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RECAP OF LOGISTICS AND INSURANCE
Tipologia: Appunti
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Logistics is the process of planning, implementing and controlling the flow of goods and services from the point of origin to the point of use. It refers to the practical issues surrounding transportation, warehousing and stock management. Thanks to an efficient distribution industry, there is now less physical waste and less amount of capital tied up in stock. Also transport time and cost have been reduced. DHL provides express mail services and is a market leader in sea and air mail. It was founded in the 1960s by three friends, whose initial create the company’s name. their idea was to transport Bills of Lading from San Francisco to Hawaii via air. In this way, they arrived before the cargo ships. The company expanded their services to many other countries and became an important international delivery company. In 2002, DHL became part of the Express division of Deutsche Post.
Modern economic systems are dependent on the fast, safe and cost-efficient movement of goods, services and people. Large companies normally have their own distribution departments and transport. Medium-sized and smaller firms may use shipping or forwarding agents who take care of packing, insuring and importing/exporting the goods. Many factors need to be considered before choosing an appropriate mode of transport: The size, weight and quality of the goods; The urgency; The distance; The cost. Other important factors may be insurance costs and packaging. Goods packed in containers can be transferred easily from any mode of transport. This form of transport is known as intermodal carriage. Most transports within EU are by road; railway and inland waterways now account for much less than before. The growth of transport has led to increasing the level of pollution. The EU is now encouraging more people to travel by public transport and urging transport firms to move goods onto trains or ships. The most frequent form of land transport is transport by road. Its main advantage is flexibility because it doesn’t have a timetable and can offer a door-to-door service. It is usually cheaper and faster than other methods and can reach places that others can’t. A negative aspect is that roads are often very congested due to heavy traffic. Pipelines are used for the transport of oil, gas, petrochemicals and even some solids, but they are very expensive to build. Railways are still useful for moving bulk freight over long distances. They’re often used to transport urgently required or dangerous items. The main document used in transport by road or rail is the consignment note. It acts as a receipt for the goods and also as proof that there is a contract of carriage. There are two main types of transport by water: inland waterways and sea transport. The second one is the most important form of transport in international trade. It is a very effective method of moving large quantities of non-perishable goods.
Containerisation has revolutionised trade, offering a huge reduction in transport costs. There is less damage, less los and theft and cheaper handling due to easier loading/unloading. The Bill of Lading is the main document used in transport by sea. It is a receipt for the goods carried, it serves as a contract of carriage and it is a document of title. Transport by air can provide fast, reliable, door-to-door service. It is expensive but it can be quite competitive if you consider that there are fewer packing and insurance expenses and a lot of time saved. It is particularly important for urgently needed and non-durable goods and for transporting low-volume and high-value goods. The Air Waybill is the document representing the air transport contract. It serves as receipt for the goods, but it isn’t a document of title.
Businesses are subject to many risks. Companies can protect themselves by taking out insurance policies which entitle them to financial compensation, known as indemnity, in the case of accidents or loss. Insurance policies cover a company against risks, in return for a premium. This increases in relation to the amount of risk and value if the items. There are two kinds of insurance that businesses must have by law: motor vehicle insurance and employers’ liability insurance. Other common kinds of insurance are: fire and other risks insurance, theft insurance, public liability insurance (damage to third parties), product liability insurance, goods in transit insurance and bad debts insurance. In marine insurance there are various types of policy: valued policy (states the value of the shipment), unvalued policy (specifies the total sum insured, not the value of each item), time policy, voyage policy, open policy (states total sum insured). Special clauses may include: free of particular average (covers the total loss of the goods due to accident), with particular average (covers total or partial loss of the cargo) and all risks.