international logistics

  • View

  • Download

Embed Size (px)


management international logistics assignemnt








For the arrange a shipment of 2000 pallets (1m x 1m x 1m) from Tanjung Pelepas Johor Bharu to Amsterdam, Matsushita Electronics (M) BHD will use the water transportation or called as sea port for export the pallets. Sea freight means shipping services through shipping industries. The cargo or the goods that are shipping will be transported from one country to the other by sea. Sea freight takes much longer time than air freight.Water transport is the process of transport that a watercraft, such as a barge, boat, ship or sailboat, makes over a body of water, such as a sea, ocean, lake, canal or river. If a boat or other vessel can successfully pass through a waterway it is known as a navigable waterway. The need for buoyancy unites watercraft, and makes the hull a dominant aspect of its construction, maintenance and appearance. When a boat is floating on the water the hull of the boat is pushing aside water where the hull now is, this is known as displacement. The characteristic of sea transportation is providing a relatively low cost transport solution. Besides that, Lower cost rather than airfreight or inland transport and using container will be less costing. Lastly, the characteristics of sea transportation is Low rates but long transit times and Low accessibility but high capability

WHY CHOOSE SEA TRANSPORTATION?TRANSPORTATION SELECTION DECISIONMatsushita Electronics (M) BHD choose transportation for the shipment activities is besides the cost, time, type of transportation that the characteristics and the advantages of the mode transport. Effective logistics management has been recognized as a key opportunity to improve both the profitability and competitive performance of company. Logistics is concern with demand satisfaction, whereas marketing seeks to create demand. The Transportation and Total Logistics relationship is the main point for our company do the decision for choose sea transportation in this shipment. Firms need to recognize that the lowest cost carrier does not necessarily guarantee that this carrier will result in the lowest landed cost. Therefore, firms need to keep the big picture in mind when attempting to select a carrier. Because of choose sea transportation Suitable for bulk cargo, Easy to bring large scale of cargo, Maintain delivery, Maintain quality of the cargo and Reduce of internal thief.

ADVANTAGES OF SEA TRANSPORATION It is a relatively economical mode of transport for bulky and heavy goods. It is a safe mode of transport with respect to occurrence of accidents. The cost of maintaining and constructing routes is very low most of them are naturally made. It promotes international trade. Ideal for transporting heavy and bulky goods Suitable for products with long lead times Cheap for large volumes


LOGISTICS ACTIVITIES INVOLVED IN THE MOVEMENT OF 2000 PALLETSPRODUCTION COMPANY Production Company in Malaysia has the order from Amsterdam of 2000 pallets (1m x 1m x 1m). The company will produce the pallets with follow the customer want. Follow the size, shape, weight, color, and design.

STORAGE WAREHOUSE After Production Company finished the order 2000 pallets, the product will storage in warehouse. A warehouse is a commercial building for storage of goods. Warehouses are used by manufacturers, importers, exporters, wholesalers, transport businesses, customs, etc. They are usually large plain buildings in industrial areas of cities and towns and villages. They usually have loading docks to load and unload goods from trucks. Storage in the warehouse before goes to the shipping process.

FORWARDING AGENTCompany will use the forwarding agent to clearance the all documents with custom. Freight forwarding is a service used by companies that deal in international or multi-national import and export. While the freight forwarder doesn't actually move the freight itself, it acts as an intermediary between the client and various transportation services. A freight forwarding service handles the considerable logistics of this task for the client, relieving what would otherwise be a formidable burden.TRANSPORTATION Transportation in this area will use the road transportation for next process after forwarding agent complete the documents then the pallets will carry to the port for checking by the customs before go through to the shipping area.

STORAGE IN PORT WAREHOUSE After finish the checking and complete the all documents at the Customs clear, the pallets will keep storage in the warehouse at the port. This storage is for loading area before the pallets will go in to the vessel for the shipping process. Storage in this warehouse is not taking a long time just less than 24hours before shipping. They usually have loading docks to load and unload goods from trucks. Storage in the warehouse before goes to the shipping process. CUSTOM CLEARANCE (MALAYSIA)In Malaysia the Custom goods declaration forms are the prime source documents for trade statistics generated by the importer and exporters. In this case, the forwarding agent will give and complete the document and customs form about the product its the 2000 pallets. In detail including providing true information regarding the number, description of packages/ crates, value weight, quantity and type of goods. This applies for goods meant for exports as well where the final destination of the goods is notified. Completed custom forms will need to be submitted to customs offices at the place where the Pallets are to be exported.

SHIPPINGAfter finish all the process with customs area, the pallets will go to the vessel and take a process. The products will save safely in the vessel. Besides that, company must know what types of sea freight vessel. The intermodal aspect characteristic of the container is useful to shippers in terms of speed, efficiency, security and low cost. There are two types of containerships, first Fully Cellular containerships and Ro-ro ships. The pallets will save in the bulk vessel and start the shipping to Amsterdam.

CUSTOM CLEARANCE (AMSTERDAM) In this area is same goes like in custom Malaysia. Their will check the products before go in the country or the buyer. A customs duty is a tariff or tax on the importation (usually) or exportation (unusually) of goods. In the custom area, as usually custom do the work. All document about the goods thats forwarding agent carries custom must check and details about the documents and check the pallets.

BUYER (AMSTERDAM)Buyer will receive the products of 2000 pallets (1m x 1m x 1m) like the order before. The buyer (company) will keep storage the pallets in their warehouse for their usage. The all documents the buyer company will get and do the payment to Production Company.

RELATED DOCUMENTSAll goods meant for import and export either it is under import/export duty or otherwise must be declared in writing in the respective forms it is customs form No 1 for imported goods and customs form No 2 for exported goods. The other documents are Bill of lading, Shipping Bill, Letter of credit, Airway Bill, and Bill of exchange. Declaration forms must be filled in detail including providing true information regarding the number, description of packages/crates, value, weight, quantity and type of goods. The origin of the goods will also need to be informed.

Documents related to goods Export invoice (Custom form 2)Export invoice is a sellers bill for the pallets and contains information about pallets such as quantity, total value, number of packages, marks on packing, port of destination, name of ship, bill of lading number, terms of delivery and payments. A document used in foreign trade. It is used as a customs declaration provided by the person or corporation that is exporting an item across international borders. These invoices are often used by governments to determine the true value of goods when assessing customs duties.

Documents related to shipment Shipping BillThe shipping bill is the main document on the basis of which customs office grants permission for the export. The shipping bill contains particulars of the goods being exported, the name of the vessel, the port at which goods are to be discharged, country of final destination, exporter's name and address and more information about the goods

Bill of ladingBill of lading is a document wherein a shipping company gives its official receipt of the goods put on board its vessel and at the same time gives an undertaking to carry them to the port of destination. It is also a document of title to the goods and as such is freely transferable by the endorsement and delivery.

Airway BillLike a bill of lading, an airway bill is a document wherein an airline company gives its official receipt of the goods on board its aircraft and at the same time gives an undertaking to carry them to the port of destination. It is also a document of title to the goods and as such is freely transferable by the endorsement and delivery.

Documents related to payment Letter of creditA letter of credit is a guarantee issued by the importer's bank that it will honor up to a certain amount the payment of export bills to the bank of the exporter. Letter of credit is the most appropriate and secure method of payment adopted to settle international transactions

Bill of exchange It is a written instrument whereby the person issuing the instrument directs the other party to pay a specified amount to a certain person or