Link Logistics

What is combined transport bill of lading

The lading is a document which acts as proof of contract between an expediter and a transporter. In the case of multimodal combined transport, this document is issued by the maritime company and covers the whole transit operation, in other words, from pre to post carriage of goods.

A lading bill is neither a title deed of goods nor a transport contract. The document represents the right to intervention regarding the goods. The transporter delivers the lading bill and by this act, thereby acknowledges that he has received the goods designated by the contract. He is thus committed to transport the goods to destination according to the conditions laid out in the document and according to the delivery instructions provided. In return, the transporter is paid for the freight. It is for this reason that the lading bill is open to negotiation. Used for the execution of the freight contract, it serves as supporting document for the transport contract.

The necessity to provide a transport document for each segment of the transit in a combined multimodal shipment would considerably slow down the administrative procedures. The multimodal transport document avoids the need for multiple documents. The multimodal combined transport lading bill covers the different transport segments and lessens the burden of administrative procedures.

The specificities of the lading bill

The lading bill serves as proof in several respects:

It determines the terms of the transport contract;
It proves that the transporter has received the goods;
It is used to verify that the goods are in a good condition at the point of loading.

The three types of combined transport lading bill

The multimodal combined transport lading bill which covers transit from pre to post carriage;
The direct lading bill, also called TBL or Through Bill of Lading, sent by the shipping company to cover the main part of transit and post-carriage;
The FIATA bill of lading is elaborated by the freight forwarder or transporter mandated by a forwarder in order to cover the entire transport operation.

Conditions for validation of the lading bill

Four copies must be made of the document and are destined for the following:

The holder of the lading bill;
The ship’s captain;
The shipowner;
The seller.

An original document must also be presented to be able collect the goods. Several mandatory indications must appear on the document:

Identity of the transporter;
Identity of the ship;
Identity of the recipient;
Identity of the person to be notified of the ship’s arrival;
Identity of the shipper;
Boarding port;
Landing port;
Destination of the goods;
Information about goods (namely, quantity and weight);
Payment mode of the freight;
Statement attesting to the authenticity of the document;
Number of original documents created;
Date and place of establishment of the document and boarding of goods;
Signature of the shipping company or that of his agent.

The different stages of combined transport lading

The shipper writes the “bill of lading for received for boarding” (in most cases);
It lists the goods in precise detail;
The goods are loaded on to the ship;
The document becomes the shipped bill of lading;
The lading is handed to the transporter;
The transporter signs the lading bill, and thus attests to having received the goods on his ship;
The transporter takes charge of the goods;
The transporter delivers the goods to destination and in the conditions in which they had been entrusted to him;
The transporter demands the lading bill for the post-carriage operations.

The word “battery” covers a wide range of products, including small AA or AAA batteries, accumulators, rechargeable batteries, etc. Battery transportation concerns both new and used products. All batteries are considered as hazardous products, including lithium and lithium-ion (Li-ion) batteries. The only difference is that lithium-ion batteries can be recharged. Metal lithium ones cannot.

Transporting lithium-based batteries requires strict compliance with a plethora of regulations. Applying these regulations limits the risk of fire, explosion and pollution. Batteries cannot be delivered in standard packages.

Specificities of battery transportation

The partner having commissioned battery transportation is responsible for the goods, and must verify compliance with packaging, labelling and monitoring procedures.
International regulations are updated on an annual basis, and modifications are made throughout the year.
Regulations state that dispatch is possible with a special label indicating “plane cargo only”.
As for multimodal battery transport, the main means of transportation is considered for choosing which regulations to apply and respect.
Lithium batteries cannot be delivered to pick-up points.
Their delivery is also prohibited to a large number of foreign countries.

Lithium-ion or metal battery transportation

Different legislation is applied to the various types of lithium batteries. Knowing the rules in place is important, as they determine what kind of transport is possible - and therefore what costs are incurred. Lithium-ion batteries (lithium polymer) can be recharged, and they are the ones which require particularly strict regulations. Lithium-ion battery regulations take their nominal power into consideration, calculated in watts/hour (Wh). This information must be inscribed on the batteries’ packaging. If it does not appear, the transporter must ask the manufacturer to adapt the information displayed on the packaging so it complies with regulations.

New lithium metal batteries are non-rechargeable and available in various packaging types:

The packaging exclusively contains batteries;
The batteries are sent separately from the equipment associated with them;
The batteries are included with the equipment they are associated with.

Regulatory cornerstones

The ADR, or European Agreement concerning the International Carriage of Dangerous Goods by Road, signed by 48 countries.
The specific Dangerous Goods Regulations (DGR) code, drafted by the International Civil Aviation Organisation (ICAO) for battery transportation via air freight.
The guide issued by the International Air Transport Association (IATA), as well as its rules applicable by partners within the supply chain and by airlines.
The guide known as the Lithium Battery Guidance Document, detailing all the regulations currently in force.
The packaging instructions number 965.

For lithium battery maritime transportation: the IMDG (International Maritime Dangerous Goods) code, with its 39-18 amendment applicable since 1 January 2020, valid for two years.

What is CMR

The convention of transport of goods by road is an international convention ratified by all European countries and standardizes conditions of road freight. It regulates transport of goods by road contracts, also called a bill of lading, a document by which the transporter acknowledges his responsibilities.

The CMR was signed in Geneva, 19 May 1956. According to this convention, the CMR document is obligatory if either the country of departure or destination has signed the convention. CMR logistics regulates the entirety of the general conditions relative to international transport of goods by road

All countries of the European Union have signed the convention. The CMR has also been adopted by Morocco, Tunisia, as well as several countries in the Middle East and Central Asia.

The specificities of CMR transport

The CMR transport document helps to oversee the smooth execution of road transport services between several countries. The document provides:

The mission order;
The transport route plan;
The responsibility of the transporter in the event of damage or loss of goods, and in case of delays in delivery.

It also outlines the regulations relative to any eventual claims and successions of the transporters.

Conditions necessary for validation of a CMR document

Though legally, there isn’t a required minimum number of copies of the CMR, it is recommended that there should be at least three original copies. They are destined for:

The expediter;
The recipient;
The transporter.

The transporter is required to keep his copy in the vehicle. He must be able to present the document to authorities during any checks.

By law, the CMR document must be written before the execution of the transport contract. However, there has been no precision given as who must issue the document. Therefore, the CMR can be written by the expediter, recipient or the transporter.

In general, the transporter usually takes charge of writing the CMR document. Though the format has not been standardized by the authorities, the mention of certain information is obligatory, as follows:

Date of the CMR document;
Identity of the transporter;
Address of the transporter;
SIREN number or the transporter’s Intra-Community registration number;
Date of taking over of goods;
Nature of the goods;
Quantity, weight or volume of goods;
Identity of the expediter or his agent;
Exact address of place of loading;
Identity of the recipient;
Exact address of the place of unloading;
Number of packages;
Packaging mode;
Costs relative to transport;
Instructions for customs formalities;
Statement confirming that the transport is subject to CMR logistics regulations.

Responsibilities of the transporter

The transporter is considered as responsible in the following cases:

Loss of all or part of the goods, or damage incurred between the initial loading and delivery of the goods
Delays in delivery of goods.

However, the transporter can be released of any liability if:

The loss, damage or delay was caused by the wrongful or neglectful act of the claimant, a defect of the goods themselves or unforeseen circumstances;
The claimant has used open top vehicles and without covering;
Packaging is defective or inexistent;
The labeling or coding on the packaging are unclear…

What are customs

Customs are a tax and safety administration, in charge of several tasks. This entity is tasked with regulating the circulation of goods coming into and leaving a country, as well as with ensuring the population’s safety. They support the country’s economic activity, and collect any taxes and duties pertaining to the circulation of goods.Customs have greatly evolved over the years, to meet new and contemporary challenges. Nowadays, the French General Directorate for Customs and Indirect Taxation (DGDDI) is attached to the Ministry for Public Action and Accounts. Its activity is governed by the French national Customs Code. This being said, customs are also subject to international decrees, such as those enacted by the WTO and free-trade agreements.

Customs are mainly entrusted with three major tasks: a tax-related task, an economic task and a task consisting of fighting against fraud and illegal trade on an international level. They are involved in the following fields:

Fighting against drug trafficking;
Fighting against tobacco trafficking;
Fighting against arms trafficking;
Fighting against counterfeiting and other unfair business practices;
Protecting populations against sanitary risks, terrorism and criminal activities;
Protecting the environment and the country’s cultural and natural heritage.

Customs protect business by encouraging competitiveness amongst companies, within a legal framework. They strive to improve inter-State business transactions in various ways.

Their priority is to ensure compliance with the business and agricultural policy rules instated by the WTO.
They encourage international trade by ensuring smoother flows and transactions.
They create and publish statistics concerning external trade.
They give advice to companies through their economic action hub.
They enforce anti-dumping laws, to discourage unfair business practices.

What happens during a customs check

Customs agents are certified to inspect any person on the national customs’ territory - both on land and out at sea. This includes:

Borders and their nearby areas known as the customs radius;
Airports, railway stations and ports;
Public roads: markets, fairs, outdoor café or restaurant areas, etc.

A customs inspection is always signaled beforehand by a board. Customs officers wear a uniform or “Customs” sleeve, and must declare the following to civilians: “This is a customs inspection.” They are entitled to ask for a vehicle to stop, to ask for an ID and to conduct security pat-downs. Customs officers are authorized to search luggage, vehicle trunks and civilians’ personal effects. They can also read private letters, in compliance with applicable provisions regarding correspondence secrecy.

If the customs office seriously suspects the presence of drugs hidden by a civilian, they can order a medical screening test to be carried out. If the transgressor refuses, they will be exposed to a one-year prison sentence and a fine amounting to 3,750 euros

What is a customs warehouse

A customs warehouse is a customs procedure under which goods arriving from a country outside the European Union are placed under a customs declaration in order to be stocked in the European Union. The goods are stored for an unlimited period and remain under the surveillance of customs authorities.

The term customs warehouse equally designates warehouses that have been approved by the customs authorities, in which goods are stocked under the customs regime.

2. AEO-S2 AUTHORISATION:the "Security and Safety" label is achieved by companies meeting the same above-mentioned criteria, but that also comply with highly-demanding security and safety standards.

The different types of customs warehouses

There is a distinction between public and private customs warehouses.

The public customs warehouse can be used by operators authorized by the public customs warehouse regime. These operators propose customs warehousing services to their clients. There are 3 types of public customs warehouses:

Warehouse type I: the authorization holder and the holder of the customs procedure share responsibility of the procedure; approval of the warehouse by the customs authorities is obligatory
Warehouse type II: the holder is solely responsible for the warehouse procedure, customs approval is obligatory
Warehouse type III: run by the customs authorities

In the case of private customs warehouses, the authorization holder is also the procedure holder and is responsible for the warehouse procedure. There are 2 types of private customs warehouses:

The private customs warehouse with approval of storage premises, approved by customs authorities
Private customs warehouse with no customs approval: several places of storage are possible, whose addresses are given to the customs authorities

Advantage of the customs warehouse procedure

The customs warehouse procedure offers several advantages:

The goods are not subject to import duties and taxes, nor to different trade policy measures

The importing company has a stock of duty-free imported goods, for unlimited duration

Payment of customs duties, VAT and other taxes is carried forward to commercialization, which represents a gain in cash flow

If the goods are re-exported outside of the EU, payment of customs duties is unnecessary

During storage, it is possible to carry out interventions (for conservation of goods, upgrading to standards, packaging, calibration…)

It is possible to remove the goods temporarily, mostly for execution of the usual interventions

Example

A Chinese company imports olive oil from Tunisia and Spain. It uses a service provider authorized to operate as a customs warehouse.

The warehouse is situated in Italy. As classified as a public type I warehouse, the importer shares responsibilities of the procedure with the holder. The holder is responsible for the use of storage installations. The importer is responsible for the warehousing, inventory and must notify any excess or deficit in his stock.

The importer bottles the oil at an exterior conditioning site.

What is an actor carrier

Cross-docking can be defined as the main method for managing the supply chain of perishable goods. The short life span of certain food products imposes the implementation of a logistics strategy which bypasses storage. Goods are distributed directly from the point of supply to the point of reception aiming to speed up the transport procedures. Today, cross-docking is especially used by e-commerce in order to reduce delivery times.

In the face of globalization of the market and competition between transport companies, increasingly reactive supply systems have emerged. Industries wish to respond to the increasingly specific needs of consumers. It was the desire for greater efficiency and guarantee of quality and freshness of goods that justified the creation of just-in-time procedures.

Cross-docking is the most widely used procedure for organizing the supply chain, especially for large retailers of fruits and vegetables and other products with short shelf-life or with fast rotation. It involves consolidation of packing by order then using a cross-dock platform. The order can thus be prepared without using warehouse services or a storage platform. Cross-docking platforms serve in managing the urgency of transit operations. In general, goods don’t spend more than a few hours and never longer than 24 hours at a platform.

The specificities of cross-docking

To ensure the management of just-in-time supply of goods, logistics must be coordinated and be able to rely on the following:

Software systems capable of managing the different functionalities of cross-docking and ensure direct traceability of packages throughout operations;
The ability of suppliers to provide order preparations and conditioning required by the cross-docking procedure;
Highly precise planning of reception and shipping;
Adapted indexing for fast and simple identification of packages;
Synchronized convergence from the supply chain to the cross-dock platform.

The different stages of cross-docking

The procedure is made up of several, perfectly coordinated stages. The progression of the packages follows the stages below:

Packages prepared by the suppliers are rapidly put into groups thanks to a specific coding system;
The packages are then grouped together according to the destination platform in order to avoid intermediary storage;
The packages are not warehoused but directed to the appropriate exit dock of the platform ready for shipment.

The advantages of cross-docking

Primarily, cross-docking offers increased reactivity, which is a major challenge in terms of logistics. In fact, the platform is construed as a place of handling with no storage. The shipments are already packaged and ready to be delivered to the client. This procedure is greatly used for high-priority products (fresh goods, products destined for events, daily press…) but also for reducing delivery times in e-commerce.

This procedure offers a second, undeniable advantage – the cost. By accelerating the logistics procedure and by eliminating the need for storage used in traditional logistics chains, the cost of warehousing and intermediate handling operations is nil. The cost of delivery is therefore reduced while providing improved distribution of goods.

Prerequisites of cross-docking

Cross-docking does reduce delivery times and increase financial margins but only when the upstream supply chain is mastered. Without coordinated convergence of goods to the cross-docking platform, the procedure will fail to deliver effectively. Equally, cross-docking demands highly rigorous organization.

What is co-packing

Co-packing is a packaging solution that consists in batching similar products together, thus creating a single batch with two (or more) consumer sales units. It is also the marketing department’s answer to the promotional sale of different products in a same batch, that becomes a consumer sales unit identified by a single bar code. Co-packing is the ideal solution for reducing costs and transport lead times between companies. Used upstream in the supply chain, it cuts down the company’s order preparation lead times.

This process is applied during well-known marketing operations called batch sales. Co-packing implies a change in the product (packaging, size, content, labelling), that generates added value. The most frequent batching process consists in delivering a product with its batteries, for instance. Sector specialists are available to meet co-packing needs. This is because each product has its specificities (fresh, with an expiry date, fragile, etc.). Working with specialists ensures products are handled in strict compliance with the standards enforced by their industrial sector. These standards include traceability, batch number registration, date contract management and compliance with hygiene conditions and safety regulations.

Rules co-packer must respect:

Handling of classified products;
Anti-counterfeiting procedures;
Compliance with product integrity;
Managing returns and therefore the de-batching process inherent to these returns.

They must be BRC-certified to package products in controlled temperatures and positive cold environments.Co-packing is mostly used in markets created during marketing operations and batch sales in mass retail settings. The following should be distinguished:

Promotional batches created for the distributor or industrial company’s marketing needs. They are present in all the aisles of a food or non-food store;
Consumer sales units created using products delivered separately: empty container (box) to be filled with items that will be sold together under a single consumer unit.

The logistical provider will design customized packaging as per the distributor’s requests. The newly-created batch is sold in the form of a unique consumer unit.

What is container transport

Container transport can be defined as the use of one or several metal boxes for transporting freight. Different models are available, each with standard sizes. They help meet international business exchange needs, namely when it comes to intermodal transport offers.

This solution for delivering goods is particularly well-suited for container transport. The various intermediary handling operations do not concern the goods themselves, but rather their container. Once shipped overseas, the container can then be transferred from the ship’s cargo to another means of transport, such as the rail or road network. Waterway convoys are also available for optimizing large volumes of freight traffic.

Container transport is an economical and safe solution, that generally stops off in major port hubs before pursuing its journey to the recipient. With globalization and large-scale business exchanges at their highest, it has become the most-used means of transport in the world.

Conveyance Solutions

As mentioned previously, the containers’ sizes are standardized. However, there are different models available, to adapt to various customer needs. The main storage solutions are as follows

Pallet Wide: used to store European-standard pallets;
Flat Rack: designed to transport cumbersome equipment, such as vehicles or boats;
Tank container: authorized for the transport of gas and liquids. It complies with the ISO 1496 standard;
Open Side: has a side opening to make handling easier;
Reefer: includes a system used to regulate and control temperature inside the container;
Dry Standard: this is the most widespread model, given its universal storage possibilities.

Practical Applications

Regardless of the type of goods or final destination, container transport complies with very specific logistics:

Loading and handling phase.
Positioning determined by the storage of the container in a designated area.
Transfer onto the ship.
Shipping to the destination country and transfer to another means of transport.

Container transport requires for import-export and customs formalities to be complied with. Depending on the country and its related regulations, more or less administrative work may be required.

These matters may concern either import or export procedures. It is important to refer to the competent authorities to conduct the appropriate administrative formalities. This helps avoid any litigation and transshipments during freight transport. The sender and recipient are also entitled to hire a specialist - such as an international forwarder - to benefit from administrative, legal and financial assistance.

What is chartering

In the field of transport, chartering is defined as a rental contract between two parties: the freighter and the charterer. The freighter is the owner of the modes of transport requested by the charterer. The latter weaves a professional partnership in order to exploit these logistical means.

Chartering concerns different sectors of activity. Although it is most often used in maritime transport, it is also found in aeronautics and land transport on roads or by rail. Depending on the specifics of the contract and the conditions of implementation, the organization of the freight (the goods) may be the responsibility of the charterer or the freighter.

It should be noted that freight is used both to define the goods and the freighter's remuneration. Its estimate depends on the distance to be covered, the delivery times, the volume of the freight (size, weight, etc.) and its packaging, not to mention the mode of transport chosen.

The specificities of chartering in 6 main principles

The conditions of application and the contractual clauses vary according to the mode of transport. Each particularity makes it possible to better determine the responsibilities and commitments of the various stakeholders. This can lead to the subcontracting of freight or the payment of operating and management costs. There are 6 main points to remember to fully understand what chartering entails.

This is a rental contract solely dedicated to the transport of goods (freight).
Its use is aimed at all areas of transport: maritime, air, rail, road.
Freight volumes are flexible according to customer needs.
It is possible to handle lots or half lots, pallets or bulk freight.
Its legal framework depends on the Transport Code.
The limitation period of a charter contract is one year.
For the payment of his services, the freighter has a right of privilege on the goods in transit.

Examples and practice In addition to the specific clauses relating to each charter contract, the procedure generally respects the following steps:

Solicitation of a freighter, a company specializing in chartering and transport organization solutions;
Mention of needs in relation to the volume of freight as well as the regular or occasional frequency of transport;
Choice of mode of transport. Eventually, it is possible to opt for a multimodal offer. That is to say, carry out the transit of freight by different means, such as sea, land and air;
Implementation of logistics for the operation of the leased property;
Reception and storage of the goods of its customers;
Forwarding of freight to its delivery destination;
Delivery to a subcontractor or transport to the final place of delivery.

If there may be disparities between the means of transport, these different phases take into account the organization and the overall logistics specific to the charter. These steps start from the signing of the contract to the delivery of the goods, through the operation of the rented means of transport.

Definition

The term DDP (Delivered Duty Paid) is an acronym that originates from incoterms, which define the responsibilities between a seller and buyer in international trade contracts, implying the majority of obligations of the exporter. The seller must fulfill customs formalities and pay taxes and duties integrally before delivering goods to the buyer at the agreed destination. The exporter, according to DDP classification, is responsible for all risks inherent to transportation, as well as all the costs indicated by it.

The incoterm (shortened form of “International Commercial Terms” represents the terminological evolution of “Free on Board”(FOB), terms which first appeared in 1812 to organize shipments by sea. Created in 1953, the word “incoterms” designates all regulations relative to international trade. They facilitate interpretation of commercial terms in a global way. With the development of world trade, these incoterms have been modified and added to many times until the 2010 version, in application since 2011.

The term DDP is one of the most frequently used incoterms. If a transaction is signed with the term DDP, the seller is obligated to supply the buyer the goods at the place of delivery once all transport costs have been paid, administrative formalities completed, and all import-exports duties honored. The only obligation of the importer consists in the collection of the goods at destination.

Obligations

The DDP ensures the seller respects the following obligations:

To pay in full all transport costs to the agreed upon destination;
Take charge of costs relative to inspections before exportation, whether these are required by the authorities of the exporting or importing country;
Complete all customs formalities;
Pay taxes inherent to the transport of goods;
Complete customs clearance for export;
Deliver the goods to the buyer to the agreed upon destination;
Ensure goods are ready for unloading.

According to DDP logistics, the buyer is responsible for:

Reception of goods on delivery;
Taking charge of unloading of goods, unless the contract stipulates that the cost of unloading is to be paid by the seller.

It should be noted that according to the previous version of incoterms, inspections carried out by the exporting country were the only inspection incumbent on the seller. In other words, in 2000, DDP transport was less advantageous for the buyer than it is today.

Definition

Delivered-at-place (DAP) is an international trade term used to describe a deal in which a seller agrees to pay all costs and suffer any potential losses of moving goods sold to a specific location. In DAP agreements, the buyer is responsible for paying import duties and any applicable taxes, including clearance and local taxes, once the shipment has arrived at the specified destination. The phrase was introduced in the International Chamber of Commerce's (ICC) eighth publication of its Incoterms (international commercial terms) in 2010.

How It Works

Buyers and sellers often face complications when it comes to trade contracts, whether they are in the same country or not. As such, there are rules and regulations in place that clearly define the roles and responsibilities of each party in a financial contract. These are known as Incoterms—one of which is a delivered-at-place or DAP agreement.

DAP simply means that the seller takes on all the risks and costs of delivering goods to an agreed-upon location. This means they are responsible for anything associated with packaging, documentation, export approval, loading charges, and ultimate delivery. The buyer, in turn, takes over the risk and responsibility for unloading the goods and clearing them for import.

A delivered-at-place or DAP agreement is applicable for any form or combination of forms of transportation. It usually lists the point at which the buyer takes on financial responsibilities, such as “delivered-at-place, Port of Oakland.”

Obligations

The seller is the one who bears most of the responsibilities when it comes to shipping under DAP contracts. This includes:

Documentation: Under DAP rules, the seller must secure any documentation, including tallies of goods in the shipment, commercial invoicing as well as any packaging and marking related to the export of the shipment.
Licensing: The seller must secure any licenses needed to export the goods and take care of any customs issues on their end.
Transport: This category includes any pre-carriage of goods, the delivery to the port, loading onto the container, and main carriage/delivery to the destination.
Costs: The seller must bear the cost of the shipment and must pay for any losses that may result during shipment.
Proof of Delivery: This is provided by the seller to the buyer once the container arrives at the destination.

While the seller does bear the brunt of the responsibilities under a DAP contract, there are certain things to which the buyer must adhere. These points include:

Payment: The buyer must establish and pay the seller for the goods. They must also advise the seller of the destination.
Import: Once the shipment arrives at the destination, the buyer must take care of any issues related to import. This includes any formalities, such as import forms.
Unloading: The buyer must make arrangements to unload the cargo from the shipping vessel.
Costs: The buyer bears the cost of import duties, taxes, and levies once the shipment arrives at its destination.
Transport: Once unloaded, the buyer is responsible for transporting the goods from the destination/port to their next location. This can be a warehouse, storage facility, or retail location.

What is EDI

EDI (Electronic Data Interchange) is the best solution for transport companies wishing to exchange files specific to their sector from one computer to another, using a standard format. EDI is the most efficient way of exchanging personalised information from company A to company B. In concrete terms, EDI presents itself in the form of information sent electronically. This information is recognised by both companies’ information systems, thus avoiding manual validation entries. This instant exchange automation has more advantages than exchanging information via fax, email and especially paper. The latter requires hours of processing by a large number of people, before the information can be circulated and implemented within the company.

The main reason why EDI is so popular is the ease with which the entire range of management-useful data can be integrated. This includes all sales documents used for daily management within the transport company:

Purchase orders;
Invoices;
Estimates;
Interaction with the bank;
Etc.

Electronic data interchanges between companies that are already partners are more frequent.

Specificities

Transactions via electronic data interchange use norms enabling any non-IT specialised people to read files originating from outside the company. For the entire range of exchanged files to be processed, it is essential to appropriately work on the data management process. If the information processed by the EDI cannot be found, the EDI file will be hard to read. Standard norms are necessary, to ensure the computers perfectly understand the companies conversing together.

Several types of EDI transmissions exist:

A direct connection (point to point) which relies on the Internet to “chat” in an automatic and perfectly secure environment;
Via a value-added network, known as VAN. In this case, a standard messaging service is used to exchange files;
The Web EDI, rather used by very small companies;
A mobile EDI: professional applications are rapidly increasing, despite security and readability problems on small-sized screens;
EDI externalisation by means of ERP platforms (Enterprise Resource Planning software).

Without going into too much detail, there are several electronic data interchange transmission protocols available which use the Internet. This includes the SFTP (Secure File Transfer Protocol) and the AS2 protocol (Applicability Statement 2).

If the language form had not been standardised (number and dates for instance), a company’s computers would send out files speaking their own language (in another format). Company A would be speaking Korean to a French or English Company B who would not understand anything. In a similar way to humans, the computers would not understand each other.

What is FTL

A Full Truck Load refers to the ideal loading capacity for a truck or container. It is ideal as this is the most profitable form of transport. The space available in the trailer is perfectly occupied by the transported goods.

FTL is therefore the goal to be achieved to maximize transport profitability. Within the framework of FTL, a transporter’s expenses related to driving, administrative work, and productivity (waiting times) on the docks when loading or unloading additional products are reduced as much as possible. A more direct itinerary also ensures enhanced security for the goods transported, and reassures the contracting party.

When the load represents a large volume and reaches the truck, trailer, container or freight car’s maximum capacity, pricing is more attractive than with partial-load transport. To reach this goal, providers pool different transport solutions together thanks to specialized partners.To pool a supply chain system together, contracting parties call upon a 5PL provider (Fifth Party Logistics), able to manage transport and more importantly coordinate the tasks carried out by partner companies.

These more economical solutions (pooling) make frequent deliveries to small customers easier. The retailer acquires less stock, and conducts more efficient rotations thus preventing stock shortages and ensuring the end customer’s satisfaction. The FTL system is also beneficial to transporters, who get more regular and high-volume loads, thus increasing profitability for their production tool: truck, barge, freight car or trailer.

FTL efficiently contributes to the fight against harmful road pollution. Greenhouse gas emissions are indeed a major concern for transporters. Improving their filling rates, currently set at about 70%, is an important challenge that will help meet the environmental benchmarks enforced by the government.

Specificities

Maximizing vehicle loads by pooling partial loads entrusted by partner companies
Hence the pooling platform service
Ensuring FTL is now easier thanks to Collaborative Routing Centers.
FTL uses the cross-docking technique, that consists in loading goods from dock to dock without incrementing stock levels
It uses a flat-rate, because in supply chain operations, FTL goods transport is used to invoice the services of a full truck from a Point A to a point B without taking the quantity of pallets into consideration.
Handling for just one loading and one unloading operation reduces the risk of damage to products.

Advantages

Sending goods that have a sufficiently high volume to require a truck’s entire loading capacity
FTL is perfect for transporting dangerous or at the very least high-risk goods, as the load never leaves the truck throughout the entire itinerary.
FTL is also particularly well-suited if the goods require special equipment for loading and unloading, as there are no stops scheduled between point A (loading) and point B (unloading).
Only one customer is invoiced for an entire truck load, i.e. 33 palettes so about 90 m3 in a standard trailer.
The customer pays fewer handling fees, as the itinerary is direct.
Transport time is therefore reduced.

What is home delivery

Home delivery refers to the final stage of the purchasing process between a seller and their customer. When there are no timeline or qualitative disputes, delivery is the ultimate contractual step in the process engaged between the seller and end customer. Home delivery is a contractual obligation defined arbitrarily at the time of purchase by the customer. Products are sent directly to the buyer’s address.

Delivery options - including home delivery - serve as a major asset for retailers when faced with fierce competition. As such, delivery lead times are a key factor. Home delivery and its various conditions are the best way to enhance loyalty, and remain practically the only formal contact between the buyer and seller. Home delivery is therefore a precious weapon when it comes to bettering customer relations. Large sales companies have understood this perfectly, and invest colossal amounts of money to maximise and optimise last-mile services.

The last step to home delivery includes the last mile, which is also the most expensive. The only alternative to home delivery is delivery to a pick-up point.

Specificities

Quite clearly, the last mile has a proportionally higher cost price than the rest of the supply chain. Figures in France indicate that it represents about 20% of all traffic and 25% of greenhouse gas emissions (source: Strategic Analysis Committee).
The first miles are always perfectly mastered for large volumes, as logistical operations are always conducted in suitable traffic, network and weather conditions. On the other hand, vehicle changes, human resources, administrative work and legislative constraints have an effect on unit prices - making them gradually climb as the last miles grows closer.
Urban environments require an adapted logistical approach. Smaller trucks are called upon to drive through certain districts, in line with specific legislation. The packages’ weight and volume implies certain procedures.
Each type of delivery has its own specialised logistician. Indeed, a package cannot be delivered to the fourth floor as it can to a detached house in the suburbs.
The creation of Logistic Urban Areas have boosted the number of city centre deliveries, where small private vehicles are usually most frequent.
Furthermore, asking customers to pay for deliveries that will take several days or weeks is now no longer well-perceived, and people will turn to more efficient competitors.

What is Hazardous Goods Transport

Transport of hazardous goods (oils, gas, chemical products, radioactive substances) is the transit of substances with high risk to the environment and/or humans, or substances that can damage other materials and goods. The transport solution involves the implementation of adequate measures to ensure their transit in total security. Transportation may be by land, sea, waterways, rail or even by air.

Given the sensitivity and risk factors, hazardous goods need specific precautions to be taken. These include meticulous packaging and conditioning, specific handling operations and storage which is adapted for their conservation. Awareness-raising and on-going training for staff are indispensable measures for transportation and handling of this category of goods.

The regulations relevant to the transport of hazardous goods do not allow transit via pipelines, such as oil or gas pipelines.

Features

Hazardous goods are considered as such when they present a character of risk of targeted or global deterioration. In the event of an accident, the transport of dangerous materials can entail the risk of pollution of land and the contamination of groundwater. It also constitutes a health risk for humans and local fauna. The following products make up the main groups of hazardous goods.

Inflammable substances;
Corrosive products;
Radioactive waste and elements;
Toxic materials;
Infectious agents, such as medical waste;
Gases;
Explosives….

Applied Regulations

On both local and international levels, regulations are extremely strict regarding authorization for the transport of hazardous goods in a given territory. Market players must respect several directives according to the mode of shipment employed:

ADR transport: transit by road, conformity with the European Accord for Dangerous Goods by Road;
RID transport: transit by rail according RID regulations (international carriage of dangerous goods by rail);
Maritime transport: the codes relative to sea navigation and packaging are applied;
ADN transport: concerns transit via waterways and is governed by the European agreement (international transport of dangerous goods via interieur navigation)
Air transport: this transit mode involves the technical security directives elaborated by the International Civil Aviation Organization (ICAO).

What is integrated logistics

Integrated logistics provides comprehensive solutions to the supply chain organisation. It encompasses the entire company’s staff. Procedures are analysed and modified for heightened efficacy. All human and material means are implemented to provide the best possible logistical service.

Integrated logistics can be defined as a comprehensive inter-department process. Each stage involves every stakeholder within the company - working together to make logistical operations run smoothly. As such, the competitive advantage is high as end customers are delivered in a timely fashion boasting irreproachable service quality.

As part of integrated logistics, all stock resources and requirements, essential data and information, as well as human resources and service providers have a single goal. They strive to deliver orders to customers within the shortest time possible, always ensuring impeccable quality.

Specificities

Integrated logistics is a notion that appeared when endeavouring to face market globalisation and boost competitive efficacy for e-retailers as opposed to in-store retailers.

Companies searched for and adopted logistical operation optimisation strategies. There were two kinds of drivers for change: speed and quality.
Minimising costs amidst all of this appeared as a third goal, in line with the product’s cost price.
Delivery counted for about 20% of total cost price.
By coordinating services, companies significantly increased the efficacy of integrated logistics.
Integrated logistics is a key factor when striving to successfully complete multi-channel deliveries.
Orders count different package sizes and weights for only a small number of items, most often expected within 24 hours.
Accurate flow knowledge helps anticipate human organisation and maximises stock management.

Technological solutions to help with integrated logistics

Companies use ERP systems (Enterprise Resources Planning), which consist in organising the company’s processes on a global scale. Its efficacy resides in sharing data to all company departments. ERP systems are most often accompanied by integrated warehouse management systems (WMS).

This being said, the last mile is always an issue. Though software can be used to optimise delivery from loading to delivery, the transfer of goods and bulk breaking in Logistic Urban Areas are not taken into account.

Definition

Lashing is the securing of transport cargo. It applies to the transport of all types of goods: machines and vehicles, loading of packages on pallets, containers, etc.Lashing also refers to all modes of goods transport: road transport, maritime and river transport, air transport. Each mode of transport has its own specific regulation. The transport of dangerous goods requires specific precautions when it comes to lashing given the danger posed by the goods being transported.

The lashing is sized based on the forces and energies present on board the transport vehicle: weight of the goods transported, centrifugal force, longitudinal and friction forces applied to the load, etc.

Personnel responsible for planning and supervising the loading and lashing of goods must consider all the risks inherent to this task and apply any relevant provisions. They must also know the standard terminology to be able to communicate effectively with shippers, carriers, forwarding agents and senders.

Characteristics

There are various accepted methods for securing goods or containers:

interlocking ;
blocking with filling material, with bars or with panels ;
direct or top-over, loop, tie-down or strapping lashing ;
or a combination of these different methods to prevent the sliding of the lashing systems in case of friction.

There are various types of lashing equipment available. It depends on the type and composition of the load being transported:

synthetic fibre straps (usually polyester) often used for top-over lashing (by friction), as well as direct lashing (notably when wider lashing equipment is used) ;
lashing chains for goods with cutting edges and for heavy goods such as machines, steel, concrete, military equipment, etc. Chains are only used for direct lashing;
steel lashing cables recommended for loads such as wire mesh used in reinforced concrete and for some wood loads, such as round logs stacked lengthways.

This lashing equipment bears identification plates or labels indicating:

the lashing capacity (LC) in decanewtons (the official unit of force is the daN and not the kg);
and the pre-tensioning force, which is obtained when a manual force of 50 daN is applied to the strap.

This label identifies the lashing equipment to be used depending on the load. Lashing equipment must be checked regularly to guarantee its strength.Certain ancillary equipment can be used to hold the goods in place on board the transport vehicle:

anti-slip mat;
wooden bars;
heat-shrink film or stretch film;
steel or plastic strapping;
edge protectors;
corner protectors to prevent damage to the load and the lashing equipment;
spacers, etc.

Definition

Maritime transport refers to a means of transport where goods (or people) are transported via sea routes. In some cases, maritime transport can encompass pre- and post-shipping activities.

For centuries, mankind has used waterways to transport merchandise and people. As such, maritime transport owes its evolution to the development of international trade and to the ever-growing exchange of goods between countries. By definition, maritime transport is actually international (except when sailing along the coasts of a same country). Nowadays, maritime transport is the main means of transport used to ship raw materials (oil, coal, cereals, etc.) over long distances.

The creation of maritime containers in the middle of the 1960s vastly encouraged the development of maritime transport. These standardized boxes pile one on top of the other, and can transport all sorts of goods, with quite easy handling. Maritime containers have other advantages, in that they limit the risk damage, breakage and theft (the goods are not visible from the outside), and reduce transport costs.

It should be noted that the race to gigantism over the last few years (with ships able to transport more and more goods) has slowed somewhat. Ship-owners are having trouble filling their vessels, and accessing the different trade ports worldwide.

Specificities

Maritime transport is an appealing means of transport, thanks to:

Its transport capacity: several hundred tons of goods can be transported on a single ship;
Its permanent activity: out at sea, nothing or practically nothing can stop vessel traffic.

However, maritime transport suffers from fairly slow movement (between 30 and 50 km/h for most vessels). It therefore entails much longer delivery lead times than road or air channels.

There are two main maritime transport offers available: demand responsive transport (also known as tramping) and liner transportation. The first is when a request triggers the search for a ship to transport goods. The second is when the exporter selects a liner transportation offer with a set itinerary and frequent ports of call, and shares the vessel with other exporters.

Definition

Pooling, also known as supply pooling, consists in grouping goods together from several industrial or commercial companies during a customer’s procurement process, sent either to one or several addresses, using optimised and therefore full trucks. The goods transit via a logistician, who then redistributes them into the trucks. Industrial companies have less stock, a precise overview of their stock levels at any given time, know their sales perfectly and can thus ensure reliable stock rotation calculations.

The various stages required for supply pooling must be conducted pragmatically, with help from a logistic provider. The latter receives the industrials’ goods, prepares them, loads them and delivers them. Rotations are designed to avoid any in-store shortages (retail space) for the end customer. By pooling logistical resources (warehouses, trucks, human and material means), lowering storage costs and ensuring better in-store presence for high-rotation goods, more profit can be generated for the stakeholders involved in supply pooling.

Compatibility of pooling stakeholders

Pooling companies must ensure logistical compatibility as regards their products and customers.
Requests must be compatible in terms of volume and timeframe. In large retail stores or certain shops, seasonality is extremely important for managing volume. Hence the notion of fixed distribution (hardly any changes in the volumes delivered) and variable distribution pooling (taking larger volumes into consideration, such as at Easter or Christmas for example).
Logistical organisation must always be compatible if industrial companies collaborate and use joint production resources and warehouses.
A project manager leads a system comprised of several different partners on various sites. That manager becomes the reference person when choosing the right solution and best logistic providers for storage, transport and IT back-office work. A third-party belonging to none of these entities will have an easier time arbitrating any conflicts of interest between partners.
Supply pooling projects have high ROI (return on investment), as they do not cost much to implement.

Benefits of pooling

From the industrial company’s point of view, pooled supply management significantly reduces logistical costs, including those incurred by finished product storage in the factory. For instance, companies that use 30 platforms in France and deliver about 30 pallets in 30 trips would only stop at one platform during a single trip if pooling were implemented. The company’s overall carbon footprint is also lowered. Figures show that mileage is reduced by 20%, and CO2 emissions are diminished by just as much.

There is also an advantage in terms of management, as all stakeholders have better visibility of both sales and stock levels, given that everything is located in the same place. The distributor is aware of stock levels in real time, for each product, including sales and rotations.

Pooling is also suitable for small suppliers. By doing so, they can better master their logistical costs - as the latter are pooled - and deliver to larger food or specialised retailers.As for distributors, pooling preserves a favourable relationship with partners. Indeed, suppliers and logisticians are responsible for any goods stored within the platform. Distributors who simply choose to oversee pooling operations also save a lot on staff.

Looking at logistic providers, in addition to vastly reducing CO2 levels, logisticians win over market shares and enhance loyalty among key customer who may be drawn to competitors.

Definition

Picking refers to the operation consisting in collecting all products pertaining to a customer’s order from the storage area or shop. In modern companies, picking is done by an employee, equipped with a terminal that has a screen displaying the full list of products, or that vocally describes all the items to be prepared. The second solution is known as voice picking. This list is contained in a file generated by electronic data interchanges (EDIs). Orders are checked, then the IT tool generates a list of items.

The purpose of picking is to rationalise recurring logistical operations. The picking agent uses hoisting machines suitable for grabbing items stocked on racks or special storage units. In some companies, the picking process is done by autonomous robots. Once the orders are complete, they are placed on a packaging chain where identification elements are added prior to delivery to the right address. Now ready, the order is loaded into the transporter’s vehicle.

Using a portable terminal or computerised internal memory, an employee or autonomous robot maximises production by rationalising movement to and from the storage aisles. They check items ordered by different customers yet sent to the same place.

Specificities

Processes may vary depending on the logistician or company’s internal organisation, type of product sold and volume to be processed and dispatched. Three main types of activities are run in logistical companies:

Products picked within the storage area by 1 picking agent for several orders, known as picker-to-part;
Full order completion by one or several operators (allotment);
U-based orders, which consist in having a picking agent collect the items for a single order from one or several storage areas;
Packaging and computerised or manual preparation of all dispatched orders.

In aiming to reach these production goals, the methods implemented to help the picking agents are named:

Pick to light: the operator is guided to the item to be picked thanks to a beam of light;
Pick to belt: for large quantities packaged in whole boxes placed on a conveyor belt sent to the sorting centre;
Pick then pack, and pick and pack: two stages are necessary. In the first, the products are picked out then taken to an order preparation bay. There, they are sorted to create the order before being packaged.

Picking methods vary greatly depending on the order, and several methods are sometimes used in the same warehouse:

Item-based picking based on files processed as the day goes by. The request leads to the item being picked;
Group picking happens if a same article is required for several orders;
Zone picking consists in collecting items within a same storage area.

Definition

A transport control tower(TCT) is a centralized way to collect, manage and analyze data that can then be used to make more strategic operational decisions in the future. They are typically used by shippers, carriers and logistics service providers to track, monitor, and manage transport movements across the supply chain. Whilst people and processes are important to TCTs’ success, technology plays an increasingly key role in helping to turn data into actionable insights.

Key Functions

One of the main functions of a TCT is to provide better freight visibility. This is done by gathering data from different sources across the transport supply chain (including carriers, warehouses and forwarders) and incorporating external data, such as live traffic conditions. The use of GPS and internet of things (IoT) technology means information can be collected and shared instantly with stakeholders via dashboards and API connectivity in a real-time visibility platform.

TCTs also facilitate the collection and management of digital documentation, including barcode scanning and electronic proof of delivery (ePOD), through mobile driver apps. This can be accessed by all stakeholders at any time, providing a single source of truth for everyone to work from. Real-time communication and collaboration are also supported by TCTs through functions such as customisable notifications and alerts and live chats between different stakeholders. This enables everyone involved, including the customer, to stay on top of changes to scheduled deliveries.

Most TCTs will connect to warehouse management systems (WMS), enterprise resource planning (ERP), transportation managements systems (TMS) and route planning and optimisation software. The data and insights that are generated from the TCT can feed into these systems, helping to continuously improve operational efficiency.

Finally, smart TCTs can also incorporate advanced analytics. This is what takes it beyond simply an operations monitoring tool to one that can add real value to a business. After analysing all the data shared via the software, advanced AI and machine learning (ML) algorithms can provide insight into any changes or disruptions, assess their impact and help create improved responses.

Definition

Subcontracting is a contractual agreement signed by two or more companies. The company that commissions subcontractors is known as the contracting party. The companies that sign a subcontracting agreement are known as subcontractors. The purpose of the partnership for the contracting party (in this case the transporters) is to entrust all or part of the work falling upon it to subcontracting companies. Subcontracting is a submission solution for obtaining certain public markets even without the required internal skills.

The advantage of subcontracting transport logistics means you can remain focused on your core activity without investing any essential human or material resources. Especially as logistics are a business requiring expertise, that is becoming increasingly automated and robotized, to ensure permanent service. Supply chain activities are some of the most subcontracted by companies in general.

There are several kinds of subcontracting in the field of transport and logistics:

Occasional subcontracting to compensate for activity surges;
Regular subcontracting entrusted to transporters in certain fields;
Subcontracting done by transport commissioners for permanent logistical flows;
Subcontracting to haulage operators, who lease their truck and driver’s expertise;
Transport subcontracting solutions are often entrusted to a freight forwarder.

Most people who create transport companies are former employees who purchase their truck. With the right legal installations (offices, parking spaces, warehouses), they most often launch their activity thanks to subcontracting agreements.

Specificities

When the transport of goods is subcontracted, the contracting party is not responsible for the human or material resources put to use.
The subcontractor organizes and operates the transport of goods on behalf of a third party.
They take care of all or part of the transport process, from the pick-up of goods at the supplier’s to end customer delivery.
One of the subcontracted functions may be to establish the customs documents.
Between pick-up and delivery, the shipping forwarder (a specific job) is for instance responsible for handling operators in the warehouses, and for booking slots on the boats, trucks or trains set to deliver the goods.
This intermediary may also delegate certain stages of the service to other subcontractors.
Most often - and this is a strength of theirs - they sell a unique transport solution at a flat rate, that encompasses all transport solutions.
The transport operator is a transport commissioner, who signs an agreement with a subcontractor to whom they entrust all or part of their transport operations.

Definition

The Sea Waybill is a document or transport contract made between the maritime company and the shipper. The SWB is not to be confused with the Bill of Lading (BL) which is both a title of ownership of goods and is used as a receipt for cargo accepted for transportation. The SWB is also considered as proof of reception of goods. Less formal than the Bill of Lading, it facilitates exchanges, especially in the absence of a formal business transaction regarding the goods. The Sea Waybill can be compared to the international transport contract of goods by road (CMR) and the transport of goods by air contract (LTA).

With globalization, international trade has grown, and the rate of operations at seaports has continuously risen over the years. In view of this evolution, establishing a lading bill has become increasingly complicated because it must integrate a multitude of mandatory indications conform with the 1924 convention and can only be validated by the transporter. Where sea shipment doesn’t always rely on business transactions, as is the case when partners have developed a mutual trust, or the loading of goods and their reception belong to one group, or where no other document is implicated, the Sea Waybill is the most appropriate solution. Indeed, it allows a speedier process of import-export customs clearance whilst reducing the risk of paying penalties for diverse delays incurred in waiting for approval of the more formal Bill of Lading.

Specificities

To avoid confusing the SWB with the lading bill or Bill of Lading (BL), it is best to specify the characteristics of each document.As with the Bill of Lading, the Sea Waybill is:

A document delivered by the sea or ocean transport agent to its clients;
Is transmitted once all invoices relative to the transport have been paid;
Is attributed following the transmission of customs documents.

Unlike the Bill of Lading, the Sea Waybill:

Is non-negotiable;
Applies to non-commercial transactions, generally between companies of a same group;
Doesn’t require original copies;
Doesn’t represent ownership deeds.

Conditions for delivery of a Sea Waybill

When the exporter and importer are part of the same company or group and the goods transported do not require negotiations, a Sea Waybill is often delivered. A Sea Waybill may also be used when there is no bank involved or where the original invoice is not necessary to ensure payment. The SWB is also appropriate when no exchange or sales are planned during the transport operations, and in cases where there is mutual trust between the expediter and recipient.

The details indicated on the Sea Waybill

If the SWB is characterized as being less formal than a Bill of Lading and cannot be used as a title deed, there are, however, several details that must be indicated in the document:

Identity of the sender;
Port of boarding;
Name of ship;
Port of destination;
Identity of recipient;
Contact details of recipient…

Definition

Optimised transport plans use the best strategy, and the most efficient human and material resources to transport freight from a point A to a point B.Logisticians are constantly required to optimise their transport plan, to make it more efficient whilst minimising expenses. This is the only solution for ensuring the company’s durability, help it win over market shares and enhance customer loyalty. To do so, it must analyse all its resources and apply them wisely to its supply chain. Resources include human and material means - such as available vehicles. External hazards such as bad weather, strikes, customs legislations and delivery destinations all imply certain lead times which need to be managed.

Logisticians manage all direct and indirect expenses pertaining to their transport plan. Many different costs are incurred, but most can be foreseen. They pertain to the modus operandi, and include:

Vehicle rental costs if any subcontracting is done;
Production costs per mile for its own trucks and human resources;
The time spent in transit and for bulk breakage;
The cost of customs clearance operations;
Tolls, etc.

Specificities

To optimise transport plans properly, logisticians must take the following criteria into consideration:

Reducing the number of miles driven whilst optimising vehicle loading;
Environmental factors, to reduce CO2 emissions;
Making sure the sales department optimises cost proposals in association with suitable lead times, to increase market shares;
Quality criteria means the right products are delivered, in the right quantities, at the right time and in accordance with all standards in force - whilst minimising the number of bulk breakages which are always very costly.

Plans must be constantly optimised

Transport plans evolve over time, taking new regulations and customer requirements into account. They must adapt to the market whilst remaining flexible and agile. To help decision-makers analyse their transport plans’ strengths and weaknesses, tools known as TMSs (Transport Management System) exist.

A TMS is an IT tool that helps plan dispatch. It determines the most efficient transport strategy by simulating the criteria related to the platforms, and the bulk breakages they imply. Analysis includes precise mass send-off schemes, and deducts any foreseeable costs. The goal is to find solutions to reduce expenses whilst ensuring the best possible service in terms of quality and lead times.

TMSs are the most efficient solution for guaranteeing traceability and sending alerts. They are a back-office tool: they issue invoices, vehicle booking, and manage disputes.The advantages of a TMS in terms of transport plan optimisation:

They provide a perfect view of collection round and delivery planning;
They increase loading rate;
They allow for real-time freight traceability;
They allow to manage pre-invoicing for transport;
Lastly, TMSs manage performance indicators pertaining to delivery, vehicle loading rate, vehicle usage frequency, CO2 emissions, etc.

Definition

Transport flow synchronisation aims to optimise the transport of goods throughout the value chain.Its main objective is to remove all breakpoints which may affect product production and distribution. All links in the chain are affected by transport flow synchronisation.Upstream of production, it is about coordinating the different stages in the transport of raw materials to meet just-in-time supply needs. When it comes to the downstream supply chain, transport flow synchronisation looks to avoid stockouts at distribution sites, and to guarantee the best delivery times to achieve customer satisfaction.Both upstream and downstream, transport flow synchronisation is particularly important when supplies are subject to just-in-time or synchronous flows.In terms of distribution, transport flow synchronisation is also a way to overlap deliveries with the management of goods returns. This aspect of transport flow synchronisation is a strategic point in e-commerce which tends to increase goods returns.

Characteristics

The question of upstream and downstream flows is essential to have a fluid and effective production and distribution chain. This explains why transport flow synchronisation is a recurring problem in logistics flow optimisation projects.With good transport flow synchronisation, delivery times can be reduced and stocks limited, which is a measure of profitability.However, goods transport flow synchronisation requires 360° real-time visibility of transport operations at all levels of the chain.

Upstream and downstream supply flow synchronisation

Digitalisation plays an essential role in transport flow synchronisation. It allows flows to be managed optimally to achieve the best efficiency.To synchronise goods flows, operators use transport flow management platforms and road control towers which fulfil several functions:

the collection and consolidation of information shared by operators in the chain related to the transport of goods ;
the planning and tracking of transport operations in real time to react to risks and bottlenecks quickly ;
the reporting of operations with a view to their invoicing and an analysis to consider any optimisations.

Flow synchronisation and return management

Reverse logistics refers to all activities implemented to ensure the return of goods.This involves managing the flows of returned goods:

due to lack of sales: unsold newspapers and books, outdated items, items left over from promotions, end of season lines, etc ;
Port of destination;
following order errors;
due to a recall of defective products;
for the recovery of equipment that is obsolete, at the end of its life, etc

Goods may be returned:

on the initiative of customers for an exchange, a repair or a refund ;
at the request of a company for resale, reuse as is the case for returnable packaging such as pallets or containers, even disposed of or recycled as part of the treatment of production waste, etc.

Goods transport flow synchronisation is useful for:

effectively managing and coordinating the frequency of deliveries and returns ;
managing logistics costs related to returns;
limiting CO2 emissions by making use of the return journey.

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