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Full name and IC No: KAARTHIYAINI A/P SUBRAMANIAM Date: 01/07/2023

Assignment (Asgmt) Declaration Form

Jan / May / Sept 202__ MAY 2023

Student’s Name KAARTHIYAINI A/P SUBMAMANIAM

Student’s ID No: 033220002

Course Code BLC305/03

Course Title FREIGHT TRANSPORT MANAGEMENT

Class Code FRE1-3C

Assignment No: ASSISGNMENT 1

No. of pages of this Assignment 17

(including this page)

Tutor’s Name THONG KAI CHOH

Course Lead’s Name

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QUESTION 1

Freight transport is the movement of goods from one place to another. Common
freight includes commercial goods, commodities, and merchandise in bulk. Freight
transport, also referred as freight forwarding, is the physical process of transporting
commodities and merchandise goods and cargo (McLeod,Sam;Curtis,Carey ,
2020). Transportation is a crucial service that connects a business to its suppliers
and customers by bringing things from their origins to where they are needed. It's
crucial to the logistics process, which supports the location and timing-based
economic utilities. There's some nature of freight transport to support the business
world.

First of all , the time plays important role in freight transport. Time is a crucial factor
in freight transport. Even if everything else in the process is done accurately the
entire process can fail if the timing is not right (Hosmer, D. W., & Lemeshow, S.
(2000). We must have the products on the shelves or in stock at the right time to
cater to the demand if the product demand is not met at the right time, it might be
lost to competition. Customer’s satisfaction and long-term relationship are only
possible if the products are delivered to the customers at the right time. It is the task
of managers to develop a tracking system and coordinate with the delivery team to
get the items delivered before the deadline.

In addition, having a product transported to the right place is essential. The product's
demand may vary depending on geography, population, and other factors. It is vital
to identify the location that must be targeted by significant market research, as
certain locations may have demand for the goods while others may not care at all. It
is critical that the correct product is delivered at the correct location. Supply chain
managers must guarantee that they have efficient and experienced delivery
personnel to ensure that the product is delivered to the correct location. Following
the selection of a location, it is critical to select a distribution plan that will meet
demand without over- or under-supplying the product at any given point.

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Services are all the elements of freight transport, from the factory to the end
customer. They include transportation from manufacturer to warehouse,
warehousing and order fulfilment, and delivery to the end customer. Regardless of
our industry, commodity, or key markets, Freight transport has solutions that offer
both small and large businesses the opportunity to grow (Hosmer, D. W., &
Lemeshow, S. (2000). We have to customers with frequent departures on all major
trade lanes and inland services for a true end-to-end experience. For example , Sea
transport , Rail Transport , Truck and Air transport.

Lastly , In the management of freight transportation, demand is a procedure for

analysing, assessing, and forecasting the demand for commodities. To provide items
to the consumer with reliability, this forecast is made. Businesses can accurately
forecast future sales and make long-term plans thanks to demand planning (Hesse,
M., & Rodrigue, J. (2004). For instance, a trucking business can plan its capacity
using demand forecasting to anticipate the volume of shipments it will receive from
shippers and freight forwarders in the upcoming months. If the prediction indicates a
rise in demand, this may include leasing extra trucks, modifying existing vehicles for
special cargo, or employing more drivers. This business would have to decline new
business possibilities without such planning.

In conclusion, location, timing, services, and demand all significantly contribute to a

successful management of freight transportation. We must comprehend the
conditions and make the necessary preparations.

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QUESTION 2 (A)

A process of analytical and management activities, risk management focuses on

detecting and responding to the inherent uncertainties that come with managing a
complex organisation and the assets it possesses. This is accomplished through the
process of risk management. The most important organisations in the world of
transportation have mature risk management practises. When conducting a risk
assessment, there are several factors that need to be considered.

First of all , weather conditions. The risk of transportation always includes the
possibility of adverse weather conditions, which can have an impact on both the
capability and the time frame for delivery (Batarliene, N. (2008) . Within just one
hundred miles, the temperature and meteorological conditions can fluctuate greatly,
going from sunny weather to circumstances resembling a blizzard, or from severe
rain to heavy snowfall. Conditions aboard a flight, railway, ship, or even on the road
can deteriorate and produce unanticipated delays or danger. Even though it is hard
to accurately predict the weather, preparing for different kinds of weather and leaving
yourself some wiggle room in your schedule during practise and training will help
decrease the risk that weather poses.

Additionally , poor level workforce also considered as factor in risk assessment

(Batarliene, N. (2008). According to land public transport agency, 2022 reported
shortage while 3PL is reporting 23% shortage of drivers. The chronic scarcity is
fuelled by the retirement of older workers, difficulty filing vacant positions with new
hires, and rising delivery demand created by the advent of e-commerce’s. Despite
increased earnings and signing bonuses for new drivers, trucking owners and
operators have struggled to sell the trucking lifestyle — long, lonely, sedentary hours
on the road — to younger people. And an older workforce usually comes with higher
prevalence of health conditions and higher consumption of employee benefits, which
drives up those expenses for businesses as well. The driver shortage also implies

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more pressure on seasoned drivers to put in extra trips and more hours on the road
per day to make deliveries on schedule, leading to weariness and an increased
probability of an accident.

In conclusion, in addition to weather conditions and a low level of personnel,

advancing technology, deteriorating infrastructure, cyber-attacks on physical assets,
and damage and loss are all variables in risk assessment. Before we face the risk of
conveying cargo to clients, we need plan our actions.

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QUESTION 2 (B)

Transportation risk comes from many areas, including natural disasters, acts of war
or terrorism, supplier bankruptcy, theft, damage, and data breaches((Batarliene, N.
(2008). Companies must develop plans to prepare for, and help reduce, the impact
disruptions can have on their bottom line.

Firstly , Purchase insurance. Cargo insurance safeguards shipments from loss,

damage, or theft while they’re in transit, so your goods are shipped off safe and
sound. Cargo insurance reduces financial loss regardless of whether your goods get
damaged or not. The insurance with all risk coverage can protect against the
significant loss or damage caused by external factors such as theft, vermin, or
damage by improper handling. While the general coverage is the standard
insurance policy for maritime shipments covering partial losses to the policyholder.

Moreover , Compensation for drivers / Hire new drivers for overcome poor level
workforce. From the market and possible policy remedies could help ease the
shortage of drivers. Like with current petrol prices, rising wages for drivers is a
natural market response to a shortage of a product or service. Wages for truck
drivers would be that cost in this case. Most transport companies have been
increasing wages and providing supplementary perks like 401(k) plans and tuition
reimbursement. In addition, the unemployment rate is highest among those aged 18
to 20. Having a commercial truck driver's minimum age set at 21 prevents a
substantial number of qualified people from applying for jobs.

Security and privacy one for the action plan reduce risk. Several things, including
hacking, data breaches, fraud, and espionage, can lead to this. Data and information
used in distribution logistics can be compromised if security precautions aren't taken.
The use of cryptography, authentication, and authorisation to safeguard
transportation-related data and systems can help reduce this risk. Staff and partners

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should be trained and educated on data security and privacy best practises and
rules.

Finally, have a wide range of suppliers. We must not place all of our trust in a
single provider. Although it is advantageous to get materials from low-cost locations
around the world, your supply chain could be jeopardised if the goods are not
delivered on time. Reliable secondary providers should be located in different areas
to spread out the risk.

In the end, there are numerous potential sources of transportation risk, and we must
be prepared to address each one using established protocols.

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 QUESTION 3 (A)

Reverse logistics encompasses all operations related to the upstream movement of

products and materials (Net Suite 2022) . It is "the process of moving goods from
their typical final destination for the purpose of capturing value, or proper disposal.
Remanufacturing and refurbishing activities also may be included in the definition of
reverse logistics (Hawks, Karen 2006). Once a customer receives a product,
processes such as returns, or recycling require reverse logistics. Here’s the flow of
reverse logistics.

STEP 1 : COLLECTION

This phase entails gathering the customer's rejected or returned

items. This can be accomplished in a number of ways, such as
through in-store collection bins, mail-back schemes, or
independent collection services. For instance, after receiving a
customer complaint about damaged cargo, the RDC warehouse
at Robert Bosch arranged for a transporter to pick up the goods.

STEP 2 : INSPECTION

Once the goods have been collected, an inspection

assessment is necessary. This information will be useful in
deciding whether the commodities should be reconditioned,
recycled, or discarded. For instance, once we get back, the
courier service will deliver the shipment to the vendor, who
will then do any necessary inspections. For example After
Robert Bosch RDC has received damaged goods, the Quality
Management team will assess them to see if they may be
reused, repurposed, or discarded.

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 STEP 3 : REPROCESSING

If the goods are in good condition, they may be reprocessed

for resale. This may involve refurbishing, repairing, or cleaning
the goods. If the returned goods were in good condition, they
would resale. If the Robert Bosch damaged cargo in good
condition, they operation team will reprocess and if its incurred
small damages the damaged cargo will be send to reworking
process.

STEP 4 : RECYCLING

If the goods cannot be reprocessed, they may be

recycled. This involves breaking down the goods into their
constituent materials, which can then be used to create
new products. For example if the Robert Bosch damaged
cargo parts can be involves breaking down the goods into
their constituent materials, it will be segregation to create
new product.

STEP 4 : DISPOSAL

If the goods cannot be reprocessed or recycled, they

may need to be disposed of. This may involve
incineration, landfilling, or other methods. For instance
the Robert Bosch damage cargo fully 100% damage ,
the cargo will be moved to scrap which is disposal.

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QUESTION 3 (B)

Optimised reverse logistics help the environment, business culture, and finances.
Refining post-delivery processes keeps customers and saves money. Optimised
reverse logistics improves supply chain visibility, enabling contributions such as :

First of all , its enhancing customer satisfaction. Customer satisfaction is of

paramount importance to the profitability of e-commerce. Exchange and return
policies have a positive and significant impact on consumer repurchase satisfaction
(Clover Lee, PDLM., 2019). Due to defective units or consumer dissatisfaction,
reverse logistics handles the return of products to sellers or manufacturers. Long-
term consumer satisfaction is improved, and the company's bottom line is sustained
by a process that requires little effort. Both e-commerce and brick-and-mortar
retailers can increase consumer satisfaction by offering a full refund without requiring
receipts or original packaging. Simultaneously, manufacturers will organise, retrieve,
and evaluate the returned product, as well as dispatch new products to customers.
Reverse logistics can also be a source of valuable information that assists a
company in identifying problems and analysing the data of returned products in order
to increase customer satisfaction by enhancing product quality during the design
phase.

Additionally , reverse logistics contributes to increase asset utilization. Reverse

logistics plays a crucial role in an organisation because it helps maximise asset
utilisation and minimise costs or liabilities by classifying and distributing efficiently
and accurately products or assets that fall under the statuses of surplus, refuse,
excess, obsolete, and waste. It is a common misconception that products returned to
the manufacturer are useless and ready to be discarded. However, manufacturers

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will identify the cause of failure and forward returned products to be repaired,
refurbished, or remanufactured to like-new condition and recovered as a company
asset. The manufacturer will collect various functional components from end-of-life
products for re-use in new products. An effective reverse logistics programme can
transform undesirable items into unanticipated assets. This can be accomplished by
restoring the loss of investment in the failing products by repairing the units or
reselling them on a secondary market. There is a possibility that the value of
returned products can create a new business opportunity.

Moreover , its reducing losses and unplanned revenue. Losses in transit cost,
storage cost, returns labour, and costs connected with fraudulent returns can all be
mitigated with well-oiled reverse logistics operations. From the first collection of
items to their return to the manufacturer, streamlined return management contributes
to company productivity via careful planning and the implementation of the most
efficient and cost-saving process flows. Many sectors place a premium on reverse
logistics, but the manufacturing sector has a lot of components and parts that may
be reused or recycled. The manufacturer can increase traceability using automated
process management by identifying the causes and working to mitigate them. This
may need the development of programmes aimed at enhancing the supply chain
from factory to warehouse to truck to store to customer service.

Lastly , reverse logistics benefits by improving the environmental sustainability

(Lai Wan Voon, ADPSM. (2020). Electrical waste and other hazardous elements have
a negative impact on the natural world. One of the crucial factors is environmental
considerations. By addressing logistics-related areas like transportation,
warehousing, and inventories to cut down on environmental difficulties like
greenhouse gas emissions in logistics operations, noise, and accidents, green
reverse logistics intended to reduce environmental externalities. Products with a
"green design" take into account environmental factors including the type of
materials used and whether or not they may be recycled at the end of their useful
lives. Reverse logistics that is kind to the environment deals with the after-use care
of items, parts, and materials. When used on recycled materials, the total amount of

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trash produced will go down. There will also be a decline in the use of primary
resources in recently manufactured goods. When raw materials are reused in the
production process, less energy is consumed, and fewer pollutants are released into
the air and water. The whole community will also reap indirect benefits from this
method.

Reverse logistics will decrease costs, enhance profitability and customer satisfaction,
and provide the organisation a competitive edge. To do this, we must build and
implement metrics for measuring various reverse logistics steps. Due to busy
lifestyles, customers' reverse logistics expectations have increased. Effective reverse
supply chains collaborate with forward supply chains to build a closed-loop system.
Companies that focus on the reverse supply chain in a circular economy gain
efficiency and a competitive edge.

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QUESTION 4

The nature of the items being transported, the urgency of the cargo, access to
transport infrastructure, transportation prices, and so on all play significant roles in
determining which mode of transport will be used. There are three different forms of
matter: gases, liquids, and solids. Every material phase has its own qualities that set
one apart from another. In addition to these generic features, items also have unique
qualities that we shall go through below (Chao, C., & Li, R. (2017).

Consumer and commercially packaged items are the most common types of
standard packaged products . For ease of handling, storage, and distribution,
these are typically put in cartons and boxes, which are then placed into bigger crates
or boxes. Other than the customary precautions of avoiding harsh handling,
vibration, exposure to water, and extreme temperatures (heat and cold), these
conventional packaged products normally do not place any special demands on
freight transit. Standard package items are either man-portable or machine-portable
(forklift and pallet truck). Unless they contain harmful cargo, typical packaged
products are adaptable and transportable.

Furthermore , Dangerous goods can be defined to include those goods whose

properties may cause danger to life and property. It is sometimes referred to as
“hazardous goods”, because of the inherent risks attached to the goods. The
International Maritime Organization(IMO) defines “dangerous substances” as those
having properties classified by the International Maritime Dangerous Goods (IMDG)
Code. The properties are Flammability , Toxicity , Corrosivity & reactivity. There are

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nine (9) classes of Dangerous Goods under the IMDG code. This classification is
done according to the characteristics of the goods and the types of risk involved.

FIGURE 1.0 : NINE CLASSES OF DANGEROUS CARGO

Additionally , out-of-gauge goods also known as unique product characteristics that

effect freight transport. These are goods that are too big to be transported using a
regular shipping container or vehicle. In addition to the weight issue, transporting
very huge cargoes sometimes presents dimensional problems of length, beam, or
height, any of which can cause difficulty, especially in overland movements. Roll/on
roll/off technologies are also used for heavy lifts and big loads, and modern ships
have stern ramps that can support up to 200 tonnes. If they don't exceed the gantry
crane's lifting capabilities, heavy lifts and huge cargoes can be transported aboard
multipurpose container vessels. All big lifts must be pre-booked at their actual weight
to ensure adequate resources are allocated. Knowing that the SWL (safe working
load) of most cranes and derricks is only approximately half their breaking strain,
shippers have been known to under-declare the weight.

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 FIGURE 1.1 : OUT-OF- GAUGE CARGO

Finally , High value and risk cargo includes microchips, gem stones, gold, valuable
painting andantiques. The potential to pass on higher freight costs to the end
consumer increases as cargo value rises. The higher freight charges for Ad Valorem
cargoes are a reflection of this fact in the context of freight transport taxes. It's
important to keep in mind that the cheaper the insurance premium and the less
interest on capital tied up in transit, the more money you'll save with this kind of
cargo. The latter is a direct reflection of the value and duration of the products'
exposure to danger.The exporter of high-value products must prioritise security by
choosing a transport mode that involves as few intermediate handlings as possible,
preferably including some kind of strong room stowage. High-value goods often

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require additional security precautions, and the cost of these measures is always
factored into the freight bill. Shipping containers do hide the contents inside from
prying eyes

In conclusion , the characteristics of the products itself have a big impact on how
goods are transported. The nature of the commodities themselves has an impact on
the choice of transport method in addition to commercial considerations. Due to the
potential repercussions of accidents, dangerous products place by far the highest
strain on goods transit requirements.

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REFERENCE

1) McLeod, Sam; Curtis, Carey (2020-03-14). "Understanding and Planning for

Freight Movement in Cities: Practices and Challenges". Planning Practice &
Research. 35 (2): 201–219

2) NetSuite.com. "A Guide to Reverse Logistics". Oracle NetSuite. Retrieved 2022-

07-05.

3) Hawks, Karen. "What is Reverse Logistics?", Reverse Logistics Magazine,

Winter/Spring 2006.

4)Hosmer, D. W., & Lemeshow, S. (2000). Applied Logistic Regression. In John

Wiley & Sons, Inc. eBooks.

5)Batarliene, N. (2008). RISK ANALYSIS AND ASSESSMENT FOR

TRANSPORTATION OF DANGEROUS FREIGHT. Transport, 23(2), 98–103.

6)Clover Lee, PDLM. (2019). “The Reverse Logistics for Plastic Materials

7)*Lai Wan Voon, ADPSM. (2020). “Three Critical Enablers for Circular Supply
Chain”

8) Chao, C., & Li, R. (2017). Effects of cargo types and load efficiency on airline
cargo revenues. Journal of Air Transport Management, 61, 26–33

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