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Freight Management

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Freight management involves logistics planning, which includes a generalized approach to corporate strategic planning is outlined, and this is linked to a specific logistics design strategy. It involves product characteristics, the product life cycle, packaging and unit loads.

Central Place Theory

The process of exchanging something of value between two parties (e.g., producers and suppliers, producers and consumers, producers and distributors, or distributors and consumers) that are distant from each other often triggers transportation activities. Although this process can take place anywhere in between the respective locations of those two parties, its location can either boost or undermine transportation activities.

However, if that remote location of the marketplace can offer a diverse range of product assortments due to its scale (size), it may still draw consumers from longer distances. In other words, the location and size of the trading area can dictate transportation activities. This concept can be explained by the Central Place Theory. It helps explain reasons why people gather together in cities and towns to exchange their goods, services, and ideas.

Unit Load Concept

The use of a unit load enables goods and packages to be grouped together and then handled and moved more effectively using mechanical equipment. Two familiar examples are the wooden pallet and the large shipping container, both of which, in their different ways, have revolutionized physical distribution and logistics. From the product point of view, it is possible to introduce unit load systems to alter the characteristics of a product and thus make more effective e logistics possible.

Concept of Unit Load

Principle of Unit Load states that, “it is quicker and economical to move a lot of items at a time rather to move each one of them individually”. In other words, this principle suggested that, the larger the load handled, the lower the cost per unit handled.

For small parts, or parts where machines are engaged for handling, movements are made in containers. When machines are used for materials handling, units can be made machine size rather man size. Unit load principle implies that materials should be handled in most efficient, maximum size unit, mechanical means to reduce the number of moves needed for a given amount of material.

A number of items, or bulk material, so arranged or restrained that the mass can be picked up and moved as a single object too large for manual handing, and which upon being released will retain its initial arrangement for subsequent movement.

Characteristics of a Unit Load

Types of Unit Loads

These are the key to most unit load applications, and are made of wood, plywood, steel, light weight metals, plastic etc. These are constructed either a rigid one or collapsible to permit their return by common carrier in a minimum space.

Unit Load on a Platform

Unit Load on a Sheet

Unit Load on a Rack or Trays

These racks or trays are designed to hold parts in a desired position and may have wheels. These are provided with inserts, holes or pegs or divid­ers for ease of handling and inspection etc.

 

Unit Load in a Container

Containers are made in the form of full or partial enclosures to suit requirements. Containers include boxes, bins, crates etc.

 

Self-contained Unit Load

These do not require auxiliary aids. Examples of such unit loads are bundles, bales, interlocked unit loads and fastened unit loads.

Securing the Unit Load

Commonly used methods of securing the unit loads (unitizing) are:

Designing the Unit Load System

Factors considered for designing:

For designing (planning) the unit load system following factors should be considered:

Criteria for unit load design:

After having understood the factors and criteria for unit load design, next step is to design (or plan) the unit loads. A logical approach must be followed to solve the unit load problem.

Guidelines for Unit Load

Reducing Freight Costs

Shippers often work under the assumption that the way they ship freight (and the associated costs) are pretty much fixed and can’t change. A smart approach opens the door to savings that can reach as high as 50% of “business as usual” freight charges. Few suggestions are listed

 

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