Page 181 - DMGT546_INTERNATIONAL_TRADE_PROCEDURE_AND_DOCUMENTATION

International Trade Procedures and Documentation

Notes
Figure 8.1: Choice of Procurement

Inward Transport (Traffic): This actually moves material from the suppliers to the
organisation’s receiving area. This has to decide the type of transport (road, rail, air, and
so on), find the best transport operator, design a route, make sure that all safety and legal
requirements are met with and get deliveries on time at reasonable cost, and so on.
Receiving: It makes sure that the materials delivered correspond to the order, acknowledges
the receipt, unloads the delivery vehicles, inspects the materials for quality, damage and
arranges them in order.

Warehousing (Stores): It includes the movement of material for storage, and takes care of
them until the customers utilize them. Many materials need special care, such as frozen
food, drugs, alcohol in bond, chemicals that emit fumes, etc. Warehousing activity makes
sure that the materials are available right on time when needed, in good condition.
Stock Control: It sets the policies for inventory control. It considers the materials to store,
overall investment, customer service, stock levels, order sizes, and order timing and so
on.

Order Picking: It finds and removes materials from the storage. Typically materials for a
customer order are located, identified, checked, removed from racks, consolidated into a
single load, wrapped and moved to a departure area for loading into delivery vehicles.

Material Handling: It moves material through the operations within the organization. It
moves materials from one operation to the next, and also moves materials picked from
the stores to the point where they are needed. The aim of materials handling is to give
efficient movements, with short journeys, by using appropriate equipment, with little
damage and using special packaging and handling where needed.
Outward Transport: It takes material from the departure area and delivers them to
customers.

Physical Distribution Management: It is a general term for the activities that deliver the
finished goods to the customers, including outward transport. It is often aligned with
marketing and forms an important link with downstream activities.

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