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Logistics: Transportation Management

transportation-management

The final part of a warehouse activity is shipping goods to customers according to their orders. At first glance it seems simple so that this shipping activity sometimes tends to ignore the basic rules in the procedure of shipping goods. 

Once again, keep in mind, delivery of goods is the act of removing goods from the warehouse, meaning that if the activity is carried out in accordance with applicable procedures, the result is most likely correct. And conversely, if the activity is carried out in violation of applicable procedures, it is likely that the results will be problematic. 

Goods Delivery Procedures and Processes 

The following is a sequence of goods delivery processes in the warehouse, namely:

1. Picking 

The beginning of this process actually starts with the picking process. Picking is the process of preparing goods according to an order letter and placing them at a predetermined departure location. This process becomes very important in dispatching because it will determine whether or not the goods to be sent are correct.

2. Checking and Packing

The next process is checking and packing. This process aims to group the order of departure according to the delivery destination address. Usually if the shop will be sent first, then the goods will be loaded into the truck last and conversely the shop that was last visited, then the goods will be loaded into the truck first.

3. Loading

Next is the loading process. The loading process is an activity where goods are loaded or loaded into trucks for further delivery to their respective destination addresses. 

In this process, there is a transaction between the transporter or driver and the warehouse party represented by the checker. This is the part that really needs to get more attention because that's when the correct item and the destination address are determined. The handover process needs to be carried out clearly so that accountability for problems that will arise can be accounted for.

Some things that need to be considered in this process include the physical integrity of the goods (not damaged/broken or defective), the quantity and type of the goods are in accordance with the designation document, the destination area is in the correct order of the route and make sure there is a handover sign (initial/name of the driver and car number and departure time) from the warehouse and complete documents correctly.

4. Preparation of Safe and Comfortable Vehicles

Not only humans who need safe and comfortable conditions on their journeys, goods also demand the same thing. In shipping goods, make sure that the vehicle used has a box that does not leak, a safe lock and completeness and excellent engine condition. 

If shipping goods that require special temperature handling, make sure that the temperature thermostat is functioning properly so that the temperature conditions of the goods safely arrive at their destination.

Problems that often arise in shipping are damage to goods and errors in unloading goods. Damage is often caused by the driver being undisciplined in running his vehicle, whether he frequently applies the brakes suddenly or deliberately misses the vehicle on a potholed road at high speed.

The type of damage that occurs is not only due to breakage, but also wetness due to spills or damage inside the packaging that is not visible to the eye.

There is one standard rule that must be carried out by the driver in shipping, namely recording the time of departure and arrival at the destination address accompanied by the number of Kilometers achieved.

5. The process of loading and unloading goods

The process of unloading goods at the destination has almost the same meaning as when loading goods. The difference is in the process of unloading goods, the one who delivers the goods is the driver and the recipient is the shop or outlet. 

All documents and activities are similar, only the difference (and this is the most crucial) is that the driver acts as a representative of our company. The question is: "Can the driver represent the company and act like a company staff?"

Activities that must be studied at the time of unloading goods at the destination are the arrival schedule which must be in accordance with the available time and (better) if the arrival is in the early or late order to speed up the unloading process. 

Drivers should know the shortcut to their destination and what time is busy, so waiting times can be shortened. Sometimes, the driver knows better who he has to meet so that the job can be completed quickly. 

Unfortunately, this condition is often used as an excuse for drivers to pay extra without a receipt, therefore the safest tip is to always analyze the waiting hours that occur for evaluation in the future.

The simple thing and should not be forgotten is the completeness of documents and the completeness of promotional items, returns/exchanges and gifts or leaflets that may be available. 

Why is this important? Based on experience in the field, there are many shops or outlets that only because of these things are not willing to accept the goods sent, even the worst thing is that the goods are received but they do not want to pay the bill.

Things that are often forgotten after delivery of goods

Based on experience, there are several processes that are often neglected in shipping goods, namely post-delivery. There are several processes that must be carried out after the delivery activity is carried out including:

Prove on Delivery (POD)

This activity serves to ensure that the entire process of shipping goods has been carried out properly, according to the documents and has been updated in the delivery system. With the POD process, all activities from the time of order, preparation, delivery and the driver's return to the warehouse will be updated properly.

Return / Damage Process

This process “usually” becomes the most “annoying” activity for both the driver and warehouse staff. Damaged goods or returned goods always have the connotation of 'smell' and 'dirty', even though for companies there is no difference between the value of damaged goods and good goods, the COGS remains the same (the purchase price). 

The correct procedure is that all returned or damaged goods must be processed once the POD process is carried out (Don't Delay). Make sure that the POD process is also a process that involves the process of how many goods are sent and what price must be cut because of returned or damaged goods.

Truck Preparation 

truck-wash

Truck preparation is cleaning the box from all the contents in it. It looks trivial. However, there are many incidents in the warehouse which are a bit late because the driver needs to clean the car box first before loading the goods into it. 

Make this a habit (habit) for every driver to do this, plus wash the vehicle so that it is ready for use the next morning.

Important tips:

a. Delivery of goods is the most critical part in a logistics chain. This is because the goods will come out of their storage in this process, if they are issued with the correct procedure, the data will also be correct. But if removed with the wrong procedure, it will be fatal.

b. There are several stages of the process in the delivery of goods that must be carried out properly so that consumer satisfaction and the accuracy of goods data are maintained.

c. Efficiency of Logistics Transportation 

The world of logistics cannot be separated from transportation. Indeed, the elements of logistics globally consist of 4 points, namely:

  • Warehouse
  • Transportation
  • Management
  • System

However, if it is calculated from the elements of costs that arise due to logistics activities, the element of transportation becomes number one, which is around 60%-75% of all logistics costs. which are issued.

Transportation is closely related to trucks or cars. But literally transportation is the activity of moving an item between warehouses or between destinations. To move it is a necessary means of transportation and one of them is a truck.

As a supporter of logistics activities in the company, transportation always tries to provide a minimum cost for a given logistics activity. In order to minimize this cost, it is necessary to have data that can measure which points can be streamlined or if necessary eliminated without disturbing the smooth running of operational activities. 

If it has been found which parts can be streamlined, then we must be able to prioritize which ones must be carried out first so that one stage with another stage will not interfere with each other or be counter-productive.

If transportation is ranked first in terms of costs or about 60% of the total logistics costs, then naturally we all have to concentrate on how to streamline the costs caused by this transportation.

The problem is, not all logistics activities have their own means of transportation. Many of them depend on their 'cost fate' to a third party or better known as 3rd party logistics (3PL).

Here are some ideas and breakthroughs in dealing with transportation problems that you can try, including:

1. Managing transporters as partners

For companies that have policies to minimize investment in transportation, it is necessary to work closely with transporter friends so that they can provide optimal services. 

However, partnering is not the same as buying or selling services, it is necessary to clarify the origin (if the Javanese language is seeds, bebet and weight) and the potential risks of our potential partners.

The steps are as follows:

Perform an assessment of the transporter who proposes for cooperation

Assessment is carried out on the office, pool, vehicle and administrative management pattern and the transportation company's employees. To facilitate this assessment, the company should have a transportation management team consisting of operations, finance and HR. This team will conduct an assessment and provide a proper and independent assessment of this potential partner.

Do a comparison of shipping costs with other similar companies

Comparisons should be made to find the cheapest but adjusted to the service standard requested. For example, for the Oil industry, it may be a little more expensive because it has to meet very high safety requirements.

For some warehouses that have a clear delivery schedule or with very high loads, an alternative can also be taken to do a car rental contract. Several contracts have been executed and the results are more effective, and in fact can reduce the costs incurred.

Conducting training 

This training is mandatory and necessary to equalize the perception of our partners about our company. Imagine, if there is a driver who does not know the company that asks for his services and does not know what he sends every day in his truck, how sad. 

Please try to test some drivers and ask the above. Training is also good for applying discipline, security and safeguarding the handling of dangerous goods.

Consolidating delivery destinations

Actually this idea is very natural in every truck driver's head. They've combined deliveries in the same truck to multiple destinations one way, and the results: absolutely stunning. It is not wrong if we also imitate the idea but with a better calculation. 

Let's look for companies that have similar ideas and shipping patterns so that between the two can get significant savings. It's just that in this case, it is necessary to pay attention to the safety of goods and the lead time that must be achieved.

Consolidating transporters

An interesting saying in business, "Shopping a lot will be cheaper than shopping retail". So what if some contracts are served by 1 or 2 transporters instead of being managed by 5 or 10 transporters?

What is certain is that the price per unit of shipment will be lower because of the high volume for the transportation company. The only thing that needs to be maintained is to avoid the occurrence of a transportation monopoly so that it can disrupt the smooth operation.

Have your own transportation fleet

This idea may be studied and explored so that the decisions taken and approved by management will actually have the expected impact. There are risks and benefits to be gained if the company has its own transportation fleet. Which one is better to have your own truck or not, please analyze it according to each condition.

Scheduling orders and delivery

This idea is a combination of previous ideas with the pattern of warehousing management services. There is nothing wrong if the transportation or warehouse staff give the leadership a brilliant idea to reduce shipping costs through order scheduling and delivery. 

If there is an agreed schedule, analyze how many vehicles are needed and how they are procured, rent or remain a partner as usual. If it is necessary to combine the 4th idea, is it better for the company to have its own vehicle?.

Whatever we do with transportation activities in warehouse services to customers, it is necessary to ensure that safety and work safety remain number one. 

Efficiency without taking into account security and safety is not appropriate. An ideal transportation management is how we send goods to customers safely, safely, quickly, informatively and cheaply.

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