Assignment Cover Sheet

This must be completed and added to the front of every assignment

Learner Name Himali Kaushalya De Silva

Learner Registration No. AP 00256 /OTL7L062022
Study Centre Name Apex Ed (Pvt) Ltd
Qualification Title OTHM Level 7 Diploma in Logistics and Supply Chain Management
Unit Reference No. J/618/1227
Unit Title Logistics Management
Submission Date 26th December 2022

Declaration of authenticity:
1. I declare that the attached submission is my own original work. No significant part of it has been submitted for
any other assignment and I have acknowledged in my notes and bibliography all written and electronic sources
used.
2. I acknowledge that my assignment will be subject to electronic scrutiny for academic honesty.
3. I understand that failure to meet these guidelines may instigate the centre’s malpractice procedures and risk
failure of the unit and / or qualification.

H.K. De Silva

Learner signature Tutor signature

Date: 26/12/2022 Date:

ASSIGNMENT COVER SHEET V3.0 | JULY 2019

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 Table of Contents

Part A.

Introduction ………………………………………………………………………….. 4
1. Current issues in logistics and their effects on the organization ………………. 4
2. Benefits of having an effective logistics management system in the organization 5
3. Advantages and disadvantages of different modes of transportation …………. 6
3.1. Road transportation
…………………………………………………………… 6
3.2. Pipeline transportation
………………………………………………………… 7
3.3. Sea transportation
……………………………………………………………… 8
3.4. Air transportation
……………………………………………………………… 8
3.5. Rail transportation
…………………………………………………………….. 9
4. Underlying operations of different modes of transportation ……………………. 9
4.1. Cost of different modes of transportation
……………………………………. 10
5. Factors that affect the selection of modes of transportation …………………….. 11
6. Infrastructures associated with each transport mode …………………………… 12
6.1. Road transport infrastructure
………………………………………………… 12
6.2. Sea transport infrastructure
…………………………………………………… 13
6.3. Rail transport infrastructure
………………………………………………….. 14
6.4. Air transport infrastructure
…………………………………………………… 14
6.5. Pipeline transport infrastructure
……………………………………………… 15

Part B.

1. Export and import regulations including custom procedures and tariffs ………. 16
1.1. Incoterms
………………………………………………………………………… 16
1.2. Import documentation in Sri Lanka

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 …………………………………………… 17
1.3. Export documentation in Sri Lanka
…………………………………………… 17
2. How tariffs and duties affect imported/exported goods ………………………….. 17
2.1. Tariff barriers
…………………………………………………………………… 17
2.2. Non-tariff barriers
………………………………………………………………. 18
3. Strategic aspects of warehouse management ……………………………………… 18
3.1. Strategies of selecting warehouse location
…………………………………….. 18
3.1.1. Factor rating method ……………………………………………………….. 18
3.1.2. Centre of gravity method …………………………………………………… 19

3.2. Warehouse designs/layouts

……………………………………………………… 20
3.3. Warehouse storage and rack selection
………………………………………… 20
3.4. Extent of automation
…………………………………………………………… 21
4. Operational issues in warehousing ………………………………………………… 21
4.1. Receiving issues and solutions
………………………………………………….. 22
4.2. Order picking issues and solutions
…………………………………………….. 22
4.3. Storage issues and solutions
……………………………………………………. 23
4.4. Dispatching issues and solutions
……………………………………………….. 23
5. Multi-level product packaging ……………………………………………………… 24
5.1. Primary packaging
……………………………………………………………… 24
5.2. Secondary packaging
……………………………………………………………. 24
5.3. Tertiary packaging
……………………………………………………………… 24

List of references ………………………………………………………………………… 26

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Part A.

Introduction.
As you are aware, Richard Pieris & Company PLC is a Sri Lankan manufacturer and
importer of lighting, furniture, plastics, rubber, automotives, and plantations. I would like to
create a thorough management briefing on the Logistics Management in my capacity as
Deputy Head of Operations. As you know, the process of organizing and carrying out the
effective storage and movement of commodities from the point of origin to the point of
consumption is known as logistics. Providing timely and cost-effective client service is the
aim of logistics.

1. Current issues in Logistics and their effects on the organization.

 Skilled manpower shortage.

The need for technically skilled labor has expanded with the development of
contemporary technologies. The majority of laborers are underqualified, overworked,
and lacking in the necessary skill sets to guarantee the effectiveness of the procedure.
Businesses in the logistics industry including us deal with high employee turnover,
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rising training costs, and ineffective HR divisions. Warehouses cannot produce the same
results if there aren't solutions to deliver the same services with fewer employees. This
results in slower overall product movement and lengthier delivery times for their
customers.

 Technological Barriers.

Third-world and developing countries' logistics businesses are increasingly in need of

cutting-edge technology. Only the largest logistics companies can afford the relatively
high cost of logistics technology. For logistics companies, answering issues like "who
will pay for it" is important. The supply chain's productivity has also suffered from a
lack of technology, which has increased expenses and mistakes. All facets of the
logistics sector are impacted by these drawbacks, including trucking, international
shipping, supply chain management, and cargo monitoring.

 Shortage of drivers.

For logistics organizations all across the world, driver shortages remain a serious issue.
Shippers can start building a better relationship with drivers by highlighting the value
and necessity of drivers. Due to the global driver shortage, delays are frequently possible
when carrying items to the warehouse facilities in addition to those that already exist at
the warehouses. Without the drivers, it would be unable to deliver items to their intended
recipients, which would just make the backlog worse.

 Environmental Regulations.

The expansion of the logistics and transportation infrastructure requires a large quantity
of space. Carbon emissions rise as a result, harming the environment. Many logistics
companies place a high premium on reducing greenhouse gas emissions, especially in
light of numerous studies showing the harmful impacts of extensive industrial supply
chains on the environment. The reliability and capacity of transportation systems will
likely be impacted by climate change, which will likely result in greater temperatures,
more intense storms and flooding, and higher storm surges.

 Inaccurate inventory.
When a warehouse worker tries to get product from an expected area and it is not there
or when they are instructed to store product into a spot that is already full, incomplete or
inaccurate records frequently become apparent. Making physical checks and attempting
to remedy mistakes takes time and effort, which frequently results in delayed shipments
and incorrect picks. Numerous of these problems are brought on by time-consuming,
inefficient human operations that produce erroneous data in the system. Using apps from
the warehouse execution system (WES) and other systems to automate data-recording
tasks is one way.

 Adapting to seasonal demand.

The warehouses have no control over shifting client demands. Customer demand varies
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 due to seasonal changes, economic cycles, popular products, and other reasons.
Regarding the fulfillment of orders, the changing client demand cycle presents
warehouses with significant difficulties. Sales may decline in some months while
demand may outpace supply in other months.

2. Benefits of having an effective logistics management system in the

organization.

 Preventive maintenance.

The planning and scheduling of vehicle maintenance can be a crucial part of supply
chain operations. Utilizing cutting-edge technologies like artificial intelligence (AI), the
internet of things (IoT), big data, and machine learning can assist firms in performing
inventory monitoring on a regular basis. Additionally, logistics management is aware of
how much inventory is required, which makes inspection and maintenance easier. As a
result, by avoiding equipment failure and unforeseen machine downtime, it increases the
reliability and life of the inventory.

 Boost business profitability.

By regulating and managing the ecosystem of the supply chain, the logistics
management system removes flaws and inconsistencies in the overall operations.
However, the corporation may be able to acquire a competitive edge by accurately
delivering the orders to the right clients. One of the main benefits of logistics
management, which can have an impact on the organization's success, is that it helps the
business obtain a comprehensive understanding of the operations.

 Reduce operational cost.

By automating and streamlining processes, the logistics management system has the
significant benefit of lowering overhead expenses. It has the capacity to regulate
inventory levels and implement a well-thought-out plan to assess demand and supply.
aggressively ensuring that the companies do not buy unnecessary logistics supplies.

 Increase customer satisfaction.

The timely and effective delivery of services is facilitated by logistics management.

Because consumers may become disappointed as a result of delayed deliveries, a
management strategy can consistently work to improve transportation practices and
avoid any delays. By offering better customer service and a smooth freight processing
process, more value may be added to the customer experience. Providing better
customer service may enhance the reputation of the firm or brand and increase income.
Therefore, effectively managed logistics results in an excellent overall customer
experience.

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  Efficient and productive delivery.

Logistics places a strong emphasis on simplifying procedures and boosting effectiveness

while maintaining business margins. By reducing resource waste, delivery productivity
is ensured without compromising on timely product delivery. By achieving quality
standards, lowering failures, faults, and deviations, logistics management systems may
ensure that delivery productivity is not harmed.

3. Advantages and disadvantages of different modes of transportation.

Road, Sea, Air, Rail and Pipeline, these are the top five transportation used in the logistics
sector. What we are shipping, where we are shipping from, and where we are shipping to
will determine which method we select. Even then, multiple approaches might be
appropriate. Understanding the benefits and drawbacks of each form of transportation is
crucial. We must also decide which method of transportation has the highest carrying
capacity based on the requirements. Continue reading for a detailed explanation of each
mode of transportation, as well as information on when and where each one performs best.

3.1. Road transportation.

Road freight is a well-liked option for shipping all kinds of commodities throughout the
world. It is most suited for circumstances in which goods must travel international
boundaries and for last-mile delivery to consumers' doors.

Advantages Disadvantages

 Compared to air or sea freight, road  Transporting goods via road might be
freight is subject to less regulations. more unexpected and take longer than
 Trucks are easier to track than ships doing it by air or sea because of
or airplanes since GPS can always unforeseen weather conditions or road
tell you where they are. closures.

 One of the most cost-effective  It is not appropriate for international

transportation options. travel.

 Quite easy to get to. There is a road  Compared to other forms of

system in every nation in the globe. transportation, trucks are simpler for
Rail and maritime networks cannot thieves to target.
be stated the same.  Size and weight restrictions apply.
 Based on the item’s, specialized  Seasonal problems may make roadways
transportation is simple to arrange. dangerous.
Hazardous items, perishable  Compared to other forms of
products, and practically anything transportation, there is a greater chance of
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 else may all be transported by road. accidents and breakdowns.
 Door-to-door delivery is feasible  Air and rail are faster than it.
with careful planning.
 If required, it is simple to change
the routes and times.
 Simple unloading, shipping, and
packing procedures
Table 01. Advantages and disadvantage of road transport.

3.2. Pipeline transportation.

For the transportation of appropriate liquids (such as petroleum commodities, which include
crude oil, refined fuel products, and liquid Petro-chemicals), gas, slurred coal, and some
ores and minerals that are suspended in water, pipeline transport is a non-containerized bulk
form of transportation.

Advantages Disadvantages

 They can move gases and liquids in  It is inflexible in nature.

a variety of ways.  It is constrained to a specific field of
 It uses minimal amounts of power. employment.
 It just requires a small amount of  Security preparations for this shipment
upkeep. are challenging.
 Transport via pipelines is extremely
safe and accident-free.

Table 02. Advantages and disadvantage of Pipeline transport.

3.3. Sea transportation.

The bulk of worldwide change is made out of sea freight. Ships deliver more than 90% of all
cargo. That's because ships can transport freight at a far lower cost and with much higher
payloads than air freight.

Advantages Disadvantages
 It's the greatest method for moving big,  Not often the most cost-effective
heavy items. Cargo ships are ideal for big option
or bulky goods since they can transport  depending on the starting point or
thousands of tons. final point, may not be reachable
 It is less expensive than flying. more  It is not appropriate for fast
ecologically friendly as well delivery due to the lengthy travel
 Little handling is necessary. periods.
 Slow-moving vessels decrease the risk of  Access to a worldwide shipping
harm to the cargo. network with a variety of services,
such as FCL and LCL shipments,
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 Weather rarely has an influence on should be available from any
shipping. reliable freight forwarder.
 Of all the freight alternatives, it has the
greatest carrying capacity.
 The highest carrying capacity is for sea
freight.
Table 03. Advantages and disadvantage of sea transport.

3.4. Air transportation.

The preferred method for expedited delivery is air freight. It is available everywhere in the
world and is a practical way to send modest products across large distances. Air freight
enables companies to send to particular locations or regions as most large cities have
airports.

Advantages Disadvantages

 Few planes experience delays longer  Given the high cost of fuel and other
than a few hours, and compared to charges like security checks, air freight
road, sea, or rail, air freight offers a is one of the costliest modes of
considerably more direct path. transportation.
 Air freight is a trustworthy option  There are limitations on what can be
because of its consistent schedule. transported because of the nature of air
 Compared to other forms of freight. There are limitations on product
transportation, security is categories, size, and weight.
substantially higher with air freight,  Given that any collision may result in
and packages frequently undergo the the total loss of cargo, it can be unsafe.
most stringent security precautions.

Table 04. Advantages and disadvantage of Air transport.

3.5. Rail transportation.

The greatest method for transporting large, hefty items over long distances is by rail. There
are several platforms, switch bodies, and wagons appropriate for practically every sort of
cargo available for this purpose. It has less of an effect on the environment. in particular,
electric trains.

Advantages Disadvantages

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  Road freight cannot match the  slower than other modes of transportation
carrying capacity of trains. sometimes
 Due to set schedules and the nature  Not all locations are ideal for rail freight
of rail travel, there is a lower because of accessibility issues.
likelihood of delays.  Due to pre-determined routes, there is no
 Environmentally friendly compared door-to-door service.
to other forms of transportation.  At the destination, further transportation
Compared to road freight, it releases is typically necessary.
more than a third fewer emissions.
 a practical option for long distance
travel
 especially suitable for international
travel
Table 05. Advantages and disadvantage of Rail transport.

4. Underlying operations of different modes of transportation.

 Road transport.
Work is done on different roadways to maintain them. These routes may be highways,
freeways, or narrower backroads. This maintenance is done to maintain the strength,
safety, and effectiveness of these roadways, regardless of the type of road they are.
There are many different types of road maintenance, ranging from quick and easy
pothole repairs to resurfacing a complete freeway. No of the task, the basic objectives of
this labor are to maintain upkeep, control traffic, and keep road users safe. This
guarantees that the road will be able to operate effectively for as long as feasible.

 Sea Transport.
The primary types of cargo shipped by sea include roll-on/roll-off, break bulk, dry bulk,
liquid bulk, and container cargo. Ship maintenance is a comprehensive service made up
of several tasks meant to keep the machinery current, in good working order, and to
guarantee the vessel is retained in outstanding condition. A seaport may be separated
into several terminals that are designed to handle different types of cargo, such as bulk
cargo terminals, container terminals, etc. The following are the key port activities that
happen in such terminals:

cargo loading and unloading, passenger embarkation and debarkation, along with
ancillary services (luggage handling, rest areas, restaurants, etc.), ship arrival and
departure facilitation (pilotage, tugging, mooring, berthing), temporary cargo storage on
the yard to maintain regular stocking, cargo staging until loading on the ship or transfer
to overland means of land transportation (trucks, rail, barges for fluvial transport,
pipelines, etc.).

 Railway transport.
The regular activities of a railway are known as rail transport operations. A railway
10
 consists of two main parts: the rolling stock and the infrastructure, which includes the
tracks, stations, freight facilities, viaducts, and tunnels (the locomotives, passenger
coaches, freight cars, etc.)

The daily maintenance of the complete train network is referred to as rail track
maintenance. The maintenance personnel guarantee the dependability and safety of the
whole train network. This may involve checking the safety of nearby areas, signaling
and power systems, trains and bridges, embankments, fences, level crossings, and more.

 Air transport.
The airport authority is in charge of deciding how service level standards should be
established and upheld, as well as the safe and effective operation of the airport. directs
and takes part in the inspection of concourses, terminals, gate areas, concession areas,
interior and exterior of buildings, sidewalks, and public access routes to ensure the
safety, security, and effectiveness of terminal and ground transportation facilities.

 Pipeline transport.
This is typically relevant to the pipeline business, whether it is conveying gas or liquids,
and it comprises of pipeline systems operation and control, including supervisory,
control, and data acquisition and leak detection as well as field operation and
maintenance.

4.1. Cost of different modes of transportation.

In order to provide transportation services, fixed costs must be paid for infrastructure, rights
of way, terminals, and the machinery necessary to operate such facilities. They offer a level
of capacity but do not fluctuate in response to the volume of traffic.

Depending on the volume of traffic, variable costs are incurred. They primarily consist of
labor, energy, and maintenance.

Mode Fixed cost Variable cost

Road Land, roads, parking, ramps, Maintenance, labor, fuel.
bridges, tunnels, signalization.
Vehicles and trailers.
Rail Land, tracks, bridges, tunnels, Maintenance, labor, fuel.
signalization.
Locomotives and wagons.
Rail yards and terminals.
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 Air Land, Field, terminal. Maintenance, labor, fuel.
Aircraft. Airport charges.
Sea Land for port terminals. Maintenance, labor, fuel.
Cargo handling equipment. Port charges.
Ships.
Pipeline Land, pipes. Maintenance, energy.
Exchanges, services.
Table 06. Fixed and variable transport costs

5. Factors that affect the selection of mode of transport.

There are several elements to take into account while choosing the best mode of
transportation to move goods from point A to point B. Making the appropriate choice and
coming up with the best and most economical mix of modes of transportation is crucial.
Here are the primary criteria we consider while picking a form of transportation.

 Price
The budget should be the deciding element when determining the optimal method of
product transportation. The kind and quantity of the items that need to be carried might
affect the price. Rail transport will be the most cost-effective option for inland long-
distance transportation of large or bulky goods. Small volumes of products traveling
short distances are best delivered by land, usually using trucks. The cheapest means of
transportation is without a doubt water transportation, which is ideal for moving large or
bulky items over vast distances when timing is not a major concern. Air transport will be
most effective for moving perishable, light, or precious items.

 Speed.
The greatest alternative for huge distances needing urgent and quick delivery. To fulfill
deadlines, or when the commodities are perishable or fragile is air transport. For short-
distance delivery, motor travel is quicker than rail transit. Rail, however, is more
expedient and cost-effective for longer distance travel.

 Reliability.
The reliability and regularity of different transport options varies. The urgency and
speed with which we want our items delivered will have an impact on the form of
transportation we choose. Weather conditions including severe rain, snow, fog, and
storms can disrupt land, maritime, and air travel and cause delays. Where time is an
issue, water conveyance is frequently unsuitable.

 Safety.
When selecting a means of transportation, product security and safety are crucial factors
to take into account. Land transportation is preferred over train transportation because of
the smaller losses. Given that the commodities are exposed to the hazards of the sea and
the lengthy travel, sea transportation has the highest risk in terms of safety. Certain types
of packing help to safeguard the things during shipment and have an influence on costs
12
 even though they come highly recommended.

 Flexibility.
Road transportation is the most adaptable for us since it is not restricted by things like
flight timings, cargo routes, or pre-scheduled timetables. Motor transportation offers the
extra benefit of door-to-door delivery and may run day or night, at the customer's
leisure, to accommodate all time frames.

You can refer to the comparison below for further understanding.

Factors Rail Road Pipeline Air Water

Price Low High Very low Very High Very low
Speed Slow Medium Slow Very fast Very slow
Reliability Medium Medium Very high Very high Low
Safety Medium Medium Very low Low Medium
Packaging High Medium Nil High High
Flexibility Low High Very low Very low Low
Door to Sometimes Yes Sometimes No Sometimes
door service
Table 07. Characteristics of modes of transportation.

6. Infrastructures associated with each transport mode.

The foundational network of public infrastructure built to support mobility is known as

transportation infrastructure. The following list includes some of the facilities connected to
each form of transportation.

6.1. Road transport infrastructure.

 Road networks.
A road network is a network of connected lines and points on a map that represents the
street system for a certain location. It always involves investigation, where one may look
at the optimum location to develop service.

 Parking space.
Whether paved or unpaved, a parking spot is an area set aside for parking. It could be on
a public street, in a parking lot, or in a garage. Road surface markers might be used to
define the area.

 Bridges.
A bridge is a physical construction created to cross over an obstruction without blocking
the area below. It is designed to allow passage over the obstruction, which is anything
that is challenging or impassable.

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  Footpaths.
It is a specific kind of roadway that is exclusively meant to be used by foot traffic, not
by other types of traffic like motorized cars or bicycles.

 Water drainage system.

The road drainage system is a device for efficiently gathering and rerouting any water
accumulated around the road. It can assist "capture" a significant portion of the runoff
from the drainage upwards of the road if it is properly built, preventing waterlogging
upstream of the road.

6.2. Sea transport infrastructure.

 Sea port.
A port is a type of nautical facility with one or more wharves or loading docks where
ships may load and unload passengers and goods.

 Shipyard.
Ships are constructed and repaired in shipyards. These could include yachts, military
ships, cruise ships, or other types of passenger or freight ships.

 Harbor.
A body of water protected by both natural and man-made obstacles is called a harbor.
Harbors can offer secure mooring and allow the passage of goods and people from ships
to the land.

 Dockyard.
A waterfront region including docks, shops, warehouses, etc. for equipping, repairing,
and manufacturing ships as well as storage space for naval supplies.

6.3. Rail transport infrastructure.

 Normal Railway.
The construction of a railway or railroad consisting of the rails is referred to as the
"track," "permanent way," or simply "track."

 Subway.
Underground train system used to carry large numbers of passengers in urban and
14
 suburban regions is known as a subway, sometimes known as underground, tube, or
metro. Due to the convenience of construction, subways are frequently built beneath city
streets.

 Elevated railway.
A fast transit railway with the rails above street level on a viaduct or other elevated
structure is called an elevated railway or elevated (usually constructed from steel, cast
iron, concrete, or bricks).

 Railway station.
Any railroad facility where trains stop to load or unload people, freight, or both is
known as a train station, railway station, railroad station, or depot.

 Marshalling yard.
A railroad yard used to split railroad cars into different tracks is known as a
classification yard, marshalling yard, or shunting yard. These yards can be found at
various freight train stops.

6.4. Air transport infrastructure.

 Airport.
A place where planes can take off and land called an airport. They often include a
control tower, hangars, and spaces for passengers and freight in addition to hard-
surfaced landing strips.

 Air traffic control.

Aircraft are moved through the airspace system using air traffic control in a safe and
effective manner. As they go from airport to airport along predetermined itineraries,
controllers maintain specific spacing between the planes.

 Airline.
An airline is a business that offers passenger and cargo air transportation services.
Airlines utilize planes to provide these services, and they may also join up with other
airlines to create alliances or partnerships for codeshare arrangements.

6.5. Pipeline transport infrastructure.

 Initial injection station.

The system's entry point, often referred to as the "supply" or "inlet" station, is where the
product is introduced into the pipeline. These places are typically where storage
facilities, pumps, or compressors are situated.

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  Compressor/pump station.
To convey the product through the pipeline, pumps for liquid pipelines and compressors
for gas pipelines are placed along the line. The geography of the land, the kind of goods
being transported, or the network's operational circumstances all have an impact on
where these stations are located.

 Regulator station.
It's a unique kind of valve station where the operator may let off some line pressure.
Regulators are often found on a peak's downward side.

 Final delivery station.

This is the location where the product will be supplied to the customer and is also
referred to as "outlet" stations or terminals. It could be a link to a distribution network
for gas pipes or a tank terminal for liquid pipelines.

Part B.

1. Export and import regulations including custom procedures and

tariffs.

1.1. Incoterms.

16
International Commercial Terms, or Incoterms, are a prerequisite of international trade
because of the needs for cargo. They are used in commercial contracts and are updated and
altered every 10 years. They are created so that businesses may offer simpler cargo
management and security options, as well as improved buyer and seller understanding.

The modified Incoterms are summarized in the section below.

Figure 01. Incoterms 2020.

1.2. Import documentation in Sri Lanka.

The import documentation needed in Sri Lanka is determined by the government's regular
trade policy. Some of the documents are,
 Import Declaration
 Air Waybill or Bill of Lading (B/L).
 Commercial Invoice.
 Packing List.
 Import License (if applicable)
 Documents of Origin (if applicable)
 additional pertinent records, such product ingredients and catalogs.
The importer is obligated to provide the customs department with information on the import
cargo. The Customs Goods Declaration, or CUSDEC, is the name given to the good
declaration in Sri Lanka.

1.3. Export documentation in Sri Lanka.

Once the exporter is prepared to carry out the export, export consignments must be
17
disclosed to the customs and submit a customs declaration online. Once the HS code has
been determined, the National Export Tariff Guide lists the duty rates that apply to each and
every HS code.

A collection of export documentation may include the following documents.

Health certificates, laboratory certificates, analysis reports, phytosanitary certificates,

quarantine certificates, Commercial invoices, bills of lading, certificates of origin (CO), and
party's copy.

2. How tariffs and duties affect the imported/exported goods.

A tariff is a tax that a government imposes on imported goods and services in an effort to
drive up costs and lessen imports' allure, or at the very least their competitiveness, in
relation to domestic goods and services.

2.1. Tariff barriers.

The importer's country's customs duty is the most significant tariff barrier. The exporting
nation may also charge a tax on its own exports. Governments, however, seldom ever put
tariffs on exports since nations seek to sell as much as they can to other nations. The
following are the major significant tariff barriers:

 Specific duty
 Ad valorem Duty
 Combined or Compound Duty
 Sliding Scale Duty
 Countervailing Duty
 Revenue Tariff
 Anti-dumping Duty
 Protective Tariff

Tariffs drive up the cost of imports. This gives domestic manufacturers a competitive
advantage. Consumers suffer from tariffs because domestic manufacturers drive up the cost
of imported products. Importers pass on the additional cost to customers in the form of
higher pricing since they must pay a tax in the form of tariffs on the items they are
importing.

2.2. Non-tariff barriers.

Any barrier, other than a tariff, that prevents the free flow of products into foreign markets
is referred to as a non-tariff barrier. Only the volume of imports is impacted by non-tariff
barriers; the price of imported items is unaffected. Here are a few significant non-tariff
barriers:

18
  Quota System
 Product Standards
  Domestic Content Requirements
  Product Labelling
  Packaging Requirements
 Consular Formalities
 State Trading
 Preferential Arrangements
 Foreign Exchange Regulations

3. Strategic aspects of warehouse management.

Good warehouse strategies make the most of capacity, cut costs overall, and provide high-
quality public warehouse services by streamlining operations so that items move through the
warehouse as rapidly as customers want.

3.1. Strategies of selecting warehouse location.

Warehousing close to your clients reduces unexpected increases in transportation expenses.

A convenient location may save transportation expenses and cut down on travel time.
Additionally, it is advantageous if the warehouse you choose is located close to significant
transportation infrastructure, such as railroads and shipping ports.

3.1.1. Factor Rating Method

The following steps are involved in choosing a new facility location:
 Determine the crucial geographic elements.
 Rate each element in accordance with its relative relevance; a major factor will
receive a higher rating.
 According to the advantages of the site for each factor, assign each location.
 Multiply the factor allocated to each place while taking into account the
fundamental elements to determine the grade for each location.
 Find the total that was computed for each factor, then choose the site with the
highest overall score.

Location Factor Weight Location 1 Location 2

rating Rating 2 Total Rating 3 Total
Proximity of Market 25 4 100 3 75
Proximity of suppliers 25 3 75 3 75
Transport costs 20 3 60 5 100
Land and construction cost 20 1 20 3 60
Labor costs 10 5 50 2 20
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 Total 305 Total 330
Table 08. Factor rating method.

Location 2 has a higher overall score than Location 1, overall. Therefore, Location 2 is the
ideal option as per the score.

3.1.2. Centre of gravity method.

This method determines the x and y coordinates for the location of the new facility based on
the coordinates of the existing facilities and the volume (quantity) of demand for each
region using a (X-Y) coordinate system to cover the geographical map of the study areas
(facility).

Store location No of containers shipped per

month
Location 1 (30,120) 2000
Location 2 (90,110) 1000
Location 3 (60,40) 2000
Location 4 (130,130) 1000

x coordinate = (30x2000) +(90x1000) +(60x2000) +(130x1000)

2000 + 1000 + 2000 + 1000
= 66.7

y coordinate = (1200x2000) +(110x1000) +(40x2000) +(130x1000)

2000 + 1000 + 2000 + 1000
= 93.3

140

120 Location 1 Location 4

(30,120) Location 2 (130,130)
100 (90,110)

80

60 Centre of gravity
(66.7,93.3)
40 Location 3
(60,40)
20

0
0 20 40 60 80 100 120 140
Chart 1. Centre of gravity method.
There are some other methods such as, break even analysis, load distance method can be
used to select a proper warehouse location.

3.2. Warehouse design/layout.

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The process may be streamlined and shipment times reduced with a well-designed
warehouse. Although optimizing your warehouse's architecture may significantly enhance
operations, what may be effective in one warehouse may not be in another. There are a few
fundamental design choices, though, that can very well work in your advantage.
 U- shaped design.
The "U" form keeps everything apart and streamlines inventory movement. The U shape
also aids in preventing bottlenecks by having incoming and leaving cargo on parallel
sides. Workers can transport goods between shipping and receiving quickly since they
are located on the same side of the building.

 I- shaped design.
The loading and unloading spaces for the I-shape are located at the two ends of the
warehouse layout. The picking, packaging, and receiving rooms, as well as general
storage areas, are all located in the longer middle portion of the I, which gives the
warehouse plenty of room.

 L- shaped design.
This makes it considerably simpler to generate a smooth flow across the warehouse and
prevents forklifts and workers from becoming stuck funneling through the warehouse's
90-degree angles.

3.3. Warehouse storage and rack selection.

Since your racking system will, in large part, decide related elements, including your usage
of floor and vertical space, inventory access, docking locations, shipping spaces, and other
components, an effective racking plan is crucial to your overall warehouse architecture and
design. The various racking systems in a warehouse are listed below.

 Selective racking system.

The most popular type of pallet racking is selective pallet racking. Because they enable
customers choose any pallet load from the pallet racking system without having to move
any other pallets, these systems are referred to as "selective."

 Drive-in / drive-through racking system.

Drive-In and Drive-Thru storage systems are self-supporting, free-standing racks that
provide drive-in access to the items being kept by a vehicle.

 Flow racking system.

Pallet flow racks, also known as flow rack, are a pallet storage technique that conveys
and accumulates pallets in a storage module using gravity and wheels or rollers. In
comparison to other types of racking, depths can range from 2 to over 20 pallets,
offering you a larger storage density.
 Push-back racking system.
Push back racking is a type of pallet storage that enables you to stack pallets up to six
deep on either side of an aisle, providing better storage density than other types of
racking.

21
The characteristics of the various racking system types are described below.

Selective Drive-in/drive- Flow racking Push-back

racking through racking racking
Product flow First-in, Last-in, first-out/ First-in, first- Last-in, first-
first-out First-in, first-out out out
Storage Fair Excellent Excellent Excellent
density
Selectivity Excellent Fair Good Good
Common Palletized Large quantities Date-sensitive Multiple
storage products of uniform products and groups of
applications requiring products products that SKUs.
low density vary in size
and high
selectivity.
Cost Low Medium High High
Table 09. Characteristics of the various racking system types.

3.4. Extent of automation.

One of the finest warehousing tactics you can employ to increase team productivity is
automation. Your choice of automation depends on whether you require operations or
analytics help to ensure the accuracy of the data you're acting on. Each year, inaccurate data
input and reporting cost businesses time and money. Make sure the technology you select
has the functionality you need for your regular business activities. Your employees may
become distracted by too much technology. Find the right mix between cutting-edge
functionality and ease of use so that your staff can quickly become used to the new system.

Automated material handling systems transport, lift, pull, push, store, and retrieve things
without the need for human labor. Computerized devices and robots such as, Conveyors,
pallet lifting equipment, heavy equipment box lifts, and industrial lifting equipment are a
few examples. Automated material handling systems have already started to show their
promise in several sectors. Nevertheless, even if automated equipment may greatly increase
your warehouse productivity.

4. Operational issues in warehousing.

In this part, I'll go over some of the most frequent operational problems that arise in
receiving, order picking, storing, and dispatching orders, as well as what we can do to avoid
them by utilizing technical solutions.

4.1. Receiving issues and solutions.

 Trucks are standing outside waiting for an open bay since receiving docks are
22
 backed up.
 Forklift workers move or put away pallets too soon, leaving gaps in the inventory.
 Workers spend additional time moving back and forth across the warehouse looking
for labels and matching them to arriving items.
 Due to the lengthy procedure of putting away inbound merchandise, docks are
underutilized.

The labeling of incoming items has undergone a significant shift recently. Using automated
pallet management and storage systems, bar-coding, radio-frequency ID scanners, and
computers has made warehouse reception more precise and complicated than ever.

The productivity will be greatly improved by switching from stationary workstations to an

All-In-One Mobile Receiving Station since it will eliminate expensive footfall, lessen
worker fatigue, increase dock to stock by at least 50%, and improve labeling accuracy.

4.2. Order picking issues and solutions.

 The persons in charge of this activity must spend time hunting for the missing item
in order to return it to its original location since the proper units are not discovered
where they should be.
 Errors that occur during the separation or categorization of the units can have a
variety of negative effects, including the loss of time and labor resources, the
shipment of the incorrect product, and large financial losses.
 Carrying out the choosing process manually, that is, writing down lists on paper to
be able to locate the units in stock and the high probability of human mistake that
they produce, is one of the most tiresome activities.
 When orders are not prioritized in accordance with the company plan, you run the
danger of delaying those that need to be dispatched right away. The relationship
between the business and its consumers will be compromised.

Automatically Piloted Cars (AGVs). Wheeled load carriers with computer control that
independently move towed or on-board cargo around a facility. They may be used to follow
a picker as they put picks on an AGV-moving pallet.

Pick indication systems enable operators in precisely and rapidly finding needed objects.
They give information for completing the work and point the operator in the right direction.
Pick indication systems, which are paperless and give the user hands-free operation, produce
extraordinarily high accuracy rates, shorten training periods, and increase picking rates.

Robotic shuttles, which are included into the system, are used to assist in transporting cases,
totes, or trays. The shuttles move autonomously from storage level to storage level, traveling
on constrained tracks at each storage level to quickly collect objects that have been placed
there.

4.3. Storage issues and solutions.

23
  Limited visibility causes incomplete, incorrect, or delayed shipments when the
inventory is difficult to discover in the warehouse or identify.
 It is difficult and unsafe to manage inventories with paperwork and manual
procedures. Additionally, scaling across several warehouses with a lot of goods is
difficult.
 Too much stock on hand may be just as hazardous as not enough. Overstock
negatively affects a company's cash flow and causes issues with storage and loss of
goods.
 A logistics issue might be the loss of inventory due to spoilage, damage, or theft. It
requires locating, monitoring, and quantifying problem regions.

By optimizing warehouse layout, enhancing inventory accuracy, expediting the storage

process, and many other things, a WMS should thoroughly aggregate all of the crucial
warehouse data onto one readily accessible platform.

The usage of asset and inventory tags in an inventory control platform enables you to
automate stock counts and swiftly synthesize data for real-time, accurate reporting that can
be viewed remotely.

With the use of business intelligence technologies, product data is gathered, examined, and
displayed in simple dashboards. The pick and pack procedure may then be optimized by
warehouse managers using this data to make knowledgeable business decisions.

4.4. Dispatching issues and solutions.

 Poor delivery planning may result in low productivity, high customer attrition,
higher fleet management expenses, ineffective reverse logistics, and scalability
issues.
 Poor documentation and quality control may result in errors, consumers receiving
the wrong items in the wrong amounts, processes being followed improperly, and
more mistakes in the future.
 Time-sensitive items like plants or food may go missing inside the warehouse if
cargo tracking is ineffective, only to be found there days or weeks later after the
value has been decreased or lost totally.

You can find orders in the same delivery windows that are close to one another and can be
batched to cut the cost of delivery by utilizing route optimization software.

By taking pictures of load slips throughout the day and uploading them to their smartphone
app, digital ticket upload/collection enables drivers to more easily keep track of paperwork
and ensure that no paperwork is misplaced.

Use shipment tracking software that automates returns and provides centralized platform
integrated tracking, customer contact, and shipping exceptions management, such as Click
post, After ship, and Ship station software’s.

24
5. Muli-level product packaging.

packaging that has an impact on how goods are delivered and packaged. For various
packaging applications, several packaging materials are utilized. However, it is now clearer
what these levels of packing are called and how they relate to effective warehousing and
transportation.

5.1. Primary packaging.

 The packaging that comes into the closest contact with a product, often known as
"retail packaging."
 Its primary objectives are to safeguard the good and educate or draw in customers.
 Depending on the product, many types of packaging may be primary. A pop can, for
instance, is major packaging (because it's the main means to transport soda), and a
corrugated box holding a camera and its accessories is primary packaging too (since
that's the main way to buy one).

The end user or consumer is frequently the target audience for primary packaging. It also
improves the items' visual appeal and gives consumers access to written information about
the products in addition to making products easier for customers to handle. With the aid of
primary packaging rather than loose items, it’s easy to handle and there are reduced risks of
pollution, damage and contamination with other goods. Higher sales are attracted by
attractive packaging. These factors lead to a rise in warehouse efficiency.

5.2. Secondary packaging.

 The secondary packaging is used to transport primary packaging items.
 Its major objectives are to give branding during shipment and to protect items.
 Additionally, it is utilized as display packaging in retail settings like grocery shops.
 12-packs of soda cans, the corrugated box that a dozen camera boxes are shipped in,
are some examples of secondary packaging.

Both the goods and the primary package are better protected by secondary packaging. In the
case of secondary packaging, handling and storage of the product are made simpler, and the
design affects the target consumer. These factors could play a role in boosting storage
efficiency.

5.3. Tertiary packaging.

 The tertiary packing is used to ship secondary packaging in the most frequently.
 Its main objective is to protect cargo effectively while they are being transported.
 Consumers often do not notice tertiary packaging.
 A few examples include the pallets used for bulk shipments, the corrugated pads
used to separate layers of boxes, and the stretch wrap used to hold stacks of cartons
together.

25
The package size and density determine your items' shipping and storage expenses. With the
aid of tertiary packaging, it is simple to handle and move several sales units at once, which
might lower the cost of transportation. Every "contact point" in transit raises the possibility
of product damage, hence tertiary packing is essential for safeguarding the shipment and
boosting transportation effectiveness.

-------- End of report -------

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