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Webinar on 'Logistics Management'

Introduction

Welcome to the session on logistics management! Logistics management is all about the movement and storage of goods, spanning from the point of origin to the point of consumption. It's integral to moving goods efficiently, effectively, and cost-effectively while adding value along the way.

Learning Objectives

Overview

  • Understanding Logistics: Logistics involves the transportation of goods from one place to another and managing storage effectively.
  • Incoterms 2010: Different terms used in international trade and how they assign responsibility and cost between buyers and sellers.
  • Insurance & Shipping Documentation: Comprehensive look at the insurance needed for goods in transit and the necessary shipping documentation required.
  • Warehouse Management: Detailed activities involved in managing a warehouse, including warehouse design, locating stocks, and cross-docking.
  • Inventory Management: Managing the inventory through economic order quantity, inventory cycles, and classification systems.

Core Concepts in Logistics

  1. Movement and Storage: Logistics necessitates cooperation between procurement, suppliers, transporters, and other parties to receive goods where and when needed.
  2. Cost and Efficiency: The goal is to move goods in a cost-effective and efficient manner while maintaining high customer service levels.[Determine who bears the costs and risks during different transport stages.]
  3. Risk Mitigation: Strategies to mitigate risks involved in logistics.

Understanding Incoterms 2010

Incoterms (International Commercial Terms) are a set of predefined commercial terms published by the International Chamber of Commerce, widely used in international and domestic trade. They define how costs and risks are distributed between buyers and sellers.

Common Incoterms:

  • EXW (Ex Works): The buyer bears all costs and risks.
  • FOB (Free On Board): Seller bears costs until goods are loaded on the shipping vessel.
  • CIF (Cost, Insurance, and Freight): Seller covers the cost, insurance, and freight to the named port of destination.
  • DAP (Delivered At Place): The seller delivers the goods to the named place.

Insurance and Shipping Documentation

Insurance

Goods in transit are vulnerable to risks such as damage, theft, or loss. Types of cargo insurance include:

  • Institute Cargo Clause A: Offers the widest coverage.
  • Institute Cargo Clause B: Offers restricted coverage.
  • Institute Cargo Clause C: Offers the most restrictive coverage.

Shipping Documents

Essential documents required:

  • Bill of Lading: Document for sea transport.
  • Commercial Invoice: Required for customs clearance.
  • Packing List: Details contents of shipment.
  • Certificate of Origin: Required by customs to verify the origin of goods.

Warehouse Management

Key Activities in Warehouse

  • Receiving: Accepting goods into the warehouse.
  • Identifying: Verifying goods.
  • Sorting & Storing: Placing goods in their respective places.
  • Picking & Packing: Preparing goods for dispatch.
  • Shipping: Sending goods out to their destination.

Inventory Management

To manage inventory effectively:

  • Lead Time: Time between placing and receiving an order.
  • EOQ (Economic Order Quantity): Balances ordering cost with holding cost.
  • Reorder Point: Inventory level at which a new order should be placed.
  • ABC Classification: Classifying inventory into A, B, and C categories based on importance and value.

Technology in Logistics

Use of modern technology such as RFID, WMS (Warehouse Management System), TMS (Transportation Management System), and cloud-based systems for real-time data exchange.

Keywords

Keywords:

  • Logistics Management
  • Incoterms 2010
  • Insurance
  • Shipping Documentation
  • Warehouse Management
  • Inventory Management
  • Economic Order Quantity
  • Technology in Logistics

FAQ

FAQ:

  1. What are Incoterms? Incoterms are a set of predefined commercial terms recognized globally, used in international and domestic trade to clarify responsibilities between buyers and sellers.

  2. Why is logistics management important? Logistics management ensures the efficient, effective, and cost-effective flow and storage of goods from the point of origin to consumption, meeting customer service levels.

  3. What is the difference between FOB and CIF? FOB (Free On Board) implies the seller’s responsibility ends once goods are on the ship. CIF (Cost, Insurance, and Freight) means the seller covers the cost, insurance, and freight to the destination port.

  4. Why do we need cargo insurance? Cargo insurance protects against risks such as damage, theft, or loss during transit.

  5. What is Economic Order Quantity (EOQ)? EOQ is an inventory management formula that determines the optimal order quantity to minimize total inventory costs.

By covering these aspects, this session on logistics management aims to equip participants with fundamental knowledge and practical insights to enhance their logistics operations.

Feel free to adapt this detailed markdown further to suit specific teaching points or highlights needed in your logistics management training.

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