ALL ABOUT SHIPPERS

Shippers are the owner of the shipments that will transport by any mode of transportation whether use air, sea, pipeline, rail or highway carrier. Nowadays, shippers may contract with third party logistics providers (TPL) or freight forwarders to procure and manage their freight shipments.

They will be responsible for arranging and managing that contract. But many shippers will also seek to contract directly with the carriers whether or not they are the importer or exporter. Incoterm provide for shippers to take control of the shipment and the goods (and liabilities surrounding the carriage of goods) either from their source or from a place of delivery. This may or may not include responsibility for payment of import or export duties, freight charges, insurance, or requirements under various rules of international trade. However, as the shippers and the owner of the goods they will have ultimate responsibility for the goods in their control or in transit and compliance with the relevant national and international rules of trade. A shipper needs to balance the risks associated from transport of their goods with the willingness to pay for the protection of the freight of any service failure, non-compliance with rules and regulations, or exposure to liabilities under contracts of carriage and related logistics services.

Make the right decisions and choices, and the shipper can dramatically improve the competitiveness of the supply chain and the profitability of the company. Make the wrong decisions will give the bad effect. The business of the shipper will come to be less competitive, potentially unprofitable and etc. The reputation of their company will have the impact too. The job of a shipper is to ensure the delivery of the freight to their customer in the right condition, at the right time, at the right price, legally, and in the most efficient way that optimizes the supply chain whether internal or external.

Read More

Best modes choice of transportation

Mode choice analysis is the third step in the conventional four-step transportation forecasting model, following trip generation and trip distribution but before route assignment. Trip distribution’s zone interchange analysis yields a set of origin destination tables which tells where the trip will be made. Mode choice analysis allows the modeller to determine what mode of transport will be used, and what modal share results. Mode choice models model the company choice of which mode of transport to take. For example, truck, shipping, aviation and others.

Transportation and distribution are key considerations when planning for international trade. Choosing the right mode of transport is essential to ensure your import or export operation is efficient and cost-effective. There are four ways of importing and exporting which are road, rail, air and sea although you may need to use more than one type of transport. When making your choices, you will also need to decide whether to handle logistics by yourself, or outsource the work to a freight forwarder.

Different types of each mode of the transport and provides an overview of the issues you must address. It covers how to deal with customs, identifies which regulations must be complied with and explains how to manage a freight forwarder. Various factors will influence your decision on which type of transport to us, including your business requirements, the destination country, and the type of goods you are importing exporting. Types of goods may influence your decision. First and foremost, match the transport mode with the goods you’re moving. For example, if you import fresh fruit or other perishable items, speed is important. Transport by ship or road may not be quick enough.

Road transport can be the most flexible option for the international business. The motorway network is good and crossing national borders is usually quick and efficient. Another advantage is relatively low cost. Besides, a company can schedule transport to suit the company and the company can track the location of goods. Besides, consignments can be secure and private. For the risks of the road transport they were long distances overland can take more time, there can be traffic delays and breakdowns, there is the risk of goods being damaged, especially over long distance.  

If the business needs to transport large quantities but there is no pressure to deliver quickly, shipping by sea may be suitable. The advantage is a company can ship large volumes at low cost, a freight forwarder can consolidate consignments to reduce costs. Shipping containers can also be used for further transportation by road rail. However, there are also risks for sea transport which shipping by sea can be slower than other transport modes and bad weather can add further delays. Besides, routes and timetables are usually inflexible. 

Read More

Information Technology used In Logistics Process

            Conceptually, logistics becoming as a big part in our daily motions. It played as a vital factor that would give big impact towards the journey of freight to the final destination. Its all actually, if we haven’t a good planning towards the necessary either the document itself or procedure needed to be complete for every single movement thus it will be safely arrived. Literally, it such a tough reason on how the information systems nowadays gives immense impacts towards the movement of either the passengers, freights or cargo itself.

       Here are few roles as for the reason the used of information systems in logistics process. As logistics nowadays growth together with the aged of technology, it could be said such closer to perfect systems by providing all the necessary information related to the kind of services. Logistics information systems provide information on goods and follow their delivery path, with their progress and status, and the influence of changes on the purchasing, production, warehousing, financial and accounting systems.

Other else, logistics systems depend on external information and international standards to comply with regulations. Besides, it’s crucial for logistics information systems to use standardized ways of exchanging logistics information with other systems and with authorities.

There are many ways for variety of systems could be implementing thus it will ease the progress in any businesses area. Electronic Data Interchange (EDI) is one of the system currently being used especially in customs. Through this system, it enables in exchanges international information through the standardized language as well which is English. Other else, it gives such an immense helped through all the high technologies by providing a vast amount of information easily and rapidly.

Besides, Radio Frequency identification (RFID) is another system that currently being used by many companies. While Radio Frequency Identification (RFID) is a technology similar in theory to bar code identification. It gives such an immense helped by monitoring the coming in and out of the finished product at one place. Literally, it will ease the firm itself on how to manage the level of inventory of the finished product every day.

Read More

CARRIERS STRATEGY

Carriers Strategy is important logistics industry. Because of environment and natural  condition, logistics industry have a challenge that must face. Here I want the emphasize the challenge is operating network, operation and labour.

Operating Network

Operating Network is territory that company can access. For example, Pos Laju Malaysia can access all over the Malaysia even though the place is in urban area. The wider the network, the greater the challenge that the company must face.

If the branches is over the world, manager face the challenge to monitor the equipment and asset. Asset and equipment must deployed to shipper's location, which requires continue to monitoring of equipment location and customer demand. The place must be near to the market to make the handling of the freight easy and to monitor of customer demand of that area.

Second, a high proportion of operating task is performed beyond the scope of supervisor. If the worker if faces the greater challenge, supervisor beyond scope to monitor or to give orders. For example is pilot. When aeroplane in the air, the supervisor hard to control. Pilot must think and responsible every decision that he made.

Third is vast geographic operating network is interrelated and interdependent. The carrier company must make sure that freight must complete delivery event though the delivery take thousand miles. Which means is origin terminal, pickup vehicles, consolidation terminals and others are work together to make the complete delivery.

Fourth is carrier operation and equipment are continually exposed to weather condition and other hazard that beyond the control of management.  Bad weather is beyond of the control of management. For example, if the rain heavily, air mode cannot operate because the weather is not good condition to aeroplane to departure.

Lastly is other hazard beyond management control include traffic congestion and calamities. As we know, in peak hour confirm traffic congestion will happen but traffic congestion cannot be predict because  sometimes in the middle of the night can also traffic congestion because of road accident.

Operation

Transportation operation come into direct contact with the general public, making safety a critical factor. For example, road mode share the highway with other car and air mode is fly over populated areas. This activity cannot be avoided because if the accident is happen, it will happen.

Labour

Labour is important in logistics industry. In truck mode, if driver is not work, the delivery cannot be complete. Even though the pipeline is less require of worker, if worker not monitor, the pipeline mode will not running smoothly. The worker must worker together to make complete shipment.

Read More

TYPE Of TERMINAL

Terminal is a basic things of transportation. Terminal is divided 6 consist of rail, water,air,pipeline,motor carrier (truckload), motor carrier (less truck load).

Rail

Rail terminal commonly call a hump or marshaling yard. Some of this terminal provide 2 activity which is for freight and passenger but usually the freight is separate because freight activity must have a lot of space. Freight terminal is little complex than passenger because want to full fill of customer demand. This terminal must have specialize loading and unloading equipment and equipment. Rail freight perform 4 major fuction. Bulk, roll on/off, break bulk, intermodal, shunting. Basically intermodalism happen with truck rail or rail truck. 

WATER

Water terminal consist of harbor and port. 

Harbor

Harbor is water portion for staging, loading, and unloading activities of the ships. Harbor usually is natural but some country constructed. 

Harbor

Port

Port is the land area that provide space for freight and the loading and unloading equipment. The port area of water terminal includes pilotage and towage facilities for ships not able to use their own power to enter the port. Facilities at the port is ship repairs, bunkering, victualling, custom, security services and medical services.

Air

Air is consist of 2 facilities. Freight and passenger. The activities is just the same of rail mode, the different is mode of transportation.

Pipeline

Pipeline terminal have storage facilities, gathering lines, trunk lines, and pumping station. This facilities for temporary storage before ship or lorry tanker transport storage. As we know, pipeline is fully automated, less using worker. 

Motor Carrier (truckload)

Truckload is we as user, rent the whole of container. We fully occupy the container. Motor carrier(truckload) do not have terminal because there send the goods directly to the consignees. Which mean, door to door service. Truck will stop, just for maintenance, dispatching, fuel, and maintenance service. 

Motor Carrier (less truckload)

Less truckload is consignees rent the space of container. In other words, we share the container with other people. The terminal using the hub and spoke system to easy to collect the goods from the consignor. 

Read More

FACTORS THAT AFFECTING PRICING DECISIONS

FACTORS THAT AFFECTING PRICING DECISIONS

There are many factors that affect the pricing decision of one company towards its product. Before setting a price, the company must decide on its strategy for the product. If the company has selected its target market and positioning carefully, then its marketing mix strategy, including price, will be fairly straightforward. In transportation perspectives, there are some aspects which enlighten to be the main factors. A company should take overall aspects in order to have the best solution of setting the price of the product by taking the environment aspects. Here we will explain more on the topics that affect the pricing decisions. 

Among the factors that will affect the pricing decisions are the customers. Before setting the costing and pricing, usually they do a survey on the price at the market area. This can be done by interviewing, research and many more by the marketing department. After they done the research, then they can assume the prices that can be stated for sales in the market. Next, another view that a company must highlight the most is government where they control the price of the product in the market. For example, in festive season especially, most of the price of convenience goods is standardize by the government. The seller does follow the market price which restrict by the government.

Somehow at one point a company must follow the price of competitor. In transportation view, they must look on their competitor’s price to assure that their company able to compete with others. For example, the prices of a cup of tea are different at certain place where the seller follows their competitor price. Besides that, the determination of the product is based on the quality of the product. That’s include the dependability of the goods on how long it can be used. The brand power that is used at some branded items where they charge based on the brand of the product.

On association perspectives, usually payment that are made to whom join the club are cheaper than the one who are not joining. Basically, the prices are differing based on the association of the person. For foreign exchange, the price based on the depreciation economy. If a country virtually depreciates promptly thus the shipper needs to follow the regulation of the country they want export to. Carriers must take fast respond on changes and directions from their operating environment. Somewhat, environmental perspective thus take a big responsibilities in many view of pricing. Carriers or shipper must alert on this kind of regulations.

Having a pricing objective isn’t enough. A firm also has to look at a myriad of other factors before setting its prices. Those factors include the offering’s costs, the demand, the customers whose needs it is designed to meet, the external environment, such as the competition, the economy, and government regulations and other aspects of the marketing mix, such as the nature of the offering, the current stage of its product life cycle, and its promotion and distribution. If a company plans to sell its products or services in international markets, research on the factors for each market must be analyzed before setting prices. Organizations must understand buyers, competitors, the economic conditions, and political regulations in other markets before they can compete successfully. Next we look at each of the factors and what they entail.

  

Read More

INTERMODAL TRANSPORTATION

 Logistics is very important in our daily motions. There's so many factors that ought to be concern while implementing the movement of either the passengers, or freights. Those firms that provide transport services must have at least improvement towards their services. Or if the firms wants to put their level business to better position, they can do some innovation towards their kind of delivery of operation. Intermodal system is actually as the improvement for the transportation services itself. By implementing intermodal system in moving the finished product from the point of origin to the point of consumption, there are many advantages that will worth themselves.

Intermodal transportation referred to the movement of passengers or freight from one mode of transport to another, commonly taking place at a terminal specifically designed for such a purpose. This involves the use of at least two different modes in a trip from an origin to a destination through an intermodal transport chain, which permit the integration of several transportation networks. It becomes such a value added for carriers that provide this kind of service. This is because of, their services will ease the shipment requested by customers as it's directly arranging for the use of multiple mode of transportation in one single trip.

In other words, intermodality enhances the economic performances of a transport chain by using modes in the most productive manner. Conceptually, the key is that the entire trip is send as a whole, rather than basic transportation, each marked by an individual operation with separate sets of documentation and rates.

 

Read More

OCEAN TRANSPORTATION

Ocean transportation is very important transport for international trade. Compared with another transportation, the transportation of heavy and bulky goods is more convenient by sea. Other than that, ocean transportation such as ferry is use for carry passengers to their destination. That because of the time taken to reach their destination a bit longer, so that it become decline for certain journey and country. Nowadays, the carrier used ocean transportation for deliver the shipment to another countries even take a long time.

The specific types of carrier are liners, tramps and private vessels. All of that provides specific service features to the international transport user. For the first one is liners. Liners are the ships that apply fixed routes by follow the schedules. They usually charges based on container. Liner services are either container or break-bulk types. For transfer the freight to the liner, the freight is loaded by machine just for bulk. While for containerized that use crane to load the freight. Because a ship is only earning revenue at sea, it is easy to see why containers have become a dominant form of packaged-goods shipping. The second one is tramps. Tramps can be categorized as a chartered because it can be leased. Time charters are usually in long-term charters which the shipper will make or arrange more than one-way movement. It is only focus on for the bulky For the last one is private vessels. This is private ships that use for owned. This ships are more flexible compared with tramps and liners. Many oil ships are fix with this category, as do automotive and lumber vessels.

So that, as a human, we can’t move or carry the heavy shipment to anywhere as fast as possible. Not only that, we also can’t transfer or transmit the shipment to another country. To overcome this problem, human generate something that will help them to complete the activities as usual. Such as they build ship for the ocean transportation.

Read More

The Urban Transit Challenges

Urbanization is known of a process as a growing share of the global population lives in cities. Considering to this trend, urban transportation issues are of foremost importance to support the passengers, cargo, and special categories of freight movement according to its characteristics requirements of large urban groups. For the motion of passengers, its actually give us the viewed for the movement of people within urban areas using group travel technologies such as buses and trains. When it is referred to many people are being carried in the same vehicles linking origins and destinations both internal and external to the urban area.

Conceptually, the benchmark for urban transport is to fulfill the demand for accessibility with an efficient and effective in order to give the best satisfaction towards customers for the motion services. Here, we are focusing more on quality services provided as it played as a big role to achieve business’s objectives. This service gives concern on several kind of facets such as economic, social, environmental and safety. As it’s involved the moving between both origin and destination within the center of the city, thus there are still several challenges that ought to give high concern.

 Literally, the development of urban transport and the improvement in public services, particularly passenger transport, influences the population’s time budget. Its mean, the innovation made for the transportation that used high technology will resulted to the better service. In any kind of businesses area that provide variety of services, the better services gives as a benefit to the firms as they can generate and even more revenue considering to the continuously improvement worth themselves.

Other else, it’s a prominence facet for the services provider as the development of modern cities itself will result to the higher cost incurred by the firm. It’s depends on the developing of the city, for the cost that will be paid for the highway charges. Another else, the cost will highly increased due to the customs boarder for the charged of the freight in by the country they penetrate into.

Environmental also plays as big role for the transit involving more than one mode of transportation. The availability of facilities have had by any country such as the ocean port, and airport gives a big help in order to make the progress for transit system will be running smoothly. But it will become more complex and as the challenges, if the country doesn’t has a good facility. So then, the country should have to find another alternatives for the developing their city that will put them to the better position.

Read More

AIR FREIGHT FORWARDER

When talk about Air Freight Forwarder, many country and companies have provide this services. In Malaysia also has a company that provide freight forwarding. For example is Essence Global Logistics Sdn. Bhd. This company is an agent that provides freight forwarding services by Air freight and Sea freight. It also provides a customs brokerage agents and trucking/transportation agent in most Malaysian airport/seaports or point of entry.

The mission of this company is to be the leader in the forwarding industry and the customers’ first choice for worldwide integrated freight forwarding logistics services. The activities of Essence Global Logistics Sdn. Bhd. is process all kind of shipments to and from any part of the globe. It is also facilitates the productive operation of organizing, serving and satisfying corporate needs.

Usually before we choose the freight forwarder company, we look their criteria which is reliability, competitive price, speed of service and far reaching. For reliability, as a customer, they want their shipments must be handled and delivered properly. This is because they want their shipments arrive to the destination in the good condition. That’s why customers want their service provider to be reliable. It is hard to get the trust of customers. When the customer satisfied with our service, they do not try to find another company because of the trusted. In addition, they are likely to recommend our company to other people who might be in need of the same service.

When the customer think of air freight services, the first thing that comes to their mind is about the price. Nature of the business, it is a common concept. The customer want the services at the lowest price but best services. If it is expensive and that not everyone can afford them. With the many competing freight forwarding in Malaysia services, there are already changes in the price. Before this, customers need to pay for the customs fee or rates but nowadays they can easily choose one provider that offers the best service at the lowest price.

The speed of service is one of the vital factors needed in freight forwarding service provider. That’s like the initial purpose of the shipments. It can be noted that the speed of the delivery should not compromise the quality of the shipments. The customer usually wants their shipments deliver and arrive on time. No wonder the speed is the important thing for this service. Without it, the shipments can never work.

For the last one is about accessibility. The shipment  are not only deliver on usual locations and famous places. There are also deliver the important materials or things to the anywhere they can reached. There should have one or two employees who should specialize in the familiarization of different localities. Essence Global Logistics Sdn. Bhd. is aware of what customer wants in their service provider. This is the reason why there are continuous updates on how the best way to improve the tools, machines and the personnel that they have.

Read More