A Practical Guide to Logistics: An introduction to transport, warehousing, trade and distribution
Jerry Rudd
Contents
Figures x
Tables xv
Acknowledgements xvi
01 Introduction 1
So, what is ‘logistics’? 1
02 First steps – strategic decisions: Should we operate our own
logistics or contract out? 3
Dedicated or shared user? 6
Charging mechanisms: Open or closed book? 9
The 4PL option 13
Conclusion 14
03 Storage: The physical infrastructure 15
How many storage warehouses do I need? 15
Storage options: Block storage, racking and shelving 19
Racking: Some words of warning 20
Standard wide aisle racking 22
Narrow and very narrow aisle racking 23
Drive-in, push-back, pallet flow and double-deep racking 24
Semi-automated racking 26
Specialized racking and accessories 29
Other considerations for racking installations 30
Smaller items: Shelving 32
Mezzanine floors 34
How big does my warehouse need to be? 35
Temporary warehousing 38
Conclusion 38
04 Warehouse handling equipment 39
Vehicle loading and unloading 39
Floor loading or loading dock? 41
What sort of forklifts do I need? 48
Conclusion 66
05 Warehouse operations 67
Does the process start with receiving? 67
Slot times and pre-advice 70
Yard management 72
Receiving and checking 74
Put-away 76
Stocktaking and perpetual inventory 78
Picking 81
Picking methodologies 82
Picking receptacles 87
Dispatch 88
Conclusion 89
06 Warehouse management systems 91
Interfaces 92
Basic functionality 93
Advanced functionality 94
Automated data collection 102
Choosing a system that will work well in practice 109
Cost 110
Conclusion 111
07 Packaging and customer requirements 113
Packaging: General principles 113
EU packaging waste regulations 115
Primary packaging 116
Corrugated board 117
Voidfill 120
Other expendable packaging 122
Pallets 125
Securing cartons to pallets 127
Pallet inverters 131
Durable packaging 132
Pallet and box hire pools 135
Labelling 135
Customer requirements 137
Conclusion 140
08 Road vehicles 141
Two-wheeled transport 141
Panel vans 142
Pick-ups 152
Larger vehicles 153
Body types 162
Loading and unloading aids 174
Conclusion 177
09 Abnormal indivisible loads 179
AILs under Construction and Use Regulations 180
Special Types General Order 180
10 Vehicle operations: Costs and their reduction 185
Overall costs 185
Residual value and depreciation 188
Finance 188
Road tax 192
Drivers’ pay 192
Establishment, overheads and profit allowance 194
Fuel purchase 194
Fuel economy 196
Tyres 198
Maintenance 199
Driving standards and accident prevention 202
Other costs 205
Conclusion 207
11 Legal requirements and compliance 209
Driver licensing 210
Operator’s or ‘O’ licensing 212
Drivers’ hours 216
Tachographs 218
Compliance monitoring 219
Laws in non-UK countries 222
Further reading 223
Conclusion 223
12 Vehicle routing and networks 225
Planning delivery bookings 225
Full load and single drop operations 226
Part loads 226
Return loads or backhaul 227
Night operations and double-shifting 229
Multi-drop deliveries 230
Network distribution 231
Multi-drop vehicle routing 233
Conclusion 237
13 Railfreight and other inland transport 239
Railfreight 240
Access to railfreight services 249
Inland waterways 252
Fixed installations 258
Conclusion 259
14 Seafreight and airfreight 261
Roll-on/roll-off 261
Container shipping 264
General cargo 273
Inducement 274
Ship chartering 275
Airfreight 278
How airfreight works 280
Access to scheduled airfreight services 281
Charter aircraft 283
Access to air charter services 286
On-board couriers 286
Drones 287
Sea–air services 287
Conclusion 288
15 Trading terms and insurance 289
IncotermsR – who pays for which parts of the freight cost? 289
Payment and letters of credit 291
The CMR convention 293
Other terms and conditions 294
Insurance 295
Conclusion 297
16 Customs formalities and imports 299
Systems: CHIEF, CDS and CPC codes 299
Customs Notices 300
Economic Operator Registration Identifier 300
HS codes: What is the rate of duty on this item? 301
Import clearance: How it works 302
Methods of duty payment 304
Community transit, common transit and TIR 305
Customs warehouses: How to delay payment until goods are used 306
Inward and outward processing relief 306
Exemption from duty 307
Conclusion 309
17 Export documentation 311
Chambers of commerce 311
Commercial invoices 312
Certificates of origin 313
Other forms certifying origin 316
Prohibited goods 320
Specific product regulations 320
Conclusion 321
18 Miscellaneous supply chain issues 323
Inventory planning 323
Setting an inventory target 324
Demand planning and order scheduling 326
Inventory reduction 328
Advanced inventory reduction strategies 331
Reverse logistics 333
Cost to serve different customers 335
Summary 336
Conclusion 337
Afterword 339
References 341
Appendix 1: Providers of products and services 349
Appendix 2: Brexit 355
Index 357