Element of Logistics : Shipping of charcoal product .

CHAPTER 1

1.1 IntroductionCOAL-currently gaining high demand both in the country and abroad.

-types: coal, charcoal, mangroves and othersDEFINITION-active charcoal is an amorphous material in the

form of carbonUSES- firewood,a mixture of toothpaste, soap,cosmetics etc.

1.2 Company background-shipping company in Malaysia-represented by Enthusiasm Logistic Sdn.Bhd-operating starts 9 March 1999

1.3 Research background

•study the most effective means of delivery of goods.•best transportation option to send items outside of the peninsula•the importance of logistics in freight forwarding activities.•verification of declarations of interest in freight shipping

1.4 Problem statement-increasing charcoal

demand-people interested to use

it-become a chance to

entrepreneurs-we have made

partnerships-customers don’t have to

worry with the problem of running out of stock

1.5 Research Objective•To determine the best way to send charcoal •To identify the flow of logistic using to send material outside peninsular•To supply charcoal for customer in Sarawak

CHAPTER 2INCOTERM-are designed to create a bridge between

different members of the industry by acting as a uniform language they can use.

-also deal with the documentation required for global trade, specifying which parties are responsible for which documents.

-were created primarily for people inside the world of global trade. Outsiders frequently find them difficult to understand.

-can thus have a direct financial impact on a company's business. What is important is not the acronyms, but the business results.

-most frequently listed by category. Terms beginning with F refer to shipments where the primary cost of shipping is not paid for by the seller.

Types of Incoterm :1.EXW (EX-Works)2.FOB (Free On Board)3.FCA (Free Carrier)4.DDP (Delivered Duty Paid)5.CFR (Cost and Freight)6.CIF (Cost, Insurance and Freight)7.CPT (Carriage Paid To)8.CIP (Carriage and Insurance Paid To)9.DAT (Delivered At Terminal)10.DAP (Delivered At Place)11.FAS (Free Alongside Ship)*

CHAPTER 3

• 3.1 PACKING LISTA packing list, waybill ,packing slip (also known as a bill of parcel, unpacking note, packaging slip (delivery) docket, delivery list, manifestor customer receipt)

FunctionThe packing list serves as a backup to the package's invoice and as a checklist for customs officers if the package is imported.NamesA packing list may also be referred to as an unpacking note or list, a bill of parcels or a packing slip. RequirementsSome country may require packing lists for shipments entering their country if there is no invoice or manifest, since those goods will go through a customs inspection process.

INVOICEInvoice is the method of recording the sale of goods services provide from the business to the customers. DELIVERY NOTEDelivery note is a document accompanying a shipment of goods that lists the description, grade, and quantity of the goods delivered.

SHIPPING DECLARATION

TYPES OF INVOICE:1.Commercial invoice2.Proforma invoice3.Commercial invoice with declaration4.Certified invoice5.Legalised invoice6.Consular invoice7.Signed original invoices

• 3.2 BILL OF LADING (BL)-The most important single document in general

transport. It functions as a delivery receipt when products are tendered to carriers.

-The signed original of the BL is the shipper’s legal proof that the carrier received the freight.

-BL is a binding contract, specifying the duties and obligations of both carrier and shipper.

2 types of BL:• FREIGHT BILL – An invoice, submitted by the

carrier, requesting to be paid. The transport manager must approve each freight bill before it is paid.

• Transaction with government usually involve the issuance of LOCAL ORDER (LO) by the government.

• 3.3 CUSTOM DECLARATIONCustoms Form K3 - The Customs Officer will give the permission based on the application form and the goods that pass all the required under and in accordance with the Customs Act 1967. The forms must be fill with the correct information with the help of supporting documents.

LOGISTICS ACTIVITIES• 4.1 INTRODUCTIONLogistics is defined as the process of

planning, implementing and controlling the efficient and cost-effective flow and storage of raw materials, goods, equipment and personnel from the point of origin until the completion of an activity, in accordance with end-user’s requirements.

4.2 MATERIAL HANDLINGProcess of charcoal handlingBamboo charcoal production Bamboo charcoal production brief

Raw material preparation- Process of making bamboo briquette- Raw material preparation for bamboo

briquette charcoal—bamboo briquettemaking- Raw material preparation for raw bamboo charcoal- Process of making bamboo briquette (1)Disintegrating (2) Sorting (3) Drying

(4) Compressing into bamboo briquette

Carbonization process of brick kiln1） Feeding kiln2) Drying3) Pre-carbonization4) Carbonization5) High temperature refining6) Cooling

Collection of bamboo vinegarFinishing process of bamboo charcoal-Sorting- checking-Packing

CHAPTER 4

4.5 Customer ServiceListening is key because when you address an customer, no matter the size, you have to meet its needs to communicate effectively, and to know the needs of your customer, you have to listen.

4.3 Order Processing• Information flow from the order

to delivery• The order and its impact• Order transmission• Preparation• Routing• Picking• Shipment• Invoicing• Functions of order processing• Advance information flow• Accompanying information flow• Follow-up information flow

4.4 Communication Communication is the activity of conveying information through the exchange of thoughts, messages, or information, as by speech, visuals, signals, writing, or behavior.

4.6 Return GoodsReturn goods handling is complex because it involves moving small quantities of goods back from the customer rather than to the customer as the customer as the firm is accustomed

• 4.7 PackagingPackaging is defined in the

regulations as "all products made of any materials of any nature to be used for the containment, protection, handling, delivery and preservation of goods from the producer to the user or consumer."

4.8 Transportation4.8.1 types of transportationVehicles used by our company in the process of delivery of the goods are containerized trucks, trains and ships.4.8.2 Transportation used by company-container trucks used to carry containers filled with charcoal-Trains used to carry container to facilitate the delivery of goods-sea routes used to ship goods by ship

CHAPTER 5

5.2 Reference[1]http://legal-dictionary.thefreedictionary.com/bill+of+lading[2]http://www.adam-

europe.eu/prj/7095/prj/CourieL_WP2_Chapter2_final.pdf[3]BTRE (2001) Logistics in Australia: A Preliminary Analysis.

[4]Bureau of Transport and Regional Economics, Canberra[5] Carroll, J. (2004) The magical reserve tracing system-RFID.Taiwan CNET[6] Chang, Y.H. (1998) Logistical Management. Hwa-Tai BookstoreLtd., Taiwan.[7] Cooper, M.C., Lambert, D.M. and Pagh, J.D. (1997) Supply chainmanagement: more than a new name for logistics, InternationalJournal of Logistics Management, Vol. 8, No. 1, 1-13.[8] Fair, M.L. and Williams, E.W. (1981) Transportation and Logistics.Business Publication Inc., USA.

5.1 Conclusion Overall, we select the best route for the delivery of coal from our company to the buyer.

• Thank You