TRANSPORTATION PLANNING

Jagbeer Singh - 691906Sarabjeet Kaur- 692221

Gursewak cheema -692683Gangaputra - 685095

Introduction• Transportation planning is a preparation planning to

move/transfer human, animal or other item to some place to another place. This planning will related to the operation of the road transport and Air way connectivity between two countries that is how a movement of champagne bottle takes place from one country to another.

We are going to design a best possible transportation plan from France to Canada for champagne bottles from a logistic company point of view on how the movement will take place from origin to destination…

Customer Information

We are a transportation company named Prime Time Logistics providing logistic solutions across the globe. We are approached by a champagne manufacturing company named Brut Champagnes who are based out in Reims France who wants to ship their products of champagne bottles in facility of LCBO Regina, Saskatchewan, Canada we have got an order of delivering 1000 bottles in one time in fast and best possible manner.

Lets discuss how it goes …

Initial Questions to be asked to Client

• In Regards to query following questions are to be asked to Customer:• Name and category of product, Avg Size or weight of per parcel to know the

volumetric weight of shipments, Pick up and drop address and declared value of per shipment or Price of per shipment.

• After assessing such basic information query were asked about how champagne bottles which are the products of this customer to be carried in what way, about what packaging and with in what dimensions are to be carried?

• After taking an idea of products it was asked whether first mile pick up to be done by Prime Time logistics or customer will drop at our facility and whether Last mile delivery to be done by us or end customer will collect from our facility ?

• Consignor n Consignee Name, Documents related to import& export liquors, Commercial invoice for every shipment.

• After knowing such parameters an quotation will be shared accordingly for whole logistic plan for water ways (Ships) and Air ways (Air Cargo) and Surface transport (Trucks) wherever applicable.

Service offerings by us :

• High quality and Transit worthy packaging of polystyrene box which can preserve the champagne bottles from damage in entire supply chain process.

• First Mile Pick up• Last mile delivery • Real time tracking option• Intermodal capability design.

As per customer Right conditioned product to be reach at Right Place at reasonable Right Time were considered more by customer therefore they want have a fast and reliable transportation plan which caters their need to transporting goods from France to Canada in fast as possible way in minimum time framework.

7R’s of logistics consideration

Origin and Destination

Transportation planning from Origin to Destination

Pick up from Riems France at client’s facility

Reaches Final destination LCBO facility Regina By Truck

Regina SK Airport through Air cargo

Droping at Riems Champagne Airport

via Truck

Champagne bottles are fragile items which are suppose to be transported in special boxes so that breakage and damage can be prevented in both Air and Road transportation.

Product characteristics

Internal :• There are many Internal issues like shortage of

man power. Delay in Air carog or trucks due to some technical faults can prove delay in delivery hence affects the service levels and entire productivity.

Internal or External Influences

External :• There are many external influences for us such as

competitor rates , whether conditions, Changing government policies on taxes which can prove to externally affecting our business.

• The major influence is taxes laid by the government on cross border import from France to Canada on liquor products as there are some taxes which has to paid so it cuts the profit margin in whole process.

Internal or External Influences

Intermodal : Going with a combination of Air and Road makes

it intermodal transportation as flights or ships deliver the goods till ports. Further there is a need for connectivity of

Road so that goods can reachTo right facility in quick time.

Mode Selection

Equipments used during Transportation

PalletsPolystyrene packaging

Regulations

-Imports of liquor, wine and beer require prior authorization from the appropriate liquor commission before Customs will clear them. Also import of champagne is subjected to customs duties (imposed under the Customs Tariff) and the GST; both these are collected by Customs at the time of importation, and levied on the landed value of the goods.

-Government taxes and duties in import makes the costing part very high that is importing from a different country because money consuming task as government tariffs are top up of on freight cost.

Costing • About costing : Certainly rates were to be designed by

keeping in mind the rates of close competitors and by keeping in mind the ceratin profit margin.

• Here are designed rates for Air mode : when dimensions are fixed we need not to calculate volumetric weight of parcels. We can assume a fix weight dimension.

• 750 ml * 6 bottles = 4.5 litres for one box of polystyrene pack

• 1000 bottles * 750 ml = 750 liter • Pallet size of 100*60*16.5 will hold 24 boxes of 108 litres • Hence 24*6.7 boxes will make 166 boxes for 1000 litres of

champagne.

Costing • Rates are 50 flat rate (includes freight) on one box of 4.5 litres • + fuel surcharge of 25%• +20% handling charges• +PST of 10%• = 50 +12.5+10+5 = 77.5$ for one box• 77.5 * 166 boxes =$12,865 for total Air rates. • For Truck rates: • Depreciation + Labour ( 2+40) = 42• 2 hours time (both side) 2* 42 =84• Both side Kilometers * fuel (0.50/l)+ Maintenance(0.25/KM) + Insurance(0.05/KM)• 66*0.80 = 53• Add flat charges of $25• Final cost = hourly rate +km rate + flat charges• 84+53+25= 161.5.• *From Regina airport to facility its 33 km

Risk

• To maintain temperature control of vessels in Air cargo because the idle temperature for storing champagne is 13* to 15* Celsius

• To avoid Breakage is the most import risk that we might have to bear.

• To timely deliver and manage the whole transportation plan.

• To cope up with factors beyond reasonable controls like natural calamities, airplane crashes, road accidents of trucks etc.

Summary

All in all I believe picking up from Brut Champagne Reims France via LTL truck , then transporting through air and then taking the load from Regina’s airport to end destination via trucks proves to be fast and reliable mode as compared to any other mode. Here challenge was get the fragile product in safest way with certain packaging as client decided to send the shipment of champagne In bottles rather than going in containers that’s why it was an added responsibility for us to deliver in such a way that it remains a profitable for both parties as competitor rates were also to be consider.

A good wine

A good Wine is precious. As it takes a lot of efforts, time and skills to make a good wine. Its true that most of the wines deteriorate during its transportation hence transportation becomes an extremely critical part of a good wine.

THE END