KRITAVARRMAAN A/L

BALASUBRAMANIAM
Modular Programme Assessment (Individual)
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assignment.

Name of Module: ACCOUNTING

Module Code: B G B 1 0 2 3

Lecturer: MR VINCENT NG ZHI LUN

Assessment Type: Individual Assignment

Portfolio
Quiz
Mid-Term Test / Test
Case Study
Other : _______________________________________

Lecturer Name Mr. R. RAJAMOHAN

Submission Date: 20/11/2023

Student No. : 20230342-01-31939 Signed: kritavarmaan

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INTRODUCTION

Logistic management, also known as supply chain management, is the process of planning, implementing, and
controlling the efficient flow and storage of goods, services, and related information from the point of origin to
the point of consumption. It involves various activities including procurement, production, transportation,
warehousing, inventory management, and customer service.

The main objective of logistic management is to ensure the availability of the right products, at the right place, at
the right time, in the right quantity, and at the right cost. It plays a crucial role in optimizing the overall supply
chain operations, maximizing customer satisfaction, and minimizing costs and risks.

Effective logistic management involves strategic decision-making, coordination, and collaboration among
different stakeholders, including suppliers, manufacturers, distributors, retailers, and customers. It requires
careful planning and analysis of factors such as demand forecasting, transportation routes, inventory levels, and
order processing. With the advancements in technology and globalization, logistic management has become even
more important.

Companies now have access to advanced tools and systems that enable real-time tracking of shipments,
optimization of routes, and efficient warehousing practices. This allows for greater accuracy, speed, and
flexibility in the supply chain, resulting in improved customer service and reduced operational costs. In
conclusion, logistic management plays a vital role in ensuring the seamless flow of goods and services, from the
initial production stage to the end customer. It helps businesses stay competitive in the dynamic marketplace by
optimizing their supply chain operations and meeting customer demands effectively.

Chapter 1 : Introduction to Logistics Management

1.1 What is Logistics?

Logistics is the process of coordinating how goods and products are obtained, stored and distributed.
Manufacturers rely on logistics while overseeing complex operations in order to maintain efficiency, reduce
costs and ensure that consumers’ needs are met.

Due to the prominence of e-commerce companies, like Amazon, logistics embodies more than the actual
movement of products from one place to another.An important part of logistics is the steps taken in order to
maximize customer satisfaction. This includes elements such as demand planning, order fulfillment, inventory
management and customer service operations. These elements ensure that the goods consumers need are stocked
and orders are fulfilled in a timely manner.

Logistics management software has aided the expansion of what the logistics industry entails and how goods are
brought to consumers. Some examples of software for the logistics industry include transportation management
systems, enterprise resource planning software, yard management systems and warehouse management systems.
The growth of this technology has created a need for specialized roles and companies focused on building and
implementing logistics software.

As technology continues to transform our world, its influence on the logistics industry will only become greater,
prompting a shift in how companies quickly and efficiently deliver their products to consumers.

1.2 Logistics management

Logistics management is a subset of supply chain management that focuses specifically on the planning,
implementation, and control of the efficient movement and storage of goods, services, and related information
within a supply chain. It involves the coordination of various activities to ensure that products are delivered to
the right place at the right time, in the right quantity, and in the right condition. Here are some key aspects of
logistics management

1.3 Logistics usually refers to Management of:

Logistics management is a subset of supply chain management that focuses specifically on the planning,
implementation, and control of the efficient movement and storage of goods, services, and related information
within a supply chain. It involves the coordination of various activities to ensure that products are delivered to
the right place at the right time, in the right quantity, and in the right condition. Here are some key aspects of
logistics management

1.4. Logistics Activities

a) Customer Services :Customer services is the output of entire logistics system. Customer services department
will handle complaints, special orders, damage claims, return, billing problem.

b) Demand forecasting:Demand forecasting estimate the need for precise amount of product and service that
customers will require in the future.

c) Transporatation : Refer to movement of goods from one point to another points by using various mode of
transportation.

d) Warehousing : It refers to places where goods can be stored for particular period of time.

e) Inventory Management: Inventory management deals with balancing the cost of maintaining additional
products on hand againts the risk of not having those items when customer wants thems.

f) Packaging: Industrial packaging focuses on protecting the products while it being transported and store.

g) Procurement : Procurement is the purchase of materials and services from outsides to support the firm’s
operation to marketing,sales and logistics.

h) Material Handling: Material handling is a broad sense concerning all short distances movement of raw
materials, work in process or finished good within factory or warehouse.

i) Information management: Information links all area of the logistics system together. Information processing
is becoming increasingly automate, complex and rapid.
1.5 Importance Logistics Management
Chapter 2 : Passenger Management

2.1 Who is passenger?

A passenger is an individual who travels in a vehicle, such as a car, bus, train, airplane, ship, or any other mode
of transportation, without actively participating in its operation. Passengers are those who are being transported
from one place to another and are not responsible for controlling or navigating the vehicle.

2.2 Carriage of passenger

Carriage of passengers generally refers to the transportation of individuals from one location to another using
various modes of transportation. Common modes of passenger carriage include airplanes, trains, buses, taxis,
and ferries. Passenger carriage services play a crucial role in providing convenient and efficient transportation
options for people to travel within or between cities, countries, and even continents. These services are essential
for commuting, tourism, and business travel.

2.3 Main Passenger Modal Options

To support their mobility, passengers have several modal options depending on the type of movement (e.g.
commuting, traveling), the concerned distance, and modal availability. They fall into four general categories:

2.3.1 Air Transportation

Air transportservices usually provide a scheduled services offered by competing within air carriers depends on
their respective networks. Schedules services required customer to book in their system in advance according to
availability. For charter carrier services are usually offer under specific circumstances or for private travelling.

2.3.2 Road Transportation

Road services offers two categories of transport which known as motorized and non-motorized options for
mobility over short-distances that a user may option depend on affordability, convenience, availability, and
comfort.

2.3.4 Rail Transportation

Rail services offer intercity and long distance travelling for customer to access in many location either in rural or
urban area. Intercity passenger services that have been active in many parts of the world for a century and a half
are being expanded by setting high speed rail (HSR)services between high-density city-pairs.

2.3.5 Maritime Transportation

Maritime transportation services to carry passenger has substantially declined but remains essential for ferry
services. But for the cruise ship basically used as a touristic option between a network of ports of call instead of
transportation.

Chapter 3 : Cargo Management

3.1 What is cargo?

Cargo refers to the goods or products being transported from one place to another, typically by air, sea, or land.
It can include various items such as raw materials, finished goods, supplies, or personal belongings. The term
"cargo" is commonly used in logistics and transportation industries to describe the load being carried by vehicles
or vessels during the process of shipping or transportation.

3.2 Cargo Management?

Cargo Management intends to meet the logistics management and provide professional transportation, sourcing,
and information services around the world, with strong supporters by our long-standing client partnerships.

3.3. Cargo Transport Mode of Transportation Cargo service:

• Within Country - Land (Truck, Railways) and Air (Aero plane, Helicopter)

• Outside Country - Air , Water (ship) & Land

3.4 Type of Cargo

3.4.1 General cargo

General cargo is the term used for shipments of durable goods that do not require special treatment. Within this
category are shoes, textiles and spare parts, among others.

3.4.2 Livestock

Different types of animals are transported on domestic and international routes daily, following high standards of
care.

3.4.3 Dangerous Cargo

Dangerous goods (also referred to as Hazardous Cargo means the substances, materials and articles that covered
by the IMDG Code and is cargo considered to be hazardous because of its flammable, corrosive, poisonous
nature and other properties

3.4.4. Perishable Cargo

Goods that can deteriorate if not stored or transported under ideal circumstances or if exposed to adverse
temperature, humidity, and other environmental condition. Etc. Fruits, flowers, vegetables, meats, organs, and
Fish.

3.5 Freight Transportation

Freight transportation is a supply of services for the carriage or movement of goods by sea and inland
waterways, rail, road or air. The goods are carried or moved using various means of transport such as ships,
trains , trucks ( including lorries) and aircraft.

3.6 The Importance of Cargo Management

 Promoting international trade

 Freight industry help contribute country revenue through import and export.
 To encourage local company to expand their market domestics and globally.
 Attract foreign investor and manufacturing to open their business in local market.

Chapter 4 : Outsourcing

Learning objectives:
1) Student able to explain the concept of outsourcing.
2) Student able to determine different type of outsourcing operator.
3) Understand the basic reason of outsourcing and the impact of outsourcing inlogistics operation.

4.1 What is outsourcing?

Term such as “Logistics outsouring” “Logistics alliances” and “ third party logistics” havebeen used inter-
changebly to describe organizational practice of contracting out part of or all logistics activities that were
previously performed in- house. Outsourcing also known as handing over or transferring the planning,
management and operation of certain functions to an independent third party

4.2 Type of Outsourcing Operator

i. house logistics (1PL)

ii. Logistics services provider ( 2PL)
iii. Third party logistics ( 3PL/TPL)
iv. Fourth party logistics ( 4PL/FPL)

a. house logistics (1PL) Anyone having goods moved from their places of origin to their new place is
considered to be first party logistics provider.
b. Logistics services provider ( 2PL) A second- party logistics provider (2PL) is an asset carrier, which
actually owns the means of transportation. Typical 2PLs would be shipping lines which own, lease or
charter their ships , airlines which own, lease or charter their planes and truck companies which own or lease
their trucks.
c. Third Party Logistics (3PL) Third party Logistic or known as 3PL is defined as “ a firm that provides
multiple logistics services for use by customers. Preferably these services are integrated or bundled together
by the provider. Among the services 3PLs provide are transportation, warehousing, cross docking, inventory
management,packaging and freight forwarding”.
d. Fourth party logistics ( 4PL/FPL) A fourth party logistics provider has no own transport assets or
warehouse capacity. They have an allocative and integration function within a supply chain with the aim of
increasing the efficiency of it. This often involve agreements (subcontracting) with 3PLs and 2PLs. Many
3PL firms also offer 4PL services.

4.3 Basic Reason of Outsourcing

I. Providing better quality service

II. Limiting investment opportunities
III. Cost reduction > Control Political considerations
IV. Focus on core competences
V. Customers demand order accuracy, excellent service and time compression

Table 4.4 Impact of Outsourcing

Chapter 5 : Proper Planning Learning

Objectives

1) Student able to define the concept of planning and the importance of planning in logistics operation.
2) Understand the basic process of logistics planning in product and services.
3) Students able to explain the planning process in transportation and contemporary issues related to planning.

5.2 What is Planning ?

i. Planning is the process of deciding what to do and how to do it.

ii. Planning occurs at many levels, from day-to-day decisions make by individuals.
iii. Planning is central to the management process. It sets the stage for organising, leading, and controlling
(POLC).
iv. Planning also the process of setting objectives and determining how to best accomplish them.

5.3 Terms in Planning

I. Organizing -Inc specific activities to accomplish objectives

II. Directing – Involves initiating activities of plan till end result.
III. Control- Investigate the variance and either correct the performance .
IV. Process- Make sure that all the information gathered is relevant an useful
V. Mechanism control- is an activity of controlling ,quality of services and turnover of staff or etc.
VI. Innovation- Finding new areas of operations and integrating new technology. Communication – it is through
written ,oral ,electronic and must be well versed.

5.4 Basic Planning Process.

There are five steps in the systematic planning process.

i. Define your objectives- Identify desired outcomes or results in very specific ways.
ii. Determine where you stand vis-à-vis objectives- Evaluate current accomplishments relative to the desired
results.
iii. Develop premises regarding future conditions-Try to anticipate future events.
iv. Analyze and choose among action alternatives- List and carefully evaluate the possible actions that may e
taken.
v. Implement the plan and evaluate results- Act and carefully measure your progress toward objectives. Do
what the plan requires; evaluate results; take corrective actions and revise plans as needed

5.4 Logistics Planning

5.5 Logistics Planning

Logistic planning is gathering information and putting structures in place to make sure your logistics function
can achieve the three rights in the future, in an ongoing fashion. More importantly, it seeks to make certain you
have plansin place to deal with disruptionsto yoursupply and transportresources

5.6 The Importance of Logistics Planning

a) Increased customersatisfaction

b) Improved Efficiency

c) Visibility

d) Cost Savings

e) Improve operating coststructure

5.7 The Impact of Poor Logistics Planning

I. Late Projects
II. Higher Logistics Costs
III. Risk Management
IV. Hard to maintain Supplier/Partner Relationship Management
Chapter 6 : Automation Learning

objectives:
1) Student able to understand the adoption of automation in logistics industry.
2) Students able to understand the importance of automation towards logistics operations.
3) Students able to explain the role of automation in delivery, procurement, and warehousing activities.

6.1 What is Automation

Automation or automatic control is the use of various control system for operating equipment such as machinery,
processes in factories, steering and stabilization of ships or aircraft and other application with minimal or
reduced human intervention. Some processes have been completely automated.

6.2 Logistics Automation

Logistics automation is the application of computer software or automated machinery to improve the efficiency
of logistics operation. Logistics automation system can powerfully complement the facilities provided by these
higher-level computer systems.

6.3 Components of Logistics Automation

Logistics automation system comprise a variety of hardware and software components:
6.3.1 Hardware
i. Fixed machinery
ii. Conveyors
iii. Sortation
iv. Industrial Robots
6.3.2 Communication Technology
I. Electronic Data Interchange (EDI)
II. Very Small Aperture Terminal (VSAT)
III. Geographical positioning System (GPS)
IV. Geographical Information System (GIS)
V. Web Based Tracking Automated Guided Vehicle System (AGVS)
6.3.3 Information Technology (IT)
i. Enterprise Resource Planning (ERP)
ii. Distribution Requirement planning(DRP)
iii. Automated Inventory tracking system (AITS)
6.3.4 Automation Identification Technology
I. Bar Coding Radio
Ii. Frequency Identification (RFID)

6.5 Impact of IT on functions of logistics and supply chain management are as follows
I. Procurement
II. Planning
III. Web-based collaboration
IV. Scheduling
V. Inventory management Logistics and warehouse management
VI. Customer service
Chapter 7 : Warehouse Management
Learning objectives:
1) Understand the fundamental of warehouse management.
2) Student able to explain the storage points of raw material, semi-finished and final products.
3) Understand the role of warehouse in SCM and types of warehouse available in industry.

7.1 What is warehouse?

Place where goods are kept and knows as commercial building for storage of goods.

7.2 What is warehousing?

Warehousing refers to the activities involving storage of goods on a large-scale in a systematic and orderly
manner and making them available conveniently when needed.

7.3 Basic reasons for need of warehouse

i. materials
ii. Work in progress
iii. sumable stores and products
iv. ady-made components
v. Finished good

7.4 Types of Warehouse

 Private warehouse
Private warehouse are privately owned by large retails corporations, wholesalers, manufacturer or distributors.
Private warehousing, also known as proprietary warehousing, requires capital investments by the owner, hence
its best for established companies.

 Bonded warehouse
Bonded warehouses are mainly owned and run by the government or private agencies. This type of storage is
used to store imported goods before custom duties are levied on them, as the companies storing goods in these
warehouses do not pay any duty charges until their items are released. The private agencies that run bonded
warehouses have to obtain a license from the government before getting into this business.

 Public warehouse
Public warehouses are the ones owned by the government or semi-government bodies. They are lent out to
private sector companies to stock up goods upon paying a certain amount of rent. For small businesses and
eCommerce start-ups that are not in a position to own a warehouse and need to store goods for a short period,
public warehouses are a great option.

 Climate controlled warehouse

Climate controlled warehouse can store many types of product needed special handling condition such as freezer
for frozen products and humidity controlled environments for delicate products like flowers, drugs etc.
Chapter 8 : Reverse Logistics Learning
objectives

1) Understanding the concept of reverse logistics and its importance.

2) Student able to explain the difference between forward and reverse logistics.

8.1 What is reverse logistics?

“The process of planning, implementing, and controlling the efficient, cost-effective flow of raw materials, in-
process inventory, finished goods and related information from the point of consumption to the point of origin
for the purpose of recapturing value or proper disposal.”

8.2 4Why reverse logistics?

 Returns of goods from customer for non-performance
 Return sent to manufacturer for repair/ re-filling
 Reusable containers/ package
 Returns of inputs not used by manufacturer/ goods not sold by distributors
 Short term rental returns
 Exchange of new products for the old ones
 Good sent for upgradation / modification Recycling of products’

8.3 Reverse logistics activities

i. Repair and refurbishing

Repairs is a regular feature in service-based products under a warranty period and almost all consumer durables
need repairs on a regular basis. Refurbishing is done to goods returned by damage defects or below par
performance during the warranty period.

ii. Re-Filling
Re-filling refer to reusable nature of packages such as glass bottle, tin, plastics container& metal cylinders.
Product Recall This is emergency situation where the products distributed in the market are called back to the
factory because of following reason: product not giving guarantee performance, quality

8.6 Advantages Of Reverse Logistics

 Reduces cost with manufacturing
 Increase customer experiences with a customer focused return processing.
 Maximize return on assets
 Streamlines operations
 Improved inventory managements
 Efficient product recall execution

8.7 Disadvantages of Reverse

 Logistics Unexpected cost like labour cost
 Cycles time tend to be longer
 Loss of control over third party services
Chapter 9 : Efficient Transportation

Learning objectives:

1) Students able to define various modes of transportation.

2) Students able to understanding the importance of efficient transportations
3) Students able to determine the best delivery and cost effective packaging method.

9.1 What is transportation?

The movement of goods, services and people from one location to another location .
Transportation is known as Safe, efficient, reliable, and sustainable movement of persons and
goods over time and space.

9.2 Modes of Transportation

a) Rail Transportation
b) Water Transportation
c) Air Transportation
d) Road Transportation
 e) Pipeline
9.3 Core components of Transportation

9.4 Importance of Tranportation

It widens organization’s market by enhanced sales.

It promotes international trade
Prevents wastage especially of perishable goods through quick movement.
It improves standard of living
It creates employment opportunities

9.5 Principle of

Transportation

Economy of scales
Transporting products in bulk will cost the company or organization less money than transporting
the same products in small portions.
Economy of distance
Economies of distance (also known as long-haul economies) are attained when the total
transport cost per ton-km decreases as the trip distance increases.

9.6 Carrier Selection

Determinants
 Transportation Cost
Minimum Weights, Loading, Unloading Facilities, Packaging, Damage in Transit and special
services available from a carrier
Service Performance:
Transit Time
Reliability
Capacity
Accessibility
Security

9.7 Factors influencing transportation cost and Pricing

1) Density
2) Stow ability
3) Ease of difficult to handling
4) Liability
5) Nature & government regulation
6) Locations of market urban or remote
7) Timeline
Chapter 10 : Measure and Improvise

Learning objectives:

1) Students able to define the measures and methods of improvise

2) Understand the types of metrics in measuring logistics performance.

10.1 What is measure and improvise?

Measuring, interpreting, reviewing, and giving feedbacks is essential for

any logistics company that wants to optimize its processes. When
implement a new system or establish new strategies, business owner
needs to measure their output and interpret their results to adjust.

10.2 Performance measurement

Type of logistics metrics.

Shipping Time: Spot potential issues in your order fulfilment

process
Order Accuracy: Monitor the degree of incidents
Delivery time: Track your average delivery time in detail
Transportation Costs: Analyze all costs from the order placement
to delivery
Warehousing Costs: Optimize the expenses
of your warehouse Number of Shipments:
Understand how many orders are shipped
Inventory Accuracy: Avoid problems
because of inaccurate inventory
Inventory Turnover: Track how many times your entire inventory
is sold
Inventory to Sales Ratio: Identify a potential overstock

10.3 Why Logistics Performance and metrics importance?

To compare company
performanceagainst industry benchmarks.
 To improve the effectiveness and
efficiency of business operation.
To improve customer satisfactions and
requirement.
To measure the result of new business planning and strategy

Items Descriptions
Order Management Shipping Time
Order accuracy
Perfect order
On Time In full
Number of shipments
Supply KPIs Lead time
Capacity utilizations
Productivity
Inventory KPIs Customer Backorder rates
Inventory accuracy
Inventory turnover
Inventory to sales ratio
Distributions KPIs Trailer Utilization Rate
Warehousing Costs
Average Dwell Time:

Transport Management KPIs Delivery time

Average Days Lates
Truck Turning
Freight Payment Accuracy
Transportation Cost