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					                                                    What is logistics?

                          "Logistics means having the right thing, at the right place, at the right
                                                         time."



Logistics - (business definition) Logistics is defined as a business planning framework for the
management of material, service, information and capital flows. It includes the increasingly
complex information, communication and control systems required in today's business
environment. -- (Logistix Partners Oy, Helsinki, FI, 1996)

Logistics - (military definition) The science of planning and carrying out the movement and
maintenance of forces.... those aspects of military operations that deal with the design and
development, acquisition, storage, movement, distribution, maintenance, evacuation and
disposition of material; movement, evacuation, and hospitalization of personnel; acquisition of
construction, maintenance, operation and disposition of facilities; and acquisition of furnishing
of services. -- (JCS Pub 1-02 excerpt)

Logistics - The procurement, maintenance, distribution, and replacement of personnel and
materiel. -- (Websters Dictionary)

Logistics - 1. The branch of military operations that deals with the procurement, distribution,
maintenance, and replacement of materiel and personnel. 2. The management of the details of an
operation.
[French logistiques, from logistique, logic (perhaps influenced by loger, to quarter), from
Medieval Latin logisticus, of calculation.] -- (American Heritage Dictionary)

Logistics - ...the process of planning, implementing, and controlling the efficient, effective flow
and storage of goods, services, and related information from point of origin to point of
consumption for the purpose of conforming to customer requirements." Note that this definition
includes inbound, outbound, internal, and external movements, and return of materials for
environmental purposes. -- (Reference: Council of Logistics Management,
http://www.clm1.org/mission.html, 12 Feb 98)

Logistics - The process of planning, implementing, and controlling the efficient, cost effective
flow and storage of raw materials, in-process inventory, finished goods and related information
from point of origin to point of consumption for the purpose of meeting customer requirements. -
- (Reference: Canadian Association of Logistics Management,
http://www.calm.org/calm/AboutCALM/AboutCALM.html, 12 Feb, 1998)

Logistics - The science of planning, organizing and managing activities that provide goods or
services. -- (MDC, LogLink / LogisticsWorld, 1997)
Logistics - Logistics is the science of planning and implementing the acquisition and use of the
resources necessary to sustain the operation of a system. -- (Reference: ECRC University of
Scranton / Defense Logistics Agency Included with permission from: HUM - The Government
Computer Magazine "Integrated Logistics" December 1993, Walter Cooke, Included with
permission from: HUM - The Government Computer Magazine.)

Logist - To perform logistics functions or processes. The act of planning, organizing and
managing activities that provide goods or services. (The verb "to logist." Eg. She logisted the last
operation. I will logist the next operation. I am logisting the current operation. We logist the
operations. The operations are well logisted.) -- (MDC, LogLink / LogisticsWorld, 1997)

Logistic - Of or pertaining to logistics. -- (MDC, LogLink / LogisticsWorld, 1997)

Logistical - Of or pertaining to logistics, logistics-like. -- (MDC, LogLink / LogisticsWorld,
1997)

Logistics Functions - (classical) planning, procurement, transportation, supply, and
maintenance. -- (United States Department of Defense DOD)

Logistics Processes - (classical) requirements determination, acquisition, distribution, and
conservation. -- (United States Department of Defense DOD)

Business Logistics - The science of planning, design, and support of business operations of
procurement, purchasing, inventory, warehousing, distribution, transportation, customer support,
financial and human resources. -- (MDC, LogLink / LogisticsWorld, 1997)

Cradle-to-Grave - Logistics planning, design, and support which takes in to account logistics
support throughout the entire system or product life cycle. -- (MDC, LogLink / LogisticsWorld,
1997)

Acquisition Logistics - Acquisition Logistics is everything involved in acquiring logistics
support equipment and personnel for a new weapons system. The formal definition is "the
process of systematically identifying, defining, designing, developing, producing, acquiring,
delivering, installing, and upgrading logistics support capability requirements through the
acquisition process for Air Force systems, subsystems, and equipment. -- (Reference: Air Force
Institute of Technology, Graduate School of Acquisition and Logistics.)

Integrated Logistics Support (ILS) (1) - ILS is a management function that provides planning,
funding, and functioning controls which help to assure that the system meets performance
requirements, is developed at a reasonable price, and can be supported throughout its life cycle. -
- (Reference: Air Force Institute of Technology, Graduate School of Acquisition and Logistics.)

Integrated Logistics Support (ILS) (2) - Encompasses the unified management of the technical
logistics elements that plan and develop the support requirements for a system. This can include
hardware, software, and the provisioning of training and maintenance resources. -- (Reference:
ECRC University of Scranton / Defense Logistics Agency Included with permission from: HUM
- The Government Computer Magazine "Integrated Logistics" December 1993, Walter Cooke.)

Logistics Support Analysis (LSA) - Simply put, LSA is the iterative process of identifying
support requirements for a new system, especially in the early stages of system design. The main
goals of LSA are to ensure that the system will perform as intended and to influence the design
for supportability and affordability. -- (Reference: Air Force Institute of Technology, Graduate
School of Acquisition and Logistics.)



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                                    LogisticsWorld

Welcome to the world of logistics...

Logistics World is a directory of logistics resources on the internet. Find logistics companies,
logistics providers, supply chain consultants, supply chain management, freight forwarders,
freight companies, trucking companies, moving companies, movers, shipping companies, air
freight, air carriers, ocean freight, ship lines, rail freight, third party logistics providers,
warehouses, freight transportation and more. Logistics World is your guide to sites related to
logistics, logistics management, freight, transportation, supply chain management, warehousing,
distribution, maintenance, manufacturing, management, travel, tourism, reliability, business,
and quality sites on the web.

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You can also take advantage of any of Logistics World's Internet Advertising Packages. Target
your products and services to the freight transportation, logistics, travel, tourism, and supply
chain management industry!

Feature Services

Pilot Freight Services - Pilot Freight Services, one of America‘s largest independent
transportation and logistics companies, provides a full range of domestic and international air,
land and sea capabilities. Our 65 North American locations offer customizable services,
including a worldwide network of partners servicing over 190 countries, 24/7. Contact 1-800-
HI-PILOT or:pilotdelivers.com

WarehouseJobs.com - Online job board dedicated to the warehousing industry. Services
    include: job postings, featured job spots, featured employer spots, and more... Get your job
    opening viewed by thousands of job seekers. Have a job opening that you have to get filled in a
    hurry? Make it a Featured Job and you'll get incredible visibility that will help you find that
    perfect employee! Employers with a large quantity of jobs to post can get more for their money
    and increase their potential to fill their positions by becoming one of our Featured Employers.

    Business Logistics - Reduce your company‘s costs, improve your customer service quality, and
    increase the synchronization of activities throughout your supply chain. Offering both
    consulting and hands-on management support to deliver the results you want. Exclusive
    auditing and cost benchmarking tools can identify opportunities to generate savings in your
    transportation, warehousing, and private truck fleet operations. Supply Chain Management,
    Freight Transportation, and Logistics Services: Boost Your Profits with 3PL Management and
    Consulting from Business Logistics.

    World-Link International Logistics & Freight Forwarding - World-Link International
    Logistics is one of Australia's largest independently Australian owned and operated freight
    forwarders. Operating since 1986 World-Link is developing a solid reputation within the
    Australian import and export community as a capable can-do outfit, no matter what the task.

    FreightCare International Shipping Specialists - Australia‘s most trusted low cost
    International Air Freight and Sea Freight Forwarder. With over 20 years experience,
    FreightCare delivers Global logistics solutions. With an accredited International network, we
    are perfectly positioned and equipped to meet even the most demanding International
    Transportation project.
    For the drum and bass producer, see Logistics (artist).

               Look
               up logistics in Wiktionary,
               the free dictionary.

    Logistics is the management of the flow of goods, information and other resources,
    including energy and people, between the point of origin and the point of consumption in order
    to meet the requirements of consumers (frequently, and originally, military organizations).
    Logistics involves the integration of information, transportation, inventory, warehousing,
    material-handling, and packaging, and occasionally security. Logistics is a channel of the supply
    chain which adds the value of time and place utility. Today the complexity of production
    logistics can be modeled, analyzed, visualized and optimized by plant simulation software.

                                 Contents
                                      [hide]

          1 Origins and definition
            2 Military logistics
            3 Logistics management
            4 Third-party logistics
            5 Warehouse management system and warehouse control
    system
            6 Business logistics
            7 Production logistics
            8 Professional Logistician
            9 See also
            10 References
    [edit]Origins and definition

    The term "logistics" originates from the ancient Greek "λόγος" ("logos"—"ratio, word,
    calculation, reason, speech, oration").

    Logistics is considered to have originated in the military's need to supply themselves with arms,
    ammunition and rations as they moved from their base to a forward position. In ancient Greek,
    Roman and Byzantine empires, there were military officers with the title ‗Logistikas‘ who were
    responsible for financial and supply distribution matters.

    The Oxford English dictionary defines logistics as: “The branch of military science having to do
    with procuring, maintaining and transporting material, personnel and facilities.” Another
    dictionary definition is: "The time-related positioning of resources." As such, logistics is
    commonly seen as a branch of engineering which creates "people systems" rather than "machine
    systems."
    [edit]Military logistics

    Main article: Military logistics

    ILS Integrated Logistics Support is a discipline used in military industries to ensure an easy
    supportable system with a robust customer service (logistic) concept at the lowest cost and in
    line with (often high) reliability, availability, maintainability and other requirements as defined
    for the project.

    In military logistics, logistics officers manage how and when to move resources to the places
    they are needed. In military science, maintaining one's supply lines while disrupting those of the
    enemy is a crucial—some would say the most crucial—element of military strategy, since an
    armed force without resources and transportation is defenseless.
The defeat of the British in the American War of Independence, and the defeat of Erwin
Rommel in World War II, have been largely attributed to logistical failure.[citation needed] The
historical leaders Hannibal Barca, Alexander the Great, and the Duke of Wellington are
considered to have been logistical geniuses.

Another field within logistics is called Medical logistics.
[edit]Logistics management

Main article: Logistics Management

Logistics management is that part of the supply chain which plans, implements and controls the
efficient, effective forward and reverse flow and storage of goods, services and related
information between the point of origin and the point of consumption in order to meet customer
& legal requirements. A professional working in the field of logistics management is called
alogistician.

The Chartered Institute of Logistics & Transport (CILT) was established in the United
Kingdom in 1919 and was granted the Royal Charter in 1926. The Chartered Institute is one
ofprofessional bodies or institutions for the logistics & transport sectors, that offers
such professional qualification or degree in logistics management.
[edit]Third-party logistics

Main article: Third-party logistics

Third-party logistics involves the utilization of external organizations to execute logistics
activities that have traditionally been performed within an organization itself.[1] According to this
definition, third party logistics includes any form of outsourcing of logistics activities previously
performed in-house. If, for example, a company with its own transport facilities decides to
employ external warehouse specialist, this would be an example of third party logistics.
[edit]Warehouse management system and warehouse control system

Main articles: Warehouse management system and Warehouse control system

Although there is some functionality overlap, the differences between warehouse management
systems (WMS) and warehouse control systems (WCS) can be significant. To put it simply, the
WMS plans a weekly activity forecast, based on such factors as statistics, trends, and so forth,
whereas a WCS acts like a floor supervisor, working in real time to get the job done by the most
effective means. For instance, a WMS can tell the system it‘s going to need five of SKU A and
five of SKU B, hours in advance, but by the time it acts, other considerations may have come
into play or there could be a potential logjam on a conveyor. A WCS can prevent that problem
by working in real time and adapting to the situation by making a ‗last-minute decision‘ based on
current activity and operational status. Working synergistically, WMS and WCS can resolve
these issues and maximize efficiency for companies that rely on the effective operation of their
warehouse or distribution center.[2]
[edit]Business logistics

Logistics as a business concept evolved only in the 1950s. This was mainly due to the increasing
complexity of supplying one's business with materials and shipping out products in an
increasingly globalized supply chain, calling for experts in the field who are called Supply Chain
Logisticians. This can be defined as having the right item in the right quantity at the right time at
the right place for the right price in the right condition to the right customer and is the science of
process and incorporates all industry sectors. The goal of logistics work is to manage the fruition
of project life cycles, supply chains and resultant efficiencies.

In business, logistics may have either internal focus (inbound logistics), or external focus
(outbound logistics) covering the flow and storage of materials from point of origin to point of
consumption (see supply chain management). The main functions of a qualified logistician
include inventory management, purchasing, transportation, warehousing, consultation and the
organizing and planning of these activities. Logisticians combine a professional knowledge of
each of these functions so that there is a coordination of resources in an organization. There are
two fundamentally different forms of logistics. One optimizes a steady flow of material through
a network of transport links and storage nodes. The other coordinates a sequence of resources to
carry out some project.
[edit]Production logistics

The term is used for describing logistic processes within an industry. The purpose of production
logistics is to ensure that each machine and workstation is being fed with the right product in the
right quantity and quality at the right point in time.

The issue is not the transportation itself, but to streamline and control the flow through the value
adding processes and eliminate non-value adding ones. Production logistics can be applied in
existing as well as new plants. Manufacturing in an existing plant is a constantly changing
process. Machines are exchanged and new ones added, which gives the opportunity to improve
the production logistics system accordingly. Production logistics provides the means to achieve
customer response and capital efficiency.

Production logistics is getting more and more important with the decreasing batch sizes. In many
industries (e.g. mobile phone) batch size one is the short term aim. This way even a single
    customer demand can be fulfilled in an efficient way. Track and tracing, which is an essential
    part of production logistics - due to product safety and product reliability issues - is also gaining
    importance especially in the automotive and the medical industry.
    [edit]Professional Logistician

    A logistician is a professional logistics practitioner. Professional logisticians are often certified
    by professional associations. Some universities and academic institutions train students as
    logisticians, by offering undergraduate and postgraduate programs.
    Third-party logistics
    From Wikipedia, the free encyclopedia
     (Redirected from 3PL)

    A third-party logistics provider (abbreviated 3PL, or sometimes TPL) is a firm that provides
    a one stop shop service to its customers of outsourced (or "third party") logistics services for
    part, or all of their supply chain management functions.

    Third party logistics providers typically specialize in integrated
    operation, warehousing and transportation services that can be scaled and customized
    to customer‘s needs based on market conditions and the demands and delivery service
    requirements for their products and materials.

                       Contents
                        [hide]

          1 Definition
          2 Types of 3PL
          3 Non Asset-based Logistics
    Providers
          4 On-Demand Transportation
          5 Terminology
          6 Overlapping
          7 References
          8 See also
    [edit]Definition

    To put forward some standard definitions, we would adopt the definition of 3PL found in
    the Council of Supply Chain Management Professionals‘ glossary, which reads as follows:
"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."
[edit]Types of 3PL

Third-party logistics providers are:

      freight forwarders
      courier companies
      other companies integrating & offering
    subcontracted logistics and transportation services
Hertz and Alfredsson (2003) describe four categories of 3PL providers:[1]

      Standard 3PL provider: this is the most basic form of a 3PL provider. They would
    perform activities such as, pick and pack, warehousing, and distribution (business) – the most
    basic functions of logistics. For a majority of these firms, the 3PL function is not their main
    activity.
      Service developer: this type of 3PL provider will offer their customers advanced value-
    added services such as: tracking and tracing, cross-docking, specific packaging, or providing
    a unique security system. A solid IT foundation and a focus on economies of scale and scope
    will enable this type of 3PL provider to perform these types of tasks.
      The customer adapter: this type of 3PL provider comes in at the request of the customer
    and essentially takes over complete control of the company‘s logistics activities. The 3PL
    provider improves the logistics dramatically, but do not develop a new service. The customer
    base for this type of 3PL provider is typically quite small.
       The customer developer: this is the highest level that a 3PL provider can attain with
    respect to its processes and activities. This occurs when the 3PL provider integrates itself
    with the customer and takes over their entire logistics function. These providers will have
    few customers, but will perform extensive and detailed tasks for them.
[edit]Non Asset-based Logistics Providers

Advancements in technology and the associated increases in supply chain visibility and inter-
company communications have given rise to a relatively new model for third-party logistics
operations – the ―non-asset based logistics provider.‖ Non-asset based providers perform
functions such as consultation on packaging and transportation, freight quoting, financial
settlement, auditing, tracking, customer service and issue resolution. However, they don‘t
employ any truck drivers or warehouse personnel, and they don‘t own any physical freight
distribution assets of their own – no trucks, no storage trailers, no pallets, and no warehousing. A
non-assets based provider consists of a team of domain experts with accumulated freight industry
expertise and information technology assets. They fill a role similar to freight agents or brokers,
but maintain a significantly greater degree of ―hands on‖ involvement in the transportation of
products.

To be useful, this type of provider must show its customers a benefit in financial and operational
terms by leveraging exceptional expertise and ability in the areas of operations, negotiations, and
customer service in a way that complements its customers' preexisting physical assets.
[edit]On-Demand Transportation

On-Demand Transportation is a relatively new term coined by 3PL providers to describe their
brokerage, ad-hoc, and "flyer" service offerings.

On-Demand Transportation has become a mandatory capability for today's successful 3PL
providers in offering client specific solutions to supply chain needs.

These shipments do not usually move under the "lowest rate wins" scenario and can be very
profitable to the 3PL that wins the business. The cost quoted to customers for On-Demand
services are based on specific circumstances and availability and can differ greatly from normal
"published" rates.

On-Demand Transportation is a niche that continues to grow and evolve within the 3PL industry.

Specific modes of transport which may be subject to the on-demand model include (but are not
limited to) the following:

      FTL, or Full Truck Load
      Hotshot (direct, exclusive courier)
       Next Flight Out, sometimes also referred to as Best Flight Out (commercial airline
    shipping)
      International Expedited
[edit]Terminology

In the "PL" terminology, it is important to differenciate the 3PL from the:

      1PL, which are the shipper or the consignee,
      2PL, which are actual carriers,
          4PL, which are consulting firms such as Rollins, Deloitte, SCMO (company), BMT
        Limited, or Accenture.
    [edit]Overlapping

    3PL can also be 2PL at the same time in the following cases:

          when a shipping line owns a freight forwarder,
          when an airline owns a general sales agent (GSA),
          when a freight forwarder owns trucks or a warehouse,
          when a courier company owns planes.
    [edit]References

    A Fourth-party logistics provider (abbreviated 4PL), lead logistics provider, or 4th Party
    Logistics provider, is a consulting firm specialized in logistics, transportation, and supply chain
    management. Typical fourth-party logistics providers are Deloitte, SCMO (company), BMT
    Limited and Accenture.

    As the 4PL industry is still in its infancy and currently being created throughout the world (Blue
    Ocean Strategy), its definition and function still leads to a lot of confusion. Even for
    professionals of the transportation industry.

                     Contents
                       [hide]

          1 History
          2 Definition
          3 Conflict of interest
          4 Confusion
          5 Principle of neutrality
          6 Examples of 4PL
          7 Overlapping
          8 3PL vs. 4PL
          9 Example of "advanced logistics
    3PL"
          10 Terminology
          11 References
          12 See also
[edit]History

The term 4PL is generally considered to have been introduced by Accenture, which registered it
as a trademark in 1996. Accenture described the 4PL as an "integrator that assembles the
resources, capabilities, and technology of its own organization and other organizations to design,
supply chain solutions".[1]

The trademark was later abandoned, and the term has become a part of the public domain.[2]
[edit]Definition

A fourth-party logistics provider is a consulting firm specialized in logistics, transportation,
and supply chain management.[3]
[edit]Conflict of interest

To avoid any conflict of interest, it is important that this fourth-party logistics provider be non-
asset based, as far as logistics, transportation, and supply chain management assets are
concerned. 4PL use 2PLs and/or 3PLs to supply service to customers, owning only computer
systems and intellectual capital.[4]
[edit]Confusion

Nowadays advisors, consultants, software companies and even 3PLs lay claim to being a 4PL.
This is due to the fact that any company advising a customer on logistics, transportation, and
supply chain matters feels it may somehow claim to be a 4PL. This is effectively the case only
when the principle of neutrality is respected, and that any conflict of interest is avoided.

A fourth-party logistics provider must also offers services considering a 360 degres view,
which is not focused on its ability to implement the recommendations it gives, but on all the
options available in the market.
[edit]Principle of neutrality

As such an IT consulting firm specialized in WMS (Warehouse Management Systems), which is
objectively considering all the various WMS present in the market is a 4PL. It may obviously
not represent any WMS brand or any software company, otherwise the concept of neutrality is
broken, and it leads to conflict of interest.

Similarly a non-asset based consulting firm specialized in logistics, transportation, and supply
chain management may claim it is a 4PL. This is effectively the case if it does not
ownwarehouses, logistics platforms, vans, trucks, ships, barges, planes, a freight forwarder, or
a courier company, otherwise it would lead to conflict of interest.
It has been sometimes argued that a 4PL is the same thing as a "non-asset based 3PL". This is
not the case. Considering that probably 90% of the world's 3PL are "non-asset based", they
nevertheless generate revenues & profits from their "non-asset based" activities. As such
a 3PL cannot be a 4PL in the same time, as this would lead to conflict of interest. Indeed it
would then have a tendency to recommend to customers its "non-asset based" operation as the
best possible option.
[edit]Examples of 4PL

The best examples of fourth-part logistics providers are "non-asset based" consulting firms
exclusively specialized in logistics, transportation, and supply chain management such asSCMO
(company),[5] BMT Limited,[6] MVA Consulting, TTR, and Intermodality, which offer complete
ranges of services, from strategy to implementation.

Others are more generalist consulting firms such as the Big Four
auditors,[7] respectively Deloitte, PricewaterhouseCoopers, Ernst & Young, and KPMG, as well
as Accenture, Arup,Atkins (company), Mott MacDonald, Parsons Brinckerhoff, and AECOM.

Other firms such as McKinsey & Company, Bain & Company, A.T. Kearney, the Boston
Consulting Group, and Booz & Company, may also play the role of 4PL with a different value
proposition, and are considered to be "pure strategy" firms[8] only.
[edit]Overlapping

Are often calling themselves 4PL, advisors, or consultants:

       freight forwarders, who tell their customers they will advise them on the best possible
    solution (within the frame of their own operations),
       warehouse operators and logistics platform operators, who tell their customers they will
    advise them on the best possible solution (within the frame of their own operations).
[edit]3PL vs. 4PL

A 4PL is a consultant, and cannot be an operator.[9] This is to respect the principle of neutrality.

A 3PL is an operator, which specializes in integrated
operation, warehousing and transportation services. These services may be 100% outsourced, as
in the case of "non-asset based3PL". It is then a pure 3PL. It may also own part of its operations,
such as warehouses, vans, or trucks. It then is both a 3PL and a 2PL, but is usually still called
a 3PL. It can also offer genuine supply chain consulting services outside of its usual range of
services. It is then both a 3PL and a 4PL, but is usually still called a 3PL.
It is important to differentiate 3PL, which actually deliver supply chain consulting services
outside of their usual range of integrated operations, from 3PL which use the term consulting or
4PL abusively, as a marketing tool only. Some 3PL currently go as far as giving a title
of consultant to their sales people, who are only selling their classical 3PL services. These are
clearly3PL only.

In other cases, 2PL logistics operators, or 3PL with advanced logistics & IT capabilities may call
themselves 4PL, or a mix of 3PL/4PL. Their capabilities are so advanced in logistics, wms,
and/or communication that they effectively need to customize their operations for each new
customer, which requires a lot intellectual capital, similar to the 4PL. Nevertheless, their
ownership of logistics assets contradicts the 4PL status, and leads to conflict of interest for
real consultancy. They may be called "advanced logistics 2PL/3PL" or "total logistics2PL/3PL".
[edit]Example of "advanced logistics 3PL"

There are more and more such "advanced logistics 3PL" or "total logistics 3PL" on the market. It
is mostly due to the fact that logistics services stabilize customers longer than the simple delivery
of freight services.

While the list of "advanced logistics 3PL" ranges in the thousands, some of the most famous in
the market are DHL, Kuehne & Nagel[10], Schenker, Panalpina, UPS[11], 4PL,Rollins,...etc.
[edit]Terminology

In the "PL" terminology, it is important to differenciate the 4PL from the:

      1PL, which are the shipper or the consignee,
      2PL, which are actual carriers,
      3PL, which are one stop shops for the 1PL, such as freight
    forwarders or courier companies like Rollins.


First-party logistics
From Wikipedia, the free encyclopedia
                           This article does not cite any references or sources.
                           Please help improve this article by adding citations to reliable sources.
                           Unsourced material may be challenged and removed. (November
                           2009)
    A First-party logistics provider (abbreviated 1PL) is a firm or an individual that needs to
    have cargo, freight, goods, produce or merchandise transported from a point A to a point B. The
    term first-party logistics provider stands both for the cargo sender and for the cargo receiver.

             Contents
               [hide]

          1 Type of 1PL
          2 Type of
    transportation
          3 Terminology
          4 See also
    [edit]Type of 1PL

    A 1PL can be anything from a manufacturer, to a trader, buying
    office, importer/exporter, wholesaler, retailer, and a distributor in
    the international commerce field.

    It can also be institutions such as government, department, NGO, associations, military, and post.

    An individual or a family removing from one place to another also needs to have its personnal
    effect being transported from their place of origin to their new place, and is as such being
    considered as a first-party logistics provider.
    [edit]Type of transportation

    Typically the first-party logistics providers subcontract their transportation's needs
    to 2PLs and 3PLs, which are companies specialized in transportation. This helps the 1PL to
    benefit from cheaper transportation prices thanks to the specialization of the 2PLs and 3PLs, and
    the subsequent economies of scale.

    The transportation needed by the 1PL can be anything
    from transportation by ship, barge, aircraft, train, van or truck.
    [edit]Terminology

    In the freight industry, first-party logistics providers are called differently depending whether
    they are the sender of the merchandise or the receiver of the merchandise:

          Sender = Consignor = Shipper
          Receiver = Consignee
    In the "PL" terminology, it is important to differenciate the 1PL from the:

          2PL, which are actual carriers,
          3PL, which are one stop shops for the 1PL, such as freight
        forwarders or courier companies,
          4PL, which are consulting firms such as Deloitte, SCMO (company), BMT Limited,
       or Accenture.
    econd-party logistics
    From Wikipedia, the free encyclopedia
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                              2009)


    A Second-party logistics provider (abbreviated 2PL) is an asset-based carrier, which actually
    owns the means of transportation.

             Contents
                [hide]

          1 Type of 2PL
          2 Transportation
    industry
          3 Terminology
          4 Overlapping
          5 See also
    [edit]Type of 2PL

    Second-party logistics providers are:

          shipping lines, which own, lease, or charter their ships,
          airlines, which own, lease, or charter their planes,
          truck companies, which own, or lease their trucks,
          barge companies, which own, lease, or charter their barge,
          rail companies, which own their trains,
          warehouse owners.
[edit]Transportation industry

In the transportation industry, the second-party logistics providers are segmented between
different categories of transportation:

      seafreight, which regroups shipping lines and barge companies,
      airfreight, which regroups the airlines, as well as the cargo helicopter companies,
      trucking, which regroups the truck companies and the van companies,
      railways, which regroups the rail companies,
      warehousing and logistics.
[edit]Terminology

In the "PL" terminology, it is important to differenciate the 2PL from the:

      1PL, which are the shipper or the consignee,
      3PL, which are one stop shops for the 1PL, such as freight
    forwarders or courier companies,
       4PL, which are consulting firms such as Deloitte, SCMO (company), BMT Limited,
    or Accenture.
[edit]Overlapping

2PL can also be 3PL at the same time in the following cases:

      when a shipping line owns a freight forwarder,
      when an airline owns a general sales agent (GSA),
      when a freight forwarder owns trucks, or a warehouse,
      when a courier company owns planes, trucks, or a warehouse.
Third-party logistics
From Wikipedia, the free encyclopedia
A third-party logistics provider (abbreviated 3PL, or sometimes TPL) is a firm that provides
a one stop shop service to its customers of outsourced (or "third party") logistics services for
part, or all of their supply chain management functions.

Third party logistics providers typically specialize in integrated
operation, warehousing and transportation services that can be scaled and customized
to customer‘s needs based on market conditions and the demands and delivery service
requirements for their products and materials.
                       Contents
                        [hide]

          1 Definition
          2 Types of 3PL
          3 Non Asset-based Logistics
    Providers
          4 On-Demand Transportation
          5 Terminology
          6 Overlapping
          7 References
          8 See also
    [edit]Definition

    To put forward some standard definitions, we would adopt the definition of 3PL found in
    the Council of Supply Chain Management Professionals‘ glossary, which reads as follows:

    "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."
    [edit]Types of 3PL

    Third-party logistics providers are:

          freight forwarders
          courier companies
          other companies integrating & offering
        subcontracted logistics and transportation services
    Hertz and Alfredsson (2003) describe four categories of 3PL providers:[1]

          Standard 3PL provider: this is the most basic form of a 3PL provider. They would
        perform activities such as, pick and pack, warehousing, and distribution (business) – the most
        basic functions of logistics. For a majority of these firms, the 3PL function is not their main
        activity.
       Service developer: this type of 3PL provider will offer their customers advanced value-
    added services such as: tracking and tracing, cross-docking, specific packaging, or providing
    a unique security system. A solid IT foundation and a focus on economies of scale and scope
    will enable this type of 3PL provider to perform these types of tasks.
      The customer adapter: this type of 3PL provider comes in at the request of the customer
    and essentially takes over complete control of the company‘s logistics activities. The 3PL
    provider improves the logistics dramatically, but do not develop a new service. The customer
    base for this type of 3PL provider is typically quite small.
      The customer developer: this is the highest level that a 3PL provider can attain with
    respect to its processes and activities. This occurs when the 3PL provider integrates itself
    with the customer and takes over their entire logistics function. These providers will have
    few customers, but will perform extensive and detailed tasks for them.
[edit]Non Asset-based Logistics Providers

Advancements in technology and the associated increases in supply chain visibility and inter-
company communications have given rise to a relatively new model for third-party logistics
operations – the ―non-asset based logistics provider.‖ Non-asset based providers perform
functions such as consultation on packaging and transportation, freight quoting, financial
settlement, auditing, tracking, customer service and issue resolution. However, they don‘t
employ any truck drivers or warehouse personnel, and they don‘t own any physical freight
distribution assets of their own – no trucks, no storage trailers, no pallets, and no warehousing. A
non-assets based provider consists of a team of domain experts with accumulated freight industry
expertise and information technology assets. They fill a role similar to freight agents or brokers,
but maintain a significantly greater degree of ―hands on‖ involvement in the transportation of
products.
To be useful, this type of provider must show its customers a benefit in financial and operational
terms by leveraging exceptional expertise and ability in the areas of operations, negotiations, and
customer service in a way that complements its customers' preexisting physical assets.
[edit]On-Demand Transportation

On-Demand Transportation is a relatively new term coined by 3PL providers to describe their
brokerage, ad-hoc, and "flyer" service offerings.

On-Demand Transportation has become a mandatory capability for today's successful 3PL
providers in offering client specific solutions to supply chain needs.
These shipments do not usually move under the "lowest rate wins" scenario and can be very
profitable to the 3PL that wins the business. The cost quoted to customers for On-Demand
services are based on specific circumstances and availability and can differ greatly from normal
"published" rates.

On-Demand Transportation is a niche that continues to grow and evolve within the 3PL industry.

Specific modes of transport which may be subject to the on-demand model include (but are not
limited to) the following:

      FTL, or Full Truck Load
      Hotshot (direct, exclusive courier)
       Next Flight Out, sometimes also referred to as Best Flight Out (commercial airline
    shipping)
      International Expedited
[edit]Terminology

In the "PL" terminology, it is important to differenciate the 3PL from the:

      1PL, which are the shipper or the consignee,
      2PL, which are actual carriers,
      4PL, which are consulting firms such as Rollins, Deloitte, SCMO (company), BMT
    Limited, or Accenture.
[edit]Overlapping

3PL can also be 2PL at the same time in the following cases:

      when a shipping line owns a freight forwarder,
      when an airline owns a general sales agent (GSA),
      when a freight forwarder owns trucks or a warehouse,
      when a courier company owns planes.
Fourth-party logistics
From Wikipedia, the free encyclopedia
A Fourth-party logistics provider (abbreviated 4PL), lead logistics provider, or 4th Party
Logistics provider, is a consulting firm specialized in logistics, transportation, and supply chain
management. Typical fourth-party logistics providers are Deloitte, SCMO (company), BMT
Limited and Accenture.
    As the 4PL industry is still in its infancy and currently being created throughout the world (Blue
    Ocean Strategy), its definition and function still leads to a lot of confusion. Even for
    professionals of the transportation industry.

                       Contents
                        [hide]

           1 History
           2 Definition
           3 Conflict of interest
           4 Confusion
           5 Principle of neutrality
           6 Examples of 4PL
           7 Overlapping
           8 3PL vs. 4PL
           9 Example of "advanced logistics
    3PL"
           10 Terminology
           11 References
           12 See also
    [edit]History

    The term 4PL is generally considered to have been introduced by Accenture, which registered it
    as a trademark in 1996. Accenture described the 4PL as an "integrator that assembles the
    resources, capabilities, and technology of its own organization and other organizations to design,
    supply chain solutions".[1]

    The trademark was later abandoned, and the term has become a part of the public domain.[2]
    [edit]Definition

    A fourth-party logistics provider is a consulting firm specialized in logistics, transportation,
    and supply chain management.[3]
    [edit]Conflict of interest

    To avoid any conflict of interest, it is important that this fourth-party logistics provider be non-
    asset based, as far as logistics, transportation, and supply chain management assets are
concerned. 4PL use 2PLs and/or 3PLs to supply service to customers, owning only computer
systems and intellectual capital.[4]
[edit]Confusion

Nowadays advisors, consultants, software companies and even 3PLs lay claim to being a 4PL.
This is due to the fact that any company advising a customer on logistics, transportation, and
supply chain matters feels it may somehow claim to be a 4PL. This is effectively the case only
when the principle of neutrality is respected, and that any conflict of interest is avoided.

A fourth-party logistics provider must also offers services considering a 360 degres view,
which is not focused on its ability to implement the recommendations it gives, but on all the
options available in the market.
[edit]Principle of neutrality

As such an IT consulting firm specialized in WMS (Warehouse Management Systems), which is
objectively considering all the various WMS present in the market is a 4PL. It may obviously
not represent any WMS brand or any software company, otherwise the concept of neutrality is
broken, and it leads to conflict of interest.

Similarly a non-asset based consulting firm specialized in logistics, transportation, and supply
chain management may claim it is a 4PL. This is effectively the case if it does not
ownwarehouses, logistics platforms, vans, trucks, ships, barges, planes, a freight forwarder, or
a courier company, otherwise it would lead to conflict of interest.

It has been sometimes argued that a 4PL is the same thing as a "non-asset based 3PL". This is
not the case. Considering that probably 90% of the world's 3PL are "non-asset based", they
nevertheless generate revenues & profits from their "non-asset based" activities. As such
a 3PL cannot be a 4PL in the same time, as this would lead to conflict of interest. Indeed it
would then have a tendency to recommend to customers its "non-asset based" operation as the
best possible option.
[edit]Examples of 4PL

The best examples of fourth-part logistics providers are "non-asset based" consulting firms
exclusively specialized in logistics, transportation, and supply chain management such asSCMO
(company),[5] BMT Limited,[6] MVA Consulting, TTR, and Intermodality, which offer complete
ranges of services, from strategy to implementation.
Others are more generalist consulting firms such as the Big Four
auditors,[7] respectively Deloitte, PricewaterhouseCoopers, Ernst & Young, and KPMG, as well
as Accenture, Arup,Atkins (company), Mott MacDonald, Parsons Brinckerhoff, and AECOM.

Other firms such as McKinsey & Company, Bain & Company, A.T. Kearney, the Boston
Consulting Group, and Booz & Company, may also play the role of 4PL with a different value
proposition, and are considered to be "pure strategy" firms[8] only.
[edit]Overlapping

Are often calling themselves 4PL, advisors, or consultants:

       freight forwarders, who tell their customers they will advise them on the best possible
    solution (within the frame of their own operations),
       warehouse operators and logistics platform operators, who tell their customers they will
    advise them on the best possible solution (within the frame of their own operations).
[edit]3PL vs. 4PL

A 4PL is a consultant, and cannot be an operator.[9] This is to respect the principle of neutrality.

A 3PL is an operator, which specializes in integrated
operation, warehousing and transportation services. These services may be 100% outsourced, as
in the case of "non-asset based3PL". It is then a pure 3PL. It may also own part of its operations,
such as warehouses, vans, or trucks. It then is both a 3PL and a 2PL, but is usually still called
a 3PL. It can also offer genuine supply chain consulting services outside of its usual range of
services. It is then both a 3PL and a 4PL, but is usually still called a 3PL.

It is important to differentiate 3PL, which actually deliver supply chain consulting services
outside of their usual range of integrated operations, from 3PL which use the term consulting or
4PL abusively, as a marketing tool only. Some 3PL currently go as far as giving a title
of consultant to their sales people, who are only selling their classical 3PL services. These are
clearly3PL only.

In other cases, 2PL logistics operators, or 3PL with advanced logistics & IT capabilities may call
themselves 4PL, or a mix of 3PL/4PL. Their capabilities are so advanced in logistics, wms,
and/or communication that they effectively need to customize their operations for each new
customer, which requires a lot intellectual capital, similar to the 4PL. Nevertheless, their
ownership of logistics assets contradicts the 4PL status, and leads to conflict of interest for
real consultancy. They may be called "advanced logistics 2PL/3PL" or "total logistics2PL/3PL".
[edit]Example of "advanced logistics 3PL"
    There are more and more such "advanced logistics 3PL" or "total logistics 3PL" on the market. It
    is mostly due to the fact that logistics services stabilize customers longer than the simple delivery
    of freight services.

    While the list of "advanced logistics 3PL" ranges in the thousands, some of the most famous in
    the market are DHL, Kuehne & Nagel[10], Schenker, Panalpina, UPS[11], 4PL,Rollins,...etc.
    [edit]Terminology

    In the "PL" terminology, it is important to differenciate the 4PL from the:

             1PL, which are the shipper or the consignee,
             2PL, which are actual carriers,
          3PL, which are one stop shops for the 1PL, such as freight
        forwarders or courier companies like Rollins.
    [edit]References

    Cargo
    From Wikipedia, the free encyclopedia
        (Redirected from Freight)

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                                  Wikipedia's quality standards, as portions of this article's content was
                                  merged from Freight. You can help. The discussion page may contain
                                  suggestions. (May 2009)


                 Look
                 up cargo in Wiktionary,
                 the free dictionary.

    Cargo (or freight) is goods or produce transported, generally for commercial gain,
    by ship, aircraft, train, van or truck. In modern times,containers are used in
    most intermodal long-haul cargo transport.

                       Contents
                         [hide]

             1 Marine Cargo Types
             2 Air Cargo
             3 Freight train
             4 Van or Truck Cargo
             5 Less-than-truckload (LTL)
    freight
             6 Truckload (TL) freight
             7 United States Security Concerns
             8 Securing Cargo using Dunnage
    Bags
             9 See also
             10 References
             11 External links

    There is a wide range of marine cargoes at seaport terminals operated. The primary types are these:

             Automobiles are handled at many ports.
           Break bulk cargo is typically material stacked on wooden pallets and lifted into and out
        of the hold of a vessel by cranes on the dock or aboard theship itself. The volume of break
        bulk cargo has declined dramatically worldwide as containerization has grown. A safe and
        secure way to secureBreak bulk and freight in containers is by using Dunnage Bags.
           Bulk Cargoes, such as salt, oil, tallow, and Scrap metal, are usually defined as
        commodities that are neither on pallets nor in containers, and which are not handled as
        individual pieces, the way heavy-lift and project cargoes are. Alumina, grain, gypsum, logs
        and wood chips, for instance, are bulk cargoes.
           Containers are the largest and fastest growing cargo category at most ports worldwide.
        Containerized cargo includes everything from auto
        parts andmachinery components to shoes, toys, and frozen meat and seafood.

             Project cargo and heavy lift cargo may include items such as manufacturing equipment,
        factory components, power equipment such as generators and wind turbines, military
        equipment or almost any other over sized or overweight cargo too big or too heavy to fit into
        a container.
    [edit]Air Cargo

    Main article: Air Cargo

    Air cargo is commonly known as air freight. There are many firms which collect freight from a
    shipper and deliver it to the customer such asNightfreight or UPS. Aircraft were first used for
carrying mail as cargo in 1911, but eventually manufacturers started designing aircraft for freight
as well. There are many commercial aircraft suitable for carrying cargo such as the Boeing
747 and the bigger An-124, which were purpose built to be easily converted to a cargo aircraft.
Such very large aircraft also employ quick loading containers known as ULDs much like
containerized cargo ships.It is located in front mismo of the aircraft the triangular shaped in
front.


Most nations own and utilize large numbers of cargo aircraft such as the C-17 Globemaster III,
for airlift logistics needs of such operations.
[edit]Freight train

Main article: Freight train

Trains are capable of transporting large numbers of containers which have come off the shipping
ports. Trains are also used for the transportation of steel, wood and coal. Trains are used as they
can pull a large amount and generally have a direct route to the destination. Under the right
circumstances, freight transport by rail is more economic and energy efficient than by road,
especially when carried in bulk or over long distances. The main disadvantage of rail freight is
its lack of flexibility. For this reason, rail has lost much of the freight business to road transport.
Rail freight is often subject to transshipment costs since it must be transferred from one mode to
another in the chain; these costs may dominate and practices such as containerization aim at
minimizing these. Many governments are now trying to encourage more freight onto trains,
because of the environmental benefits that it would bring; rail transport is very energy efficient.
[edit]Van or Truck Cargo

There are many firms which transport all types of cargo, ranging from letters to houses to cargo
containers. These firms like Parcelforce or FedEx which deliver fast and sometimes same day
deliverly services. A good example of road cargo is supermarket stock, as these require
deliveries every day to keep the shelves stacked with goods for sale. Retailers of all kinds rely
upon delivery trucks, be they full size semi trucks or smaller delivery vans.

Freight is a term used to classify the transportation of cargo and is typically
a commercial process. Items are usually organized into various shipment categories before they
are transported. This is dependent on several factors:

      The type of item being carried, i.e. a kettle could fit into the category 'household goods'.
      How large the shipment is, both in terms of item size and quantity.
      How long the item for delivery will be in transit.
Shipments are typically categorized as household goods, express, parcel, and freight shipments.

Furniture, art, or similar items are usually classified as ―household goods‖ (HHG).

Very small business or personal items like envelopes are considered ―overnight express‖ or
―express letter‖ shipments. These shipments are rarely over a few kilos/pounds, and almost
always travel in the carrier‘s own packaging. Service levels are variable, depending on the
shipper‘s choice. Express shipments almost always travel some distance by air. An envelope may
go USA coast to USA coast overnight or it may take several days, depending on the service
options and prices chosen.

Larger items like small boxes are considered ―parcel‖ or ―ground‖ shipments. These shipments
are rarely over 50 kg (110 lb), with no single piece of the shipment weighing more than about
70 kg (154 lb). Parcel shipments are always boxed, sometimes in the shipper‘s packaging and
sometimes in carrier-provided packaging. Service levels are again variable; but most ―ground‖
shipments will move about 800 to 1,100 kilometres (497 to 684 mi) per day, going coast to coast
in about four days depending on origin. Parcel shipments rarely travel by air, and typically move
via road and rail. Parcels represent the majority of business-to-consumer (B2C) shipments.

Beyond HHG, express, and parcel shipments, movements are termed ―freight shipments.‖
[edit]Less-than-truckload (LTL) freight

Main article: Less than truckload shipping

―Less than truckload‖ (LTL) cargo is the first category of freight shipment, and represents the
majority of ―freight‖ shipments and the majority of business-to-business (B2B) shipments. LTL
shipments are also often referred to as "motor freight" and the carriers involved are referred to as
"motor carriers". LTL shipments range from 50 to 7,000 kg (110 to 15,400 lb), and the majority
of times they will be less than 2.5 to 8.5 m (8 ft 2.4 in to 27 ft 10.6 in). The average single piece
of LTL freight is 600 kg (1,323 lb) and the size of a standard pallet. Long freight and/or large
freight are subject to "extreme length" and "cubic capacity" surcharges. Trailers used in LTL can
range from 28 to 53 ft (8.53 to 16.15 m). The standard for city deliveries is usually 48 ft
(14.63 m). In tight and residential environments the 28 ft (8.53 m) trailer is used the most. The
shipments are usually palletized, shrink-wrapped and packaged for a mixed-freight environment.
Unlike express or parcel, LTL shippers must provide their own packaging, as LTL carriers do
not provide any packaging supplies or assistance. However, crating or other substantial
packaging may be required for LTL shipments in circumstances that require this criteria.
―Air cargo‖ or ―air freight‖ shipments are very similar to LTL shipments in terms of size and
packaging requirements. However, air freight shipments typically need to move at much faster
speeds than 800 km or 497 mi per day. Air shipments may be booked directly with the carriers or
through brokers or online marketplace services. While shipments move faster than standard LTL,
―air‖ shipments don‘t always actually move by air.
[edit]Truckload (TL) freight

In the United States of America, shipments larger than about 7,000 kg (15,432 lb) are typically
classified as ―truckload‖ (TL), given that it is more efficient and economical for a large shipment
to have exclusive use of one larger trailer rather than share space on a smaller LTL trailer. The
total weight of a loaded truck (tractor and trailer, 5-axle rig) cannot exceed 36,000 kg (79,366 lb)
in the U.S. In ordinary circumstances, long-haul equipment will weigh about 15,000 kg
(33,069 lb); leaving about 20,000 kg (44,092 lb) of freight capacity. Similarly a load is limited to
the space available in the trailer; normally 48 ft (14.63 m) or 53 ft (16.15 m) long and 2.6 m
(102.4 in) wide and 2.7 m (8 ft 10.3 in) high (13 ft 6 in/4.11 m high over all). While express,
parcel, and LTL shipments are always intermingled with other shipments on a single piece of
equipment and are typically reloaded across multiple pieces of equipment during their transport,
TL shipments usually travel as the only shipment on a trailer and TL shipments usually deliver
on exactly the same trailer as they are picked up on.

Often, an LTL shipper may realize savings by utilizing a freight "broker," online marketplace, or
other intermediary instead of contracting directly with a trucking company. Brokers can shop the
marketplace and obtain lower rates than most smaller shippers can directly. In the Less-than-
Truckload (LTL) marketplace, intermediaries typically receive 50% to 80% discounts from
published rates, where a small shipper may only be offered a 5% to 30% discount by the carrier.
Intermediaries are licensed by the DOT and have requirements to provide proof of insurance.

Truckload (TL) carriers usually charge a rate per kilometer or mile. The rate varies depending on
the distance, geographic location of the delivery, items being shipped, equipment type required,
and service times required. TL shipments usually receive a variety of surcharges very similar to
those described for LTL shipments above. In the TL market, there are thousands more small
carriers than in the LTL market; so the use of transportation intermediaries or ―brokers‖ is
extremely common.

Another cost-saving method is facilitating pickups or deliveries at the carrier‘s terminals. By
doing this, shippers avoid any accessorial fees that might normally be charged for liftgate,
residential pickup/delivery, inside pickup/delivery or notifications/appointments. Carriers or
intermediaries can provide shippers with the address and phone number for the closest shipping
terminal to the origin and/or destination.

Shipping experts optimize their service and costs by sampling rates from several carriers,
brokers, and online marketplaces. When obtaining rates from different providers, shippers may
find quite a wide range in the pricing offered. If a shipper uses a broker, freight forwarder, or
other transportation intermediary, it is common for the shipper to receive a copy of the carrier's
Federal Operating Authority. Freight brokers and intermediaries are also required by Federal
Law to be licensed by the Federal Highway Administration. Experienced shippers avoid
unlicensed brokers and forwarders; because if brokers are working outside the law by not having
a Federal Operating License, the shipper has no protection in the event of a problem. Also
shippers normally ask for a copy of the broker's insurance certificate and any specific insurance
that applies to the shipment.
[edit]United States Security Concerns

Cargo represents a concern to U.S. national security. It was reported from Washington, DC in
2003 that over 6 million cargo containers enter the United States ports each year.[1] After the
terrorist attacks of September 11th, the security of this magnitude of cargo has become
highlighted. The latest US Government response to this threat is the CSI: Container Security
Initiative. CSI is a program intended to help increase security for containerized cargo shipped to
the United States from around the world.[2]
[edit]Securing Cargo using Dunnage Bags

Dunnage Bags can be used to stabilize, secure and protect cargo during all sorts of
transportation. Dunnage Bags are placed in the void between the cargos. Dunnage Bags can be
used in all modes of transportation, whether on the road, railway, ocean or in the air, making
them the load securing product of choice if you want to prevent your load from moving during
transport. Besides being inter gradable in all modes of transportation, almost every type of cargo
can be secured with the use of Dunnage Bags, such as (but not limited to): Break_bulk_cargo,
palletized cargo, coils, barrels, cases and crates. There are two types of Dunnage Bags: Paper
Dunnage Bags and Woven Polypropylene Bags. Dunnage Bags are 100% recycable, and
therefore environmentally friendly. They are very easy to work with and inflate rapidly with the
use of an inflator using compressed air. Dunnage Bags are approved by Germanischer
Lloyd, Association of American Railroads, European Railway Regulations and International
Maritime Organization.
Freight forwarder
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A freight forwarder (often just forwarder) is a third party logistics provider. As a third party
(or non asset based) provider a forwarder dispatches shipments via asset-based carriers and
books or otherwise arranges space for those shipments. Carrier types include
waterborne vessels, airplanes,trucks or railroads.

Freight forwarders typically arrange cargo movement to an international destination. Also
referred to as international freight forwarders, they have the expertise that allows them to prepare
and process the documentation and perform related activities pertaining to international
shipments. Some of the typical information reviewed by a freight forwarder is the commercial
invoice, shipper's export declaration, bill of lading and other documents required by the carrier or
country of export, import, or transshipment. Much of this information is now processed in
a paperless environment.

The FIATA short-hand description of the freight forwarder as the 'Architect of Transport'
illustrates clearly the commercial position of the forwarder relative to his client. In Europe there
are forwarders that specialise in 'niche' areas such as Railfreight and collection and deliveries
around a large port. The latter are called Hafen(port) Spediteure (Port Forwarders). A forwarder
in some countries may sometimes deal only with domestic traffic and never handle international
traffic. (see also Forwarding Agent).
[edit]History of Freight Forwarders

The original function of the forwarder, or spediteur, was to arrange for the carriage of his
customers' good by contracting with various carriers. His responsibilities included advice on all
documentation and customs requirements in the country of destination. His correspondent agent
in far-away lands looked after his customers' interests and kept him informed about matters that
would affect movement of goods.
In modern times the forwarder still carries out those same responsibilities for his client. He still
operates either with a corresponding agent overseas or with his own company branch-office. In
many instances, the freight forwarder also acts as a carrier for part of a movement it can happen
that in a single transaction the forwarder may be acting either as a carrier (principal) or as an
agent for his customer[1].
[edit]Freight Forwarder Roles in Different Countries

USA
In the U.S., a freight forwarder involved with international ocean shipping is licensed by
the Federal Maritime Commission as an Ocean Transportation Intermediary. Similarly, freight
forwarders that handle air freight will frequently be accredited with the International Air
Transport Association (IATA) as a cargo agent.
UK
In the U.K., freight forwarders are not licensed, but many are members of the British
International Freight Association (BIFA). Freight forwarders in the UK consolidate various
goods from different consignors into one full load for road transport to Europe, this is often
known as groupage. Some freight forwarders offer additional related services like export packing
and case making. The regulations regarding exporting untreated timber pallets and cases has got
increasingly more strict and many for countries an exporter will be expected to provide a
phytosanitary certificate or risk the expense of having their cargo fumigated.
Australia
In Australia most licensed Customs Clearance Agents (now more commonly referred to as
Customs Brokers), operate under a freight forwarder.
Ireland
Even in smaller markets, such as Ireland, the role of freight forwarders is strategically important.
International merchandise trade is worth €148 billion to the Irish economy [2]. 82% of
manufactured products are exported, further highlighting the importance of the freight
forwarders to a nations' economy. Associations like the Irish International Freight
Association andFIATAhelp maintain the professionalism of this industry through educational
and representative roles. The FIATA Diploma in Freight Forwarding is an example of how this
can be achieved.
Nigeria
Nigeria is a very large market dealing with import and export. Freight-forwarding in Nigeria has
been in place since the exporting of groundnut as a cash crop since 1914, though not initially as
freight forwarding but as the means of transportation of both goods and services from one
country to another. Following the methodology of their British forebears, agents were used to
facilitate the transport of goods and services.
Shipping
From Wikipedia, the free encyclopedia
This article is about the transport of cargo by any means. For other uses, see Shipping
(disambiguation).

                           This article does not cite any references or sources.
                           Please help improve this article by adding citations to reliable sources.
                           Unsourced material may be challenged and removed. (March 2009)


Shipping has multiple meanings. It can be a physical process of transporting goods and cargo,
by land, air, and sea. It also can describe the movement of objects by ship.

Land or "ground" shipping can be by train or by truck. In Air and Sea shipments, ground
transportation is often still required to take the product from its origin to the airport or seaport
and then to its destination. Ground transportation is typically more affordable than air shipments,
but more expensive than shipping by sea.[citation needed]

Shipment of freight by trucks, directly from the shipper to the destination, is known as a door to
door shipment. Vans and trucks make deliveries to sea ports and air ports where freight is moved
in bulk.

Much shipping is done aboard actual ships.[citation needed] An individual nation's fleet and the
people that crew it are referred to its merchant navy or merchant marine. Merchant shipping is
essential to the world economy, carrying the bulk of international trade. The term shipping in this
context originated from the shipping trade of wind power ships, and has come to refer to the
delivery of cargo and parcels of any size above the common mail ofletters and postcards.
[edit]Terms of shipment

Harbour cranes unload cargo from a container ship at theJawaharlal Nehru Port, Navi
Mumbai,India

Main article: Incoterm

Common trading terms used in shipping goods internationally include:

      Freight on board, or free on board (FOB) - the exporter delivers the goods at the specified
    location (and on board the vessel). Costs paid by the exporter include load and lash,
      including securing cargo not to move in the ships hold, protecting the cargo from contact
      with the double bottom to prevent slipping, and protection against damage from
      condensation. For example, at Kunming Airport, FOB means that the exporter delivers the
      goods to the airport, and pays for the cargo to be loaded and secured on the plane. The
      exporter is bound to deliver the goods at his cost and expense. In this case, the freight and
      other expenses for outbound traffic is borne by the importer.[citation needed]

        Cost and freight (C&F, CFR, CNF): Insurance is payable by the importer, and the
      exporter pays the ocean shipping/air freight costs to the specified location. For example,
      C&F Los Angeles (the exporter pays the ocean shipping/air freight costs to Los Angeles).
      Many of the shipping carriers (such as UPS, DHL, FEDEX) offer guarantees on their
      delivery times. These are known as GSR guarantees or "guaranteed service refunds"; if the
      parcels are not delivered on time, the customer is entitled to a refund.[citation needed]

         Cost, insurance, and freight (CIF): Insurance and freight are all paid by the exporter to
      the specified location. For example, at CIF Los Angeles, the exporter pays the ocean
      shipping/air freight costs to Los Angeles including the insurance).[citation needed]

        The term "best way" generally implies that the shipper will choose the carrier who offers
      the lowest rate (to the shipper) for the shipment.[1] In some cases, however, other factors,
   such as better insurance or faster transit time will cause the shipper to choose an option other
   than the lowest bidder.[2]
Transport
From Wikipedia, the free encyclopedia
    (Redirected from Transportation)

"Transportation" redirects here. For other uses, see Transportation (disambiguation).

For other uses, see Transport (disambiguation).

Transport or transportation is the movement of people and goods from one location to
another. Transport is performed by modes, such as air, rail,road, water, cable, pipeline and space.
The field can be divided into infrastructure, vehicles, and operations.

Infrastructure consists of the fixed installations necessary for transport, and may
be roads, railways, airways, waterways, canals and pipelines, andterminals such
as airports, railway stations, bus stations, warehouses, trucking terminals, refueling depots
(including fueling docks and fuel stations), and seaports. Terminals may both be used for
interchange of passengers and cargo, and for maintenance.
    Vehicles traveling on these networks may
    include automobiles, bicycles, buses, trains, trucks, people, helicopters, and aircraft. Operations
    deal with the way the vehicles are operated, and the procedures set for this purpose including
    financing, legalities and policies. In the transport industry, operations and ownership of
    infrastructure can be either public or private, depending on the country and mode.

    Passenger transport may be public, where operators provide scheduled services, or private.
    Freight transport has become focused on containerization, although bulk transport is used for
    large volumes of durable items. Transport plays an important part in economic growth and
    globalization, but most types cause air pollution and use large amounts of land. While it is
    heavily subsidized by governments, good planning of transport is essential to make traffic flow,
    and restrain urban sprawl.

                  Contents
                    [hide]

          1 Mode
     o             1.1 Human-powered
     o             1.2 Animal-powered
     o             1.3 Air
     o             1.4 Rail
     o             1.5 Road
     o             1.6 Water
     o             1.7 Other
          2 Elements
     o             2.1 Infrastructure
     o             2.2 Vehicles
     o             2.3 Operation
          3 Function
     o             3.1 Passenger
     o             3.2 Freight
          4 History
          5 Impact
     o             5.1 Economic
     o             5.2 Planning
     o             5.3 Environment
          6 See also
          7 References
     o             7.1 Notes
     o             7.2 Bibliography
          8 External links
    [edit]Mode

    Main article: Mode of transport

    A mode of transport is a solution that makes use of a particular type of vehicle, infrastructure and
    operation. The transport of a person or of cargo may involve one mode or several modes, with
    the latter case being called intermodal or multimodal transport. Each mode has its advantages
    and disadvantages, and will be chosen for a trip on the basis of cost, capability, route, and speed.
    Human-powered transport remains common in developing countries.

    [edit]Human-powered
    Main article: Human-powered transport

    Human-powered transport is the transport of people and/or goods using human muscle-power, in
    the form of walking, running and swimming. Moderntechnology has allowed machines to
    enhance human-power. Human-powered transport remains popular for reasons of cost-
    saving, leisure, physical exerciseand environmentalism. Human-powered transport is sometimes
    the only type available, especially in underdeveloped or inaccessible regions. It is considered an
    ideal form of sustainable transportation.

    Although humans are able to walk without infrastructure, the transport can be enhanced through
    the use of roads, especially when enforcing the human power with vehicles, such
    as bicycles and inline skates. Human-powered vehicles have also been developed for difficult
    environments, such as snow and water, bywatercraft, rowing and skiing; even the air can be
    entered with human-powered aircraft.
    [edit]Animal-powered
    Main article: Animal-powered transport

    Animal-powered transport is the use of working animals for the movement of people and goods.
    Humans may ride some of the animals directly, use them as pack animals for carrying goods, or
    harness them, alone or in teams, to pull sleds or wheeled vehicles. Animals are superior to people
in their speed, endurance and carrying capacity; prior to the Industrial Revolution they were used
for all land transport impracticable for people, and they remain an important mode of transport in
less developed areas of the world.
[edit]Air
Main article: Aviation

A fixed-wing aircraft, commonly called airplane, is a heavier-than-air craft where movement of
the air in relation to the wings is used to generate lift. The term is used to distinguish
from rotary-wing aircraft, where the movement of the lift surfaces relative to the air generates
lift. A gyroplane is both fixed-wing and rotary-wing. Fixed-wing aircraft range from small
trainers and recreational aircraft to large airliners and military cargo aircraft.

Two necessities for aircraft are air flow over the wings for lift, and an area for landing. The
majority of aircraft also need an airport with the infrastructure to receive maintenance,
restocking, refueling and for the loading and unloading of crew, cargo and passengers. While the
vast majority of aircraft land and take off on land, some are capable of take off and landing on
ice, snow and calm water.

The aircraft is the second fastest method of transport, after the rocket. Commercial jets can reach
up to 875 kilometres per hour (544 mph), single-engine aircraft 175 kilometres per hour
(109 mph). Aviation is able to quickly transport people and limited amounts of cargo over longer
distances, but incur high costs and energy use; for short distances or in inaccessible
places helicopters can be used.[1] WHO estimates that up to 500,000 people are on planes at any
time.[2]

Rail transport is where a train runs along a set of two parallel steel rails, known as a railway or
railroad. The rails are anchored perpendicular to ties (or sleepers) of timber, concrete or steel, to
maintain a consistent distance apart, or gauge. The rails and perpendicular beams are placed on a
foundation made of concrete, or compressed earth and gravel in a bed of ballast. Alternative
methods include monorail and maglev.

A train consists of one or more connected vehicles that run on the rails. Propulsion is commonly
provided by a locomotive, that hauls a series of unpowered cars, that can carry passengers or
freight. The locomotive can be powered by steam, diesel or by electricity supplied by trackside
systems. Alternatively, some or all the cars can be powered, known as a multiple unit. Also, a
train can be powered by horses, cables, gravity, pneumatics andgas turbines. Railed vehicles
move with much less friction than rubber tires on paved roads, making trains more energy
efficient, though not as efficient as ships.
Intercity trains are long-haul services connecting cities;[3] modern high-speed rail is capable of
speeds up to 350 km/h (220 mph), but this requires specially-built
track. Regional andcommuter trains feed cities from suburbs and surrounding areas, while intra-
urban transport is performed by high-capacity tramways and rapid transits, often making up the
backbone of a city's public transport. Freight trains traditionally used box cars, requiring manual
loading and unloading of the cargo. Since the 1960s, container trains have become the dominant
solution for general freight, while large quantities of bulk are transported by dedicated trains.
[edit]Road
A road is an identifiable route, way or path between two or more places.[4] Roads are typically
smoothed, paved, or otherwise prepared to allow easy travel;[5] though they need not be, and
historically many roads were simply recognizable routes without any
formal construction or maintenance.[6] Inurban areas, roads may pass through
a city or village and be named as streets, serving a dual function as urban space easement and
route.[7]

The most common road vehicle is the automobile; a wheeled passenger vehicle that carries its
own motor. Other users of roads include buses, trucks,motorcycles, bicycles and pedestrians. As
of 2002, there were 590 million automobiles worldwide.

Automobiles offer high flexibility and with low capacity, but are deemed with high energy and
area use, and the main source of noise and air pollution in cities; buses allow for more efficient
travel at the cost of reduced flexibility.[8] Road transport by truck is often the initial and final
stage of freight transport.
[edit]Water
Main article: Ship transport

Water transport is the process of transport a watercraft, such as a barge, boat, ship or sailboat,
makes over a body of water, such as a sea, ocean,lake, canal or river. The need for buoyancy
unites watercraft, and makes the hull a dominant aspect of its construction, maintenance and
appearance.

In the 1800s the first steam ships were developed, using a steam engine to drive a paddle
wheel or propeller to move the ship. The steam was produced using wood or coal. Now most
ships have an engine using a slightly refined type of petroleum called bunker fuel. Some
specialized ships, such assubmarines, use nuclear power to produce the
steam. Recreational or educational craft still use wind power, while some smaller craft
use internal combustion engines to drive one or more propellers, or in the case of jet boats, an
inboard water jet. In shallow draft areas, hovercraft are propelled by large pusher-prop fans.

Although slow, modern sea transport is a highly effective method of transporting large quantities
of non-perishable goods. Transport by water is significantly less costly than air transport for
trans-continental shipping;[9] short sea shipping and ferries remain viable in coastal areas.[10][11]
[edit]Other
Pipeline transport sends goods through a pipe, most commonly liquid and gases are sent,
but pneumatic tubes can send solid capsules using compressed air. Any chemically stable liquid
or gas can be sent through a pipeline. Short-distance systems exist
for sewage, slurry, water and beer, while long-distance networks are used
for petroleum and natural gas.

Cable transport is a broad mode where vehicles are pulled by cables instead of an internal power
source. It is most commonly used at steep gradient. Typical solutions include aerial
tramway, elevators, escalator and ski lifts; some of these are also categorized as conveyor
transport.

Spaceflight is transport out of Earth's atmosphere into outer space by means of a spacecraft.
While large amounts of research have gone into technology, it is rarely used except to put
satellites into orbit, and conduct scientific experiments. However, man has landed on the moon,
and probes have been sent to all the planets of the Solar System.
[edit]Elements

[edit]Infrastructure
Main article: Infrastructure

Infrastructure is the fixed installations that allow a vehicle to operate. It consists of both a way,
terminal and facilities for parking and maintenance. For rail, pipeline, road and cable transport,
the entire way the vehicle travels must be built up. Air and water craft are able to avoid this,
since the airway andseaway do not need to be built up. However, they require fixed
infrastructure at terminals.

Terminals such as airports, ports and stations, are locations were passengers and freight can be
transferred from one vehicle or mode to another. For passenger transport, terminals are
integrating different modes to allow riders to interchange to take advantage of each mode's
advantages. For instance,airport rail links connect airports to the city centers and suburbs. The
terminals for automobiles are parking lots, while buses and coaches can operates from simple
stops.[12] For freight, terminals act as transshipment points, though some cargo is transported
directly from the point of production to the point of use.

The financing of infrastructure can either be public or private. Transport is often a natural
monopoly and a necessity for the public; roads, and in some countries railways and airports are
funded through taxation. New infrastructure projects can involve large spendings, and are often
financed through debt. Many infrastructure owners therefore impose usage fees, such as landing
fees at airports, or toll plazas on roads. Independent of this, authorities may impose taxes on the
purchase or use of vehicles.
[edit]Vehicles
Main article: Vehicle

A vehicle is any non-living device that is used to move people and goods. Unlike the
infrastructure, the vehicle moves along with the cargo and riders. Vehicles that do not operate on
land, are usually called crafts. Unless being pulled by a cable or muscle-power, the vehicle must
provide its own propulsion; this is most commonly done through a steam engine, combustion
engine, electric motor, a jet engine or a rocket, though other means of propulsion also exist.
Vehicles also need a system of converting the energy into movement; this is most commonly
done through wheels, propellers andpressure.

Vehicles are most commonly staffed by a driver. However, some systems, such as people
movers and some rapid transits, are fully automated. Forpassenger transport, the vehicle must
have a compartment for the passengers. Simple vehicles, such as automobiles, bicycles or simple
aircraft, may have one of the passengers as a driver.
[edit]Operation




Incheon International Airport, South Korea

Private transport is only subject to the owner of the vehicle, who operates the vehicle themselves.
For public transport and freight transport, operations are done through private enterprise or
by governments. The infrastructure and vehicles may be owned and operated by the same
company, or they may be operated by different entities. Traditionally, many countries have had
a national airline and national railway. Since the 1980s, many of these have been privatized.
International shipping remains a highly competitive industry with little regulation,[13] but ports
can be public owned.[14]
[edit]Function

Relocation of travelers and cargo are the most common uses of transport. However, other uses
exist, such as the strategic and tactical relocation of armed forces during warfare, or the civilian
mobility construction or emergency equipment.
Borivali station platform numbers 3 and 4 during peak hours(8-9 a.m.). Note the crowd waiting
on the left platform. From this platform trains depart for Churchgate, where the offices are
located. Location: Borivali Station, Mumbai, India

[edit]Passenger
Main article: Travel

Passenger transport, or travel, is divided into public and private transport. Public is scheduled
services on fixed routes, while private is vehicles that provide ad hoc services at the riders desire.
The latter offers better flexibility, but has lower capacity, and a higher environmental impact.
Travel may be as part of daily commuting, for business, leisure or migration.

Short-haul transport is dominated by the automobile and mass transit. The latter consists
of buses in rural and small cities, supplemented with commuter rail, trams and rapid transit in
larger cities. Long-haul transport involves the use of the automobile, trains, coaches and aircraft,
the last of which have become predominantly used for the longest, including intercontinental,
travel. Intermodal passenger transport is where a journey is performed through the use of several
modes of transport; since all human transport normally starts and ends with walking, all
passenger transport can be considered intermodal. Public transport may also involve the
intermediate change of vehicle, within or across modes, at a transport hub, such as
a busor railway station.

Taxis and Buses can be found on both ends of Public Transport spectrum, whereas Buses remain
the cheaper mode of transport but are not necessarily flexible, and Taxis being very flexible but
more expensive. In the middle is Demand responsive transport offering flexibility whilst
remaining affordable.

International travel may be restricted for some individuals due to legislation
and visa requirements.
[edit]Freight
Main article: Shipping

Freight transport, or shipping, is a key in the value chain in manufacturing.[15] With increased
specialization and globalization, production is being located further away from consumption,
rapidly increasing the demand for transport.[16] While all modes of transport are used for cargo
transport, there is high differentiation between the nature of the cargo transport, in which mode is
chosen.[17] Logistics refers to the entire process of transferring products from producer to
consumer, including storage, transport, transshipment, warehousing, material-handling and
packaging, with associated exchange of information.[18] Incoterm deals with the handling of
payment and responsibility of risk during transport.[19]

Containerization, with the standardization of ISO containers on all vehicles and at all ports, has
revolutionized international and domestic trade, offering huge reduction in transshipment costs.
Traditionally, all cargo had to be manually loaded and unloaded into the haul of any ship or car;
containerization allows for automated handling and transfer between modes, and the
standardized sizes allow for gains in economy of scale in vehicle operation. This has been one of
the key driving factors in international trade and globalization since the 1950s.[20]

Bulk transport is common with cargo that can be handled roughly without deterioration; typical
examples are ore, coal, cereals and petroleum. Because of the uniformity of the product,
mechanical handling can allow enormous quantities to be handled quickly and efficiently. The
low value of the cargo combined with high volume also means that economies of scale become
essential in transport, and gigantic ships and whole trains are commonly used to transport bulk.
Liquid products with sufficient volume may also be transported by pipeline.

Air freight has become more common for products of high value; while less than one percent of
world transport by volume is by airline, it amounts to forty percent of the value. Time has
become especially important in regards to principles such as postponement and just-in-
time within the value chain, resulting in a high willingness to pay for quick delivery of key
components or items of high value-to-weight ratio.[21] In addition to mail, common items send by
air include electronics and fashion clothing.
[edit]History

Main article: History of transport

Humans' first means of transport were walking and swimming. The domestication of animals
introduces a new way to lay the burden of transport on more powerful creatures, allowing
heavier loads to be hauled, or humans to ride the animals for higher speed and duration.
Inventions such as the wheel and sled helped make animal transport more efficient through the
introduction of vehicles. Also water transport, including rowed and sailed vessels, dates back
to time immemorial, and was the only efficient way to transport large quantities or over large
distances prior to the Industrial Revolution.

The first forms of road transport were horses, oxen or even humans carrying goods
over dirt tracks that often followed game trails. Paved roads were first built by the Roman
Empire, to allow armies to travel quicky; they built deep roadbeds of crushed stone as an
underlying layer to ensure that they kept dry, as the water would flow out from the crushed
stone, instead of becoming mud in clay soils. The first watercraft were canoes cut out from tree
trunks. Early water transport was accomplished with ships that were either rowed or used
the wind for propulsion, or a combination of the two. The importance of water has led to most
cities, that grew up as sites for trading, being located on rivers or at sea, ofter at the intersection
of two bodies of water. Until the Industrial Revolution, transport remained slow and costly, and
production and consumption were located as close to each other as feasible.

The Industrial Revolution in the 19th century saw a number of inventions fundamentally change
transport. With telegraphy, communication became instant and independent of transport. The
invention of the steam engine, closely followed by its application in rail transport, made land
transport independent of human or animal muscles. Both speed and capacity increased rapidly,
allowing specialization through manufacturing being located independent of natural resources.
The 19th century also saw the development of the steam ship, that sped up global transport.

The development of the combustion engine and the automobile at the turn into the 20th century,
road transport became more viable, allowing the introduction of mechanical private transport.
The first highways were constructed during the 19th century with macadam.
Later, tarmac and concretebecame the dominant paving material. In 1903, the first
controllable airplane was invented, and after World War I, it became a fast way to transport
people and express goods over long distances.[22]

After World War II, the automobile and airlines took higher shares of transport, reducing rail and
water to freight and short-haul passenger.[23]Spaceflight was launched in the 1950s, with rapid
growth until the 1970s, when interest dwindled. In the 1950s, the introduction
of containerization gave massive efficiency gains in freight transport,
permitting globalization.[20] International air travel became must more accessible in the 1960s,
with the commercialization of the jet engine. Along with the growth in automobiles and
motorways, this introduced a decline for rail and water transport. After the introduction of
the Shinkansen in 1964, high-speed rail in Asia and Europe started taking passengers on long-
haul routes from airlines.[23]
[edit]Impact

[edit]Economic
Transport is a key component of growth and globalization, such as inSeattle, United States

Transport is a key necessity for specialization—allowing production and consumption of
products to occur at different locations. Transport has throughout history been a spur to
expansion; better transport allows more trade and a greater spread of people. Economic
growth has always been dependent on increasing the capacity and rationality of transport.[24] But
the infrastructure and operation of transport has a great impact on the land and is the largest
drainer of energy, making transport sustainability a major issue.

Modern society dictates a physical distinction between home and work, forcing people to
transport themselves to places of work or study, as well as to temporarily relocate for other daily
activities. Passenger transport is also the essence of tourism, a major part
of recreational transport. Commerce requires the transport of people to conduct business, either
to allow face-to-face communication for important decisions or to move specialists from their
regular place of work to sites where they are needed.
[edit]Planning
Main article: Transport planning

Transport planning allows for high utilization and less impact regarding new infrastructure.
Using models of transport forecasting, planners are able to predict future transport patterns. On
the operative level, logistics allows owners of cargo to plan transport as part of the supply chain.
Transport as a field is studied through transport economics, the backbone for the creation of
regulation policy by authorities. Transport engineering, a sub-discipline of civil engineering, and
must take into account trip generation, trip distribution, mode choice and route assignment, while
the operative level is handles through traffic engineering.

Because of the negative impacts made, transport often becomes the subject of controversy related
to choice of mode, as well as increased capacity. Automotive transport can be seen as a tragedy
of the commons, where the flexibility and comfort for the individual deteriorate the natural and
urban environment for all. Density of development depends on mode of transport, with public
transport allowing for better spacial utilization. Good land use keeps common activities close to
peoples homes and places higher-density development closer to transport lines and hubs;
minimize the need for transport. There are economies of agglomeration. Beyond transportation
some land uses are more efficient when clustered. Transportation facilities consume land, and in
cities, pavement (devoted to streets and parking) can easily exceed 20 percent of the total land
use. An efficient transport system can reduce land waste.

Too much infrastructure and too much smoothing for maximum vehicle throughput means that in
many cities there is too much traffic and many—if not all—of the negative impacts that come
with it. It is only in recent years that traditional practices have started to be questioned in many
places, and as a result of new types of analysis which bring in a much broader range of skills
than those traditionally relied on—spanning such areas as environmental impact analysis, public
health, sociologists as well as economists who increasingly are questioning the viability of the
old mobility solutions. European cities are leading this transition.
[edit]Environment
Transport is a major use of energy, and burns most of the world's petroleum. This creates air
pollution, including nitrous oxides and particulates, and is a significant contributor to global
warming through emission of carbon dioxide,[25] for which transport is the fastest-growing
emission sector.[26] By subsector, road transport is the largest contributor to global
warming.[27] Environmental regulations in developed countries have reduced the individual
vehicles emission; however, this has been offset by an increase in the number of vehicles, and
more use of each vehicle.[25] Some pathways to reduced the carbon emissions of road vehicles
considerably have been studied.[28] Energy use and emissions vary largely between modes,
causingenvironmentalists to call for a transition from air and road to rail and human-powered
transport, and increase transport electrification and energy efficiency.

Other environmental impacts of transport systems include traffic congestion and automobile-
oriented urban sprawl, which can consume natural habitat and agricultural lands. By reducing
transportation emissions globally, it is predicted that there will be significant positive effects on
Earth's air quality,acid rain, smog and climate change.[29]
Supply chain management
From Wikipedia, the free encyclopedia
                           This article needs additional citations for verification.
                           Please help improve this article by adding reliable references.
                           Unsourced material may be challenged and removed. (August 2009)


Supply chain management (SCM) is the management of a network of
interconnected businesses involved in the ultimate provision of product and service packages
required by end customers (Harland, 1996). Supply Chain Management spans all movement and
    storage of raw materials, work-in-process inventory, and finished goods from point of origin to
    point of consumption (supply chain).

    Another definition is provided by the APICS Dictionary when it defines SCM as the "design,
    planning, execution, control, and monitoring of supply chain activities with the objective of
    creating net value, building a competitive infrastructure, leveraging worldwide logistics,
    synchronizing supply with demand, and measuring performance globally."

                               Contents
                                   [hide]

          1 Idea
          2 Supply chain management problems
          3 Activities/functions
     o              3.1 Strategic
     o              3.2 Tactical
     o              3.3 Operational
          4 Supply chain management
          5 Developments in Supply Chain Management
          6 Supply chain business process integration
          7 Theories of supply chain management
          8 Supply chain sustainability
           9 Components of supply chain management
    integration
          10 Global supply chain management
          11 See also
          12 References
          13 Further reading
          14 External links
    [edit]Idea

    Supply chain management encompasses the planning and management of all activities involved
    in sourcing, procurement, conversion, and logistics management. It also includes the crucial
    components of coordination and collaboration with channel partners, which can
    be suppliers, intermediaries, third-party service providers, and customers. In essence, supply
    chain management integrates supply and demand management within and across companies.
More recently, the loosely coupled, self-organizing network of businesses that cooperate to
provide product and service offerings has been called the Extended Enterprise.

Supply chain management can also refer to supply chain management software which includes
tools or modules used to execute supply chain transactions, manage supplier relationships and
control associated business processes.

Supply chain event management (abbreviated as SCEM) is a consideration of all possible events
and factors that can disrupt a supply chain. With SCEM possible scenarios can be created and
solutions devised.
[edit]Supply chain management problems

Supply chain management must address the following problems:

      Distribution Network Configuration: number, location and network missions of
    suppliers, production facilities, distribution centers, warehouses, cross-docks and customers.
       Distribution Strategy: questions of operating control (centralized, decentralized or
    shared); delivery scheme, e.g., direct shipment, pool point shipping, cross docking, DSD
    (direct store delivery), closed loop shipping; mode of transportation, e.g., motor carrier,
    including truckload, LTL, parcel; railroad; intermodal transport, including TOFC (trailer on
    flatcar) and COFC (container on flatcar); ocean freight; airfreight; replenishment strategy
    (e.g., pull, push or hybrid); and transportation control (e.g., owner-operated, private
    carrier, common carrier, contract carrier, or 3PL).
       Trade-Offs in Logistical Activities: The above activities must be well coordinated in
    order to achieve the lowest total logistics cost. Trade-offs may increase the total cost if only
    one of the activities is optimized. For example, full truckload (FTL) rates are more
    economical on a cost per pallet basis than less than truckload (LTL) shipments. If, however, a
    full truckload of a product is ordered to reduce transportation costs, there will be an increase
    in inventory holding costs which may increase total logistics costs. It is therefore imperative
    to take a systems approach when planning logistical activities. These trade-offs are key to
    developing the most efficient and effective Logistics and SCM strategy.
       Information: Integration of processes through the supply chain to share valuable
    information, including demand signals, forecasts, inventory, transportation, potential
    collaboration, etc.
      Inventory Management: Quantity and location of inventory, including raw materials,
    work-in-progress (WIP) and finished goods.
       Cash-Flow: Arranging the payment terms and methodologies for exchanging funds
    across entities within the supply chain.
Supply chain execution means managing and coordinating the movement of materials,
information and funds across the supply chain. The flow is bi-directional.
[edit]Activities/functions

Supply chain management is a cross-function approach including managing the movement of
raw materials into an organization, certain aspects of the internal processing of materials into
finished goods, and the movement of finished goods out of the organization and toward the end-
consumer. As organizations strive to focus on core competencies and becoming more flexible,
they reduce their ownership of raw materials sources and distribution channels. These functions
are increasingly being outsourced to other entities that can perform the activities better or more
cost effectively. The effect is to increase the number of organizations involved in satisfying
customer demand, while reducing management control of daily logistics operations. Less control
and more supply chain partners led to the creation of supply chain management concepts. The
purpose of supply chain management is to improve trust and collaboration among supply chain
partners, thus improving inventory visibility and the velocity of inventory movement.

Several models have been proposed for understanding the activities required to manage material
movements across organizational and functional boundaries. SCOR is a supply chain
management model promoted by the Supply Chain Council. Another model is the SCM Model
proposed by the Global Supply Chain Forum (GSCF). Supply chain activities can be grouped
into strategic, tactical, and operational levels .
[edit]Strategic

      Strategic network optimization, including the number, location, and size of
    warehousing, distribution centers, and facilities.
      Strategic partnerships with suppliers, distributors, and customers, creating
    communication channels for critical information and operational improvements such as cross
    docking, direct shipping, and third-party logistics.
       Product life cycle management, so that new and existing products can be optimally
    integrated into the supply chain and capacity management activities.
      Information technology infrastructure to support supply chain operations.
      Where-to-make and what-to-make-or-buy decisions.
      Aligning overall organizational strategy with supply strategy.
[edit]Tactical

      Sourcing contracts and other purchasing decisions.
      Production decisions, including contracting, scheduling, and planning process definition.
      Inventory decisions, including quantity, location, and quality of inventory.
      Transportation strategy, including frequency, routes, and contracting.
       Benchmarking of all operations against competitors and implementation of best
    practices throughout the enterprise.
      Milestone payments.
      Focus on customer demand.
[edit]Operational

      Daily production and distribution planning, including all nodes in the supply chain.
      Production scheduling for each manufacturing facility in the supply chain (minute by
    minute).
       Demand planning and forecasting, coordinating the demand forecast of all customers and
    sharing the forecast with all suppliers.
      Sourcing planning, including current inventory and forecast demand, in collaboration
    with all suppliers.
      Inbound operations, including transportation from suppliers and receiving inventory.
      Production operations, including the consumption of materials and flow of finished
    goods.
       Outbound operations, including all fulfillment activities, warehousing and transportation
    to customers.
       Order promising, accounting for all constraints in the supply chain, including all
    suppliers, manufacturing facilities, distribution centers, and other customers.
[edit]Supply chain management

Organizations increasingly find that they must rely on effective supply chains, or networks, to
successfully compete in the global market and networked economy.[1] In Peter Drucker's (1998)
new management paradigms, this concept of business relationships extends beyond traditional
enterprise boundaries and seeks to organize entire business processes throughout a value chain of
multiple companies.

During the past decades, globalization, outsourcing and information technology have enabled
many organizations, such as Dell and Hewlett Packard, to successfully operate solid
collaborative supply networks in which each specialized business partner focuses on only a few
key strategic activities (Scott, 1993). This inter-organizational supply network can be
acknowledged as a new form of organization. However, with the complicated interactions among
the players, the network structure fits neither "market" nor "hierarchy" categories (Powell, 1990).
It is not clear what kind of performance impacts different supply network structures could have
on firms, and little is known about the coordination conditions and trade-offs that may exist
among the players. From a systems perspective, a complex network structure can be decomposed
into individual component firms (Zhang and Dilts, 2004). Traditionally, companies in a supply
network concentrate on the inputs and outputs of the processes, with little concern for the
internal management working of other individual players. Therefore, the choice of an internal
management control structure is known to impact local firm performance (Mintzberg, 1979).

In the 21st century, changes in the business environment have contributed to the development of
supply chain networks. First, as an outcome of globalization and the proliferation of
multinational companies, joint ventures, strategic alliances and business partnerships, significant
success factors were identified, complementing the earlier "Just-In-Time", "Lean Manufacturing"
and "Agile Manufacturing" practices.[2] Second, technological changes, particularly the dramatic
fall in information communication costs, which are a significant component of transaction costs,
have led to changes in coordination among the members of the supply chain network (Coase,
1998).

Many researchers have recognized these kinds of supply network structures as a new
organization form, using terms such as "Keiretsu", "Extended Enterprise", "Virtual Corporation",
"Global Production Network", and "Next Generation Manufacturing System".[3] In general, such
a structure can be defined as "a group of semi-independent organizations, each with their
capabilities, which collaborate in ever-changing constellations to serve one or more markets in
order to achieve some business goal specific to that collaboration" (Akkermans, 2001).

The security management system for supply chains is described in ISO/IEC 28000 and ISO/IEC
28001 and related standards published jointly by ISO and IEC.
[edit]Developments in Supply Chain Management

Six major movements can be observed in the evolution of supply chain management studies:
Creation, Integration, and Globalization (Lavassani et al., 2008a), Specialization Phases One and
Two, and SCM 2.0.

1. Creation Era
The term supply chain management was first coined by a U.S. industry consultant in the early
1980s. However, the concept of a supply chain in management was of great importance long
before, in the early 20th century, especially with the creation of the assembly line. The
characteristics of this era of supply chain management include the need for large-scale changes,
re-engineering, downsizing driven by cost reduction programs, and widespread attention to the
Japanese practice of management.

2. Integration Era
This era of supply chain management studies was highlighted with the development of
Electronic Data Interchange (EDI) systems in the 1960s and developed through the 1990s by the
introduction of Enterprise Resource Planning (ERP) systems. This era has continued to develop
into the 21st century with the expansion of internet-based collaborative systems. This era of
supply chain evolution is characterized by both increasing value-adding and cost reductions
through integration.

3. Globalization Era
The third movement of supply chain management development, the globalization era, can be
characterized by the attention given to global systems of supplier relationships and the expansion
of supply chains over national boundaries and into other continents. Although the use of global
sources in the supply chain of organizations can be traced back several decades (e.g., in the oil
industry), it was not until the late 1980s that a considerable number of organizations started to
integrate global sources into their core business. This era is characterized by the globalization of
supply chain management in organizations with the goal of increasing their competitive
advantage, value-adding, and reducing costs through global sourcing.

4. Specialization Era—Phase One: Outsourced Manufacturing and Distribution
In the 1990s industries began to focus on ―core competencies‖ and adopted a specialization
model. Companies abandoned vertical integration, sold off non-core operations, and outsourced
those functions to other companies. This changed management requirements by extending the
supply chain well beyond company walls and distributing management across specialized supply
chain partnerships.

This transition also re-focused the fundamental perspectives of each respective organization.
OEMs became brand owners that needed deep visibility into their supply base. They had to
control the entire supply chain from above instead of from within. Contract manufacturers had to
manage bills of material with different part numbering schemes from multiple OEMs and
support customer requests for work -in-process visibility and vendor-managed inventory (VMI).
The specialization model creates manufacturing and distribution networks composed of multiple,
individual supply chains specific to products, suppliers, and customers who work together to
design, manufacture, distribute, market, sell, and service a product. The set of partners may
change according to a given market, region, or channel, resulting in a proliferation of trading
partner environments, each with its own unique characteristics and demands.

5. Specialization Era—Phase Two: Supply Chain Management as a Service
Specialization within the supply chain began in the 1980s with the inception of transportation
brokerages, warehouse management, and non-asset-based carriers and has matured beyond
transportation and logistics into aspects of supply planning, collaboration, execution and
performance management.

At any given moment, market forces could demand changes from suppliers, logistics providers,
locations and customers, and from any number of these specialized participants as components of
supply chain networks. This variability has significant effects on the supply chain infrastructure,
from the foundation layers of establishing and managing the electronic communication between
the trading partners to more complex requirements including the configuration of the processes
and work flows that are essential to the management of the network itself.

Supply chain specialization enables companies to improve their overall competencies in the same
way that outsourced manufacturing and distribution has done; it allows them to focus on their
core competencies and assemble networks of specific, best-in-class partners to contribute to the
overall value chain itself, thereby increasing overall performance and efficiency. The ability to
quickly obtain and deploy this domain-specific supply chain expertise without developing and
maintaining an entirely unique and complex competency in house is the leading reason why
supply chain specialization is gaining popularity.

Outsourced technology hosting for supply chain solutions debuted in the late 1990s and has
taken root primarily in transportation and collaboration categories. This has progressed from the
Application Service Provider (ASP) model from approximately 1998 through 2003 to the On-
Demand model from approximately 2003-2006 to the Software as a Service (SaaS) model
currently in focus today.

6. Supply Chain Management 2.0 (SCM 2.0)
Building on globalization and specialization, the term SCM 2.0 has been coined to describe both
the changes within the supply chain itself as well as the evolution of the processes, methods and
tools that manage it in this new "era".

Web 2.0 is defined as a trend in the use of the World Wide Web that is meant to increase
creativity, information sharing, and collaboration among users. At its core, the common attribute
that Web 2.0 brings is to help navigate the vast amount of information available on the Web in
order to find what is being sought. It is the notion of a usable pathway. SCM 2.0 follows this
notion into supply chain operations. It is the pathway to SCM results, a combination of the
processes, methodologies, tools and delivery options to guide companies to their results quickly
as the complexity and speed of the supply chain increase due to the effects of global competition,
rapid price fluctuations, surging oil prices, short product life cycles, expanded specialization,
near-/far- and off-shoring, and talent scarcity.

SCM 2.0 leverages proven solutions designed to rapidly deliver results with the agility to quickly
manage future change for continuous flexibility, value and success. This is delivered through
competency networks composed of best-of-breed supply chain domain expertise to understand
which elements, both operationally and organizationally, are the critical few that deliver the
results as well as through intimate understanding of how to manage these elements to achieve
desired results. Finally, the solutions are delivered in a variety of options, such as no-touch via
business process outsourcing, mid-touch via managed services and software as a service (SaaS),
or high touch in the traditional software deployment model.
[edit]Supply chain business process integration

Successful SCM requires a change from managing individual functions to integrating activities
into key supply chain processes. An example scenario: the purchasing department places orders
as requirements become known. The marketing department, responding to customer demand,
communicates with several distributors and retailers as it attempts to determine ways to satisfy
this demand. Information shared between supply chain partners can only be fully leveraged
through process integration.

Supply chain business process integration involves collaborative work between buyers and
suppliers, joint product development, common systems and shared information. According to
Lambert and Cooper (2000), operating an integrated supply chain requires a continuous
information flow. However, in many companies, management has reached the conclusion that
optimizing the product flows cannot be accomplished without implementing a process approach
to the business. The key supply chain processes stated by Lambert (2004) [4] are:

      Customer relationship management
      Customer service management
      Demand management
      Order fulfillment
      Manufacturing flow management
      Supplier relationship management
      Product development and commercialization
      Returns management
Much has been written about demand management. Best-in-Class companies have similar
characteristics, which include the following: a) Internal and external collaboration b) Lead time
reduction initiatives c) Tighter feedback from customer and market demand d) Customer level
forecasting

One could suggest other key critical supply business processes which combine these processes
stated by Lambert such as:

    a. Customer service management
    b. Procurement
    c. Product development and commercialization
    d. Manufacturing flow management/support
    e. Physical distribution
    f. Outsourcing/partnerships
    g. Performance measurement
a) Customer service management process
Customer Relationship Management concerns the relationship between the organization and its
customers. Customer service is the source of customer information. It also provides the customer
with real-time information on scheduling and product availability through interfaces with the
company's production and distribution operations. Successful organizations use the following
steps to build customer relationships:

      determine mutually satisfying goals for organization and customers
      establish and maintain customer rapport
      produce positive feelings in the organization and the customers
b) Procurement process
Strategic plans are drawn up with suppliers to support the manufacturing flow management
process and the development of new products. In firms where operations extend globally,
sourcing should be managed on a global basis. The desired outcome is a win-win relationship
where both parties benefit, and a reduction in time required for the design cycle and product
development. Also, the purchasing function develops rapid communication systems, such as
electronic data interchange (EDI) and Internet linkage to convey possible requirements more
rapidly. Activities related to obtaining products and materials from outside suppliers involve
resource planning, supply sourcing, negotiation, order placement, inbound transportation,
storage, handling and quality assurance, many of which include the responsibility to coordinate
with suppliers on matters of scheduling, supply continuity, hedging, and research into new
sources or programs.
c) Product development and commercialization
Here, customers and suppliers must be integrated into the product development process in order
to reduce time to market. As product life cycles shorten, the appropriate products must be
developed and successfully launched with ever shorter time-schedules to remain competitive.
According to Lambert and Cooper (2000), managers of the product development and
commercialization process must:

    1. coordinate with customer relationship management to identify customer-articulated
       needs;
    2. select materials and suppliers in conjunction with procurement, and
    3. develop production technology in manufacturing flow to manufacture and integrate into
       the best supply chain flow for the product/market combination.
d) Manufacturing flow management process
The manufacturing process produces and supplies products to the distribution channels based on
past forecasts. Manufacturing processes must be flexible to respond to market changes and must
accommodate mass customization. Orders are processes operating on a just-in-time (JIT) basis in
minimum lot sizes. Also, changes in the manufacturing flow process lead to shorter cycle times,
meaning improved responsiveness and efficiency in meeting customer demand. Activities related
to planning, scheduling and supporting manufacturing operations, such as work-in-process
storage, handling, transportation, and time phasing of components, inventory at manufacturing
sites and maximum flexibility in the coordination of geographic and final assemblies
postponement of physical distribution operations.
e) Physical distribution
This concerns movement of a finished product/service to customers. In physical distribution, the
customer is the final destination of a marketing channel, and the availability of the
product/service is a vital part of each channel participant's marketing effort. It is also through the
physical distribution process that the time and space of customer service become an integral part
of marketing, thus it links a marketing channel with its customers (e.g., links manufacturers,
wholesalers, retailers).
f) Outsourcing/partnerships
This is not just outsourcing the procurement of materials and components, but also outsourcing
of services that traditionally have been provided in-house. The logic of this trend is that the
company will increasingly focus on those activities in the value chain where it has a distinctive
advantage, and outsource everything else. This movement has been particularly evident
inlogistics where the provision of transport, warehousing and inventory control is increasingly
subcontracted to specialists or logistics partners. Also, managing and controlling this network of
partners and suppliers requires a blend of both central and local involvement. Hence, strategic
decisions need to be taken centrally, with the monitoring and control of supplier performance
and day-to-day liaison with logistics partners being best managed at a local level.
g) Performance measurement
Experts found a strong relationship from the largest arcs of supplier and customer integration to
market share and profitability. Taking advantage of supplier capabilities and emphasizing a long-
term supply chain perspective in customer relationships can both be correlated with firm
performance. As logistics competency becomes a more critical factor in creating and maintaining
competitive advantage, logistics measurement becomes increasingly important because the
difference between profitable and unprofitable operations becomes more narrow. A.T. Kearney
Consultants (1985) noted that firms engaging in comprehensive performance measurement
realized improvements in overall productivity. According to experts, internal measures are
generally collected and analyzed by the firm including

    1. Cost
    2. Customer Service
    3. Productivity measures
    4. Asset measurement, and
    5. Quality.
External performance measurement is examined through customer perception measures and
"best practice" benchmarking, and includes 1) customer perception measurement, and 2) best
practice benchmarking.

Components of Supply Chain Management are 1. Standardization 2. Postponement 3.
Customization
[edit]Theories of supply chain management

Currently there is a gap in the literature available on supply chain management studies: there is
no theoretical support for explaining the existence and the boundaries of supply chain
management. A few authors such as Halldorsson, et al. (2003), Ketchen and Hult (2006) and
Lavassani, et al. (2008b) have tried to provide theoretical foundations for different areas related
to supply chain by employing organizational theories. These theories include:

      Resource-Based View (RBV)
      Transaction Cost Analysis (TCA)
      Knowledge-Based View (KBV)
      Strategic Choice Theory (SCT)
      Agency Theory (AT)
      Institutional theory (InT)
      Systems Theory (ST)
       Network Perspective (NP)
[edit]Supply chain sustainability

Supply chain sustainability is a business issue affecting an organisation‘s supply chain or
logistics network and is frequently quantified by comparison with SECH ratings. SECH ratings
are defined as social, ethical, cultural and health footprints. Consumers have become more
aware of the environmental impact of their purchases and companies‘ SECH ratings and, along
with non-governmental organisations ([NGO]s), are setting the agenda for transitions to
organically-grown foods, anti-sweatshop labour codes and locally-produced goods that support
independent and small businesses. Because supply chains frequently account for over 75% of a
company‘s carbon footprint[5] many organisations are exploring how they can reduce this and
thus improve their SECH rating.
[edit]Components of supply chain management integration

The management components of SCM
The SCM components are the third element of the four-square circulation framework. The level
of integration and management of a business process link is a function of the number and level,
ranging from low to high, of components added to the link (Ellram and Cooper, 1990; Houlihan,
1985). Consequently, adding more management components or increasing the level of each
component can increase the level of integration of the business process link. The literature on
business process re-engineering,[6] buyer-supplier relationships,[7] and SCM[8] suggests various
possible components that must receive managerial attention when managing supply
relationships. Lambert and Cooper (2000) identified the following components:

      Planning and control
      Work structure
      Organization structure
      Product flow facility structure
      Information flow facility structure
      Management methods
      Power and leadership structure
      Risk and reward structure
      Culture and attitude
However, a more careful examination of the existing literature[9] leads to a more comprehensive
understanding of what should be the key critical supply chain components, the "branches" of the
previous identified supply chain business processes, that is, what kind of relationship the
components may have that are related to suppliers and customers. Bowersox and Closs states that
the emphasis on cooperation represents the synergism leading to the highest level of joint
achievement (Bowersox and Closs, 1996). A primary level channel participant is a business that
is willing to participate in the inventory ownership responsibility or assume other aspects of
financial risk, thus including primary level components (Bowersox and Closs, 1996). A
secondary level participant (specialized) is a business that participates in channel relationships by
performing essential services for primary participants, including secondary level components,
which support primary participants. Third level channel participants and components that support
the primary level channel participants and are the fundamental branches of the secondary level
components may also be included.

Consequently, Lambert and Cooper's framework of supply chain components does not lead to
any conclusion about what are the primary or secondary (specialized) level supply chain
components (see Bowersox and Closs, 1996, p. 93). That is, what supply chain components
should be viewed as primary or secondary, how should these components be structured in order
to have a more comprehensive supply chain structure, and how to examine the supply chain as an
integrative one (See above sections 2.1 and 3.1).

Reverse Supply Chain Reverse logistics is the process of managing the return of goods.
Reverse logistics is also referred to as "Aftermarket Customer Services". In other words, any
time money is taken from a company's warranty reserve or service logistics budget one can speak
of a reverse logistics operation.
[edit]Global supply chain management

Global supply chains pose challenges regarding both quantity and value:
Supply and Value Chain Trends
      Globalization
      Increased cross border sourcing
      Collaboration for parts of value chain with low-cost providers
      Shared service centers for logistical and administrative functions
       Increasingly global operations, which require increasingly global coordination and
    planning to achieve global optimums
      Complex problems involve also midsized companies to an increasing degree,
These trends have many benefits for manufacturers because they make possible larger lot sizes,
lower taxes, and better environments (culture, infrastructure, special tax zones, sophisticated
OEM) for their products. Meanwhile, on top of the problems recognized in supply chain
management, there will be many more challenges when the scope of supply chains is global.
This is because with a supply chain of a larger scope, the lead time is much longer. Furthermore,
there are more issues involved such as multi-currencies, different policies and different laws. The
consequent problems include:1. different currencies and valuations in different countries; 2.
different tax laws(Tax Efficient Supply Chain Management[10]); 3. different trading protocols; 4.
lack of transparency of cost and profit




Courier
From Wikipedia, the free encyclopedia
For other uses, see Courier (disambiguation).

       For the popular monospace typeface, see Courier (typeface).
                              This article may need to be rewritten entirely to comply with
                              Wikipedia's quality standards. You can help. The discussion
                              pagemay contain suggestions. (March 2009)


                              This section contains information which may be of unclear or
                              questionable importance or relevance to the article's subject
                              matter.
                              Please help improve this article by clarifying or removing
                              superfluous information. (May 2009)
                                   The examples and perspective in this article may not represent
                                   a worldwide view of the subject. Please improve this article and
                                   discuss the issue on the talk page.


    A courier is a person or company employed to deliver messages, packages and mail.
    Couriers are distinguished from ordinary mail services by features such as speed, security,
    tracking, signature, specialization and individualization of services, and committed delivery
    times, which are optional for most everyday mail services. As a premium service, couriers
    are usually more expensive than usual mail services, and their use is typically restricted to
    packages where one or more of these features are considered important enough to warrant
    the cost.

    Different courier services operate on all scales, from within specific towns or cities, to
    regional, national and global services. The world's largest courier companies
    are DHL, FedEx, TNT N.V., UPS, DPEX and Aramex,[citation needed] These offer services
    worldwide, typically via a hub and spoke model.

                                     Contents
                                       [hide]

             1 Couriers prior to the industrial era
             2 Development of the modern courier industry
             3 Types of courier
             4 Representative couriers
             5 Courier industry by country
     o               5.1 United Kingdom
     o               5.2 United States
     o               5.3 Australia
     o               5.4 Indonesia
     o               5.5 India
             6 Other aspects
     o               6.1 Sameday couriers
                            6.1.1 Customers
                            6.1.2 Competition
                            6.1.3 Working conditions of couriers
            7 See also
            8 References
            9 External links

    [edit]

    In ancient times runners and homing pigeons and riders on horseback were used to deliver
    timely messages. Before there were mechanized courier services foot messengers physically
    ran miles to their destinations. To this day there are marathons directly related to actual
    historical messengerroutes.

             This section
             requires expansion.
    [edit]Development of the modern courier industry

             This section
             requires expansion.
    [edit]Types of courier

    In cities, there are often bicycle couriers or motorcycle couriers but for consignments
    requiring delivery over greater distance networks, this may often
    include trucks, railways and aircraft.

    Many companies who operate under a Just-In-Time or "JIT" inventory method often utilize
    on-board couriers. On-board couriers are individuals who can travel at a moment's notice
    anywhere in the world, usually via commercial airlines. While this type of service is the
    second costliest - general aviationcharters are far more expensive - companies analyze the
    cost of service to engage an on-board courier versus the "cost" the company will realize
    should the product not arrive by a specified time (i.e. an assembly line stopping, untimely
    court filing, lost sales from product or components missing a delivery deadline, organ
    transplants).
    [edit]Representative couriers

    Over time, demand for a new type of representative courier has emerged. With the increase
    in fuel prices and productivity goals monitored closely by companies, this new type of all-
    in-one courier has developed to "take care of business". Workers in companies have more
    work and less time to be out of the office. Operating largely using independent contractors
    that have gone through a screening process and background checks have found a niche in
the courier industry. Research, intransit pet care, complex paperwork filing, and a host of
other services are now offered in this new category of courier service.
[edit]Courier industry by country

                           This section does not cite any references or sources.
                           Please help improve this article by adding citations to reliable
                           sources. Unsourced material may
                           be challenged and removed. (February 2008)

[edit]United Kingdom
The genus of the UK sameday courier market stems from the London Taxi companies but
soon expanded into dedicated motorcycle despatch riders with the taxi companies setting up
separate arms to their companies to cover the courier work. During the late 1970s small
provincial and regional companies were popping up throughout the country. Today, there
are many large companies offering next-day courier services, including UK Mail Ltd.,City
Link Ltd. and UK divisions of worldwide couriers such as APC
Overnight, FedEx, DHL, UPS and TNT.

There are many 'specialist' couriers usually for the transportation of items such as
freight/palettes, sensitive documents and liquids.

The 'Man & Van'/Freelance courier business model is highly popular in the United
Kingdom, with thousands upon thousands of independent couriers and localised companies,
offering next-day and sameday services. This is likely to be so popular because of the low
business requirements (a vehicle) and the lucrative number of items sent within the UK
every day. Since the turn of the millennium there has been a noticeable increase in owner
drivers, self employed couriers, operating mainly from home with a sole vehicle.
Advantages of this rather than working for an established sameday courier firm are that they
are able to offer far better rates to their customers. Self employed couriers come from varied
employment backgrounds from non skilled through to highly qualified trades people.

Motorbike couriers still exist, but mainly in and around London (and other large cities),
where there is often congestion, as they are much cheaper to run in heavy traffic.

Large companies such as APC Overnight, Interlink Express, Citylink and FedEx all now
provide P.O.Ds online. Lots of the smaller companies and freelance 'Man & Vans' are
unable to provide this, but this is changing with forever lowering costs of technology.
Royal Mail was up until recently a reasonable competitor of most of the large couriers;
offering next day and special delivery services. This has however changed, with higher
costs, strike action and a lowering public perception of the company. With companies
like Royal Mail & The DX (who offer a private courier 'box network'), it can be difficult to
draw a clear-cut line between postal services and couriers.

Some UK couriers offer next-day services to other European countries. FedEx and Interlink
Express both offer next-day air delivery to many EU countries. Cheaper 'By-Road' options
are also available, varying from 2 days delivery time (eg. France), to up to a week (eg.
Former USSR countries).

Large couriers often require an account to be held (and this can include daily scheduled
collections). Senders are therefore primarily in the commercial/industrial sector (and not the
general public); some couriers such as DHL do however allow public sending (at higher
cost than regular senders).
[edit]United States
The courier industry has long held an important place in United States commerce and been
involved in pivotal moments in the nation's history such as westward migration and the gold
rush. Wells Fargo was founded in 1852 and rapidly became the preeminent package
delivery company. The company specialized in shipping gold, packages and newspapers
throughout the West, making a Wells Fargo office in every camp and settlement a necessity
for commerce and connections to home. Shortly afterward, the Pony Express was
established to move packages more quickly than the traditional method, which followed the
stagecoach routes. It also illustrated the demand for timely deliveries across the nation, a
concept that continued to evolve with the railroads, automobiles and interstate highways
and which has emerged into today‘s courier industry.

The Courier industry in the United States is a $59 billion industry, with 86% of the business
shared by only four companies, including DHL, FedEx and UPS. The remaining 14%
shared among almost 11,900 other small businesses ranging in size from 1 employee to over
600. These businesses comprise of mostly same day deliveries and are strong offline
businesses likeDiamond Express and strong online businesses like Naparex.
[edit]Australia
There are several courier companies in Australia which cover most of the land which is both
sparsely populated and remote.

   Capital Transport Group
   Parcel Post
   Australian Air Express
   Pack and Send
   AusPost
   Toll / Ipec
   Startrack Express
   Fastway
   Airroad express
   DHL, FedEx, UPS, AFF
   Courier's Please
   TNT and Hunter Express.
   Allied
 FRF Couriers
[edit]Indonesia

   DHL
   FEDEX
   TNT
   DPEX
   UPS
   ARAMEX
   OCS
   TRAS EXPRESS
   CITILINK
   ACI KORINDO


[edit]India

     1. Aramex India - Courier & parcel delivery services
     2. Blue Dart - Integrated express transportation company
     3. DHL India - Drop-off locations and information on sending shipments to India
     4. OCS (Overseas Courier Service)
     5. Desk To Desk Courier & Cargo - Courier and cargo services
     6. Elbee Express - Domestic & International Express Courier Services
    7. FedEx India - Courier & freight forwarding services
    8. First Flight Couriers - Domestic & international courier services
    9. TNT India - Domestic courier, cargo shipping and document delivery
    10. Team United Express - Domestic and international courier services
    11. UPS India - Letters and package delivery services
    12. Vichare - Courier services provider
    13. Gurdev Courier Services Local Domestic & International
    14. ST Couriers - Domestic and International
    15. UPEX Couriers - Courier & freight forwarding services
     16. Overnite Express - Domestic & International Courier services
[edit]Other aspects

                         This section is written like an advertisement. Please help rewrite
                         this section from a neutral point of view. (January 2008)

[edit]Sameday couriers
Sameday couriers deliver in less than 24 hours and are an integral part of any modern
economy. There are roughly seven thousand courier companies in the United States that
make up this multi-billion dollar sector. The business model for the courier industry is
particularly dependent on independent contractors. It is estimated that 50-65% of U.S.
courier companies use independent contractors to make deliveries in addition to their own
dedicated employee resources.[citation needed] The nature of the industry, with its on-demand,
often unscheduled delivery model, requires a varying number of courier drivers on any
given day and time of day to complete a set service. Experts in this method of network
delivery maintain hundreds of standby couriers in a "ready to move" status as devised by
Mark Kent, professor of Logistics at the University of Ghent. However, this business model
is under threat from IRS Reclassificationwhere IC's are being recategorized as W-2
employees. This reclassification typically results in fines being imposed on the offending
courier company.

In December 2007, the Internal Revenue Service of the US 'tentatively decided' that FedEx
Ground Division might be facing a tax liability of $319 million for 2002, due to
misclassification of its operatives as independent contractors. Reversing a 1994 decision
which allowed FedEx to classify its operatives that own their own vehicles, the IRS is
auditing the years 2003 to 2006, with a view to assessing whether similar misclassification
of operatives has taken place. FedEx denies that any irregularities in classification have
taken place, but is facing legal action from operatives claiming benefits that would have
accrued had they been classified as employees.[1]

Many expedited courier companies are regional; small businesses which can also provide
additional services such as logistics management, archive warehousing, messenger centers,
outsourced mailroom services and coordinated airfreight forwarding delivery services.

In the UK, most of the couriers or despatch riders were motorcyclists when the sameday
delivery business started to show up in London. These tended to evolved from taxi
companies but soon regional courier companies were popping up throughout the country.
Starting in the mid 1980s, bicycle couriers, who were more economical for shorter distance
deliveries,[2] began to supplant motorcycle couriers in the larger cities. Rising costs,
including insurance premiums and petrol, made motorcycle couriers less competitive.[citation
needed]
        Except for the metropolitan areas most of the sameday couriers throughout the
country now use small vans to do deliveries. Under the current financial climate the trend
has seen corpoate businesses evaluate courier costs and steer away from sameday couriers
and tend to sway towards the cheaper next day delivery solution.
[edit]Customers
These couriers specialize in delivering important or sensitive packages that need to be
received in the local area; and/or because of time and temperature concerns, such
as organs fortransplant or key equipment or parts that are necessary for day to day
operations. While most companies use courier services certain industries depend on couriers
on a daily basis. Biomedical labs need samples for testing and evaluation, manufacturing
industry require parts to keep their plants operating smoothly, financial institutions transfer
multiple documents every day between branches and processing centers, law firms must
deliver confidential signatured documents on very strict deadlines for court filings
and pharmaceutical distributors use couriers to transport medications to hospitals
and nursing homes.

Even two-day delivery services use courier firms. Items that are mis-sorted, forgotten or just
not picked up on a larger couriers route. When a mistake has been discovered, courier firms
fill in the gap and ensure packages are delivered on time. One of the leading UK next day
couriers APC Overnight ensure that any timed delivery mis-sorted parcels are urgently
collected and run to their destination on sameday delivery vehicles to ensure that the
customer still receives the service that they paid for.
[edit]Competition
Courier firms specializing in same-day delivery provide an invaluable service because the
"big five" (Aramex, DHL, FedEx, TNT N.V., and UPS) in the delivery business simply do
not provide same-day delivery services uniquely designed to meet specific individual
customer needs. Expedited delivery firms also prevent the big five from having a complete
monopoly on deliveries that must be completed in a short period of time. This competition,
both among couriers and with the big five, has greatly increased the quality and
professionalism of the industry, while also ensuring reasonable rates for customers. These
7,000 plus small businesses also help to keep the pricing competitive and the big five
honest. Additionally, the courier industry consists almost entirely of small, locally owned
and operated businesses, ensuring that revenue is retained within the community served,
rather than siphoned off by a multi-national corporation.[citation needed]
[edit]Working conditions of couriers
The conditions of employment of couriers vary from country to country, city to city and
even company to company. Contracts governing the relationship between individual courier
and company are subject as much to customary practice, as local ordinance. In some places
couriers are independent contractors paid on commission and do not receive benefits such
as health insurance. In other places they will be regular employees of the courier company
enjoying all the benefits thereof.

In the US, the Obama-Durbin Independent Contractor Proper Classification Act of 2007
was introduced to deal with the problem of workers 'misclassified' as independent
contractors.[3] It is not clear what effect this legislation, if enacted, will have on the U.S.
courier market. But if, as is the Act's intention, courier companies are forced to treat those
workers that they previously declared independent contractors, as employees, with all the
benefits thereof, then there is no doubt that costs will rise.

The employment status of the couriers of one of the UK's biggest sameday courier services,
CitySprint, was challenged by the GMB trade union in December 2007. The challenge
arises from the firm deciding to terminate the contract of one of its operatives. The GMB
seeks to establish that more than 1500 CitySprint operatives currently classified as self-
employed sub-contractors should be re-classified as employees.[4]
    B                                  E                         S

          Bharati Shipyard                   Essar Shipping           Shipping Corporation of
    C                                  G                             India
                                                                 T
          Cochin Shipyard                   Great Eastern
    D                                      Shipping                    The Scindia Steam
                                       M                             Navigation Company Ltd.
          Dredging Corporation of
       India Limited                          Mercator Lines
    Warehouse
    From Wikipedia, the free encyclopedia
    For other uses, see Warehouse (disambiguation).

                               This article does not cite any references or sources.
                               Please help improve this article by adding citations to reliable sources.
                               Unsourced material may be challenged and removed. (March 2009)

    .

    A warehouse is a commercial building for storage of goods. Warehouses are used
    by manufacturers, importers, exporters, wholesalers, transportbusinesses, customs, etc. They are
    usually large plain buildings in industrial areas of cities and towns. They usually have loading
    docks to load and unload goods from trucks. Sometimes warehouses load and unload goods
    directly from railways, airports, or seaports. They often have cranes andforklifts for moving
    goods, which are usually placed on ISO standard pallets loaded into pallet racks.

                    Contents
                      [hide]

          1 Nature of goods stored
          2 Types of warehouse storage
    systems
          3 Processes and IT
          4 Automation and optimization
          5 Modern trends
          6 Internet impact
          7 See also
          8 References
    [edit]Nature of goods stored

    Stored goods can include any raw materials, components, or finished goods associated with
    agriculture, manufacturing, or commerce.
    [edit]Types of warehouse storage systems

    Some of the most common warehouse storage systems are:

           Pallet rack including selective, drive-in, drive-thru, double-deep, pushback, and gravity
        flow
          Mezzanine including structural, roll formed, rack supported, and shelf supported
          Cantilever Rack including structural and roll formed
          Industrial Shelving including metal, steel, wire, and catwalk
            Automated Storage and Retrieval System (ASRS) including vertical carousels, vertical
        lift modules, horizontal carousels, robotics, mini loads, and compact 3D
    [edit]Processes and IT

    Major warehousing processes include:

          Receiving
          Put away
          Order preparation / picking
          Shipping
          Inventory management (cycle counting, addressing...)
    Warehouses frequently provide services, such as:

          Co-packing
          Kitting
    Material direction and tracking in a warehouse can be coordinated by a Warehouse Management
    System (WMS), a database driven computer program.Logistics personnel use the WMS to
    improve warehouse efficiency by directing putaways and to maintain accurate inventory by
    recording warehouse transactions.
    [edit]Automation and optimization
Some warehouses are completely automated, and require no workers inside. Pallets and product
move on a system of automated conveyors andautomated storage and retrieval
machines coordinated by programmable logic controllers and computers running logistics
automation software. These systems are often installed in refrigerated warehouses where
temperatures are kept very cold to keep product from spoiling, and also where land is expensive,
as automated storage systems can use vertical space efficiently. These high-bay storage areas are
often more than 10 meters (33 feet) high, with some over 20 meters (65 feet) high.

For a warehouse to function efficiently, the facility must be properly slotted. Slotting addresses
which storage medium a product is picked from (pallet rack or carton flow), and how they are
picked (pick-to-light, pick-to-voice, or pick-to-paper). With a proper slotting plan, a warehouse
can improve its inventory rotation requirements—such as first in, first out (FIFO) and last in,
first out (LIFO)—control labor costs and increase productivity. (1)
[edit]Modern trends

Traditional warehousing has declined since the last decades of the 20th century, with the gradual
introduction of Just In Time (JIT) techniques. The JIT system promotes product delivery directly
from suppliers to consumer without the use of warehouses. However, with the gradual
implementation ofoffshore outsourcing and offshoring in about the same time period, the
distance between the manufacturer and the retailer (or the parts manufacturer and the industrial
plant) grew considerably in many domains, necessitating at least one warehouse per country or
per region in any typical supply chain for a given range of products.

Recent retailing trends have led to the development of warehouse-style retail stores. These high-
ceiling buildings display retail goods on tall, heavy duty industrial racks rather than conventional
retail shelving. Typically, items ready for sale are on the bottom of the racks, and crated or
palletized inventory is in the upper rack. Essentially, the same building serves as both warehouse
and retail store.

Large exporters/manufacturers use warehouses as distribution points for developing retail outlets
in a particular region or country. This concept reduces end cost to the consumer and enhances the
production sale ratio.
[edit]Internet impact

The internet has had an influence on warehouses. Internet-based stores do not require physical
retail space, but still require warehouses to store goods. This kind of warehouse fills many small
orders directly from end customers rather than fewer orders of many items from stores.
Having a large and complex supply chain containing many warehouse can be costly. It may be
beneficial for a company to have one large warehouse per continent, typically located centrally
to transportation. At these continental hubs, goods may be customized for different countries. For
example, goods get a price ticket in the language of the destination country. Small, in-warehouse
adjustments to goods are called value added services.
[edit]See also

Warehouse management system
From Wikipedia, the free encyclopedia
                           This article does not cite any references or sources.
                           Please help improve this article by adding citations to reliable sources.
                           Unsourced material may be challenged and removed. (May 2007)


A warehouse management system, or WMS, is a key part of the supply chain and primarily
aims to control the movement and storage of materials within a warehouse and process the
associated transactions, including shipping, receiving, putaway and picking. The systems also
direct and optimize stock putaway based on real-time information about the status of bin
utilization.

Warehouse management systems often utilize Auto ID Data Capture (AIDC) technology, such
as barcode scanners, mobile computers, wireless LANs and potentially Radio-frequency
identification (RFID) to efficiently monitor the flow of products. Once data has been collected,
there is either a batch synchronization with, or a real-time wireless transmission to a central
database. The database can then provide useful reports about the status of goods in the
warehouse.

The objective of a warehouse management system is to provide a set of computerised procedures
to handle the receipt of stock and returns into a warehouse facility, model and manage the logical
representation of the physical storage facilities (e.g. racking etc), manage the stock within the
facility and enable a seamless link to order processing and logistics management in order to pick,
pack and ship product out of the facility.

Warehouse management systems can be stand alone systems, or modules of an ERP system or
supply chain execution suite.

The primary purpose of a WMS is to control the movement and storage of materials within a
warehouse – you might even describe it as the legs at the end-of-the line which automates the
store, traffic and shipping management.
In its simplest form, the WMS can data track products during the production process and act as
an interpreter and message buffer between existing ERP and WMS systems. Warehouse
Management is not just managing within the boundaries of a warehouse today, it is much wider
and goes beyond the physical boundaries. Inventory management,inventory planning, cost
management, IT applications & communication technology to be used are all related to
warehouse management. The container storage, loading and unloading are also covered by
warehouse management today.Warehouse management today is part of SCM and demand
management. Even production management is to a great extent dependent on warehouse
management. Efficient warehouse management gives a cutting edge to a retail chain distribution
company. Warehouse management does not just start with receipt of material but it actually
starts with actual initial planning when container design is made for a product. Warehouse design
and process design within the warehouse (e.g. Wave Picking) is also part of warehouse
management. Warehouse management is part of Logistics and SCM.

Warehouse Management monitors the progress of products through the warehouse. It involves
the physical warehouse infrastructure, tracking systems, and communication between product
stations.

Warehouse management deals with receipt, storage and movement of goods, normally finished
goods, to intermediate storage locations or to final customer. In the multi-echelon model for
distribution, there are levels of warehouses, starting with the Central Warehouse(s), regional
warehouses services by the central warehouses and retail warehouses at the third level services
by the regional warehouses and so on. The objective of warehousing management is to help in
optimal cost of timely order fulfillment by managing the resources economically. Warehouse
management = "Management of storage of products and services rendered on the products within
the four wall of a wareho
Warehouse management system
From Wikipedia, the free encyclopedia
                          This article does not cite any references or sources.
                          Please help improve this article by adding citations to reliable sources.
                          Unsourced material may be challenged and removed. (May 2007)


A warehouse management system, or WMS, is a key part of the supply chain and primarily
aims to control the movement and storage of materials within a warehouse and process the
associated transactions, including shipping, receiving, putaway and picking. The systems also
direct and optimize stock putaway based on real-time information about the status of bin
utilization.
Warehouse management systems often utilize Auto ID Data Capture (AIDC) technology, such
as barcode scanners, mobile computers, wireless LANs and potentially Radio-frequency
identification (RFID) to efficiently monitor the flow of products. Once data has been collected,
there is either a batch synchronization with, or a real-time wireless transmission to a central
database. The database can then provide useful reports about the status of goods in the
warehouse.

The objective of a warehouse management system is to provide a set of computerised procedures
to handle the receipt of stock and returns into a warehouse facility, model and manage the logical
representation of the physical storage facilities (e.g. racking etc), manage the stock within the
facility and enable a seamless link to order processing and logistics management in order to pick,
pack and ship product out of the facility.
Warehouse management systems can be stand alone systems, or modules of an ERP system or
supply chain execution suite.

The primary purpose of a WMS is to control the movement and storage of materials within a
warehouse – you might even describe it as the legs at the end-of-the line which automates the
store, traffic and shipping management.

In its simplest form, the WMS can data track products during the production process and act as
an interpreter and message buffer between existing ERP and WMS systems. Warehouse
Management is not just managing within the boundaries of a warehouse today, it is much wider
and goes beyond the physical boundaries. Inventory management,inventory planning, cost
management, IT applications & communication technology to be used are all related to
warehouse management. The container storage, loading and unloading are also covered by
warehouse management today.Warehouse management today is part of SCM and demand
management. Even production management is to a great extent dependent on warehouse
management. Efficient warehouse management gives a cutting edge to a retail chain distribution
company. Warehouse management does not just start with receipt of material but it actually
starts with actual initial planning when container design is made for a product. Warehouse design
and process design within the warehouse (e.g. Wave Picking) is also part of warehouse
management. Warehouse management is part of Logistics and SCM.

Warehouse Management monitors the progress of products through the warehouse. It involves
the physical warehouse infrastructure, tracking systems, and communication between product
stations.
Warehouse management deals with receipt, storage and movement of goods, normally finished
goods, to intermediate storage locations or to final customer. In the multi-echelon model for
distribution, there are levels of warehouses, starting with the Central Warehouse(s), regional
warehouses services by the central warehouses and retail warehouses at the third level services
by the regional warehouses and so on. The objective of warehousing management is to help in
optimal cost of timely order fulfillment by managing the resources economically. Warehouse
management = "Management of storage of products and services rendered on the products within
the four wall of a wareho

				
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