merged_document_2 all sem 4.pdf

8/16/2019 merged_document_2 ALL SEM 4.pdf

http://slidepdf.com/reader/full/mergeddocument2-all-sem-4pdf 1/496

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C



Topics C overed

1

Understanding S CM F unction1Components a nd f oundations o f S CM

1SCM M icro P rocesses

1Ingredients o f S uccessful S CM

1Performance r eview & E nhancement

1Designing L ogistics s ystem

1Domestic O perations

1Exports / I mports O perations

1Performance e valuation



Understanding S CM F unction

The d esign a nd m anagement o f s eamless, v alue-

added

processes a cross o rganizational b oundaries t o m eet the r eal n eeds o f t he e nd c ustomer ( Institute f or

Supply M anagement)

Managing s upply a nd d emand, s ourcing r aw

materials a nd p arts, m anufacturing a nd a ssembly,

warehousing a nd i nventory t racking, o rder e ntry

and o rder m anagement, d istribution a cross a l l



Understanding S CM F unction

The p lanning a nd m anagement o f a l l a ctivities

involved i n s ourcing a nd p rocurement, c onversion,

and a l l l ogistics m anagement a ctivities …

also i ncludes c oordination w ith c hannel p artners,

which c an b e s uppliers, i ntermediaries, t hird p arty

service p roviders, a nd c ustomers. C ouncil o f

Supply C hain M anagement P rofessionals



Components a nd f oundations o f S CMIntegration o f t hree f unctions

1Planning

1Sourcing

1Delivering

1Well c onnected t hrough w arehousing a nd

transportation.

Effective d esigning, a dministration & p erformance

evaluation i s a k ey t o s uccessful S upply C hain



Components a nd f oundations o f S CMlanning 1Basic L ogistics d esign, s uppliers, i n p rocess a nd

OBL

1Make o r b uy d ecisions

1Demand F orecasting , A BC A nalysis, I nventory

levels

1Primary C onsolidation a nd D istribution network

1Designing a nd p lanning t ransportation n etwork

1Legal c ompliances



Components a nd f oundations o f S CMnventory F low

Information F low

S

uppliers

Customers

Procureme

nt Processing Distributi

on

Supplier

Partnership

Material P lanning

Material S chedule

Procurements Methods

Capacity P lanning

Production S cheduling

JIT I nventory S ystem

Flexibil ity – V olume

V ariety

Demand P lanning

Responsiveness

Postponement

Distribution

Networking



Components a nd f oundations o f S CM1

Supply M anagement: S upplier m anagement, supplier e valuation, s upplier c ertification,

strategic p artnerships1

Operations: D emand m anagement, M RP, E RP, inventory v isibil ity, J IT, T QM

1Distribution: T ransportation m anagement,

customer r elationship m anagement, d istribution network, p erfect o rder f ulfil lment, g lobal s upply

chains, s ervice r esponse l ogistics1Integration: P rocess i ntegration, p erformance



E6CC6C1SRM ( Supply r elationship M anagement)

1ISRM ( I nter s upply C hain M anagement )

A l l p rocesses t hat a re i nternal t o t he f i rm 1CRM ( C ustomer R elationship m anagement )

A l l p rocesses f ocusing o n i nterface b etween t he

firm a nd t he c ustomers



E6CC6C



E6CC6Courcing – P rocurements a nd T hird P arty Manufacturing

:

1Sourcing d ecisions a nd v endor M anagement

1Supplier M anagement

1Procurement s cheduling

1Quality c ontrol

1Replacements/ T APA c ertification



E6CC6Cel iver ing

1Logistics d esign – T ransportation

1Strategic p lacement o f w arehouses

1Efficient o perations a nd S OP’s

1Use o f E RP/MRP f or b etter v is ibi l ity

1Risk m anagement

1Reverse L ogistics

1Waste d isposal m anagement



96F69AC C6CC

1 Data i ntegration a cross S upply C hain - s trong ERP

1 Visibil ity a cross s upply c hain

1 Rationalizing l ayers 1 Strong O utbound L ogistics

1 Strong O TIF ( above 9 0 )

1 Regional D istribution c enters a s n ecessary1 Late s tage c ustomization t o i mprove

productivity

1 Partnerships a long S upply c hain

67896 66



67896 66

9D896769A

1Cross F unctional T eam a nd r eview

1OTIF a nalysis a nd i mprovement

1Root c ause a nalysis

1Logistics A udit

1Performance e valuation

1Building s trategic p artnerships – 3 PL/4PL

B6C99 CAC 2CA67



B6C99 CAC 2CA67

1

Domestic O perations 1Exports/Imports O perations

Designing t he s ystem o f

2Stocks f low

2 O perations, 2Services s upport,

2Controls, r eview, m odifications,

2Cost r ationalization

2Customer s ervice

B6C99 CAC 2CA67



B6C99 CAC 2CA67

Domestic O perations – S OP’s

1Production p lanning, I nventory m anagement

1

Creating c hannels o f L ogistics1Strategic p lacement o f w arehouses

1Mobilizing v iable a nd e conomic t ransportation

1

Appointment a nd e xpansion o f s tockists network

1Customer O rder e xecution

1eceivables m ana ement a nd c redit c ontrol

B6C99 CAC 2CA67



B6C99 CAC 2CA67

Domestic O perations – S OP’s

1Reverse L ogistics a nd D isposal o f w aste

1Legal c ompliance

1Safety a nd s ecurity

1Legal C ompliance

1Marketing s ervices

1Business A nalysis a nd M IS

B6C99 CAC 2CA67



B6C99 CAC 2CA67

Exports O perations – S OP’s 1Production p lanning a nd f orward c overage

1Capacity p lanning a nd e xpansion

1Make o r b uy d ecisions

1Procurements – L ocal, I mports

1Shipment c onsolidation

1Exports D ocumentation

1Selection c r iter ia f or C HA, F orwarders

1Credit c ontrol n orms, M ethod o f r ecoveries

B6C99 CAC 2CA67



B6C99 CAC 2CA67

Imports O perations – S OP’s 1Supplier v alidation – C redentials

1Capacity, f acil ity, G MP v alidation

1Commercial n egotiation

1Procurement – C ost, C redit t erms

1Logistics – F reight f orwarder, c ost, C HA

1Inspection, Q uality v alidation

67896 88A9



67896 88A9

1

Cost o f O perations1Operational e fficiency

1Customer E valuation

1

Procurement e valuation 1Quality o f C ustomer S ervices

1Scope f or I T u pgradation

1

Improvement i n M IS

A6 D8696C



A6 D8696C

CAC 7E6769A

1Strategic p lanning, O utsourcing & p articipation

1Total Q uality m anagement ( TQM)

1Just i n t ime

1Quick r esponses

1Value a dded c ustomer s ervices

1Logistics a s a c ompetitive w eapon



Thank Y ou

Have a g reat C areer

ahead



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4 Ethics is standardized form ofconduct/behaviour of individuals

understood and accepted in a particular

field of activity4 They give an idea what is right or wrong

, true or false , fair or unfair. E.g :

honesty , obedience, equality.4 Business ethics refers to the moral rules

and regulations governing the business

world

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4 In today's global & competitive

environment, people and business areexpected to behave in an ethical manner

& follow ethical standards

4 No one value system can be said to bebetter or more legitimate then others.

4 The challenge of globalization is to

48D 3AAD8D2D 2 E9

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3D4 Globalization of business have ethical

dilemma

4 The business standard followed code of

conduct, rules, polices are different.4 There are different thought , ideas ,

practices, languages, concepts which a

global business needs4 It takes the unique identity of a country

or region

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4

Exploitation of labour4 Harassment of women

4 Environmental issues

4 Misleading advertisement

D 4 F9 E 48ED



4 The world`s worst industrialcatastrophe. it occurred on the of

December 2 ,1984

4 26 yrs after the gas leaked , 390 tones oftoxic chemicals abandoned at the UCIL

plant continue to leak and pollute the

groundwater.4 By the end of 2009 , it was estimated

that 25000 people had died and nearly

6 00 000 eo le ere affected d e to as



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4

Analysis shows that parties responsiblefor the disaster are :

2 Union carbide corporation

2 Government of India

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Unit of Analysis : culture or nation

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What is disaster

• Natural disaster

• Manmade disaster

• Relatively sudden



y

• Relatively predictable

1

DISASTER CLASSIFICATION



Table showing classification of disasters

Source: Wassenhove, Van L.N (2006). “Blackett Memorial Lecture - Humanitarian Aid Logistics: Supply Chain Management inHigher Gear”. Journal of the Operational Research Society (2006) 57, 475-489. Fontainebleau, France.

DISASTER CLASSIFICATION

Number of Disasters 1970-2008•Of 311, catastrophic events in 2008, 137 were natural and 174 were man-made•

Most of 240,500 people who died of catastrophes in 2008 are from Asia



Source: Swiss Reinsurance Company Ltd. “Natural Catastrophes and Man-made Disasters in 2008”, Nov 2,2009.

What is humanitarian logistics (HL)?

Complex activity of providing relief to people at the time ofdisasters.

Humanitarian logistics is a specialized form of logistics thatdelves into supply warehousing and delivery in disasters



delves into supply warehousing and delivery in disasters.

It is a process of planning, implementing and controlling the

efficient, cost-effective flow and storage of goods as well asinformation from point of origin to point of consumption tomeet the beneficiary's requirements

It talks about arranging the resources related to deliveryand storage of the rescue material and supplies..

4

Objective and Role of HL

The ultimate objective of humanitarian logistics is to

ensure distribution time minimization along with costminimization and response maximization.



The role of humanitarian logistics is tough to measure

since there are many limitations related to naturalissues like- geographical situations, weather

conditions or other factors like- odd working

environment.

5

Challenges to HL

Demand irregularity

Abrupt occurrences High stakes related to delivery time appropriateness.



6

Focus of HL

More on providing and analyzing timely

informationGaining more insight on nature of disaster



view of logistics planning

Planning of relief activities

Identifying bottlenecks

Human factor

7

Concept of Cluster

• Importance of coordination

•Lack of coordination is a main cause of failure

• use of clusters for diverse functions like-sheltering logistics along with water and



sheltering, logistics along with water andsanitation to achieve functional coordination

• Use of Technology

• Flexibility in operations

• Requirements of HL and relief ops are different

from those of Business ops

8

Differences between HL and BusinessLogistics

Demand irregularity

Abrupt occurrencesHigh stakes

Poor infrastructure Seasonal constraints



Poor infrastructure, Seasonal constraints

Limitations on planning

Humanitarian objectives

Source of financing

Time and place value of inventory is far greater

than carrying cost and market value of inventory

9



10

PPT Model of HL



11

People

• The most significant component. Includes

all personnel in humanitarian logisticsactivity.

Th h t i h k it



• The human aspect in such makes it more

sensitive since it is directly related to livesof people.

• Smooth coordination between human

components is important

12

Process

• Includes processes and guidelines to

facilitate smooth implementation of actionplan.

• A carefully considered action plan smoothens



• A carefully considered action plan smoothens

right implementation of logistics.• Contingent approach is necessary, where

solution has to be sought based on situation.

• Contingent approach is necessary especially

when the pre-planned course of action fails.

13

Technology

• Technology forms the means of achieving

the end.• Use of radio frequency identification.

Radio waves facilitate effective tracking at



Radio waves facilitate effective tracking atthe time of disasters. Japan has beenpioneer towards using such systems.

• MERS (Mobile Emergency ResponseSupport)

• Satellite Imagery Mapping

14

Recent examples of HL ops in India

• Example of relative failure - Kedarnath

landslide• Example of relative success - Phalin Odisha



15

Three phases in Disaster ManagementCycle



16

Before an emergency logisticsmay entail

• Acquiring equipment

• Stockpiling supplies

• Designating emergency

Providing utility maps toemergency responders

Providing material safety datasheets to employees

EMERGENCY RELIEF LOGISTICS (ERL)During an emergency logisticsmay entail



Designating emergency

facilities

• Establishing training facilities

• Establishing mutual aid

agreements

• Preparing a resource inventory

sheets to employees

Moving backup equipment in

place Arranging for medical support,

food and transportation

Arranging for shelter facilities

Providing for backup power

Providing for backupcommunications

Emergency Relief Logistics requirements

Delivery of the appropriate supplies in good condition, when and where theyare needed.

A wide range of transport.

Limited, rapid, and specific deliveries from outside the area.

A t f i iti i i li f i t



A system of prioritizing various relief inputs.

Storing, staging, and moving bulk commodities.

Moving people

Coordination and prioritization of the use of limited and shared transportassets.

Possible military involvement in logistics support

18

ERL SUPPLY CHAIN

Donors and

Suppliers

Recipient Agency

•Government•Companies•Foundations

Stakeholders in the ERL supply chain:



Delivering Agency

People inNeed

•Foundations•Government•

NGO’s -Red Cross- World Vision

•Government agencies•Military•Global and localNGO’s •Local organizations

Critical components of ERL

Demand analysis

Inventory planning and control

Regional coordination and synergies

In-kind donations management

Collaboration among organizations



Collaboration among organizations

Constant communication Socio-economic impact assessment

Understanding regional political, economic andsocioeconomic conditions

Utilizing local capacity and capabilities

Humanitarian operation evaluation

20

Individual Assignment

• Take case of any ‘Emergency relief Logistics

Project’ or ‘Humanitarian Logistics Project’ inthe history.

• Obtain information about it from internet or



• Obtain information about it from internet or

otherwise.• Assess its success based on various

parameters.

21



New Technologies in Transport

• Road Transport

• Rail Transport

S T



• Sea Transport

• Air Transport

• Commercial cargo transport

Main Objectives of new technology in

Road Transport

• Improve efficiency

I f



• Increase safety

• Reduce damage to environment

Peculiarity in Road Transport

• Maximum independent actors

I h t i l t ti f t h l



• Incoherent implementation of new technology

Types of application of New

Technology to Road Transport

• Infrastructure based applications

V hi l b d li ti



• Vehicle based applications

• Applications for monitoring and enforcement

Infrastructure based applications

• Traffic sensors

• Sensors for wind and temperature• Auto incidence detection with video image processing,

radar, microwave sensors

• Ramp meter to restrict congestion and platooning



• Ramp meter to restrict congestion and platooning

•Electronic Toll

• Smart cards

• Collection, processing, dissemination, exchange of data andmessages using variable message signs, RDS (radio datasystem) /TMC (traffic message channel) to deliver traffic

and travel info to drivers, road side beacons, GSM, internet.

Vehicle based applications

• For driver’s assistance

F d i d t i t



• For reducing damage to environment

Applications for Driver’s assistance

• Navigation & Route Guidance – car navigationsystems, GPS for navigation, digital road network

database, dynamic and real time informationfrom traffic control centers, roadsidetransponders for vehicle-to-roadsidecommunication



communication

• Collision Avoidance – collision warning system,assisting system such as increased acceleratorresistance, semi automatic driving, speedmeasuring, inter vehicle distance measurement

with radar, IR beam, laser.


…… Contd.

•

Dynamic vehicle control is meant to assist driverin controlling lateral and longitudinal dynamicbehavior of the vehicle and stabilizing driving inorder to increase driver’s comfort reduce driver



order to increase driver s comfort, reduce driver

workload and improve safety. – Distance sensors

– Video cameras

– Lateral sensors

– Systems constantly correcting vehicle dynamics


…… Contd.

• Vision enhancement is aimed at assistingdriver’s vision in suboptimal visibility

conditions.



–Near IR headlights

– UV based headlights

– Imaging techniques


…… Contd.

• Driver and vehicle status monitoring isdetecting on time any deterioration of driver

or vehicle performance.



p

–Sensor for driver’s physiological condition

– Sensor for status of vehicular controls

– Systems for intervention


…… Contd.

• Speed control is meant to ensure thatappropriate speed is kept on each part of the

road network.



–Speed limiter in vehicles

– GPS

– Digital road network with speed limit data

Applications for reducing damage to

environment

• Light weight design

• Improved efficiency of engine

• Constant search for new materials

• Alternate fuels Example electric car batteries



• Alternate fuels. Example, electric car batteries,

fuel cells, solar panels, hybrid vehicles

• Cost effective recycling techniques

• Emission diagnosis systems

Applications for monitoring &

enforcement

• Low cost methods for speed detection

• Low cost methods for detecting movingviolations

• Electronic vehicle identification



Electronic vehicle identification

• Image processing such as video pictures


Air Transport• Aircraft manufacturers – energy saving, reducing damage to

environment, improving aircraft space utilization

•

Airlines – fuel efficiency, reduced maintenance, easy to changepilots, ability to use cost effective routes, prediction of arrival time,maximize time in air.

• Air traffic control – maximize air traffic load, assessment of aircraftposition and adherence to flight plan, computer aided planning,



p g p p p gharmonization among different air traffic control systems, reducing

minimum separation requirement to maximize airspace usage,accurate weather assessment

• Airports – cope with more take-offs and landings, faster loading,unloading and transfers, noise reduction, maximizing capacitywithin same ground area of airport

• Cargo interests – reduced cost of cargo transport, predictableschedules, faster transit, reduced cut-offs, improved safety

Application of new technology to Air

Transport

• Flight deck & navigation - Datalinks, enhancedcommunication technologies such as CNS, GCNN(global navigation satellite system), ADS(automatic dependent surveillance), 4D flying,FANS (future air navigation system), ADS



( g y ),

(automatic dependent surveillance)• Control automation – low visibility taxiing

assistance, high precision in-trail operations interminal areas, automated collision avoidance,

automated wind shear avoidance


Transport

…… Contd.

•

Flight management – improved error checking,error management, enhanced error tolerance,modification of flight plans

• Warning and Advisory GPWS (ground proximity



• Warning and Advisory – GPWS (ground proximity

warning system), GCAS (ground collisionavoidance system), TCAS (traffic alert andcollision avoidance system), millimetric radar andmicrowave systems for operation in poor

weather, advanced sensor and synthetic vision


Transport

…… Contd.

•Air traffic control – electronic data display,VHF datalink, SATCOM, SATNAV, graphicdisplay of aircraft separation, conformancemonitor what if displays problem solvers



monitor, what if displays, problem solvers,

electronic role monitors, trajectory prediction,conflict detection, flight path monitoring,IATMAS (integrated air traffic managementsystem)


Transport

…… Contd.

• Safety – MSAW (minimum safe attitude warning),STCA (short term conflict alert), TCAS (traffic alert

and collision avoidance system), GPWS (ground

)



proximity warning system)

• Interfacing – window environment for aircraft

position display and assistance tools, high

resolution display, voice recognition, handwriting

recognition


Rail Transport

• Safety• Speed

• Combined Transport



• Combined Transport

• Reduce damage to environment

• Driverless operation

Application of new technologies to rail

transport

• Radio datalink, GPS, Ground-train

communication• Transport powered by magnetic induction

• Onboard data transmission



•

Speed detection• Fault tolerant informatics

• Simulators for training

•

Light weight and impact absorbent material


Maritime Transport

•Reduced dependence on personnel skills

• Reduced crew on ships



• Safety

•Reduced damage to environment

Application of new technologies to

Marine Transport

•

Navigation Support

• Maneuvering and Collision Avoidance Support



• Integrated Bridge Systems

•Traffic Management Systems

Navigation Support

• GPS

• Electronic charts and maps



•Automatic route planning, display of ship’sposition, deviation planning

•

Intelligent autopilots

Maneuvering and collision avoidance

• ARPA (automatic radar plotting aid) to displayposition of ship against other ships

• Superimposition of radar information on ECDIS(electronic chart display and information system)



(electronic chart display and information system)

display products to combine position-monitoringand collision avoidance

• Sophisticated path prediction tools

Integrated bridge systems

• Navigation workstation with ECDIS (electronic

chart display and information system), ARPA(automatic radar plotting aid) radar, adaptive

autopilot.



•

Navigation workstation which can work bothonline and offline

• Communication station

•Maneuvering station

Traffic management systems

• Concept – Instead of letting each ship decide

for itself when and where it goes, there can beexternal influence on this decision.

• Protocols for providing supervisory function



over ships – VTS (vessel traffic services), VTIS(vessel traffic information services), VTMS

(vessel traffic management systems), MTC

(marine traffic control)

Technologies Transport area(s) of implementation

new sensor technology road, air, rail, maritime

image processing road, air,

speech recognition and synthesis road, air, rail, maritime

Global Positioning System road, air, rail, maritime

new visual information systems road, air, rail, maritime

new radio information systems road, air, rail, maritime

new transponder technology road, air, rail, maritime

smart card technology road rail

computers in vehicles road, air, rail, maritime

APPLICATION OF NEW TECHNOLOGIES



new displays in vehicles road, air, rail, maritime

new communication links road, air, rail, maritime

public information centers road, air, rail, maritime

internet as information source road, air, rail, maritime

simulators as training tools road, air, rail, maritime

real time data collection road, air, rail, maritime

real time data processing road, air, rail, maritime

real time data dissemination road, air, rail, maritime

electronic charts road, air, maritime

radar technology road, air, rail, maritimelaser technology road, air, rail, maritime

computer hardware developments road, air, rail, maritime

computer software development road, air, rail, maritime

automation road, air, rail, maritime

Growth of InfoTech• Branch of Engineering to a separate faculty

• Limited application to universal application

• Competitive advantage to Sustenance factor

• Basic to matured programming languages

• Prices of operating ability of computer and



• Prices of operating ability of computer and

data storage capacity

• Feasibility of investment into research

• Cost curve of new technology

Milestones in HiTech journey

• Hardware – Computer, PC, Mouse, Laptop, Handydrive, printers, handheld instruments

• Software – Basic to matured programminglanguages, threshold of talent, length of code, EDIand interfaces, Websites, ERP systems, Portals,



social media• Hardware connectivity – LAN, WAN, Internet,

cable, wireless

• People connectivity – Internet, email, handheld

instruments, social media

Far reaching effects of InfoTech

• Talent suction in IT sector

• Widened social gap

•

Transparency• Demanding consumer and citizen

• Effects on business organisations



•

Effects on political organisations• Increased and reduced people’s interaction

• Pressures at the place of work and health

hazards• Income levels and income difference

Use of InfoTech by Logistics Service

Providers

• Software systems and ERP systems• Outsourcing, insourcing, offshoring, BPO

• EDI and interfacing



g

• B2B eCommerce

• Barcoding and RFID

What is ERP system

• Several systems is same organization/location

• LAN, WAN, WWW, Internet• Need for EDI and interfaces

• EDI and interfaces – Challenges & Limitations



g

• Evolution of ERP and ERP system

• Concept of value chain

• Future – common system for Value Chain

What made ERP systems possible

• Internet technology – real time updates

• Concept of ERP• Optimization is of Enterprise vs optimization

of Fragment of Enterprise



• Example of Agent’s income in LCL consol.

Why common system for Value Chain

• Concept of optimization of whole

•Resources spent in exchanging data amongmembers of value chain

Challenges



•

Data ownership• Lack of trust

• Which system – different preferences

•Finally all parties are connected in value chains

Means of connection value chain

• Common system – not practical

•

Portals – ICEGATE – why provided by customs?• Why a forwarder/CHA is not suited to make

portal?

• Portal – INTTRA GTNexus – what is the



Portal INTTRA, GTNexus what is the

structure?• Portal – Amezon, Quickr – What is the business

model?

•

Data exchangers – WIN consortium – Where arethe savings?

Software and ERP systems

• Low willingness & ability to invest in InfoTech

• Reduced requirement of resources• Automated transactions

• Transaction reports, MIS, exception reports



p , , p p

• KPIs, SLAs, Balanced scorecard

• 4 stages of Systems Maturity of organization &

industry – transaction, analysis of past, future

action support, competitive advantage

Outsourcing, Insourcing, Offshoring,

BPO

• Definitions

• Cost leverage

• Consistent and unified processes



p

• Resource buffering

• Centers of excellence, KPO

EDI and interfacing – members of

value chain

• Vehicles (Ship, Aircraft, Truck, Train)

• Carriers (Ocean, Air, Road, Air)• Shipper, Consignee

• Middle entities and service providers (CHA,



p (

Freight Forwarder, NVOCC)

• Air Port, Air Traffic Controller, Sea Port, ICD,

CFS, Customs

• Bank

Case study ICEGATE

• Value proposition

•

Responsibility and prerogative of customs• Internal resistance

• eGovernance



•

Improvements in phases• Centralization of servers

• Failed customer service

•

Global best practice of interfacing

ICEGATE – transaction with customs

• Objectives of customs – revenue, control

• How customs works – green channel, physicalcheck, sample check, blacklisting, role of CHA

• CHA files shipping bill and bill of entry

• What is manifest? Who gives/takes manifest?



•

Manifest filed by forwarder, NVOCC, feederoperators, VOCCs.

• Issuance of BL/AWBL – master and house

• Issuance of BL/AWBL – filing manifest to customs

• Issuing BL/AWBL and filing manifest results intoincome and accountability.

Case study of BOLERO

• Internal chamber of commerce

• Container Shipping Lines’ Association (CSLA) • IATA

• Banking forum



• Customs forum

Case study of common system for

Customs union

• Common interests

Narcotics, arms, trade which is illicit in bothcountries

Commercial frauds

• Conflicting interests



• Conflicting interests

Trade which is illicit in only one country

Activities unofficially sponsored/encouraged byStates

Lack of trust

B2B eCommerce

• What is B2B electronic commerce

• Websites of Logistics Service Providers



• Portals of Logistics Service Providers

Common features of B2B sites of LSPs

• eBooking

• eShippingInstruction (eSI)

• eBL, printing oBL

• Online Tracking of shipment

• Online view of shipment details



•Online view of outstanding statement

• Online view of statistics

• Online payment

• Product information – schedules, transits,container types, contact details

Security features

• In which business, security is paramount?

• Why not in Logistics?• Secured password features

• IP certificate



• Secure features – eBooking, ESI, Shipmentdetails, Transactions, Outstanding statements,

Statistics

• Why not tracking of shipment?

Intranet

• Intranet vs Extranet

• Website and ERP system – what is intranet,what is extranet

• Benefits of Intranet



Barcoding and RFID

•Barcoding – product information, price, statusof sale, inventory management



• RFID – monitoring of variables, data captureand transmission, inventory management,

locator

Future cost curves

• Old and matures Technology – cost drops in future

•New Technology – expensive, compulsive

• Human Resource – steady or rising

• Water, Energy – rising, scarce



• Material – can be rising, falling, steady

• Green technology and Carbon points – Examples,

InfoTech will become cheaper, Paper will be come

expensive

Choosing the most suitable system

• Longevity of provider

• Longevity of programming tools

• Simulation of business model

•

Common user system vs customized system• Training requirement and intuitiveness

• Support commitment

• Changes to be done in future



•

Robust code, QC and bugs• Transparent pricing

• Transaction level – MIS level – decision level – Competitive advantage level

•

Preparedness of users and organisation• Danger of choosing the lowest price provider

Features of ERP system• Why codes and masters are used?

• For which fields, master is not used?

•

What are masters – examples of SKU code andParty code.

• What is a table? What are fields and records?

• What is a database?



• What is input and output?• What is form? What is report?

• Data, Information, MIS

• Information i.t.o. figures and graphs

• Statics vs dynamic reporting tools

PACKAGINGto be sent to [email protected]

mailto:[email protected]

mailto:[email protected]



DEFINITIONS

• Packaging as the material -: can bedefined as materials used for thecontainment, protection, handling,delivery, and presentation of goods.

• Packaging as the process -: can be



defined as the science, art and technologyof enclosing or protecting products duringits transport, distribution, storage,handling, sale, and use.

DEFINITIONS• Comprehensive definition -: Packaging is

defined as processes such as cleaning, drying,

preserving, counting and use of materials suchas glass, metal, paper or plastic employed tocontain, handle, protect, and/or transport, sellthe goods.



• Packaging used to be just a topic in engineering,advertising, logistics. Today it is a separatedomain of study & research.

• Indian Institute of Packaging http://iip-in.com/

PACKAGING MATTERS• Packaging is the essential final operation in

production of goods.

• Inadequate packaging can damage value ofgoods or cause damage due to goods. Eg.Naphtha

• Excess packaging increases price of goods cost

http://iip-in.com/

http://iip-in.com/

http://iip-in.com/

http://iip-in.com/



Excess packaging increases price of goods, costof transport, handling, distribution, storagewithout any value addition to goods. Eg. Egg

• Packaging determines minimum quantity of,transportation, handling, distribution and portionof consumption. Eg. Shampoo in sachet

BROAD CATAGORIES

•Primary Packaging (Consumer Packaging)

• Secondary Packaging (Distribution



Packaging)

• Transit Packaging (Transportation)

Packaging

PRIMARY PACKAGING• wrapping or cover or container handled by

the final consumer. Eg. toffee wrapper

•

Contains communication with finalconsumer, consumption relatedinstructions. Eg. Medicine bottle

• Focus on aesthetics, consumer



ocus o aes e cs, co su epreference, preserving value. Eg. Perfume

• Guarantees original goods in originalcondition. Eg. Cookies with tray & wrapper

• May be required to save remaining portionafter partial consumption. Eg. Eye drops

SECONDARY PACKAGING

• Larger cases or boxes that are used to

group quantities of primary packagedgoods for distribution and some times fordisplay in shops. Eg. Kitkat

• Bridges gap between consumer packing



and transportation packing. Eg. Carton• Contains handling instructions, quantity

• Focus on inventory size for distribution

intermediaries. Eg. Grain in gunny bags

TRANSIT PACKAGING• Wooden pallets, board and plastic

wrapping and containers that are used tocollate the groups into larger loads fortransport, which facilitates and optimizestransportation, loading and unloading. This



is called Unitization. Eg. Bottles on crate• Contains handling instructions and

quantity. Eg. Carton of medicines

•

Focus on transport and handling relatedconvenience. Eg. Container.

OTHER CLASSIFICATIONS OFPACKAGING

•

Returnable or reusable / Single use orDisposable. Eg. Coke in bottle and can

• Stiff / Semi stiff / Soft. Eg. Edible oil in can,



Stiff / Semi stiff / Soft. Eg. Edible oil in can,tetra pack, thin plastic bag.

• Types of material such as wooden, metal,

paper, glass, plastic.

FUNCTIONS OF PACKAGING

•PROTECTIVE FUCTIONS

• COMMERCIAL FUNCTIONS



• MANIPULATIVE FUNCTIONS

PROTECTIVE FUNCTION• Protection of value in goods.

•

Protection from goods.• Preserving original condition.

• Avoid or minimize damage during handling,

transport and storage



• Statutory compulsions

• Protection against expected hazards such as

atmospheric changes, physical and chemical

changes, shocks, mechanical damage

COMMERCIAL FUNCTIONS• Aesthetics and positive impression

•

Role of shop assistant in self-service shop• Making consumption easier & convenient

• Commercial and sales communication with

consumers and influencers



• Instructions to consumer, transporter, handler,

distributor, disposer

• Machine readable communication such as

barcode and RFID label• Increasing market reach, tapping new markets

MANIPULATIVE FUNCTIONS• The manipulative function lies in the

capability/power of the packing to shape a

product into an efficient, manipulative unitadapted in dimensions, mass/weight, shape andconstructional design for manipulation,transportation, warehousing, sale and



consumption.• Unitization and assortment suitable for handling,

transport, distribution and consumption

• Portion control

PROPERTIES OF PACKAGINGMATERIALS

• MECHANICAL PROPERTIES

• PHYSICAL PROPERTIES



• CHEMICAL PROPERTIES• OPTICAL PROPERTIES

• FUNCTIONAL PROPERTIES

MECHANICAL PROPERTIES

• Various Strengths and Breaking Points

• Rigidity/Stiffness i.e. movement resistance



• Coefficient of friction

• Adhesivity

PHYSICAL PROPERTIES

• Water permeability

•Steam permeability

• Fat permeability

• Gas permeability



• Heat permeability

• Light permeability

CHEMICAL PROPERTIS

• Action of water, weather, acid and base

• Presence of mineral and organic impurity,

traces, residues



• Chemical effects on goods, packing

material and printing

OPTICAL PROPERTIES

•

Transparency

• Opacity



• Reflection properties

•

Colors

FUNCTIONAL PROPERTIES

•Printability

• Thermal joining

• Adhesive joining



• Shrinkage

• Shaping and malleability

• Fire resistance

PACKAGING MATERIALS

•

Paper• Metals

• Wood

•



Textile• Glass

• Plastics

•

laminated (combined) materials

PACKAGING & ENVIRONMENT

http://en.wikipedia.org/wiki/File:Waste_hierarchy.svg



http://en.wikipedia.org/wiki/File:Waste_hierarchy.svg



PAPER PACKING• Easy availability of RM

• Low cost of production

• Variety of form, look and feel• Variety of rigidity, strength water and fat

permeability

• Printability and adhesivity



• Reusability and recyclability• Biodegradable

• Can be combined with wax, plastic, metal foil toimprove the properties

METAL PACKAGING

• Steel and Aluminum are most common

•

Mechanical strength and rigidity of frames• Impermeability

• Conductivity



• Chemical properties and corrosion

• Recyclability

• Price

GLASS PACKAGING

• Easy availability of RM

•

Reusability and recyclability• Chemically inert

• Variety of light permeability



• Rigidity

• Fragile, heavy

• Impermeability

TEXTILE PACKAGING

• Flexibility and pliability

•

Strength• Printability

• Permeability



• Reusability and recyclability

• Absorbs moisture

• Growth of microbes

WOODEN PACKAGING

• Availability of RM. But discouraged.

•

Easy to process• Mechanical strength

• Insulator and impermeable

•



Printability• Heavy and voluminous

• Absorbs water, degrades, decays.

•

Can be improved by treatment, coating,modification

PLASTIC PACKAGING• Easy to process and manipulate

• Variety of forms, shapes, sizes, look andfeel

• Can be combined with other materials

• Low cost

• Light weight



• Impermeability

• Microbe resistant

• Relatively inert

• Aging of plastic affects strength, color

• Effect of temperature and radiations

LAMINATED (COMBINED)PACKAGING MATERIAL

• Connecting several layers of packaging

materials

• Improvement of properties.



• Example – Tetra pack with combination of

layers of metal foil, paper and plastic

AUXILARY MEANS• Adhesives, adhesive tapes, connecting

material such as wires, nails, rivets

• Steel fittings on edges and corners

• Anti corrosive and water resistant layersand treatments

D i t h ili l l i



• Drying agents such as silica gel, aluminagel, cotton

• Fixing agents – holding, separating,

support, transfer of weight, fillers

PACKAGING MACHINES

• Blister packs and Vacuum Packaging Machines

• Bottle caps equipment, Lidding, Closing and Sealing Machines

• Cartoning Machines• Cleaning, Sterilizing, Cooling and Drying Machines

• Conveyor belts, Accumulating and Related Machines

• Feeding, Orienting, Placing and Related Machines

• Filling Machines : handling liquid and powdered products

• I ti D t ti M hi



• Inspecting, Detecting Machines• Label dispensers : Help peel and apply labels more efficiently

• Package Filling and Closing Machines

• Machines for : Palletizing, Depalletizing, Unit load assembly

• Shrink wrap Machines

BATCHING AND COUNTINGSYSTEMS

• Periodical batching system

• Continual batching system

• Dosers and batchers



• Machine counters

• Electronic counters

FOODSTUFF PACKAGING• Relatively more stringent regulations

•

Safe, nutritious, appealing to consumption• Preservation of original color, taste, flavor

• Food grade material for primary packing -traces, odors, contamination, leakage,

i b th i d t i t bilit



microbe growth, expiry date, printability

• Methods and materials of packaging forextending shelf life of fresh, minimally

processed and processed foodstuff

DEFINITION OF HAZMAT,DG,

RESTRICTED ARTICLES

•

Any kind of matter that can intrinsically orin certain circumstances adversely affect

life or property or environment

•

Cl ifi d i t i h d l d



Classified into nine hazard classes andfurther subclasses

NINE CLASSES OF HAZMAT• Class 1 -: Explosives (1.1 to 1.6)

• Class 2 -: Gases (2.1 to 2.3)

•

Class 3 -: Flammable liquids• Class 4 -: Flammable solids (4. to 4.3)

• Class 5 -: Oxidizing agents and organic peroxides (5.1and 5.2)

• Class 6 -: Toxic and infectious substances (6.1 and 6.2)

• Cl 7 R di ti b t



• Class 7 -: Radioactive substances• Class 8 -: Corrosive substances

• Class 9 -: Miscellaneous catagories

• HAZMAT labels http://www.fmcsa.dot.gov/facts-

research/research-technology/visorcards/yellowcard.pdf

PACKAGING HAZMAT• Stringent regulations

• Meticulous tally, inspection, track & trace

• Labeling and Emergency Response Guide

• Several regulations

•

C t l f t h i f t b i

http://www.fmcsa.dot.gov/facts-research/research-technology/visorcards/yellowcard.pdf









Control of atmospheric factors, barrier,separation, leakage, chemical and

physical changes.

•

Printability• Redundancy

PACKAGING LABELS/SYMBALS

•

Trademark• Proof of purchase

• Recycling symbols

• B d d RFID l b l



• Barcodes and RFID labels• HAZMAT labels

• Labels related to handling and storage

Significance of packaging in

clearance and logistics• Air transport packaging requirements as per IATA

• Packaging requirement for certification by QA agency

appointed by buyer• Packing List for customs clearance

• Marks and numbers

• Documentary proof of quantity

f



• Tally of quantity

• Packing material is exported and imported

• Claims of short landing

•

Handling and carrying convenience• Survival of CHAs and requirement of one window service

ASSIGNMENT

COMMON INSTRUCTIONS• Study the total packaging used from the place of manufacturing up to the

place of consumption in domestic as well as international markets.

• Interact with at least 2 parties such as manufacturer, trader, retailer, who

merged_document_2 all sem 4.pdf

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