Multimodal Transport

Multimodal transport has evolved across numerous dimensions globally, the arrival of containerization has greatly helped the promotion of Multimodal transport. Containerization ensured that the value of transport from place of producing to the place of consumption was reduced to the prices of the products. This helped to push multimodal transport from a straightforward transport by ocean basis port to port to a lot of advanced link of Door-to-Door victimization further modes like landlocked waterways, Railways and Highways. It additionally helped to make on advanced ideas in Multimodal transport like Land Bridges, Rail-road-Inland Waterways-Sea. Excluding the necessity of the shippers to maneuver the cargoes on a Door to Door basis the necessity of promoting Multimodal transport is additionally arising from some typical problems being two-faced by the transport sector across the world with respect to: 1) Increasing Fuel value 2). Congestion on Highways 3). Operating Time Directive 4. Driver Shortages .A planned and coordinated multimodal transport minimizes the loss of your time and also the risk of loss, stealing and harm to loading at conveyance points. It reduces the burden of supply multiple documentation and helps to cut back the value of exports. Moreover, combining personal and conveyance in a very multimodal transport system offers opportunities to maximize the strengths of the assorted systems whereas avoiding their weaknesses, and would possibly thus be a stimulating different. The conception of multimodal transport isn’t new and efforts to ascertain an appropriate legal regime for multimodal transport were 1st created by the International Institute for the Unification of personal Law (UNIDROIT) within the 1930. At that point, these efforts were weighed a lot of theoretical than sensible in industrial circles (UNCTAD, 1994). The term multimodal transport was introduced formally by the UN sponsoring Multimodal Transport Convention in 1980 .The advantages of multimodal transport are: .

1. Savings in price and time from the optimum use of every mode of transport.

2. Bigger returns on personal and public infrastructure investments

3. Higher capability utilization ensuing from optimum usage of every mode

4. Reduced energy usage

5. Reduced environmental hazards

Several regional organizations and government agencies square measure actively concerned in developing progressive multimodal transport corridors comprising rail, road, air, and maritime transport to facilitate the seamless movement of products inside a neighborhood, native governments and regional organizations have an interest in making safe and property multimodal transport systems that not solely function a catalyst for socio- economic development however additionally enhance international fight. An efficient methodology of transporting freight at low price and bigger efficiency may be a robust reason for international firms to take a position in a very explicit region resulting in a rise in FDI. The presence of robust multimodal production and transport networks will increase the trade in merchandise, the services, and also the capital flows inside a neighborhood and therefore boosts intraregional trade. whereas the transportation of freight victimization over one mode of transport may be a common observe, the individualism of contemporary multimodal transport is that the movement of huge volumes of freight below one transport liability document covering all phases of the journey issued by a multimodal transport operator Lack of multimodal transport networks excludes opportunities for shippers and freight forwarders to boost the scope of their services and to cut back prices and period of transport

Inventory Management

Inventory Management is practiced as a confederacy of traditional materials activities bound by a common idea i.e. the idea of an integrated management approach to planning, acquisition, conversion, flow and distribution of inventories of raw materials, work in progress, factory supplies and finished goods awaiting for dispatch. Sometimes inventories of retail shops are also included in this broad concept. Inventory management includes the activities of purchasing, traffic, receiving, warehousing, surplus and salvage/scrap management as well as production planning and control. In addition to this customer service, scheduling, shipping and physical distribution are also sometimes included. Business organisation is a system of which inventory management is a sub system. Similarly inventory planning, programming, purchasing handling storage and control are the sub systems of inventory management system. The functions of which must be carried out either concurrently or in sequence. In most of the firms, Inventory Management, Marketing and Manufacturing are the three main operating sub systems in an organisation, which overlaps significantly and hence are continuing sou The other sub systems like finance and personnel serve the needs of the above three functions and also frequently add to conflict, too. One of the paramount advantages of logistic management course in kerala is that 65 it forces co-ordination between all these above functions. Inventory management cannot be performed in isolation and it does not occur in vacuum. It is closely related with other functional areas of business. Inventory management is an activity integrated, co-ordinated and entwined with such widely spread functions of management as purchasing, production, planning and scheduling, finance, marketing, physical distribution, store keeping etc. Inventory management is closely related with all the functions of engineering, procurement of materials down to final distribution. inventory management cannot function efficiently without proper co-ordination with other functions of business, due to following reasons : • Due to specialization the materials and consequently inventory management activities have become so wide that it requires co-ordination or direction towards common goal of business.

• To avoid jurisdictional disputes and overlapping between various functions of management

• Any development or change in any one function or department has its impact on other functions.

• Accepting inventory management as a system requires subordination of departmental interest to organisational interest.

• Inventory controller can control and co-ordinate with an overview that ensures proper balance of conflicting objectives.

• Rapid transfer of data reporting informal and short communication channels (along with formal ones) and necessitates integration.

• Increased computerisation/mechanisation, development of new tools and techniques of inventory management, use of operation research techniques like simulation, linear programming, queuing theory and Materials Requirement Planning, Just In Time inventories, crisis management etc. require that all the functions of business must be integrated for most economical operations Logistic Inventory Management can be broadly classified in two types : 26 66 Horizontal Integration : Integration of Inventory Management with other functions on horizontal line in the organisation structure viz. Design and Engineering, Research and Development, value analysis, Purchasing, Manufacturing, Marketing etc. Vertical Integration : Integration of the activities of Inventory Management viz. Planning, Procuring, Sourcing, Handling, Storing, Controlling, Receiving and Inspection, Disposal of wastes and scraps. All these functions and activities are responsible for attainment of organisational goal viz. minimising inventories and production cost, on time delivery of production materials and meeting delivery commitment to customer. Inventory Management has gained importance in India due to following reasons.

  1. Late industrialisation
  2. To conserve valuable foreign exchange
  3. To Release surplus capital for productive purpose
  4. To increase competitiveness in foreign markets by reducing costs
  5. Seller’s market
  6. Inflationary hoarding of stock s
  7. Strict import procedure
  8. Excessive dependence on foreign collaboration
  9. Inadequate storage facilities and higher cost of storage
  10. Use of scientific techniques at low ebb
  11. Mechanisation

Logistics and GST

Logistics and GST

The Indian logistics industry is on the stage of a steady growth due to the latest e-commerce penetration, economy revival, proposed GST implementation . Transportation alone holds 60% share of the logistics industry and rest 40% is by warehousing, freight forwarding, value-added logistics, etc. Because of India’s GDP growth the logistics industry is expected to grow at 1-1.5x as logistics business is directly correlated with economic activity. The logistic sector in India remains totally immersed in several complexities like higher logistic costs and complex tax structure. The implementation of Goods and Service Tax (GST) bill will reduce the logistic costs upto 20% from the current levels, however, the persisting high logistic costs could only be resolved by development of logistics infrastructure. The Indian logistic sector is mainly divided into four segments like transportation, warehousing, freight forwarding and value-added logistics. Transportation which comprises of road ,rail, air and water contributes the maximum to the logistics sector. India has a very high logistics because of the various issues and challenges faced by the industry. The industry is also affected by the lack of customs efficiency in the clearance processes and procedures thus affecting the international export . Due to the existing Indian infrastructure that lacks implementation of efficient IT-enabled tracking and tracing mechanisms has adversely affected the performance of logistics courses in kerala. As per GST the same level of taxation would be charged on a specific product or service across the entire country irrespective of being manufactured and sold in different states. With the introduction of GST, there are chances of major consolidation in the industry. It could see the emergence of large players who can control the entire logistics chain. Improvement in the logistic time after phasing out the border check posts may result in the improvement in operational efficiency through quicker and increased number of deliveries along with reduction in logistic cost during the transit. As per world bank estimation Indian corporates can save upto 30-40% of logistic costs incurred due to stoppages at check posts . The existing interstate taxation system has forced the companies to set up and maintain warehouses in every state. Currently, there are around 20-30 warehouses for each company, in every state, in addition to this 20-30 Carry & Forwarding agents per state making the supply chain longer and inefficient. GST will be levied on transportation of goods and credit will be made available on interstate transactions. Logistic costs are expected to be decreased by 1.5- 2.00% of sales on account of maximization of warehouses leading to lower inventory costs which are set up across states to avoid paying the corporate sales tax and escaping the interstate sales tax. There is immense scope for optimization of costs. The implementation of GST, would benefit immensely the players in organized sectors in terms of consolidation and merging of smaller players with larger organized players to have the mutual benefits. Furthermore, the sector would also attract interest from international logistic players through FDI, JVs or acquisitions, which in turn pushes the industry to march towards the developed market standards of logistic performance index. The implementation of GST would help the logistic industry in improving the operational efficiency thus cutting the logistic cost and expanding the business prospects through the consolidation of logistic players.

Packaging in Logistics Industry

The word package is defi ned as the surface of the packed material that secure the material from the influence of the environment and the influence of mechanical energy during the transportation process.

The physical flow of products in the economy is greatly depends on the adequate packaging. Aparts from other usage, the functions of packages are the package enables to prepare a suffi cient amount of goods that are to enter production and to attain a suffi cient number of goods that are to leave production, the packaging of goods constitute an important part of the product’s marketing strategy, which allows the good to be distinguished from the goods produced by the competition, the reuse of the package by the buyer or using it for different aims, the so-called multiple use, the package should make other logistic processes easier, which improve the quality of transportation processes. The marketing and applied functions of packages are widely known. A package is usually enumerated as the basic instrument of a company’s marketing strategy. The good conduction of the transportation, manipulation and storage activities are decided by the company’s. The diversifi cation of package functions relates to their meaningfulness in the process of distribution. Optimally matched individual and bulk packages lead to the faster fl ow of goods at all the points in the distribution. At the same time, they also infl uence the costs of distribution, making them lower. Proper usage of packages should occur in order to exclude the possibility of over packaging and for the optimal usage of storage space and capabilities of transport means. The goods and their packages create an integral whole, and the recipients might have particular requirements with respect to them. The logistic functions of packages are:

Protection function – the protection of goods by the packaging is considered to be the most important logistic function of the package, which should protect the load from loss or lowering of its quality on its way from the producer to the consumer, as well as it should protect the goods during shipment from mechanical and climatic burdens (moisture, temperature), it is also to make stealing of the product inside harder.

The storage function – the package is required to make storage of the goods easier, i. e. it should be easy to put in piles, its shape and size should enable to put several packages directly one on another, it should also enable appropriate usage of storage space.

The transportation function – the package is to make transport easier and its shape and size should enable optimal usage of the capability of the means of transportation (thanks to its relatively low weight)

The manipulation function – making the loading process easier manually and mechanically.

The informative function – the package is a carrier of information; it should be marked (e.g. with colors or signs) so the worker carrying out the order can easily identify the required goods, pack delicate materials which mayget stale quick that need special treatment during shipment and they should be marked by fi gures, signs or explanations.

Thus it can be said that Packaging plays a major role in the logistics courses in kerala industry.


Containerization means the increasing use of the containers as a support for freight transportation. It involves processes where the containers are increasingly used because it either substitutes cargo from other means of transport or it is adopted as a mode supporting freight distribution ,the reason being that a large number of transport systems are able to handle containers. Both inter modal transportation and containerization are mutually connected, self strengthening and depend on a set of driving forces linked with technology, infrastructures and management. One of the major issues were the different sizes and dimensions of containers used by shipping lines, which were a source of much confusion in compiling container shipping statistics. The loading could involve different volumes since different box sizes were involved. The usage of containers has helped in a faster movement and a standardization of loads. The container has substantially contributed to the adoption and diffusion of inter modal transportation which has led to a lot of changes. Through reduction of handling time, labor costs, and packing costs, container transportation allows a considerable improvement in the efficiency of transportation. Thus, the importance of containers is not what they are but what they enable. A major change in freight transportation could not have taken its current form without containerization. It can be rightly said that the maritime sector should have been the first mode to pursue containerization. It was the means of transport less used because of the time taken to load and unload the vessels.


Containerization permits the mechanized handling of cargoes of different types and sizes that are placed into boxes of standard sizes. Thus goods that took days to be loaded or unloaded from a ship can now be handled in a matter of minutes. Containers are either made of steel (the most common for maritime containers) or aluminum (particularly for domestic) thus helping in the flexibility. Another reason for greater movement of the container is through the implementation of International Standards Organization (ISO) within 10 years of its introduction. Because of this ,large container sizes and specifications have been put in use. The most commonly used container size is however the 40 foot box, which in its 2,400 cubic feet which carry on average 22 tons of cargo. However, transporting cargo in a 20 ft container is usually 80% of the cost of transporting cargo in a 40 ft container because irrespective of the size a 20 ft container requires the same amount of inter modal movements even if it takes about half the space. A significant share of international containers are either owned by big shipping lines. In few countries , a large amount of domestic containers of 53 foot are also used. Double stacking of containers on railways (COFC: Containers On Flat Cars) has doubled the capacity of trains to haul freight with minimal cost , thereby improving the competitive position of the railways with regards to loading freight for long-haul shipments. The maritime containers are used in international trade, and other types of containers are found in the airline industry. Increased labor costs and the slowness of loading , that require a very rapid turnaround, made the industry very receptive to the concept of a loading unit of standard dimensions designed to fit the specific shape. shipping management courses in kerala

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