Presenting a Logistics Process

Achim and his colleagues are presenting the company’s new logistics process to the chairman and the management board of the American subsidiary in Chicago.

Achim – Good morning everyone. Let me first explain a little bit about our department.
The department head is responsible for all issues relating to the logistic process. He reports directly to the branch manager.
The department has 10 employees. It is their job to carry out the day to day logistics operation.
We have a very modern racking system and all of our products have bar codes.
Our pickers just have to enter the bar code in to the computer to locate the exact level, row and place of a particular item. A number of our employees can operate forklift trucks so the high racking system is a perfect solution to utilize our space effectively.
We have our own fleet of trucks which are loaded and unloaded in the cross docking area. The cross docking area covers an area of 2000 square meters and is 9 meters high. It can handle a volume of 3000 packages per day. Our trucks carry out national and international overland deliveries. In some cases the goods are brought to a distribution center first, repacked and loaded on to other trucks together with other goods for similar destinations.
We also use the services of a forwarding agency for special projects mainly of which involve air, sea or rail freight transport.
Stefan will now take over and present the shipment process.

Stefan – Thank you, Achim.
We make sure that all of our goods arrive at the correct destinations and in perfect condition.
We do this by firstly making sure that all shipments have a consignee and a destination address stamped on the relevant crate. Also, the sender name and address must be attached.
All deliveries contain a packing list which must be signed by the consignee on arrival of the goods.
Each crate also has a label with a bar code which is scanned at each point of a journey so the whereabouts of the products can be tracked at all times during its transportation.
The weight of each crate is also noted before it leaves the depot and is also weighed on arrival at its destination.
Sylvia will now tell you a little more about our sea, air and rail freight options.

Sylvia – Thanks, Stefan.
Yes, as Achim said earlier, we also use the services of a forwarding agency for overseas deliveries.
For air freight, our forwarding agency picks up the goods here and takes them directly to an air freight terminal at the airport where they are stored in a secure warehousing unit. Most of the transport is carried out with cargo planes but some are also sent with normal passenger planes. The cargo handling fee is higher in these cases so we try to avoid that option if possible.
Sea freight is also an option when the deliveries are not very urgent. We prefer this mode of transport because we work together with a very reliable shipping company and the main port is not too far away from out depot so transport costs to the port of loading are kept low. Our goods are also FOB which means our liability ends the moment the goods arrive on the quay side.
Very heavy goods for inland destinations are transported by rail. We have a very good rail link to all of our customers so rail freight is also a mode of transport which we use quite frequently.
Are there any questions at this point?

(Question from the audience)
Yes, could you tell me how you handle loading and unloading in the cross docking area?
Sylvia – Sure. We use an underground chain conveyor. That speeds the process up considerably. When the goods arrive at their loading bay we use a hand pallet transporter to load them on to the lorry. All of our lorries have a tail lift.
(Another question from the audience)
You mentioned earlier that you use distribution centers for your overland transport. Could you tell me how the reloading process takes place?
Sylvia – No problem. We use swap bodies and swap body trailers which is a very efficient process.
Any more questions?
(Another question from the audience)
And what other types of trailers do you use?
Sylvia – We also use semi trailers with open top containers, insulated and flat bed containers.
Sylvia – OK, let me now pass you on to my colleague Jacques who will describe some safety and handling processes.

Jacques – Thank you Sylvia.
Good morning. We pay a lot of attention to safety issues. Firstly all of our dangerous goods such as flammable, corrosive or explosive items are transported in a cooled container and kept away from heat. In addition, our employees all wear suitable safety clothing such as gloves and protective glasses when handling such goods and there is always a first aid box within 100 meters of every loading bay. Fragile goods are strapped in tightly and the crates containing such goods have warnings written on them indicating the presence of such goods. The crates or boxes also have “handle with care” instructions.

Question from the audience
Could you tell us a little about the delivery process?
Jacques – Sure. Let me start at the beginning. When the goods are ready to be dispatched they are taken to the logistics department. An employee prints out the relevant advice of dispatch which he then scans in to a computer. On the basis of the information stored in the computer for the product in question, a departure date and estimated time of arrival are calculated. Once the goods arrive at their destination the driver is given a receipt for the goods by the consignee and the goods are released.
Question from the audience
Are the goods insured during transport?
Jacques – yes they are. Damaged goods are dealt with by our insurance broker. He mandates an assessor who assesses the extent of the damage who then completes a damage record. Proof of value of the goods in question, are based on the shipping invoice and any compensation claims are dealt with quickly.
Now Bernd will explain about the invoicing process. Over to you Bernd.

Bernd – Thanks Jacques.
An invoice is sent to the consignee as soon as we have received notification of delivery. The customer number and invoice number must both be noted on the invoice as well as the sender, the consignee, the items bought and the total amount. In addition, any extra charges related to weight and any other tolls must be shown. The VAT amount and the company’s tax number must be shown separately.

Question from the audience
Can you tell us about the packaging process?
Jacques – Yes, Achim could you help me out on this question?

Achim – Sure. We have a variety of packaging options depending on the goods being transported. We usually transport all goods in crates, on pallets or pallet cages. We also have barrels and drums for transporting liquids. All dry goods are wrapped in foil and secured with a band. The amount of packaging influences the cost of transport for the goods in question. Fragile goods are also wrapped in foam.
Stefan will now present our warehousing process.

Stefan – We have invested in a high bay racking warehouse. It has 10 different storage areas and all goods are picked based on a first-in first-out method which simplifies the inventory management process. The aisles are wide enough so that a fork lift truck can move between them quickly and safely. Pickers receive a picking list with bar codes. The items are scanned and removed from the shelf. If particular items are not in stock the picker can enter the bar code in to a scanner and order the items from the picking station.

Chairman of the USA company – Thank you very much for the very informative presentation. You have convinced us that your new logistics process is very efficient and I think we will have to seriously think about investing in it.
Achim – You’re welcome.