IB-int log1

8/2/2019 IB-int log1

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Inland Container Depot & ContainerFreight Stations

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An Introduction

What is an Inland Container depot?

What is Container freight station?

Distinction between ICD & CFS?

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Key pillars of ICD & CFS

Rail Siding

Container yard

Warehouse

Gate Complex

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Operation and Documentation Imports

Importerfiles bill ofentry

Assessment ofgoodsandpaymentof duty

Takinggoodsout ofcustomsarea

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Operation and Documentation Exports

Step I

Goods brought to CFS under shipping bill

Cargo received by custodian

Step II Stuffing of goods in container

CBT is sealed by customer officer

Step III Ready for exports

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Functions of ICD and CFS

The primary functions of ICD and CFS are :

Receipt and dispatch/delivery of cargo

Stuffing and stripping of containers Transit operations by rail/road to and from serving ports

Customs clearance

Temporary storage of cargo and containers

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Benefits of ICD & CFS

The following benefits are envisaged from an ICD/CFS :

Concentration points for long distance cargos and theirunitization

Service as a transit facility

Reduced level of demurrage and pilferage

No customs required at gateway ports

Competitive transport cost

Reduced inventory cost and increased trade flows

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Procurement of

Raw materials


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Procurement is acquisition of goods and/or services at the best possibletotal cost of ownership, in the right quantity and quality, at the right time,in the right place and from the right source

Importance

Acquired goods and services must be available to the firm for usage atthe desired time for efficient utilization

Procurement cost often ranges from 60% to 80% of the firms revenue

Objectives

I. To support Operational requirementII. To manage purchasing process efficientlyIII. To select, develop and maintain sources of supplyIV. To develop strong relationship with other functional groups

V. To support organizations goals and objectives 10


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Procurement Process

Planning

Specification

Evaluation

Relationship management

Transportation and holding costs

Implementation

Monitoring and improving

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Procurement ProcessPlanningHonest assessment of international sourcing opportunitiesManagement of more variable lead timesStandardized process

SpecificationKnowledge about markets, products, and procedures

Terms of sale

EvaluationAdvantage over domestic sourcingAdditional Transportation cost

Currency shiftsISO certification

Relationship ManagementExpectations need to be exchanged

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Procurement Process

Transportation and Inventory Holding CostsService and cost fluctuations

Higher transportation costs

Greater inventory holding costs

Customs and other inspections

Payment of import duty if applicable

ImplementationHigher chance of failure due to complexity

High flexibility required

Monitoring and improvingDynamic

Continuous monitoring

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Additional Considerations

Child Labor

Reduced Tariffs

Foreign Trade ZonesConvenient transshipping points

Pool of lower cost labor

CountertradeBarterBuyback

Switch trading

Counter purchasing

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DocumentsSales Contract

Letter of CreditBank undertaking of payment

reducing the payment risks

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International Packaging

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International Packaging Issues

Packaging is instrumental in getting the merchandiseto the destination in a safe, presentable condition.

Because of the added stress of international shipping,

packaging that is adequate for domestic shippingmay be inadequate for international shipping.

Packaging considerations that should be taken intoaccount are environmental conditions and weight.

Cost attention must be paid to internationalpackaging.

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International Standards

PURPOSE:-

Harmonize requirements between signatory countries.

International Standards help to ensure that import requirements have ascientific basis and are not used as unjustified trade barriers.

International Standards provide guidance to countries developing importrequirements.

Less likely to be challenged under WTO if standards are followed.

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Packaging and Packing

Packaging:-* Polythene Bags* Box made of card paper or card board

* Box made of fibre board/plastic/acrylic/sheets.

Wooden Boxes: The most useful forms of packing as these are strong enough towithstand the load places on the top of it without crushing or cousins damage. The

weight of a standard wooden box should not exceed to 100 kg.

Fiber Board or Corrugated Board Boxes : Useful for shipment of non-fragile goods. .These boxes have light weight, saves in shipping cost with a good

deal of strength, fair resistance to moisture, compression

Steel Drums:- Used for sending liquids in bulk. A drum should normally not exceedmore than 250 kg. Second hand drums should be used only if the buyer has agreed to

use.

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Labeling

Labeling informs the parties involved in the movement of exactly thenature and quantity of package contents.

Labeling regulations generally attempt to

(1) Force shippers to adhere to the specified product standards,

(2) Restrict and control the use of additives,

(3) Prohibit the use of misleading information,

(4) Establish the standard description of products.

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Labeling requirements of different countries

The label should contain the following information

Country of origin

Specification of the product (Size, Weight etc)

Lot number of consignment.

In Oman, use of adhesive label on product is prohibited. Label should also be printed in both

Arabic and English.

In Germany, the label on the textile item must indicate the origin of the fabric used

In Canada, each package must carry label, printed in English and French.

Factor to be taken care

* Include only relevant information* Use the language of importer's country, if possible

* Check spelling of information, given on label. An error can lead the conclusion that the

exporter is careless.

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Country of origin




Arabic and English.







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Country of origin




Arabic and English.







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Warehousing Management

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Warehouse Definition

Its a part of a firms logistics system that stores products at

and between point-of-origin and point of consumption, and

provides information to management of the status, condition,

and disposition of items being stored.

Warehouse- More than a storage facility

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Warehousing Activities

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Objectives of WMS

To provide a set of computerized procedures to handle the receiptof stock and returns into a warehouse facility

Model and manage the logical representation of the physicalstorage facilities (e.g. racking etc)

Manage the stock within the facility and enable a seamless link toorder processing and logistics management in order to pick, packand ship product out of the facility

Examples of WMS: ERP, RFID

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Types of Warehouses

Private Warehouse

owned and operated by channel suppliers and

reseller ; used in their own distribution activity Public Warehouse

space that can be leased to solve short-termdistribution needs

Automated Warehouse

extensive use of computer and robotics technology

Climate-Controlled Warehouse

For products that need special handling conditions

Distribution Centre

serve as points in the distribution system at whichproducts are received from many suppliers andquickly shipped out to many customers

Cross Docking , Milk Runs, Hub and spoke model

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International Federation of Warehousing andLogistics Associations (IFWLA)

Legal office in London. 18 members (Major Members are India, US, UK, Canada, China, Japan,

Australia)

Purpose :

Promotes the warehousing and logistics industry

Collect, study and exchange informationViews on matters of common interest to members

Advance global connections and good relationships between members.

Warehousing Logistics industry convention (annually) :

Provides participants with unique opportunities to explore differentbusiness models, experience cultural venues and develop businessconnections.

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International warehouseLogistic Association(IWLA

Formed by merger of Canadian Association ofWarehousing and Distribution Services (CAWDS) withthe American Warehouse Association (AWA)

Founded in 1891

Headquartered in Chicago

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Benefits of Partnering With anIWLA Member:

Increased shipment visibility Improved technology and service

Local expertise in new or emerging markets

Improved customer service through shorter shipment times

Reduced inventory costs through better management

Cost benefits through volume shipping discounts

Risk reduction

Increased expertise in supply chain security

Reduced total delivered cost for your customer

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i l i i f


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Came into existence in 1891

Purpose :

To facilitate storage of perishable foods which requires complexity ofoperating temperature controlled storage facilities.

IARW's goals and activities :

Collecting information and encouraging the exchange of ideas

Aggressively promotes more efficient distribution of services.

Aids members in adopting new technology

Advises members of legislation and regulations affecting the food industry,assists members in complying with U.S. and international regulations

Participates in alliances with industry and international organizations having acommon interest in the safe and efficient flow of food products around the world.All active members of IARW are also members and beneficiaries of the work ofThe World Food Logistics Organization(WFLO

International Association ofRefrigerated Warehouses(IARW)

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Central Warehousing Corporation

Came into existence in 1957

The Corporate Office is located at "WAREHOUSINGBHAWAN, New Delhi

CWC has 18 Regional Offices located in major state capitals ofthe country.

Purpose

providing logistics support to the agricultural sector. It is oneof the biggest public warehouse operators in the countryoffering logistics services to a diverse group of clients

CWC is operating 469 Warehouses across the country

CWS has a storage capacity of 9.98 million tonnes

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Services Provided by CWC

Storage

ICD/CFS Services

Bond facility

Air Cargo Operations

Container Train Operations Integrated Check Post Service

Pest Control

FESS(Farmers Extension Service Scheme

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International Insurance

One of the most complex issues in InternationalLogistics

The complexity of the field is substantial .

Many of the risks are misunderstood

The terminology is misleading

The carrier offers limited coverage

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Documentation Required:

Abill of lading is a contract between the exporter andthe carrier indicating that the carrier has acceptedresponsibility for the goods and will providetransportation in return for payment.

Acommercial invoice is a bill for the goods stating

basic information about the transaction, including adescription of the merchandise, total cost of the goodssold, addresses of the shipper and seller, and deliveryand payment terms.

Afreight forwarder specializes in handling export

documentation.

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Terminology:

Average: Loss incurred on an ocean voyage bya cargo owner .

General Average

Particular Average

Barratry

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Causes of Losses:

Overboard Losses

Jettison

Fire

Sinking Theft

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Marine Cargo Insurance:

Open Insurance: Insurance Contract withwhich a firm insures every internationalshipment it makes for a fixed amount of time .

Special Cargo Policy: Customized option forevery shipment.

Hull Insurance: risk of damage incase of fireor sink .

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What doesnt come under

Insurance

Improper packing

Inherent Vice

Ordinary Leakage

Unseaworthy Vessel Nuclear War

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