GROUP : SCORAQURGROUP : SCORAQURTRANSPORTATION, WAREHOUSING, PACKAGING

AND

MATERIALHANDLING

Group membersGroup members

• Iqra siddiqui• Idrees waris• Erum irshad• Farheen ahmed quidwai• Sidra sarfaraz• Waqas yar khan• Saud saleem• Bibi laila• Ibtehaj• Sidra kaleem

TRANSPORTATIONTRANSPORTATION

RELATIONSHIP OF TRANSPORTATION TO OTHER BUSINESS FUNCTIONSRELATIONSHIP OF TRANSPORTATION TO OTHER BUSINESS FUNCTIONS

• Warehouse receiving and

shipping• Customer service• Distribution location

PRINCIPLES OF TRNSPORTATION FUNCTIONPRINCIPLES OF TRNSPORTATION FUNCTION

• Maximum vehicle unit• Standardization• Compatibility of unit load equipment

TRANSPORT MANAGEMENTTRANSPORT MANAGEMENT

The environment analysis

Deciding transport objectives

Select transport modes

Select transport type

Evaluation and control

Modes/modal of transportationModes/modal of transportation

Road

RAIL

SEA

AIR

PIPELINE

Transport FundamentalsTransport Fundamentals

Transport involves: equipment : (trucks, planes, trains, boats, pipeline),

People: (drivers, loaders & un-loaders)

decisions : (routing, timing, quantities, equipment size, transport mode).

Single-mode Service Choices and IssuesSingle-mode Service Choices and Issues

• Air • Rapidly growing segment of transportation

industry• Lightweight, small items [Products: Perishable

and time sensitive goods: Flowers, produce, electronics, mail, emergency shipments, documents, etc.]

• Quick, reliable, expensive• Often combined with trucking operations

Three main types of operations:Three main types of operations:

Regular service: Where major airlines use the cargo space in passage aircraft. That is not needed for baggage.

Cargo service: The second type is cargo service, where operations run cargo plane on regular schedules. These are public carriers.

Charter operations: In charter operation a whole aircraft is hire for a particular delivery.

Single-mode Service Choices and IssuesSingle-mode Service Choices and Issues

Rail Rail are public carrier rather than private carrier.

Large investment is needed for tracks, rolling stock and terminals.

Low cost, high-volume [Products: Heavy industry, minerals, chemicals, agricultural products, autos, etc.]

Advantages of rail

once the infrastructure is in place , it has very high capacity and low per unit cost. so it can be used to move large volumes of relatively low priced materials. Such as coal and minerals.

it discourages competition , as a track built by one organization between two points will have enough capacity to meet all demand.

Example: there is only one rail line under the English channel, but this has the enough capacity to ,meet the demand on this heavy used route for the foreseeable future.

Disadvantages of rail

The main disadvantage is its inflexibility.

All train service have to be timetabled in advance, so this leaves little flexibility for last minute or emergency deliveries.

Single-mode Service Choices and IssuesSingle-mode Service Choices and Issues

–Road: most widely used transport and is used at least somewhere in

almost all supply chains.

Flexible, small loads [Products: Medium and light manufacturing, food, clothing, all retail goods

door-to-door service avoid transfers to another modes and can give a shorter overall journey time.

Advantages of road transport

Extensive road networks.

Vehicles do not have to keep to such rigid timetables. So they can go on journeys at short notice and with little planning.

Single-mode Service Choices and IssuesSingle-mode Service Choices and Issues

• Water • One of oldest means of transport• Low-cost, high-volume, slow • Bulky, heavy and/or large items (Products:

Nonperishable bulk cargo - Liquids, minerals, grain, petroleum, lumber, etc )

• Standardized shipping containers improve service• 90% of the world trade is moved by sea.• World ‘s 20 biggest port handle over half of all world

trade.

Disadvantages of water transport

Main drawback with water transport is of course its inflexibility in limited to appropriate port.

Ships are relatively slow

Single-mode Service Choices and IssuesSingle-mode Service Choices and Issues

• Pipeline • The basic nature of a pipeline is unique in comparison of

any other modes of transport. Pipeline operate 24-hours basis, 7 days per week and are limited only by commodity change over and maintenance.

• Primarily for oil & refined oil products• Slurry lines carry coal or kaolin• High capital investment• Low operating costs• Can cross difficult terrain • Highly reliable; Low product losses

Disadvantages of pipeline

Pipeline are not flexible and are limited with respect to commodities than can be transported s only products in the form of gas liquid ca be handle.

Determining the Scope of Physical DistributionDetermining the Scope of Physical Distribution

Transportation—which mode to use? Common carriers

Transportation intermediaries available for hire to the general public.

Contract carriersTransportation intermediaries that

contract with individual shippers.Private carriers

Lines of transport owned by shippers

INTERMODAL TRANSPORTATIONINTERMODAL TRANSPORTATION

• PIGGY BACK or TOFC• FISHY BACK• AIR TRUCK

FRAMEWORK FOR CHOICE MODEFRAMEWORK FOR CHOICE MODE

• Traffic related• Shipper related• Service related

METHODS OF SELECTIONMETHODS OF SELECTION

Judgment Cost trade-off Distributions models Environmental analysis Channel strategy Trade-off analysis

THR TRANSPORT INTERMEDERIESTHR TRANSPORT INTERMEDERIES

Freight forwardersParcel postShippers associationBrokers

TRENDS IN MODERN TRANSPORTTRENDS IN MODERN TRANSPORT

WAREHOUSE

WAREHOUSE

?

BU

SIN

ES

S A

CT

IVIT

Y

Distributor

(Whole-seller)

Distributor

(Whole-seller)

RetailerRetailer

ConsumerConsumer

Production UnitProduction Unit

In-flow of Material

In-flow of Material

Production Warehouse Production Warehouse

Intermediate Warehouse

Intermediate Warehouse

Finished Goods Warehouse

Finished Goods Warehouse

DistributionDistribution

DepotDepot Distributor

(Whole-seller)

Distributor

(Whole-seller)

ConsumerConsumer

RetailerRetailer

Further ProcessingFurther Processing

WHAT IS WAREHOUSE

HISTORY

IMPORTANCE

• Material Handling Function

• Storage function

• Information Transfer function

• Customer Service function

FUNCTIONS OF WAREHOUSE

1.Material Handling Function1.Material Handling Function

• Receiving

• Storing

• Order picking

• Sorting

2. Storage Function2. Storage Function

• Product Pilling.

a. To avoid production stoppage.

b. To avail discounts.

c. Uncertainty

.

• Primary Functions of Warehouse

• Secondary Functions of Warehouse

3. INFORMATION TRANSFER FUNCTION3. INFORMATION TRANSFER FUNCTION

Transfer Picking ShippingShelvingReceiving

Primary Functions of Warehousing Process

ControlStocktakingBook-keeping

Secondary Functions of Warehousing Process

4. CUSTOMER SERVICE FUNCTION4. CUSTOMER SERVICE FUNCTION

Distributor

(Whole-seller)

Distributor

(Whole-seller)

RetailerRetailer

ConsumerConsumer

Production UnitProduction Unit

In-flow of Material

In-flow of Material

Production Warehouse Production Warehouse

Intermediate Warehouse

Intermediate Warehouse

Finished Goods Warehouse

Finished Goods Warehouse

DistributionDistribution

DepotDepot Distributor

(Whole-seller)

Distributor

(Whole-seller)

ConsumerConsumer

RetailerRetailer

Further ProcessingFurther Processing

Distributor

(Whole-seller)

Distributor

(Whole-seller)

DepotDepot

Distributor

(Whole-seller)

Distributor

(Whole-seller)

RetailerRetailer

ConsumerConsumer

Production UnitProduction Unit

In-flow of Material

In-flow of Material

Production Warehouse Production Warehouse

Intermediate Warehouse

Intermediate Warehouse

DistributionDistribution

ConsumerConsumer

RetailerRetailer

Further ProcessingFurther Processing

Distributor

(Whole-seller)

Distributor

(Whole-seller)

RetailerRetailer

ConsumerConsumer

Production UnitProduction Unit

In-flow of Material

In-flow of Material

Production Warehouse Production Warehouse

Intermediate Warehouse

Intermediate Warehouse

Finished Goods Warehouse

Finished Goods Warehouse

DistributionDistribution

ConsumerConsumer

RetailerRetailer

Further ProcessingFurther Processing

• Market Orientated.

• Production Oriented.

• Intermediately Oriented.

WAREHOUSE LOCATIONWAREHOUSE LOCATION

Finished Goods Warehouse

Finished Goods Warehouse

Distributor

(Whole-seller)

Distributor

(Whole-seller)

DepotDepot

Distributor

(Whole-seller)

Distributor

(Whole-seller)

RetailerRetailer

ConsumerConsumer

Production UnitProduction Unit

Production Store/

Warehouse

Production Store/

Warehouse

Intermediate Warehouse

Intermediate Warehouse

DistributionDistribution

ConsumerConsumer

RetailerRetailer

Further ProcessingFurther Processing

Raw Material

Raw Material

Packaging Material

Packaging Material

Ingredients

Ingredients

Production Oriented

Production Oriented

Market Oriented

Market Oriented

Intermediately Oriented

Intermediately Oriented

BLUE BAND MARGARINE

Cold Storage/ Finished Goods

Warehouse

Cold Storage/ Finished Goods

Warehouse

Distributor

(Whole-seller)

Distributor

(Whole-seller)

DepotDepot

Distributor

(Whole-seller)

Distributor

(Whole-seller)

RetailerRetailer

ConsumerConsumer

RefineryRefinery

Production Store/

Warehouse

Production Store/

Warehouse

Intermediate Warehouse

Intermediate Warehouse

DistributionDistribution

ConsumerConsumer

RetailerRetailer

Margarine DepartmentMargarine

Department Production Oriented

Production Oriented

Market Oriented

Market Oriented

Intermediately Oriented

Intermediately OrientedEXAMPLE

THE ROLE OF WAREHOUSING IN LOGISTICS SYSTEM

THE ROLE OF WAREHOUSING IN LOGISTICS SYSTEM

• Transportation Consolidation• Product Mixing• Service• Contingency Protection• Smooth Operation

Transportation Consolidation

• INBOUND LOGISTIC SYSTEM• OUTBOUND LOGISTIC SYSTEM

Transportation Consolidation

INBOUND LOGISTIC SYSTEM

SupplierVolume Shipment

Warehouse PlantSupplier

Supplier

Supplier

Types of WarehousesTypes of Warehouses

• i. Private Warehouses• ii. Public Warehouses• iii. Government Warehouses• iv. Bonded Warehouses• v. Co-operative Warehouses

Public warehousingPublic warehousing

• Company’s supply chain will incorporate some warehousing function. This can be company-owned, owned by a third party logistics (3PL) company or could be a public warehouse. At certain times, extra warehouse space is required due to any number of factors including; seasonal inventory, warehouse re-organization or warehouse damage. Whatever the reason the use of public warehousing is a useful tool for the supply chain manager as they try to find the greatest efficiencies in the supply chain. The public warehouse is not only a facility where a company can store their products, but the public warehouse offers inventory management, physical inventory counts and shipping functionality. The public warehouse charges their clients for a certain rate for the goods stored, the volume of the warehouse used and the services the client wishes to use.

Public warehousing-Advantages

Capability to expand market

Zero capital investment

Reduced risk

Adjust for seasonality

Public warehousing-Advantages

Special features and services

Tax advantage Greater flexibility

Specific knowledge for storage

Public warehousing-Advantages

Public Warehousing-Disadvantages

Communication problem

Lack of personalized service

Lack of space

Private Warehousing-Disadvantages

Use of HR

Tax Benefit

Intangible Benefit

Private warehousing Dis-Advantages

Lack of flexibility

High Operation Cost

High Start up Cost

Low Rate of Return

Public Vs Private warehousing

Degree of Control Title of Ownership Capital cost Level of Demand Expense Rates Risks

Private WarehousingPrivate Warehousing

• Storage facility owned by the firm whose goods are stored in it.

Contract WarehousesContract Warehouses

• The Contract ware house combines the best characteristics of both public and private warehousing. Contract Warehousing is similar to public warehousing other than the owner of the goods absorbs some of the cost risks by making a commitment to pay fees whether or not the space is utilized. The risks being shared by both the owner of the goods and the warehouse company means the costs will be less than public warehousing costs. In short, the contract warehouses can take total responsibility of logistics for a firm, leaving it to develop its expertise in manufacturer

On the basis of operationOn the basis of operation

Plant or base warehouse (centralized warehouse)Plant or base warehouse are usually company owned warehouses. These

are the integral part of the plant facilities. Their primary function is to receive products from the end of the assembly pipe line and store them tell they are shipped to the distribution center warehouse.

Distribution center warehouse (decentralized warehouse) A distribution center warehouse is primarily established for movement

of goods rather than for storage. It typically serves regional market, consolidates large shipments from different points of production, re-groups products into customer orders.

Warehouse Management systemWarehouse Management system

WMS will reduce inventory! WMS will reduce labor costs! WMS will increase storage capacity! WMS will increase customer service! WMS will increase inventory accuracy!

PackagingPackaging

Industrial PackagingIndustrial Packaging

Barrels

Individual products or parts are normally grouped into cartons, bags, bins, or barrels for handling efficiency.

Bin

Bags of coal

Carton

These containers are used to group individual products and are referred to as master cartons.

• When master cartons are grouped into larger units for handling, the combination is referred to as containerization or unitization.

• The master carton and the unitized load provide the basic handling unit in the logistics channel.

• The weight, cube, and fragility of the master carton in an overall product line determine transportation and material-handling requirements.

• If the package is not designed for efficient logistical processing, overall system performance suffers.

• Naturally, few organizations can reduce their master carton requirements to a single size.

• When master cartons of more than one size are required, extreme care should be taken to arrive at an assortment of compatible units.

The sizes of the four master cartons result in modular compatibility

• Of course, logistical considerations cannot fully dominate packaging design.

• The ideal package for material handling and transportation would be a perfect cube having equal length, depth, and width with maximum possible density.

• Seldom will such a package exist.

• The important point is that logistical requirements should be evaluated along with manufacturing, marketing, and product design considerations when standardizing master cartons.

Degree of ProtectionDegree of Protection

• The package design and material must combine to achieve the desired level of protection without incurring the expense of overprotection.

• It is possible to design a package that has the correct material content but does not provide the necessary protection.

• For package design, there are two key principles The cost of absolute protection will, in most cases, be

prohibitive. Package construction is properly a blend of design and

material.

Testing the packageTesting the package

• The determination of final package design requires considerable testing to assure that both marketing and logistics concerns are satisfied.

• Laboratory analysis offers a reliable way to evaluate package design as a result of advancements in testing equipment and measurement techniques.

Damage ProtectionDamage Protection

• Package damage results from the transportation, storage, and handling utilized.

• If privately owned and operated transportation is used, the product will move to its destination in a relatively controlled environment.

• On the other hand, if common carriers are utilized, the product enters a non-controlled environment.

• The less control a firm has over the physical environment, the greater the packaging precautions required to prevent damage.

Causes of DamageCauses of Damage

• The four most common causes are – vibration – impact – Puncture – compression

• Within the logistical system, combinations of these forms of damage can be experienced whenever a package is in transit or being handled.

Packaging for Material Handling EfficiencyPackaging for Material Handling Efficiency

• Package utility concerns how packaging impacts logistical productivity and efficiency.

• All logistical operations are affected by packaging

Product DesignProduct Design

• Product packaging in standard configurations and other quantities facilitates logistical efficiency.

• For example, reducing package size can improve cube utilization.

• This can be accomplished by concentrating products (e.g. orange juice) or eliminating air inside packages by shipping items unassembled.

• In most cases dunnage materials (like polystyrene foam peanuts) can be minimized simply by reducing box size.

• IKEA, the Swedish retailer of unassembled furniture, emphasizes cube minimization to the point that it ships pillows vacuum-packed.

• Cube minimization is most important for lightweight products such as assembled lawn furniture that cubes out a transport vehicle before weight limits are reached.

• For example, substituting plastic bottles for glass significantly increases the number of bottles that can be transported in a trailer.

UnitizationUnitization

• The process of grouping master cartons into one physical unit for material handling or transport.

• The concept of containerization includes all forms of unitization, from taping two master cartons together to the use of specialized transportation equipment.

• All types of containerization have the basic objective of increasing material-handling efficiency.

• Unit loads provide many benefits over handling individual master cartons.– First, unloading time and congestion at destination are

minimized.

– Second, product shipped in unit load quantities facilitates materials handling. In bound shipment verification is also simplified as receipts can be bar coded. Inventory can be positioned rapidly for order selection.

– Finally, in-transit damage is reduced by unit load shipping and specialized transportation equipment.

BenefitsBenefits

• Reduces damage in handling

• Reduces pilferage

• Reduces protective packaging requirements

• Provides greater protection from environment

• Provides a shipment unit that can be used many times repeatedly.

CommunicationCommunication

• The third important logistical packaging function is communication, or information transfer.

• This function is becoming increasingly critical to provide content identification, tracking, and handling.

• The most obvious communications role is identifying package contents for all channel members.

• Typical information includes manufacturer, product, type of container (can versus bottle), count, and Universal Product Code (UPC) number, Electronic Product Code (EPC) and may be communicated using a bar code or RFID technology.

• Visibility is the major content identification consideration as material handlers should be able to observe the label from reasonable distances in all directions.

MATERIALS HANDLINGMATERIALS HANDLING

Materials HandlingMaterials Handling

• Advancements in materials handling technology and equipment offer the potential to substantially improve logistics productivity.

• Materials handling process and technologies impact productivity by influencing personnel, space, and capital equipment requirements.

• Material handling is a key logistics activity that can’t be overlooked.

Principles of Material HandlingPrinciples of Material Handling

• Equipment for handling and storage should be as standardized as possible.

• When in motion, the system should be designed to provide maximum continuous product flow.

• Investment should be in handling rather than stationary equipment.

• Handling equipment should be utilized to the maximum extent possible.

• In handling equipment selection the ratio of dead weight to payload should be minimized.

• Whenever practical, gravity flow should be incorporated in system design

Types of Handling SystemsTypes of Handling Systems

• Mechanized Systems

• Semiautomated Systems

• Automated Systems

• Information-Directed Systems

Mechanized SystemsMechanized Systems

• Mechanized Systems employ a wide range of handling equipment.

• The types of equipment most commonly used in mechanized systems are:

• Lift Trucks• Rider Trucks• Towlines • Tractor Trailers• Conveyors • carousels

Lift TrucksLift Trucks

• Lift trucks also called forklifts.

• Lift trucks can move loads of master cartons both horizontally and vertically but are limited to handling unit loads.

• Types of lift trucks are:– High-Stacking trucks.– Pallet-less or Clamp trucks

Rider TrucksRider Trucks

• Rider trucks provide a low-cost, effective method of general materials handling utility.

• Rider trucks are widely used in consumer package goods warehouses.

• Rider truck is operating typical applications include loading and unloading of transportation equipment, order selection and accumulation, and shuttling loads.

Towlines Towlines

• Towlines are utilized to provide continuous power to four-wheel trailers.

• The main advantage of a towline is continuous movement.

• The most common application of towlines is for case goods order selection.

Tractor TrailersTractor Trailers

• Tractor trailers consist of a driver-guided power unit towing a number of individual four-wheel trailers.

• The tractor in combination with trailer, like a towline, is used during order selection.

• The main advantage of a tow tractor with trailers is flexibility.

Conveyors Conveyors

• Conveyors are used widely in shipping and receiving operations and serve as the basic handling device for a number of order systems.

• Conveyors are classified according to power, gravity and roller or belt movement.

• In power configuration, the conveyors is driven by a chain.

• In gravity and roller driven applications permit rearrangement with minimum difficulty.

Carousels Carousels

• Carousel operates on a different concept than most other mechanized handling equipment.

• The typical carousel application is for the selection of packages in such items as pack, repack and service parts.

• Carousel systems also utilized computer-generated pick lists and computer-directed carousal rotation to further increase order selector productivity.

Semiautomated SystemsSemiautomated Systems

• Mechanized handling is often supplemented by semiautomatic equipment.

• Typical equipment utilized in semiautomated handling includes:– Automated Guided Vehicles [AGV].– Computerized Sortation.– Robotics.– Live Racks.

Automated Guided Vehicles [AGV]Automated Guided Vehicles [AGV]

• The AGVS is a mechanized material handling equipment without an operator.

• The system consists of four components.– Vehicle for movement.– Pickup and drop off locations.– Guidance system.– Computer control system.

Computerized SortationComputerized Sortation

• The sorting device will sort the material based on the sorting code.

• The optical sensing reads the bar code on the items.

• The automatic sorting device increases system productivity through,– Speed– Accuracy– Elimination of manual labor.

RoboticsRobotics

• These are human like machines with microprocessor to perform the programmed activity or series of activities.

• Robotics can be used for break bulk or consolidation operations.

• Robotics can be used in extreme temperature environments like cold storage or deep freezers.

Live RacksLive Racks

• Live racks are commonly used to reduce manual labor in warehouses is storage rack design in which product automatically flows to the desired selection position.

• The use of the live rack reduces the need to use lift trucks to transfer unit loads.

• The advantage of live rack storage is the potential for automatic rotation of product as a result of rear loading.

Automated SystemsAutomated Systems

• The concept of automated handling has offered great potential and limited accomplishment.

– Potential to automate

– Order selection

– Automated storage/retrieval

Potential to automatePotential to automate

• An Automated system has the potential to operate faster and more accurately than its mechanized counterpart.

• Automated system have been designed and constructed for specific applications.

• Information technology plays an important part in all handling systems.

• A major disadvantage of automation is its dependency on proprietary information technology networks.

Order selectionOrder selection

• The basic objective was to integrate mechanized, semiautomated, and automated handling into a system that offers the advantages of high productivity and accuracy while using minimal labor.

• The general process begins with an automated order selection device preloaded with product.

Automated storage/retrieval Automated storage/retrieval

• Automated storage system that use high-rise storage is a popular form of automation.

• The initial function of the storage equipment is to reach the desired storage location rapidly.

• The storage machine is positioned to service different aisles by transfer cars.

Information-Directed SystemsInformation-Directed Systems

• The concept of information-directed handling is relatively new and the subject of a great deal of research and development.

• Information directed systems use mechanized handling controlled by information technology.

• There are two common examples of information-directed material handling systems.– RF Wireless (Wi-Fi)– Pick-to-Light

RF Wireless (Wi-Fi)RF Wireless (Wi-Fi)

• The basic use of Wi-Fi to instruct movement of lift trucks is expanded in an information-directed application to become a highly integrated materials handling system.

• The main advantage of RF is to improve speed and flexibility of lift truck operations.

• RF technology provides real-time communication to central data processing systems.

Pick-to-LightPick-to-Light

• Pick-to-light is a carousel system variation that is becoming increasingly common.

• In these systems order selectors pick designated items directly into cartons or onto conveyors from lighted carousel locations or storage bins.