
freight companies, governments, and the
buyer.

44. THE KEY INFORMATION CONTAINED IN
EXPORT DOCUMENTS
• Description of the goods • Identity of the
• Mode of transportation seller/shipper
– rail, air, ocean • Identity of the buyer
• Terms of sale • Terms of payment
– Who pays for what? • Shipping instructions
• Origin of the goods • Evidence of shipment

45. COMMON EXPORT DOCUMENTS
• Pro forma invoice • Inspection certificate
• Bill of Lading • Insurance certificate
• Certificate of Origin • Dock/warehouse
• Packing List receipt
• Commercial Invoice • Letter of credit
• Shipper’s export • Draft
declaration (SED)
• Consular Invoice

47. Hub and Spoke Model
• Derives its name from the Bicycle wheel
• Model of no. of spokes jetting out of a central
hub
• Location – Hub, Paths leading to destination
from the point of origin are spokes.

48. Difference between models
• Point to point system
- more routes, less
frequency
- Hub and spoke
- Less routes, more
frequency

49. Hub and spoke structure of UPS

50. Hub and spoke structure of UPS
• The first step is the pickup; specific routes are assigned and regular
stops are planned according to a tight schedule. The package will
inevitably be send to the hub for consolidation. The hubs are central
sorting facilities located throughout the world. All the smaller local
operating centers have to take their parcels to the nearest hub which
can be considerably far since there are only 6 hubs in the world.
• At the hub, packages are unloaded and sorted according to the
geographical location where they are bound to. Consequently, all the
parcels are divided to be loaded in the courier leading to the right
destination.
• Deliveries are either made on the ground by cars and trucks.

51. Leveraging Logistics For Powering Profits
Role of Technology in Logistics
• Purpose: more reliability, accuracy, real time info., quality
• Optimization Systems
• Automatic Identification- Bar coding, RFID
• Location based system
• Voice based Communication
• Smart Containers
• Warehousing System

52. Leveraging Logistics For Powering Profits
Optimization models for SCM

53. Leveraging Logistics For Powering Profits
Supply Chain Network Optimisation
• Distribution Center (DC) location analysis
– Which existing DCs should remain open or be expanded? Which existing DCs should
be shut down?
– Which new DCs should be opened and with how much capacity?
– What is the mission of each DC (e.g., which products does it handle and/or store in
inventory)?
– What equipment (e.g., flow-through sorters, conveyors, refrigerated storage areas) is
needed at each DC to support its mission?
– Which DC or DCs will serve each customer or market?
– Which plant or supplier will replenish each DC for each product?

54. Leveraging Logistics For Powering Profits
Supply Chain Network Optimisation
• Worldwide sourcing of manufactured product
• Tactical supply chain planning
• Production scheduling
• Vehicle routing
• All on Realtime basis

55. eTracK
Using eTracK watch over your fleet with…
The Third Eye
R
The Third Eye

56. UNIQUE FEATURES OF eTracK
• No driver intervention
• A fully automatic Real time system.
• Location details are sent automatically at pre-determined
intervals from remote locations.
• Frequency of reporting can be remotely changed or even
switched off/on.
• Access to location data is through
24X 7 hours
– Secured internet access
anywhere in the world, on a
tabular column
– Toll free number 1-600-44-0550
– or by SMS, fax, Email
– Mobile Query SMS
– Graphically on a GIS system
without any royalty payments.

57. Leveraging Logistics For Powering Profits
What RFID can do for you
• RFID-Steak: where the cow was raised, where it was fed,
where slaughtered
• RFID- product: which country has produced, Is it organic?,
temperature history of the product
• Recovery lost or stolen goods
• Better recycling efforts for better environment
• Self checkout at stores
• Ability to reduce counterfeit drugs
• Better supply chain management

58. Leveraging Logistics For Powering Profits
Voice Technology- Distribution Centre
• Market is worth $1.5 billion
• Wal mart, Nabisco Biscuits, VSFood Service, UPS, Saturn,
Timken
• Warehouse picker is informed by headset speech instructions
• Operator confirms the isle and pick location through 12 digit
code
• Quantity to be picked is instructed
• Benefits of speech Technology
• Order accuracy(99.3% to 99.8%) increased productivity
• Real-Time inventory information
• Support for multilingual operations

59. Leveraging Logistics For Powering Profits
Smart Containers
• Required Performance
• Monitor and support –an access to the inside of the
container
• Must report its position throughout the supply chain
• Must send manifest data etc for the container itself
• RFID with satellite communication
• GPS has dead spots and visible antennas
• RFID with satellite communication is a must
• Sea-cure satellite system

60. Leveraging Logistics For Powering Profits
TRUCK / DRIVER PRODUCTIVITY
• Tracing and tracking technology linked with
ERP ( Through iview in SAP)
• Onboard computer systems
• Alert monitoring systems
• Load plans and transport plans
• Trailers with side loading facility

61. Leveraging Logistics For Powering Profits
WAREHOUSING OPERATIONS
EFFICIENCY
• Cross Docking opportunities
• Cross Docking opportunities improve with
completion of Golden quadrilateral.
• Dynamic blending of physical operations with
Information systems
• RFID systems introduction

62. Leveraging Logistics For Powering Profits
AUTOMATED DELIVERY SYSTEMS
• Tracking of products everywhere
• Invoice adjustments by drivers
• Less driver time spend on Paperwork
• Communication with mobile Assets made
possible
• Electronic Billing
• Wireless technologies in Warehouse,
customer, sales ,cab etc.

63. PERVASIVE COMPUTING
• Building Loads
• Route optimization
• Dynamic routing
• Warehouse Functions
– Multiple Pick slips
– Inventory checking
– Product replacement
– Pallet and layer building
– Labelling

64. Leveraging Logistics For Powering Profits
GIS Based Reporting
• Very user friendly reporting
• Automatic Route planning is possible on PC’s
• No license fee on GIS maps
• Possible to create multiple layers on high consumption points/
population etc
• Demand and Distribution data can be integrated

65. Leveraging Logistics For Powering Profits
AMAZING AMAZON
• Reached first ever profit IV Qtr 2001
• Fewer items were put in wrong locations ( 12% to 4% )
• Reduced inventory through better forecasting ( 18% )
• Consolidation of truck despatches ( 0% to 40% )
Ability to handle complex task of distribution through IT

66. Leveraging Logistics For Powering Profits
General Mills
• High empty truck kilometers
• Went for consolidation with Kellogg, Quaker oats etc. through
web enabled transport exchange etc.
HARRY POTTER BOOK
• 1,50,000 copies to be delivered just minutes before
midnight of July 8.
• Yellow corp. No 1 Trucking company could do
through the use of planning, Tracking systems etc.

67. Leveraging Logistics For Powering Profits
Organisation Initiative Benefits
UPS Package tracking via ring scanners Reduced cost
at DCs, handhelds on trucks, wirelessUser efficiency
LAN etc. Data integrity
DELL Use of Ariba Buyer 62% reduction in time
61% reduction in cost
Schneider Tracking trucks and trailers Enhanced utilisation
FORD use of where Net yard management
System
P&G Use barcode, RFID Cut inventory from
65 days to 30 days
Thank You