Transport Logistics is a field that demands accuracy, analysis, and negotiation skills. Here the raw materials are shipped to the manufacturers and finished goods are supplied to the customer. Logistics includes management of cargo, storage of goods, materials, and inventory management. It also involves packaging of finished products for shipment and storage, documentation, insurance, importing and exporting regulations, damage claims, and many more.
Guidelines for Transportation and Logistics:
Following are the general guidelines that address some of the main factors related to the Transport Logistics and the measures that should be taken to manage some risks:
Security during transportation of goods: Organizations that are involved especially in the transportation of dangerous goods by any modes of transportation should consider all the security provisions regarding transportation.
• Responsible Persons: The organization should designate a person with suitable qualification and proficiency as responsible person for safety. The person should convey all the suggestions and requests regarding security from employees to the management and is responsible for providing security information to employees involved in the activities.
• Record: The organization should keep track of all kinds of goods transportation. The record should be kept for certain years according to the regulations and it is made available to the authorities upon request.
• Review of Operations: when establishing the Transport Logistics guidelines, the management should review all the current operations regarding packaging, storage, and transportation of goods. These guidelines are reviewed at regular intervals from a security point of view
The companies which you hire should have proper training and they should be aware of the risks and the precautions:
Training: Every employee, who is involved, especially with activities related to high consequence hazardous goods should go through security awareness training. During this training, they should also receive information from the management about the security prevention measures.
• Reporting of Threats, Breaches, or Incidents: Any threat, breach, or incident should be reported by the employee to the management or to the person responsible for security. The management or the person responsible for security then decides if the authorities have to be informed.
• Risk of Shipment Loss: In Transport Logistics, integration of shipments increases the risk of lost shipment, making JIT (Just in Time) assembly line to standstill. An unexpected shortage of materials wills shutdown the production. The orders must be delivered quickly without any delay. This is why most of the JIT suppliers build plants or distribution centers near to their major suppliers. In case the suppliers are not located close by, they must have backup routes for their product.
• Security of Information: No other person except the employees related to goods transportation should be informed about the type of goods transported and handled by the organization.
• Additional Measures: In addition to the above-mentioned measures, the organization should review whether the Transport Logistics need more specific measures to reduce the security risks.
How to Minimize Transport Logistics Cost?
The easier way to minimize Transport Logistics cost is to terminate unnecessary transportation. This can be made possible by finding closer suppliers and by using appropriate systems to time ordering, so that we have some minimum stock on hand. The logistical costs are directly minimized by just in time or manufacturing.
You can minimize the cost by consolidating shipments, buying partly congregated products from vendors and reducing the number of movements required to ship in raw materials. Also it is important to order for raw materials in packaging that can be directly shipped and stocked in warehouse. This eliminates the unnecessary process of collecting, unpacking, and tagging products for organization’s own inventory management system.