Topic 22: Types Of Relationship

There are two main types of buyer and seller relationships. The buyer is the person or organisation that purchases products from suppliers. A buyer could be a manufacturer purchasing raw materials a customer buying a finished product from a retailer. The relationship between the buyer and seller can be either short term (one off or low commitment purchases) or long term, involving regular purchases based on established agreements.
Both short term and long term buyer and seller relationships have advantages and disadvantages. Short term relations can be useful when a degree of flexibility is required. For example, short term agreements give the buyer the option to switch suppliers for their next purchase.

They can also be beneficial in markets where the prices of materials are volatile and long term commitments are not appropriate. The high level of competition to win short term contracts can also provide opportunities for price discounting and special deals to be done.
However, short term arrangements also have their disadvantages. They generally provide little scope for payment and order flexibility. For example, a new supplier on a short term agreement will want a definite order and prompt payment. There is no trust built up over time between parties, so the opportunity to share market information is also reduced.

There are many advantages that come as a result of building strong buyer and seller relations over a period of time. There is a greater commitment from both groups which means that you will be better able to rely on them when it comes to orders and payments. There may also be more scope for discounts after the relationship is established and there may be more flexibility in the timing of payments. Trust between the buyer and seller is developed over time and this may allow for the sharing of information, forecasts, knowledge and customers between the buyer and seller.

However, long term buyer and seller relationships generally involve a high level of commitment and work to maintain. Entering into long term contracts may be involved so it is important to have accurate forecasts about the future performance and needs of both businesses. Generally, most organisations will have a balance of both long term and short term relationships with their buyers and sellers. This balance can provide some of the benefits of both, while also reducing the amount of associated risks potential problems

Topic 21: what and why use the bill of lading?

A Bill of Lading is a document issued by a carrier to a shipper of goods. It is a negotiable instrument, and it serves three purposes, it is a receipt for the goods shipped; it evidences the contract of carriage; and it serves as a document of title example ownership.
1. Straight Bill of Lading: This is typically used when shipping to a customer. The "Straight Bill of Lading" is for shipping items that have already been paid for.
2. To Order Bill of Lading: Used for shipments when payment is not made in advance. This can be shipping to one of your distributors or a customer on terms.
3. Clean Bill of Lading: A Clean Bill of Lading is simply a BOL that the shipping carrier has to sign off on saying that when the packages were loaded they were in good condition. If the packages are damaged or the cargo is marred in some way (rusted metal, stained paper, etc.), they will need issue a "Soiled Bill of Landing" or a "Foul Bill of Landing."
4. Inland Bill of Lading: This allows the shipping carrier to ship cargo, by road or rail, across domestic land, but not overseas.
5. Ocean Bill of Lading: Ocean Bills of Lading allows the shipper to transport the cargo overseas, nationally or internationally.
6. Through Bill of Lading: Through Bills of Lading are a little more complex than most BOL. It allows for the shipping carrier to pass the cargo through several different modes of transportation and/or several different distribution centers. This Bill of Landing needs to include an Inland Bill of Landing and/or an Ocean Bill of Landing depending on its final destination.
7. Multimodal/Combined Transport Bill of Lading: This is a type of Through Bill of Lading that involves a minimum of two different modes of transport, land or ocean. The modes of transportation can be anything from freight boat to air.
8. Direct Bill of Lading: Use a Direct Bill of Lading when you know the same vessel that picked up the cargo will deliver it to its final destination.
9. Stale Bill of Lading: Occasionally in cases of short-over-seas cargo transportation, the cargo arrives to port before the Bill of Landing. When that happens, the Bill of Landing is then "stale."
10. Shipped On Board Bill of Lading: A Shipped On Board Bill of Lading is issued when the cargo arrives at the port in good, expected condition from the shipping carrier and is then loaded onto the cargo ship for transport over seas.
11. Received Bill of Lading: It is simply a Bill of Lading stating that the cargo has arrived at the port and is cleared to be loaded on the ship, but has not necessary mean it has been loaded. Used as a temporary BOL when a ship is late and will be replaced by a Shipped On Board Bill of Lading when the ship arrives and the cargo is loaded.
12. Claused Bill of Lading: If the cargo is damaged or there are missing quantities, a Claused Bill of Landing is issued.

Topic 20: why information management is important?

The following are the most important reasons to have a good management information system:
To reduce operating costs
Record keeping requires administrative dollars for filing equipment, space in offices, and staffing to maintain an organized filing system (or to search for lost records when there is no organized system).
To improve efficiency and productivity
Time spent searching for missing or misfiled records are non-productive. A good records management program (e.g. a document system) can help any organization upgrade its record keeping systems so that information retrieval is enhanced, with corresponding improvements in office efficiency and productivity. A well designed and operated filing system with an effective index can facilitate retrieval and deliver information to users as quickly as they need it.
Moreover, a well managed information system acting as a corporate asset enables organizations to objectively evaluate their use of information and accurately lay out a road map for improvements that optimize business returns.
To ensure regulatory compliance
In terms of record keeping requirements, China is a heavily regulated country. These laws can create major compliance problems for businesses and government agencies since they can be difficult to locate, interpret and apply. The only way an organization can be reasonably sure that it is in full compliance with laws and regulations is by operating a good management information system which takes responsibility for regulatory compliance, while working closely with the local authorities. Failure to comply with laws and regulations could result in severe fines, penalties or other legal consequences.
To support better management decision making
In today's business environment, the manager that has the relevant data first often wins, either by making the decision ahead of the competition, or by making a better, more informed decision. A good management information system can help ensure that managers and executives have the information they need when they need it.
By implementing an enterprise-wide file organization, including indexing and retrieval capability, managers can obtain and assemble pertinent information quickly for current decisions and future business planning purposes.  Likewise, implementing a good ERP system to take account of all the business’ processes both financial and operational will give an organization more advantages than one who was operating a manual based system.

Topic 19 : Airline Industry

The airline industry is highly competitive, is characterized by low profit margins and high fixed costs, and we may be unable to compete effectively against other airlines with greater financial resources or lower operating costs.

        The airline industry is characterized generally by low profit margins and high fixed costs, primarily for personnel, aircraft fuel, debt service and aircraft lease rentals. The expenses of an aircraft flight do not vary significantly with the number of passengers carried and, as a result, a relatively small change in the number of passengers or in pricing could have a disproportionate effect on an airline's operating and financial results. Accordingly, a minor shortfall in expected revenue levels could harm our business.

        In addition, the airline industry is highly competitive and is particularly susceptible to price discounting because airlines incur only nominal costs to provide service to passengers occupying otherwise unsold seats. Although we do not currently face nonstop competition on many of our route competing airlines provide connecting service on many of our routes or serve nearby airports. In addition, we have faced other competing services in the past, and we cannot assure you other airlines will not begin to provide nonstop service in the future on the routes we serve. Many of these competing airlines are larger and have significantly greater financial resources and name recognition. We may, therefore, be unable to compete effectively against other airlines that introduce service or discounted fares in the markets we serve.

    The airline industry began its development in the early part of 20^th century, and its growth influenced  to a great extent iniatially by government interest and policy. airlines are unique in they face limited intermodal competition , but intramodal competition is very keen in term of pricing and service and has been exarcerbated by unused capacity. The higher cost of airline service can be trade off gain lower inventory and warehousing costs, as well as another logistic related savings.

    Airlines usually provide service for small shipments where value is high and the product may be perishable. Speed  also the major advantage of airlines service can for both passenger and freight , but the airlines speed of service has been offset recently by congestion and fewer flights. Major and national airlines use a hub approach to their service , which contributes to operating efficiency but often adds travel time.

Topic 18 : Terberg Tractors Malaysia Clinches RM10mil Kontena Nasional Contract

Pasir Gudang, Johor, 15 February 2012 - Terberg Tractors Malaysia (TTM), a joint venture between Terberg Group and Sime Darby Industrial Sdn. Bhd., was awarded a contract worth RM10mil by Kontena Nasional Berhad. The contract comprises 40 units of the YT220 MKII Terberg Terminal Tractors. The deal is also accompanied by a service and maintenance contract worth an additional RM5mil over the next five years.

Kontena Nasional is a leading container handling company in Malaysia and it recently introduced value-added services through its expansion into Container & Crane Handling. Kontena Nasional successfully clinched a tender by Westport to operate five quay cranes and TTM was subsequently awarded the contract to supply 40 units of terminal tractors.

Yoong Kee Sin (third from left), Senior Vice President Strategy, Sime Darby Industrial Sdn Bhd handing over the Terberg mock key to Mahnorizal Mahat, Chief Operating Officer of Kontena Nasional Global Transport at the handover ceremony in Pasir Gudang. The first delivery to Kontena Nasional was undertaken at a handover ceremony in Pasir Gudang, where TTM’s manufacturing and assembly line is located. Chief Operating Officer of Kontena Nasional Global Transport, En. Mahnorizal Mahat, was present at the handover ceremony.

Commenting on the contract award, Managing Director of Sime Darby Industrial, Chong Kwea Seng said, “The contract represents a testament of faith on the part of Kontena Nasional towards our products. Our focus has always been to deliver equipment and expertise to improve efficiency and competitive advantage for our customers”.

“More importantly, the use of quality terminal tractors in ports is the right way forward. Port operations can be distilled down to two things, efficiency and reliability; you need the right tool for the right job”. Chong added. TTM’s solid products are anchored on the philosophy of continuous improvement. The MKII sports an upgraded Euro 3 engine and ample enhancements in the overall specifications to provide more than 10% savings in fuel efficiency.

“In fact, the MKII is not an unfamiliar sight in Westport. The port is already running more than 100 units. With close to 40 quay cranes operating at Westport, there are sufficient opportunities for Kontena Nasional to expand its footprint in the Malaysian ports scene; and we too, are looking forward to Kontena Nasional winning more businesses from these ports,” said Chong. He added that TTM was committed to providing even greater value and quality service support to meet the port’s high expectations and deliverables to its worldwide customers. This included offering a comprehensive maintenance service for the Terberg fleet running in Westport under Kontena Nasional Berhad. The handover ceremony was held in conjunction with a luncheon with Sime Darby Industrial’s employees at the Pasir Gudang manufacturing and assembly facility. The luncheon was attended by more than 130 employees, with representatives from Kontena Nasional Berhad as guests of honour.

Topic 17 : Freight Forwarder

A freight forwarder, forwarder, or forwarding agent, also known as a non-vessel operating common carrier (NVOCC), is a person or company that organizes shipments for individuals or corporations to get goods from the manufacturer or producer to a market, customer or final point of distribution.[1] Forwarders contract with a carrier to move the goods. A forwarder does not move the goods but acts as an expert in supply chain management. A forwarder contracts with carriers to move cargo ranging from raw agricultural products to manufactured goods. Freight can be booked on a variety of shipping providers, including ships, airplanes, trucks, and railroads. It is not unusual for a single shipment to move on multiple carrier types. International freight forwarders typically handle international shipments. International freight forwarders have additional expertise in preparing and processing customs and other documentation and performing activities pertaining to international shipments.

Information typically reviewed by a freight forwarder includes the commercial invoice, shipper's export declaration, bill of lading and other documents required by the carrier or country of export, import, and/or transshipment. Much of this information is now processed in a paperless environment.

The FIATA shorthand description of the freight forwarder as the 'Architect of Transport' illustrates the commercial position of the forwarder relative to his client. In Europe, some forwarders specialize in 'niche' areas such as rail-freight, and collection and deliveries around a large port.

Lloyd's Loading List is the freight forwarding industry's journal of record, first published 160 years ago as a UK export directory. Today it provides details of forwarders, NVOCCs and shipping lines/agents who serve over 10,000 ports globally. Some forwarders handle domestic shipments only.

Topic 16: Intermodal and Special Carriers

Special carrier is some of these carriers could be classified as air carries or trucking companies, however they provided some value added services not provided by the basic modal carrier. These value added services not shipper through freight cost savings or service improvements that lowered the shipper’s or buyer inventory cost. It will transport for high demand high value added. For example, gold they can more security for protect their product. They have air freight forwarders, freight brokers and shipper association. Air freight forwarders are consolidating small shipment for long haul and eventual distribution. Freight brokers are the middlemen between the shippers. Shipper association is the member firms. The benefit is through the better services and lower total transportation cost.

Inter modal is involves the use two or more mode transportation in moving shipment from one origin to the destination. For example Malaysia to China. Malaysia sends a product by water after arrived at China the supplier can use the other transportation to easy send to the customer by truck. They have 3 owner operators, express services and dragged carrier. Owner operators is the term operators was traditionally applied to a person who owned or leased the truck and often a trailer and made his or her equipment and driving services available to for hire carrier. An express service is for example FEDEX, UBS. The company provided their services. Fast delivery and no make more time to send for the one product. Dragged carriers are motor carriers that provided pickup and delivery services in the local metropolitan area, piggyback ramps area or container area.

Containerization is nothing more than a big box into which the freight is loaded; improve the efficiency of interchange among modes. Basic size for one container is length from 28 to 53 feet. They have advantages and disadvantages for the use container. A first advantage is safety; the product can be more protection from bad weather. Minimize handling and design by steel. Second, save cost; minimize handling, consolidate freight and fully utilize. Third, goods can be carried more easily. Four, temporary is not for rent warehouses.  Five is flexibilities; interchanges mode (water, rail, road), standard dimension, loaded into container become 1 unit. Lastly, high security is have a seal and able to trace.