Logistics Assignment Evaluating The Principles Of Unitisation
Question
Task:
Your task is to research the development of unitisation and its impact on materials handling in logistics. This includes the use of all levels of unitisation from master carton level up to containers and how they have facilitated significant alteration to the design and development of handling systems in both warehousing and transportation. You should also investigate the current and possible future technological advances that are only made possible by the adoption of unitisation in modern logistics contexts.
You are to produce a 2000-word academic report on logistics assignment for submission.
You must research the development of unitisation, the impact that it has had on storage and transportation. You should critically discuss the definition and primary principles of unitisation as a concept and outline its use in logistics. This should cover methods of unitisation and the warehouse and transportation systems that have benefit most from it. You should therefore also discuss the impact on the wider logistics network, in terms of costs and benefits of existing and future approaches to unitisation and possible areas of future innovation that may further enhance supply chain efficiency.
You must apply the theory from this module, providing examples where this could be used to improve materials handling and the transit of stock through the logistics processes. Note the learning outcomes cover more than just unitisation itself and relate to both warehousing and transportation. You should consider this when formulating your response to this task. You must therefore demonstrate awareness of the impact that unitisation has had on the end to end supply chain process and, where appropriate, over the whole lifecycle of unitisation methods.
Answer
Introduction
The term warehousing explored in the present context of logistics assignment is a core element for conducting commercial activities from the traditional period. This element is found to be a significant aspect of supply chain management. Therefore, the developments of the warehousing process are required to develop appropriately for ensuring positive outcomes (Cilt International, 2017). The relationship between supply chain management and warehouse utilization is directly related to each-other. This is because the core role of warehousing is to store the products for future use. Therefore, ensuring and utilizing a potential amount of storage is the core requirement for the warehouse. Thus, it can be understood that for achieving a successful result it is important to analyze the principles of warehousing utilization effectively. The warehousing process is closely involved with managing the flow of inventory for regulating the supply chain management for the organization. The process of warehousing is categorized in various aspects i.e. Raw Material Storage, finished goods storage, transit warehousing, break-bulk centers, cross-dock centers, and public sector warehousing (Richards, 2017). Hence, it can be understood that all categories are the demand for suitable storage utilization. Therefore, the core objective of this study is to evaluate the principles of unitization along with their method and future development for ensuring a positive outcome.
Discussion
Definition and principles of unitization
The term unitization is found to be a significant process for counting and understanding a large group of principles by counting in a smaller manner. Thus, it can be understood that the core concept of unitization is based on transforming a large number of elements in a smaller range for improving the outcome. Furthermore, the process of grouping the master carton from one unit to another process of handling is known as Unitization. Besides, the development of unitization is involved in reducing the cost of production by improving warehouse management. The use of unitization is significant for conducting the packaging process of the supply chain management appropriately. This is also found to be beneficial for ensuring the effectiveness of the process of production. It further consists of the analysis of product grouping to ensure the effectiveness of product handling appropriately (Bowersox, 2011).
Furthermore, the development of unitization is involved with the engagement of a hydrocarbon reservoir for expanding the license of the storage system. This concept was proposed in the 20th century in the US. This process is also required proper use of the license for conducting the storage system (Hunton Andrews Kurth LLP, 2014). The impact of unitization consists of various benefits for the storage and transportation system. This is included with the control of inventory by improving the storage system. In terms of transportation, the implementation of unitization will be helpful for minimizing the labor costs while handling the equipment in the loading system. This is also helpful for improving transportation saving. Besides, the implementation of unitization will be useful for improving protection and security for the transition of warehousing (Hughes Enterprises, 2020).
For instance, the Interstate Oil and Gas Compact Commission (IOGCC), is found to use the process of unitization for reducing their cost and enhancing the storage quality appropriately (Asmus, & Weaver, 2006). The core principles of unitization are involved with the process of reducing the operation cost of a large amount of production by reducing the cost of grouping by transform into a single one. Furthermore, the implementation of unitization principles is also involved with preventing wastage by ensuring the effective management of products. This is further helpful for improving the cost-effectiveness by improving provisions for economic wastage. This is further concerned about providing a protective environment for managing the shares by ensuring proper utilization. Thus, it can be understood that the process of utilization helps develop the protection of unfair practices by ensuring proper waste control management for the organization. In terms of the oil and gas unit proposal, the implementation of utilization has found to help reduce the wastage in their annual consumption. This has also found to be useful for developing a protective environment for the company by reducing the wastage appropriately. This process of unitization is also found to be beneficial for reducing the uncertainty in product management by managing a quality outcome. Thus, it can be demonstrated that the implementation of the principles of unitization helps provide a protective environment for the logistics department appropriately. Therefore, maintaining a systematic process of unitization management is needed to develop for developing an effective outcome in the future (Rogers, 2015).
Methods of unitization and the warehouse and transportation systems
The process of unitization for maintaining the transportation system for the warehouse can be categorized in different methods. However, the most significant method of unitization is known as load unitization. This process is closely related to the process of packaging, shipping, and arranging a system for product delivery by structuring a systematic transportation process. This process is further related to the material handling and development of storage for improving the warehousing system by minimizing the errors. Furthermore, this process is also associated with core three methods i.e., Stretch Wrapping, Shrink Wrapping and Strapping. The first method of unitization is involved with shrink wrapping. It is further involved with a simple and cost-effective process of packing for managing the flexibility of the process appropriately. This method is generally used for conducting an effective shipping process by maintaining the stretch wrapping appropriately. Furthermore, the implementation of this method is found to be useful for developing the quality of shipping on a large scale improving the packaging (Corp, 2016).
The next method of unitization consists of the stretch wrapping; this process is found to be a significant one for the logistics department. This is because of the involvement of various layers of packing for improving the shipment process in the logistics company. This is further helpful for reducing the quantity of product delivery by conducting this process in a group. Furthermore, this process is also involved with delivering damage –free product to the end-user effectively. The third method is concern about strapping. This is further involved in handling bulk product management. The common use of strapping is related to the coils, ingots, and lumber to ensure a successful outcome to the end-users. This method helps reduce the error in the shipping process by implementing the use of proper machinery. Furthermore, for structuring a systematic process of strapping the use of angle, edge protectors are required. These tools will help develop the unitization process appropriately by reducing the potential risk of protections and errors while conducting shipping in the logistics department (Corp, 2016). Thus, it can be understood that by implementing a systematic method of unitization the errors of the logistic department is possible to minimize. This is specifically involved with the delivery of products to the end-user to improve the process appropriately. These methods are also found to be useful for regulating the process of distribution for the logistics department.
Costs and benefits
The cost of logistics and its unitization depends on five major activities in supply chain management system i.e. ‘Storage or warehousing’, ‘packaging’, ‘inventory control and management’, transport and, ‘information and control’ (Coventry University, n.d.). In order to develop proper costing system a logistics management company must focus on mentioned factors. In relation with wider logistics, network fright rate of shipment and different currency rate in dissimilar countries affected the transpiration cost. However, cost of transport and unitization varies based on shipment distance and time. More distance takes more time, which generally increases cost of the logistics management. For instance, Nordic exports groups generally shipped goods in most of the European countries. Hence, cost of European countries’ shipment is lower when Nordic exports groups shipped goods in outside of Europe. In addition, the economic scale of a country also creates change in the cost of logistics as well as the unitization (Hämäläinen, 2017). Besides, the direct and indirect costs can increase the total cost of a shipment. Therefore, indirect cost of transportation can be varied in different location of goods shipment. For these reasons, the cost has to be properly optimized by using unitization, wherein an organization must focus on the process of shipment. For instance, an organization namely ‘Holger Clasen’ prefers air transport in alter of water transport due to cost and time efficiency of shipment. This can provide huge benefits to Holger Clasen to optimize cost of the shipment.
Cargo handling is one of the important aspects of logistics and supply chain management. Unitization assists to combine heavier and small units of goods in one package. It reduces the cost of different goods segregation and its management. In addition, the safety of cargo management increased through unitization. It also reduces the cargo damage darting the period of shipment. Moreover, the cost of damage cargo has been decreased through unitization. Previously, most of the cargos are operation manually using ropes and lifts, which increase the labor cost of an organization. The unitization, introduces automated technology such as large cranes, which reduces the labor cost within a logistics operating company. Most importantly, the time of cargo operation has been significantly reduced through unitization, wherein trucks, railway wagon and ships among others takes less time to release cargo in the port or any warehouses (Areca, 2020). Primarily, high time can increase the indirect cost of an organization during the period of logistics operation. Hence the unitization helps to control the cost which has been occur for poor time management. These are the major benefits of unitization in cost management in logistics operation.
Future Innovation and Current Technological Advancements
In relation with the future innovation in logistics technology plays a major role, wherein shipment time and freight charges can be reduced. In the initial stage, self driving software can take place to develop the unitization in future, wherein autonomous shuttles can ship goods in a low amount of time. Recently, two companies i.e. Transdev and Torc
Robotics tested mentioned technology in France (Schenker Americas, Inc, 2018). However, self flying technology and AI operated vehicles can reduce the risks of transportation system. Currently, PlusAI trucks have been tested in Las Vegas, wherein transportation trucks and find own destination using GPS and AI technology. Besides, world largest companies such as IBM launched Q technology in order optimize fleets. It is also efficient to operate large volume of logistics activity within an organization (Schenker Americas, Inc, 2018). Moreover, implementation of AI in any logistics vehicles can be considered is one of the effective innovations in transpiration. In addition, fault in the shipment can be reduced properly by using mentioned technologies.
On the other hand, data of the consumers plays a major role in transpiration. Proper data of the consumers can easily help an organization to understand product needs. It can be used properly to influence the market and consumer demand (Singh, 2016). Currently, Amazon Inc. uses mentioned innovation to fulfill the consumer needs and control transportation, wherein the company uses small drones to deliver a product instead of a human being. The accuracy of transportation can be increased through the mentioned innovation in logistics management. Besides, implementation of Block Chain can introduce a strong supply chain network, wherein the consumers and the seller can connect through singular software (Singh, 2016). Data can be transmitted fast, wherein any issues associated with the shipment can be resolved in a less amount of time. This type of innovation will help to reduce the size of the warehouse, which will decrease the cost of transpiration and logistics management. Miscommunication and damage of goods can be decrease in future through block chain, wherein cost of the logistics as well as the transportation will be possible to control in an effective manner.
Conclusion
Through the entire study it has been identified that the unitization and transportation play a major role in logistics management. Through the unitization an organization can easily reduce its labor costs. In addition, the damage associated with the cargos also can be controlled properly by the unitization. However, different types of goods loading and unloading ion a cargo are a difficult and cost consumable process. Unitization can resolve this issue in an effective manner, wherein an organization can load both small and large goods in a large container. Overall, unitization provides cost efficient module for an organization, wherein logistics activities have been conducted adequately.
In relation with the transportation, it increases the consumer satisfaction as well as business growth. However, the current transportation is effective enough to operate market demand but risk of goods damage is not resolve properly. Lack of communication gap and data transfer latency found as the major reasons behind the mentioned issue. Hence, various companies such as IBM, Amazon Inc. and Torc Robotics among others are introduced self drive vehicles to control the goods damage and communication issue. Block chain found as the most effective innovation in logistics management. Communication issue in the supply chain can be easily removed through the block chain technology. Overall the current transportation and unitization is efficient but it needs innovation in order to create risk free logistics operation within an organization.
References
Areca, (2020). Unitization and containerization. Retrieved From http://www.blue-whale.in/containers/unitization-and-containerization/
Asmus, D., & Weaver, J. L. (2006). Unitizing oil and gas fields around the world: a comparative analysis of national laws and private contracts. Houston Journal of International Law, 28(3), 1-195.
Bowersox. (2011). Supply chain logistics management. US:Tata McGraw-Hill Education.
Cilt International. (2017). Role of warehouse management. Retrieved from https://www.ciltinternational.org.in/single-post/2017/05/02/Role-of-Warehouse-Management
Corp, D. (2016). Exploring methods of unitizing your loads for shipment. Retrieved from https://www.dacocorpblog.com/exploring-methods-of-unitizing-your-loads-for-shipment/
Coventry University, (n.d.). The five elements of logistics. Retrieved From https://www.futurelearn.com/courses/principles-global-management-logistics-assets/0/steps/65243
Hämäläinen, E. (2017). Cost Aggregation in export logistics chain. Journal of open innovation: technology, market, and complexity, 3:26, pp- 1-14.
Hughes Enterprises. (2020). Reduce damage to products in transit: unitizing. Retrieved from https://www.hughesent.com/blog/reduce-damage-to-products-transit-unitizing/#:~:text=Unitizing%20has%20many%20significant%20advantages%20including%3A&text=Reduction%
20of%20labor%20costs%20from,used%20for%20larger%20unitized%20loads.&text=Inventory%20control.&text=
Decreased%20loading%20times%20resulting%20in%20transportation%20savings.&text=Security%20and%20protection
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Hunton Andrews Kurth LLP. (2014). Unitisation – the oil and gas industry’s solution to one of geology’s many conundrums. Retrieved from https://www.lexology.com/library/detail.aspx?g=69912ce0-127d-447e-8a47-50f5d235dcfa#:~:text=In%20essence%2C%20unitisation%20is%20the,economic%20recovery%20of%20petroleum%20from
Richards, G. (2017). Warehouse management: a complete guide to improving efficiency and minimizing costs in the modern warehouse. Logistics assignment UK: Kogan Page Publishers.
Rogers, S. M. (2015). Fieldwide Unitization. Ark. L. Rev., (68)425, 425-454.
Schenker Americas, Inc. (2018). 6 Transportation & logistics innovations unveiled at ces 2019. Retrieved from https://nowthatslogistics.com/6-transportation-logistics-innovations-unveiled-at-ces-2019/
Singh, S., (2016). Future of logistics: five technologies that will self-orchestrate the supply chain. Retrieved From https://www.forbes.com/sites/sarwantsingh/2016/09/22/future-of-logistics-5-technologies-that-will-self-orchestrate-the-supply-chain/#3d3b68895a63
