Presentation English
Presentation English
Presentation English
Logistics is a complex business where there are many different types of transport to ship and
deliver goods. For a company, it is essential to ask the question of the most appropriate and
efficient mode of transport to meet the needs of its customers. In logistics, there are four means
of transport: sea, road, air and rail, but a company can also choose intermodal or multimodal
transport. The choice of one means of transport over another is an essential strategic choice in
supply chain management. However, not all modes of transport are suitable for every activity
or company. Each mode of transport has advantages and disadvantages that need to be
considered in advance. This is why you should always determine your transport needs
beforehand in order to choose the most appropriate means of transport. Here are the different
types of transport.
MARITIME TRANSPORT
Historically, sea freight has been the most frequently used transport for companies with large
volumes. Over time and with technological developments, it has become a safe and fast means
of transport that allows more and more cargo to be shipped around the world. It is used to
transport large volumes of goods such as heavy building materials (metals, cement, etc.),
vehicles (cars, trucks, etc.) and materials such as oil, stones, etc. Container ships are used to
transport containers. They can be adapted to the products transported, to better preserve and
protect them during the journey. Compared to other means of transport, maritime transport is
very economical over long distances. It is also considered the most environmentally friendly
form of transport, given the volume and weight of the goods it is able to carry in a single
shipment. In 2015, maritime transport represented 80% of world trade by volume. Despite a
slowdown due to the economic crisis (COVID 19), this market should continue to grow to reach
2,000 billion by 2020. However, maritime transport is exposed to the risks of piracy, collision
or even shipwreck. It is therefore necessary to take out all possible insurance to be protected
in case of loss of goods.
ROAD TRANSPORT :
Road transport is a widely used mode of transport. Not only can it be used for short distances,
but also for long distances if necessary. Trucks can be loaded and unloaded quickly and easily,
much more so than an aeroplane for example. Similarly, they can move goods in all seasons
and weather conditions, making them a reliable mode of transport all year round. Despite the
fuel consumption of the transport vehicles, it is still a simple and more economical transport
solution than others. A very interesting solution for the transport and unloading of containers.
AIR TRANSPORT :
Air transport is still the fastest way to transport goods over long distances. It is very practical
for transporting urgent, fragile or sensitive goods such as perishable foodstuffs,
pharmaceuticals or live animals. This is anything that might not survive a long journey. Air
transport is fast, convenient and safe, but the main disadvantage is that it cannot carry heavy
products or those considered dangerous. Another disadvantage, and not the least, is that air
freight remains the most polluting mode of transport. It is therefore not suitable for all
companies, especially those that are green and want to reduce their carbon footprint. The
second disadvantage is that air transport remains very expensive and is not within the reach
of all companies.
RAIL TRANSPORT :
The railway appeared in the first half of the 19th century with the industrial revolution and
developed spectacularly in Europe and America, playing an essential role in the economic and
military fields and considerably improving travel. Its use then spread throughout the world for
both passenger and commercial traffic. Despite a relative decline in favour of the automobile,
the 20th century saw the transformation of the railways with the development of electric
traction and the appearance of high-speed trains, which led to a renewed interest in the
railways. The train represents the essence of the industrial revolution. When it comes to
transporting goods over long distances, few modes of transport are as efficient as the railways.
That is why it has always been part of the logistics chain. In today's highly competitive
economic landscape, rail freight transport plays a crucial role. Operators are seeking to increase
the capacity and productivity of their networks by investing in state-of-the-art technology and
infrastructure. In fact, the demand for the construction or rehabilitation of railways has grown
rapidly in recent years.
The final link in this chain is Transport, which follows the supply, production and storage
stages. Without efficient means of transport, whether by road, air or sea, it is impossible for a
company to obtain raw materials and reach its final customers. Consequently, transport actors
are the guarantors of the creation and perpetuation of a company's activity. But their role goes
much further: today, it is no longer a question of getting a product from point A to point B, as
many other tasks must be taken on by transporters. When we talk about transport in logistics,
we often think of the journey from a warehouse to a shop, where the goods are sold. And this
is indeed one of the tasks for which transport actors are responsible. After being manufactured,
assembled or stored, the products must be transported to the customer by road, rail, sea and/or
air. Transporters are thus required to make journeys between a company and intermediate
sales or storage points. This may involve transporting goods from one warehouse to another
or to a direct sales outlet, a relay point, or even to a private individual's home or company
headquarters. Customer satisfaction is essential to the long-term survival of a company.
However, a major part of this satisfaction comes down to logistics: the company's ability to
organise its material flows to meet the needs of its end customers. Logistics is therefore not
just a service: it is a strategic function, both a lever for internal optimisation and a tool for
competitiveness. In this article, we propose to define the term precisely before analysing the
role of logistics in a company and highlighting its strategic and competitive importance.
Transport is a key lever for several Sustainable Development Goals (SDGs). It makes a strong
contribution to economic development, industry and SMEs, and trade and investment. The
management of logistics is now carried out through the company's information systems. In
order for logistics to be efficient, the company should ideally use a clear and identical coding
system for each company function and use remote transmission of information The objective
of the company's logistics function is to coordinate the products in circulation so that the
products circulate continuously (to reduce delivery times) and to group the products together
(to reduce costs). The company's logistics chain manages flows as efficiently as possible to
reduce the following main costs: procurement costs, routing costs, production costs, storage
costs.
The dispatch of goods is one of the main functions of the warehouse. Its objective is to send the
ordered products in perfect condition and on time. This process is divided into several stages
and operations that must be followed to the letter in order for it to be carried out smoothly.
Any company that imports or exports must have an EORI (Economic Operator Registration
and Identification) number issued by French customs. Without this number, imported or
exported goods risk being blocked!
Export transport
The first part of the transport is the export transport. This concerns the movement of the cargo
from the shipper to the consignee.
For each shipment leaving a country, customs clearance must take place to meet regulatory
requirements. Customs clearance is a transaction whereby a declaration is made and the
required documents are submitted to the authorities, and can only be carried out by companies
with valid customs licences, known as customs brokers.
Export clearance can be carried out by a freight forwarder with a valid licence or an agent
appointed by the freight forwarder. Alternatively, it may be carried out by a customs broker
appointed directly by the shipper, who does not necessarily take any other part in the shipping
process. The export clearance stage must be completed before the goods can leave the country
of origin and, if not carried out by the freight forwarder, must often be completed before the
goods enter the freight forwarder's warehouse of origin.
Origin management
Origin processing covers all the physical handling and inspection of the cargo, from receipt at
the origin warehouse until it is loaded onto a vessel in a container. There are many steps
performed under origin processing by many different parties, but everything is coordinated
and the responsibility of the freight forwarder, or an agent appointed by the freight forwarder.
In short, when the cargo is received, it is inspected (counted), planned for loading, consolidated
with other goods, stored in a container and moved to the port where it is finally loaded onto a
vessel.
Import clearance can usually start before the cargo arrives in its country of destination. For
export clearance, this is a formality where a declaration is prepared and presented with the
relevant documents allowing the authorities to register and collect customs duties on the
shipment. Import clearance is carried out by the freight forwarder or an agent of the forwarder,
or by a customs broker appointed by the consignee. The import clearance process must be
completed before the cargo leaves a bonded area in the destination country. Generally, this
means that the cargo leaves the freight forwarder's or forwarding agent's destination
warehouse.
Destination management
With respect to origin, cargo handling is also required at the destination before it is handed
over to a consignee. In summary, handling at destination includes the transfer of the container
from the ship to the shore and from the port to the forwarder's destination warehouse. It also
includes unpacking the container and preparing the cargo for the consignee to collect.
CONCLUSION :
Freight transport is characterised by high price volatility. It is particularly marked in air and
sea freight, but also concerns road freight transport. Indeed, several parameters have an impact
on the evolution of prices: transport costs, the economic situation, the political/geopolitical
context or even exceptional elements (health crisis, climatic hazards, etc). The mode of
transport is also a price-determining factor, each with its own pricing and taxation system.
How can transport operators gain visibility on transport prices and put an end to the opacity
of the market? The digitalisation of freight transport and the use of data science now offer tools
to improve price forecasts and bring more transparency to the supply chain.