Definition – Transshipment logistics

Goods handling is a function of intralogistics and takes place between the external goods flow and the internal material flow. The cargo of a means of transport is loaded onto an internal means of transport or vice versa, i.e. from an internal means of transport to a means of transit. Accordingly, transshipment logistics operates between the interfaces to the procurement market and those to the sales market.

The relationship between the consumption of units per unit of time and the average inventory level is indicated by the inventory turnover rate. It is calculated by dividing the outgoing stock by the average stock. This shows how often a warehouse is filled or emptied in a given time. If the value is low, it indicates that the material is stored for a longer period of time or that high safety stocks exist. A low value has a negative effect on capital commitment.

Example for handling logistics

a) 50 stock issues with an average stock of 500? Inventory turnover rate = 0.1

b) 100 stock issues with an average stock of 500? Inventory turnover rate = 0.2

On the negative side, the handling of inventory may cause delays in the material flow chain. With good material flow planning, however, this disadvantage can be counteracted. Automated handling equipment also helps to increase handling speed.

Aim of the handling logistics

The goal of handling logistics is to plan, control, monitor and optimize the material flow with the associated information flow and the administrative and planning functions, such as increased handling performance. The service life of the means of transport is to be reduced, the costs minimized and thus the entire performance process increased.
Well planned loading and unloading strategies, shipping strategies or even buffer strategies can, among other things, help to achieve these goals.

More information can be found under Buffer Storage.

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