Supply Chain Project
DETAILED SCHEDULING AND PLANNING IN SCM
PROJECT REPORT
TRANSPORTATION AT MAERSK
SUBMITTED TO:
SIR AGHA SAJJAD NOOR
SUBMITTED BY:
ZAEEM RASHEED SOOMRO -)
MUHAMMAD TALHA MEHBOOB-)
SALMAN RAZA-)
AMMAR AHMED MALIK-)
HUZAIFA AHMED ANSARI-)
Syed ZAIN Ahmed-)
Contents
1.TRANSPORTATION:2
1.1.Modes Of Transportation:2
1.2.Importance Of Transportation:6
2.MAERSK:7
2.1.Introduction:7
2.2.MAERSK Key Facts:8
2.3.MAERSK Product Portfolio:9
2.4.MAERSK Transportation:9
Value Added Services:10
Consolidation Process:11
Customers Served Globally:11
3.REFERENCES:12
1. TRANSPORTATION:
Transportation, the movement of goods and persons from place to place and the various means by which such movement is accomplished. The growth of the ability—and the need—to transport large quantities of goods or numbers of people over long distances at high speeds in comfort and safety has been an index of civilization and of technological progress.
Transportation can also be defined as, the movement of humans, animals, and goods from one location to another. In other words, the action of transport is defined as a movement of an organism or thing from a point A to the Point B.
Transport infrastructure consists of the fixed installations, including roads, railways, airways, waterways, canals and pipelines and terminals such as airports, railway stations, bus stations, warehouses, trucking terminals, refueling depots (including fueling docks and fuel stations) and seaports. Terminals may be used both for interchange of passengers and cargo and for maintenance.
1.1. Modes of Transportation:
The mode of transportation is an important consideration when planning the shipment process. Besides the costs, the urgency of the shipment, the value of the goods being shipped as well as the size and weight of the goods need to be evaluated when determining the form of transportation.
Below are some of the modes of transportation which are important to discuss:
Ocean:
Ocean freight is a less expensive method of shipping goods, but the drawback is a longer transit time. Another benefit for ocean freight is while size and weight may be an issue for air; it is not for ocean freight.
Ocean freight is used quite extensively for the movement of bulk commodities such as agriculture products (wheat, maize, soya, etc.), coal, iron ore or for wet bulk products such as crude oil and petroleum. Also, larger, odd-shaped items including engines and propellers may move via this mode as well, depending on how sensitive the delivery time is.
Ocean freight is also a preferred mode of transport for the movement of high volume and heavy cargo such as minerals, metals, ores, steel coils, etc. which would be impossible to move by air freight.
There are currently 4 ports in Pakistan:
Karachi Port:
Handling about 60% of the nation's cargo located in Karachi
Berth: 30
Annual volume: 1.563 million TEUs
Port Qasim:
Second busiest port, handling about 35% of the nation's cargo.
45.6 KM from Karachi Port
Berth: 12
Annual volume: 681,000 TEU
SAPTL
A natural deep-water harbor, equipped with modern container-handling equip. Located next to Karachi port.
Berth: 4
Annual volume: 3.1million TEUs (Estimates)
Gwadar Port
A deep-sea port situated in Baluchistan province of Pakistan.
633 KM from Karachi Port.
Berth: Phase I: 4; Phase II: 9; Total: 13
Air:
Air freight is a critical mode of transport. It serves markets and supply chains that demand speed.
Air freight has its own disadvantages such as being one of the most expensive due to the requirement of speed and the fuel that is used.
It also has its size and weight limitations. Regulatory bodies limit what can and cannot be transported by air, and as such, oddly shaped or very large items may be more suitable for other modes of transport.
But air freight is considered the best option for shipments which require less transit time, less handling of cargo, less documentation, reliable arrival and departures and enhanced level of security.
Karachi: Jinnah International
Cargo Handled: 187,171 M. Ton
Airlines: Qatar, Turkish, Thai, Saudi, Emirates, Air Arabia, Fly Dubai, Shaheen, PIA
Islamabad: Benazir Bhutto International
Cargo Handled: 53,020 M. Ton
Airlines: Turkish , Emirates, Thai , Saudi, PIA
Lahore: Allama Iqbal International
Cargo Handled: 81,148 M.Ton
Airlines: Qatar, Turkish, Thai , Saudi, Emirates, Air Arabia, Fly Dubai, Shaheen, PIA
Sialkot International Airport:
Cargo Handled: 5,794 M. Ton
Airlines: Qatar, Emirates, Air Arabia
Rail:
Another mode of transport which is also considered a ‘green’ option is rail. Trains burn less fuel per ton-mile than road vehicles and a train, which can have as many than 100 wagons, only needs one driver. There are, however, some additional costs which are incurred in a rail journey: at each end of the rail transit, a road delivery will be needed, and there will be a lift cost to transfer the container between the train and the road vehicle.
On average, longer journeys tend to be less expensive by rail, and shorter journeys are les s costly by road.
Key benefits of rail freight include
Reliable transit times and schedules
Railroads are the most efficient form of land transportation. One train can haul the equivalent of over 400 trucks
Fast and cost-effective deliveries over long distances. Typically, over 500 miles
Traditionally, rail has a strong safety record.
Helps in alleviating road congestion, thus lowering emissions
Road:
Road freight is one of the most common of all modes of transportation. single customs document process provides a seamless movement of goods even across various states and countries.
Road freight provides several advantages over other modes of transportation such as
Cost-effectiveness
Quick and scheduled delivery
Local, over border, long or short haul deliveries even in rural areas
Flexible service
Saving in Packing Cost compared to other modes
Track and trace of cargo and truck
Complete door-to-door service and it is one of the more economical means of transport.
However, truck transport is limited somewhat as to what it can carry by the size of the vehicles used and by size and weight restrictions. Another limitation is that it is affected by weather, road conditions and traffic.
Multimodal:
Another option to keep in mind is multimodal solutions – the utilization of more than one mode of transport.
Multimodal is a combination of different modes of transportation such as rail, road, and sea which allows the customer to cost-effectively manage shipments from start-to-end, ensuring optimum care and efficiency every step of the way.
Sea-Air is another example of multimodal transport. The service is considered less expensive than air and quicker than ocean service.
An alternate solution to pure air or ocean, Sea-Air provides the global transportation industry time and cost savings along with eco-friendliness.
Sometimes using this mode of transport helps to avoid demurrage fees.
Key benefits of multimodal transport include
Cargo can be moved to any part of the world using multiple modes of transport
Reduces the distance for the goods between the manufacturer and consumer
Customers can deal with one entity to handle all modes of transport under one document
Efficient and cost-effective delivery options
Below table shows what mode to use during what situation:
1.2. Importance of Transportation:
The entire economic, social and political life of a modern country depends upon an efficient system of transport.
1. Extensive Market:
Transport helps in the assembly of raw materials and distribution of finished goods. It makes it possible to move goods from the place of production to the place where they are to be consumed. In the earlier days, there were only local markets due to the absence of safe means of transport. Now-a-days, trade is not restricted to the boundaries of a nation, but has spread throughout the world.
Development of the efficient means of transport has knit together all the nations of the world into the one big world market. Even the perishable articles like fish, dairy products, meat etc. are being transported to distant places of the world. But for good transport facilities, such a development in trade and commerce would not have been possible.
2. Mobility of Labor and Capital:
Transport reduces the rigors of immobility of certain factors of production. Mobility of labor and capital increases with the development of transport. An efficient network of transport services encourages the movement of people from one place to another.
Labor can migrate to the place where they can get better job opportunities, which reduces the exploitation of workers. The development of Australia and United States would not have been possible without immigrations from Europe. With the development of transport, the investment of capital is also channelized to new lands and other places of the world.
3. Economies of Large-Scale Production:
Transport has helped the development of large-scale industries. It would not have been possible for these industries to procure raw materials, gather large number of workers and sell the finished goods, without the efficient facilities of transport. Thus, transport has made possible the various economies of large-scale production which tend to reduce unit cost of production and help the economy.
4. Benefits to Consumers:
Improved means of transport benefit the consumers in many ways. The consumers can enjoy the benefit of use of many goods, which cannot be produced at their place, by transporting such goods from other distant places. Further, it helps in reducing the cost of goods of consumers and increases their purchasing power.
5. Discouragement to Monopoly:
The scope of total income is extended by the development of the means of transport. As commodities can be quickly transported from one place to another, local producers cannot charge prices at their own will. This discourages monopoly and encourages competition.
6. Increase in National Wealth:
Transport helps in increasing the national wealth of a country by facilitating agriculture, industry, trade and commerce.
2. A.P MOLLER - MAERSK:
2.1. Introduction:
A.P MOLLER Maersk is an integrated container logistics company; it is one of the world’s leading providers of freight forwarding services. For more than 100 years, the company has been providing customers with services that helps them manage their cargo and that supports the way they want to do business.
A global network of logistics professionals:
Maersk manages and serve some of the most advanced supply chains in the world, in a diverse range of industries. With a relentless focus on simplifying complex supply chains, the company uncovers efficiency improvements that enable the customers to cut their inventories, reduce operating costs, and make significant short-term savings for long-term competitiveness.
Global presence with a local touch:
In every Maersk office around the world, they have local people who speak the local language and understand the local communities. In key origin markets, particularly China, Maersk offers market-leading capabilities. As one of the world's leading operators in emerging markets such as Africa, the Middle East and Latin America, Maersk enable their customers to access new sourcing areas, customers and business opportunities with Maersk’s established network.
From single shipments to integrated supply chain management:
Maersk’s hands-on services and strategic solutions are extensive and customized to meet customers' every need. So, whether it is a competitive rate for an urgent shipment or a strategic partner who can identify and create short-term efficiencies and build up long-term competitiveness, the team of logistics professionals is ready to help.
Maersk manage and serve a diverse range of industries and provide around the world through in-house forwarding team or with agency partners. Maersk offers multi-carrier air, ocean and project logistic services and tap into decades of experience to make the customer experience a seamless one.
Maersk is at the forefront of developing innovative supply chain solutions. They fuse global network and depth of expertise with pioneering digital innovations to enable their customers to stay ahead.
Company vision is to connect and simplify supply chains across the globe. Maersk is experts in the field of complex, rapidly changing markets such as Fashion, Retail, Chemical, FMCG and Technology.
2.2. Maersk Key Facts:
With a presence in over 130 countries, employing more than 80,000 employees worldwide and more than 100,000 customers, Maersk combine global reach with depth of local understanding. In 2020 Maersk was able to reach a net income of 2.9 billion US dollars, managed to move around 4 million TEUs (twenty-foot equivalent units) of ocean freight and more than 200 thousand tons of air freight. Maersk also owns a fleet of 305 vessel and additional of around 400 chartered vessel which having alliance of other shipping lines of the world.
2.3. Maersk Product Portfolio:
From single shipment to complete supply chain management solutions.
Forwarding: Maersk is involved in moving of cargo through air freight, ocean freight, sea-air, road, rail, multi-modal, project cargo.
Clearance: Whether it is customs clearance & brokerage and customs inland transportation, Maersk provides customized solution to its customers.
Supply Chain: Supply chain side of Maersk involves, Inventory management, origin consolidation, distribution center by-pass and direct-to-storage programs, multi-country consolidation, load optimization and vendor management.
Visibility: Maersk has a portal “https://www.maersk.com/portaluser/login” where end-to-end supply chain visibility & management, vendor connectivity solutions, online bookings, document management, track & trace and milestone exception management is managed.
Process: Processes are managed with KPI management through leading operational and unique IT infrastructure
Warehousing & Consolidation: Maersk has its own asset of warehouses where cargo is consolidated, cross-docking, transloading under CY supervision and audit.
2.4. Maersk Transportation:
Maersk has multiple transportation services which are selected as per customer’s requirement and situation.
Ocean Freight:
Maersk provides full-service solutions in more than 10,000 corridors worldwide.
The company has global reach with extensive network support being part of A. P. Moller Maersk. Maersk provides customized solutions with complete service offering where the company integrate ocean freight with local transportation, customs brokerage, and document handling.
Maersk is able to provide reliable and fixed transit time in coordination with other carriers. The company also deals in Full container load and less container load shipments. With its extensive services, the company can also provide multi container consolidation.
Air Freight:
Air freight is most flexible way to move goods with less transit time.
Maersk has a global network of owned offices and partnership with selected agents and quality subcontractors. Extensive hub network with frequent departures when using major capacity carriers. Air transportation is able to integrate with local transportation and value-added services
Flexibility above all is given to match your specific cost & transit time requirements to optimal service level.
As per customer’s requirement priority is given on cargo movement and first available flight using our core carriers dedicated express services.
Different type of services is available as per the cargo cost:
Premium - Mid-priced product, moved on core carriers’ standard services.
Economy – Consolidation service for MAERSK’s most cost-efficient option. Frequent uplift
Sea-Air – Airfreight multimodal services reducing cost
Most dangerous goods are also being handled by Maersk.
Value Added Services:
Maersk provides full-service solutions to meet all inland transportation and Custom Clearance needs.
Maersk ensures products are collected and delivered to the right place, at the right time and at competitive rates. Timely and Reliable Customs Clearance management is provided with trusted partners. Projection is done for cargo management.
Below mentioned services are provided under the header of value-added services:
Multiple modes of transportation
Extensive network of transport providers
Constant monitoring and quality assurance
Timely pick-up and delivery
Timesaving, cost efficient one point of contact
Import and export customs clearance
Warehousing / Storage
Break-bulk / Project Cargo handling
Operational Control Process:
Maersk operational process is as per need of the customer, Maersk provide services from point of origin to point of destination, Company also provide 4PL of four party logistics which include complete logistics service providing from logistics of raw material procurement till final delivery of finished goods products. Customers can also avail option of transportation for their cargo from warehouses to final delivery point, in this process export custom clearance will be done by customers themselves. Similarly, customer can have their cargo delivered at import shipping terminal and further they can handle import clearance by themselves.
Customers Served Globally:
3. REFERENCES:
https://www.maersk.com
http://www.yourarticlelibrary.com/geography/transportation/what-are-the-important-functions-of-transport/42137
https://www.businessplannigeria.com.ng/transportation-importance-modes-choice-transport-mode/
https://www.brightworkresearch.com/fourthpartylogistics/2017/01/definition-transport-logistics-logistics-transportation/
https://investor.maersk.com/financial-reports