SUPPLY CHAIN MANAGEMENT

Transcription

1 SPIRU HARET UNIVERSITY FACULTY OF LAW AND ECONOMICS CONSTANŢA DEPARTAMENT OF ECONOMICS MASTER PROGRAMME OF STUDIES: ENTREPRENEURSHIP AND ORGANIZATIONAL MANAGEMENT YEAR OF STUDIES: II SUPPLY CHAIN MANAGEMENT - Course notes Course organizer: Associate Professor Ph.D. Laura Patache CONSTANŢA

2 SUMMARY INTRODUCTION...4 CHAPTER I INTRODUCTORY ELEMENTS IN LOGISTICS MANAGEMENT 1.1The concept of logistics Types of logistics Value chain and logistics Logistics service providers Trends in logistics sector Field logistic function and role in the enterprise...11 CHAPTER II SWITCHING FROM LOGISTIC TO SUPPLY CHAIN 2.1 The question of physical flow disruptions in logistics The relationship between physical distribution and logistics - a relation of part to whole Conceptualization supply chain Supply chain models...18 CHAPTER III FREIGHT TRANSPORT LOGISTICS 3.1 Modes of transport Design transports in strategy of implementation logistics infrastructure Criteria for choosing the carriers Making transport operations Freight contracts Charter party (Contract for shipping) Air transport contract The road carriage contract The rail transport contract...29 CHAPTER IV LOGISTICS STORAGE OF GOODS 4.1 Terms used in logistics applications on the storage of goods Logistic infrastructure The number and size of deposits in a logistical system Stages of storage...36 CHAPTER V STORAGE OF GOODS IN THE SUPLLY CHAIN 5.1 Stockpiling role in the supply chain Types of inventories existing in logistic system Ways of storage Technical means for handling of goods...45 CHAPTER VI WAYS OF COOPERATION LOGISTICS 6.1 Phase in relations between producers and distributors Trade marketing Efficient Consumer Response (ECR) Category Management...51 CHAPTER VII MEASUREMENT AND MANAGEMENT PERFORMANCE OF THE LOGISTICS CHAIN - 2 -

3 7.1 Elements of a generic model performance Logistics costs BIBLIOGRAPHY

4 INTRODUCTION Logistics is an evolving field that has known many transformations determined by the characteristics of the economic environment is inserted. Therefore, we are witnessing a shift logistics from operational activity to tactical and even strategic one. In this way, it was to expand logistics outside the entreprise and outline the concept of supply chain. A supply chain is a coordinated system of organizations, people, activities, information and resources involved in moving a product in a physical or virtual manner from supplier to customer. In a general sense, a supply chain consists of two or more organizations legally separate from, but connected by material flows (physical), and financial information. This course aims to help those who want to acquire skills and knowledge and conduct efficient and effective management o f logistics activities. Logistics also presents an ongoing challenge for organizations, offering them the chance to face an environment increasingly competitive. More and more practitioners in the field consider the logistics a real source of competitive advantage, a key competence of the organization. By reconsidering the strategy of logistics services for customers, the organization can meet a higher degree of business partners expectations or demands targeted market segments, in terms of differatiation from competitors offer. Mutations that occurred in the treatment of theoretical and practical physical flow of raw materials, materials, finished and finished products have led to new terms, including: physical distribution, logistics, materials management, logistics management and supply chain management - delivery. Often, these terms are considered synonymous, being to describe the same field logistics

5 CHAPTER I INTRODUCTORY ELEMENTS IN LOGISTICS MANAGEMENT 1.1 The concept of logistics To better understand the concept of logistics, the following are some of its meanings. In 1962, NCPDM defines logistics through activities that need to carry out staff in logistics as follows: "Employee in industry and commerce which is involved in the vast spectrum of activities required to achieve efficient movement of finished products on exit from manufacturing until they reach the consumer. This includes the movement of raw materials from suppliers until the entry into manufacturing. In particular thes include: Transport. Storage, places where goods are handled, packaging, inventory control, siting factories and warehouses, processing order, forecast on market and customer service. Regarding the definition as described above, it widens the field of logistics tasks containing additional physical market forecast, customer service, siting factories and warehouses. Another definition is that once logistics is technical control and management of flows of materials and products from source of supply to the point of consumption. In comparison with previous definitions, this definition clearly refers to the flow of supply and logistics management aspect. Professional organizations concerns in studying logistics do not stop there, so in 1972, "Council of Logistics Management" (CLM) gives a new definition of the concept of logistics, as follows: term that describes the integration of two or more activities in order to plan, implement and control an efficient flow of raw materials, semi-finished and finished products, from their point of origin to the point of consumption. These activities may also include the types of services offered to clients, forecasts on demand, communications related to distribution, inventory control, material handling, treatment orders, service after the sale, ensuring spare parts, siting factories and warehouses, procurement packaging, handling returned goods (by negotiation, reuse, refurbishment or disposal etc.), transport organization and the actual carriage of goods including handling and storage warehouses. " It is noteworthy that this definition compared to that in 1962 take into account the aspects of management including planning and control. In other words, logistics is a process which consists in planning, carrying out and controlling the flow and storage efficient and effective use of raw materials, goods in process, finished goods and related information from point of origin to the consumer in order adaptation to customer requirements. Another definition found in the economics literature presents logistics as "a collection of activities in connection with the acquisition, movement, storage and delivery of parts and goods in a supply chain. Logistics functions include transportation, distribution, storage warehouses, management of materials and stocks. Logistics is connected with manufacturing and marketing." Note that this definition also uses the concept of "logistics chain". This definition is similar to the one given in 1972 by CLM, but not cover the product or service after selling recycled

6 Among the many authors who have tackled the term logistics in the literature include James L. Heskett, who in 1977 said that the logistic process cover all activities involved in product flow and coordination of resources, achieving a given level of service at the lowest cos 1. Also ASLOG (Association Français pour la Logistique) believes that logistics is a feature that aims to make available at the lowest cost and quality required of a product where and when demand exists. It concerns all operations that determine the movement of products, as well as the location of factories, warehouses, supply, inventory management, order preparation and handling, transportation and delivery routes. According to the definition given by the UN / ECE and CEMT (Conseil Européen des Ministres des Transports), logistics is a process design and supply chain management in the most general sens. This chain may include the provision of raw materials for production, delivery to warehouses and distribution centers, sorting, handling, conditioning and final distribution to the place of consumption. A definition of English literature specifies that logistics "means the time required for positioning of resources". O definiţie din literatura engleză specifică faptul că logistica desemnează timpul necesar pentru poziţionarea resurselor. In this regard there are two basic forms of logistics: one that seeks to optimize a continuous flow of material through a network of transport links and storage nodes and another aimed at coordinating a sequence of resources to an activity. Astfel, logistica reprezintă o activitate de prestare de servicii care are ca obiect gestiunea fluxurilor de materiale, punând la dispoziţie şi administrând resurse care corespund nevoilor, cerinţelor economice şi calităţii cerute, în condiţii de siguranţă şi securitate satisfăcătoare. Logistics is thus an activity of providing services which covers management of material flows, providing and administering resources that meet the needs, economic needs and the required quality, safe and satisfactory security. In this sense, the concept of logistics incorporates all activities aimed at harmonizing the time and space with goods and persons by grouping them accordingly. Thus, logistics is defined by integrated planning, organization and control of all flows of goods and materials, with flows related information, from suppliers through the stages of value creation, to delivery of products to customers, including recycling and disposal. Based on the definition of freight logistics, we can say that the mission of logistician consists in bringing the goods and services at the right place at the right time, under the conditions required, as well as providing the largest contribution to company profit. 1 Heskett, J., Logistics: Essential to Strategy, în Harvard Business Review, Vol. 55, No. 6, November-December,

7 1.2 Types of logistics Content logistics management concept gaining in depth. In the last decade logistics and supply-chain management delivery have been significant changes. Coordinates transformations that have occurred are both conceptual and operational. This establishes a bridge between the two phrases which were located in the center of debates specialists in the 90 s of the previous century and captures the attention and now. According to experts supporting the relevance of the concept of logistics, the logistics can make a difference between internal and external logistics, as components of integrated logistics. In this sense, internal logistics refers to the total cost and coordinated management of operational activities of the company. The total cost, which reflects a holistic idea of "compromise" on parts logistics system, has already become traditional in the logistics world. However, only a third of existing businesses fail to achieve a better integration of logistics activities. On the other hand, external logistics is another name for what we know as supply-delivery chain. It refers to the integration activities along the supply chain-delivery. Emphasis on integrated logistics and the two components - internal logistics and external logistics - can have a significant impact favorably on the performance of the organization as it is an aspect generally accepted that integrated logistics offers the possibility of improving both cost management and a serving customers. Logistic function directly manages indirect material flows and the flows related intangible: information and financial flows. Depending on the meanings of material flows, logistic can be divided into upstream logistics, downstream logistics and reverse logistics. Upstream logistics comprises: development within or outside the enterprise customer (creating something from scratch or modify existing) and seeking sources of supply (sourcing) through relationships with manufacturers (producers, manufacturers, suppliers, subcontractors), service providers, consultants in logisticdevelopment within or outside the enterprise customer (creating something from scratch or modify existing) and seeking sources of supply (sourcing) through relationships with manufacturers (producers, manufacturers, suppliers, subcontractors), service providers, consultants in logistics; supply (procurement), involving the concept of contract; buying (purchasing) that induces the notion of command (open or order); upstream transport and customs operations for movement of goods to a point of storage or a platform of order readiness. Downstream logistics comprises: storage of goods in warehouses; copacking, establishing lots, conditioning, marking, labeling; order preparation; downstream transport. Reverse logistics refers to the movement of goods to the end consumer at the point of repair, recycling or final disposal. Also, logistics covers return of goods from the customer to their seller

8 Logistics infrastructure consists of deposits and communication routes and aims the material flows movement to direct them from places of production to places of processing, then from them to places of consumption. In general, these three components are separated, which raises the question flows between them. In this regard, the logistics can be grouped into the following categories: logistics based on extensive flows or stored flows and logistics based on pushed or pulled flows. When the product can be geared directly to the place of consumption without constitute stocks, the flow is called the spread. In the reverse situation is called flow stored. Conversely, if consumers decide the amount of goods transported and product flow is called pulled. Expanding logistics determines differentiation of the relevant activities "product logistics" of the situation of "logistical support" (logistics tracking product after sale), as shown below: Logistics function Product logistics Purchasing, supply of raw materials Transport of raw materials Production and production management Industrial logistics Logistics function Transport of finished products Storage of finished products Sourcing platforms redistribution Mass storage logistics Logistics support Transport orders to retail customer Storage and inventory management in retail shops Logistics distribution Retail distribution Aftermarket Figure 1.1 Types of logistics - 8 -

9 1.3 Value chain and logistics Logistics operations are linked to the value chain, which is a tool for finding new ways to create a increasing value for the customer. The activities of the supply chain (also called value chain or life cycle processes) transforms raw materials and components in a product that is delivered to the consumer or user. Therefore, a logistics chain link different value chains inside it. Value analysis is a technique studying the possibility of replacing the components of a product with another less expensive. As a result, value analysis has become a classical technique to reduce costs, which is to study in detail all components likely to be modified, standardized or manufactured less costly. By resorting to this technique a buyer who purchased a product is able (benefit) of: to determine the functions of this product; current search that features of this product are not indispensable; to ask if retained product specifications are not too expensive ; search for cheaper substitutes; to see if this product can not be standardized for use in a number of cases and thereby reduce its cost to complete the purchase and use; replace, simply with one that will perform the same functions with less cost. Value analysis should be applied throughout the logistic chain. Any operation of the supply chain must provide value and as such must continually seek to obtain the same value at a lower cost. In fact, more often than not it is difficult to determine the cost of each operation in the supply chain, but its added value. Therefore, determining the value added is a vital concern, especially as the economy into a link of the chain can increase to side, without this being itself something bad (negative). In view of Michael Porter value chain includes two categories of activities: o a primary activities; o a support activities. The three areas of logistics, shown in Figure 1.1 are integral parts of the value creation process. Valoarea oferită clientului este diferenţa dintre valoarea totală pentru client şi costurile generate de evaluarea, obţinerea şi utilizarea produsului. Customer value is the difference between total customer value and costs of the assessment, collection and use of the product. The total value for the customer is a whole benefits that it expects from a product or service 2. Primary activities are those related to the physical movement of raw materials, materials and finished product, the output of goods and services, marketing and sales, and service. Among the primary activities include the following: Logistics oriented within the firm (logistics "upstream") - refers to the reception, handling, storage, inventory control, scheduling of the vehicles, returns of goods to suppliers; Production turning inputs into the final product which includes activities for assembly, packaging, equipment maintenance, testing, managing production units; Logistics directed outwards company (logistics "downstream") - consists of the distribution of finished products and activities include storage and handling them, using the means of transport, processing orders; 2 Kotler, Ph., Marketing Management. Analysis, Planning, Implementation and Control

10 Marketing and sales - involves activities of advertising, sales force management, pricing, choice of distribution channels, developing relationships with members downstream marketing channels; Services maintaining or increasing in product value after the sale through instllation, repairs, training, spare parts supply. Support activities are those that support it s primary activities and supporting each other. Acording with classification made by Porter, supporting activities are: Purchase purchase of raw materials, consumables and other assets; Technological development - refers to "know-how", procedures and technological inputs required in any activity of the value chain; Human resources management - selection, promotion, motivation, staff assessment, management development, labor relations; Infrastructure company - consist in general management, planning, finance and accounting. 1.4 Logistics service providers Logistics provider can be defined as a professional that manages the flow of goods and information from factory to stores districts, or even up to customers' homes. Often, logistics providers are responsible for transporting products from their place of production to distribution platform and provides thus redistributing products to other channels. They also integrates the functions they perform, storage and management of goods flows after imperatives customers. The current trend of logistics providers is to focus more on logistical operations, except for the transport, which are increasingly being outsourced by subcontracting the second degree. This trend has increased lately, with the evolution of new technologies of information and communication that allowed development of logistic provider competence from 3 PL (Third party logistics) to 4 PL (Fourth party logistics). 3 PL are logistics operators called classics that provide storage tasks, associated operations (handling, order preparation, production sourcing, transit management) and the transport of their goods with own means. 4 PL are the operators which coordinates logistics benefits, without having their own material and human resources. The principle of action of this operator is to outsource the entire logistics chain from third parties. One consequence of these developments is the focus of increasingly high logistics sector, which creates disparities among providers. In this regard, 45% of the European market of logistics is achieved by the top 10 operators. 1.5 Trends in logistics sector In recent years, logistics has recorded significant developments that have made it to shift from support function within the enterprise based at a cross function, between enterprises. Great complexity of the logistic function leads increasingly more trade and industrial enterprises to outsource their logistics, thus creating logistical benefits market. This market recorded rapid developments, marked by several major structural trends, among which we can mention: sector concentration through mergers, acquisitions or takeovers ventures;

11 recourse to subcontracting transportation benefit and increased outsourcing. Subcontracting is defined as the operation by an operator under its responsibility entrusted to another company, in whole or in part, the execution of a contractual obligation entered into an agreement with a partner. Outsourcing is defined as a delegation for a period of time management of one or more functions of the enterprise to an external provider. logistics sector transformation into a vector to create jobs; amending the legislative framework and European enlargement. Logistics providers and client companies can be ranked by the rate of outsourcing or ownership by a third party logistic function in 4 categories: 1 PL (First party logistics), which means subcontracting transport; 2 PL (Second party logistics), which means outsourcing transportation and storage; 3 PL (Third party logistics), which means outsourcing classical consist in custody by a specialized company to achieve logistics operations and organization tools, skills and systems required with the objective to enhance performance (tasks becoming more varied); 4 PL (Fourth party logistics), which is an advanced formula of outsourcing, the provider no longer recognize the distribution of a product in a given region, but optimizing a chain that includes his client and his client's customers and suppliers. 1.6 Field logistic function and role in the enterprise Enterprise performance and durability sometimes depend on today by control the logistics process: strategy, growth and flexibility are directly related flow management, which makes the strategic decisions and the development prospects of the enterprise. Logistics directly influence: local environment of the enterprise - regional development, transport infrastructure; national enterprise environment - transport policy, scientific research, technical progress. Logistica exercită o anumită influenţă asupra: Logistics exert some influence: transport sector. Development of logistics generates profound changes and restructuring at the various players in the field of transport which can alter the policies and principles of governing the activities; regional development. Businesses are attracted to implant in regions equipped with a solid logistics infrastructure, contributing to their economic development; economic policies. Taking account of the growing role of logistics leads to enhanced state and local interventions for improving their transport networks to help a disadvantaged region, to achieve a transport policy for targeting mutations in the transport sector. scientific and technical environment. Its scope includes both the creation and submission of informations required to optimize flows management. Logistics is linked to the development of new information and communication technologies. Logistics is an element of scientific and technical policy of the industrialized countries

12 CHAPTER II SWITCHING FROM LOGISTIC TO SUPPLY CHAIN Logistics is an evolving field that has known many transformations determined by the characteristics of the economic environment is inserted. Therefore, we are witnessing a shift logistics from operational activity to tactical and even strategic one. In this way, it was to expand logistics outside the enterprise and to outline the concept of supply chain. 2.1 The question of physical flow disruptions in logistics Interrupting the physical flow is a stage whene the commodity changes their place. Often this disruption is accompanied by a transfer of responsibility, which sometimes occurs when realized. In general, this flows interruption occurs during loading and unloading operations and changing means of transport. Momentul întreruperii fluxului este crucial în organizarea lanţului logistic şi în performanţa sa globală, pentru următoarele motive: The moment of interrupting the flow is crucial in organizing the logistics chain and its overall performance for the following reasons: is a favorable time to find quality, quantity and the real value of goods sold, exchanged or transhipped for authorities (especially customs), and for vendors, customers and logistics providers; is an action that requires the consumption of resources (labor, information systems, manipulation systems, etc.); is a state in which the cargo is immobilized and becomes available for a new transport (multimodal transport), processing or marketing; it is a commodity level circulation in which the product may be damaged or stolen, for it is transhipped or may change temperature (especially in cold chain) and its duration may result in loss of cargo. The decision to build a logistics system will take into account the number of interruptions such flows and their vulnerability. Generally, interrupts occur at the intersection of 2 activities (often made by different companies). To avoid interruptions requires synchronization of activities, leading to the idea of supply chain. 2.2 The relationship between physical distribution and logistics - a relation of part to whole In the US, National Council of Physical Distribution Management (NCPDM), professional association founded in 1962, it played an important role in defining the physical distribution. As defined in 1972 by this organization, physical distribution is a term that describes the integration of two or more activities for planning, carrying out and controlling the efficient flow of raw materials, semi-finished and finished products, from point of origin to point of consumption. From this definition it is clear that these activities may include the type of services offered to customers, demand forecasts, communications related to distribution, inventory control, material handling, order processing, after-sales service and the related spare parts, siting factories and

13 warehouses, negotiation or reuse of recoverable, organization and the actual carriage of goods transport and storage. Currently, academia and business considers logistics as a strategic resource of the organization, a source of competitive advantage. Internationally, logistics is a skill that connects the enterprise with its customers and suppliers through two interrelated flows (Figure 2.1): - the flow of goods and the flow of information. Content logistics concept is much broader and more complex than the physical distribution. In reality, physical distribution is a component of logistics. In an undertaking manufacturing, logistics system includes the following major components: a) The physical distribution - the interface between supplier and customer, physical distribution operations ensure product availability for customers. Marketing objectives of wholesalers or retailers or final consumer expectations are met by providing utilities form, quantity, time and place. Physical distribution includes activities of transportation, warehousing, inventory management, customer order processing, packaging, management information b) Activities to support the production - logistician responsibility does not include the effective deployment of the entire production process. The support production activities only refer to material flows within the enterprise, between different stages of the production process. The contribution to production logistics is to ensure that materials, components, products being processed in the quantities necessary to conduct manufacturing activities in line with the established production schedule. c) Supply - Activities purchasing of raw materials, materials or finished products necessary to fulfill the company's goals, which were all logistical operations. Component of the logistics supply refers to the relationships established between the company and its suppliers, respectively levels upstream in the supply chain - delivery. Supply involves, besides buying activity, activities of transport, inventory management, storage, handling, information management 3. It should be noted that both in literature and in practice, meet situations where this threepronged approach is focused on operations, so the phrase activities supporting the production is replaced by the concept of support operations. This new concept refers to all material and information flows within the organization, aimed at supporting the efficient and effective conduct of the operations, according to established objectives and programs. 3 Bălan, C., Logistica parte integranta a lantului de aprovizionare livrare, Ed. Uranus, Bucureşti,

14 Organization Flow of goods The providers Supply Support operations Physical distribution The customers Flow of information Figure 2.1 Logistics system Logistics efficiency requires correlating supply activities, physical distribution operations and supporting activities within the company. Integrating the three areas is possible through the information flow, as shown in Figure 2.1. Exchange of information within the organization and between companies easier planning and control of daily operations. 2.3 Conceptualization supply chain Supply chain, known in the literature under the name of the chain supply or chain delivery includes all the activities that make up the flow and transformation of goods from the stage of raw materials to consumers or end users, as well as associated informational flow. This concept can include supply chain, along with suppliers and customers, and companies specializing in logistics services, including third-party non-operators.starting from the consideration that a supply chain is a coordinated system of organizations, people, activities, information and resources involved in moving a product in a manner physically or virtually from supplier to customer, often it can be represented graphically as in Figure 2.2 Flow of goods a..... b.... c..... d..... e Flow of information Figure 2.2 Graphical representation of a supply chain A supply chain is a network of suppliers, manufacturing companies, warehouses and distribution chanels organized to purchase raw materials, transform them into products and distribute them to clients

15 In other words, a supply chain is a system by which the companies send their products and services to customers. Supply Chain existence is justified by a number of factors, such as: developments in relations between industry and commerce. We are in a period where trade dominates the industry, especially by large stores selling. These require numerous conditions to manufacturing enterprises in ways to achieve the products, packaging, labeling, but especially on price and payment terms and deadlines. All this let a reduced decisional freedom to manufacturing enterprises, impacting their overall performance. development of new information and communication technologies. Advances in information technology and the media make possible the emergence of new ways of conceiving the relationship between firms. More than using electronic data interchange (EDI) systems, enabling real-time communication of relevant information to stakeholders. In this way, can eliminate the negative consequences of "whip effect" and improves the price competitiveness of products, thanks to cost reduction. increasing competition by oversupply. The strong competition in the markets generates the problem of finding new forms that products reach customers. developing strategic positions in companies: tracking, planning, forecasting etc.strategic management adopted by businesses can no longer be confined to their interior. As well as taken this step inside the enterprise is not isolated in the economic environment and as such interdependencies linking it with other participants in it do suffer their influence. expansion of globalization. Globalization increasingly makes more intensive large companies, in developed economies, to relocate activities related to various functions of the organization (and especially the production) in areas where they can be made more competitive. This relocation issue arises of delivery various components of a product for assembly plants (often located far) streams to be synchronized, leading to the establishment of logistics chains. increasingly resorting increasingly more to outsourcing and subcontracting. Outsourcing and subcontracting are the result of the previous process, closely linked to it. All these elements lead to the need to build and operate logistics chains as a way to realize activities in an efficient and effective manner. Design and operation of an efficient supply chain is a component of planning work conducted at both strategic and tactical level. Strategic supply chain planning involve decisions of network configuration, number, location, capacity, facilities technology. Planning tactical operations of the supply chain involves decisions on the purchase, processing and product distribution. Setting strategic supply chain is a factor key influencing effective tactical operations and thus has a lasting impact on a company. The objective that governs all efforts in a supply chain is to increase competitiveness by providing services accepted by customers at minimal cost. Improving services can be achieved in two ways: the development and integration organizations and eliminate unnecessary activities or costly; through better coordination of movements

16 These issues are highlighted through the following figure which summarizing the relationship between market players in terms of logistics (Figure 2.3). Provider Agent(s) Carrier Producer Agent(s) Carrier EDC/RDC Agent(s) Carrier Retailer Individual consumer Subcontractor Carrier Carrier Wholesaler Agent(s ) Consuming enterprise Figure no. 2.3 Relationship between market players (Adapted by Dantuma L.M.Y., Hawkins R.W., 2001) Again, the overall problem, in logistics and distribution are four main groups of actors involved, highlight in figure 2.3, as follows: Shippers are suppliers and manufacturers located upstream the chain. They can organize transport and logistics activities within companies or outsource these activities to specialized transport companies or logistics. Carriers mainly transporting the goods from point A to point B. However, many carriers offer more services (e.g. storage and freight) and many of them are gradually logistics providers. Merchants can be wholesale or retail. Mainly they are customers of carriers.merchants is the culmination of the distribution process and plays an important customer, but sometimes are considered and organizing and motivating forces within the supply chain. Logistics service providers are often classified into different groups. Examples of these groups are integrators, network operators, basic service providers

17 Source Logistics solutions Processing Transport Storage Management process Destination Figure no. 2.4 Tailored logistics value chain The most important activities in the supply chain, shown in Figure 2.4, are considered to be: processing - involves receipt and processing of customer request, freight distribution planning, packing goods for shipment (on pallets or containers); transport - involves the movement of goods from one place to another, either directly to the final destination or to an intermediary before the supply chain; storage and / or value added logistics activities - is an optional intermediate stage in the process that can contribute to increasing the value of goods through value added logistics activities. All the above phases may have different degrees of contact with two levels which are vertical in the value chain (levels which in some degree can relate to any or all of the three basic processes as described above). The two levels that are located vertically are: Management processes - such as tracking and recording capabilities; Logistics solutions - involving consultancy services relating to logistics options that are available in any or all the levels mentioned above, taking into account the needs of specific customers and product types. Phases mentioned above can be considered mainly as activities or functions exercised by different actors at transactions that build value. In practice, the activities and functions can be divided into several specific value-added activities. This assertion is especially true for logistics activities which involving planning, management and coordination and, subsequently, many other value added activities that can be generated

18 2.4 Supply chain models There are various models of chain, addressing both participants upstream and downstream of its. SCOR Model (Supply Chain Operations Reference), developed by the Council of Supply Chain measure overall performance of the supply chain. This is a reference model for supply chain management, building it from the supplier of the supplier to the customet of the customer. It includes order fulfillment and delivery performance, production flexibility, cost of honoring the terms and denials stock and assets, and other factors in assessing the overall performance of supply chain efficiency. Each link in the supply chain is an activity or group of activities that we can sum up in one of the four expressions of SCOR method: source: regarding supplies, therein included all the activities associated with this concept we find, purchase, setting references; make: that industrial production in its different variants: mass production, production control; deliver: refers to distribution in all its forms: sales to other businesses, sales to final customers with their various; plan: refer to operations of 2 cross-links that allow management of relations between the two rings. Each of the links is connected, except the extremities, to link upstream and downstream one. What is the Source for one, becomes Deliver for the supplying and lead to Make for one who uses the products supplied (sourced). For a logistician matters less content, procedures and techniques are used to a certain link, and especially his leadership and hence the planning (plan). For example, in an assembly plant, manufacturing techniques not only indirectly interested in the supply chain, business planning instead of machinery and supply components related to supply chain management (SCM). Global Logistic Chain Forum has introduced another model of supply chain. This framework is constructed of eight key business processes that are both interoperable and cross-company. Each process is led by a team-functional, which includes representatives from the fields of logistics, production, purchasing, finance, marketing, R & D. Processes within a supply chain are: customer relationship management; customer service management; demand satisfaction; order fulfillment; manufacturing flow management; supplier relationship management; product development and marketing; reverse logistics

19 CHAPTER III FREIGHT TRANSPORT LOGISTICS Logistics services include a mix of activities. Of these, transport has a significant share both in presence and especially in terms of costs. A company options to transport are numerous, but as different implications: to have their own means of transport, rent, resort to specialized companies to choose a specific mode of transport. All these must be analyzed in a specific context and can not be given before template solutions. 3.1 Modes of transport Transport can be defined as the activity by which is possible the movement of goods on different distances between various points. The main modes of transport are: road, water (sea and river), rail, air and pipeline. Road transport is a flexible mode of transport in terms of the route and the operating period. Goods can be delivered directly to the customer or to a place designated by them. Road transport means are effective for moving short distances of high value goods. Among the disadvantages of road transport may be mentioned that restrictions on customs controls (for international shipments) can be time consuming. Also, the long distances and the need to conduct water crossings, reduce the attractiveness for road transport. In addition, in some parts of the globe, especially in underdeveloped countries, road infrastructure is poor. Sea and river transport is a very cheap way to transport goods in the system for moving bulk products with low unitary value or non-perishable (e.g. coal and oil). Shipping is slow and may be dependent on the weather (for example, some ports are covered with ice in winter). Usually shipping is used in combination with other modes of transport in order to achieve delivery of goods from "door to door. Rail is a convenient way to transport goods in bulk system over long distances. The increasing use of containerized transport systems offer a flexible means regarding the use of rail transport, with minimal time and cost to transfer the load. Pipeline transportation requires a high initial investment for construction of the pipeline, but is a way that allows for a low marginal cost for transportation of fluids and chemicals. Transportation of crude oil and natural gas is associated usually with pipeline transport. Air transport is considerably more expensive per tonne / km than any other mode of transport, but much faster. It is preferable especially for moving perishable products, those high value and low amounts (eg diamonds, software, natural flowers etc.). We are currently witnessing a trend of expanding aviation market by promoting its services, which are based on the concept of full cost of distribution. Thus, higher transportation costs can be offset by reducing other costs (packing, insurance etc.). In addition, the development of larger and more flexible aircraft has reduced costs

20 The choice of modes of transport are taken into account a number of criteria, namely: speed, frequency driving, safety during transport, means of transportation capacity, availability of means of transport, cost of transport, type of the product etc. Of course that can not be met all these criteria simultaneously by a single mode of transport and therefore will be sought the optimization across multiple criteria that best meet the transportation needs of a company. This is because the decision on the choice of transport is of particular importance.some authors argue that share the cost of transport represents about 37% of the total cost of physical distribution. An increasingly common trend in relation to transport is expanding a combined or multimodal transport. Combined shipments involving the use of at least two modes of transport and can be of the following types: piggyback combines road and railway transport; fishyback combines road and water transport; trainship combines the railway and water transport; airtruck combines road and air transport. Although each of these combinations offer certain advantages to the carrier, piggyback system use is more widespread, the cheaper the exclusive use of road transport, flexible, convenient, less harmful to the environment and contribute to the reduction of road congestion. Difficulties in extending the piggyback system occur because of problems regarding the rail transport. These problems are related to conflicts of interest between railway companies in different countries, and the preponderance of public ownership of these companies. Therefore, in the field of railway transport, in general and the EU, in particular, is nedeed a reform which would allow companies Railway particular to compete with the public sector and the emergence of an authority rail for a region encompassing several countries (for example, for the entire Union European). This authority is needed to avoid technical differences between countries to tackle bottlenecks in the network, to coordinate members' interests. Dintre aceste modalităţi de transport cea mai largă extindere şi utilizare o are transportul rutier, datorită mai ales flexibilităţii sale. Of these modes of transport, widest expansion and use has road transport, largely due to its flexibility. This flexibility of road transport can be viewed through the lens size and capacity variables vehicles, the possibility of temperature control during the transportation of goods, characteristics of the handling of products (using equipment internal transport), eliminating multiple handlings of products shipped (road transport can use the supplier to the the buyer's door ). 3.2 Design transports in strategy of implementation logistics infrastructure Transport is particularly important in a logistics infrastructure, for reasons such as: its complete cost; downtime of goods during transportation; implications of each uninterrupted flow;

21 the risk that induce assess "total quality" and generally to assess supply chain performance. Offer transport, in turn, is manifold on: means they use; communication lines it uses; size businesses that provide transportation services. Selecting the means of transport is therefore a strategic part of the overall decision to implement a logistics infrastructure that includes the number, geographical location, size and types of deposit. The share of transport tariff in the full cost of the supply chain was rated by the World Trade Organization (WTO) in document "Concerning the IRU Resolution - No trade without road transport - adopted unanimously by the General Assembly IRU at 4 November 2005 Geneva. In this resolution states that: "Transport is a key driver of economic and social progress. Moving goods and people and contribute to the performance of services worldwide. Logistics sector participates with approximately 6% of world GDP, with a total value of logistics operations exceeding 10% of world trade. Consequently, the contribution of national and international logistics activities that ensure the mobility of goods on the planet amounted to more than 2000 billion US dollars in Transportul de mărfuri pe şosea reprezintă partea centrală a lanţului logistic, fie că este considerat individual, fie în cadrul operaţiunilor multimodale. La nivel mondial, camioanele transportă în jur de 80 % din încărcături pe rutele terestre. Astfel, orice măsură de facilitare a transportului rutier are un impact benefic şi durabil asupra progresului economic şi social şi a bunăstării naţiunilor. Road freight transport is the central part of the supply chain, whether considered individually or in multimodal operations. Worldwide, trucks carrying about 80% of cargo on land routes. Thus, any measure facilitating road transport and has a beneficial and impact sustainable on economic and social progress and well-being of nations. The cost of transport can be expressed: per kilometer; on the weight or volume transported; on the number of loads (parcels, pallets, etc.) carried; on the weight-kilometer transported (generally per ton-km). For long distances and heavy loads (also for the amount of fuel and greenhouse gas emitted), the order of preference in terms of different modes of transport cost will be generally as follows: o sea and river transport; o railway transport; o road transport; o air transport. It must be noted that in terms of speed, the order is reversed. Transport quality is a relative concept, which covers several concepts, more or less controllable: duration of the transport, which is not fully controllable in terms of choosing a mode of transport or anticipating possible risks (strikes, infrastructure works, climatic risks, etc.). Duration flow interruption is included in the "delivery time"; ability to keep cargo arrived in good condition (no damage, theft, damage, etc.); environmental impact (ecological fragmentation, roads damaged, emissions of greenhouse gas pollution induced by vehicle life cycle, etc.). Various labels (EMAS - Eco Management

22 and Audit Scheme, ISO etc.) integrates environmental quality and continuous improvement in this area. Choosing a mode of transport does not always depend only criteria desired by shippers. The relative or temporary ineffectiveness or absence of the necessary infrastructure sometimes requires choosing a less favorable variants. Offer transport must therefore be examined in its spatial and temporal context. Given the importance of road transport, at European level, in the EU is of special concern for this area, manifested by developing uniform legislation. 3.3 Criteria for choosing the carriers Although carriers were equipped with commercial services able to manage the relationships with shippers, the complexity of international transport operations often make it impossible to use intermediaries. Often encounter under the general name of "forwarders", the carriers are actually great diversity and variety of skills, knowledge and legal status. Specialized by mode of transport, geography, or by type of benefits (eg instant messaging, chartering refrigerated containers etc.), carriers are either agents (when working in someone else's name and account) or commission (intermediaries in commercial operations, receiving a commission for the services made). There are functions of commodity flow analysis, assembly and associated services such as commodity group, receiving its corresponding customs formalities etc. A global thinking should lead to drawing up a specification which defines: nature of traded goods (size, value, weight, fragility, etc.) customer requirements (delays, frequency, quantity, price); geographic areas and their specific (frequency departure, during transit, safety); services provided at departure or arrival on types of customers, regions, types of activity; the particular elements that define the provision of the service: brand image, reliability, delays, costs. This specification takes into account the proposals and observations made by all departments undertaking and, in particular, the production and trade. Global logistics solution requires an analysis of the needs of storage and delivery frequencies. Choice of technical solution (how transport and intermediate type) requires study of different transport offers. For current international shipments, the company often negotiates with the same carrier, which can lead to a customized service, as well as some great rates. However, it can make "calls for proposals" for more complicated operations, or simply to confuse competition. Following them will get more bids and therefore "currency" to be compared on the basis of several criteria that price is not always the key factor: a) Storage and frequency of deliveries Commodity storage is a cost that each undertake attempts to minimize often by sending its upstream and downstream. Exporters must therefore compromise between their financial itinerary and those of their client's, optimizing the quantities to be delivered

23 The way storage is also an important choice: be located near production sites or near the client company, in other words abroad. Means of storage and storage costs are therefore different. This latter option allows the goods to be shipped to the customer in smaller quantities with very little delay. b) The period of unavailability of goods during transport The total duration of transport and timeliness are increasingly competing factors most important in a context in which the concepts of "just in time" and "zero stock" became demonstrating sound management criteria. In addition, certain products (perishable or high value) allow only a very short time immobilization. c) Quality of supplies Supplies quality can be defined as the ability of the carrier to comply with all the requirements and restrictions stipulated in the contract of export-import by taking responsibility of operation from start to finish. d) Cargo safety during transport Goods transport safety depends on particular characteristics of the package and overall solution developed transit, being expressed by indicators such as the number of damaged cargo, detained or known itinerary, control of cargo unloading and loading. e) The transportion tariff Price is not always essential criterion for comparison. It should not be isolated from other selection criteria. In addition, at prices equal, provision should be equivalent. As such, it should try to obtain some detailed expenditure estimates from carriers to finally be able to compare the various items of expenditure. Price becomes a criterion for goods with a low value or there is a big market competition. 3.4 Making transport operations This involves several steps that must be organized and controlled and requires a certain type of insurance the cargo. In table no. 3.1 are outlined stages of transport operations and compliance physical operations and those related to document management. Physical operations Preparing labeling and packaging Obligations corresponding seller or buyer - These operations always fall in the seller account. - Labeling allows identification of goods in case of loss, to put a certain emblem according to the norm YES. - Packaging must adapt to the type of cargo and Table no. 3.1 Steps freight The required documents - Packing list - Appropriate certificates at the control requested by the client (quality, quantity) - Commercial documents

24 Sending cargo carrier Control of goods on departure Export clearance Control of goods at destination Import customs clearance transport modality. He may be in accordance (especially invoice) with certain rules. - In the sales FOB, FAS, FCA, the buyer must - Instructions on transport communicate to the seller the information on or removal order given by the carrier or commission which is responsable the seller or buyer. for sending the goods. - Certificate of transit. - Sales in the CFR, CPT, CIP, CIF, DES, DEQ, - Shippind documents. the buyer must communicate information about - Insurance. the consignee of the cargo. - DDU or DDP sales must be given means and modalities of reception of goods. - The carrier or broker carry out checks on the - Control may record the quantity, nature of the goods placed in their mentions on the transport care. These controls and the responsibility they document. have on load can vary depending on the type of transport required. - Is the seller's account in all cases less EXW. - Documents required to customs - Reception cargo involves unloading operation - The signature on the in the recipient's account, less to the carriage of transport document or bill cargoes by type of road or rail transport of lading or delivery (messaging) or transport FCL (Full Container available on certifying Load: delivery of goods; the transport based containers full sea. In this - Particulars, if any, should case the loading and unloading are account to be written on all copies of the exporter and then shifted to the importer.). transport document or the - In case of emergency or in case of failure must delivery note; be certain indications. - For apparent damage claims are made in a letter - It is always the account of the buyer less if DDP condition. to a certain period of time. - The documents required at customs Enables tracing of the charger to check the quality and cost benefits. This ensures adapting the chosen solutions for the enterprise market developments and techniques. 3.5 Freight contracts Charter party (Contract for shipping) In the commercial contract for international sale, one of the very important points, is the delivery terms. If the delivery terms require carriage of goods by sea with ships, it is necessary to conclude a contract for shipping. Transportation of goods by sea are carried out under an agreement between the shipowner (ship owner) and charterer (owner of the goods). Understanding occurred between these two actors interesed in the performance of the carriage, materialize in a written document which called charter party or contract shipping. (C / P, CH / P)

25 As is clear from the above definition, contracting parties are: owner or carrier - a natural or legal person, having operating merchant ships, which undertakes to provide the means of sea transport for transporting goods from one port to another, under conditions agreed with the owner of the goods; charterer or owner of the goods - a natural or legal person who hires a ship or part of its space for freight. The bill of lading (B/L) The bill of lading is one of the basic documents in the carriage of goods by sea and in certain circumstances constitutes legal relationship between the vessel (ship owner) and charterer. The signing of this document by the master, agent or owner proves that the vessel or cargo carrier received last in it to be transported and delivered to the terms, amount conditions and exclusions listed in the act. Discrepancies between actual condition of the goods (quantity, quality, etc.) and the entries in the bill of lading must be referred to signing it for the owner to be covered by liability to the recipient, for any mismatch found for delivery of goods. The bill of lading has the following functions and meanings: is an evidence that some cargo was loaded on board, was endorsed by the master or other person authorized by the carrier; is an act of ownership of the goods listed in it; it is a debt, so a value paper because who has the bill of lading is the ownwe of the goods; is a negotiable title which is passed from seller to buyer, together with all rights and obligations, by endorsement; substitutes the contract, being a record of all the transport conditions agreed between the parties. If the transportation is on contract, it must be incorporated into the bill of lading because the cargo recipient may disregard by contract. Table no. 3.2 The bill of lading forms Order Bills of Lading Nominative Bills of Lading Current Bills of Lading Direct Bills of Lading If the order bill of lading is issued "to order the seller (consignor)", the latter in its transmission, must sign the full set of bills of lading or the "signature white", with the Nominative bills of lading are issued in the name of the recipient, without making the mention or ''at his order. " They can not have function They are used for transport of certain vessels, directly, transmission of property of value papers and can not from the port without indicating person or on behalf of the recipient or his order. be disclosed to a third person by endorsement. of loading to the port of discharge. Without such a document (endorsement), delivery of goods can not be conducted only by the consignor (seller). Order bills of lading, are acts Transfer of ownership over goods belonging to a nominative bill of lading to a third person, can be made only after the preparation "document release", namely the transfer of ownership are issued for freight from the place of loading to the final recipient and cover the entire distance of transport, irrespective of the mode of transport (rail, river, sea, road) and the means of

26 which have securities strength, that can be traded (sold, purchased). Goods or delivery orders (provisions for release from storage of goods or part of merchandise from a bill of lading) may be received under the original bill of lading, with that signature of receipt. Goods unloaded under a nominative bill of lading can not be issued only to the recipient indicated in the bill of lading. Under normal trade relations, goods transported and discharged based on nominative bill of lading can be delivered to recipients without requiring them to submit original bill, but only on the basis of personal guarantees. Based on nominative bill of lading, sometimes can carry precious cargo transports.typically, however, such operations are exceptional. transport chose Air transport contract Main obligations of the parties to the contract for air transport are shown in Table 3.3: Obligations on the shipper Ensure suitable packaging; Marking packages; To provide carrier goods on the date stated in the contract; Issue AWB (air waybill); Provide for clearance of goods and satisfy checking operations, trade and exchange. Table no. 3.3 Obligations in the air transport contract Obligations on the carrier To load cargo; To provide transport to the destination in good condition, comply with contract terms; To unload cargo; Give notice of arrival to the recipient or intermediate specified on the AWB. Airway bill (AWB) is set by the airline or an approved agent, n connection with the sender's instructions and responsibilities. If these statements are found to be inaccurate in case of loss or damage, the sender will bear all consequences. All the mentions entries weight, cargo dimensions and its apparent status, is evidence against the carrier. Other features mentioned on the consignment note (volume, quantity, condition) does not have evidential value unless there is a check that contradicts prior to departure. Airway Bill is not negotiable and can not be transmitted by endorsement. If there is lost or has any irregularities, the responsibility does not lie with the carrier if it did not receive goods for loading

27 The letter may contain a group of goods, but also several shipments successive method most commonly used Types of AWB: neutral: no have carrier details; commercial: which the coordinates of issuing carrier are preprinted; in groups case: the commissioners propose groups or combined transport to cost less. In this case are issued Master Airway Bill or House Airway Bill to separate shipments. Warsaw Convention assumed the responsibility of air transport in case of damage or loss, lies with the carrier, from the moment of receiving cargo for loading until her discharge at destination. Entries which the carrier makes are written on the airway bill. Companies refuse to receive suspicious packages or features that do not match the information on the letter. The carrier is relieved if: It demonstrates that it took all necessary measures to bring merchandise in perfect condition or he did not like to take such measures; demonstrating the fault of the injured and direct relationship he had with this mistake The road carriage contract International road transport is governed by the Geneva Convention of 19 May 1956 in force in all European countries apart from Ireland. This Convention called CMR applies to all cargo consideration, at departure or at destination. Table no. 3.4 Obligations of the parties in the transport contract road Obligations sender Obligation carrier Packaging and labeling of goods Receiving the goods after checking Compliance with regulations on marking the parcel number and condition of the goods (mass and content if Information cargo carrier about required) specific indicators of goods Delivery of the cargo at the Load freight weighing more than 3 destination in place provided tons Ensuring cargo weighing less than 3 Be careful in drawing international tons document of transport Issuance of the transport document in To pay the carriage the exporter's account To regulate transit operations. The transport document issued in the international legal framework is a CMR consignment note, which is signed by the carrier and the shipper and shall be issued in at least three originals. The carrier is responsible for cargo since he received care until delivery, for total or partial damage. This responsibility may be mitigated by the entries of the carrier or the reasons for exemption under the Convention

28 The concept of delivery Cargo arrives at its destination is not sufficient to release the carrier from its obligations. It must notify the recipient of the arrival of the goods and pass on its delivery. The difficulty arises because the term of delivery is not defined in CMR and have accepted definition of courts " delivery is the physical receipt of the goods for the destination listed in the transport document. In practice, the carrier signed second copy of CMR, normally the recipient must sign the CMR only after checking of packages and the apparent condition of the goods. Entries on the consignment note shall be justified and accepted by the consignon. The sender must certify on the carriage letter "remarks accepted" and sign. However, the carrier is not relieved of all responsibilities. Letter CMR provides two types of reasons that allow the carrier to be relieved: General causes - Instructions wrong, erroneous order; - Inherent vice of the goods; - Major force. If the carrier proves that there is a link between damage and cause general will be relieved. Table no. 3.5 Types of reasons that allow the carrier to be relieved Specific causes - leaving open vehicle, maintenance, anchoring cargo; - loading or unloading by the consignor or consignee; - particular nature of the cargo which involves certain risks - inadequate marking of packaging; - transport of live animals. If it determines that the damage resulted from a specific cause. In case of delay or damage found, the recipient must carry out appropriate formalities in accordance with Article 30 of the Geneva Convention. Table no. 3.6 Stipulations of Art CMR Avarii sau lipsuri Carrier and consignee must declare damage in contradictory manner, if possible; If not: - apparent damage: entries to the delivery terms; - damage not apparent: entries in at least 7 days following delivery. Intȃrzieri Entries notified in writing to the carrier, no later than 21 days from the moment the putting the goods to the recipient. The compensation target is 8.33 DTS per kg gross weight. Does not compensate than material damage for the commodity. The delay compensates the limit price of transport. There are three assumption: declaration of value: the value declared is payable by the carrier ceiling; serious mistake; declaration of interest in delivery: allows for compensation for other damages, except for those materials. The general principle applied is that of freedom of tariff negotiations. Carriers offer prices based on departure and arrival areas, the distance traveled, the amount and volume of goods

29 The rail transport contract International rail transport is governed by the Berne Convention of 14 October 1890 by COTIF entered into force on 1 May 1985 with CIM consignment note revised. The agreement is when the Railways have accepted the goods and put the stamp of sending station on the international waybill. Signing the contract does not involve specific obligations to sender, unless it is inappropriate packaging and shipment has more than three tonne. International Convention on the carriage of goods by rail (C.I.M.) C.I.M. Conventios (Convention internationale concernant le transport par chemins de fer des mermarchandises), was first signed at the end of last century. Over the years, the convention has been subject to revision and improvement. In its current form, known as the Uniform Rules concerning the contract for international rail freight (CIM), it is valid and shall apply from 1 January CIM se aplică transporturilor internaţionale feroviare de mărfuri care traversează cel puţin o frontieră, cu precizarea că această convenţie se referă numai la anumite linii de cale ferată ale ţărilor participante la CIM (inclusiv cele combinate), menţionate într-o anexă specială denumită lista liniilor CIM. CIM apply to international carriage of goods by rail crossing at least one border, indicating that this agreement relates only to certain railways of countries participating in CIM (including combined) given in a specific annex called list of CIM lines. What are the main issues covered by CIM Convention? CIM contains regulations on the following major issues, namely: the scope of the Convention and exemptions from the scope; obligation to carry; items excluded from transport; items accepted for carriage under certain conditions; rates, unit of account, conversion rate of conversions or acceptance of coins; signing and execution of the contract of carriage deliverer, consignee and carrier responsability during the contract of international railway transport; rules on international rail of private coach; rules on international rail transport of containers. In accordance with the CIM contract of carriage between the deliverer and carrier is considered concluded once the rail transport received the merchandise, accompanied by the consignment note. Waybill CIM type consists of 5 tabs: original of the consignment note, which travels with the goods and is delivered to the recipient; waybill, which is stopped at the destination station and serves at reimbursement expenses of transport between the participating railways to transport; acknowledgment and certificate of receipt which also accompany the goods to the destination and remains the destination station after the recipient previously confirmed receipt of the goods;

30 duplicate of the consignment note, which is released to the deliverer after the contract of transport; jelly, document accompanying the goods to the border station, which it is taught. Taxes (transportation tariff, accessories taxes, customs duties and other taxes arising from the receipt of goods to transport up to release), payable either by the seller or by the recipient. The deliverer, who take all or part of the fees charged to, should indicate this on the consignment note, by using one of the following: franco tariff of transport, if take charge only the transport tariff; franco tariff of transport, inclusive..., if it takes charge and other duties outside the transport tariff, which is why he must state exactly these taxes; franco tariff of transport up to X, if takes charge of the freight rate up to X ; franco all taxes if he take charge of all taxes; franco for... if he take on the task to a specified value. What are the main responsibilities of the railways regarding the carriage, provided by C.I.M.? The deliverer is responsable for the accuracy indications and statements recorded under his care in the consignment note, bear all the consequences resulting from these guidelines or statements that are irregular, incorrect or incomplete. The railway always has the right to verify whether the consignment corresponds to the particulars of the consignment note and if the requirements relating to the carriage of goods permissible under certain conditions were met. If it comes to checking the content of the consignment, the deliverer or the recipient should be invited to attend this check, as it occurs in the transfer station or the destination station. The result of checking particulars must be entered in the consignment note. What are the situations provided by CIM in which the railway is exempted from liability in case of loss or damage the goods? The railway is exempt from this liability when the loss or damage is due to special risks inherent in one or more of the following facts: The carriage is made in discovered coach, under the applicable provisions or agreements established with the carrier and mentioned on the consignment note. Missing or defective of packaging for goods which by their nature are exposed to weight loss or damage, if not packed or are improperly packaged. Compliance with the deliverer, recipient or an agent of one of them, the formalities of customs bodies or of other administrative bodies. Nature of certain goods exposed itself that causes inherent natures, either total or partial loss or damage, especially through breakage, rust, spontaneous drying, spreading. Bringing goods to transport under a name inexact, irregular or incomplete of objects excluded from transport, only under certain conditions. Transport of live animals. Transport of goods which must be carried out with an attendant, to the extent that the loss or damage arises from a risk that accompany aim to eliminate

31 The railway must pay a compensation for total or partial loss of goods in these situations: In case of damage, the railway is liable to pay an amount equal to the decrease in value suffered by the cargo without any other damages. If resulting damage, including a damage from exceeding the execution time of the contract of carriage, the railway is obliged to pay a compensation not exceeding three times the transportation tariff. Administrative claims relating to the contract of carriage must be addressed in writing by the deliverer of goods to the railway, based on the duplicate of the consignment note or the receiver of the goods, based on original of the consignment note for failure to perform the tem of contract of carriage

32 CHAPTER IV LOGISTICS STORAGE OF GOODS 4.1 Terms used in logistics applications on the storage of goods Construction logistics = Warehouse or sorting area, a network node may belong to a provider, an industrial enterprise or distribution. There are 2 types of deposit: storage plant, which has the function of storing outputs of the production chain of an industrial; central warehouse, centralizing stocks coming from several production units. Logistics emplacement = Area of activity specialized in logistics. Pol logistics = Sector grouping various logistics emplacement in an area local. Aria logistics = It defines the scale of a metropolis, a region even more regions. The main operations are carried out in a warehouse are: Reception: download, verification on conformity, assigning the affected lot, entry in the inventory (management); Handling: transport of goods in the warehouse, compliance with safety standards, product enter stock availability, management eventual conditionings; Preparing orders: prepare pallets, picking action (removal of a lot of products and their inclusion in another), compiling lots ordered, regrouping of some shipments on areas, packaging, strapping, marking for shipment; Dispatch: grouping orders in the shipping area, the allocation of transport costs, completion lots for delivery and control, charging, recording computer. In achieving of logistics platforms are involved many professionals. After their roles during different phases related to construction, can be distinguished: a) developers or those dealing with planning. Whether they are controlled by central or local authorities, they aim economic development of the territory, enhancement of existing or future infrastructure, creating jobs etc. Mainly, they performed previous operation by the platform construction. b) the promoter performs an real estate operation (logistics equipment) to then resell it to an investor. As such, the promoter plays a temporary role in creating logistics platforms. c) investors may be general or specialized in logistic. Their logic of development creates on long term. Therefore, they aim to obtain economic security of their investments, thus privileging the logistics areas closest to major pools of

33 consumption, wit the risk of stress phenomena metropolitanisation. The same company can achieve both functions of the promoter and the investor. Share investors in achieving logistics sites is related to the importance of their financial means. They play a pivotal role between local communities and platform users. d) real estate consultancy companies for businesses involved in the sale or lease of all or part of the building. Their competence is looking buildings to be rented or sold, turnkey construction etc. Also, these companies have developed new services: deposit market studies, analysis of the economic environment, legislative, studies of large flows of goods and transport infrastructure. e) tenants are either senders or logisticians. The latter prefer to rent space for reasons of flexibility and mobility. This trend of rental favors metropolitanisation deposits and also construction of new deposits, which raises the question of old warehouses 4.2 Logistics infrastructure Logistics infrastructure consists of deposits and communication routes. Aims the material flows movement to direct them from places of production to places of transformation, and then from the places of transformation to places of consumption. Separation of production, transformation and consumption sites is the result of socioeconomic factors (related to the cost of labor), the environment (food production), geographic (minerals and ores), etc. Thus, for example, weather conditions permitting production of certain fruit somewhere on the planet, but the money available and consumer habits at the same products are elsewhere; or the cost of labor and social risks are lower in some countries, but the resources to purchase equipment goods they produce are elsewhere. Up of stocks may be based on various reasons: - speculate, that desire to buy a commodity abundant, then resell it making a gain in times of scarcity (when demand is greater than supply); - strategy and policy states or organizations, for example in the choice of storing gold, precious metals, fuels, goods considered of strategic importance for a certain company; - obligations that are based on the regulations, such as compliance duration of quarantine, such as the pharmaceutical or cosmetics production; - trade constraints, such as achieving increasing maturity of a fruit, flower, animal before becoming marketable; - production constraints, such as the obligation to assemble the various components of a finished product, before making its assembly; - financial requirements, which make transport more costly if is more frequently and if done on smaller lots sizes; in this case, to ascertain whether it is less expensive to use the storage building deposits and making them work or if it is less expensive to use to transport batches. The concept of logistics platform has been proposed as an important component of an efficient logistics system, ensuring the reduction of negative impacts of transport of goods for sustainable development

34 Logistics platforms are elements of the distribution system in which the operations of transshipment of goods, storage, marketing of goods in bulk packaging, sorting and grouping of goods for dispatch to the beneficiaries. They are designed to meet all requirements of urban logistics system using a complex information system, allowing application programs for optimal vehicle routing, planning efficient vehicle for the transactions collection / distribution of products. There are numerous problems of freight in urban areas, such as congestion, negative environmental impacts, high energy consumption. Often, to meet the demands of beneficiaries, freight cars carrying amounts lower than their capacity. A solution to relieve these problems as the construction of logistics platforms in the vicinity of the connection points between mainline routes and urban routes. Efectele construirii unei platforme logistice ar trebui evaluate utilizând indicatori care ţin seama de costul de transport, congestia traficului, efectele asupra mediului. Effects of building a logistics platform should be evaluated using indicators that take into account the cost of transport, traffic congestion, environmental effect. The concept of logistics platform attempts to reduce the social costs of freight transport by promoting efficient logistics systems, both for companies and for society. The location of logistics platforms, is generally made in connection points between the high capacity mainline transport and urban transport system (Figure 4.1). The results of the use of such a system with logistics platforms are reducing the number of vehicles required to offering at least the same level of quality, increasing the coefficient of utilization of capacity of transport vehicles, reducing journey vehicles, both the laden and empty state. Figure no. 4.1Structure of a distribution system with logistics platforms Logistics platforms provides the possibility to group small companies, creating the conditions to efficiently organize transport processes