Cindy Palmer

UNIT 9 ASSIGNMENT

TLIL5019A IMPLEMENT AND MONITOR TRANSPORT LOGISTICS

Submission Evidence:You are to submit the following items to evidence your undertaking of this task:

Completed questions 1-10 (Task 1) Mobilise resources report (Task 2) Co-ordinate multi-modal transport activities report/presentation (Task 3A) Example of completed document – personally signed (Task 3B) Monitor consignment tracking report (Task 4) Implement contingency management strategy report (Task 5)

Task 1: Knowledge Questions

Answer each of the 10 questions below:

1. What kinds of freight require special transport arrangements and high levels of resourcing?

Includes but not limited to:

Wide loads (e.g. machinery, buildings) Raw Materials (e.g. liquid, gas or minerals) Bulk Materials (e.g. coal, sugar or fuel) Dangerous Goods Sensitive Equipment/Fragile Goods Perishable Goods (e.g. chilled/frozen fresh food) Medicines and Medical Equipment High Security Goods

2. How do you evaluate the most suitable mode of transport and route to meet a customer’s requirements? Decide what is required – look closely at the operational schedule and work out

what goods need to be transported, where they have to go, and at what time they must arrive.

Analyse the operational schedule – the operational schedule contains all the resources that need to be procured, gathered, allocated and used in the delivery within the required timeframe to meet customer expectations.

Develop operational checklists – this should include but not limited to product characteristics, methods of loading and delivery, restrictions at the point of loading or delivery, terrain to be covered, fuel type, vehicle configuration, body

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types, legal requirements, vehicle economy, driver cab type’s, ancillary equipment and vehicle security.

Working out required resources – the biggest influence on working out resource requirements is the cost ratio between the cost of the product and the cost of the freight required to get a consignment to its destination.

Required mode of transport – is decided by either yourself, the client or the destination. The mode of transport selected heavily influences the people and equipment required. The five modes of transport most commonly used are road, rail, air, sea and pipe. The four most influential factors that impact this decision are the time the customer requires the goods to be delivered, the price they paid to do it, the infrastructure requirements and stakeholders involved (Government, industry, private venture).

3. How do you analyse and monitor the quality of your company’s transport operations?

Once all the information has been gathered, you need to analyse whether it is achievable. Several adjustments may need to be made until it is right. Using a software program to assist may make the job easier. Also, there are several systematic approaches that have been developed, some have very obvious similarities between these different approaches. These approaches are:

Balanced Scorecard – this translates the strategic mission of a business operation into tangible objectives and measures. These can be passed up and down a division so that realistic and useful KPI’s can be developed.

SCOR Model (Supply Chain Operations Reference Model) – this has been developed as an aid to cost and performance monitoring. It is a very process orientated approach, where the initial aim is to benchmark, refine and improve key operational processes and then to identify and introduce key measures that monitor set cost and performance targets. Eventually, the major company performance attributes are identified and the appropriate metrics are developed.

Integrated Supply Chain Approach – is a process orientated approach that attempts to enable cost and performance monitoring to be based on a horizontal view of the business rather than a traditional vertical, silo based functional structure. It recognises that a total systems approach can be adopted for the whole business or supply chain and that any performance metrics should be developed on this basis.

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4. What strategies could you use for evaluating and improving the environmental performance of your company’s transport operations?

Deciding on what action to take after working out the level of risk associated with a contingency occurring can be done by using one or more of the following risk management option:

Avoidance – No contingency plan is put in place. Mitigation (of likelihood) – Action selected focuses on making a risk less likely to

occur. Mitigation (of consequence) – Action is taken to reduce the impact when a

contingency does occur. Transference (in full or in part) – Risk is transferred so another party bears all or

some part of the risk. Acceptance – Risks associated with contingencies are accepted as inevitable and

treated, monitored and reviewed regularly to ensure they are contained. Exploit – Steps are taken to seize opportunities which have positive effects. Share – Positive risks are shared with a third party to make it more likely a

positive opportunity is seized. Enhance – Actions are taken to increase the likelihood of a positive risk occurring.

After deciding what action to take for the risk associated with a contingency, a risk treatment schedule or action plan can be formulated. The plan should list:

Risk and their rating Risk priority order Possible treatment options Preferred treatment options Timelines for implementation of risk treatment actions How risk treatment actions will be monitored.

Giving a large share of the business to a preferred carrier and a smaller share to a competing carrier is one strategy.

5. How do you plan ahead to cope with unforeseen changes to operational schedules, issues and incidents?

Throughout the transport logistics process, you should regularly check information updates, reports and feedback to check your operational schedule is on track. Gathering data will help management identify any problems as soon as possible and take any necessary corrective action(s). Quality Tools that are used at all levels of an organisation are typically used to analyse and review activities and uncover inefficiencies or true, causes of why an issue occurred. The main Quality Tools are:

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The ‘5 Whys’ – asking ‘Why’ at least 5 times to uncover root cause of a problem.

Flowcharts – found in business process modelling. Uses boxes and arrows method of examining activities, potentially used in brainstorming.

Fishbone/Ishikawa Diagrams – identifies cause/effect patterns, in which primary categories are generally pre-determined according to context.

PDCA (plan-do-check-act or plan-do-check-adjust) – is an iterative four-step management method used in business for the control and continuous improvement of processes and products.

Run Charts – a graph that plots data/change along a timeline.

Pareto Charts – a line and bar graph displaying cause/effect ratios, especially biggest relative cause.

Histograms – a bar graph displaying data in simple categories which together account for a total.

Checklists/Check Sheets – pre-formatted lists for noticing incidence, frequency, etc. according to known useful criteria.

Control/Shewhart Charts – standard patterns of performance/time for a given process, often in Run Chart format, which acts as a template to check conformance and deviation.

Scatter Diagram/Scatterplot – a graph that plots points according to two variables, which produces a useful visual indication of the relationship between the two variables.

6. How do you ensure smooth communications between staff and/or between staff and personnel from a wide variety of agencies, customers and freight providers (possibly from overseas)?

Electronic Data Interchange (EDI) – is an electronic communication system that provides standards for exchanging data via any electronic means and can be defined as computer-to-computer exchange of structured data for automatic processing. Two different companies in two different countries, can electronically exchange documents (such as purchase orders, invoices, shipping notices and many others). There may be one of several or a combination of several interfaces such as:

Serial communication Internet Peer to Peer Value added networks

The advantages include:

Reduced inventory costs

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Increases accuracy Decreases errors Enhance visibility Improved operational efficiency Increased ROI Works very well with just in time (JIT) systems

7. Explain your understanding of Chain of Responsibility in relation to the operational plan?

The days of ‘all care and no responsibility’ are over. With the new laws, everyone in the supply chain (not just the driver) must take ‘reasonable steps’ to manage the causes of heavy vehicle driver fatigue. You can be held legally accountable if your actions, inactions or demands cause or contribute to road safety breaches.

Known major causes of fatigue such as dangerous work schedules and long truck queues ensure the employees and customers are held accountable. You are required by law to take reasonable steps to prevent your conduct from causing or contributing to a breach. By law you are also prohibited from:

Making demands that you know or ought to know would cause a breach; Entering into contracts that you know or ought to know would cause, encourage

or give an incentive for a breach; Coercing, inducing or encouraging breaches; and Passing on false or misleading information that could cause a breach.

8. Explain your understanding of multi-modal and inter-modal freight?

Multi-Model freight – is the use of several different types of transport modes to complete the transport logistics activities. It can include the movement of passengers, cargo and freight from one mode of transport to another, usually taking place at terminals designed for a specific purpose.

Intermodal freight – is the use of containers or intermodal transport units (ITU) for transporting goods and transferring them between multiple modes of transport (rail, ship, air, road and or pipe) without the need to physically handle the goods while changing transportation modes.

9. Explain RFID and its benefits and advantages?

Radio Frequency Identification (RFID) – is incorporated into a product for the purpose of identification using radio waves. The RFID tags require a reading device and interface computer to process the information. The RFID tags or transponders are an automatic identification method that rely on remotely retrieving and storing data. It allows people to more effectively and efficiently record tracking, monitoring, reporting and managing products, documents and assets anywhere at any time.

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The RFID technology:

Reduces the manpower needed, Saves time as a RFID can scan up to 1,000 boxes per second, Has a high level of security and data cannot be hacked, Communicates constantly and assists in contingency planning.

10. Explain your understanding of what 4PL means?

4PL is Fourth Party Logistics Providers or also known as ‘Lead Logistics Providers’, they differ from 3PL’s (Third Party Logistics Providers) by:

Being a separate entity established as a joint venture or long-term contract between a primary client and one or more partners;

They act as a single interface between the client and multiple logistics service providers;

All of the clients supply chain aspects are managed by the 4PL organisation; and Major third party logistics providers may possibly form a 4PL organisation within

its existing structure.

The 4PL has been originally defined as “A supply chain integrator that assembles and manages the resources, capabilities, and technology of its own organisation with those of complimentary service providers to deliver a comprehensive supply chain solution,” but is no longer registered.

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Task 2: Mobilise ResourcesReview the table below and, using the information, prepare a report that identifies the resources that would be required to operate a warehouse that handled these liquor products and required functions associated with transport logistics.

The details provided on the following page indicate some resource levels. You can also assume the following:

1. The freight ships from overseas in bulk containers (no pallets)2. interchange at the seaport is to road transport with a 10km journey to the distribution

centre(DC) 3. The DC only operates between 6am – 6pm

For your report you will need to consider: size of property size of warehouse and set up – free store/bond store required/loading docks, parking etc. transport fleet - types and mix required MHE racking vs. floor stacking container quantity / pallets turned over use of cross docking communication and information systems (for example who, when, what real time, EDI,

channels) dangerous goods and alcohol (storage, segregation, transport, quarantine) customs requirements for alcohol (for example importing, bond, excise) insurance (for example in transit, fleet, stock, facilities, MHE) security factors (for example on-site, off-site with patrols, stock value, access control,

pilfering) risk management applicable to site and functions outsourcing components of operations to manage changes in resources available. E.g. staff,

equipment, oversupply etc.

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Resource Level DetailsAverage Week AnnualisedLiquor Total Liquor Total

$ Projected $1,674,750 $87,087,000Avg Ctn $ $29.00 $29.00Cartons 57,750 3,003,000Containers inbound 1265 ctn Avg

46 2392

Ctn/Plt Inbound equivalent 61 61Ctn/Plt Outbound actual 70 70Pallets Received equivalent 947 49,244Pallets Dispatched 825 42,900Throughput (Ctn/Hrs) 28 28Hours 2062.5 107250Heads (FTE) 55 55 FTE: Full time

equivalentCost Per Hr $38.15 $38.15Labour Cost $78,685 $4,091,620Labour Cost Per Carton $1.37 $1.37Overheads $20,660 $1,074,320Total Cost $99,345 $5,165,940Total Cost Per Carton $1.72 $1.72Total Cost as % of $ Projected 5.94% 5.94%

DSOH 22 22 DSOH:

Day stock on hand

SKU's 580 580 SKU: Stock keeping unitPallets Reserve 2,975 2,975

Stores 70 70Avg Delivery Frequency 2 2Orders/Wk 140 140Avg Ctns/Delivery 403 403Pallets / Delivery D/O 5.9 5.9

% of CAC Hotel Business 13% 13%% of New Distribution Business

87% 87%

Stock Make Up: Beer Stock Make Up: Wine & Spirits

Height: 215mmWeight: 275mmLength: 415mmCubic Size: 0.0251

Height: 325mmWeight: 260mmLength: 325mmCubic size 0.0275

Additional Supporting Information

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1TEU = 33.2m3 1322 Beer or 1207 Wine/Spirits

1FEU = 67.7 m3 2697 Beer or 2461 Wine /Spirits

1 container per SKEL 22 pallets per truck (6 pallets in tail lift truck)

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RESOURCES NEEDED TO OPERATE WAREHOUSE FOR

IMPORT AND DISTRIBUTION OF LIQUOR.

1 EXECUTIVE SUMMARY

CA City Hotel and CA City Logistics board members have decided to embark on a joint venture importing and distributing liquor. Both boards have recognized the value of establishing a 3PL/4PL joint venture, as there are synergistic benefits. The freight ships in from overseas in bulk containers (no pallets), so a sufficient area will need to be purchased to accommodate the unloading and stacking onto empty pallets, storage of empty pallets and a Bonded Storage Area.

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2 TABLE OF CONTENTS

1 Executive Summary 1

2 Table of Contents 2

3 Introduction 3

4 Findings 3

4.1 Size of Property 3

4.2 Size of Warehouse and Set-up 6

4.3 Transport Fleet and Equipment 8

4.4 Warehouse Equipment 8

4.5 Licenses’ and Permits 9

4.6 Insurance 9

4.7 Security 10

4.8 Risk Management 10

4.9 Outsourcing 13

5 Conclusions and Recommendations 13

LIST OF TABLES

Table 1: Property Layout 4

Table 2: Index for Property Layout and Warehouse Layout 5

Table 3: Warehouse Layout 7

Table 4: Risk Assessment Plan 11

Table 5: Risk Matrix 12

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3 INTRODUCTION

As Operations Manager I have been tasked with identifying the resources that would be required to operate a warehouse that can handle liquor products, the required functions associated with transport and compliance with the Department of Immigration and Customs regulations and documentation. Under the Findings heading there is information on resources required for this task. Researching, discussions with stakeholders and previous experience have led to these findings. The conclusion will discuss what has been achieved and the significance of the findings and the recommendations achievable.

4 FINDINGS

The following is a list of the resources required to operate a warehouse that handles these liquor products, the equipment required and a secure bonded store area:

4.1 SIZE OF PROPERTYThe size of the property needed will have to be sufficient enough to accommodate:

Offices and Amenities Warehouse Container unloading area Empty pallet storage Empty container storage Truck loading area Employee carpark Truck and trailer parking Workshop Fueling station Electric forklift charging area

See Table 1: Property Layout

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Table 1: Property Layout

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Table 2: Index for Property Layout and Warehouse Layout

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4.2 SIZE OF WAREHOUSE AND SET-UP

The warehouse will need to be set-up with the following areas:

Stock Storage area Damaged Stock Storage Bonded Stock Storage area Damaged Bonded Stock Storage area Revivals’ area Dispatch area Undercover container unloading area

See Table 3: Warehouse Layout

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Table 3: Warehouse Layout

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4.3 TRANSPORT FLEET AND EQUIPMENT

There will be a need for a mixture of trucks and trailers to ensure the right equipment is available for pick-ups and deliveries. These include:

2 x 10ft rigids with tuck away tail-lifts 2 x 45ft tautliner trailers with grocery gates and straight deck 2 x pallet jacks for rigid trucks 2 x skeletal trailers 1 x swinglift trailers 6 x prime movers Vehicle and trailer tracking system 5 x container ramps 1 x container frame forklift (for loading/unloading both full/empty containers)

4.4 WAREHOUSE EQUIPMENT

Equipment for the warehouse to be able to run efficiently and safely will include:

Pallet racking for stock storage (each racking bay is 2 plts wide x 3 plts high) at least 200ft of racking needed

Safety Equipment e.g. safety bollards, painted walkways Sufficient lighting 3 x diesel forklifts 2 x electric forklifts 2 x pallet wrapping stations Secure, fenced and locked Bonded Storage area RFID system Packaging materials Product labelling and identification Safety signs and equipment Industrial extractor fans in warehouse, tunnel and workshop

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4.5 LICENSES’ AND PERMITS

There is licenses’ and permits that need to be obtained from the appropriate authorities:

Warehouse license for storage of Excise Equivalent Goods (EEGs) Permit to Bring or Import Goods into Australia Dangerous goods permit

4.6 INSURANCE

There are compulsory insurance needs that need to be included within the insurance policies. The compulsory insurance is:

Workers Compensation insurance CTP (compulsory third party) Any insurance required by Department of Immigration and Customs (Bonded Store)

After identifying and evaluating possible risks and preparation of a risk management plan, this has helped to decide which risks to insure against:

Fire and Flood Business interruption Public Liability Employees’ Liability – this includes workers’ compensation, which is compulsory for all

businesses employing staff Burglary Products Liability Professional indemnity Electronic breakdown General property Marine and transit Motor fleet insurance Directors’ and officers’ liability Employment practices liability

An insurance broker will be hired to provide advice and to put together a cost effective package.

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4.7 SECURITY

A number of security measures will be put in place both inside the warehouse and within the perimeter of the property, these measures are:

Security cameras strategically positioned within the warehouse and property Secure, fenced and locked Bonded area Security gate, gatehouse and 2 security guards to man the gatehouse and patrol the property Exit security gate with cameras and intercom to gatehouse.

4.8 RISK MANAGEMENT

A risk assessment with the following tables will help assess the risks associated with a contingency. They will help you decide whether a risk is minor and acceptable, or major, requiring a response.

See Table 4: Risk Assessment Plan

See Table 5: Risk Matrix

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Table 4: RISK ASSESSMENT PLAN

WHAT IS THE RISK:NATURE OF THE RISK:

Political Commercial Relationships

Financial Management Processes

Technological Legislative/Regulatory Non-Compliance

Other: Natural Event/Act of God

Stakeholders Name Department

Scope of Risk Assessment: Nature of Scope:Limit of Scope: Finance/Budget

Project OHSDepartment Regulatory ComplianceOther: Other:

Legislative Impact:Duty of care Freedom of informationCompany law Industrial relations lawContract law Privacy and confidentiallyEnvironmental law Local council laws

Goals for Risk Assessment: Specific, Measureable, Achievable, Relevant, Timely

Communication and Stakeholder Management Strategy:Stakeholder Preferred Communication Method

Invitation to Participate Draft Wording:

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LIKELIHOOD

CONSEQUENCESCatastrophic (5)Death or large number of serious injuries, environmental disaster, huge cost

Major (4)Serious or extensive injury, severe environmental damage, major cost

Moderate (3)Medical treatment required, contained environmental impact, high cost

Minor (2)First aid treatment required, some environmental and/or financial impact

Insignificant (1)No injuries, low financial environmental impact

Almost certain (A)Expected to occur in most circumstances

HIGH HIGH HIGH MEDIUM LOW

Likely (B)Will probably occur in most circumstances

HIGH HIGH MEDIUM MEDIUM LOW

Possible (C) Might possibly occur at some time

HIGH MEDIUM MEDIUM LOW LOW

Unlikely (D)Could occur at some time there is confidence it will not

MEDIUM MEDIUMLOW LOW LOW

Rare (E)May occur only in exceptional circumstances

LOW LOW LOW LOW LOW

Risk Rating Score What should I do?HIGH Action plan required. Senior management (technical endorsee) approval needed before commencing.MEDIUM Specific monitoring or procedures required. Management (electrical worker in charge) approval needed before commencing.LOW Manage through routine procedures and agreed risk mitigation controls before proceeding.

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4.9 OUTSOURCING

There are a number of companies that provide resources to manage changes in components of operation, these include:

Labour hire Warehouse equipment hire Truck and trailer short term hire Equipment maintenance Computers Office equipment

5 CONCLUSIONS AND RECOMMENDATIONS

In conclusion this report identifies a large number of resources required to operate a warehouse that handles liquor products and required functions associated with transport logistics. Some resources will need to be researched more prior to purchasing, specific resources can/may be outsourced for professional management.

The following recommendations are made:

Size of Property – a real estate agent can be commissioned to find a property that is sufficient is size and has easy access

Size of Warehouse – buildings to be altered or built can be outsourced to a building contractor Transport Fleet and Equipment – outsource purchasing of fleet and equipment to a motor vehicle broker

with all details of what equipment is needed Warehouse Equipment – outsource all procurement of equipment and installation to a warehouse storage

system installation company Licenses and Permits – contact all appropriate agencies (government and public) to ensure all licenses and

permits are applied for in time and properly Insurance – outsource all insurance requirements to an insurance broker to ensure all insurance needs are

met and the insurance broker can put together a cost effective package Security – outsource security requirements to a security firm for installation of required security products

and security guards Outsourcing – can be a cost effective way to get professionals to perform tasks efficiently and properly. The

use of labour hire companies for extra staffing needs, also the use of equipment rental companies can provide equipment and perform maintenance on equipment.

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Task 3: Coordinate Multi-modal Transport Activities

Task 3A: Explain your understanding of interchange functions. Create either a presentation or a report that examines two different interchange modes (e.g. rail/road, road/sea, air/road, pipe/rail etc.) in terms of:

1) what types of facilities, personnel and equipment is required and how may it be readied?2) what security measures would be required prior during and after the interchange process3) SOP(s) required for loading / unloading processes4) Examples of documentation used in the interchange process

Understanding of interchange functions:

It is the movement of passengers, cargo and freight from one mode of transport to another, commonly taking place at a terminal specifically designed for such a purpose allowing rapid processing and completion of applicable documentation.

Intermodal freight handling is a solution to the challenge of transferring goods between modes of transport and involves the use of containers or intermodal transport units (ITU) to transport goods and transferring them between multiple modes of transport (rail, ship, air, road and or pipe) without handling the physical goods when changing modes.

Rail/Road Interchange Presentation:

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CONTENT

Types of facilities, personnel and equipment required.

Security measures required prior, during and after the interchange process.

SOP(s) required for loading/unloading processes.

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Examples of documentation required in the interchange process.

Facilities required

• Interchange located within rail depot with access for container trucks to enter and exit

• Train tracks

• Driveway for truck routes

• Security shed and gates at entry/exit points

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• Operations office

• Sufficient clear space for container fork movement and truck movement

Personnel required

• Security staff

• Container forklift operators

• Rail staff

• Supervisors

• Interchange management

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• Truck drivers

Equipment required

• Container trains

• Shunter engines

• Train container carriages

• Container gantry lifts

• Container forklifts

• Container trucks and trailers

• Communication equipment

• PPE and hazard control systems

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• Specialised equipment (e.g. refrigeration pads, fumigation areas etc.)

Security Prior Interchange

• Check all security arrangements are in place before the arrival of goods (this could include customs clearance and AQIS quarantine requirements for inspection)

• Certification of Warehousing facilities and Transit Operations

• Performing security checks on all personnel

• Provide control access points, security personnel and alarmed storage areas monitored by CCTV

• Issue all staff with MSIC card• Run a Security Management Program

which includes: Risk Assessment Management system elements

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Plan-do-check-act cycle (PDCA)

Security During Interchange

• Check description and quantity of goods against accompanying manifest and paperwork matches the actual goods

• Check packaging is not damaged or tampered with at each stage of handling

• Duties to be performed in accordance with Relevant laws, codes of practice and workplace policies and procedures (SOPs)

• Complete all paperwork correctly

• All personnel security kept up to date

• Security seals attached and recorded correctly

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• Use of RFID (Radio Frequency Identification) technology

Security After Interchange

• Correct delivery information recorded on consignment/delivery note

• Correct recording and filing of documents

• Use of freight tracking system

• Records, reports and recommendations for improvement are managed within the workplace information systems and processes

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Loading/Unloading SOPs required• Work Health and Safety laws

Dangerous goods regulations Manual handling PPE required Use of plant and equipment Site inductions Site emergency and evacuation

• Site Environmental Policy

• Safe Working Limits (SWL)

• Working Load Limits (WLL)

• Load distribution requirements

• Load restraint requirements

• Packaging and labelling requirements

• Customs paperwork

• AQIS regulations

• Manufacturer’s instructions

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Interchange Document examples

Shippers export declaration

• Certificate of origin or consular documentation

• Consignment note

• Letter of credit (if required)

• Packing list/note

• Customs documentation

• Import/export licences

• Commercial invoice

• Quarantine documentation

• Dangerous Goods Transportation Form

• AQIS inspection certificates

• Fumigation certificate

• Container lists

• Letters of instruction

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• Weight documents

• Quality reports

• Phytosanitary certificates

• Manifests

• Insurance certificates

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Air/Road Interchange Presentation:

AIR/ROADINTERCHANGE

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CONTENTSP a g e 37 | 53

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TYPES OF FACILITIES, PERSONNEL AND EQUIPMENT REQUIRED.SECURITY MEASURES REQUIRED PRIOR, DURING AND AFTER THE INTERCHANGE PROCESS.SOP(S) REQUIRED FOR LOADING/UNLOADING PROCESSES.EXAMPLES OF DOCUMENTATION REQUIRED IN THE INTERCHANGE PROCESS.

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Interchange located within airport with easy access for trucks to enter and exit

Freight sorting area Truck loading area Security shed and

gates at entry/exit points

Operations office Sufficient clear

space for plane, cargo tugs, forklifts

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PERSONNEL REQUIRED

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Security staff Unloaders and

sorting staff Aircraft controllers Supervisors Interchange

management Forklift operators Cargo tug

operators Truck drivers

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EQUIPMENT REQUIRED

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Aircraft containers Conveyor system Container tugs Forklifts Communication

equipment PPE and hazard

control systems Sufficient restraint

straps, lashes, belts and ties

Specialised equipment (e.g. fumigation area, bonded store

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SECURITY PRIOR INTERCHANGE

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Check all security arrangements are in place before the arrival of goods (this could include customs clearance and AQIS quarantine requirements for inspection

Certification of Warehousing facilities and Transit Operations Performing security checks on all personnel Provide control access points, security personnel and alarmed storage areas

monitored by CCTV Issue all staff with MSIC card Run a Security Management Program which includes:

Risk AssessmentManagement system elementsPlan-do-check-act cycle (PDCA)

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SECURITY DURING INTERCHANGE

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Check description and quantity of goods against accompanying manifests and paperwork matches the actual goods

Check packaging is not damaged or tampered with at each stage of handling

Duties to be performed in accordance with relevant laws, codes of practice and workplace policies and procedures (SOPs)

Complete all paperwork correctly

All personnel security checks kept up to date

Security seals attached and recorded correctly

Use of RFID (Radio Frequency

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SECURITY AFTER INTERCHANGE

LOADING/UNLOADING SOPs REQUIRED

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Correct delivery information recorded on consignment/delivery note

Correct recording and filing of documents Use of freight tracking system Records, reports and recommendations for improvement

are managed within the workplace information systems

Work Health and Safety laws Dangerous goods regulations Manual handling PPE required Use of plant and equipment Site inductions Site emergency and evacuation

procedures Site Environmental Policy Safe Working Limits (SWL) Working Load Limits (WLL) Load distribution requirements Load restraint requirements Customs paperwork AQIS regulations

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INTERCHANGE DOCUMENT EXAMPLES

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Work Health and Safety laws Dangerous goods regulations Manual handling PPE required Use of plant and equipment Site inductions Site emergency and evacuation

procedures Site Environmental Policy Safe Working Limits (SWL) Working Load Limits (WLL) Load distribution requirements Load restraint requirements Customs paperwork AQIS regulations

Shippers export declaration Certificate of origin or consular

documentation Letter of credit (if required) Packing list/note Customs documentation Import/Export licences Air Way Bill Commercial invoice Quarantine documentation

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Shippers export declaration Certificate of origin or consular

documentation Letter of credit (if required) Packing list/note Customs documentation Import/Export licences Air Way Bill Commercial invoice Quarantine documentation

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Task 3B: Provide a completed and personally signed example of one document of your choice.It can be a type filled form but it must bare your signature as the person completing the form. For example:

completed consignment note completed airway bill completed incident report completed commercial invoice for export / import completed customs declaration for import / export; Or any other applicable document used in Transport and Logistics

Appendix 1 in the Learner Guide/eBook provides some examples of these documents, and others can be found online.

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Task 4: Monitor Consignment(s) Tracking

Analyse data exchange requirements for international trade and prepare either a report or a presentation on system requirements, hardware and infrastructure that would be required to implement a freight management system capable of providing real-time freight monitoring services.

Ensure you include details on various capabilities including:

Mobile data EDI Barcodes RFID Order processing Advanced planning and scheduling Network strategy WMS Inventory management systems Fleet management Computerised routing International trade management systems Supply chain management systems Electronic point of sale (EPOS)

The system’s potential capability to operate a demand driven EDI supply chain must also be included.

MONITOR CONSIGNMENT(s) TRACKING REPORT

Monitoring Consignment(s) Tracking plays a very important role in the transport logistics process, monitoring a consignment through the transport logistics chain will help determine if the consignment will be delivered on time, if a delay is detected early it provides sufficient time to take appropriate action and resolution of the situation before becoming a major problem. It also ensures correct information when dealing with customer enquiries regarding the location of their goods and from a security perspective monitoring the condition of the consignment through all of the transport logistics process.

Freight Management Software

The Freight Management Software plays a big part in the data exchange for international trade. The documentation can either be completed electronically or manually, completing the paperwork electronically allows the documents to be printed with multiple copies which may be needed for import or export shipment. Printed documents aid the legibility of the documents ensuring that the documents are easy to understand saving time in potential delays.

The FMS provides the carriers specific consignment notes, these technically are the ‘contract’ to carry items or provide a service. The FMS can provide the customer with limited access to their software giving the customer control over producing, printing and maintaining documentation.

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EDI (Electronic Data Interchange) is an electronic communication system that provides standards for exchanging data via any electronic means and can be defined as computer-to-computer exchange of structured data for automatic processing, meaning that by adhering to the same standard, two different companies, even in two different countries can electronically exchange documents. The advantages of using EDI include:

o Reduced inventory costso Increased accuracyo Decreases errorso Enhance visibilityo Improved operational efficiencyo Increased ROIo Works very well with just in time (JIT) systems

Customer EDI (Electronic Data Interchange) interfacing

The customer online portal within the CA City Website allows customers access to limited features making it convenient and easy for customers to:

o Enter consignment noteso Book jobso Track and trace consignmentso Search for Proof of Delivery (P.O.D.)

Radio Frequency Identification (RFID)

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Incorporating barcodes or RFID tags into product and the pallet racking system in the warehouse provides a time efficient process for identifying products, tracking, monitoring, reporting and managing products, documents, assets and people moving between locations anywhere at any time by the RFID reader. The use of RFID technology is cost effective by tracking items through the transport logistics process and monitoring the amount of goods within the supply chain reducing the capital required for distribution and warehousing storage costs and by reducing the manpower required reduces manpower costs. The RFID technology is extremely time effective as scanning items is done at a rapid pace, scanning up to 1,000 boxes per second reducing the manpower needed and the technology communicates constantly keeping records updated instantly and assisting in contingency plans if needed.

Global Positioning System

The GPS provides the exact positon of any consignment instantly using sophisticated GPS maps. The GPS allows for effective route planning of delivery jobs by providing the quickest route available, the closest available truck to the destination. It provides an up-to-date position of any consignment on the vehicle providing instant information for any customer enquiries. In the event of a vehicle breakdown the GPS will provide the exact location and ensure the closest service personnel can be dispatched to repair the vehicle.

The advantages of integrating the Freight Management Software to monitor consignment(s) tracking through the entire transport logistics process is obvious. These advantages include, but not limited to:

o Accurate and timely informationo Easily detectable problems or issueso Reduces costso Reduces time wastedo Ensure customer satisfactiono Increased accuracyo Improvement of operational efficiency

Task 5: Implement Contingency Management Strategy

As operations manager you have just received a telephone call from a delivery driver. The driver informs you that he has just reached the customer’s depot where they must unload goods, and discovered that there has been a large spillage of alcohol onto groceries pallets which has caused damage (spoilage) to the groceries as well as the loss of part of the alcohol shipment.

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Further questioning by you of the driver reveals the following information: the load was on a rigid vehicle with a harsh suspension the alcohol was stacked above the groceries the vehicle was taking an unauthorised route because of a diversion due to road works the driver was speeding to make up time lost due to the diversion the spillage has not been contained within the vehicle and is currently spilling onto the hot

exhaust system.

You are required to identify and manage the transport logistics incident in accordance with your understanding of contingency management strategy, documenting the actions taken. You should describe:

The processes and procedures you would use Issues that may be associated with the accident How you have assessed the accident and the priorities and responses required Necessary communications, documentation and actions that should be taken.

Feel free to use diagrams, images, example logs or other resources you develop to answer this question, such as example policies, SOP(s) or forms in this assessment project.

Consulting the contingency plan documentation for guidance would be the first procedure to follow. The contingency plan documents should include:

o Established risk management processo Established risk categorieso An assessment of the likelihood and consequences of risks occurringo An evaluation process to prioritise which risks to respond to firsto Established risk action planso Risk review procedures documented in a risk registero Contingency management plans should also be included in these documents.

These documents should provide advice on procedures to follow with the incident.

After speaking with the driver and reviewing the information provided by the driver, the following steps have been implemented and discussed with the driver. These steps are to be performed by the driver at the incident location:

o Advise the customer of the incident and inform them that his manager has been contacted and has implemented a contingency plan, and will be contacting him shortly with details of the contingency plan.

o Sort the goods into damaged and non-damaged stocko Record all undamaged goods that have been delivered to the customero Record all damaged goods that are to be returned to the distribution centre

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o Inform the distribution centre of all returning damaged goods so replacement goods can be picked and delivered to the customer as soon as possible

o Clean all areas affected by the spillage this includes the deck of truck and anywhere the spill has affected and also the surrounding affected ground area

o Stack securely all damaged goods onto pallets and secure pallets to return to distribution centre

o Damaged stock pallets to be evaluated and stored in the damaged stock area of the warehouse until the insurance claim is settled

o Upon the truck returning to depot it must be thoroughly washed ensuring all traces of the spill have been removed

o Driver to ensure all paperwork regarding the delivery is to be handed to the supervisor handling the incident

o Driver to fill out an Incident Report Form detailing the information regarding the incident

In regards to the transport logistics incident and after reviewing the information received from the driver the following steps should be performed by the manager/supervisor handling the incident:

o Contact the customer and ensure the customer is satisfied with the contingency plan provided and inform customer of the new delivery time of the replacement goods

o Perform risk analysis procedures to assess risks involved with the incidento Review loading procedures to ensure procedure is up-to-date and easy to understando Investigate why the alcohol pallets were not loaded correctly and as per loading procedure

instructionso Implement appropriate actions to be taken to remedy incorrect loading practices e.g.

ensuring staff understand and perform correct loading procedures, provide extra staff training if needed, supply correct/special pallet packaging

o Perform inspection on truck suspension, replace suspension if needed or allocate another truck to the run

o Implement policy and procedures to ensure drivers do not speed, for any reason, to make up time

o Advise all managers, supervisors, operations staff, drivers and relevant stakeholders of new policies and procedures

o Investigate alcohol pallet packaging and implement extra packaging if neededo Prepare all documentation regarding incident correctly and record all investigations and

findingso Prepare insurance claim forms and lodge completed forms.

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