Modern logistics infrastructure

LOGISTICS UNIT 4 CHP LOGISTICS INFRASTRUCTURE

1. MODERN LOGISTICS INFRASTRUCTURE

2. INTRODUCTION . Logistics infrastructure  is a critical enabler of India's agenda for economic development and urbanization. Recognizing its pivotal role, the Indian government will have tripled annual spending on  logistics infrastructure  over the past seven years, from about $10 billion in 2003 to $30 billion in 2010

3. INFRASTRUCTURE CONTAINERIZATION GQ PROJECT CFS AND ICD NETWORK CONCOR LOGISTICS PARKS COLD CHAIN LOGISTICS DEEP WATER PORT INLAND PORTS UNIT TRAIN MARITIME LOGISTICS

4. 1.CONTAINERIZATION

5. CLASSIFICATION OF CONTAINERS BASED ON: RAW MATERIAL SIZE USE STEEL CONTAINERS, ALUMINIUM CONTAINERS AND GLASS FIBRE REINFORCED PLYWOOD CONTAINERS . NORMAL CONTAINER HEIGHT IS 8 TO 8.5 FEET AND WIDTH IS 5 FEET TEU(TWENTY FEET EQUIVALENT UNIT) IS USED TO MEASURE FOR MEASURING SIZE OR CAPACITY OF CONTAINER GENERAL CARGO CONTAINER THERMAL CONTAINER LIQUID CARGO CONTAINER GAS CONTAINER

6. MARKING OF CONTAINER NAME OF THE OWNER ANY CODE OR LICENSE OR SERIAL NUMBER CONTAINER SERIAL NUMBER COUNTRY OF ORIGIN AND COUNTRY CODE CONTAINER TYPE CONTAINER VOLUMEAND CAPACITY MAXIMUM GROSS WEIGHT .

7. BENEFITS/ LIMITATIONS MAXIMUM UTILISATION OF VESSEL USE OF MECHANICAL HANDLING SYSTEM FOR LIFTING AND PLACING CONTAINERS REDUCES LABOUR COST AND SAVE TIME PRODUCT ARE NOT HANDLED DIRECTLY AAS THEY ARE STORED INSIDE THE CONTAINER.SO DAMAGE AND THEFT IS NOT POSSIBLE PRODUCT IS PACKED IN UNITIZATION AND PALLETIZED FORMAT SO REDUCES MATERIAL HANDLING COST.

8. CFS

9. CFS STANDS FOR CONTAINER FREIGHT STATION. ITS ALSO CALLED CONTAINER TERMINAL. A CONTAINER TERMINAL IS FACILITY WHERE CARGO CONTAINER ARE TRANS SHIPPED BETWEEN DIFFERENT TRNSPORT VEHICLES FOR ONWARDS OR FURTHER TRANSPORTATION. IT IS INTEGRATED PLATFORM FOR ACTIVITIES SUCH AS LOADING /UNLOADING,TRANSPORTING AND STUFFING DESTUFFING OF CONTAINERS ITS FOR TEMPORARY STORAGE. TRANS-SHIPPED TRAINS TRUCKS

10. IF ITS BY LAND VEHICLE IE FROM TRUCK TRAIN OR VICE VERSA THAT TERMINAL IS CALLED INLAND CONTAINER TERMINAL(ICT). FUNCTIONS OF CFS :- USED FOR CUSTOM CLEARANCE DEVELOP RELATIONS REDUCE CONGESTION ON PORTS INCREASE TRANSACTIONS LIMITATIONS:- REQUIRE SPACE CREATES ADDITIONAL COST REQUIRE MATERIAL HANDLING EQUIPMENTS REQUIRE TRAINED STAFF.

11. ICD INLAND CONTAINER DEPOTS ALSO CALLED AS INLAND CONTAINER TERMINAL IT LOCATED NEAR THE ENTRY POINTS OF MAJOR CITIES. FORMALITIES RELATED TO OCTROI, ENTRY TAXES ETC. ARE PERFORMED NEAR THESE ENTRY POINTS. IT CAN BE A ROAD TERMINAL ON THE NATIONAL HIGHWAY OR RAIL TERMINAL AT A MAJOR RAIL JUNCTION

12. MARITIME CONTAINER MARITIME TRANSPORT INVOLVES THE SHIPMENT OF GOODS(CARGO) AND PEOPLE BY SEA AND OTHER WATERWAYS. MORE THAN 80% OF WORK TRADE IS CARRIED OUT BY SEA, CONSITUTING BY FAR MARITIME LOGISTICS MEANS OF TRANSPORT OF GOODS. MARITIME LOGISTICS HAS BEEN TRADITIONALLY REGARDED AS THE PRIMARY MEANS OF TRANSPORTING PARTS AND FINISHED GOODS. IT INOVLVES PLANNING AND PERFORMANCE OF SENDING A SHIPMENT BY SEA AND OTHER WATERWAYS FROM POINT OF ORIGIN TO A POINT OF DESTINATION AND THAT TOO AT A REASONABLE COST.

13. DOUBLE STACK CONTAINERS IT IS A FORM OF INTERMODAL FREIGHT TRANSPORT WHERE TWO CONTAINERS ARE STACKED ON RAIL CARS THE CONCEPT WAS DEVELOPED BY NORTH AMERICA IN 1984. HOWEVER IN INDIA THE FIRST DOUBLE STACK WAS FROM JAIPUR PIPAVAV ROUTE WHICH BECAME OPERATIONAL IN MARCH 2006. THIS TECHNOLOGY,A FREIGHT TRAIN OF A GIVEN LENGTH CAN CARRY ROUGHLY TWICE AS MANY CONTAINERS,SHARPLY REDUCING COST PER CONTAINER. AT PRESENT INDIAN RAILWAYS CARRIES AN ESTIMATED 34 MILLION TONNES OF GOODS IN DOUBLE STACK TRAINS.

14. Another advantage is of double stack container is better weight bearing capacity utilization of a rail flat car. Can take upto 90 tonnes A problem with double stacking is that it require a higher clearance above the tracks due to added height of the second level of containers

15. UNIT TRAIN A UNIT TRAIN ALSO KNOW AS BLOCK TRAIN, IS A TRAIN IN WHICH ALL CARS CARRY THE SAME COMMODITY ARE SHIPPED FROM THE SAME ORIGIN TO THE SAME DESTINATION,WITHOUT BEING SPLIT UP OR STORED ENROUTE. THIS SAVES TIME AN MONEY,AS WELL AS THE HASSLE,DELAYS AND CONFUSION ASSOCIATED WITH ASSEMBLING AND DISASSEMBLING TRAINS AT RAIL YARDS. IT ALSO ENABLES RAILWAYS TO COMPETE MORE EFFECTIVELY WITH ROAD AND WATER TRANSPORT. THEY ARE ECONOMICAL ONLY FOR HIGH VOLUME CUSTOMERS THEY ARE USUALLY USED FOR THE TRANSPORTATION OF BULKY GOODS SUCH AS COAL,IRON, OIL,CARS ETC.

16. CONCOR (CONTAINER CORPORATION OF INDIA) CONCOR IS A PUBLIC SECTOR UNDERTAKING UNDER MINISTRY OF RAILWAYS. IT WAS INCORPORATED IN 1988 AND OPERATIONS STARTED FROM IN NOV 1989. INITIALLY TOOK OVER 7 ICD’S FROM INDIAN RAILWAYS OPERATIONS, NOW PRESENTLY THEY HAVE 59 ICD’S /CFS IN INDIA . THE DISTANCE IN INDIA IS ALMOST 3000KM FROM NORTH TO SOUTH TO EAST TO WEST . SO RAILMODE IS CHEAPEST MODE . WHERE THE CARGO(GOODS) ARE CONTAINERIZED AND INCREASES ECONOMY OF TRANSPORTATION.

17. CONCOR THREE CORE ACTIVITIES CARGO CARRIER TERMINAL OPERATOR WAREHOUSE OPERATOR

18. COLD CHAIN STORAGE COLD CHAIN LOGISTICS IS A SYSTEM THAT PROVIDES A SERIES OF FACILITIES FOR MAINTAINING IDEAL STORAGE CONDITION FOR PERISHABLE PRODUCTS REQUIRE COLD STORAGE TEMPERATURE FROM PONT OF ORIGIN TO POINT OF DELIVERY OR CONSUMPTION A COLD CHAIN STARTS FROM FARM LEVEL AND CONTINUES UPTO RETAIL LEVEL. A WELL ORGANISED COLD CHAIN HELPS IN REDUCING SPOILAGE AND MAINTAINING PRODUCT QUALITY

19. COLD STORAGE INFRASTRUCTURE PRE COOLING FACILITIES AT THE FARM CENTERS. COLD STORAGES REFRIGERATED CARRIER PACKAGING SYSTEMS INFORMATION PROCESSING SYSTEMS AT THE WAREHOUSE. CONTAINERS ACC. TO DEMAND PATTERN AT THE CENTERS

20. ADVANTAGES: Reduced cost due adequate avaliability of the prouduct . Increase customer satisfaction by making available in right condition and in righttime . Rduce wastage and reduce of expired stock. It is suitable to large organistaion with high investment Issues with accessibility:-like storage facility is not located near to where your stock needs to be transported you have to arrange refrigerator truck to transport goods which includes extra cost. Disadvantages:

21. Dedicated freight corridor A DEDICATED FREIGHT CORRIDOR CAN BE DESCRIBED AS A NETWORK OF RAILWAY LINES “DEDCIATED” FOR THE MOVEMENT OF FREIGHT TRAINS THEY ARE SEPARATE FROM PASSENGER RAILWAY THEY ARE ALWAYS PROVIDED WITH HIGH VOLTAGE OVERHEAD POWER LINE THAN THAT OF NORMAL PASSENGER RAILWAY NETWORK,SO THAT FREIGHT TRAINS CAN ATTAIN HIGHER SPEEDS. THE DEDICATED FREIGHT CORRIDOR OF INDIA IS A CORPORATION RUN BY THE GOVT. OF INDIA.

22. Under the Eleventh Five Year Plan of India (2007–12), Ministry of Railways is constructing a new Dedicated Freight Corridor (DFC) in two long routes name. The Eastern and Western freight corridors. The two routes covers a total length of 3,360 kilometres (2,090 mi), with the  Eastern Dedicated Freight Corridor  stretching FROM  LUDHIANA  IN  PUNJAB  TO  DANKUNI  IN  WEST BENGAL  AND THE  WESTERN DEDICATED FREIGHT CORRIDOR  FROM  JAWAHARLAL NEHRU PORT IN MUMBAI (MAHARASHTRA) TO DADRI IN UTTAR PRADESH. [2]  UPGRADING OF TRANSPORTATION technology, increase in productivity and reduction in unit transportation cost are the focus areas for the project.

23. Golden quadrilateral freight corridor THE INDIAN RAILWAY LINKING THE FOUR METROPOLITAN CITIES OF DELHI, MUMBAI, CHENNAI KOLKATA KNOW AS GOLDEN QUADRILATERAL

24. THIS GQ CONNECTS IMPORTANT CITIES LIKE BANGLORE, PUNE, AHMADABAD AND SURAT ON ITS WAY. IT’S THE LARGEST HIGHWAY PROJECT IN INDIA. ITS TOTAL LENGTH IS 5846 KM OF FOUR OR SIX LANE HIGHWAY. SAFETY FEATURES: GUARDRAILS, SHOULDERS AND HIGH VISIBILITY SIGNS ARE USED. IT IS MANAGED BY NATIONAL HIGHWAY AUTHORITY OF INDIA(NHAI).UNDER MINISTRY OF TRANSPORT AND HIGHWAY. IT ESTABLISHES BETTER AND FASTER TRANSPORT NETWORK BETWEEN MANY MAJOR CITIES AND PORT. IT WILL ENABLE FASTER, SMOOTHER, ECONOMICAL AND SAFER MOVEMENT OF PEOPLE IT WILL ALSO REDUCE WASTAGES, DAMAGES, AND SPOILAGE OF PERISABLE GOODS.

25. “ANY FIXED OR FLOATING MAN MADE STRUCTURE OTHER THAN A VESSEL, OR ANY GROUP OF SUCH STRUCTURES, LOCATED BEYOND THE TERRITORIAL SEA AND OFF THE COAST USED FOR LOADING AND UNLOADING OF SOLID, LIQUID OR GASEOUS CARGO” DEEP WATER PORT

26. INLAND PORT “ A PHYSICAL SITE LOCATED AWAY FROM TRADITIONAL LAND, AIR AND COASTAL BORDERS WITH THE VISION TO FACILITATE AND PROCESS INTERNATIONAL TRADE THROUGH STRATEGIC INVESTMENT IN MULTIMODAL TRANSPORTATION ASSESSTS AND BY PROMOTING VALUE ADDED SERVICE AS GOOD MOVE THROUGH THE SUPPLY CHAIN”

27. CHAP 15 LOGISTICS OUTSOURCING “ AS CONTRACTING OF ONE OR MORE OF COMPANY’S BUSINESS PROCESSES OR ACTIVITIES TO OUTSIDE SERVICE PROVIDERS IN ORDER TO REDUCE THE OVERALL OPERATING COST AND FOCUSING ON CORE COMPETENCIES. FOCUSING ON PRIMARY FUNCTIONS RATHER THAN I.E CORE COMPETENCIES AND THER BY REDUCE COST AND MAXIMUM UITLISATION OF RESOURCES..

28. WHY DO ORG. OUTSOUCE? LACK OF EXPERT TECHNOLOGY ABILITY AND FEASIBILITY RESOURCES AVAILABILITY OF CHEAP LABOUR OUTSIDE

29. OBJECTIVES OF OUTSOURCING REDUCING AND CONTROLLING OPERATIONAL COST. FOCUS ON PRIMARY FUNCTIONS GAINING ACCESS TO WORLD. MAXIMIZING USE OF EXTERNAL USE OF RESOURCES. ACQUIRE NEW SKILLS, NEW GROWTH. IMPROVE FINANCIALLY EHANCE MARKET CREDIBILITY. IMPROVE OVERALL PERFORMANCE.

30. Advantages of outsourcing SWIFTNESS AND EXPERTISE : OUTSOURCE VENDORS HAVE THEIR OWN EQUIPMENTS AND TECHNICAL EXPERTISE. REDUCE OPERATIONAL COST : NO NEED TO HAVE LABOUR IN HOUSE DIRECTLY OUTSOURCE AND SAVE COST. RISK SHARING : AS SOME ACTIVITIES ARE OUTSOURCE RISH IS SHARED AMONG BOTH THE PARTIES. STAFFING LEVELS :MINIMIZES THE FLUCTUATION IN STAFFING THAT MAY OCCUR DUE TO DEMAND PATTERN.

31. SAVE ON INFRASTRUCTURE AND TECHNOLOGY : IT ELIMINATES INVESTMENT IN INFRASTRUCTURE AND TECHNOLOGY VENDOR ITSELF TAKES THE RESPONSIBILITY TO COVER IT. INCREASING IN HOUSE EFFICIENCY : THE WORK LOAD IS SHARED BETWEEN IN HOUSE EMPLOYEES AND THE OUTSOURCED PARTNER. RUN YOUR BUSINESS 24*7: DUE DIFFERENT TIME ZONE IT IS ADVANTAGE TO WORK ALL DAY N NIGHT.

32. DISADVANTAGES: LOSS OF MANAGERIAL CONTROL: NO CONTROL ON THE FUNCTION OR ACTIVITIES WHICH ARE BEING OUTSOURCED. HIDDEN COST: THREAT TO SECURITY AND CONFIDENTIALITY: QUALITY PROBLEM: TIED TO FINANCIAL WELL BEING OF ANOTHER COMPANY:

33. SELECTION OF LOGISTICS SERVICE PROVIDER: DEFINING THE LOGISTICAL PROBLEM IDENTIFYING TE AREAS OF PROBLEM ESTABLISHING OBJECTIVES OF OUTSOURCING SEARCHING FOR POTENTIAL SERVICE PROVIDER AND ACCEPTING PROPOSALS EVALUATION OF PROPOSALS AND SELECTION OF SERVICE PROVIDER