Posts Tagged With: Transport

Logistics Assessment during Emergency

It is important that the humanitarian agencies sustain their capacity to respond in an effective and timely manner when disasters / emergencies occur. Normally, agencies will send their assessment team to go to the disaster sites and it is very important to include logistician to conduct logistics assessment in order to understand how the logistics services are to be provided.

The overall objective of the logistics assessment is to ensure that appropriate and adequate arrangements are made to respond in a timely, effective and appropriate manner to the needs of the affected people.

Log for blog

The strategy of the assessment normally made in order to answer six questions:

  1. Who – who are the beneficiaries or affected people
  2. Where – location of the beneficiaries or affected people
  3. What – identifies most urgent needs or prioritization
  4. When – when the relief items is needed or to be delivered
  5. How many – total quantity of relief items needed or required
  6. How – this is logistics part – how the relief items will deliver / send to the beneficiaries – this will talk about transport, warehouse, handling, packaging as well as communications and other supporting activities.

Based on the above, we could see that the most important part of the logistics assessment during disaster is to identify impact on the transport infrastructure as well as resource infrastructure, e.g. airport, sea port or river port, roads, bridges, local trucking capacity, vehicle rent, warehouses, electricity and other supporting information.

The assessment should also highlight any special concerns, for example airport congestion, customs clearance procedures, labor issues etc.

Logistics assessment during emergency will be depending on the circumstances or depend on the scale of the disaster. Normally, assessment cycle will include:

  1. Identify information needs and sources
  2. Collect data and information
  3. Analyze and interpret data
  4. Conclusion including provide logistics response plan
  5. Design or modify the response
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Supply Chain in Humanitarian Relief

In humanitarian organizations, the terms supply chain is basically used to describe the process of getting relief items from the source to the beneficiaries in a timely manner. The source could be suppliers as well as donors. And in some organizations, they used the terms supply chain and logistics both together to describe above mentioned process. Usually logistics also used to describe the function or division who is responsible for managing the process.

Basically, the nature of supply chain and logistics in business or commercial are essentially the same with humanitarian supply chain and logistics, the following are the significant differences:

  • Unpredictable demand in terms of timing, geographic location, type of commodity, quantity of commodity.
  • Short lead time and suddenness of demand for large amounts of a wide variety of products and services.
  • High humanitarian stakes regarding timelines in the face of sophisticated global media and the high anticipatory attention of the donors.
  • Lack of initial resources in terms of supply, human resource, technology, capacity and funding. (Source: Balcik and Beamon, 2008)

 

SCM2The main components of the humanitarian supply chain are:

  • Procurement
  • Transport
  • Warehousing and inventory

 

Procurement

Procurement is a key activity in the supply chain. The procurement involves the sourcing, purchasing and covers all activities from identifying potential suppliers of relief items and services that are needed to meet the needs of the beneficiaries. There are three important principles of humanitarian procurement:

  • Transparency: all phases in the procurement process are fair and accurately documented.
  • Accountability: accountability to donors who may require certain rules to be followed when using the fund/money that they have provided.
  • Efficiency and cost effectiveness: meeting the six rights of supply: right price, right time, right quantity, right quality, delivery to the required places and from the most cost effective source.

The procurement function must guard and mitigate against risk, understand the market, build a trust relationship with suppliers, meet the needs in a timely manner, and constantly monitor performance to improve service provision.

Transport

In the humanitarian context, transport can be defined as the physical movement of relief items/goods from suppliers or point of origin to internal customers (in this case mainly is warehouse of humanitarian organization)  or directly to the beneficiaries. The transport component in the supply chain therefore is critical in connecting supply to demand. The aim of transport in humanitarian context is to physically move the relief items/goods in a reliable and safe manner, on time, cost effectively and efficiently to its destination.

Transport mode will depend on several factors including:

  • The type and volume of items/goods to be transported.
  • The urgency that items/goods are required.
  • The availability of different transport routes as well as different types of transport.
  • The destination to which the items/goods to be transported.
  • The cost of transportation.
  • The terrain through which the items/goods need to be transported.

Warehousing and Inventory

The third main component is warehousing and inventory. Recently, some of the experts said that in the perfect supply chain we do not need warehouses in order to reduce costs. In the humanitarian context, clearly there are reasons why items/goods have to be stored and why we need warehouses. In the humanitarian supply chain, there are types of responsibility to manage warehouses, e.g. supplier warehouses, donor warehouses, humanitarian organizations warehouses.

Types of warehouse space:

  • Commercial
  • Government
  • Transit warehouse
  • Bonded warehouses
  • Open storage
  • Pre-fabricated warehouses – non permanent structure

The role of inventory management in humanitarian context is to ensure that stock is available to meet the needs of beneficiaries when required.

 

In addition to those three main components, there are several subsidiary activities in the humanitarian supply chain, e.g. assessment and planning, fleet management, customs etc.

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Transportation Management – Decision Making

In the planning phase as previously, we know that there are four key criteria for selecting the mode of transport, i.e. speed, reliability, cost and flexibility. We have also seen that operational factors, terms and conditions as well as environmental, political, social and security factors will affect for decision making.

Transport pengambilan keputusan

Below are some examples of goods or materials to be transported, and we will see how the judgments made in taking a decision which mode of transport to be used.

1. A telecommunications company’s HQ in the city of A wants to send 5 device servers that are urgently needed by one of their branch office located in the city of B. Total weight of the goods to be delivered is 100kg and the distance from city A to city B is 3,000 km. City A and city B both have the airport facilities, railway lines and roads across the province are quite good. What mode of transport should be used?

For this case we will use air transport because the goods to be delivered urgently needed and total weight of the goods is suitable to be transported by air. Air transport is particularly suited to low weight and low volume of consignments, it is also good for perishable goods and in circumstances where the delivery requirement is urgent. Air transport also will be one of the best options for emergency situation. Currently there are a lot of major airlines and other global logistics service providers also an opportunity to ship consignment on passenger routes have made air transport a more cost effective option, particularly for international movement.

Back to the above case, first thing to do is we need to get quotations/offers from service providers such as DHL, UPS, TNT or others. Better to get at least three quotations/offers for comparison and transparency of the decision making process. If we will continue to send more items/goods by air transport, would be better if we issue a tender and enter into contract for a specified period of time with one of service provider.

Things to be arranged after a service provider has been selected:

  • Packaging and labeling. Transport by air (aircraft) will usually take place using some form of unit load device so it will reduce the need of packaging. The nature of goods will determine the precise nature of packaging. Labeling should include details of the sender and consignee, other relevant information and the package number.
  • Proof of delivery of goods, i.e. Air Waybill (AWB). Normally AWB and other regulations for air shipments should be in-line with IATA (International Air Transport Association) regulations. The AWB is the carrier’s receipt by air, evidence of the contract of carriage and is usually non-negotiable. Correct name and address of sender and consignee are very important for AWB.
  • Handling. It is important to note whether the goods must be handled with special care or not, for example for this case the goods categorized as fragile so it should not be slammed and so on.

 2. “Abadi” office will move from current location in city A to the new location in city B. Total distance from city A to city B approximately 700km. A number of office equipment such as desks, chairs and cabinets should be moved to city B. City A and city B both have the airport facilities, railway lines and roads across the province are quite good, however the environmental conditions across the provinces are less safe. What mode of transport should be used?

For this case, we can use rail as an option of transport mode because road condition across the two provinces are less secure. Rail offers effective method for bulk haulage, it is therefore suitable for the movement of large load size over longer distances in affordable cost. This is the major benefit of rail. If total delivery distance is not high, for example less than 500km, rail often be found to be an uneconomic option. In some cases, the size of the consignment will mean that the entire train movement. Significant quantities can be moved in one trainload. In certain circumstances, wagons can be built based on customer specifications but normally available on hire basis. Wagons come in all shapes and sizes, for example hoppers for transporting coal. However, the availability of locomotives to haul the train and the wagons will impact on the speed and reliability of this mode.

Back to the above case, first thing to do is to get three quotations/offers from transport companies. Then we should determine whether the goods need to be packaged or can be sent directly. Proof of delivery of goods, rail waybill can be also considered as a contract and usually non-negotiable. Correct name and address of sender and consignee are very important for rail waybill.

3. Supermarket “Jaya” in Jakarta, Indonesia wants to import 50 tons of instant noodles from factory in Singapore. Packaging of instant noodles is in carton box with weight per box is 5kg. So in total there will be 10,000 boxes to be imported. What mode of transport will be used?

For this case, the mode of transport is containerized by sea because goods to be imported is food and the packaging is in carton box and unavailability of transport by road.  Normally, selection of transport company for import of goods or materials will be done through tender process.

Analysis for all offers received should consider:

a. Transport rate from Singapore to Indonesia. Normally offers will be made in the basis of:

  • Door to door
  • Door to port
  • Port to port
  • Port to door

b. Rate of Customs clearance at port of origin and at port of destination.

c. Rate of Local Shipping Charges, e.g. Terminal Handling Cost, Delivery Order fee, Lift-on, lift-off, cleaning and other costs.

d. Other costs if any such as demurrage, detention etc.

After awarded the agent (transporter), we need to closely follow up the movement of the goods, from the origin factory/warehouse, loaded into containers until the vessel is sailed. As soon as possible after the vessel is sailed, proof of delivery of goods, i.e. Bill of Lading (B/L) to be issued. B/L is the main shipping document and has three roles:

  1. It is the carrier’s receipt for the carriage of goods by sea.
  2. It is evidence of the contract between the sender/consignor and the shipping line and details about the conditions of carriage.
  3.  As evidence for payment of goods transported.

The B/L usually issued in a set of three originals, signed on behalf of the ship owners by the captain or the person in command of a ship or the shipping agent acknowledging the receipt on board of specified goods. It stipulates the payment terms and details of consignor and consignee. Without an original B/L, the goods will not be released.

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Transportation Management – Planning

We know very well that the basic modes of transport are road, sea, air and rail. In general, a mode of transport is the means by which goods or materials are transfer from one point to another.

Manajemen transportasi

The criteria of speed, reliability and cost should be examined when considering the choice of mode. Different modes will have quite different characteristics, therefore, the appropriate mode must be carefully selected in order to match all the requirements. Multi-modal solutions may provide the most effective and efficient transport option.

The physical characteristics of certain goods and materials may determine a specific transport, however most of goods will be capable of being moved by variety modes.

It is important to fully recognize the operational characteristics of the modes, also necessary to consider the type of the vehicle or equipment that will be used within that mode.

So, in general, mode selection is influenced by:

I. Operational factors.

    Certain operational factors need to be considered when selecting appropriate mode:

1. The nature of the consignment to be moved. Factors to consider are:

  • the size, shape and weight of the goods or materials,
  • the value, requirement for security in transit and degree of fragility,
  • deterioration of the period,
  • the hazardous nature of goods.

2.  Aspects to be considered for customers features:

  • the geographical location and dispersion of customer to be serviced,
  • delivery time required by delivery point, for example within 24 hours and the regularity with which consignments are to be delivered must be known,
  • the features of the delivery point must be known in terms of physical access, weight restrictions and loading / unloading facilities,
  • the average consignment size.

3. Number of environmental factors, social-economic and politic conditions:

  • in some countries/cities environmental and legislative considerations, for example, vehicle and axle weight limits could substantially limit the choice of the most effective mode of transport,
  • the country/city transport infrastructure, in terms of the extent and quality of roads and railways, will define mode availability,
  • laws and taxation policies may offer incentives or restrictions on the use of particular modes of transport,
  • availability of labor and capital, specialist and technological knowledge,
  • weather conditions, for example, monsoon weather, can restrict the choice of mode.

II. Mode selection criteria

   Four key criteria can be used when comparing different transport modes, the parameters are:

  1. The speed which the mode exhibits – nature of a mode normally determines the speed at which goods can be moved. However, the nature of the modal infrastructure can have an impact on the relative speed of that mode.
  2. The reliability that the mode demonstrates in its ability to fulfill service requirements – the reliability of the transport service to deliver the correct goods, in the right condition at required time, every time, is a major aspect of customer expectation.
  3. The comparative unit costs, which the modes incur – the cost of a mode will often be expressed in terms of the unit cost for transporting the goods or materials, rather than an absolute figure. This could be expressed as a cost per sack, cost per tonne and cost per pallet or similar. The distance the goods have to travel must also be considered. Therefore, modal cost can also be expressed in terms of a value per tonne kilometer for example.
  4. The flexibility that the mode exhibits – flexibility relates to the scope for variation, which exists in a mode. The infrastructure within which a mode has to operate will affect the flexibility mode, due to the road infrastructure, which exists in most countries. Rail, for example, is less flexible, being constrained by the available fixed infrastructure.

So in conclusion we could say that all transportation needs to be carefully planned. It is important to understand the mode of transport for the benefit of both customer and transport companies or who managing the transportation.

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Manajemen Transportasi – Perencanaan

Kita tahu bahwa pada dasarnya ada empat model (jenis) transportasi, yaitu transportasi melalui darat, laut, udara dan kereta api. Pada prinsipnya, model transportasi adalah sarana untuk memindahkan barang atau material dari satu tempat ke tempat yang lain.

Manajemen transportasi

Ketika merencanakan dan mempertimbangkan model apa yang akan dipakai maka biasanya kita akan menggunakan kriteria kecepatan, kehandalan dan biaya. Setiap model memiliki karakteristik yang berbeda, oleh karena itu pemilihan model yang tepat harus dilakukan dengan seksama sehingga bisa memenuhi semua kebutuhan dan persyaratan yang diinginkan. Terkadang memakai lebih dari satu model merupakan pilihan yang paling efektif dan efisien.

Ada barang atau material tertentu yang harus diangkut menggunakan model khusus berdasarkan karakteristik fisiknya, namun sebagian besar barang atau material yang lain bisa menggunakan model transportasi apapun.

Sangat penting buat kita untuk memahami karakteristik operasional dari setiap model transportasi yang dipilih, selain itu juga kita harus mempertimbangkan jenis kendaraan dan peralatan yang akan dipakai.

Jadi secara garis besar, pemilihan model transportasi dipengaruhi oleh:

I. Faktor-faktor operasional.

Beberapa faktor operasional yang harus dipertimbangkan antara lain:

1. Kondisi atau sifat dari barang / material yang akan diangkut, antara lain:

  • Ukuran, bentuk dan berat barang/material.
  • Nilai barang atau material, kebutuhan untuk keamanan selama masa transport serta tingkat kerapuhan barang / material tersebut.
  • Periode kerusakan atau kemerosotan barang / material.
  • Termasuk kategori barang / material berbaya atau tidak.

2. Kebutuhan & syarat untuk fitur konsumen (dari sisi transporter juga) antara lain:

  • Lokasi geografis pengirim dan penerima.
  • Waktu pengiriman dan semua persyaratan yang diinginkan misalnya konsumen menginginkan barang harus dikirim dalam waktu 1 x 24 jam.
  • Kondisi tempat/titik penerima harus diketahui dengan jelas dalam hal ini antara lain akses fisik / kondisi jalan, apakah ada larangan untuk berat angkutan tertentu, serta fasilitas yang ada misalnya fasilitas bongkar-muat, dan sebagainya.
  • Ukuran rata-rata barang/material yang dikirim.

3. Faktor lingkungan serta kondisi politik, sosial dan ekonomi antara lain:

  • Di beberapa negara atau kota, ada peraturan menyangkut masalah lingkungan misalnya peraturan untuk batas berat kendaraan dan poros.
  • Kondisi jalan dan rel kereta api.
  • Undang-undang dan kebijakan pajak yang menawarkan insentif atau pembatasan untuk penggunaan model tertentu.
  • Ketersediaan tenaga kerja dan modal, serta tenaga spesialis.
  • Kondisi cuaca, misalnya musim angin/hujan deras.

II. Kriteria seleksi. Ada empat kriteria kunci untuk menyeleksi pemilihan model transportasi:

  1. Kecepatan yang dapat diberikan oleh model tertentu. Sifat dari model tertentu akan menentukan seberapa cepat barang / material akan ditransport. Namun perlu diperkatikan juga kadang-kadang masalah infrastruktur sangat mempengaruhi kecepatan dari model tersebut.
  2. Kehandalan dari setiap model yang dapat menunjukkan kemampuannya dalam memenuhi kebutuhan layanan. Kehandalan pelayanan transportasi untuk mengantarkan barang/material yang benar, dalam kondisi yang tepat, pada waktu yang diinginkan merupakan aspek utama dari harapan konsumen / pelanggan.
  3. Biaya per unit yang komperatif. Biasanya biaya setiap model dinyatakan dalam satuan namun itu bukan angka mutlak. Ada biaya per ton, per sak, per palet dan sebagainya. Jarak pun menentukan sehingga kadang ada biaya yang dibuat per kilometer ton.
  4. Fleksibilitas dari setiap model. Hal ini bergantung pada variasi yang ada dari setiap model. Terkadang karena masalah infrastruktur jalan yang kurang bagus menuntut model tertentu untuk bisa beradaptasi dengan keadaan tersebut. Contoh lain adalah pengunaan kereta api mungkin agak kurang fleksibel di beberapa tempat karena keterbatasan rel kereta api.

Jadi kesimpulannya adalah setiap model transportasi yang akan digunakan harus direncanakan dengan seksama. Penting untuk memahami model transportasi yang akan digunakan, hal ini tentu saja untuk kepentingan dan keuntungan kedua belah pihak, baik buat konsumen ataupun transporternya.

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Transport

transportIn principal the missions of logistics are:

  1.  Getting the right goods,
  2.  at the right time,
  3.  with the right quantity,
  4.  in the good quality,
  5.  with a reasonable price.

Transport is the main component to achieve above missions. Good management is necessary to be able to make an efficient transportation system at an affordable cost. Managing the transportation is often complex due to the many variables that must be taken into account. Several factors are often overlooked when we arrange transport such as the political, social and economic condition in one region or country. Sometimes political decisions regarding transportation infrastructure often determine transportation routes and modes. As well as socio-economic condition could determine routes and security.

In general, there are four key process of transportation management:

1. Planning.

This process will define the most efficient transport mode according with the consideration of important parameters such as cost, type of the goods includes packaging and how to handle it, destination, expected time of arrival, avoid transit as much as possible to ensure quality, socio-economic-political situations in every area to be traversed, etc.

2. Decision-making.

This stage is the execution of the transport plan.

3. Follow-up.

Following any physical or administrative operation regarding transportation, such as the traceability event by event, Customs arrangements, need to send transport alerts (delay, unexpected stops, accidents, etc), bills to pay and so on.

4. Measurement.

Transporter performance and all condition during the transport events needs to be evaluated and the indicators of performance should be made in the planning stage.

Below are the transport modes:

1. Transport by air.

This kind of mode takes place mainly using cargo operators, e.g. couriers like UPS or Federal Express which usually carry parcels.

2. Transport by road.

Generally this mode of transport takes place by truck. Two important terms are FTL (Full Truck Load) and LTL (Less Truck Load). Primary transport vehicles usually send the goods to the warehouses. Secondary transport vehicles usually pick up customer orders for delivery, for example small box car from UPS or FedEx.

3. Transport by rail.

This mode of transport offers a low cost alternative for shipping products and usually not really focused on the speed factor.

4. Transport by sea / water.

This mode of transport offers another good alternative for shipping products which not really requiring speedy shipping. Transport by sea including bulk carriers and container vessels.  Containers often used for the delivery of food products to / from abroad.

This time we will only see outline for the modes of transportation, in the future we will see more details because each mode of transport has their own characteristics.

I expect your comments / input for this writing and please also follow this blog if you like it 🙂

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