Measuring the performance of your fleet by clearly defining strategy and tactics
CindyPalmer's Guide to Transport Logistics
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UNIT 9 ASSIGNMENT
TLIL5019A IMPLEMENT AND MONITOR TRANSPORT LOGISTICS
SubmissionEvidence:
You are to submitthe followingitemstoevidence yourundertakingof thistask:
Completedquestions1-10(Task 1)
Mobilise resources report(Task2)
Co-ordinate multi-modal transportactivitiesreport/presentation(Task3A)
Example of completeddocument –personallysigned(Task3B)
Monitorconsignmenttrackingreport(Task4)
Implementcontingencymanagementstrategy report(Task5)
Task 1: Knowledge Questions
Answer each of the 10 questions below:
1. What kinds of freight require special transport arrangements and high levels of
resourcing?
Includes but not limited to:
Wide loads (e.g. machinery, buildings)
Raw Materials (e.g. liquid, gas or minerals)
Bulk Materials (e.g. coal, sugar or fuel)
Dangerous Goods
Sensitive Equipment/Fragile Goods
Perishable Goods (e.g. chilled/frozen fresh food)
Medicines and Medical Equipment
High Security Goods
2. How do you evaluate the most suitable mode of transport and route to meet a
customer’s requirements?
Decide what is required – look closely at the operational schedule and work out
what goods need to be transported, where they have to go, and at what time
they must arrive.
Analyse the operational schedule – the operational schedule contains all the
resources that need to be procured, gathered, allocated and used in the delivery
within the required timeframe to meet customer expectations.
Develop operational checklists – this should include but not limited to product
characteristics, methods of loading and delivery, restrictions at the point of
loading or delivery, terrain to be covered, fuel type, vehicle configuration, body
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types, legal requirements, vehicle economy, driver cab type’s, ancillary
equipment and vehicle security.
Working out required resources – the biggest influence on working out resource
requirements is the cost ratio between the cost of the product and the cost of
the freight required to get a consignment to its destination.
Required mode of transport – is decided by either yourself, the client or the
destination. The mode of transport selected heavily influences the people and
equipment required. The five modes of transport most commonly used are road,
rail, air, sea and pipe. The four most influential factors that impact this decision
are the time the customer requires the goods to be delivered, the price they paid
to do it, the infrastructure requirements and stakeholders involved
(Government, industry, private venture).
3. How do you analyse and monitor the quality of your company’s transport
operations?
Once all the information has been gathered, you need to analyse whether it is
achievable. Several adjustments may need to be made until it is right. Using a software
program to assist may make the job easier. Also, there are several systematic
approaches that have been developed, some have very obvious similarities between
these different approaches. These approaches are:
Balanced Scorecard – this translates the strategic mission of a business operation
into tangible objectives and measures. These can be passed up and down a
division so that realistic and useful KPI’s can be developed.
SCOR Model (Supply Chain Operations Reference Model) – this has been
developed as an aid to cost and performance monitoring. It is a very process
orientated approach, where the initial aimis to benchmark, refine and improve
key operational processes and then to identify and introduce key measures that
monitor set cost and performance targets. Eventually, the major company
performance attributes are identified and the appropriate metrics are
developed.
Integrated Supply Chain Approach – is a process orientated approach that
attempts to enable cost and performance monitoring to be based on a horizontal
view of the business rather than a traditional vertical, silo based functional
structure. It recognises that a total systems approach can be adopted for the
whole business or supply chain and that any performance metrics should be
developed on this basis.
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4. What strategies could you use for evaluating and improving the environmental
performance of your company’s transport operations?
Deciding on what action to take after working out the level of risk associated with a
contingency occurring can be done by using one or more of the following risk
management option:
Avoidance – No contingency plan is put in place.
Mitigation (of likelihood) – Action selected focuses on making a risk less likely to
occur.
Mitigation (of consequence) – Action is taken to reduce the impact when a
contingency does occur.
Transference (in full or in part) – Risk is transferred so another party bears all or
some part of the risk.
Acceptance – Risks associated with contingencies are accepted as inevitable and
treated, monitored and reviewed regularly to ensure they are contained.
Exploit – Steps are taken to seize opportunities which have positive effects.
Share – Positive risks are shared with a third party to make it more likely a
positive opportunity is seized.
Enhance – Actions are taken to increase the likelihood of a positive risk occurring.
After deciding what action to take for the risk associated with a contingency, a risk
treatment schedule or action plan can be formulated. The plan should list:
Risk and their rating
Risk priority order
Possible treatment options
Preferred treatment options
Timelines for implementation of risk treatment actions
How risk treatment actions will be monitored.
Giving a large share of the business to a preferred carrier and a smaller share to a
competing carrier is one strategy.
5. How do you plan ahead to cope with unforeseen changes to operational schedules,
issues and incidents?
Throughout the transport logistics process, you should regularly check information
updates, reports and feedback to check your operational schedule is on track. Gathering
data will help management identify any problems as soon as possible and take any
necessary corrective action(s). Quality Tools that are used at all levels of an organisation
are typically used to analyse and review activities and uncover inefficiencies or true,
causes of why an issue occurred. The main Quality Tools are:
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The ‘5 Whys’ – asking ‘Why’ at least 5 times to uncover root cause of a problem.
Flowcharts – found in business process modelling. Uses boxes and arrows method of
examining activities, potentially used in brainstorming.
Fishbone/Ishikawa Diagrams – identifies cause/effect patterns, in which primary
categories are generally pre-determined according to context.
PDCA (plan-do-check-act or plan-do-check-adjust) – is an iterative four-step
management method used in business for the control and continuous improvement of
processes and products.
Run Charts – a graph that plots data/change along a timeline.
Pareto Charts – a line and bar graph displaying cause/effect ratios, especially biggest
relative cause.
Histograms – a bar graph displaying data in simple categories which together account
for a total.
Checklists/Check Sheets – pre-formatted lists for noticing incidence, frequency, etc.
according to known useful criteria.
Control/Shewhart Charts – standard patterns of performance/time for a given process,
often in Run Chart format, which acts as a template to check conformance and
deviation.
Scatter Diagram/Scatterplot – a graph that plots points according to two variables,
which produces a useful visual indication of the relationship between the two variables.
6. How do you ensure smooth communications between staff and/or between staff
and personnel from a wide variety of agencies, customers and freight providers
(possibly from overseas)?
Electronic Data Interchange (EDI) – is an electronic communication system that provides
standards for exchanging data via any electronic means and can be defined as computer-
to-computer exchange of structured data for automatic processing. Two different
companies in two different countries, can electronically exchange documents (such as
purchase orders, invoices, shipping notices and many others). There may be one of
several or a combination of several interfaces such as:
Serial communication
Internet
Peer to Peer
Value added networks
The advantages include:
Reduced inventory costs
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Increases accuracy
Decreases errors
Enhance visibility
Improved operational efficiency
Increased ROI
Works very well with just in time (JIT) systems
7. Explain your understanding of Chain of Responsibility in relation to the operational
plan?
The days of ‘all care and no responsibility’ are over. With the new laws, everyone in the
supply chain (not just the driver) must take ‘reasonable steps’ to manage the causes of
heavy vehicle driver fatigue. You can be held legally accountable if your actions,
inactions or demands cause or contribute to road safety breaches.
Known major causes of fatigue such as dangerous work schedules and long truck queues
ensure the employees and customers are held accountable. You are required by law to
take reasonable steps to prevent your conduct from causing or contributing to a breach.
By law you are also prohibited from:
Making demands that you know or ought to know would cause a breach;
Entering into contracts that you know or ought to know would cause, encourage
or give an incentive for a breach;
Coercing, inducing or encouraging breaches; and
Passing on false or misleading information that could cause a breach.
8. Explain your understanding of multi-modal and inter-modal freight?
Multi-Model freight – is the use of several different types of transport modes to
complete the transport logistics activities. It can include the movement of passengers,
cargo and freight from one mode of transport to another, usually taking place at
terminals designed for a specific purpose.
Intermodal freight – is the use of containers or intermodal transport units (ITU) for
transporting goods and transferring them between multiple modes of transport (rail,
ship, air, road and or pipe) without the need to physically handle the goods while
changing transportation modes.
9. Explain RFID and its benefits and advantages?
Radio Frequency Identification (RFID) – is incorporated into a product for the purpose of
identification using radio waves. The RFID tags require a reading device and interface
computer to process the information. The RFID tags or transponders are an automatic
identification method that rely on remotely retrieving and storing data. It allows people
to more effectively and efficiently record tracking, monitoring, reporting and managing
products, documents and assets anywhere at any time.
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The RFID technology:
Reduces the manpower needed,
Saves time as a RFID can scan up to 1,000 boxes per second,
Has a high level of security and data cannot be hacked,
Communicates constantly and assists in contingency planning.
10. Explain your understanding of what 4PL means?
4PL is Fourth Party Logistics Providers or also known as ‘Lead Logistics Providers’, they
differ from 3PL’s (Third Party Logistics Providers) by:
Being a separate entity established as a joint venture or long-term contract
between a primary client and one or more partners;
They act as a single interface between the client and multiple logistics service
providers;
All of the clients supply chain aspects are managed by the 4PL organisation; and
Major third party logistics providers may possibly form a 4PL organisation within
its existing structure.
The 4PL has been originally defined as “A supply chain integrator that assembles and
manages the resources, capabilities, and technology of its own organisation with those
of complimentary service providers to deliver a comprehensive supply chain solution,”
but is no longer registered.
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Task 2: Mobilise Resources
Reviewthe table belowand,usingthe information,prepare areportthat identifiesthe resources
that wouldbe required tooperate awarehouse thathandledtheseliquorproductsandrequired
functionsassociatedwithtransportlogistics.
The detailsprovidedonthe followingpage indicatesome resource levels.Youcanalsoassume the
following:
1. The freightshipsfromoverseasinbulkcontainers(nopallets)
2. interchange atthe seaportisto road transport witha 10km journeytothe distribution
centre(DC)
3. The DC onlyoperatesbetween6am – 6pm
For yourreport youwill needtoconsider:
size of property
size of warehouse andsetup – free store/bondstore required/loadingdocks,parkingetc.
transportfleet- typesandmix
requiredMHE
rackingvs. floorstacking
containerquantity/palletsturnedover
use of crossdocking
communicationandinformationsystems(forexample who, when,whatreal time,EDI,
channels)
dangerousgoodsandalcohol (storage,segregation,transport,quarantine)
customsrequirementsforalcohol (forexample importing,bond,excise)
insurance (forexampleintransit,fleet,stock,facilities,MHE)
securityfactors(forexample on-site, off-sitewithpatrols,stockvalue,accesscontrol,
pilfering)
riskmanagementapplicable tosite andfunctions
outsourcingcomponentsof operationstomanage changesinresourcesavailable.E.g.staff,
equipment,oversupplyetc.
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Resource Level Details
Average Week Annualised
LiquorTotal LiquorTotal
$ Projected $1,674,750 $87,087,000
AvgCtn $ $29.00 $29.00
Cartons 57,750 3,003,000
Containersinbound 1265 ctn
Avg
46 2392
Ctn/PltInbound equivalent 61 61
Ctn/PltOutboundactual 70 70
PalletsReceivedequivalent 947 49,244
PalletsDispatched 825 42,900
Throughput(Ctn/Hrs) 28 28
Hours 2062.5 107250
Heads(FTE) 55 55 FTE: Full time
equivalent
Cost PerHr $38.15 $38.15
Labour Cost $78,685 $4,091,620
Labour CostPer Carton $1.37 $1.37
Overheads $20,660 $1,074,320
Total Cost $99,345 $5,165,940
Total CostPerCarton $1.72 $1.72
Total Costas % of $ Projected 5.94% 5.94%
DSOH 22 22 DSO
H:
Day stock onhand
SKU's 580 580 SKU: Stock keepingunit
PalletsReserve 2,975 2,975
Stores 70 70
AvgDeliveryFrequency 2 2
Orders/Wk 140 140
AvgCtns/Delivery 403 403
Pallets/DeliveryD/O 5.9 5.9
% of CAC Hotel Business 13% 13%
% of NewDistribution
Business
87% 87%
Stock Make Up: Beer Stock Make Up: Wine & Spirits
Height:215mm
Weight:275mm
Length:415mm
CubicSize:0.0251
Height:325mm
Weight:260mm
Length:325mm
Cubicsize 0.0275
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Additional Supporting Information
1TEU = 33.2m3
1322 Beeror 1207 Wine/Spirits
1FEU = 67.7 m3
2697 Beeror 2461 Wine /Spirits
1 containerperSKEL 22 palletspertruck (6 palletsintail lifttruck)
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RESOURCES NEEDED TO OPERATE
WAREHOUSE FOR IMPORT AND
DISTRIBUTION OF LIQUOR.
1 EXECUTIVESUMMARY
CA CityHotel andCA CityLogisticsboardmembershave decidedtoembarkona jointventure
importinganddistributingliquor.Bothboardshave recognizedthe value of establishinga3PL/4PL
jointventure,asthere are synergisticbenefits.The freightshipsinfromoverseasinbulkcontainers
(nopallets),soasufficientareawill needtobe purchasedtoaccommodate the unloadingand
stackingontoemptypallets,storage of emptypalletsandaBondedStorage Area.
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2 TABLEOF CONTENTS
1 Executive Summary 1
2 Table of Contents 2
3 Introduction 3
4 Findings 3
4.1 Size of Property 3
4.2 Size of Warehouse andSet-up 6
4.3 Transport FleetandEquipment 8
4.4 Warehouse Equipment 8
4.5 Licenses’andPermits 9
4.6 Insurance 9
4.7 Security 10
4.8 RiskManagement 10
4.9 Outsourcing 13
5 ConclusionsandRecommendations 13
LIST OF TABLES
Table 1: PropertyLayout 4
Table 2: Index forPropertyLayoutandWarehouse Layout 5
Table 3: Warehouse Layout 7
Table 4: RiskAssessmentPlan 11
Table 5: RiskMatrix 12
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3 INTRODUCTION
As OperationsManagerIhave beentaskedwithidentifyingthe resourcesthatwouldbe requiredto
operate a warehouse thatcan handle liquorproducts,the requiredfunctionsassociatedwith
transportand compliance withthe Departmentof ImmigrationandCustomsregulationsand
documentation.Underthe Findingsheadingthere isinformationonresourcesrequiredforthistask.
Researching,discussionswithstakeholdersandpreviousexperience have ledtothese findings.The
conclusionwill discusswhathasbeenachievedandthe significance of the findingsandthe
recommendationsachievable.
4 FINDINGS
The followingisalistof the resourcesrequiredtooperate awarehouse thathandlestheseliquor
products,the equipmentrequiredanda secure bondedstore area:
4.1 SIZE OF PROPERTY
The size of the propertyneededwill have tobe sufficientenoughtoaccommodate:
OfficesandAmenities
Warehouse
Containerunloadingarea
Emptypalletstorage
Emptycontainerstorage
Truck loadingarea
Employee carpark
Truck and trailerparking
Workshop
Fuelingstation
Electricforkliftchargingarea
See Table 1: PropertyLayout
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Table 2: Index for Property Layout and Warehouse Layout
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4.2 SIZE OF WAREHOUSE ANDSET-UP
The warehouse will needtobe set-upwiththe followingareas:
Stock Storage area
DamagedStock Storage
BondedStockStorage area
DamagedBondedStockStorage area
Revivals’area
Dispatcharea
Undercovercontainerunloadingarea
See Table 3: Warehouse Layout
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4.3 TRANSPORT FLEET AND EQUIPMENT
There will be aneedfora mixture of trucksand trailerstoensure the rightequipmentisavailable for
pick-upsanddeliveries.Theseinclude:
2 x 10ft rigidswithtuckaway tail-lifts
2 x 45ft tautlinertrailerswithgrocerygatesandstraightdeck
2 x palletjacksfor rigidtrucks
2 x skeletal trailers
1 x swinglifttrailers
6 x prime movers
Vehicle andtrailertrackingsystem
5 x containerramps
1 x containerframe forklift(forloading/unloadingbothfull/emptycontainers)
4.4 WAREHOUSE EQUIPMENT
Equipmentforthe warehouse tobe able torun efficientlyandsafelywill include:
Palletrackingforstockstorage (each rackingbay is2 pltswide x 3 pltshigh) at least200ft of
rackingneeded
SafetyEquipmente.g.safetybollards,paintedwalkways
Sufficientlighting
3 x diesel forklifts
2 x electricforklifts
2 x palletwrappingstations
Secure,fencedandlockedBondedStorage area
RFID system
Packagingmaterials
Productlabellingand identification
Safetysignsandequipment
Industrial extractorfansinwarehouse,tunnelandworkshop
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4.5 LICENSES’ AND PERMITS
There islicenses’andpermitsthatneedtobe obtainedfromthe appropriate authorities:
Warehouse licenseforstorage of Excise EquivalentGoods(EEGs)
PermittoBring or ImportGoods intoAustralia
Dangerousgoodspermit
4.6 INSURANCE
There are compulsoryinsurance needsthatneedtobe includedwithinthe insurance policies.The
compulsoryinsurance is:
WorkersCompensationinsurance
CTP (compulsorythirdparty)
Anyinsurance requiredbyDepartmentof ImmigrationandCustoms(BondedStore)
Afteridentifyingandevaluatingpossiblerisksandpreparationof ariskmanagementplan,thishas
helpedtodecide whichriskstoinsure against:
Fire and Flood
Businessinterruption
PublicLiability
Employees’Liability –thisincludesworkers’compensation,whichiscompulsoryforall
businessesemployingstaff
Burglary
ProductsLiability
Professionalindemnity
Electronicbreakdown
General property
Marine and transit
Motor fleetinsurance
Directors’andofficers’liability
Employmentpracticesliability
An insurance brokerwill be hiredtoprovide advice andtoputtogethera cost effective package.
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4.7 SECURITY
A numberof securitymeasureswill be putinplace bothinside the warehouse andwithinthe perimeter
of the property,these measuresare:
Securitycamerasstrategicallypositionedwithinthe warehouseandproperty
Secure,fencedandlockedBondedarea
Securitygate,gatehouse and2 securityguardstoman the gatehouse andpatrol the property
Exitsecuritygate withcamerasand intercomtogatehouse.
4.8 RISK MANAGEMENT
A riskassessmentwiththe followingtableswill helpassessthe risksassociatedwithacontingency.They
will help youdecide whetherariskisminorand acceptable,ormajor,requiringaresponse.
See Table 4: RiskAssessmentPlan
See Table 5: RiskMatrix
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Table 4: RISK ASSESSMENT PLAN
WHAT IS THE RISK:
NATURE OF THE RISK:
Political Commercial Relationships
Financial ManagementProcesses
Technological Legislative/RegulatoryNon-Compliance
Other: Natural Event/Actof God
StakeholdersName Department
Scope ofRisk Assessment: Nature of Scope:
Limit of Scope: Finance/Budget
Project OHS
Department RegulatoryCompliance
Other: Other:
Legislative Impact:
Duty of care Freedomof information
Companylaw Industrial relationslaw
Contract law Privacyand confidentially
Environmental law Local council laws
Goalsfor Risk Assessment: Specific, Measureable, Achievable, Relevant, Timely
Communicationand StakeholderManagementStrategy:
Stakeholder PreferredCommunicationMethod
Invitationto Participate Draft Wording:
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LIKELIHOOD
CONSEQUENCES
Catastrophic (5)
Deathor large
numberof serious
injuries,
environmental
disaster,hugecost
Major (4)
Seriousorextensive
injury,severe
environmental
damage,majorcost
Moderate (3)
Medical treatment
required, contained
environmental
impact,highcost
Minor (2)
Firstaid treatment
required,some
environmental
and/orfinancial
impact
Insignificant(1)
No injuries,lowfinancial
environmental impact
Almost certain(A)
Expectedtooccur in
mostcircumstances
HIGH HIGH HIGH MEDIUM LOW
Likely(B)
Will probablyoccur
inmost
circumstances
HIGH HIGH MEDIUM MEDIUM LOW
Possible (C)
Might possiblyoccur
at some time
HIGH MEDIUM MEDIUM LOW LOW
Unlikely(D)
Couldoccur at some
time there is
confidence itwill not
MEDIUM MEDIUM
LOW LOW LOW
Rare (E)
May occur onlyin
exceptional
circumstances
LOW LOW LOW LOW LOW
Risk Rating Score What shouldI do?
HIGH Actionplanrequired.Seniormanagement(technical endorsee)approval neededbeforecommencing.
MEDIUM Specificmonitoringorproceduresrequired.Management(electrical workerincharge) approval neededbeforecommencing.
LOW Manage throughroutine proceduresandagreedriskmitigationcontrolsbefore proceeding.
Table 5: Risk Matrix
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4.9 OUTSOURCING
There are a numberof companiesthatprovide resourcestomanage changesincomponentsof operation,these
include:
Labour hire
Warehouse equipmenthire
Truck and trailershorttermhire
Equipmentmaintenance
Computers
Office equipment
5 CONCLUSIONSANDRECOMMENDATIONS
In conclusionthisreportidentifiesalarge numberof resourcesrequiredtooperate awarehouse thathandlesliquor
productsand requiredfunctionsassociatedwithtransportlogistics.Some resourceswill needtobe researchedmore
priorto purchasing,specificresourcescan/maybe outsourcedforprofessionalmanagement.
The followingrecommendationsare made:
Size of Property – a real estate agentcan be commissionedtofindapropertythatis sufficientissize andhas
easyaccess
Size of Warehouse– buildingstobe alteredorbuiltcanbe outsourcedtoa buildingcontractor
TransportFleet and Equipment – outsource purchasingof fleetandequipmenttoa motorvehicle broker
withall detailsof whatequipmentisneeded
WarehouseEquipment –outsource all procurementof equipmentandinstallationtoawarehouse storage
systeminstallationcompany
Licenses and Permits – contact all appropriate agencies(governmentandpublic) toensure all licensesand
permitsare appliedforintime andproperly
Insurance– outsource all insurance requirementstoaninsurance brokertoensure all insurance needsare
metand the insurance brokercan puttogethera cost effectivepackage
Security – outsource securityrequirementstoa securityfirmforinstallationof requiredsecurityproducts
and securityguards
Outsourcing –can be a cost effective waytogetprofessionalstoperformtasksefficientlyandproperly.The
use of labourhire companiesforextrastaffingneeds,alsothe use of equipmentrental companiescan
provide equipmentandperformmaintenance onequipment.
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Task 3: Coordinate Multi-modal Transport Activities
Task 3A: Explainyourunderstandingof interchangefunctions.Create eitherapresentationora reportthat
examinestwodifferentinterchange modes(e.g.rail/road,road/sea,air/road,pipe/rail etc.) intermsof:
1) whattypesof facilities,personnel andequipmentisrequiredandhow mayit be readied?
2) whatsecuritymeasureswouldbe requiredpriorduringandafterthe interchange process
3) SOP(s) requiredforloading/unloadingprocesses
4) Examplesof documentation usedinthe interchangeprocess
Understanding of interchangefunctions:
It isthe movementof passengers,cargoandfreightfromone mode of transportto another,commonlytakingplace
at a terminal specificallydesignedforsuchapurpose allowingrapidprocessingandcompletionof applicable
documentation.
Intermodal freighthandlingisasolutiontothe challenge of transferringgoodsbetweenmodesof transportand
involvesthe use of containersorintermodaltransportunits(ITU) totransportgoodsand transferringthembetween
multiple modesof transport(rail,ship,air,roadandor pipe) withouthandlingthe physicalgoodswhenchanging
modes.
Rail/Road InterchangePresentation:
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CONTENT
Types of facilities, personnel and equipment
required.
Security measures required prior, during
and after the interchange process.
SOP(s) required for loading/unloading
processes.
Examples of documentation required in the
interchange process.
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Facilities required
• Interchange located within
rail depot with access for
container trucks to enter
and exit
• Train tracks
• Driveway for truck routes
• Security shedand gates at
entry/exit points
• Storage room for containers
• Operations office
• Sufficient clear space for container fork movement and truck
movement
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Personnel required
• Security staff
• Container forklift
operators
• Rail staff
• Supervisors
• Interchange
management
• Truck drivers
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Equipment required
• Container trains
• Shunter engines
• Train container carriages
• Container gantry lifts
• Container forklifts
• Container trucks and
trailers
• Communication
equipment
• PPE and hazard control
systems
• Sufficient restraintstraps, lashes, belts and ties
• Specialisedequipment (e.g. refrigeration pads, fumigation areas etc.)
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Security Prior Interchange
• Check all security arrangements are in place before the arrival of goods
(this could include customs clearance and AQIS quarantine requirements
for inspection)
• Certification of Warehousing facilities
and Transit Operations
• Performing security checks on all
personnel
• Provide control access points, security
personnel and alarmed storage areas
monitored by CCTV
• Issue all staff with MSIC card
• Run a Security Management Program
which includes:
Risk Assessment
Management system elements
Plan-do-check-act cycle (PDCA)
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Security During Interchange
• Check descriptionand quantity of goods against accompanying
manifest and paperwork matches the actual goods
• Check packaging is not damaged or
tampered with at each stage of handling
• Duties to be performed in accordance with
Relevant laws, codes of practice and
workplace policies and procedures (SOPs)
• Complete all paperwork correctly
• All personnel security kept up to date
• Security seals attached and recorded
correctly
• Use of RFID (Radio Frequency Identification)
technology
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Security After Interchange
• Correct delivery information
recorded on
consignment/delivery note
• Correct recording and filing of
documents
• Use of freight tracking system
• Records, reports and
recommendations for
improvement are managed
withinthe workplace
information systems and
processes
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Loading/Unloading SOPs required
• Work Health and Safety laws
Dangerousgoodsregulations
Manualhandling
PPE required
Use of plantand equipment
Site inductions
Site emergency and evacuation
procedures
• Site EnvironmentalPolicy
• Safe Working Limits (SWL)
• Working Load Limits (WLL)
• Load distributionrequirements
• Load restraintrequirements
• Packaging and labelling requirements
• Customspaperwork
• AQIS regulations
• Manufacturer’sinstructions
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Interchange Document examples
Shippers exportdeclaration
• Certificate of origin or consular documentation
• Consignmentnote
• Letter of credit (if required)
• Packing list/note
• Customsdocumentation
• Import/exportlicences
• Commercialinvoice
• Quarantinedocumentation
• DangerousGoodsTransportation Form
• AQIS inspection certificates
• Fumigation certificate
• Container lists
• Letters of instruction
• Weight documents
• Quality reports
• Phytosanitary certificates
• Manifests
• Insurancecertificates
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Air/Road InterchangePresentation:
AIR/ROAD
INTERCHANGE
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TYPES OF FACILITIES, PERSONNEL AND
EQUIPMENT REQUIRED.
SECURITY MEASURES REQUIRED PRIOR, DURING
AND AFTER THE INTERCHANGE PROCESS.
SOP(S) REQUIRED FOR LOADING/UNLOADING
PROCESSES.
EXAMPLES OF DOCUMENTATION REQUIRED IN
THE INTERCHANGE PROCESS.
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Interchange located
within airport with easy
access for trucks to
enter and exit
Freight sorting area
Truck loading area
Security shed and gates
at entry/exit points
Operations office
Sufficient clear space
for plane, cargo tugs,
forklifts and truck
movement
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Aircraft containers
Conveyor system
Container tugs
Forklifts
Communication
equipment
PPE and hazard control
systems
Sufficient restraint
straps, lashes, belts and
ties
Specialised equipment
(e.g. fumigation area,
bonded store storage
area)
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SECURITY PRIOR INTERCHANGE
Check all security arrangements are in place before the arrival of goods (this could include
customs clearance and AQIS quarantine requirements for inspection
Certification of Warehousing facilities and Transit Operations
Performing security checks on all personnel
Provide control access points, security personnel and alarmed storage areas monitored by
CCTV
Issue all staff with MSIC card
Run a Security Management Programwhich includes:
Risk Assessment
Management system elements
Plan-do-check-act cycle (PDCA)
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SECURITY DURING
INTERCHANGE
Check description and quantity of
goods against accompanying
manifests and paperwork matches
the actual goods
Check packaging is not damaged
or tampered with at each stage of
handling
Duties to be performed in
accordance with relevant laws,
codes of practice and workplace
policies and procedures (SOPs)
Complete all paperwork correctly
All personnel security checks kept
up to date
Security seals attached and
recorded correctly
Use of RFID (Radio Frequency
Identification) technology
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SECURITY AFTER INTERCHANGE
Correct delivery information recorded on consignment/delivery
note
Correct recording and filing of documents
Use of freight tracking system
Records, reports and recommendations for improvement are
managed within the workplace information systems and processes
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LOADING/UNLOADING SOPs REQUIRED
Work Health and Safety laws
Dangerous goods regulations
Manual handling
PPE required
Use of plant and equipment
Site inductions
Site emergency and evacuation
procedures
Site Environmental Policy
Safe Working Limits (SWL)
Working Load Limits (WLL)
Load distribution requirements
Load restraint requirements
Customs paperwork
AQIS regulations
Manufacturer’s instructions
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Task 3B: Provide a completedandpersonallysignedexample of one documentof yourchoice.
It can be a type filledformbutitmustbare your signature asthe personcompletingthe form.For
example:
completedconsignmentnote
completedairwaybill
completed incidentreport
completedcommercialinvoice for export/ import
completedcustomsdeclarationforimport/export;
Or any otherapplicable documentusedinTransportandLogistics
Appendix 1inthe LearnerGuide/eBookprovidessome examplesof these documents,andotherscanbe found
online.
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Task 4: Monitor Consignment(s) Tracking
Analyse dataexchange requirementsforinternational trade andprepare eitherareportor a
presentationonsystemrequirements,hardware andinfrastructurethatwouldbe requiredto
implementafreightmanagementsystemcapable of providingreal-time freightmonitoringservices.
Ensure youinclude detailsonvariouscapabilitiesincluding:
Mobile data
EDI
Barcodes
RFID
Orderprocessing
Advancedplanningandscheduling
Networkstrategy
WMS
Inventorymanagementsystems
Fleetmanagement
Computerisedrouting
International trade managementsystems
Supplychainmanagementsystems
Electronicpointof sale (EPOS)
The system’spotential capabilitytooperate ademanddrivenEDIsupplychainmustalsobe included.
MONITOR CONSIGNMENT(s) TRACKING REPORT
MonitoringConsignment(s) Trackingplaysaveryimportantrole inthe transportlogisticsprocess,
monitoringaconsignmentthroughthe transportlogisticschainwill helpdetermine if the consignment
will be deliveredontime,if adelayisdetectedearlyitprovides sufficienttime totake appropriate
actionand resolutionof the situationbefore becomingamajorproblem.Italsoensurescorrect
informationwhendealingwithcustomerenquiriesregardingthe locationof theirgoodsandfroma
securityperspective monitoringthe conditionof the consignmentthroughall of the transportlogistics
process.
FreightManagementSoftware
The FreightManagementSoftware playsabigpart inthe data exchange forinternational trade.The
documentationcaneitherbe completedelectronicallyormanually,completingthe paperwork
electronicallyallowsthe documentstobe printedwithmultiplecopieswhichmaybe neededforimport
or exportshipment.Printeddocumentsaidthe legibilityof the documentsensuringthatthe documents
are easyto understandsavingtime inpotential delays.
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The FMS providesthe carriersspecificconsignmentnotes,these technicallyare the ‘contract’tocarry
itemsor provide aservice.The FMScan provide the customerwithlimitedaccesstotheirsoftware
givingthe customercontrol overproducing,printingandmaintainingdocumentation.
EDI (Electronic DataInterchange) isanelectroniccommunicationsystemthatprovidesstandardsfor
exchangingdataviaany electronicmeansandcanbe definedascomputer-to-computerexchange of
structureddata forautomaticprocessing,meaningthatbyadheringtothe same standard,twodifferent
companies,evenintwodifferentcountriescanelectronicallyexchangedocuments.The advantagesof
usingEDI include:
o Reducedinventorycosts
o Increasedaccuracy
o Decreaseserrors
o Enhance visibility
o Improvedoperationalefficiency
o IncreasedROI
o Works verywell withjustintime (JIT) systems
CustomerEDI (ElectronicData Interchange) interfacing
The customeronline portal within the CA CityWebsiteallowscustomersaccesstolimitedfeatures
makingitconvenientandeasyforcustomersto:
o Enter consignmentnotes
o Bookjobs
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o Track and trace consignments
o Searchfor Proof of Delivery(P.O.D.)
Radio Frequency Identification (RFID)
IncorporatingbarcodesorRFID tags intoproductand the palletrackingsysteminthe warehouse
providesatime efficientprocessforidentifyingproducts,tracking,monitoring,reportingandmanaging
products,documents,assetsandpeople movingbetweenlocationsanywhere atanytime bythe RFID
reader.The use of RFIDtechnologyiscosteffective bytrackingitemsthroughthe transportlogistics
processand monitoringthe amountof goodswithinthe supplychainreducingthe capital requiredfor
distributionandwarehousingstorage costs andby reducingthe manpowerrequiredreducesmanpower
costs.The RFID technologyis extremelytime effective asscanningitemsisdone ata rapidpace,
scanningupto 1,000 boxespersecondreducingthe manpowerneededandthe technology
communicatesconstantlykeepingrecordsupdatedinstantlyandassistingincontingencyplansif
needed.
Global Positioning System
The GPS providesthe exactpositonof anyconsignmentinstantlyusingsophisticatedGPSmaps. The GPS
allowsforeffective route planningof deliveryjobsbyprovidingthe quickestroute available,the closest
available trucktothe destination.Itprovidesanup-to-date positionof anyconsignmentonthe vehicle
providinginstantinformationforanycustomerenquiries.Inthe eventof avehicle breakdownthe GPS
will provide the exactlocationandensure the closestservice personnel canbe dispatchedtorepairthe
vehicle.
The advantagesof integratingthe FreightManagementSoftware tomonitorconsignment(s) tracking
throughthe entire transportlogisticsprocessisobvious.These advantagesinclude,butnotlimitedto:
o Accurate and timelyinformation
o Easilydetectable problemsorissues
o Reducescosts
o Reducestime wasted
o Ensure customersatisfaction
o Increased accuracy
o Improvementof operational efficiency
Task 5: ImplementContingencyManagementStrategy
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As operationsmanageryouhave justreceivedatelephone call fromadeliverydriver.The driverinforms
youthat he hasjust reachedthe customer’sdepot where theymustunloadgoods,anddiscoveredthat
there hasbeena large spillage of alcohol ontogroceriespalletswhichhascauseddamage (spoilage) to
the groceriesaswell asthe lossof part of the alcohol shipment.
Furtherquestioningbyyouof the driverrevealsthe followinginformation:
the loadwas on a rigidvehicle withaharshsuspension
the alcohol wasstackedabove the groceries
the vehicle wastakinganunauthorisedroute becauseof adiversiondue toroadworks
the driverwasspeedingtomake uptime lostdue to the diversion
the spillage hasnotbeencontainedwithinthe vehicleandiscurrentlyspillingontothe hot
exhaustsystem.
You are requiredtoidentifyandmanage the transportlogisticsincidentinaccordance withyour
understandingof contingencymanagementstrategy,documentingthe actionstaken.Youshould
describe:
The processesandproceduresyouwoulduse
Issuesthatmay be associatedwiththe accident
How youhave assessedthe accidentandthe prioritiesandresponsesrequired
Necessarycommunications,documentationandactionsthatshouldbe taken.
Feel free touse diagrams,images,examplelogsorotherresourcesyoudeveloptoanswerthisquestion,
such as example policies,SOP(s) orformsinthisassessmentproject.
Consultingthe contingencyplandocumentationforguidance wouldbe the firstproceduretofollow.The
contingencyplandocumentsshouldinclude:
o Establishedriskmanagementprocess
o Establishedriskcategories
o An assessmentof the likelihoodandconsequences of risksoccurring
o An evaluationprocesstoprioritise whichriskstorespondtofirst
o Establishedriskactionplans
o Riskreviewproceduresdocumentedinariskregister
o Contingencymanagementplansshouldalsobe includedinthese documents.
These documentsshouldprovide advice onprocedurestofollow withthe incident.
Afterspeakingwiththe driverandreviewingthe informationprovidedbythe driver,the followingsteps
have beenimplementedanddiscussedwiththe driver.These stepsare tobe performedbythe driverat
the incidentlocation:
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o Advise the customerof the incidentandinformthemthat hismanagerhasbeencontacted
and has implementedacontingencyplan,andwill be contactinghimshortlywithdetailsof
the contingencyplan.
o Sort the goodsintodamagedand non-damagedstock
o Recordall undamagedgoodsthat have beendeliveredtothe customer
o Recordall damagedgoodsthat are to be returnedtothe distributioncentre
o Informthe distributioncentre of all returningdamagedgoodssoreplacementgoodscanbe
pickedanddeliveredtothe customerassoonas possible
o Cleanall areasaffectedbythe spillage thisincludesthe deckof truckand anywhere the spill
has affectedandalsothe surroundingaffectedgroundarea
o Stack securelyall damagedgoodsontopalletsandsecure palletstoreturntodistribution
centre
o Damagedstock palletstobe evaluatedandstoredinthe damagedstockareaof the
warehouse until the insurance claimissettled
o Upon the truck returningtodepotitmust be thoroughlywashedensuringall tracesof the
spill have beenremoved
o Driverto ensure all paperworkregardingthe deliveryistobe handedtothe supervisor
handlingthe incident
o Driverto fill outanIncidentReportFormdetailingthe informationregardingthe incident
In regardsto the transportlogisticsincidentandafterreviewingthe informationreceivedfromthe
driverthe followingstepsshouldbe performedbythe manager/supervisorhandlingthe incident:
o Contact the customerandensure the customerissatisfiedwiththe contingencyplan
providedandinformcustomerof the new deliverytime of the replacementgoods
o Performriskanalysisprocedurestoassessrisksinvolvedwiththe incident
o Reviewloadingprocedurestoensure procedure isup-to-date andeasytounderstand
o Investigate whythe alcohol palletswere notloadedcorrectly andasperloadingprocedure
instructions
o Implementappropriate actionstobe takentoremedyincorrectloadingpracticese.g.
ensuringstaff understandandperformcorrectloadingprocedures,provide extrastaff
trainingif needed,supplycorrect/special palletpackaging
o Performinspectionontrucksuspension,replace suspensionif neededorallocate another
truck to the run
o Implementpolicyandprocedurestoensure driversdonotspeed,foranyreason,tomake
up time
o Advise all managers,supervisors,operationsstaff,driversandrelevantstakeholdersof new
policiesandprocedures
o Investigate alcoholpalletpackagingandimplementextrapackagingif needed
o Prepare all documentationregardingincidentcorrectlyandrecordall investigationsand
findings
o Prepare insurance claimformsandlodge completedforms.
