Prof. Lalith Edirisinghe CINEC Campus

1. Logistics
Free Seminar
series conducted
in Schools
Presented by
Professor Lalith Edirisinghe
PhD in Transportation Planning and
Logistics Management
6/4/2020 1
CINEC Campus, Malabe

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Business Studies
Syllabus
Unit 10
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(Logistics) jHdmdrj,
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6/4/2020
CINEC Maritime Campus- Malabe, Nugegoda, Trincomalee,
Jafna, Fiji, Seashells
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3. Key words
Transportation
Warehousing
Logistics
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4. What is Transportation?
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Different Transport Modes
1. High ways
2. Rail
3. Water ways
4. Airways
5. Pipe Line
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6/4/2020
CINEC Maritime Campus- Malabe, Nugegoda, Trincomalee,
Jafna, Fiji, Seashells
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6. Warehouse
A warehouse is a commercial
building for storage of goods.
Warehouses are used by
manufacturers, importers,
exporters, wholesalers,
transport businesses,
customs, etc.
6/4/2020
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7. WAREHOUSING
AND STORAGE
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Warehousing supports time
and place utility by allowing
an item to be produced and
helps for later consumption.
Warehouse layout,
design,ownership,
automation…

8. JIT
Just-in-time
Reduces inventory, increases customer service level
Needs close coordination
Aim to reduce waste and redundant inventory by delivering
products, components, materials when they are needed.
Just in time

9. What is Logistics?
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10. Logistics
Logistics is the process of
planning,
implementing and
controlling
the efficient, effective flow and
storage of
raw material,
in-process inventory,
finished goods,
services, and
related information
from point of origin to point of
consumption
for the purpose of conforming
to customer requirement
(Council of Logistics Management)
6/4/2020
CINEC Maritime Campus- Malabe, Nugegoda, Trincomalee,
Jafna, Fiji, Seashells
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Transport is important
because it enables trade
between people, which
is essential for the
development of
civilizations
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12. Logistics
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කිරීසේ ශා ේරය
6/4/2020
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Jafna, Fiji, Seashells
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13. 7 R of
logistics
The Right Goods
The Right Quantity
The Right Place
The Right Time
The Right Condition
The Right Price
The Right Information

14. Logistics activities
• Customer service
• Demand forecasting
• Distribution
communications
• Inventory control
• Material handling
• Order processing
• Parts and service support
• Plant and warehouse site
selection
• Procurement
• Packaging
• Reverse logistics
• Traffic and transportation
• Warehousing and storage
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15. Military Logistics
• Following the World War II, logistics
began to receive increased
recognition and emphasis.
• In the Persian Gulf War in 1990-1991,
the ability to efficiently and
effectively distribute and store
supplies and personnel were key
factors in the success of the US
Armed Force.
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16. REVERSE
LOGISTICS
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Reverse flow of goods, services and related
information because of recycling, reusing and
disposal activities.
Returns may take place because of a problem with
the performance of the item or simply because of
the customer changed his or her mind.
Return goods handling is complex and costly.
The cost of moving a product backward nearly as
much as nine times as high as moving the same
product forward.

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6/4/2020
CINEC Maritime Campus- Malabe, Nugegoda, Trincomalee,
Jafna, Fiji, Seashells
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18. Comparison of
transport
modes
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19. The Flow of
Investment
and the Role
played by
Logistics
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20. 6 Pillars of Logistics Performance
(Source: The World Bank IBRD)
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Logistics ranking is assessed
based on 6 components
Component Weight*
Customs 0.41
Infrastructure 0.41
Ease of Arranging International
Shipments
0.41
Logistics Quality & Competence 0.41
Tracking and Tracing 0.41
Timeliness 0.40
*Those are not just weights, but factor loadings calculated based on variance /
covariance structure

21. Global
Perception
(LPI)
Source: The World Bank
6/4/2020
CINEC Maritime Campus- Malabe, Nugegoda, Trincomalee,
Jafna, Fiji, Seashells
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Indicator
India
Pakistan
SriLanka
Bangladesh
Maldives
Nepal
Bhutan
Afghanistan
Customs 46 66 79 104 83 151 134 146
Infrastructure 45 70 123 105 85 133 153 163
International
Shipments
38 62 103 77 118 129 122 152
Logistics Quality &
Competence
38 73 67 93 98 147 124 156
Tracking and Tracing 42 74 82 99 102 116 141 165
Timeliness 45 75 87 86 130 119 150 154
Logistics Performance
Indicator (LPI)
42 69 86 91 100 136 140 160
South Asia’s world rank in the Logistics Performance
Indicator (LPI)
Connecting to Compete -LPI results across four editions 2010, 2012, 2014, and 2016 (No. of
countries evaluated 167)

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Indicator
LPI Rank
Germany
SriLanka
Singapore
UnitedArab
Emirates
Somalia
Customs 2 79 1 18 167
Infrastructure 1 123 3 16 167
International Shipments 7 103 4 13 167
Logistics Quality &
Competence
1 67 5 23 167
Tracking and Tracing 1 82 9 19 167
Timeliness 2 87 6 18 167
Logistics Performance
Indicator (LPI)
1 86 3 19 167
LPI Score
Germany
SriLanka
Singapore
UnitedArab
Emirates
Somalia
4.07 2.52 4.11 3.67 1.49
4.38 2.24 4.22 3.92 1.54
3.79 2.62 3.89 3.64 1.72
4.20 2.84 4.06 3.71 1.72
4.21 2.71 4.02 3.78 1.51
4.41 3.08 4.35 4.06 2.03
4.17 2.68 4.10 3.79 1.67

23. Comparison
of key
Logistics
Factors
(Imports)
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Jafna, Fiji, Seashells
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Criteria
Germany
Singapore
UnitedArab
Emirates
India
Clearance
time (days)
Without
physical
inspection
1 0 1 2
With physical
inspection
2 1 1 3
Physical
inspection
% of import
shipments
3 1 14 22
Multiple
inspection
% of shipments
physically
inspected
2 1 4 4
SriLanka
1
2
37
13
Source: IBRD –TheWorld Bank (2016)

24. Improving
Logistics in Sri
Lanka
Competence Building through
Enhancement of Knowledge
Smart Capacity Building
Optimization of available Resources
Identifying and Elimination of
Obstacles in the Operational Process
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25. Air Cargo
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26. Leverage on
Sri Lanka’s
Comparative
Advantage
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27. The process of an export shipment
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Jafna, Fiji, Seashells
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Exporter make
a Booking
Shipping line release an
empty container to exporter
Exporter stuff
the cargo
Laden container
sent to port
Container loaded on boardShip sails to
destination

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29. Optimizing
Existing
Resources
Maritime Industry Plays a
major role in Sri Lanka’s
LPI
It is Beneficial for Sri Lanka
to Promote Investments in
Logistics Services and
Logistics Infrastructure
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30. Maritime industry and world trade
• Shipping is a “derived demand” of world
trade
• Demand for shipping is derived from the
demand of goods between countries
• Size of world trade decides the demand for
shipping
• World Trade Organization (WTO) provides a
platform to decide future strategies related
to trade
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31. "Shipping: Indispensable to the world"
• A single ship can carry enough grain to feed nearly four million people
for a month;
• Another, enough oil to heat an entire city for a year,
• And others can carry the same amount of finished goods as nearly
20,000 heavy trucks on the road.
International Maritime Organization
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32. Opportunities for Regional Cooperation
1. The region is showing greater opportunities for
shipping and logistics businesses
2. One Belt- One Road Initiative
• India High-speed rail cooperation;
• industrial parks, Gujarat and Maharashtra
• Pakistan China–Pakistan economic corridor
• roads and railway
• port upgrades, including airport
• power plant and roads
3. Sri Lanka Deepwater port in Hambantota
4. China Merchants Holdings International
investment in Port of Colombo
Source: The Maritime Transport Review- 2016
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33. Regional
Cooperation to
Improve
Occupational
Standards
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IORA team inspecting Port Patrick-
in Sydney Australia
Sri Lankan
representatives of IORA
Port Occupational
project in the SL High
commission office in
Canberra to brief the
project development
The members of IORA Port
Occupational project in port of
Colombo
2015
Team visiting the “Ship
in Campus” at CINEC
–Malabe- Sri Lanka
2016

34. Trade
• Business Syllabus 11.0 is about Trade
• What is the connection?
• Exporter >> Importer
• Trading Agreements>> Border Management
(Customs)
• Raw materials>>Manufacture>>Finished
goods
• Global Logistics

35. Trade Agreements and Logistics
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Sri Lanka Participation in Goods and Services RTAs

36. Summary
• Transport
• 4 key modes in Sri Lanka
• Warehousing
• Logistics
• 7R’s
• Sri Lanka LPI
• Revers Logistics
• Global Logistics
• Shipping is derived demand
• Most important mode for Sri Lanka is Shipping
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Jafna, Fiji, Seashells
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