Friday 23 February 2018

How to make chicken kasa

Chicken kasa recipe | Chicken in thick spicy gravy

Chicken kasa recipe is the perfect combo of patience and passion (and of course chicken and spices :) ) kasa in odia means thick spicy gravy; this recipe is neither dry nor watery gravy. chicken kasa is absolutely delicious and I bet you would love this recipe. a must try if you love chicken. Chicken kasa is very popular in West Bengal and Odisha. making the masala for this recipe is the important part. you get the masala perfect, chicken will happily to blend in 😉

Ingredients
  • boneless chicken - 400 gm
  • onion - 1 big(finely chopped)
  • tomato - 2 medium (finely chopped)
  • ginger - 1/2 inch (chopped)
  • garlic - 5 cloves
  • salt - 2 & 1/2 tsp
  • turmeric powder - 2 tsp
  • cumin powder - 1 tbsp
  • coriander powder 1 tbsp
  • dry methi leaves - 1 & 1/2 tbsp
  • garam masala - 2 tsp
  • coriander leaves - handful (finely chopped)
  • curd - 1 & 1/2 tbsp
  • oil - 6 tbsp
  • dry kashmiri chili - 1 (cut in half)
  • green chili - 3 medium (finely chopped)
  • cumin seeds / jeera - 1 tsp
  • cloves - 5
  • cardamon - 4
  • bay leaves - 3
Instructions
  1. Crush the cloves and cardamon in a mortar and pestle.
  2. Grind half onion, ginger and garlic with 3 tbsp water into a paste.
  3. Wash the chicken and cut into small pieces. Drain excess water.
  4. Add 1 sp turmeric powder and 1 tsp salt and mix well.
  5. Place a kadai on medium flame and add 4 tbsp oil. Once hot, add the chicken pieces and saute for 5 mins.
  6. Remove the chicken from the kadai, cover and keep it aside.
  7. Add 2 tbsp oil in the same kadai and place it on medium flame. Once hot, add cumin seeds, bay leaves, kashmiri chilli, and the crushed cloves-cardamon.
  8. Saute for a min and then add finely chopped onion.
  9. Saute for 2 mins till the onion turns into golden brown colour. Then add the onion-ginger-garlic paste and mix well.
  10. Saute this for 5 mins and then add finely chopped tomatoes, green chili and 1 & 1/2 salt.
  11. Saute for 3 mins and then add 1 tsp turmetic powder, cumin powder, coriander powder, dry methi leaves and 1 & 1/2 tsp garam masala.
  12. Saute for 2 mins and then add chicken. mix well, simmer the flame and cover the kadai for 5 mins.
  13. Add 1 & 1/2 tbsp curd and finely chopped coriander leaves, 1/2 tsp garam masala. saute for 2 mins.
  14. Serve hot with roti / naan / paratha.

 

Shipping costs

Often, an LTL shipper may realize savings by utilizing a freight broker, online marketplace or other intermediary, instead of contracting directly with a trucking company. Brokers can shop the marketplace and obtain lower rates than most smaller shippers can obtain directly. In the LTL marketplace, intermediaries typically receive 50% to 80% discounts from published rates, where a small shipper may only be offered a 5% to 30% discount by the carrier. Intermediaries are licensed by the DOT and have requirements to provide proof of insurance.

Truckload (TL) carriers usually charge a rate per kilometre or mile. The rate varies depending on the distance, geographic location of the delivery, items being shipped, equipment type required, and service times required. TL shipments usually receive a variety of surcharges very similar to those described for LTL shipments above. In the TL market, there are thousands more small carriers than in the LTL market. Therefore, the use of transportation intermediaries or brokers is extremely common.

Another cost-saving method is facilitating pickups or deliveries at the carrier’s terminals. By doing this, shippers avoid any accessorial fees that might normally be charged for liftgate, residential pickup/delivery, inside pickup/delivery, or notifications/appointments. Carriers or intermediaries can provide shippers with the address and phone number for the closest shipping terminal to the origin and/or destination.

Shipping experts optimize their service and costs by sampling rates from several carriers, brokers and online marketplaces. When obtaining rates from different providers, shippers may find a wide range in the pricing offered. If a shipper in the United States uses a broker, freight forwarder or other transportation intermediary, it is common for the shipper to receive a copy of the carrier's Federal Operating Authority.[6] Freight brokers and intermediaries are also required by Federal Law to be licensed by the Federal Highway Administration. Experienced shippers avoid unlicensed brokers and forwarders because if brokers are working outside the law by not having a Federal Operating License, the shipper has no protection in the event of a problem. Also, shippers normally ask for a copy of the broker's insurance certificate and any specific insurance that applies to the shipment.

Overall, shipping costs have fallen over the past decades. A further drop in shipping costs in the future might be realized through the application of improved 3D printing technologies.[7]

Truckload freight

In the United States, shipments larger than about 7,000 kg (15,432 lb) are typically classified as truckload (TL) freight. This is because it is more efficient and economical for a large shipment to have exclusive use of one larger trailer rather than share space on a smaller LTL trailer.

By the Federal Bridge Gross Weight Formula the total weight of a loaded truck (tractor and trailer, 5-axle rig) cannot exceed 80000 lbs in the United States. In ordinary circumstances, long-haul equipment will weigh about 15,000 kg (33,069 lb), leaving about 20,000 kg (44,092 lb) of freight capacity. Similarly a load is limited to the space available in the trailer, normally 48 ft (14.63 m) or 53 ft (16.15 m) long, 2.6 m (102.4 in) wide, 2.7 m (8 ft 10.3 in) high and 13 ft 6 in or 4.11 m high over all.

While express, parcel and LTL shipments are always intermingled with other shipments on a single piece of equipment and are typically reloaded across multiple pieces of equipment during their transport, TL shipments usually travel as the only shipment on a trailer. In fact, TL shipments usually deliver on exactly the same trailer as they are picked up on.

Air freight

Air freight shipments are very similar to LTL shipments in terms of size and packaging requirements. However, air freight or air cargo shipments typically need to move at much faster speeds than 800 km or 497 mi per hour. Air shipments may be booked directly with the carriers, through brokers or with online marketplace services. While shipments move faster than standard LTL, air shipments don’t always actually move by air. In the US, there are certain restrictions on shipments moving via air freight on passenger aircraft. Shippers in the US must be approved and be "known" in the Known Shipper Management System before their shipments can be tendered on passenger aircraft.

Less-than-truckload freight

Less than truckload (LTL) cargo is the first category of freight shipment, which represents the majority of freight shipments and the majority of business-to-business (B2B) shipments. LTL shipments are also often referred to as motor freight and the carriers involved are referred to as motor carriers.

LTL shipments range from 50 to 7,000 kg (110 to 15,430 lb), being less than 2.5 to 8.5 m (8 ft 2.4 in to 27 ft 10.6 in) the majority of times. The average single piece of LTL freight is 600 kg (1,323 lb) and the size of a standard pallet. Long freight and/or large freight are subject to extreme length and cubic capacity surcharges.

Trailers used in LTL can range from 28 to 53 ft (8.53 to 16.15 m). The standard for city deliveries is usually 48 ft (14.63 m). In tight and residential environments the 28 ft (8.53 m) trailer is used the most.

The shipments are usually parallelized, stretch [shrink]-wrapped and packaged for a mixed-freight environment. Unlike express or parcel, LTL shippers must provide their own packaging, as carriers do not provide any packaging supplies or assistance. However, circumstances may require crating or other substantial packaging.

Shipment categories

Freight is usually organized into various shipment categories before it is transported. An item's category is determined by:

    the type of item being carried. For example, a kettle could fit into the category 'household goods'.
    how large the shipment is, in terms of both item size and quantity.
    how long the item for delivery will be in transit.

Shipments are typically categorized as household goods, express, parcel, and freight shipments:

    Household goods (HHG) include furniture, art and similar items.
    Very small business or personal items like envelopes are considered overnight express or express letter shipments. These shipments are rarely over a few kilograms or pounds and almost always travel in the carrier’s own packaging. Express shipments almost always travel some distance by air. An envelope may go coast to coast in the United States overnight or it may take several days, depending on the service options and prices chosen by the shipper.
    Larger items like small boxes are considered parcels or ground shipments. These shipments are rarely over 50 kg (110 lb), with no single piece of the shipment weighing more than about 70 kg (154 lb). Parcel shipments are always boxed, sometimes in the shipper’s packaging and sometimes in carrier-provided packaging. Service levels are again variable but most ground shipments will move about 800 to 1,100 km (497 to 684 mi) per day. Depending on the origin of the package, it can travel from coast to coast in the United States in about four days. Parcel shipments rarely travel by air and typically move via road and rail. Parcels represent the majority of business-to-consumer (B2C) shipments.
    Beyond HHG, express, and parcel shipments, movements are termed freight shipments.

Transportation types

Marine

Seaport terminals handle a wide range of maritime cargo.

    Automobiles are handled at many ports and are usually carried on specialized roll-on/roll-off ships.
    Break bulk cargo is typically material stacked on pallets and lifted into and out of the hold of a vessel by cranes on the dock or aboard the ship itself. The volume of break bulk cargo has declined dramatically worldwide as containerization has grown. One way to secure break bulk and freight in intermodal containers is by using Dunn age Bags.
    Bulk cargo, such as salt, oil, tallow, and scrap metal, is usually defined as commodities that are neither on pallets nor in containers. Bulk cargoes are not handled as individual pieces, the way heavy-lift and project cargoes are. Alumina, grain, gypsum, logs, and wood chips, for instance, are bulk cargoes.
    Noe-bulk cargo comprises individual units that are counted as they are loaded and unloaded, in contrast to bulk cargo that is not counted, but that are not containerized.[2]
    Containers are the largest and fastest growing cargo category at most ports worldwide. Containerized cargo includes everything from auto parts, machinery and manufacturing components to shoes and toys to frozen meat and seafood.
    Project cargo and the heavy lift cargo include items like manufacturing equipment, air conditioners, factory components, generators, wind turbines, military equipment, and almost any other oversized or overweight cargo which is too big or too heavy to fit into a container.


Air

Air cargo, commonly known as air freight, is collected by firms from shippers and delivered to customers. Aircraft were first used for carrying mail as cargo in 1911. Eventually manufacturers started designing aircraft for other types of freight as well.

There are many commercial aircraft suitable for carrying cargo such as the Boeing 747 and the bigger An‑124, which was purposely built for easy conversion into a cargo aircraft. Such large aircraft employ quick-loading containers known as unit load devices (ULDs), much like containerized cargo ships. The ULDs are located in the front section of the aircraft.

Most nations own and utilize large numbers of military cargo aircraft such as the C‑17 Globemaster III for logistical needs.

Popular commercial aircraft transformed to a cargo aircraft such as Saab 340A is designed for high revenue and profitability in short / medium haul operations.



Rail

Trains are capable of transporting a large number of containers that come from shipping ports. Trains are also used for the transportation of water, cement, grain, steel, wood and coal. They are used because they can carry a large amount and generally have a direct route to the destination. Under the right circumstances, freight transport by rail is more economic and energy efficient than by road, especially when carried in bulk or over long distances.

The main disadvantage of rail freight is its lack of flexibility. For this reason, rail has lost much of the freight business to road transport. Rail freight is often subject to transshipment costs, since it must be transferred from one mode of transportation to another. Practices such as containerization aim at minimizing these costs. When transporting point-to-point bulk loads such as cement or grain, with specialized bulk handling facilities at the rail sidings, rail mode of transport remains the most convenient and preferred option.

Many governments are currently trying to encourage shippers to use trains more often because of the environmental benefits.



Road

Many firms, like Parcel force, FedEx and R+L Carriers transport all types of cargo by road. Delivering everything from letters to houses to cargo containers, these firms offer fast, sometimes same-day, delivery.

A good example of road cargo is food, as supermarkets require deliveries daily to replenish their shelves with goods. Retailers and manufacturers of all kinds rely upon delivery trucks, be they full size semi trucks or smaller delivery vans. These smaller road haulage companies constantly strive for the best routes and prices to ship out their products.[3] Indeed, the level of commercial freight transported by smaller businesses is often a good barometer of healthy economic development as it is these types of vehicles that move and transport literally anything, including couriers transporting parcel and mail.[4] You can see the different types and weights of vehicles that are used to move cargo around.



Cargo

In economics, cargo or freight are goods or produce being conveyed – generally for commercial gain – by water, air or land. Cargo was originally a shipload. Cargo now covers all types of freight, including that carried by train, van, truck, or inter modal container.[1] The term cargo is also used in case of goods in the cold-chain, because the perishable inventory is always in transit towards a final end-use, even when it is held in cold storage or other similar climate-controlled facility.

Multi-modal container units, designed as reusable carriers to facilitate unit load handling of the goods contained, are also referred to as cargo, specially by shipping lines and logistics operators. Similarly, aircraft ULD boxes are also documented as cargo, with associated packing list of the items contained within. When empty containers are shipped each unit is documented as a cargo and when goods are stored within, the contents are termed as containerized cargo.

Wednesday 14 February 2018

Business inventory

Reasons for keeping stock

There are five basic reasons for keeping an inventory

    Time - The time lags present in the supply chain, from supplier to user at every stage, requires that you maintain certain amounts of inventory to use in this lead time. However, in practice, inventory is to be maintained for consumption during 'variations in lead time'. Lead time itself can be addressed by ordering that many days in advance.
    Seasonal Demand: demands varies periodically, but producers capacity is fixed. This can lead to stock accumulation, consider for example how goods consumed only in holidays can lead to accumulation of large stocks on the anticipation of future consumption.
    Uncertainty - Inventories are maintained as buffers to meet uncertainties in demand, supply and movements of goods.
    Economies of scale - Ideal condition of "one unit at a time at a place where a user needs it, when he needs it" principle tends to incur lots of costs in terms of logistics. So bulk buying, movement and storing brings in economies of scale, thus inventory.
    Appreciation in Value - In some situations, some stock gains the required value when it is kept for some time to allow it reach the desired standard for consumption, or for production. For example; beer in the brewing industry

All these stock reasons can apply to any owner or product.
Special terms used in dealing with inventory management

    Stock Keeping Unit (SKU) SKUs are clear, internal identification numbers assigned to each of the products and their variants. SKUs can be any combination of letters and numbers chosen, just as long as the system is consistent and used for all the products in the inventory.[6]
    Stockout means running out of the inventory of an SKU.[7]
    "New old stock" (sometimes abbreviated NOS) is a term used in business to refer to merchandise being offered for sale that was manufactured long ago but that has never been used. Such merchandise may not be produced anymore, and the new old stock may represent the only market source of a particular item at the present time.

Typology

    Buffer/safety stock
    Reorder level
    Cycle stock (Used in batch processes, it is the available inventory, excluding buffer stock)
    De-coupling (Buffer stock held between the machines in a single process which serves as a buffer for the next one allowing smooth flow of work instead of waiting the previous or next machine in the same process)
    Anticipation stock (Building up extra stock for periods of increased demand - e.g. ice cream for summer)
    Pipeline stock (Goods still in transit or in the process of distribution - have left the factory but not arrived at the customer yet)

Average Daily/Weekly usage quantity X Lead time in days + Safety stock
Inventory examples

While accountants often discuss inventory in terms of goods for sale, organizations - manufacturers, service-providers and not-for-profits - also have inventories (fixtures, furniture, supplies, etc.) that they do not intend to sell. Manufacturers', distributors', and wholesalers' inventory tends to cluster in warehouses. Retailers' inventory may exist in a warehouse or in a shop or store accessible to customers. Inventories not intended for sale to customers or to clients may be held in any premises an organization uses. Stock ties up cash and, if uncontrolled, it will be impossible to know the actual level of stocks and therefore impossible to control them.

While the reasons for holding stock were covered earlier, most manufacturing organizations usually divide their "goods for sale" inventory into:

    Raw materials - materials and components scheduled for use in making a product.
    Work in process, WIP - materials and components that have begun their transformation to finished goods.
    Finished goods - goods ready for sale to customers.
    Goods for resale - returned goods that are salable.
    Stocks in transit.
    Consignment stocks.
    Maintenance supply.

For example:
Manufacturing

A canned food manufacturer's materials inventory includes the ingredients to form the foods to be canned, empty cans and their lids (or coils of steel or aluminum for constructing those components), labels, and anything else (solder, glue, etc.) that will form part of a finished can. The firm's work in process includes those materials from the time of release to the work floor until they become complete and ready for sale to wholesale or retail customers. This may be vats of prepared food, filled cans not yet labeled or sub-assemblies of food components. It may also include finished cans that are not yet packaged into cartons or pallets. Its finished good inventory consists of all the filled and labeled cans of food in its warehouse that it has manufactured and wishes to sell to food distributors (wholesalers), to grocery stores (retailers), and even perhaps to consumers through arrangements like factory stores and outlet centers.
Capital Projects

The partially completed work (or Work in Process) is a measure of inventory built during the work execution of a capital project,[8][9][10] such as encountered in civilian infrastructure construction or oil and gas. Inventory may not only reflect physical items (such as materials, parts, partially-finished sub-assemblies) but also knowledge work-in-process (such as partially completed engineering designs of components and assemblies to be fabricated).
Virtual inventory

A "virtual inventory" (also known as a "bank inventory") enables a group of users to share common parts, especially where their availability at short notice may be critical but they are unlikely to required by more than a few bank members at any one time.[11] Virtual inventory also allows distributors and fulfilment houses to ship goods to retailers direct from stock regardless of whether the stock is held in a retail store, stock room or warehouse.[12]
Costs associated with inventory

There are several costs associated with inventory:

    Ordering cost
    Setup cost
    Holding Cost
    Shortage Cost

Definition

The scope of inventory management concerns the balance between replenishment lead time, carrying costs of inventory, asset management, inventory forecasting, inventory valuation, inventory visibility, future inventory price forecasting, physical inventory, available physical space, quality management, replenishment, returns and defective goods, and demand forecasting. Balancing these competing requirements leads to optimal inventory levels, which is an ongoing process as the business needs shift and react to the wider environment.

Inventory management involves a retailer seeking to acquire and maintain a proper merchandise assortment while ordering, shipping, handling and related costs are kept in check. It also involves systems and processes that identify inventory requirements, set targets, provide replenishment techniques, report actual and projected inventory status and handle all functions related to the tracking and management of material. This would include the monitoring of material moved into and out of stockroom locations and the reconciling of the inventory balances. It also may include ABC analysis, lot tracking, cycle counting support, etc. Management of the inventories, with the primary objective of determining/controlling stock levels within the physical distribution system, functions to balance the need for product availability against the need for minimizing stock holding and handling costs.

Inventory

Inventory (American English) or stock (British English) is the goods and materials that a business holds for the ultimate goals to have a purpose of resale (or repair).[nb 1]
Inventory management is a discipline primarily about specifying the shape and placement of stocked goods. It is required at different locations within a facility or within many locations of a supply network to precede the regular and planned course of production and stock of materials.
The concept of inventory, stock or work-in-process has been extended from manufacturing systems to service businesses[1][2][3] and projects,[4][5] by generalizing the definition to be "all work within the process of production- all work that is or has occurred prior to the completion of production." In the context of a manufacturing production system, inventory refers to all work that has occurred - raw materials, partially finished products, finished products prior to sale and departure from the manufacturing system. In the context of services, inventory refers to all work done prior to sale, including partially process information.

Physical inventory

Physical inventory is a process where a business physically counts its entire inventory. A physical inventory may be mandated by financial accounting rules or the tax regulations to place an accurate value on the inventory, or the business may need to count inventory so component parts or raw materials can be restocked. Businesses may use several different tactics to minimize the disruption caused by physical inventory.
  • Inventory services provide labor and automation to quickly count inventory and minimize shutdown time.
  • Inventory control system software can speed the physical inventory process.
  • A perpetual inventory system tracks the receipt and use of inventory, and calculates the quantity on hand.
  • Cycle counting, an alternative to physical inventory, may be less disruptive.
The Finance or Business Manager of the unit is responsible for ensuring the annual physical inventory is properly performed, inventory records reflect actual quantities on hand, inventory valuation methods are appropriate, and adjustments are entered in the business's accounting system on a timely basis. In addition, the Finance or Business Manager is responsible for ensuring that segregation of duties is maintained throughout the inventory process to promote the safeguarding of the assets, protection of employees, and objective reporting of inventory. Specifically, no one person should be able to authorize a transaction (e.g., a purchase or sale), record the transaction, have custody of the inventory, and perform the related reconciliation.

Logistics museums

There are many museums in the world which cover various aspects of practical logistics. These include museums of transportation, customs, packing, and industry-based logistics. However, only the following museums are fully dedicated to logistics:

General logistics:

    Logistics Museum (Saint Petersburg, Russia)
    Museum of Logistics (Tokyo, Japan)
    Beijing Wuzi University Logistics Museum (Beijing, China)

Military logistics:

    Royal Logistic Corps Museum (Surrey, England, United Kingdom)
    The Canadian Forces Logistics Museum (Montreal, Quebec, Canada)
    Museum of the Army Logistics (Hanoi, Vietnam)

Logistics: profession and organizations

The Chartered Institute of Logistics and Transport (CILT), established in the United Kingdom in 1919, received a Royal Charter in 1926. The Chartered Institute is one of the professional bodies or institutions for the logistics and transport sectors that offers professional qualifications or degrees in logistics management. CILT programs can be studied at centers around UK, some of which also offer distance learning options.[26] The institute also have overseas branches namely The Chartered Institute of Logistics & Transport Australia (CILTA)[27] in Australia and Chartered Institute of Logistics and Transport in Hong Kong (CILTHK)[28] in Hong Kong. In the UK, Logistics Management programs are conducted by many universities and professional bodies such as CILT. These programs are generally offered at the postgraduate level.

The Global Institute of Logistics established in New York in 2003 is a Think Tank for the profession and is primarily concerned with intercontinental maritime logistics. It is particularly concerned with container logistics and the role of the seaport authority in the maritime logistics chain.The Institute has developed a community of over 8,500 logisticians who act a global knowledge network committed to supporting the Institute's mission of contributing to the resolution of legacy challenges in global logistics. Challenges associated with the traditional approach of managing single transport modes, modal systems as stand-alone operations. The key to overcoming these legacy challenges is for the individual stakeholder groups within the logistics chain to actively engage with each other. The promotion of this agenda is the Institute's work.

The International Association of Public Health Logisticians (IAPHL) is a professional network that promotes the professional development of supply chain managers and others working in the field of public health logistics and commodity security, with particular focus on developing countries. The association supports logisticians worldwide by providing a community of practice, where members can network, exchange ideas, and improve their professional skills.

Logistics: profession and organizations

A logistician is a professional logistics practitioner. Professional logisticians are often certified by professional associations. One can either work in a pure logistics company, such as a shipping line, airport, or freight forwarder, or within the logistics department of a company. However, as mentioned above, logistics is a broad field, encompassing procurement, production, distribution, and disposal activities. Hence, career perspectives are broad as well. A new trend in the industry are the 4PL, or fourth-party logistics, firms, consulting companies offering logistics services.

Some universities and academic institutions train students as logisticians, offering undergraduate and postgraduate programs. A university with a primary focus on logistics is Kühne Logistics University in Hamburg, Germany. It is non profit and supported by Kühne-Foundation of the logistics entrepreneur Klaus Michael Kühne

Logistics automation

Logistics automation is the application of computer software or automated machinery to improve the efficiency of logistics operations. Typically this refers to operations within a warehouse or distribution center with broader tasks undertaken by supply chain management systems and enterprise resource planning systems.

Industrial machinery can typically identify products through either Bar Code or RFID technologies. Information in traditional bar codes is stored as a sequence of black and white bars varying in width, which when read by laser is translated into a digital sequence, which according to fixed rules can be converted into a decimal number or other data. Sometimes information in a bar code can be transmitted through radio frequency, more typically radio transmission is used in RFID tags. An RFID tag is card containing a memory chip and an antenna which transmits signals to a reader. RFID may be found on merchandise, animals, vehicles and people as well.

Logistics outsourcing

Logistics outsourcing involves a relationship between a company and an LSP (logistic service provider), which, compared with basic logistics services, has more customized offerings, encompasses a broad number of service activities, is characterized by a long-term orientation, and thus has a strategic nature.[23]

Outsourcing does not have to be complete externalization to a LSP, but can also be partial:

    A single contract for supplying a specific service on occasion
    Creation of a spin-off
    Creation of a joint venture

Third-party logistics (3PL) involves using external organizations to execute logistics activities that have traditionally been performed within an organization itself.[24] According to this definition, third-party logistics includes any form of outsourcing of logistics activities previously performed in house. For example, if a company with its own warehousing facilities decides to employ external transportation, this would be an example of third-party logistics. Logistics is an emerging business area in many countries.

The concept of a fourth-party logistics (4PL) provider was first defined by Andersen Consulting (now Accenture) as an integrator that assembles the resources, planning capabilities, and technology of its own organization and other organizations to design, build, and run comprehensive supply chain solutions. Whereas a third-party logistics (3PL) service provider targets a single function, a 4PL targets management of the entire process. Some have described a 4PL as a general contractor that manages other 3PLs, truckers, forwarders, custom house agents, and others, essentially taking responsibility of a complete process for the customer.

Warehouse management and control

Although there is some overlap in functionality, warehouse management systems (WMS) can differ significantly from warehouse control systems (WCS). Simply put, a WMS plans a weekly activity forecast based on such factors as statistics and trends, whereas a WCS acts like a floor supervisor, working in real time to get the job done by the most effective means. For instance, a WMS can tell the system that it is going to need five of stock-keeping unit (SKU) A and five of SKU B hours in advance, but by the time it acts, other considerations may have come into play or there could be a logjam on a conveyor. A WCS can prevent that problem by working in real time and adapting to the situation by making a last-minute decision based on current activity and operational status. Working synergistically, WMS and WCS can resolve these issues and maximize efficiency for companies that rely on the effective operation of their warehouse or distribution center

Configuration and management

Similarly to production systems, logistic systems need to be properly configured and managed. Actually a number of methodologies have been directly borrowed from operations management such as using Economic Order Quantity models for managing inventory in the nodes of the network.[21] Distribution resource planning (DRP) is similar to MRP, except that it doesn't concern activities inside the nodes of the network but planning distribution when moving goods through the links of the network.

Traditionally in logistics configuration may be at the level of the warehouse (node) or at level of the distribution system (network).

Regarding a single warehouse, besides the issue of designing and building the warehouse, configuration means solving a number of interrelated technical-economic problems: dimensioning rack cells, choosing a palletizing method (manual or through robots), rack dimensioning and design, number of racks, number and typology of retrieval systems (e.g. stacker cranes). Some important constraints have to be satisfied: fork and load beams resistance to bending and proper placement of sprinklers. Although picking is more of a tactical planning decision than a configuration problem, it is important to take it into account when deciding the racks layout inside the warehouse and buying tools such as handlers and motorized carts since once those decisions are taken they will work as constraints when managing the warehouse, same reasoning for sorting when designing the conveyor system or installing automatic dispensers.

Configuration at the level of the distribution system concerns primarily the problem of location of the nodes in a geographic space and distribution of capacity among the nodes. The first may be referred to as facility location (with the special case of site selection) while the latter to as capacity allocation. The problem of outsourcing typically arises at this level: the nodes of a supply chain are very rarely owned by a single enterprise. Distribution networks can be characterized by numbers of levels, namely the number of intermediary nodes between supplier and consumer:

    Direct store delivery, i.e. zero levels
    One level network: central warehouse
    Two level network: central and peripheral warehouses

This distinction is more useful for modeling purposes, but it relates also to a tactical decision regarding safety stocks: considering a two level network, if safety inventory is kept only in peripheral warehouses then it is called a dependent system (from suppliers), if safety inventory is distributed among central and peripheral warehouses it is called an independent system (from suppliers).[17] Transportation from producer to the second level is called primary transportation, from the second level to consumer is called secondary transportation.

Although configuring a distribution network from zero is possible, logisticians usually have to deal with restructuring existing networks due to presence of an array of factors: changing demand, product or process innovation, opportunities for outsourcing, change of government policy toward trade barriers, innovation in transportation means (both vehicles or thoroughfares), introduction of regulations (notably those regarding pollution) and availability of ICT supporting systems (e.g. ERP or e-commerce).

Once a logistic system is configured, management, meaning tactical decisions, takes place, once again, at the level of the warehouse and of the distribution network. Decisions have to be made under a set of constraints: internal, such as using the available infrastructure, or external, such as complying with given product shelf lifes and expiration dates.

At the warehouse level, the logistician must decide how to distribute merchandise over the racks. Three basic situations are traditionally considered: shared storage, dedicated storage (rack space reserved for specific merchandise) and class based storage (class meaning merchandise organized in different areas according to their access index).
Picking efficiency varies greatly depending on the situation.[20] For man to goods situation, a distinction is carried out between high level picking (vertical component significant) and low level picking (vertical component insignificant). A number of tactical decisions regarding picking must be made:

    Routing path: standard alternatives include transversal routing, return routing, midpoint routing and largest gap return routing
    Replenishment method: standard alternatives include equal space supply for each product class and equal time supply for each product class.
    Picking logic: order picking vs batch picking

At the level of the distribution network, tactical decisions involve mainly inventory control and delivery path optimization. Note that the logistician may be required to manage the reverse flow along with the forward flow.

Transportation

Cargo, i.e. merchandise being transported, can be moved through a variety of transportation means and is organized in different shipment categories. Unit loads are usually assembled into higher standardized units such as: ISO containers, swap bodies or semi-trailers. Especially for very long distances, product transportation will likely benefit from using different transportation means: multimodal transport, intermodal transport (no handling) and combined transport (minimal road transport). When moving cargo, typical constraints are maximum weight and volume.

Operators involved in transportation include: all train, road vehicles, boats, airplanes companies, couriers, freight forwarders and multi-modal transport operators.

Merchandise being transported internationally is usually subject to the Incoterms standards issued by the International Chamber of Commerce.

Handling and order processing

Unit loads are combinations of individual items which are moved by handling systems, usually employing a pallet of normed dimensions.[18]

Handling systems include: trans-pallet handlers, counterweight handler, retractable mast handler, bilateral handlers, trilateral handlers, AGV and stacker handlers. Storage systems include: pile stocking, cell racks (either static or movable), cantilever racks and gravity racks.[19]

Order processing is a sequential process involving: processing withdrawal list, picking (selective removal of items from loading units), sorting (assembling items based on destination), package formation (weighting, labeling and packing), order consolidation (gathering packages into loading units for transportation, control and bill of lading).[20]

Picking can be both manual or automated. Manual picking can be both man to goods, i.e. operator using a cart or conveyor belt, or goods to man, i.e. the operator benefiting from the presence of a mini-load ASRS, vertical or horizontal carousel or from an Automatic Vertical Storage System (AVSS). Automatic picking is done either with dispensers or depalletizing robots.

Sorting can be done manually through carts or conveyor belts, or automatically through sorters.

Logistic families and metrics

A logistic family is a set of products which share a common characteristic: weight and volumetric characteristics, physical storing needs (temperature, radiation,...), handling needs, order frequency, package size, etc. The following metrics may be used by the company to organize its products in different families:[17]

    Physical metrics used to evaluate inventory systems include stocking capacity, selectivity, superficial utilization, volumetric utilization, transport capacity, transport capacity utilization.
    Monetary metrics used include space holding costs (building, shelving and services) and handling costs (people, handling machinery, energy and maintenance).

Other metrics may present themselves in both physical or monetary form, such as the standard Inventory turnover

Nodes of a distribution network


    Factories where products are manufactured or assembled
    A depot or deposit is a standard type of warehouse thought for storing merchandise (high level of inventory).
    Distribution centers are for order processing and order fulfillment (lower level of inventory) and also for receiving returning items from clients.
    Transit points are built for cross docking activities, which consist in reassembling cargo units based on deliveries scheduled (only moving merchandise).
    Traditional retail stores of the Mom and Pop variety, modern supermarkets, hypermarkets, discount stores or also voluntary chains, consumers' co-operative, groups of consumer with collective buying power. Note that subsidiaries will be mostly owned by another company and franchisers, although using other company brands, actually own the point of sale.

There may be some intermediaries operating for representative matters between nodes such as sales agents or brokers.

Business logistics

One definition of business logistics speaks of "having the right item in the right quantity at the right time at the right place for the right price in the right condition to the right customer".[15] Business logistics incorporates all industry sectors and aims to manage the fruition of project life cycles, supply chains, and resultant efficiencies.

The term "business logistics" has evolved since the 1960s[16] due to the increasing complexity of supplying businesses with materials and shipping out products in an increasingly globalized supply chain, leading to a call for professionals called "supply chain logisticians".

In business, logistics may have either an internal focus (inbound logistics) or an external focus (outbound logistics), covering the flow and storage of materials from point of origin to point of consumption (see supply-chain management). The main functions of a qualified logistician include inventory management, purchasing, transportation, warehousing, consultation, and the organizing and planning of these activities. Logisticians combine a professional knowledge of each of these functions to coordinate resources in an organization.

There are two fundamentally different forms of logistics: one optimizes a steady flow of material through a network of transport links and storage nodes, while the other coordinates a sequence of resources to carry out some project (e.g., restructuring a warehouse).

Military logistics

In military science, maintaining one's supply lines while disrupting those of the enemy is a crucial—some would say the most crucial—element of military strategy, since an armed force without resources and transportation is defenseless. The historical leaders Hannibal, Alexander the Great, and the Duke of Wellington are considered to have been logistical geniuses: Alexander's expedition, the longest military campaign ever undertaken, benefited consiberably from his meticulous attention to the provisioning of his army,[10] Hannibal is credited to have "taught logistics" to the Romans during the Punic Wars [11] and the success of the Anglo-Portuguese army in the Peninsula War was the due to the effectiveness of Wellington's supply system, despite the numerical disadvantage.[12] The defeat of the British in the American War of Independence and the defeat of the Axis in the African theater of World War II are attributed by some scholars to logistical failures.[13]
Military have a significant need for logistics solutions and so have developed advanced implementations. Integrated Logistics Support (ILS) is a discipline used in military industries to ensure an easily supportable system with a robust customer service (logistic) concept at the lowest cost and in line with (often high) reliability, availability, maintainability, and other requirements, as defined for the project.

In military logistics, logistics officers manage how and when to move resources to the places they are needed.

Supply chain management in military logistics often deals with a number of variables in predicting cost, deterioration, consumption, and future demand. The United States Armed Forces' categorical supply classification was developed in such a way that categories of supply with similar consumption variables are grouped together for planning purposes. For instance, peacetime consumption of ammunition and fuel will be considerably lower than wartime consumption of these items, whereas other classes of supply such as subsistence and clothing have a relatively consistent consumption rate regardless of war or peace.

Some classes of supply have a linear demand relationship: as more troops are added, more supply items are needed; or as more equipment is used, more fuel and ammunition are consumed. Other classes of supply must consider a third variable besides usage and quantity: time. As equipment ages, more and more repair parts are needed over time, even when usage and quantity stays consistent. By recording and analyzing these trends over time and applying them to future scenarios, the US Armed Forces can accurately supply troops with the items necessary at the precise moment they are needed.[14] History has shown that good logistical planning creates a lean and efficient fighting force. The lack thereof can lead to a clunky, slow, and ill-equipped force with too much or too little supply.

Logistics activities and fields

Inbound logistics is one of the primary processes of logistics concentrating on purchasing and arranging the inbound movement of materials, parts, or unfinished inventory from suppliers to manufacturing or assembly plants, warehouses, or retail stores.
Outbound logistics is the process related to the storage and movement of the final product and the related information flows from the end of the production line to the end user.
Given the services performed by logisticians, the main fields of logistics can be broken down as follows:
  • Procurement logistics
  • Distribution logistics
  • After-sales logistics
  • Disposal logistics
  • Reverse logistics
  • Green logistics
  • Global logistics
  • Domestics logistics
  • Concierge Service
  • RAM logistics
  • Asset Control Logistics
  • POS Material Logistics
  • Emergency Logistics
  • Production Logistics
  • Construction Logistics
  • Capital Project Logistics
  • Digital Logistics

Procurement logistics consists of activities such as market research, requirements planning, make-or-buy decisions, supplier management, ordering, and order controlling. The targets in procurement logistics might be contradictory: maximizing efficiency by concentrating on core competences, outsourcing while maintaining the autonomy of the company, or minimizing procurement costs while maximizing security within the supply process


Advance Logistics consists of the activities required to set up or establish a plan for logistics activities to occur.
Distribution logistics has, as main tasks, the delivery of the finished products to the customer. It consists of order processing, warehousing, and transportation. Distribution logistics is necessary because the time, place, and quantity of production differs with the time, place, and quantity of consumption.
Disposal logistics has as its main function to reduce logistics cost(s) and enhance service(s) related to the disposal of waste produced during the operation of a business.
Reverse logistics denotes all those operations related to the reuse of products and materials. The reverse logistics process includes the management and the sale of surpluses, as well as products being returned to vendors from buyers. Reverse logistics stands for all operations related to the reuse of products and materials. It is "the process of planning, implementing, and controlling the efficient, cost effective flow of raw materials, in-process inventory, finished goods and related information from the point of consumption to the point of origin for the purpose of recapturing value or proper disposal. More precisely, reverse logistics is the process of moving goods from their typical final destination for the purpose of capturing value, or proper disposal. The opposite of reverse logistics is forward logistics."
Green Logistics describes all attempts to measure and minimize the ecological impact of logistics activities. This includes all activities of the forward and reverse flows. This can be achieved through intermodal freight transport, path optimization, vehicle saturation and city logistics.
RAM Logistics (see also Logistic engineering) combines both business logistics and military logistics since it is concerned with highly complicated technological systems for which Reliability, Availability and Maintainability are essential, ex: weapon systems and military supercomputers.
Asset Control Logistics: companies in the retail channels, both organized retailers and suppliers, often deploy assets required for the display, preservation, promotion of their products. Some examples are refrigerators, stands, display monitors, seasonal equipment, poster stands & frames.


Emergency logistics (or Humanitarian Logistics) is a term used by the logistics, supply chain, and manufacturing industries to denote specific time-critical modes of transport used to move goods or objects rapidly in the event of an emergency.[6] The reason for enlisting emergency logistics services could be a production delay or anticipated production delay, or an urgent need for specialized equipment to prevent events such as aircraft being grounded (also known as "aircraft on ground"—AOG), ships being delayed, or telecommunications failure. Humanitarian logistics involves governments, the military, aid agencies, donors, non-governmental organizations and emergency logistics services are typically sourced from a specialist provider.[6][7]
The term production logistics describes logistic processes within a value adding system (ex: factory or a mine). Production logistics aims to ensure that each machine and workstation receives the right product in the right quantity and quality at the right time. The concern is with production, testing, transportation, storage and supply. Production logistics can operate in existing as well as new plants: since manufacturing in an existing plant is a constantly changing process, machines are exchanged and new ones added, which gives the opportunity to improve the production logistics system accordingly.[8] Production logistics provides the means to achieve customer response and capital efficiency. Production logistics becomes more important with decreasing batch sizes. In many industries (e.g. mobile phones), the short-term goal is a batch size of one, allowing even a single customer's demand to be fulfilled efficiently. Track and tracing, which is an essential part of production logistics due to product safety and reliability issues, is also gaining importance, especially in the automotive and medical industries.
Construction Logistics is known to mankind since ancient times. As the various human civilizations tried to build the best possible works of construction for living and protection. Now the construction logistics emerged as vital part of construction. In the past few years construction logistics has emerged as a different field of knowledge and study within the subject of supply chain management and logistics.
Digital logistics is driven by a new generation of web-based, enterprise logistics applications that enable collaboration and optimization, leveraging a central logistics information backbone that provides visibility across the enterprise and extended supply chain.


Origins and definition

The prevalent view is that the term logistics comes from the late 19th century: from French logistique (loger means to lodge) and was first used by Baron de Jomini. Others attribute a Greek origin to the word: λόγος, meaning reason or speech; λογιστικός, meaning accountant or responsible for counting.[1]
The Oxford English Dictionary defines logistics as "the branch of military science relating to procuring, maintaining and transporting material, personnel and facilities". However, the New Oxford American Dictionary defines logistics as "the detailed coordination of a complex operation involving many people, facilities, or supplies," and the Oxford Dictionary on-line defines it as "the detailed organization and implementation of a complex operation".,[2] As such, logistics is commonly seen as a branch of engineering that creates "people systems" rather than "machine systems."
According to the Council of Supply Chain Management Professionals (previously the Council of Logistics Management)[3] logistics is the process of planning, implementing and controlling procedures for the efficient and effective transportation and storage of goods including services and related information from the point of origin to the point of consumption for the purpose of conforming to customer requirements and includes inbound, outbound, internal and external movements. [4]
Academics and practitioners traditionally refer to the terms operations or production management when referring to physical transformations taking place in a single business location (factory, restaurant or even bank clerking) and reserve the term logistics for activities related to distribution, that is, moving products on the territory. Managing a distribution center is seen, therefore, as pertaining to the realm of logistics since, while in theory the products made by a factory are ready for consumption they still need to be moved along the distribution network according to some logic, and the distribution center aggregates and processes orders coming from different areas of the territory. That being said, from a modeling perspective, there are similarities between operations management and logistics, and companies sometimes use hybrid professionals, with for ex. "Director of Operations" or "Logistics Officer" working on similar problems. Furthermore, the term supply chain management originally refers to, among other issues, having an integrated vision in of both production and logistics from point of origin to point of production.[5] All these terms may suffer from semantic change as a side effect of advertising.
Logistics is generally the detailed organization and implementation of a complex operation. In a general business sense, logistics is the management of the flow of things between the point of origin and the point of consumption in order to meet requirements of customers or corporations. The resources managed in logistics can include physical items such as food, materials, animals, equipment, and liquids; as well as abstract items, such as time and information. The logistics of physical items usually involves the integration of information flow, materials handling, production, packaging, inventory, transportation, warehousing, and often security.
In military science, logistics is concerned with maintaining army supply lines while disrupting those of the enemy, since an armed force without resources and transportation is defenseless. Military logistics was already practiced in the ancient world and as modern military have a significant need for logistics solutions, advanced implementations have been developed. In military logistics, logistics officers manage how and when to move resources to the places they are needed.
Logistics management is the part of supply chain management that plans, implements, and controls the efficient, effective forward, and reverse flow and storage of goods, services, and related information between the point of origin and the point of consumption in order to meet customer's requirements. The complexity of logistics can be modeled, analyzed, visualized, and optimized by dedicated simulation software. The minimization of the use of resources is a common motivation in all logistics fields. A professional working in the field of logistics management is called a logistician.

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