Logistics, transport, insurance

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LogisticsIt is the process of

managing the movement and storage of raw

materials, parts and finished products from

the suppliers through the firm andon to the the

customers

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Activities involved in Logistics

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Relating marketing channels, logistics management, Relating marketing channels, logistics management, and supply chain managementand supply chain management

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Logistics objectives

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transportation

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Transportation Functionality

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Importance of Transportatio

n:

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Better utilization of the backward areas linking with the advanced areas

For rapid industrialization & urbanization

For removing the scarcity of goods

Easy movement people and bringing them in contact with each other

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Transportation…These are the major means of transportation n

Railways

Road ways

Air ways

Water ways

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Rail Transport:

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Rail Transport:

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CAN BE CONSTRUCTED EVEN IN AREAS OF DIFFICULT TERRAIN

OFFER DOOR TO DOOR SERVICES

HELP FARMERS TO MOVE THEIR PERISHABLE GOODS

Small investment in construction and maintenance

flexibility

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Mumbai Pune Expressway

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AHMEDABAD-VADODARA EXPRESSWAY

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A view of Delhi- Gurgaon stretch of National Highway - 8 (NH-8). The 8-lane expressway connects Delhi to Gurgaon and IGIA

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A section of the Golden Quadrilateral between

Bengaluru and Chennai

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The Delhi-Noida section of the Delhi-Noida -Greater Noida expressway

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AGRA -MATHURA

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DELHI.PANIPAT

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BANGALORE-MYSORE

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Water Transport

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Water Transport

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Air Transport:

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Air Transport:

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Advantages and disadvantages of five modes of Advantages and disadvantages of five modes of transportationtransportation

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WAREHOUSING

by richard’s (amu)

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CONCEPT

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Consolidation and break-bulk reduce transportation cost

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Consolidation and break-bulk arrangements

Figure 10.1 Consolidation and Break-Bulk Arrangements

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MEANING AND DEFINITION

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definition

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NEED AND IMPORTANCE

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BASIC FUNCTIONS PERFORMED

Price stabilizationTransfer of riskFinancingRegular supply of goods

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FUNCTIONS

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BASIC REASONS FOR NEED OF WAREHOUSE

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TYPES OF WAREHOUSES

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PRIVATE WAREHOUSES

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Advantages of private warehouses

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2. PUBLIC WAREHOUSES

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ADVANTAGES OF PUBLIC WAREHOUSING

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3. BONDED WAREHOUSES

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•

•••

Preserve perishability of goods against payment of a storage charge

Enables farmer to obtain remunerative prices for agricultural produce.

It facilitates export of perishable goods thereby earn foreign exchange

Generates employment in rural and semi-urban areas

Employmentexport

Help farmers

Preserve

•

Makes seasonal products available to consumers

Controls fluctuation

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DOCUMENTS USED IN A WAREHOUSING

Warehouse warrant

• A warehouse warrant is a document that provides proof of ownership of commodities that

are stored in a warehouse• ISSUED FOR PUBLIC/BONDED

• It is a document certifying that the specified goods have

been deposited in the warehouse for safe-keeping

Warehouse receipt

This is a receipt of acknowledgement of the goods

kept in the warehouse by the warehouse keeper

Delivery order

• It is the order issued by the owner of the goods to deliver

the specified goods to the person named in the order

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CHARACTERISTICS OF IDEAL WAREHOUSES

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WAREHOUSE OPERATIONS

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DEFINITION “Insurance is a device for the transfer of risks of individual entities to an insurer, who agrees for a consideration(called premium) to assume to a specified extent of losses suffered by the insured”.

BY; W.A. Dinsdale

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FACTS

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BENEFIT TO BUSINESSMEN

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BENEFIT TO PUBLIC

PROTECTION

SAVINGS FINANCIAL AID

TAX RELIEF

PROVISION FOR OLD

AGE

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BENEFIT TO COUNTRY

MOBILIZATION OF SAVINGS

ECONOMIC GROWTH

EMPLOYMENT

RURAL DEVELOPMENT

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BENEFIT TO GOVERNMENT

INVESTMENT IN PRIORITY SECTOR

(Transport, mining)

EARN FOREIGN EXCHANGE BY SETTIN

GBRANCHES IN FOREIGN COUNTRIES

PY TAX TO GOVERNMENT ON

THEIR INCOME

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IMPORTANT WORDS USED IN INSURANCE

INSURER

A person or company that underwrites an

insurance risk; the party in an insurance contract

undertaking to pay compensation.

INSURED

A person or organization covered by insurance

INSURABLE INTEREST

Financial interest of the insured in the subject matter of insurance.

A person must be in such a position that he will suffer a primary loss by the happening of the event insured

against.

INDEMNITY

Promise to compensate in case of loss

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Principles of Insurance: Utmost food faith

It is the legal duty of the proposer(one who wants the

insurance policy) to disclose all the material facts about the

subject to be insured.The premiums is fixed on the

basis of the information supplied by the proposer

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EXAMPLEUtmost food faith

For example - John took a health insurance policy. At the time of taking policy, he was a smoker and he

didn't disclose this fact. He got cancer. Insurance company won't pay anything as John didn't reveal

the important facts.

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Principles of Insurance: Insurable interest

Insurable interest exists when an insured person derives a financial or other kind of benefit from the continuous existence, without impairment or damage, of the insured object (or in the case of a person, their continued survival). A person has an insurable interest in something when loss of or damage to that thing would cause the person to suffer a financial or other kind of loss.

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Principles of Insurance: Insurable interest

In case of life insurance spouse and dependents have insurable interest in the life of a person. Corporations also have insurable interests in the life of it's employees.

In case of life or marine insurance, insured must be the owner both at the time of entering of entering into the insurance contract and at the time of accident.

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Principles of Insurance: Indemnity

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EXAMPLE

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Principles of Insurance: Doctrine of Subrogation

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EXAMPLEDoctrine of Subrogation

When an insured driver's car is totaled through the fault of another

driver. The insurance carrier reimburses the covered driver under

the terms of the policy, and then pursues legal action against the

driver at fault.

Suppose a house is insured for 2 lakh against fire. The house got damaged by fire and the

insurer pays the full value of 2 lakh to the insured. Later, the

damaged house is sold for Rs20,000. the insurer is entitled

to receive the sum of

subrogation.

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EXAMPLEDoctrine of Subrogation

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Principles of Insurance: Contribution

Right of an insurer who had paid claim under an insurance policy to call upon other insurers to

contribute to the payment.It is applied when an

insured has taken more than one policy on the

same property.

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Principles of Insurance: Contribution

CALCULATION OF CONTRIBUTION

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CAUSA PROXIMA (PROXIMATE CAUSE)

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EXAMPLECausa proxima

For example all the passengers in an air flight are insured against death in the event of the air crash.One passenger dies of the heart attack. In this case Insurance company is not liable to pay as plane crash is not approximate cause of the death

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Principles of Insurance: Mitigation of Loss