Question and Answers: Principles of Logistics

1. Briefly describe how the constituent elements of the Chartered Institute of Logistics and Transport’s definition of logistics affect the management of logistics

The Chartered Institute of Logistics’ major role is to promote, encourage transport and logistics. The focus is on maximizing efficiency and minimizing carbon footprints (CITI, 2020). It identifies logistics as a key enabler for economic development and integration of services. It highlights logistics management as meeting customer demand through effective mechanism by focusing on inventory management and transportation

2. Using examples, show why 4PL management has developed in the last 5 years

An increase in the complex supply chain has led to one-stop management of logistics .4PL as an integrator assembles resource, technology to provide a comprehensive supply chain solutions (Thomas,2018). A more streamlined system is required for value-added services which led to 4L management development. In apparel industry inbound logistics and warehouse connected supply of products to customers through the supply chain. Now real-time mapping from goods packaged to manufacturing and storage and distribution is done through the technology-based schedule for demand and supply integration

figure illustrates 4PL mangement

Figure-1 - 4PL mangement

3. Using an example, explain one strategic component of logistics

Inventory is one of the strategic components of logistics that helps in planning and organizing effective logistics operations. The internal integration of material flow from purchase to distribution is structured through inventory management. In the auto sector monitoring through inventory management helps in managing product flow

4. Give 5 reasons why the Port of Rotterdam is the leading container in Northern Europe

The 5 reasons are –

  • The ICT platform stimulates various transport modes and robust infrastructure for empty surface area

  • The combining of cargo on large vessels result in less congestion on the port

  • Use of chain dashboard for inland transport for good accessibility at the Port

  • Change in design dimension for export dwell vessel value per day

  • Intermodal connections between seaport and inland port through multiple logistic zones

5. Give five ways rail freight operations have evolved over the last 50 years

Private ownership in rail freight has increased providing cutting edge technology in locomotives and rapid rail network

  • Just in time and lean approach for low and mobile inventories (Workdbank,2019)

  • The use of 3PL for execution, transportation and web development for tracking and tracing

  • Rapid urbanization has increased demand through cross chain control in emerging economies

  • Shift to in-house development for cargo handling and modal shifting from road to rail for sustainability

6. Give five advantages or disadvantages of cross -dock warehouses in supermarket operation

Cross-dock is a flexible arrangement. Below are 5 advantages-

  • It decreases obsolescence of inventory and integrates supply chain

  • Manpower and handling cost is reduced due to middle stage task reduction

  • Storage space is reduced through cross-docking through controlling conditioning of goods

  • It enables frequent delivery and output by Just in time to remove the bottleneck

  • Cross-docking helps in accelerating payment to business supplier

7. Identify the 5 most significant costs in road haulage operation

The cost of additional fuel consumption is one of the major costs of road haulage.Poor road conditions and stoppage increase the additional fuel cost

  • Operational cost for economic and infrastructure. It includes the cost of terminal and repair and maintenance cost

  • Driver based cost includes wages, allowances,toll cost per trip

  • Vehicle linked cost includes insurance cost,license, and permit for the vehicle subject to the area of transportation

  • Infrastructure module cost for cost setup for freight trips and network (Izadi,2020)

8. What are the four main types of air freight?

  • General freight carriers high-value goods like jewelry, textile other than the liquid item

  • Special freight includes an item of livestock and an item which may require preliminary temperature check -Combination freight includes passenger and freight

  • Integrated carriers are used for air cargo with hub link to the train and road transport

9. Briefly describe how two different elements of intermodal logistics work together?

The transfer of goods in intermodal logistics is taking at the designed terminal this creates freight and container transportation even load factor and prevention of empty backhauls. A shipment that has to be carried more than a day average by truck can be transported by reducing hours by air cargo. Reach stacker and front end loader are commonly used for intermodal logistics

figure illustrates Intermodal logistics

Figure-2 - Intermodal logistics

10. How has maritime freight been affected by the current Covid 19 situation?

COVID-19 will have a prolonged impact on maritime freight as it is related to travel and human interaction (ORF 2020). The change in regulation, as well as demand, will drop by 52%. The port using the safety measures for staff security for operations in a foreign base will face restrictions on operation. Demand fall will lead to freight charges being lower and will affect the overall profitability of the sector

11. What is Thames Gateway, why does it exist and why it is where it is?

Thames Gateway is a large area around river Thames which includes brownfields in London. Government funds are supplied for regional development in the area. The project Thames Gateway is to create infrastructure development for the benefit of 16 neighboring districts (TGKP,2020). It provides a vital corridor for travel and industrial prospect. The planning and development of the area is done by the UK government for coastal urbanization and regeneration program for the communities as per the development plan of government

12. Briefly, give four effects of the HS2 project on logistics

  • It is the largest transport network which will increase connectivity between London and Scotland will ensure faster delivery if rail freights services are permitted on the network line

  • It will impact positively on all rail network services

  • Enable create vendor network across for the third party logistics for groundwork cost reduction

  • Establish a transport network for construction and logistics for local traffic management(PwC,2016).

13. Explain the reasons for East Midlands’ position as one of the busiest freight airports in the UK

East Midland has established its position as a major cargo hub. It has built infrastructure and investment in its fleet operation for loading and unloading. The eCommerce boom has benefitted East midland s service as a freight carrier and next day service has created heavy traffic for East Midland. It has a connection across 200 countries by its reach through e-commerce (CAAST ,2018)

14. Explain the differences between a RO-RO vessel and a bulk carrier vessel

RO-RO vessel is used for carrying wheeled transportation like ferries and automobiles whereas a bulk carrier vessel is used to transport unpackaged bulk cargo that includes grain, cement which is termed as loose cargo. A bulk carrier cargo carries homogenous goods and is used to ship with a single deck and dry cargo.RO-RO vessels are setup as inclined ramps for loading and convenience for a product that is different from the bulk carrier using side frames design to prevent mechanical damage (CMA,2020).

15. List and explain briefly at least 5 KPIs that could be used in logistics management?

Logistics management can be used as a performance metric. Below are 5 KPI-

  • Delivery time- Average delivery service time around the region varies order request to customer delivery time. Strong network and reliability is shown through this measure

  • Inventory turnover ratio- It will measure the sale of inventory over given point of time. Higher turnover ratio will foresee future gains and stability for turning stock to revenue

  • Shipping time- This measures supply chain performance. Meaurement through on-time, delayed shows planning and execution by the team

  • Warehouse cost- Warehouse cost is part of the overall process. Storing,loading of goods all are equipped in warehouse.It is the mangement of space and allocation of sub-task for for goods movement across the warehouse

  • Transportation cost- It is the measure of revenue from the product and transporting goods to the end-user. Excess cost at this level will show revenue leakage in logistics management

16. Describe with one example a successful own account logistics operation

A successful logistics operation is development of support system, aquisition of material, management of warehouse and distribution to the end user. Dashboard with KPI and cross business process establish logistics operation. The use of 4PL in supply chian visibility will create process flow real time data connectivity. Below is the example of suucessful logistics operation in e-commerce through use of supplier integration by reducing the turn around time for delivery by 4PL

figure illustrates Logistics operation

Figure-3- Logistics operation

17. Describe how reverse logistics has developed over the last twenty years?

It shows the planning of operations and related information for recapturing value. Reverse logistics due to the return of goods has seen a rise over the years. The expense is detrimental to the sustainability of the company. The early 2000s showed increase in the dotcom bubble and exchange and purchase ad sale of goods. Actions by customer for goods defect or by the company for reassessing decision making is done through reverse logistics. Brick and mortar face a severe challenge in reverse logistic as compare to e-commerce firm

18. Critically assess one use of one IT logistics management system in use by logistics operators

IT logistics management system takes of production planning, warehouse management order tracking, processing, and delivery. Processing customer request by IT logistic system helps real-ime update and planning for order and business supply. This minimizes human error because of computerized input. It analyses cutomer pricing and purchase behaviour to adapt cenerlly to provide customer satisfaction. Streamline the integration of the dashboard is to be customized according to the industry otherwise inferred data will turn futile. The sales forecast has to be processed ahead for building customer relationship

19. Give five considerations you need to make if setting up a new parcel warehouse operation

  • Accessibility and product transportation – It is essential to be considered for opening new parcel warehouse operations. This will help in identifying inventory unit, storage capacity, the quantity of inventory

  • Product specification- The average product size, storage of parcel for the specification is essential.

  • Choosing a delivery basis- Delivery speed, accuracy will enforce reliability in onboarding a new partner for warehouse operation. The volume of goods and efficency will be relative to the order placed on the capacity and target set for operations

  • Workforce- Staff management and support are critical in overseeing operations. The project team for setting up the warehouse will strengthen the supply network

  • Safety – Secure warehouse operations will prevent pilferage. Use of EDI will enable automated order setup through channel partner for end to end secure transaction

20. Describe five our ways in which customer service can be applied to logistics operations

  • Communication- Efficient delivery and up to date communication on order creates a positive outlook in customer s minds. Performance nenchamrk through service model communication at operator level.

  • Customer feedback- Creating feedback portal will strengthen the network to reorder and product replacement. Checking service level inventory vs available stock for lead time.

  • Reliability – Timely delivery creates brand image and value for logistics operators in the tightly competed markets.

  • Increase information- Focus on increase satisfaction and engagement by an online support system and chatbots for query resolution

  • Seamless service- Reducing customer touchpoints by direct partner delivery to end customer will create customer service enhancement

Remember, at the center of any academic work, lies clarity and evidence. Should you need further assistance, do look up to our Logistics Management Assignment Help 

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