Introduction to Logistics v101

Introduction to Logistics

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 Introduction to Logistics v101

Key Learning Points

• Logistics is common sense and simple maths.
• Logistics deals with moving what is needed when it is
needed at a reasonable cost.
• There are several simple rules of thumb that you can
use
• Planning, Largest Truck, Avoiding Bottlenecks,
Norms, and Simplicity are the five golden rules for
logistics
• FIFO, Inspection, Records, Segregation, Tidiness,
Inventory, and Neatness are the seven rules for good
storage.

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Logistics?
Logistics comes from the Greek word Logistikos,
meaning skilled in calculating. Roman armies had
administrative officers called Logista.
The term Logistics originally applied to military logistics
only, but now applied to all sorts of logistics.
Logistics is applied common sense – the maths is
simple, but logisticians have to make it look complicated
to keep their jobs.

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What is Logistics?

Logistics is the process of planning, implementing, co-

ordinating, and controlling the flow and storage of goods,
services, and related information so as to deliver
• what is needed
• from where it is
• to where it is needed
• when it is needed
• at the lowest cost

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Weight or volume

For some commodities, weight is the limiting factor, for

others it is volume (the space that they take up).
You can fit 10t of maize on a 10t truck, but less than 1t
of empty jerricans.

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Rules of Thumb

There are basic rules of thumb for logistics planning:

• People need 0.5kg of food per person per day
• Family kits are equivalent to the weight of one weeks
food supply, but takes up as much space as three
weeks food supply
• It takes the same amount of transport to move people
from A to B as to move their food for 8 to 12 months
over the same route
• You need about 1m2 of storage area per 1,000 people
for each day's food stored (with a 2m stack height).

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The Logistics Chain

The Logistics Chain is the name given to the system that

takes goods from the source to the destination.
• Port to Primary Warehouse
• Primary Warehouse to Secondary Warehouse
• Secondary Warehouse to Terminal Warehouse
A chain is only as strong as the weakest link..
Port of End
entry user

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Information flow in Logistics System

Initial upstream information flow to trigger

start of downstream flow

Donors Users

Downstream flow through pipeline

Upstream flow to control downstream flow

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Main document flows

Requisitions and distribution reports

Donors Users

Waybill with goods

Copies of waybills to confirm receipt

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Five Golden Rules for Logistics: PLANS

Plan, Plan, Plan, and publish

Largest Viable Truck
Anticipate bottlenecks and delays
Norms, standards, and procedures
Simplicity – avoid transit warehouses if possible
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Plan, Plan, Plan, and publish

Planning is the key to
successful logistics.
Planning allows you to:
• Estimate the resources you
will need
• Anticipate potential
problems
• Coordinate your plans with
others
Publishing or sharing your
plans with others helps to
ensure that your plans do not
conflict with those of others

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Largest Viable Truck..

The bigger the truck you use the lower the cost per
tonne transported. However, bridges, ferries, loading, or
road conditions may limit the size of truck you can use.

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Anticipate bottlenecks and delays

Bottlenecks are places in the logistics chain which

restrict the flow through the chain.
Example of bottlenecks may be limited handling capacity
at ports, ferries, or limited distribution fleets..

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Norms, Procedures, and Standards

Standard procedures mean that:
• Everyone has the advantage of lessons
learned in other operation
• Staff don’t waste time reinventing the
wheel
• The opportunities for fraud and theft are
reduced
• Staff who are moved from one site to
another don’t need to learn a new
system.
Every time you deal with a new problem,
consider if it would be useful to develop a
standard policy for this.

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Simplicity in the chain..

The logistics chain is the path which the food follows

from the port of entry to the end user. Loading and
unloading goods not only costs money, but also provides
opportunities for theft or damage.

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Warehouse Rules

FIRST-IN
First In First Out
Inspection
Records
Segregation
Tidy, clean, and dry
-
Inventoried
Neatly and safely stacked

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First In First Out

Whatever arrives first in the store

should be the first to leave.
This policy is called First In First
Out or FIFO. The advantages of
this policy are:
• That the danger of stock in the
warehouse getting out of date is
minimised.
• The constant turnover helps to
ensure that any problems are
quickly discovered.

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Inspection

Warehoused goods need to be inspected on arrival as

well as during their time in the warehouse. Inspection
should be used to detect:
• Damaged containers and commodities
• Spoiled commodities
• Infestation
• Pilferage or theft

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Records

You must record:

• All receipts.
• All issues.
• The changing stock level in the store.
It is good practice to keep two records of movements,
one in the formal store ledger and the other on the “stack
cards” which record movement on each stack.

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Segregation

Commodities of different types should be segregated

from each other to allow counting.
It is particularly important to segregate damaged
commodities from other goods.
Sometimes, donors may require that commodities from
different sources be segregated both in the store and in
the records..

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Tidy, clean, and dry

The ideal warehouse is tidy, clean, and dry.

• Tidiness means that goods are properly stored off
the floor on pallets and away from walls.
• Cleanliness allows the rapid identification of damage
by rodents, insects, or birds.
• Water is the enemy of almost all stored
commodities, it may corrode containers or lead to
products germinating or rotting.

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Inventory (Stocktaking)

Stocktaking or taking an inventory ensures that the

physical stocks match what is recorded.
Stocktaking allows:
• Theft and fraud to be detected
• Finding out of date commodities
• Finding damaged commodities
• The updating of store records

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Neatly and safely stacked

Neat stacking allows rapid

counting of the goods.
Safe stacking means that
stacks are properly built, and
the risk of stack collapses is
minimised.
Cross stacking makes stacks
stronger.
Stack heights may also be
limited by the strength of the
containers used..

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Key Learning Points

• Logistics is common sense and simple maths.
• Logistics deals with moving what is needed when it is
needed at a reasonable cost.
• There are several simple rules of thumb that you can
use
• Planning, Largest Truck, Avoiding Bottlenecks,
Norms, and Simplicity are the five golden rules for
logistics
• FIFO, Inspection, Records, Segregation, Tidiness,
Inventory, and Neatness are the seven rules for good
storage.

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 Introduction to Logistics v101

This presentation was Warning

developed by InterWorks Any advice given or implied
Europe Limited. For in this presentation is of a
more information contact: general nature and does not
John Cosgrave cover all situations. In some
InterWorks Europe cases it may be
Ballyshoneen inappropriate to follow
Berrings whatever advice is given
Co Cork here. The author and
Ireland InterWorks Europe therefore
interworks@eircom.net decline responsibility for
Tel: +353 21 7332134 cases where any advice
Fax: +353 21 7332210 given here proves not to be
the best course of action.

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