Material Storage SystemsFor space efficiency and storage density

Storage Principles

Benefits of Scientific Storage

Storage Methods

Storage Methods Block StorageAdvantagesSimplest systemNo investmentStacking on platform or floorWide variety of products can be storedDisadvantagesLimitation on stack heightLoading / unloading problem

Storage Methods

Pallet Storage

Space Saving Systems:Mobile Storage Systems

Cantilever Rack

AS/RS Machines

Load UnitizationThe unit load is constructed by bringing together large number of individual items of identical configuration, so as to make a large load, which ensures convenience during storage, handling and transportation Pallet storage

Material Handling SystemsFor exploiting productivity potential in logistics

Material Handling Principles

Material Handling Systems

Selection Criteria: Material Handling Systems

Material HandlingManual TrolleyVersatileFor smaller loads For short distance

Material Handling

Material Handling

Counterbalanced Lift Trucks

Straddle Reach Trucks

Turret Trucks

Material Handling

Advanced Material Handling Systems

PackagingFor Safe Product Handling, Movement and Storage

Consumer vs. Logistical Packaging

Logistical Packaging RequirementProduct EnvironmentType Dimensions - vacuum packedCharacteristicsCost ImplicationsDesignMaterialReusability

Logistical Packaging MaterialsWoodAdvantagesReadily available ,Easy to make ,Can be repaired in-house,Takes loads upto 2000 kgsDisadvantages Dimensional variation ,Nailing may cause split in planks ,Prone to damage

Logistical Packaging MaterialsMetalsAdvantagesMost durable ,Very strong,High repairability,Designed for high capacity loads,Excellent for liquid packaging

Disadvantages More expensive

Logistical Packaging

Export PackagingContents of packageType of goodsName of manufacturerName of consignerName of consigneeCountry of origins

Containerization - Benefits

Container Types

Transportation ManagementThe backbone of logistics

Principles

Economy of scale TL and LTLEconomy of distance- tapering principleDensityStowabilityMarket factors return loads

Tapering Principle DistanceCOST

Transportation Modes

Road Transportation

Rail Transportation

Air Transport

Water Transportation (Sea & Inland)

Nature of Traffic versus Mode of Transportation

ModeNature of TrafficRailExtracting industries, heavy manufacturing, agricultural commoditiesHighwayMedium and light manufacturing, distribution between wholesalers and retailers.WaterMining and basic bulk commodities, chemicals, cement, agro-based products.PipelinePetroleum, gases, slurry.AirEmergency, perishables, limited marketing period, high value premium products.

Cost Structure for Each Mode of Transportation

ModeFixed CostVariable CostRailHigh- equipment terminals, tracks etc.LowHighwayLow-highways provided by public fundsMedium- fuel, maintenance.WaterMedium- ships and equipmentLow-capability to transport large amount of tonnage.PipelineHighest-rights-of-way, construction, control stations, pumping capacity. Lowest-no labour cost of any significance.AirLow-aircraft and cargo handling system.High-fuel, labour and maintenance.

Transport Mode Selection Criteria

TranshipmentOffloading from one ship and loading it on another.

Why ?

All services do not cover all ports in the world.

2. Ship size handling capacity at ports.

3. Political considerations.

Container Shipping