Logistics and Basic Issues

Logistics and Basic Issues

Logistics is the process of managing the movement of goods from the point of origin to the point of destination. It encompasses various aspects, from warehousing, packaging, and transportation to inventory management and distribution.

Transportation is a crucial part of logistics, and there are multiple transportation modes available, each with its own advantages and disadvantages.

1. Road Transportation:

• Advantages: High mobility, door-to-door delivery.

• Disadvantages: High cost, high risk of security breaches, traffic congestion, pollution.

• Suitable for: Short transportation distances (urban areas, inter-provincial, industrial zones within a radius of 300km or less).

2. Water Transportation:

• Advantages: Transporting large volumes of goods, oversized and heavy items, low transportation costs.

• Disadvantages: Dependent on waterways, slow transportation time, large size requires sufficient cargo for cost-effectiveness.

• Suitable for: Areas with a large volume of goods.

3. Rail Transportation:

• Advantages: Low cost, long distances, accessibility to industrial zones and urban areas.

• Disadvantages: Dependent on railway infrastructure, limited mobility.

• Suitable for: Large volume of goods.

4. Air Transportation:

• Advantages: Fast speed, long distances.

• Disadvantages: Cannot transport large volumes of goods, high transportation costs, high investment in infrastructure.

• Suitable for: High-value goods.

5. Intermodal Transportation:

• Each transportation mode has its own advantages and disadvantages, intermodal transportation optimizes advantages and minimizes disadvantages.

6. Multimodal Transportation:

• Utilizing two or more transportation modes based on a single multimodal transport document.

• Each individual stage is managed by a dedicated unit, coordinating the entire transportation process, connecting stages to ensure uninterrupted cargo movement.

7. Cross-Border Transportation:

• CBT (Cross Border Transport/ Cross Border Trucking): Transportation process across national borders, from one country to another.

• Often used for cross-border road and rail transportation.

8. Methods of Cargo Handling in Cross-Border Transportation:

• Transhipment: Cargo is unloaded from the vehicle in Country A to a warehouse or depot at the border area and then loaded onto a vehicle in Country B.

• Piggybacking: Two vehicles connect to each other, cargo from the vehicle in Country A is directly transferred to the vehicle in Country B.

• Container Interchange: Allows transferring the entire container from the vehicle in Country A to the vehicle in Country B.

• Semi-trailer Interchange: Allows changing the tractor unit, the tractor unit in Country A is replaced with the tractor unit in Country B pulling the same semi-trailer and container and vice versa.

9. ACTS System:

• ASEAN Customs Transit System: An IT system connecting and exchanging information between ASEAN countries to implement electronic transit procedures and control the movement of transit cargo through the territories of ASEAN member countries.

• Supports customs authorities of ASEAN member countries in calculating customs duties, surety amounts, and exchanging information for customs debt recovery.

10. Role of Containers:

• An empty structure that can hold various types of goods and be reused multiple times.

• 20 feet long (6.06m), 8.6 feet wide (2.6m), with a capacity of 33.1 cubic meters.

Conclusion: Logistics is a complex industry, requiring the coordinated integration of various factors, including transportation, warehousing, packaging, inventory management, and distribution. Understanding the transportation modes, associated issues, and the roles of different factors is crucial for optimizing logistics efficiency.