Logistics Operations and Supply Chain Management
Logistics Operators and Service Models (1PL-5PL)
- 1PL (In-House Logistics): Internal management of transport and storage.
- 2PL (Asset-Based Carriers): Providers that own the transport assets.
- 3PL (Logistics Service Providers): Outsourced logistics services.
- 4PL (Lead Logistics Providers & Consultants): Managers of the entire supply chain.
- 5PL (Logistics Network Management Consultancies): Strategic management of logistics networks.
Seaport Infrastructure and Terminal Operations
- Anchorage area: The outermost area of the port.
- Docks and berthing lines: Places where the ship moors next to each terminal for loading and unloading.
- Terminals and service areas: Areas where loading, unloading, inspection, preparation, storage, grouping, and separation of cargoes take place. These include container terminals, general or break-bulk cargo terminals, Ro-Ro traffic terminals, and bulk terminals.
Container Shipping Standards: FCL, LCL, TEU, and FEU
- 1. Full Container Loads (FCL): Commodity not manipulated.
- 2. Less than Container Load (LCL): Commodity manipulated at origin or destination.
- 3. Twenty-foot Equivalent Unit (TEU): A unit equivalent to a 20-foot container, approximately 6.1 meters long.
- 4. Forty-foot Equivalent Unit (FEU): A 40-foot container, approximately 12.2 meters long.
Supply Chain and Business Logistics Fundamentals
The Supply Chain is the full, overall network involved in getting a product from raw materials to the final customer. Business Logistics is the specific activity within that chain that focuses on planning, controlling, and executing the efficient flow and storage of goods. Logistics covers day-to-day operations like managing the warehouse and transportation, ensuring products are delivered correctly and on time to satisfy customer demand.
Historical Origins and Definition of Logistics
Logistics is a set of activities, techniques, and resources related to the flow of materials, from the origin of raw materials to the supply of finished products to end consumers. The word logistics is a term of military origin; in its first definition, it included the supply of ammunition, weapons, and fuel, as well as provisioning and care of the wounded. This supply required a series of skills and strategies that justified the appearance of the term “logistics.” At that time, the Logistikas were the military officers in charge of supplying the army. Moreover, the term Logistikos can be translated as “he who knows how to calculate.”
The Importance of Logistics in History
A key example of its importance is Napoleon Bonaparte’s invasion campaign of Russia in 1812: of the 442,000 initial soldiers, only 10,000 returned alive (a 98% casualty rate).
Warehouse Infrastructure, Productivity, and Safety
In order for various types of transport vehicles to carry out their activity effectively, it is essential to have adequate warehouse infrastructure. This includes physical elements, facilities, and specialized equipment that make it possible to transport goods in specialized areas from one mode of transport quickly and safely. Infrastructure must be designed to meet current and future needs.
The warehouse infrastructure directly affects productivity and safety. The external infrastructure of a warehouse consists of access roads (roads, railways, etc.), local orientation, docks, ramps, doors, and building dimensions.