Logistics Management

A. Definition

Logistics is a term associated with the movement and storage of produced or procured goods (equipment and bulk materials) and cargoes for the construction or other using.

Logistics Management is a work process of the procurement management that is a part of the supply chain management including logistics planning, implementation, and control of the produced procured items effectively and efficiently. The Logistic Management consist of the transportation for movements, warehouse management for storage, and information management such as related information from the point of origin to the point of end user; inbound and outbound movement; internal and external interfaces for the customs clearances to achieve the timely in its delivery with cost effective way and meeting the project or contract requirements.

Procurement is a work process of obtaining or buying goods, services and getting suppliers, and deliver procured items to the project team, mainly construction site. A Procurement Management is a work process of managing and controlling the procurement activities (procurement work process: bidder list; bidding; contracting; expediting and inspection; transportation; close-out; etc.) to supply required equipment and materials or services to the project team on time, within budget and respected quality and quantity. The procurement work process is developed based on a fair and open competition.

Supply Chain (SC) is to cover the entire physical process of procurement work from obtaining the raw materials through all process steps until the final product are delivered, installed and tested at the site. The Supply Chain includes a source of raw material, fabrication or manufacture, logistics, expediting and inspection, end-user, and so on. A Supply Chain Management (SCM) is managing and controlling the supply chains effectively and efficiently to support the project and future business requirement.

B. Logistics Work Flow


C. Other Definitions

Cargo is goods and materials carried by a truck, ship or aircraft.

Transportation (or Transport) is 1) movement of people or goods, or cargoes from one place to another; 2) a system of vehicles; 3) a process of moving goods or cargo.

Inbound means traveling into a place or return leg of the journey (Import)

Outbound means traveling away from a place or departing first leg of the return journey (Export)

Customs Clearance is a gateway pass certificate of the imported or exported goods, materials or cargoes that the national customs authority grants to enter or leave the country. The Customs Clearance is typically given to a shipping agent or freight forwarder to prove that all applicable customs duties have been paid and the shipment has been approved.

Incoterm is an international commercial terms made by the International Chamber of Commerce (ICC) that is used in international commercial trading or procurement processes. (e.g. Ex-Work/ FOB (Free on Board)/ FAS (Free Alongside Ship)/ C&F (Cost & Freight)/ CIF (Cost, Insurance & Freight, etc.))

Tariff is a term and condition of taxes or charges for the import or export.

Freight Forwarder is a company or an organisation that specialized in arranging storage and shipping of goods or cargoes on behalf of its shippers. The Freight Forwarder usually provides a full range of services including: tracking inland transportation; preparation of shipping and export documents; warehousing, booking cargo space; negotiating freight charges; freight consolidations; cargo insurance, and filing of insurance claims. The Freight Forwarder usually ship under his own bill of loading or airwaybill with his agents or associates at the destination provides document delivery, deconsolidation, and freight collection services.

Warehouse is a large building where raw materials or manufactured goods are stored prior to their usage or distribution for sale.

Warehouse Management aims to control the movement and storage of materials within a warehouse efficiently and effectively.

Warehouse Management System (WMS) is a software application, designed to support warehouse or distribution center management and staff. They facilitate management in their daily planning, organizing, staffing, directing, and controlling the utilization of available resources, to move and store materials into, within, and out of a warehouse, while supporting staff in the performance of material movement and storage in and around a warehouse. (Source: Wikipedia)

Overage, Shortage and Damage (OS&D) report is prepared and developed by the buyer's organisation at the time of goods or cargo (equipment and materials) are delivered at the receiving area (mainly, construction site of warehouse), or handed over them from the supplier based on the purchasing document.

Marine Cargo Insurance is an insurance of property as it moves from place to place. The Marine Cargo Insurance covers the loss of or damage to goods or cargo while in sea and air as well as subsequent land transportation both domestic and international, and transportation intermediaries and logistics service providers between the points of origin and final destination.

Shipping Insurance can be applied for goods are transported by mail or courier services instead of the Marine and Cargo Insurance.