15Logistics Plan for International Transport and

15
Logistics Plan for International Transport and Warehousing of
Goods
Name
Institutional Affiliation
Date
Introduction to the company and its history
Strategic Logistics Management Inc (SLM) is a logistics
company based in the United States of America (USA). Many
factories in New York City and Los Angeles are managed and
coordinated by the group. Brook Brothers Company, which sells
garments and is based in New York, has come into a partnership
agreement with SLM. The contract's scope of work covers
warehousing and distribution facilities for clothing packaged in
various sizes of cardboard boxes. Pallets about 40 inches by 48
inches are used to compile the cardboard boxes. SLM has been
tasked with planning logistics for Brook Brothers shipments
from New York to Sydney, Australia, under a newly signed
deal. The garments will be transported to and from Australia by
SLM Inc. It has also set a monthly goal for freight units equal
to 200 20-foot (TEU) of imports and exports. This paper will
now concentrate on a logistics strategy that SLM will use to
improve its ability to compete in Australian market segments.

The Products' Physical Characteristics
The cardboard boxes are stacked and boxed; a single box
measures 48 inches (4 feet) by 40 inches (3.3 feet). The pallet's
longer hand measures 4 feet, which is equivalent to 0.2 TEU
when divided by 20. The gross weight planned for shipment is
two hundred feet, which is equivalent to twenty TEU. It is made
up of wooden boxes that will be shipped in a single crate that
measures 4 feet by 3.3 feet wide by 3.5 feet tall. The container's
gross volume would be 46 square feet. The load's volume per
delivery is less than 1 TEU, so it's considered a small
consignment. Small deliveries are compact and can be easily
transported without the use of heavy transportation. Big
consignments, on the other hand, will exceed 1TEU and,
depending on their scale, will necessitate comparatively heavy
transport.
Transportation mode
For any logistics firm, choosing the mode of transportation
is important because it helps to ensure sustainability, cut costs,
and ensure the productivity of the job. In other words, choosing
the right mode of transportation would save money and satisfy
the needs of consumers at any stage of the transaction. If a
business prefers a bad mode of transportation, such as driving to
transport goods abroad, it will incur additional costs that can be
avoided if a better mode of transportation is used. To prevent
compromising the transportation method, it is important to use a
mode of transportation that can accommodate heavy goods
while transporting a more decadent item. If two modes of
transportation are capable of performing the function, it is
critical to choose the one that will produce the least amount of
waste and fulfill the importer's demands in the shortest amount
of time.
Since the mode of transportation has an impact on SLM's
efficiency and service provision, it must be carefully prepared
(Wilding & Juriado, 2004). The cost of shipping, the worthiness
of the goods, the size and weight of the items, and the urgency
of delivery are all considerations to remember. Prior to

shipment to their destination, the boxes were filled as a single
load. In this case, the consignment is smaller, implying that it
can be shifted more easily. Clothing is therefore long-lasting
and does not need to be shipped quickly. This suggests that the
importance and priority of one package would be reduced due to
the combination of low weight and non-urgency. Leadership can
make transportation decisions by taking into account all of the
aspects that influence their choices.
SLM has the option of choosing from four modes of
mobility multimodal, sea, air, road, and rail. Since the
difference between the two countries is thousands of kilometers,
sea and air transportation are the most cost-effective and time-
efficient modes of transportation. Since the two continents are
divided by sea, rail and road transportation are not viable
options because the system does not accommodate these modes.
The items in question, clothing, can only be transported by air
or sea. These two modes of transportation are similarly
convenient, but air travel would be much more suitable due to
the small load weight, the expense and quality of the materials,
and the need for lightweight clothing. Furthermore, the ships
are built to carry huge loads, making this an expensive and
extravagant choice for SLM.
About the fact that geographical boundaries prohibit the
use of rail and road transport, SLM needs both to carry clothes
locally in the United States and Australia. This emphasizes the
importance of a multimodal transportation infrastructure.
Multimodal transportation is a form of transportation in which a
series of players provide transportation services under the
control of a single operator. This ensures that whether goods are
delivered to an airport or a port by air or sea, another form of
transportation, such as the lane, will be used to carry the
products to the destination. The following are some of the
advantages that SLM can profit from multimodal transportation:
· As a result of the cost and time savings, efficiency has
increased.
· Reduce the amount of time spent waiting at trans-shipment

sites.
· Ensuring that the goods in transit are delivered in a timely
manner.
· Reduces the amount of paperwork and formalities that must be
completed.
· Assists in dealing with only one organization.
· Consolidation resulted in fewer loads being limited.
In Australia and the United States, multimodal transportation is
essential for SLM.
Multimodal delivery is the safest choice for the business
because it means that if air transport is used to carry garments
to airports, only ground transport, such as vans, can be used to
bring goods to the final location for door to door distribution.
This is due to the adaptability of road transportation.
Furthermore, from ports, road transport can have the same
benefits, making multimodal transportation mode very
important for SLM locally in the United States or Australia.
Though rail transport can be used in lieu of road transport for
local logistics, land transportation is inflexible in terms of door -
to-door distribution, making road transport the best choice
because rail transport is built for heavy materials and the
shipment is light.
SLM has warehouses that it can use to transport supplies
quickly.
The type of warehouse selected will decide how quickly
supplies will be distributed. SLM may use the following types
of warehouses to allow for fast clothing delivery.
Dispersion warehouses and distribution centers
This warehouse has a wide capacity or room, making it
easy to transport large volumes of merchandise in a limited
amount of time. They are, by definition, points in the supply
chain where products are bought from suppliers and retailers
and then quickly delivered to customers. These include
computerized controls and systems that allow goods to be
moved, loaded, and offloaded as quickly as possible. Not only
does this allow for fast movement, but it also allows for great

coordination with all stakeholders. This storage facilities are
located near distribution hubs to reduce shipping time. In
certain situations, such as in fast food or perishable
merchandise, delivery centers handle the goods for less than a
day. The majority of commodities arrive in the early morning
(dawn) and are transferred/distributed by night.
Private warehouses.
The government does not maintain these storage facilities;
however, private individuals do. They are either corporately
owned, rented, or leased. Unlike public warehouses, which are
operated by the state, owning or renting a private warehouse
allows a company to have complete ownership and maintenance
of the facility. Depending on the needs of the management,
private warehouses may be used if complete control is needed.
If the SLM is concerned about costs, however, public
warehouses would be a safer option
Warehouse Automation
With so many automated systems available, it's no wonder
that the warehousing industry has taken advantage of them as
well. Automated warehouses are, as one would expect, almost
fully automated. These stores use the new software equipment,
cranes, and carriers to manage and carry out their tasks, using
relatively little manpower for monitoring.
Documents for Import and Export
The transportation and logistics sector relies heavily on
paperwork because it protects all involved parties, including the
transporting firm, the seller, and the buyer. To make the
procedure of selling and importing products into the United
States easier, all parties involved must provide adequate
paperwork. This section would go through the most common
documents used in the logistics industry, as well as the ones
that are needed when exporting and importing. The types of
papers needed in this exercise are influenced by the exporting
and importing countries' individual specifications. When a
document is not adequately packed, the shipment in transit will

face several difficulties on the way to its final destination. The
first challenge is that the shipment would have difficulty
clearing customs in the United States; there could also be a
trouble handling payments with a letter of credit, which may
cause delays and result in mismatch charges; and the shipper
will have problems clearing the merchandise on delivery. The
customs division of the destination government, on the other
hand, has the power to require the shipment as well as all
parties involved in the trade. The following papers are needed
when importing and exporting goods between the United States
and America, as well as when distributing products:
Invoice for commercial use,
It contains shipping jargon that outlines the entire export
transaction from beginning to end. It provides essential
information about both actors, including the customer, freight
forwarder, banks, airlines, and import brokers; if they are not
completed properly, payments or penalties can be incurred in
the United States.
A bill of lading is a document that describes the contents of a
shipment.
This is the most common paper used in foreign trade
between the merchandise owner and the courier. Internal
monitoring must be in effect in any company to deter fraud.
Internal management includes division of responsibilities,
which prohibits one person from wielding too much power
within a company. There are no two internal control systems
that are alike. Many, on the other hand, adhere to a series of key
philosophies that have become common management procedure.
Internal monitoring will aid in the streamlining of processes and
the prevention of theft. To deter asset laundering, a bill of
lading is one of the important documents that must be carefully
handled and inspected.
It is compiled by the carrier and issued to the shipper,
listing the form of goods shipped, the amount of goods
delivered and the goods' location. This record must still be

present when the shipment arrives. When the box arrives at its
destination, the "Bill of lading" will even be used as a
"shipment receipt." As a result, Brook Brothers and SLM will
use it. It specifies where products are sent and where they are
sent.
Certificate of origin,
This is an official declaration the certifies that goods in an
export agreement were made or processed in a specific country.
Customs, tax clearing, and import tariff reductions all require
them. This is used to show that the goods were manufactured in
the United States, as well as for Australian businesses.
Certificate of Insurance
It certifies that the products being exported have been
insured against threats in order to ensure that they are
protected. This certificate is crucial, especially for goods being
transported by sea. The insurance provider will cover all costs
incurred by the items whether they are destroyed or stolen while
in transit. The insurance policy's aim is to cover any costs
involved with the products. The Certificate of Insurance
clarifies the authenticity of an insurance plan and summarizes
the policy's key provisions and words. A typical COI, for
example, includes the name of the holder of the policy, the
effective date of the policy, type of coverage, limitations of the
policy, and other relevant policy information. Without a
Certificate of Insurance, businesses will have a hard time
finding clients; most companies may not choose to shoulder the
cost of the costs accrued as a result of the supplier’s or
provider's behavior. A company owner or contractor who does
not have a COI will have trouble winning contracts. Due to the
fact that both companies and individuals hire employees, the
customer must be mindful that the business manager or
contractor is covered by liability insurance. This ensures that
the client will not be held liable if the contractor is responsibl e
for loss, accident, or poor workmanship.

Shippers’ export declaration,
In the United States, this is needed. It is used to compile export
statistics as well as to track and manage exports.
The letter of instruction from the shippers,
A Distributor's Letter of Instruction is used for a variety of
reasons, including shipping and paperwork.
The cost of transportation
This is a legally binding agreement between a seller and a
courier. It specifies who is liable for payment. It also discusses
who will be responsible for paying the carrier bill for shipping
services.
Checklists for packing.
Describes the order in which the goods are arranged and
counted. Assist officials in calculating tax and other costs.
• Incoterms 2020 – Expense Allocation
• Incoterms 2020 – Free Alongside Ship (FAS)
When goods are transported by sea, this term is used. This
specifies who is liable for the goods' vulnerability while they
are docked alongside a port. It specifies that the sellers are
responsible for the costs of export formalities, supplying
customers with proof of delivery, and control operations.
Buyers, on the other hand, would be responsible for all costs
associated with import and transit, as well as the expense of
securing a carriage deal, additional costs, and costs associated
with the conclusion and fulfillment of commitments.
• Free on Board, Free alongside Ship, CFR, and CIF are
Incoterms.
• Delivered Duty Paid Incoterms (DDP).
The customer is responsible for customs, fees, and
transportation from point A to point B.
• Free on Board Incoterms
The buyer and seller will share the costs, and the risks and costs
will be split 50/50.
Just-In-Time management system (JIT)
This is a stock management device that coordinates the
delivery of supplies, stocks, or inventory with the

manufacturing and fulfillment plan. Companies use this
inventory approach to improve productivity and minimize
duplication by receiving products only as required for the
manufacturing process, lowering inventory costs. This approach
necessitates producers correctly forecasting demand Javadian
(Kootanaee, Babu & Talari, 2013). Compared to standard
inventory models, JIT inventory schemes have a number of
advantages. Fast production runs enable producers to rapidly
move from one commodity to the next. This approach also saves
money by reducing the need for warehouse space. Companies
often waste less money on raw materials and they only import
what they need to produce the goods they've ordered.
They are only distributed when they are needed in the
manufacturing process. Implementing robotics, cloud
networking, and barcoding software are all part of the process.
Many companies use this concept as the foundation and
cornerstone of their competition.
The process entails applying three technologies: cloud
computing, barcoding, and automation. These can aid in
optimizing stock levels and managing stock levels in a factory
in order to avoid overstocking and understocking. Excellent and
efficient coordination between interested parties is required to
effectively enforce this inventory management process. This
enables goods to be transported efficiently and on-demand
through air transport, reducing waste and increasing
productivity and effectiveness. In a factory, just-in-time stock
management ensures that stock levels are maintained at
optimum levels. This eliminates the risk of overstocking or
understocking. This is achievable and would go a long way
toward achieving success if new technology and good
connectivity are combined with efficient air transportation. This
will allow for more efficient usage of warehouse space while
also lowering stockholding and security costs.
Line elements in the budget.
Line item in the budget Justification.

Consolidating shipments Management of cost recovery.
Protection and protection in the warehouse Operations that are
both efficient and effective
Implementation of software Order scheduling, client
relationship management, and load forecasting are all things
that need to be taken care of. Inventory management Stock
ratios that are optimal.
Packaging and logistics Quality assurance and damage
prevention purchasing of equipment Operations on a regular
basis.
Transportation and communication and information
networks Goods transportation, connectivity, and mode of
transport selection.
Shipment restructuring is crucial in ensuring that a
company's costs are properly handled and maintained. This aids
in cost-cutting, revenue-generation, and sustainability. This
means that inventories can be held at levels that result in the
lowest possible expense and the highest possible benefit
(Hausman & Subramaniam, 2012). This has an impact on the
method of transportation that a company uses.
Security and protection in the warehouse is a must, since it
reduces the chance of burglary and loss of consumer products.
This entails keeping track of risky actions and behaviors and
eliminating them. This will result in more effective and secure
processes, which will improve SLM's financial results.
Both storage and transportation logistics must be
coordinated with packaging logistics. These three regions share
one thing in common: they are all involved in the manufacture
and delivery of goods (see also Distribution Center). Packaging
logistics is responsible for the supervision, coordination, and
optimization of a company's packaging processes. As a result,
packaging logistics is responsible for coordinating the interests
of storage and transportation logistics, as well as reaching an
agreement with the packaging maker on the best approach.
Logistical packaging differs from other types of packaging
in that it is used to protect products on board from corrosion

and harm (Saghir, 2004). This would preserve product
consistency, resulting in a better SLM brand and increased
profitability. One of the expense factors is the purchase of
equipment. This involves buying computers and other IT-related
equipment that facilitates effective contact and efficient
material processing in and out of stores. If JIT or another
inventory management system is to be used, IT infrastructure is
also required.
One of the most important budget line elements is
inventory management. This is a crucial feature that means
there is no overstocking or understocking, resulting in lower
stock retention costs. The financial gain of carrying optimal
volumes of stock would be very beneficial to SLM.
The importance of communication, information
technology, and transportation cannot be overstated. Under the
"logistics and supply chain," this coordinates all coordination
mechanisms and knowledge flow between different
stakeholders. It also assists with the planning of modes of
transportation.
References
Hausman, W. H., Lee, H. L., & Subramanian, U. (2013). The
impact of logistics performance on rade. Production and
Operations Management, 22(2), 236-252.
Javadian Kootanaee, A., Babu, K. N., & Talari, H. (2013). Just-
in-time manufacturing system: From introduction to
implement. Available at SSRN 2253243.
Saghir, M. (2004, April). The concept of packaging logistics.
In Proceedings of the Fifteenth Annual POMS Conference,
Cancun, April (pp. 1-31).
Wilding, R., & Juriado, R. (2004). Customer perceptions on

logistics outsourcing in the European consumer goods
industry. International Journal of Physical Distribution &
Logistics Management.
Gunasekaran, A., & Ngai, E. W. (2003). The successful
management of a small logistics company. International Journal
of Physical Distribution & Logistics Management.
Hesse, M., & Rodrigue, J. P. (2004). The transport geography of
logistics and freight distribution. Journal of transport
geography, 12(3), 171-184.
Gleissner, H., & Femerling, J. C. (2013). The principles of
logistics. In Logistics (pp. 3-18). Springer, Cham.
Grishchenko, O. V., Kireev, V. S., Dubrova, L. I., Yanenko, M.
B., & Vakulenko, R. Y. (2016). Organization, planning and
control of marketing logistics. International Journal of
Economics and Financial Issues, 6(8S).
Skender, H. P., Host, A., & Nuhanović, M. (2016). The role of
logistics service providers in international trade. Business
Logistics in Modern Management.

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