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Thanks to all who sent in questions since our last publication. I hope you will find my answers useful.
What is the difference between logistics and transport? [Jacqueline Sawyer, Kumasi Ghana]
Larry: Logistics: Logistics is referred as the procedure of managing goods, resources and information from the source to the consumers in a manner that fits the requirements of both parties.
Transportation: Transport is the movement of the goods from one point to the other. It is considered as part of logistics.
Logistics is broader than transportation. While transportation focuses on the ‘movement’ of goods from one place to the other, logistics refers to the whole ‘flow’ management which includes not only transportation, but also storage, handling, inventory, packaging – in some sense, and many other things.
What is the role of a logistician? [Pretty Joy, Surulere Lagos]
Larry: The main responsibilities of a logistician include but not limited to:
- Manage the supply chain
- Transportation and storage of material
- Transportation management
These roles can be expanded or contracted, depending on the size and operations of the organizations.
I would like to know what is bonded warehouse. [Joy, Port Harcourt]
Larry: Simply, a bonded warehouse is a dedicated portion of a facility where imported goods are stored before the customs duties or taxes are being paid. The warehouse is usually a secured area in which dutiable goods may be stored, processed, or undergo manufacturing operations without payment of duty. It may be managed, supervised or controlled by customs or by private enterprise for the retention of the imported goods until the duty owed is paid. When managed by a private enterprise a customs bond must be produced.
What are the major transportation issues in warehousing? [Haruna, Minna Nigeria]
Larry: The major transport issues in warehousing are
- Costs – Transportation costs that can impact a warehouse include maintenance and insurance costs for the facility and equipment, the cost of warehouse labour needed to receive and handle shipments, and the rising cost of fuel.
- Delays – Inefficient scheduling of shipments in and out of the warehouse due to transport delay can result in costly bottlenecks
- Tracking and communications – When communication with trucking is poor, for example, it’s difficult for a warehouse manager to schedule shipments accurately
- Warehouse Safety – Warehouse workers who load and unload truck shipments are at constant risk of injury.
I have heard so much about the term deadweight tonnage, could you explain it please? [Cloe, Manchester]
Larry: Deadweight tonnage is a measure of how much the total weight of cargo, stores, etc. which a ship carries or can carry. It is the difference between the laden and unladen weight of the ship. In other words, it is the weight of everything that ship carries except the ship itself.
Explain what is cross docking? [Ade, Jos Nigeria]
Larry: Cross docking is a process of unloading materials from an incoming semi-truck and loading directly into out-bounds trucks or trailers. It reduces handling costs, operating costs and the storage of inventory.
What is SKU number? [Fumilayo, Ikeja Lagos]
Larry: In inventory management, stock keeping unit (SKU) is a product and service identification code for a product or store, often shown as a machine-readable bar code that helps track the item for inventory. It is simply a unique code used to identify particular line items although it does not need to be assigned to physical products in inventory.
Could you kindly explain what is meant by chargeback in logistics? [Eugene Ibe, Port Harcourt]
Larry: A Chargeback is a form of customer protection that occurs when any shipment that does not meet the customer’s categorical terms and conditions, a financial penalty is charged against the supplier by the customer. This charge is referred as charge back. For example, shortages, lack of proper packaging or labeling.
Commentsor reactions on the issues above should be made below. All questions and comments must be related to logistics and supply-chain to be eligible for consideration and publication. New questions and answers will be published next Tuesday. Keep sending your questions.
Copyright – Moov Africa 2017. Comments on any published question or answer should be made below and will be well appreciated. Readers’ comments and reactions may be published if they meet our editorial policy. Readers’ comments and reactions do not represent the opinion of the publishers, Moov Nigeria and Moov Africa. All questions and contributions should be sent to: firstname.lastname@example.org or email@example.com