Logistics is the process of managing the movement and storage of raw materials, parts, and finished products from suppliers to customers. It involves activities like transportation, warehousing, and inventory management. Transportation is a key part of logistics and includes various modes like rail, road, air, and water. Warehousing is used for temporary storage of goods and provides functions like preservation, price stabilization, and regular supply of goods. Insurance helps transfer risks from individuals and businesses to insurers. It provides benefits to businesses, the public, the country, and the government.

1. © 2002 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

2. © 2002 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Logistics
It is the process of
managing the movement
and storage of raw
materials, parts and
finished products from
the suppliers through the
firm andon to the the
customers

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Activities involved in Logistics

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Relating marketing channels, logistics management,Relating marketing channels, logistics management,
and supply chain managementand supply chain management

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Logistics objectives

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transportation

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Transportation
Functionality

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Importance of
Transportatio
n:

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 Better utilization of the backward areas linking
with the advanced areas
 Better utilization of the backward areas linking
with the advanced areas
 For rapid industrialization & urbanization
 For removing the scarcity of goods
 Easy movement people and bringing them in contact with each other

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Transportation…
These are the major means of transportation n
Railways
Road ways
Air ways
Water ways

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Rail Transport:

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Rail Transport:

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CAN BE CONSTRUCTED EVEN IN AREAS OF DIFFICULT TERRAIN
OFFER DOOR TO DOOR SERVICES
HELP FARMERS TO MOVE THEIR PERISHABLE GOODS
Small investment in construction and maintenance
flexibility

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Mumbai Pune Expressway

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AHMEDABAD-VADODARA
EXPRESSWAY
AHMEDABAD-VADODARA
EXPRESSWAY

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A view of Delhi- Gurgaon stretch of National Highway - 8 (NH-8).
The 8-lane expressway connects Delhi to Gurgaon and IGIA

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A section of the Golden
Quadrilateral between
Bengaluru and Chennai
A section of the Golden
Quadrilateral between
Bengaluru and Chennai

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The Delhi-Noida section of the Delhi-
Noida -Greater Noida expressway
The Delhi-Noida section of the Delhi-
Noida -Greater Noida expressway

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AGRA -MATHURAAGRA -MATHURA

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DELHI.PANIPAT

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BANGALORE-MYSOREBANGALORE-MYSORE

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Water Transport

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Water Transport

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Air Transport:

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Air Transport:

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Advantages and disadvantages of five modes ofAdvantages and disadvantages of five modes of
transportationtransportation

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WAREHOUSING
by richard’s (amu)

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CONCEPT

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Consolidation and break-bulk reduce
transportation cost

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Consolidation and break-bulk
arrangements
Figure 10.1 Consolidation and Break-Bulk Arrangements

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MEANING AND DEFINITION

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definition

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NEED AND IMPORTANCE

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BASIC FUNCTIONS PERFORMED
Price stabilization
Transfer of risk
Financing
Regular supply of goods

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FUNCTIONS

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BASIC REASONS FOR NEED OF WAREHOUSE

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TYPES OF WAREHOUSES

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PRIVATE WAREHOUSES

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Advantages of private warehouses

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2. PUBLIC WAREHOUSES

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ADVANTAGES OF PUBLIC WAREHOUSING

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3. BONDED WAREHOUSES

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•
•
••
Preserve
perishability
of goods
against
payment of a
storage
charge
Enables
farmer to
obtain
remunerative
prices for
agricultural
produce.
It facilitates
export of
perishable
goods thereby
earn foreign
exchange
Generates
employment
in rural and
semi-urban
areas
Employment
export
Help farmers
Preserve
•
Makes
seasonal
products
available to
consumers
Controls
fluctuation

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DOCUMENTS USED IN A WAREHOUSING
Warehouse warrant
• A warehouse warrant is a
document that provides proof of
ownership of commodities that
are stored in a warehouse
• ISSUED FOR PUBLIC/BONDED
• It is a document certifying
that the specified goods have
been deposited in the
warehouse for safe-keeping
Warehouse receipt
This is a receipt of
acknowledgement of the goods
kept in the warehouse by the
warehouse keeper
Delivery order
• It is the order issued by the
owner of the goods to deliver
the specified goods to the person
named in the order

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CHARACTERISTICS OF IDEAL WAREHOUSES

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WAREHOUSE OPERATIONS

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DEFINITION “Insurance is a device for the
transfer of risks of individual
entities to an insurer, who
agrees for a
consideration(called premium)
to assume to a specified extent
of losses suffered by the
insured”.
BY; W.A. Dinsdale

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FACTS

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BENEFIT TO
BUSINESSMEN
BENEFIT TO
BUSINESSMEN

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BENEFIT TO
PUBLIC
BENEFIT TO
PUBLIC
PROTECTION
SAVINGS FINANCIAL
AID
TAX RELIEF
PROVISIO
N FOR OLD
AGE

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BENEFIT TO
COUNTRY
BENEFIT TO
COUNTRY
MOBILIZATION
OF SAVINGS
ECONOMIC
GROWTH
EMPLOYMENT
RURAL
DEVELOPMENT

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BENEFIT TO
GOVERNMENT
BENEFIT TO
GOVERNMENT
INVESTMENT IN
PRIORITY
SECTOR
(Transport, mining)
EARN FOREIGN
EXCHANGE BY SETTIN
GBRANCHES IN
FOREIGN COUNTRIES
PY TAX TO
GOVERNMENT ON
THEIR INCOME

60. © 2002 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
IMPORTANT WORDS USED IN INSURANCE
INSURER
A person or company
that underwrites an
insurance risk; the party
in an insurance contract
undertaking to pay
compensation.
INSURED
A person or
organization
covered by
insurance
INSURABLE INTEREST
Financial interest of the insured in
the subject matter of insurance.
A person must be in such a position
that he will suffer a primary loss by
the happening of the event insured
against.
INDEMNITY
Promise to compensate in
case of loss

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Principles of Insurance:
Utmost food faith
It is the legal duty of the
proposer(one who wants the
insurance policy) to disclose all
the material facts about the
subject to be insured.
The premiums is fixed on the
basis of the information
supplied by the proposer

63. © 2002 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
EXAMPLE
Utmost food faith
For example - John took a health insurance policy.
At the time of taking policy, he was a smoker and he
didn't disclose this fact. He got cancer. Insurance
company won't pay anything as John didn't reveal
the important facts.

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Principles of Insurance:
Insurable interest
Insurable interest exists when
an insured person derives a
financial or other kind of
benefit from the continuous
existence, without impairment
or damage, of the insured object
(or in the case of a person, their
continued survival). A person
has an insurable interest in
something when loss of or
damage to that thing would
cause the person to suffer a
financial or other kind of loss.
Insurable interest exists when
an insured person derives a
financial or other kind of
benefit from the continuous
existence, without impairment
or damage, of the insured object
(or in the case of a person, their
continued survival). A person
has an insurable interest in
something when loss of or
damage to that thing would
cause the person to suffer a
financial or other kind of loss.

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Principles of Insurance:
Insurable interest
In case of life insurance spouse and dependents have
insurable interest in the life of a person. Corporations also
have insurable interests in the life of it's employees.
In case of life or marine insurance, insured must be the
owner both at the time of entering of entering into the
insurance contract and at the time of accident.

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Principles of Insurance:
Indemnity

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EXAMPLE

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Principles of Insurance:
Doctrine of Subrogation

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EXAMPLE
Doctrine of Subrogation
When an insured driver's car is
totaled through the fault of another
driver. The insurance carrier
reimburses the covered driver under
the terms of the policy, and then
pursues legal action against the
driver at fault.
Suppose a house is insured for
2 lakh against fire. The house
got damaged by fire and the
insurer pays the full value of 2
lakh to the insured. Later, the
damaged house is sold for
Rs20,000. the insurer is entitled
to receive the sum of
subrogation.

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EXAMPLE
Doctrine of Subrogation

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Principles of Insurance:
Contribution
Right of an insurer who
had paid claim under an
insurance policy to call
upon other insurers to
contribute to the payment.
It is applied when an
insured has taken more
than one policy on the
same property.
Right of an insurer who
had paid claim under an
insurance policy to call
upon other insurers to
contribute to the payment.
It is applied when an
insured has taken more
than one policy on the
same property.

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Principles of Insurance:
Contribution
CALCULATION OF CONTRIBUTION

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CAUSA PROXIMA (PROXIMATE CAUSE)

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EXAMPLE
Causa proxima
For example all the
passengers in an air
flight are insured
against death in the
event of the air crash.
One passenger dies of
the heart attack.
In this case
Insurance company
is not liable to pay as
plane crash is not
approximate cause of

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Principles of Insurance:
Mitigation of Loss