Knowledge Module 1 Learner Guide

SAQA 96368 Knowledge Module 1

Chapter 9 | Information and Communication Technologies [KM-

01-KT09]
The Topic Elements to be covered in the chapter referenced above include:

Topic Topic Element/Heading Knowledge Theory
9.1 Introduction to use of Personal Computer KT0901
9.2 Programmes used in the international freight KT0902

9.3 forwarding world or environment KT0903
Storage, management, and database of different
9.4 KT0904
9.5 forwarding environment KT0905
E-Commerce

Role of information technology in the freight
forwarding including the modern-day technology

By the end of this chapter, you should be able to demonstrate an understanding of the
following Internal Assessment Criteria or Learning Outcomes relevant to this topic:

No. Learning Outcome IAC
1 Select data storage, management, and database IAC0901
relative to different forwarding environment IAC0902
2 Discuss the use and importance of the programs
frequently used in the international freight forwarding IAC0903
world or environment
3 Explain the role of modern-day information technology
in freight forwarding

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Topic 9.1: Introduction to use of Personal Computer [KT0901]

Due to the ever rapidly evolving technological environment, which means that content
included in this learner guide will soon be outdated, we would rather refer you to a free online
resource that covers computer basics.
Please follow the links below and enrol for the free courses on Computer Basics:

https://www.microsoft.com/en-us/digitalliteracy/home
+
https://edu.gcfglobal.org/en/computerbasics/about-this-tutorial/1/
Overview
Hardware Aspects

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Hardware is a generic term for any part of the computer that you can physically touch, pick
up, hold, move around the room etc. In other words, hardware are the physical parts that
make up the computer. Examples of external hardware (not inside the computer)

Computer hardware describes the physical components of a computer system. The hardware
of a computer is infrequently changed, in comparison with software and data, which are
“soft” in the sense that they are readily created, modified, or erased on the computer.

Most computer hardware is not seen by normal users. It is in embedded systems in
automobiles, microwave ovens, electrocardiograph machines, compact disc players, and
other devices. Personal computers, the computer hardware familiar to most people, form
only a small minority of computers.

A typical personal computer consists of the following main components:

• A case or chassis in desktop or tower shape, flat screen monitor.
• Motherboard or system board, including Central processing unit (CPU), Random

Access Memory (RAM), Basic Input-Output System (BIOS), and Buses;
• Power supply.
• Storage controllers that control hard disk, floppy disk, Flash Drives, External Drives,

Could Drives, CD-ROM and other such devices.
• Ancillary components - video display controllers, removable media writers.

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In addition, hardware can also include external components of a computer system. External
components often seen are input devices and output devices. Speakers, Cameras, Retina Eye
Recognition, and many more.

Central Processing Unit (CPU)

A central processing unit (CPU) is the component in a digital computer that interprets
instructions given in the form of computer programmes and processes data contained in
computer programmes.

The form, design and implementation of CPUs have changed dramatically since the earliest
examples, but their fundamental operation has remained much the same.

CPU controls all of the computer’s main functions and enables users to execute programmes
or process data. The CPU is one of the essential and necessary components found in
computers of any era, along with primary storage and input/output facilities.

Since the mid-1970s, single-chip microprocessors have almost completely replaced all other
types of CPUs. Today the term “CPU” usually applies to some type of microprocessor. Modern
microprocessors are found in everything from automobiles to cell phones to children's toys.
It stands to reason that most organisations will need to invest in Hardware and Software and
knowledge in this area is essential for sound business practice.

Early CPUs were custom designed as a part of a larger. Later this costly method of designing
custom CPUs for a particular application has largely given way to the development of
inexpensive and standardised classes of processors that are suited for one or many purposes.
This standardisation trend generally began in the era of discrete transistor mainframes and
minicomputers and has rapidly accelerated with the popularisation of the integrated circuit
(IC). The IC has allowed increasingly complex CPUs to be designed and manufactured in very
small spaces (on the order of millimetres).

Both the miniaturisation and standardisation of CPUs have increased the presence of these
digital devices in modern life far beyond the limited application of dedicated computing
machines.

Random-Access Memory (RAM)

Random-access memory (RAM) refers to data storage formats and equipment that allow the
stored data to be accessed in any order — that is, at random. In contrast, other types of
storage devices (such as magnetic tapes, disks, and drums) can access data on the storage
medium only in a predetermined order due to constraints in their mechanical design.

RAM is considered main memory or primary storage in a computer: the working area used
for displaying and manipulating data.

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Memory is therefore used as a temporary means of storing data and instructions, which
includes:

● Data awaiting processing

● Instructions used to process data or control the computer system

● Data or information that has been processed

While RAM, as the primary storage in a computer, can run very fast, and that all memory
locations can be accessed at almost the same speed, it is in a sense also quite volatile. Most
data stored in the RAM is in active use, and in an event of power loss, this data will be lost.
RAM in a computer is usually in the form of integrated circuits (IC). These are commonly called
memory sticks or RAM sticks. Most personal computers have slots for adding and replacing
memory chips. Adding more RAM is an easy way to increase system performance.

Topic 9.2: Programmes used in the international freight forwarding world or
environment [KT0902]

Software Aspects

In comparison to hardware, software is less tangible. Software can be defined as a series of
detailed instructions that control the operation of a computer system. Software exists as
programmes, which are developed by computer programmers.

There are two major categories of software: systems software and applications software.

Systems Software

Systems software manages and controls the operation of the computer system as it performs
tasks on behalf of the user. Systems software consists of three basic categories:

• Operating systems

• Development programmes

• Utility programmes.

The operating system is the software that interacts with the hardware of the computer in
order to manage and direct the computer’s resources.

Development programmes allow users to develop their own software in order to execute
processing tasks.

Utility programmes provide a range of tools that support the operation and management of
a computer system.

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Applications Software

Applications software is a set of the programmes that enable users to perform specific
information processing activities. It can be further divided into two categories: general-
purpose and application specific.

General-purpose applications are programmes that can be used to carry out a wide range of
common tasks.

Examples of general-purpose applications are word processors, text editors, spreadsheets,
databases, e-mails, web browsers. Such programmes help improve the efficiency of an
individual.

Application specific software comprises programmes intended to serve a specific purpose or
carry out a clearly defined task. An example of an application specific programme is software
designed to carry out payroll processing or account management.

Applications Software: Off-the-shelf versus Custom-made

Some application programmes are custom designed, but many are packaged. The majority of
packaged applications are purchased off the shelf, and that is why it is called and known as
“off-the-shelf” software.

While custom-designed programmes are expensive to develop, they are often the only way a
business can obtain a system that caters to its special needs. When an application is
developed specifically for an organisation either in-house or by hiring a programming
consulting firm, the specific programme goals and custom requirements are considered
during the development process. The advantages of custom-made applications are:

• Good fit to business needs,

• Good fit to organisational culture,

• Availability of special security measures, and smooth interfaces with other
information systems,

• Availability of dedicated maintenance,

• Allows strategic services and development.

The greatest disadvantage of tailored applications is the high cost. It also has a long lead time
to develop. The custom-made software is also less likely to be compatible with other
organisation’s systems.

Costs of developing off-the-shelf applications are distributed over a large number of users.
Numerous off-the-shelf business software is available these days, ready-to-use.

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Many medium and small companies can use off-the-shelf software for functions that are
somewhat standardised across industries.

The most common off-the-shelf software is general-use office software, such as word
processors, electronic spreadsheets, and database programmes.

Advantages of off-the-shelf applications are high quality and low cost. Many vendors offer
various support programmes for registered users, and upgrades for the software are only
charged at a low cost. Off-the-shelf products are also available immediately. The
disadvantages of off-the-shelf products are that only narrow spectrums of the specific
organisation’s business needs are addressed in the programme, and often, purchasers are
paying for features they may not use at all.

Limitation of Software

Because the target group is the mass market, off-the-shelf programmes cater to the lowest
common denominator of the users’ needs. For this reason, companies may often find, that
ready-to-use software available from the market is not addressed to the company’s specific
needs.

Meanwhile the cost to develop custom-made software in house, or via a third party, is
sometimes daunting to small companies. Software development often takes a long time. For
the abovementioned reasons, it may be concluded that the software available from the
market to a certain company is limited, and its specific business needs may not be integrated
into the software running in the company.

Logistics Management Software 145

145 https://www.fingent.com/blog/software-for-logistics-management-why-businesses-need-them/

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Technology continues to disrupt logistics and supply chain processes by changing it altogether
from its core. Consequently, logistics became more refined and faster, which changed the
way how materials, goods, freight, sales orders, inventory, and production are managed.

As efficiency and speed became the determining factors, logistics adopted a new approach to
deal with the rising demand and complexity of processes. A viable solution that manages the
flow of things so that the right product reaches the customer within the specified time.

With the use of logistics software, the entire base of logistical operations was streamlined
that took away the hassles involved in the process. Organisations that invested in logistics
management software have produced good end results with noticeable improvements in
process, operations, and delivery.

Below, we take a look at logistics management software in the following aspects:

• What is Logistics Management Software?

• Challenges in Logistics Management

• Pros of a Having a Logistics Software

• Trends that reshaped Logistics Management

• Choosing the Right Logistics Management Software

• Checklist of Essentials in an LMS

• How Logistics Software Improves Efficiency

• The Future of Supply Chain

An Overview of Logistics Software

In order to understand how the software works for logistics, it is important to know about
logistics management. Logistics involve the flow of things from its point of origin to the point
of consumption usually general customers or businesses. The selection of vendors,
transportation means, routes and delivery methods constitute an important part of logistical
operations.

Logistics management is a part of the supply chain that uses planning and implementation to
store and deliver goods and services to the customer. It coordinates several key activities of
the supply chain that ranges from the development of the product to its commercialisation.

Typically, a logistics management system includes the following:

• Inbound and outbound transportation management
• Warehouse management

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• Fleet management
• Processing orders
• Inventory control
• Managing third-party logistics service providers
• Planning supply and demand

Logistics management constitutes several functions such as production planning, sourcing,
procurement, packaging, and dispatching. It also involves finding the right means to deliver
goods and services to the end-user. Inbound and outbound traffic is vital in logistics
management. Inbound logistics is a linear flow of raw materials from suppliers into a
warehouse and then a production unit.

Shifting the products from the warehouse inventory into the hands of the customers falls
under outbound logistics. An example of inbound and outbound logistics at play is that of a
manufacturer of electronic goods, which requires several raw materials in the form of
components, nuts and bolts, cables, casting, packaging cartons etc. to build products.

Challenges in Logistics Management

Logistics is prone to several issues that occur mostly due to simple human errors or other
factors. Weak decisions usually result in delays in the transport or delivery of goods leading
to dissatisfaction among the customers. Besides, another challenge that logistics usually
face is in the safe transport of goods. The goods can become damaged or faulty if not handled
accordingly while in transit.

Customer demand has also become higher as they want more transparency in the delivery
process. Moreover, logistics and supply chain are facing the still unsolved issue of cost control.
The rise of fuel charges combined with a steep increase in energy, freight, and labour rates
have put further pressure on logistics providers.

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Means to effective risk management and directing the relation between the suppliers and
partners is also vital. A reliable solution that covers all these individual challenges in logistics
is thus becoming a necessity. The use of logistics management software (LMS) can streamline
the flow of things in logistical operations, which guides a logistics provider or business deal
with them appropriately.

What is Logistics Management Software?

Essentially, logistics management software (LMS) simplifies operations by refining the
production cycle and making it easier to access important information quickly.

What a logistics management software does is help businesses manage the multifarious
process that goes into the production cycle from the delivery of raw materials to shipping the
finished products to the consumers.

Logistics software has become wider in its scope and functionality to deal with a wider array
of operations and processes.

It shares similarities with supply chain management software (SCMS), which contains a set of
tools that help deal with transactions, processes, and suppliers. The functionality of a logistics
management software extends to areas such as:

• Processing customer requests

• Processing purchase orders

• Inventory Management

• Suppliers Management

• Sales and Distribution

A logistics management software gets rid of all the conventional approaches like paperwork
and spreadsheets to simplify management. It comes in three variations such as warehouse
management systems, enterprise resource planning systems, and integrated supply chain
management suites.

Companies that have an in-house logistics or supply chain division and third-party logistics
providers utilise any of these different versions according to their own requirement to
manage their logistical and supply chain operations efficiently.

The Pros of Having Logistics Software

In the area of logistics, handing over the process to a logistics management software has its
own advantages. With logistics management software, a company or 3PL could avail the
following benefits.

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• Refine Transportation – Transportation being a pivotal area of logistics incurs the
most charges in the form of fuel, energy, labour, tolls, and shipping fees. Relying on
logistics software can help manage the various transportation means and leverage the
data to automate the process. This allows for easy analysis, which a company can
utilise to make relevant decisions for maximising efficiency and reducing costs.

• Faster Delivery – Logistics being a linear flow of goods and services come across
several issues that affect delivery and cause delays. By incorporating a logistics
software, a singular benefit that businesses derive is in the faster delivery of products
to the customers. A logistics management software can improve the speeds in delivery
by interfering in the production cycle and selecting the right shipping service, which
cuts short any delays to a large extent.

• Minimise Human Errors – The other notable advantage of having a logistics
management software is in reducing human error. Analysis of transportation data
results in huge quantities of data that is difficult, time-consuming, and prone to errors
when processed manually. A logistics software can process these data without any
errors in less time, which will seamlessly push forward the operations with zero
chances of delays.

• Automates Functions – Automation is another boon to integrating a logistics software
to deal with the processes. Certain functions like creating shipment routes, load
planning, and tendering of load to carriers are easily automated and managed by using
a logistics software. Moreover, it eliminates paperwork, which helps deal with the
processes in a more efficient and timely manner.

• Reduce Costs – Savings is the other end result as the logistics software can
automatically compare different shipping services, delivery agents and transportation
methods to find ones with the least pricing. The other way by which a logistics
software reduces costs is by lowering the expedited shipments through improved
planning of the shipments.

How Trends Reshaped Logistics Management Using Software

Logistics is on a forward growth and several trends have changed it remarkably. The demand
for logistics has peaked with the widespread popularity of e-commerce. As a result, logistics
is constantly evolving to accommodate the rising demands of each industry that depends on
it. One area where logistics clearly transformed is in the digitisation of its processes and
resources.

With the introduction of logistics management software, the entire nature of logistics
changed allowing a business owner to supervise the operations across different levels.
Digitisation combined physical devices and software solutions to streamline the entire cycle
of logistics by putting the owner at the centre.

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Software as a service (SaaS) is clearly gaining the upper hand as this model continue to find
widespread acceptance in logistics management and supply chain. It is a reliable model since
it offers the security and convenience that logistics managers can depend upon along with
the benefits of cloud computing.

The use of AI is another significant trend in logistics and supply chain. It holds the most
potential to disrupt the field of logistics in the near future. Some of it is already a reality now
such as in the automation of specific tasks and is slated to advance further with gesture
recognition and autonomous delivery via self-driving vehicles.

Moreover, the trends also clearly hint at an improved collaboration in the processes that
govern the logistics and supply chain. Emphasis is also given on managing risks and promoting
resilience in the supply chain, which increases the dependence on logistics software for
dealing with the processes more effective than before.

Opting for the Right Logistics Management Software

With the trends shifting logistics management in a progressive direction, the need for
software solutions in the field has become indispensable. Businesses, whether focussing on
e-commerce or delivering services, can benefit from having a logistics management software.
However, the real question is finding the right kind of logistics software since the
requirements vary for each business.

A Checklist of Essentials in an LMS

Prior to settling on software for logistics management, it is vital to understand the
requirements and challenges that a business face on a daily basis. Carrying out a detailed
analysis can help identify weaknesses in the existing logistical operations of a business.
Besides that, it can suggest measures to redeem any discovered weaknesses in the cycle.
When deciding on logistics management software, there are several essential factors to
consider. Firstly, it should contain a basic set of functions that can aid in simple logistical
management operations.

Besides that, numerous other things should also be present in the software to tackle the wide
base of logistical operations and processes that each business undertake. Some of the key
features to look for in a potential LMS are:

• Compatible Multi-Client Architecture – A logistics software that comes with multi-
client architecture support is necessary if a business handles multiple customers.
Software with inventory and purchase orders have more emphasis since the process
deals with several customers simultaneously or in different phases.

• Forecasting – The ability to forecast is a needed trait in a logistics and supply chain
management software since it can bridge gaps in supply and demand by enhancing
the business processes. Demand, supply, and price forecasting can help supply chain
management with proper scheduling of production, improve customer satisfaction,
minimising stocking out of inventory, etc.

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• Finance Integration – Having tools that integrate the financial side of the supply chain
is another key requirement in the software. Key financial aspects like general ledger,
account payables, and receivables, when included in a logistics software can guide
manage the bookkeeping and records of transactions conveniently.

• Inventory Tracking – Having an inbuilt inventory tracking feature can make a logistics
management software more dependable. Since logistics involves transactions of
various kinds, an inventory control feature enables easier processing while making
sure that the customer gets the invoice on time.

• Customisable and Streamlined Interface– A good logistics management software
should contain a streamlined interface that allows for effortless navigation across its
chief functions. A customisable logistics software can easily accommodate the unique
infrastructure and methods implemented by a business.

• CRM – A proper logistics software should also cover the customer side. A CRM
embedded logistics software allows the customers to know the status of their
deliveries. For both inbound and outbound logistics, CRM can answer the queries of
the customer and supply them with relevant information along with adjustments to
the delivery.

• Bill of Lading Creation – As a key document in shipping and freight chain, it is
recommended to look for a software that can generate bill of lading. This can make it
easier for creating bill of lading receipts to facilitate the seamless transaction of goods
under the consignee of the shipper and the logistics company.

With logistics pushed to the forefront of business operations, leveraging the right technology
can make your business compatible with the changing environment.

Outsourcing to a software development vendor will help deploy a scalable software for
logistics management into your entire supply chain operations.

Logistics Software Upholds Efficiency and Speed for Businesses

Having a logistics management software can guarantee more efficiency and control over the
logistical and supply chain operations run by a business. It means simply substituting the
existing methods with a software-centric solution. The array of features in a LMS can refine
the entire cycle of logistics right from its centre. For owners, vendors and the end customers,
the use of an LMS model opens up improved collaboration, which is the essence of effective
logistics management.

Opting for a logistics software requires considering all the above-mentioned criteria. For a
business, it involves addressing their needs and then choosing one that wraps around their
existing processes. By integrating an LMS into their operations, businesses could ratchet up
their turnaround times, streamline the overall cycle of planning and delivery all the while
keeping up with the customers’ requirements.

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Transitioning into Cloud-Based SaaS – The Future of Supply Chain

With cloud computing gaining momentum, a whole new way of processing data is left open
where services and functionalities are offered via the web. This latest innovation has also
made its influence on the web of operations involved in supply chain and logistics. With the
rising adoption of supply chain and logistics solutions, there now exists various options that
shift from premise-based software into that of a SaaS model.

Predictions estimate that a subscription-based SaaS model will clearly dominate supply chain
management in the coming years. Adopting a cloud-based supply chain solution has its own
benefits in the form of flexibility, robustness, and affordability. This is increasingly becoming
the choice for several logistics providers and organisations as several cloud services have
opened up cloud computing to a wider extent.

The benefits that businesses and providers can reap from having a cloud-based SaaS supply
chain solution are numerous. It gives a comprehensive outlook on the overall operations in
logistics by making it more transparent and collaborative. Implementing a cloud system could
reduce the upfront and operating costs along with the ability to scale up in accordance with
the needs all the while enhancing the efficiency of supply chain operations as a whole.

Summing Up

Opting for a logistics solution is one step to simplifying the entire cycle of logistical and supply
chain operations. Effective management of each process from procurement to delivery
requires a custom solution that can accommodate the demands of each provider. For
instance, an organisation lacking an in-house logistics department need a software
management tool that can wrap around their existing methodology and improve it.

What Is a Transportation Management System?146

A transportation management system (TMS) is a logistics platform that uses technology to
help businesses plan, execute, and optimise the physical movement of goods, both incoming
and outgoing, and making sure the shipment is compliant, proper documentation is available.
This kind of system is often part of a larger supply chain management (SCM) system.

Sometimes known as a transportation management solution or transportation
management software, a TMS provides visibility into day-to-day transportation operations,
trade compliance information and documentation, and ensuring the timely delivery of freight
and goods. Transportation management systems also streamline the shipping process and
make it easier for businesses to manage and optimise their transportation operations,
whether they are by land, air, or sea.

146 https://www.oracle.com/applications/supply-chain-management/what-is-transportation -manage ment-
system.html

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Transportation Management and the Supply Chain

In addition to transportation management, other components of a typical SCM system
include procurement, product lifecycle management, supply chain planning, order
management, manufacturing, inventory, and warehouse management.

Why it is Important to Have a Transportation Management System

Transportation management systems play a central role in supply chains, affecting every part
of the process—from planning and procurement to logistics and lifecycle management. The
broad and deep visibility afforded by a powerful system leads to more efficient transportation
planning and execution, which results in higher customer satisfaction. That, in turn, leads to
more sales, helping businesses grow. With such a dynamic global trade environment that we
live and transact in, it is important to have a system that will allow you to successfully navigate
complicated processes around trade policies and compliance.

Changing Consumer Expectations

In today’s world of same-day shipping and real-time tracking, consumers expect to get what
they want, when they want it. Keeping up with this demand is putting unprecedented
pressure on traditional businesses, and nowhere is that being felt more keenly than in the
supply chain. The physical movement of goods is a critical link in that supply chain, and more
and more businesses are relying on transportation management systems to help them
manage this function.

Who Uses a TMS?

Transportation management systems are primarily used by businesses that need to ship,
move, and receive goods on a regular basis, including:

• Manufacturers
• Distributors
• Ecommerce companies
• Retail businesses
• Companies that provide logistics services, such as third-party and fourth-party

logistics (3PL and 4PL) companies and logistics service providers (LSPs)

Businesses in nearly every industry, from construction to life sciences, use a transportation
management system. The primary users are businesses that spend $100 million or more
annually on freight, but the availability of cloud based TMS solutions has made it more
affordable for smaller businesses to take advantage of the benefits of incorporating a
transportation management system into their supply chain.

TMS Offerings
Businesses can buy a standalone transportation management system that can be integrated
with their existing cloud or on-premises enterprise resource planning (ERP) software and SCM
solutions.

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Some TMS solutions have trade documentation capabilities, or you can complement your
TMS with a global trade management (GTM) application. Other, typically less feature rich
TMSs, are available as modules within ERP and SCM suites.

Plan, Execute, and Optimise for Timely Delivery of Goods

A TMS can help any business plan, execute, and optimise the physical movement of goods.

Planning. A TMS helps the business select the optimal mode of shipment and the best carrier,
based on cost, efficiency, and distance, including optimising multi-leg carrier routes. A strong
TMS can provide visibility into every stage of the supply chain, and together with global trade
management functionality, it can also provide information on trade and tariffs, and if there
are any potential delays that may happen because of customs and other trade regulations.

Execution. The execution features of transportation management systems vary widely but
can include matching loads and communicating with carriers, documenting, and tracking
shipments, and assisting with freight billing and settlement. Some advanced TMS solutions
also provide track and trace services—enabling real-time information exchange among
carriers, distributors, warehouses, and customers. Such advanced systems may also have the
functionality to handle complex international logistics, including providing proper import and
export documentation making sure shipments are trade compliant.

Optimisation. TMS optimisation capacities usually include the ability to measure and track
performance with reports, dashboards, analytics, and transportation intelligence.

The Benefits of a TMS

A TMS—and modern transportation management in general—provides many benefits to
businesses. Some of the top benefits are:

• Reduced costs for the business and the end customer
• Simplification of supply chain processes across geographies, modes, and carriers
• Automation of business operations for faster and more accurate billing and

documentation
• Improvement in visibility and security, especially in transit
• Time savings—fewer manual steps result in fewer delays and faster delivery times
• The ability to track freight, both locally and globally, on a single platform
• Better import and export compliance minimising penalties and shipment delays
• New business insights as better reporting leads to faster action and process

improvement
• Improvements in customer service and customer satisfaction with real-time updates

and fewer shipment delays
• The ability to scale the business by meeting and exceeding customer demands for fast,

on-time shipments

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The Added Value of a TMS in the Cloud

A cloud-based transportation management system delivers many of the same business
benefits as other cloud solutions, including improved economies of scale, lower total cost of
ownership, no upgrade fees, and a faster return on investment (ROI).

For IT, a cloud based TMS provides additional benefits in the form of faster deployments,
fewer hours needed for training and installation, automatic updates with the latest features,
and improved security.

TMSs and the Smaller Business

Smaller businesses—those that spend $5 million to $10 million annually on freight—have
traditionally relied on spreadsheets and other manual methods to manage transportation.
But now, cloud-based solutions are making it more affordable for these smaller companies to
invest in a TMS.
The Future of TMSs

Customer expectations keep rising, not only for on-time deliveries but for two-day and even
same-day deliveries, with real-time updates provided throughout the shipment process. Ever-
changing global trade regulations are also forcing supply chains to innovate to keep pace,
often by investing in a transportation management system.

Transportation management systems must become more robust and feature-rich, providing
faster responses to consumers and more detailed information to businesses. Machine
learning enable TMSs to be more intelligent, providing better recommendations and more
accurate predictions.

Companies can choose to integrate their transportation and global trade management
systems with emerging technologies to further improve visibility and offer better customer
service. Some of these innovative technologies that are currently available include:

• IoT fleet monitoring: Internet of things (IoT) devices and sensors make real-time fleet
monitoring commonplace, including in-transit visibility of driving conditions, routes,
and assets. Companies can lower their fuel and maintenance costs, as well as reduce
delays and improve driver safety.

• Digital assistants: Digital assistants are often called chatbots, and offer immediate,
conversational responses to shipment information, leading to higher customer
satisfaction.

• Adaptive intelligence and machine learning: By applying machine learning to
historical data and trends, transportation management systems are able to predict
transit time more accurately, plan capacity, identify at-risk shipments (such as goods
that are about to expire and time- or temperature-sensitive products), and much
more.

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Enhanced artificial intelligence will also enable your TMS to provide more accurate
and informed recommendations, such as alternate delivery routes during high traffic
periods.

• Blockchain: Blockchains are now being utilised to build complex integrations among
shippers, customers, and carriers. Applications such as intelligent track and trace
increase transparency and traceability across your supply chain, but still ensure
accurate and secure information.

• Cold chain management: Another blockchain solution available in transportation
management systems is cold chain management, which is useful when different
temperatures need to be maintained at various checkpoints along the supply chain.
For instance, perishable or temperature sensitive materials and products might need
to be kept at a cool temperature in the truck but a slightly higher temperature on store
shelves. With cold chain management, the temperature can be monitored across the
supply chain, with real-time information provided to the business and the regulators
at the country of origin.

Topic 9.3: Storage, management, and database of different forwarding
environment [KT0903]

Storage Devices

Storage devices provide means of storing data and programmes until they are required.
Storage devices are developed for long-term use.

Various forms of storage, based on various natural phenomena, have been invented. A
computer system usually contains several kinds of storage, each with an individual purpose.
Apart from the primary storage such as RAM, other storage devices include:

• Secondary storage: or external memory, is computer memory that requires using the
computer’s input-output channels to access information. Secondary storage is not
directly accessible to the CPU. It is typically of higher capacity but slower than primary
storage to store long-term persistent information. The data in secondary storage is
not in active use and is preserved in the event of power loss.

• Hard disk is used as second storage in computers.

• The great increase in global ICT direction is the provision of could-based storage such
as Microsoft OneDrive, Dropbox etc.

• Tertiary storage: or tertiary memory, is a computer storage system consisting of one
or more storage drives and an automatic media library, for example a tape library or
optical disc jukebox. Tertiary storage is used for archiving rarely accessed information,
since it is much slower than secondary storage. However, unlike off-line storage, a
computer can access tertiary storage without human action.

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• Tertiary storage is used in the realms of enterprise storage and scientific computing.

• Off-line storage: is a computer storage medium which must be inserted into a storage
drive by the user before a computer can access the information stored on the medium.
Examples include floppy disks, optical discs, and magnetic tape.

• Off-line storage media can also be easily removed from the storage device. Off-line
storage is used for data transfer and archiving purposes.

Cloud storage

This article is about enterprise-level cloud data storage. For consumer-level file hosting
services, see file hosting service.

Cloud storage is a model of data storage in which the digital data is stored in logical pools,
the physical storage spans multiple servers (and often locations), and the physical
environment is typically owned and managed by a hosting company. These cloud storage
providers are responsible for keeping the data available and accessible, and the physical
environment protected and running.

People and organisations buy or lease storage capacity from the providers to store user,
organisation, or application data.

Cloud storage services may be accessed through a co-located cloud computer service, a web
service application programming interface (API) or by applications that utilise the API, such as
cloud desktop storage, a cloud storage gateway or Web-based content management systems.
In 1994, AT&T launched PersonaLink Services, an online platform for personal and business
communication and entrepreneurship.

The storage was one of the first to be all web-based, and referenced in their commercials as,
"you can think of our electronic meeting place as the cloud."[3] Amazon Web Services
introduced their cloud storage service AWS S3 in 2006, and has gained widespread
recognition and adoption as the storage supplier to popular services such as Smugmug,
Dropbox, Synaptop and Pinterest.

In 2005, Box announced an online file sharing and personal cloud content management
service for businesses.

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Architecture

A high-level architecture of cloud storage.

Cloud storage is based on highly virtualised infrastructure and is like broader cloud computing
in terms of accessible interfaces, near-instant elasticity and scalability, multi-tenancy, and
metered resources. Cloud storage services can be utilised from an off-premises service
(Amazon S3) or deployed on-premises (ViON Capacity Services).

Cloud storage typically refers to a hosted object storage service, but the term has broadened
to include other types of data storage that are now available as a service, like block storage.

Object storage services like Amazon S3 and Microsoft Azure Storage, object storage software
like Openstack Swift, object storage systems like EMC Atmos, EMC ECS and Hitachi Content
Platform, and distributed storage research projects like OceanStore and VISION Cloud are all
examples of storage that can be hosted and deployed with cloud storage characteristics.

• Cloud storage is made up of many distributed resources, but still acts as one, either in
a federated[8] or a cooperative storage cloud architecture

• Highly fault tolerant through redundancy and distribution of data

• Highly durable through the creation of versioned copies

• Typically, eventually consistent with regard to data replicas

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Advantages

Companies need only pay for the storage they actually use, typically an average of
consumption during a month. This does not mean that cloud storage is less expensive, only
that it incurs operating expenses rather than capital expenses.

Businesses using cloud storage can cut their energy consumption by up to 70% making them
a greener business. Also, at the vendor level they are dealing with higher levels of energy so
they will be more equipped with managing it in order to keep their own costs down as well.

Organisations can choose between off-premises and on-premises cloud storage options, or a
mixture of the two options, depending on relevant decision criteria that is complementary to
initial direct cost savings potential: for instance, continuity of operations (COOP), disaster
recovery (DR), security (PII, HIPAA, SARBOX, IA/CND), and records retention laws, regulations,
and policies.

Storage availability and data protection is intrinsic to object storage architecture, so
depending on the application, the additional technology, effort, and cost to add availability
and protection can be eliminated.

Storage maintenance tasks, such as purchasing additional storage capacity, are offloaded to
the responsibility of a service provider.

Cloud storage provides users with immediate access to a broad range of resources and
applications hosted in the infrastructure of another organisation via a web service interface.
Cloud storage can be used for copying virtual machine images from the cloud to on-premises
locations or to import a virtual machine image from an on-premises location to the cloud
image library. In addition, cloud storage can be used to move virtual machine images between
user accounts or between data centers.

Cloud storage can be used as natural disaster proof backup, as normally there are 2 or 3
different backup servers located in different places around the globe.

Topic 9.4: E-Commerce [KT0904]

E-business solutions 147

E-business solutions support business and government processes that are automated and
integrated using information and communication technology (ICT). This involves the
electronic exchange of documents and data that are transported to and processed by
disparate systems as part of a supply chain. In order to ensure their inter-operability, the use
of available and widely recognised standards and tools is essential.

147 http://tfig.unece.org/contents/e-business-solutions.htm

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Relevance for Trade Facilitation

A cross-border flow of goods is accompanied by a cross-border flow of information for
purchase, shipping, and payment. This information must be submitted to and processed by
various governmental agencies and commercial stakeholders. The management of this
information has long been paper based.

Nowadays, paper-based systems are increasingly transformed into electronic systems
because of the power of the internet and the fact that many organisations are adopting
automated information exchange. Many companies now manage their global supply chains
using ICT for purchasing, exchange of information on goods and the means of transport,
tracking and monitoring of goods, and preparation and submission of trade documents to
governmental authorities. Governments are increasingly using automated information
processing because of the mandatory submission of trade documents and data before goods
are shipped and arrive at their destination. E-business solutions are vital in integrating and
automating trade formalities between the various stakeholders for trade facilitation, and
their application is a key step in the establishment of Single Window facilities.

Benefits

Automating the exchange of trade documents and data has considerable well-documented
benefits. It eliminates redundancies and duplication in the submission of necessary
information, which saves time and reduces costs of trade transactions. Researchby the School
of Management, Politechnico di Milano (*), indicates that the more a supply chain is
automated, the higher the savings. These can amount to over 60 per invoice, particularly for
cross-border trade involving transport payments and transactions with several government
authorities. The OECD (*) estimates that the streamlining and automation of trade formalities
can lead to costs savings of about 8%.

Consideration for implementation

The first step for implementing e-business solutions is a business process analysis. This helps
to capture existing processes and information flows and formulate the requirements and
design of simplified integrated processes. The next step is migrating paper to electronic
documents by document simplification and data harmonisation, and the standardisation of
data exchange. These steps involve the adoption of existing standards and tools, where
available, or the development of new ones.

Data harmonisation and standardisation

Since the '70s many organisations have tried to simplify the documentary process by
developing standards and aligning documents. This simplification reduces re-keying errors in
manual systems and also supports the automation of trade data interchange. Ensuring that
trade data can be processed and transmitted without difficulty between various partners and
their different technology, requires the use of standards, procedures, and other essential
elements of data handling.

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This involves the use of agreed standards for the representation of data at the semantic level
through the process of data harmonisation, and the use of agreed message syntax,
through standardisation of messages.

Data harmonisation ensures that the data is referred to in a cohesive and consistent manner
and that it can be transmitted without re-transcriptions and communication errors. As the
data is harmonised and put into context, a registry is required to store the meta data for later
comparison and reuse. This is calls for the development of data models, which provide a
hierarchical framework for the data. They use technical specifications to provide a consistent
way to standardise storage and ensure that they are reusable.

Organising data exchange and access to information

Once data has been harmonised and standardised, it must be sent from one system to
another. E-mail is probably the most used means of sending electronic data, but there are
many ways to interchange or expose data to other systems. Best practice should involve the
security, scalability, and reliability of data transfer. This is important whether the system is
simply sending the data in a discrete manner or is involved in a more sophisticated process
such as in a service-oriented architecture, which additionally involves some web method or
operation.

Examples of trade data interchange initiatives

There are a number of ongoing initiatives for electronic trade data interchange , funded by
major organisations such as the EU. These initiatives respond to regulatory changes and lead
to the development of e-business solutions.

Topic 9.5: Role of information technology in the freight forwarding including the
modern-day technology [KT0905]

Shipping portals 148

With modern information and telecommunications technology, new methods
of shipping over the internet have emerged.

In particular the development of portals has influenced shipping. Portals exist for specific
industries, initially often established to exchange quotations and purchase orders between
suppliers and vendors inthat industry, but followed by functionalities such as transport orders
to be created and exchanged from the portal, mostly through industry-specific XML
messages.

148 http://tfig.unece.org/contents/shipping-portals.htm

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Specific shipping portals also exist, especially in the maritime sector. They allow traders and
manufacturers to communicate through the portal with transporters, especially freight
forwarders and carriers such as the main shipping lines. Bookings, shipping instructions and
delivery information can be sent to the transporters. The portal can collect tracing and
tracking information from the carriers and provide its clients with comprehensive overviews
of its shipping portfolio.

Shipping portals are web-based communities that allow access to multiple carriers through a
single site and on a global level.

Port and airport community systems have partly a similar functionality, but they are focussed
on a specific port community and its connections with the hinterland. Many portals
use UNECE and UNCEFACT Recommendations and, code lists and UN/EDIFACT messages.

Although shipping portals are private business initiatives, they make a contribution to trade
facilitation by harmonising and standardising exchange of information through the transport
chain, and thus ensuring the availability of timely information to authorities.

Customs automation

Definition/Scope

Customs automation describes the application of information and communication
technologies (ICT) for accomplishing the mission of Customs. It may support the entire
clearance process - from lodging, acceptance and processing of cargo and goods declarations
for import, export and transit, payment of applicable duties and taxes, to release of the goods
from Customs control - or only part of it. Customs automation offers new possibilities to
administrations such as pre-arrival processing and automated release of securities and
guarantees. It can facilitate the use of risk management and risk-based selectivity and the
collection of data for reporting external trade statistics.

Problem statement

The list of problems associated with insufficient Customs automation or Customs automation
projects is long. The most relevant problems affecting trade facilitation are:

1. The manual processing of paper-based cargo and goods declarations is very time
consuming. Since such administrations lack a sufficient number of well-trained staff,
such manual processing will not cope with growing volumes of international trade.

2. The many occasions for manual intervention and face-to-face over the counter touch
points between traders/brokers and Customs officials, in addition to the payment of
duties and taxes in cash, often create opportunities for corrupt practices thus
hampering trade and development. Consequently, Customs administrations operating
manually without automation hinder the economic development of a country.

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3. Customs administrations which apply IT systems often still require the subsequent
submission of a paper declaration, because they continue to require a handwritten
signature. Instead of providing the benefits of a paperless environment, these
administrations are duplicating the requirements (and cost) by asking for paper in
addition to the electronic declaration.

4. Customs automation projects are very complex undertakings, requiring the necessary
analytical and project management skills to properly specify and manage user and
technical requirements, and to develop an achievable implementation and roll-out
plan and keep the overall project on track. In many countries Customs administrations
lack the skills to manage well such large-scale transformation projects. Consequently,
projects are often not completed, and systems not operated on time and within
budget.

Implementation guidance

Standards 3.18 (supporting documents), 3.21 (declaration), 6.9 (Customs control) and 7.1
(general) of the Revised Kyoto Convention (RKC) require the use of IT and electronic means
for Customs operations. Standard 7.4 of the RKC also requires Customs to establish the
necessary enabling legal framework, including electronic authentication methods (e.g., digital
signatures).

The Kyoto Convention ICT Guidelines provide great detail about Customs automation and
project management. The list of topics covered in these Guidelines includes application areas
of ICT (e.g., declaration processing, release, e-payment, transit, trade statistics, enforcement);
system development process, project, and change management; IT security; outsourcing in
Customs; IT-related legal aspects; and many more. Any Customs automation project aiming
to implement the Revised Kyoto Convention should also apply the WCO Data Model as the
standard for electronic messages and data standards. Such a project will require a review and
in most cases a redesign of existing Customs processes and procedures, as well as
harmonisation of the various data requirements of all relevant national border agencies into
a single national data set. Above all, these projects require leadership to manage the changes.

However, very few Customs administrations have the skills and technical man power to
conduct a Customs automation project on their own. It is indispensable for any Customs
administration to establish a professional IT team that is in a position to manage the user and
technical requirements and to have the necessary skills of project and contract management
in order to provide the leadership and overall responsibility for the IT project. Also, Customs
should consider inviting stakeholders from the national and international IT industry and
service provider markets to offer support for the timely development and implementation of
a Customs IT system. A number of commercial off-the-shelf (COTS) Customs IT solutions are
now available in the market. While these solutions may require some customisation to
specific domestic requirements, they will help to reduce the significant project risks of "from
scratch" developments.

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There are many successful examples of increased performance due to Customs automation
and modernisation. For example, the "e Douane" project in Luxemburg started in 2007 and
was completed in 2009/10. During that time Luxemburg Customs has moved from 15th place
in 2007 to 1st place in 2010 in the Logistics Performance Index of the World Bank.

Additional information (references, examples, etc.)

The WCO has published the Kyoto ICT Guidelines on a password-protected members'
website. Interested parties should contact its national Customs administration.
The WCO is organising regular international ICT exhibitions, where Customs IT solution
providers present their systems.

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Chapter 10 | Logistics and Forwarding [KM-01-KT10]

The Topic Elements to be covered in the chapter referenced above include:

Topic Topic Element/Heading Knowledge Theory
10.1 Concept of groupage and surface imports KT1001
10.2 Approaches to multimodal surface clearance KT1002
10.3 KT1003
10.4 Movement of goods between locations KT1004
10.5 Basic concepts of logistics KT1005

10.6 Calculations and determination of international and KT1006
national charges

Basic concepts and tools of project management

By the end of this chapter, you should be able to demonstrate an understanding of the
following Internal Assessment Criteria or Learning Outcomes relevant to this topic:

No. Learning Outcome IAC
1 Explain different equipment/ materials and their use in IAC1001
forwarding logistics
2 Identify different project management tools and their IAC1002
relevance in managing forwarding logistics
3 Discuss the importance of instructions from overseas IAC1003
groupage principals and their use in unpacking
consignments

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Topic 10.1: Concept of groupage and surface imports [KT1001]

This particular topic has been covered extensively in earlier topics.

Topic 10.2: Approaches to multimodal surface clearance [KT1002]

This particular topic has been covered extensively in earlier topics.

Topic 10.3: Movement of goods between locations [KT1003]

Goods movement is critical to everyday life
Take a moment to look around the room you are in right now. Whether it is your home, place
of work or favourite cafe, every item that you see was brought here from places around the
corner or the globe by the goods movement system.

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Goods are the meats and vegetables you cook for dinner, the clothes you buy in the store and
order online, the pens you write with at your desk, the walls holding up the buildings around
you, and the trash you generate. We live in a world built on trade where the goods movement
sector connects people to these goods and goods to people on many levels, from local to
global. Just as you must travel to get to your job or to visit a friend, all of the goods that you
consume and support your daily life must also travel to their final destination.

• The efficient delivery of products is critical to the satisfaction of the customer, the
success of individual businesses and the urban and global economies. Yet in order to
reach the final destination, goods distributors face significant challenges across urban
and metropolitan environments: congested city streets, regional highways and rail
networks, and bottlenecked ports and airports. The distribution of goods also
contributes to this congestion, increasing emissions and noise on the streets.

• Impeding the movement of goods impedes the economy. In the extreme situation
where the supply chain comes to a standstill in a large metropolitan area, effects will
be felt by locals and ripple out across the world. If action is not taken to remedy the
situation fast, residents will lose access to basic life necessities. Hospitals would
exhaust their critical supplies in just 24 hours, service stations would run out of fuel in
48 hours, and grocery stores would be out of perishables in 72 hours.

• Goods movement must be flexible and able to accommodate rapidly changing
environments. Today there is an immense amount of pressure placed upon the goods
movement industry. Online sales are growing three times faster than traditional retail
sales and companies have shifted to just-in-time deliveries – receiving goods only as
they are needed to reduce inventory cost – requiring more frequent and customised
deliveries. Modern societal and technological trends, particularly the rise of
consumerism and the service sector, impose even more demand on urban distribution
systems that must operate within already dense, congested, and strained networks.

• The goods movement industry is the backbone of society; it cannot and will not
disappear. No matter what, people need to receive goods to sustain their daily
lifestyles. For decades, goods movement has existed in an ecosystem that has typically
been openly hostile to it or given it a lower priority. Until recently urban freight had
been overlooked by urban planners and the government.3 However, even though
goods distribution trips are a part of an industry and system that are invisible to most
people, goods movement is absolutely critical to people’s lives and must be addressed
as a key component of the liveability and efficiency of our cities today.

Where Goods Go, Metropolitan Areas

It is that last leg of the journey – the transportation and delivery of goods to businesses and
residents in cities – that presents one of the major challenges for urban freight operators and
city planners.

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In 2010, for the first time ever, 50% of the world population was living in a metropolitan area;
in the United States, Canada, and Europe this figure was over 80%. More than 80% of global
GDP is generated in cities, urban areas are becoming more attractive, and the number of
urban residents is expected to increase by 1.5 times by 2045. With more people come higher
demand and the need for more deliveries of goods to these areas. It is estimated that close
to almost all of global trade originates, traverses through or is destined for a metropolitan
area.

As a result, metropolitan areas are the main hubs in the global goods distribution network.
They are home to intermodal terminals such as ports, airports and rail yards that serve as the
interfaces between the global supply chain and the more local, national, and urban supply
chain. Goods are both produced and consumed in these places, with some metropolitan areas
primarily serving as global manufacturing or trade centres while others mostly serve as
consumers of finished products.

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The metropolitan goods movement system operates on two scales: 1) goods travelling into
and out of a metropolitan area, and 2) goods travelling within a metropolitan area. Once
goods arrive at a major gateway – a port, air, or rail terminal – they are typically transported
to logistics facilities within a metropolitan area – such as warehouses and distribution centers
– for processing and then are routed to their final destinations. These destinations may be
local (within the same metro area), or regional (to other metro areas). At the same time,
metro areas are producers of goods that are exported to other cities and regions. While the
entire network is interdependent and must function cohesively, particular attention must be
paid to the goods transported and delivered to the growing number of consumers located in
complex urban environments.

The Challenges of Goods Movement in Cities

LIVEABILITY AND STREETS

Many cities are taking actions today to make their streets more liveable and to give space
back to pedestrians. Such actions aim to create a more comprehensive transportation
network for everyone, requiring the urban streetscape – roads, curbs, and sidewalks –to serve
automobiles, pedestrians, cyclists, surface transit and parked vehicles. Many of the
interventions to make cities more liveable are warranted and should be welcomed after
decades of auto-centric policies.

The urban street network, including the curb, is critical to goods movement. However, the
current emphasis on “liveability” and its components – such as bike lanes, bus stops and bike
docking stations – ignores this, creating many challenges for trucks as they attempt to deliver
goods. Trucks must navigate through congested streets where they are generally given lower
priority; they struggle to find access to the curb to unload their goods, encouraging them to
continue to drive and cause even more congestion or forcing them to double-park.

Since more street space is allocated to pedestrians, cyclists and transit, city streets are often
far narrower than the wider highways that connect them to and serve the surrounding
metropolitan area. As a result, urban freight distribution in cities primarily relies on small
trucks, consequently increasing the number of vehicles on urban streets and exacerbating the
inefficiencies in deliveries. Making matters worse, many of these trucks, both large and small,
are only partially loaded or, even worse, empty.

BUILDINGS

In London, 3.8 million parking and loading fines were issued in 2015 totalling to millions of
pounds in fines each year.

The movement of goods extends beyond the curb. Buildings are the origin and destination of
almost every freight trip. The capacity of buildings to effectively accommodate freight has
ripple effects on other aspects of urban goods movement. Much of what happens at the
building line is physical – the size and number of loading docks, off-hour delivery space and
vertical freight (elevator) capacity.

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Many cities are empowered to mandate specific physical requirements through zoning and
building codes or provide other incentives for voluntary action.

The configuration of a building to handle freight – having sufficiently sized loading docks,
freight elevators, secure off-hour holding areas and on-site storage – can significantly
influence the number of trips, when trips occur, the durations of deliveries and their impact
on the street network. Many older cities are saddled with buildings that are inadequate to
serve the demands placed on them today. In the cases where a building has a loading dock,
its facilities are often outmoded, not built to accommodate higher volumes and larger
vehicles.

The impact of infill construction and reduction in square footage per employee are also
challenging goods movement in older cities as they grow taller and even denser. Multi-
tenanted buildings generate far more deliveries than single tenanted ones. In addition, multi-
tenanted buildings such as offices and shopping centres often do not have shared internal
logistics staff, increasing vehicle dwell time while the delivery takes place. This results in in
on-street vehicle queueing for the loading bay, and related noise, pollution, and safety
impacts for local residents.

THE ENVIRONMENT

A large office development can have over 200 deliveries per day.

Moving goods, similar to transporting passengers, can produce noxious emissions and noise.
These environmental impacts are felt more acutely in cities with dense populations because
residents directly experience the high volumes of goods that must be moved.

The freight industry produces approximately 10% of global greenhouse gas emissions, the
production of most of which is concentrated in urban areas. This figure is expected to increase
fourfold by 2050.11 The relatively recent trend of e-commerce has exacerbated the problem
by increasing the frequency of truck trips. While cities have made major strides in improving
their environmental impacts over the past fifty years, operators and policy makers must
consider innovative policies to reduce the number of freight trips and how to reduce
emissions caused by outdated vehicles, inefficient sizes, slow speeds, or congestion, and
idling.

Modern cities are also embracing a more diverse mix of land uses, comingling manufacturing,
commercial and residential districts/neighbourhoods. These changes are making
neighbourhoods more sensitive to noise. Activities associated with moving goods – idling of
diesel truck engines and the act of loading and off-loading goods – are typically major sources
of noise. Because excessive noise can deteriorate the overall quality of life for city dwellers,
noise impacts also limit goods movement strategies that attempt to shift deliveries to
overnight periods.

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PEOPLE AND TECHNOLOGY

Trucks are responsible for 47% of NOx emitted in Europe, and in Paris they emit 40 to 50%
of the fine particulates — a leading cause of upper-respiratory conditions like asthma.
The consumer’s growing expectation for on-demand deliveries as further exacerbated the
constraints that our goods movement system has been experiencing for decades. Through
e-commerce – the ability to purchase goods online via laptop, tablet, or smartphone –
consumers have radically changed how they interact with retailers. Consumers want their
goods to arrive frequently and quickly and expect the ability to check for a nearby product’s
availability. Consequently, cities are grappling with conflicting priorities: residents do not
want more trucks on the streets; do not want to hear them; and do not want to sit behind
them in traffic. However, technology has enabled us to demand more goods and, at the same
time, request increasingly more frequent deliveries.

Just-in-time deliveries are also the norm for many commercial establishments. Retailers,
restaurants, and hotels in urban centres typically are pressured by high rents and the desire
to maximise the revenue generating square footage. This results in less space to store goods,
which requires a need for more frequent deliveries.

Today, there are few incentives for residents or commercial establishments to reduce the
number of deliveries they receive. And although technology has enabled more orders to be
placed, it has not yet effectively streamlined the delivery system. Furthermore, residential
deliveries are often not successfully delivered on the first attempt resulting in added
congestion and costs for shippers. If e-commerce continues to rise and consumer
expectations do not change, both congestion and unnecessary costs will continue to increase.

Topic 10.4: Basic concepts of logistics [KT1004]

Logistics

When used in a business sense, logistics is the management of the flow of things between the
point of origin and the point of consumption in order to meet requirements of customers or
corporations. The resources managed in logistics can include physical items such as food,
materials, animals, equipment, and liquids, as well as abstract items, such as time and
information. The logistics of physical items usually involves the integration of information
flow, material handling, production, packaging, inventory, transportation, and warehousing.

There is often confusion over the difference between logistics and supply chains. It is now
generally accepted that logistics refers to activities within one company/organisation related
to the distribution of a product, whereas supply chain also encompasses manufacturing and
procurement and therefore has a much broader focus, as it involves multiple enterprises,
including suppliers, manufacturers, and retailers, working together to meet a customer’s
need for a product or service.

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One way to look at business logistics is “having the right item in the right quantity at the right
time at the right place for the right price in the right condition to the right customer.” An
operations manager who focuses on logistics will be concerned with issues such as inventory
management, purchasing, transportation, warehousing, and the planning and organisation of
these activities. Logistics may have either an internal focus (inbound logistics) or an external
focus (outbound logistics).

Inbound Logistics

A manager in charge of inbound logistics manages everything related to the incoming flow of
resources that the company needs to produce its goods or services. These activities will
include managing supplier relationships, accessing raw materials, negotiating materials
pricing, and arranging quicker delivery.

Outbound Logistics

A manager working in outbound logistics will be focused on two issues: storage and
transportation. They will use warehousing techniques to keep the finished goods safe and
accessible. Since the products may need to be moved out to a customer at any moment,
proper organisation is crucial.

Having as little product stored as possible can be advantageous since stored products are not
making money, so the outbound logistics manager often has to balance company cost savings
with consumer demand. The transportation function is by far the most complex part of
outbound logistics. Without transport, there simply is no logistics. For that reason, it is critical
to be able to move the product from one location to another in the fastest, most cost-
effective, and efficient way possible. Since transportation involves fluctuations, factors such
as delays and changes in fuel costs need to be taken into account in order to cover all possible
scenarios that might jeopardise the efficient movement of goods.149

FIATA, the International Federation of Freight Forwarders Associations and CLECAT, the
European Association for Forwarding, Transport, Logistic and Customs Services, have adopted
an official description of “freight forwarding and logistics services”:

"Freight Forwarding and Logistic Services" means services of any kind relating to the carriage
(performed by single mode or multimodal transport means), consolidation, storage, handling,
packing or distribution of the Goods as well as ancillary and advisory services in connection
therewith, including but not limited to customs and fiscal matters, declaring the Goods for
official purposes, procuring insurance of the Goods and collecting or procuring payment or
documents relating to the Goods. Freight Forwarding Services also include logistical services
with modern information and communication technology in connection with the carriage,
handling or storage of the Goods, and de facto total supply chainmanagement. These services
can be tailored to meet the flexible application of the services provided. 150

149 https://courses.lumenlearning.com/wmopen-introbusiness/chapter/supply-chain-management-and-

logistics-2/
150 https://fiata.com/uploads/media/CL0406_11.pdf

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Topic 10.5: Calculations and determination of international and national charges

[KT1005]

This particular topic has been covered extensively in earlier topics.

Topic 10.6: Basic concepts and tools of project management [KT1006]

Everyone manages projects, whether as a certified project manager managing a portfolio or
as a team player managing work processes as needed. And in our world of do more with less,
finding methods and best practices to enhance your efficiency is essential. 151

Introduction to Project Management: Key Concepts

Project management relies mainly on planning, handling, and arranging the funds accessible.
Some of the components of project management are to direct the project team effectively
through all stages and effectively implement the project. Other operations include the
identification and efficient management of the life cycle of the project and its implementation
in the user-centric development method.

Definition of Project Management

Project Management Institute (PMI) defined Project Management as "the application of
knowledge, skills, tools and techniques to a broad range of activities in order to meet the
requirements of a particular project."

An easy project management definition involves a few main premises:

1. project management is no small challenge.

2. The management of the project has a definite start and end. It is not an ongoing
method.

3. Project management utilises different instruments to evaluate performance and
monitor project tasks. These include structures for work breakdown, charts for Gantt
and charts for PERT.

4. Projects often need resources that are ad-hoc rather than committed, prevalent full-
time positions in organisations.

5. Project management lowers risk and improves opportunities for achievement.

Often, a triangle is used to summarise project management, frequently referred to as the
"triple constraint." Time, price, and range are the three most significant variables. These
shape the vertices as the main feature of value.

151 https://www.smartsheet.com/content-center/best-practices/project-management/project-management-
guide

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Image source

Generally, there are four key elements in the “triple constraint”:
1. projects must be cost-effective.
2. Projects need to be delivered on time.
3. There must be scope for projects.
4. Projects must satisfy the demands of client quality.

Phases of Project Management

A project runs through six stages during its lifecycle:
1. Project Definition: Defining the objectives, priorities, and critical success factors for
the project
2. Project Initiation: Everything needed to build up the project before the job can begin
3. Project Planning: Detailed instructions on how the project will be carried out,
including moment, price, and resource estimates
4. Project Execution: Working to deliver the product, service, or desired outcome
5. Project Monitoring & Control: Ensuring that a project remains on track and taking
corrective action to ensure completion of the project:
6. Project Closure: Formal acceptance of the deliverables and disbandment of all the
elements required to run the project

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Role of a Project Manager

Accountability of the entire project is the role of the project manager. The task of the project
manager is to guide, monitor and regulate the project from start to finish. Project managers
should not perform the tasks within the project - it is sufficient to manage the project. Here
are some of the operations undertaken by a project manager:

1. The project manager has to identify the project, decrease it to a collection of
manageable activities, get adequate funds and create a squad to do the job.

2. The project manager has to set the project's ultimate objective and motivate the
project squad to finish the project on time.

3. The project manager must regularly report advancement to all stakeholders.

4. The project manager must evaluate and monitor and mitigate the hazards to the
project.

5. Very few if any projects will ever go as scheduled. Project managers need to know
how to adapt and handle the transition.

Project Manager's Skill Set

A project manager must have a range of competencies:

1. Leadership
2. People management
3. Effective communication
4. Influencing
5. Negotiation
6. Conflict management
7. Planning

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8. Contract management
9. Estimating
10. Problem-solving
11. Creative thinking
12. Time management

Projects and project management procedures differ with each project due to their size and
complexity. Project managers should gather a thorough knowledge of project demands and
implement all stages of project management to perform the project efficiently.

Project management is all about establishing an atmosphere and circumstances for achieving
a specific goal or objective with a group of individuals in a monitored way.

If you are acquainted with what project management entails, from the phase to mitigating
everything that might (and often does) go right, you will influence the end outcome-whether
you are first involved in a project methodology or a trained professional.

Nowadays there is an extensive availability of project management tools and software
competing for customers in the market place. These tools can assist those involved in projects
to be more efficient in executing projects successfully.

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Chapter 11 | Transport equipment [KM-01-KT11]

The Topic Elements to be covered in the chapter referenced above include:

Topic Topic Element/Heading Knowledge Theory
11.1 Types and uses of transport equipment in international KT1101

11.2 transportation KT1102
11.3 Use of hand operated firefighting equipment KT1103

Types and specification for most used containers

By the end of this chapter, you should be able to demonstrate an understanding of the
following Internal Assessment Criteria or Learning Outcomes relevant to this topic:

No. Learning Outcome IAC
1 Explain the uses of different transport equipment in IAC1101
international transportation
2 Identify and describe the uses for different containers IAC1102
used for cargo shipment and storage

Topic 11.1: Types and uses of transport equipment in international
transportation [KT1101]

This particular topic has been covered extensively in earlier topics.
In brief summary however, the following may be useful:

Equipment for freight transport includes:

• Road vehicles

• Rail vehicles
• Equipment for combined transport
• Logistics equipment for ports and shipping

• Logistics equipment for the air cargo industry
• Pipeline transport and energy transport systems

• Maintenance and repair
• Security systems, anti-theft protection
• Transport heating, transport cooling, and cold chain monitoring

• Research and development

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Road vehicles

• Motor trucks, semi-trailer tractor units, heavy goods vehicles
• Vans and delivery trucks
• Trailers and semi-trailers

Rail vehicles

• Locomotives
• Open and covered standard freight wagons
• Special freight wagons

Equipment for combined transport

• Pallets
• Containers
• Tank containers, special containers
• Interchangeable containers and superstructures
• Small and medium-sized containers
• Air-freight pallets
• Accessories
• Road vehicles for transporting containers and interchangeable containers
• Rail vehicles for transporting semi-trailers, interchangeable containers, and containers
• Rail vehicles for transporting articulated vehicles
• Dual-mode transport systems
• Roll on/roll off service and ferry transport
• System solutions for combined transport

Equipment for combined transport, also known as intermodal transport or multimodal
transport, links up different modes of transport into a continuous transport chain. The classic
example is the road-rail model, and with long delivery chains, transport by ship or air is also
generally involved, upstream of downstream.

Logistics equipment for ports and shipping

The port is the interface between the different modes of transport—by water, rail, and road.
The exhibitors in the section on “Logistics equipment for ports and shipping” present logistics
equipment involving machinery, software, and services, all coordinated with each other so as
to ensure optimum processes at the terminal.

Logistics equipment for the air cargo industry

The suppliers exhibiting in the section on “Logistics equipment for the air cargoindustry” have
suitable transport containers for almost every application. In addition, they also have
complete logistics equipment for air freight management and air freight controlling. Such
logistics equipment enables the users to integrate the transport by air into the delivery chain,
in a time-optimised manner and taking consideration of the high security requirements.

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Pipeline transport and energy transport systems

Energy for power and heat is generally transported via pipes and cables. Manufacturers and
developers of such energy-transport systems present their products and innovations at the
exhibition. One particular focus of attention will no doubt be new pipe systems that have the
potential to revolutionise this field.

Security systems, anti-theft protection

Preventing theft in freight transport is an important area. “Security systems and anti -theft
protection” present concepts to give greater security and control in all modes of transport.
These include entire web-based location and monitoring systems as well as tiny sensors and
detectors that enable tracking and identification of goods.

Cargo heating, transport refrigeration/cold-chain management

Innovative solutions for the ever-present problem of maintaining an unbroken cool chain is
important.

Topic 11.2: Use of hand operated firefighting equipment [KT1102]

Most fires start small but, if left to develop, they will grow and spread, causing a great deal of
damage, and threatening the lives of those in the vicinity.

In addition to the provision of portable fire extinguishers for controlling fires, organisations
should consider the installation of fixed fire extinguisher systems to increase general fire
protection facilities and/or to protect specific areas or equipment.
This topic outlines the various portable and fixed fire extinguishing systems that can be used
in the event of a fire.

Employers' Duties

The responsible/appropriate person or duty holder will have duties under the relevant
legislation in most countries.

Under the relevant legislation, the responsible/appropriate person or duty holder is required,
where necessary (whether due to the features of the premises, the activity carried on there,
any hazard present or any other relevant circumstances) and in order to safeguard the safety
of persons, to ensure that the premises are equipped with appropriate fire-fighting
equipment. Any non-automatic fire-fighting equipment provided must be easily accessible,
simple to use and indicated by signs.

In addition, the responsible/appropriate person or duty holder must, where necessary,
nominate competent persons to implement such measures and ensure that the number of
such persons, their training, and the equipment available to them are adequate. The size of,
and the specific hazards involved in, the premises concerned must be taken into account.

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Employees' Duties

Under the relevant fire safety legislation, employees must co-operate with the
responsible/appropriate person or duty holder to ensure the workplace is safe from fire and
its effects and must not do anything that will place themselves or other people at risk.

In Practice

Types of Fire-fighting Equipment

There are two types of fire-fighting equipment: portable (e.g., fire extinguishers, fire blankets)
and fixed systems (e.g., fire hydrants, sprinkler systems).

Portable fire-fighting equipment

The function of a portable fire extinguisher is to deal with small fires that are detected soon
after ignition. Fire-fighting equipment should be considered as a means of both prevention
and protection. For example, portable fire-fighting equipment can prevent a small fire
growing out of control and spreading beyond the area of origin, affecting the means of
escape, and posing a risk to relevant persons.

In simple premises, having one or two portable extinguishers of the appropriate type, readily
available for use, may be all that is necessary. In more complex premises, a number of
portable extinguishers may be required.

Choosing the right extinguisher

Table 1: Fire Class and Extinguishers Selection

Fire Typical Material Involved Water Foam CO2 (Carbon Dry Special Wet
Class (AFFF) Dioxide) Powder Powder Chemical
(ABC)
A Wood, paper, cardboard, yes yes no
textiles, common plastics, yes
foams yes yes
yes yes
B Petrol, oils, adhesives, no no no yes
paints, varnishes
no yes yes
C Liquid petroleum gas (LPG), yes
butane, methane, propane yes

D Aluminium, magnesium, no yes
sodium, phosphorus yes

F Cooking oils and fats

Electric Electrical installations, no

computers, photocopiers,
televisions, etc

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Identification and labelling of portable extinguishers

All extinguishers are coloured red, with identifying colours forming either part of the labels
or as bands around the tops of the extinguishers. The main types of extinguisher are shown
in Table 2.

Table 2: Main Types of Extinguishers

Extinguisher Type Colour Code

Water Red with white label

Foam Red with cream label

Carbon dioxide Red with black label

Dry powder Red with blue label

Aqueous film-forming Red with cream label
foam (AFFF)

Inert gas Red with green label (these are not common)

Wet chemical Red with yellow labels (these are not common and intended for
use on cooking oil and fat fires)

Assessing the requirement for numbers and type of extinguishers

To realise the potential benefits of the provision and use of portable fire-fighting equipment,
there are three distinct words or phrases that will drive the decision-making process.

1. Where necessary: in relation to the provision of appropriate fire-fighting measures
and nomination of persons to implement them.

2. Appropriate: in relation to the type of fire-fighting equipment required.

3. Competent: in relation to the persons nominated to implement the fire-fighting
measures.

The first consideration for the responsible person is therefore to decide if they require fire-
fighting measures such as in the form of portable equipment. This is about determining what
if any equipment should be provided to protect people or whether such provision is not
necessary as it would not protect people and the cost of provision would be disproportionate
to the risk.

The assessment of the need for the provision of fire extinguishers depends on the risk
assessment — particularly the nature of the fire hazard(s) (class of fire) and the likely size of
fire — and the effectiveness of a given type and size of extinguisher.

Additional extinguishers should be provided in close proximity to particular hazards.

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Inspection and testing of extinguishers

It is recommended that an inspection of extinguishers, spare gas cartridges and replacement
charges should be carried out by a responsible person on a monthly basis. It is part of the
responsible person's duties to ensure that the fire-fighting equipment is maintained in good
working order.

Water extinguishers should be checked annually by a competent person. The checks differ
between gas cartridge and stored pressure types.

Fire blankets

Fire blankets can be used to smother Class A and B fires, particularly in situations where
burning clothing and small fires involving flammable liquids, such as cooking pan fire, are
involved. Heavy duty blankets can be used for protection during hot work such as welding.

Blankets need to be provided and used with care. It is important that the user wraps the
corner or edge of the blanket over their hands to protect them from the radiant heat of the
fire, and that it is kept between the user and the fire to protect the user from the heat.

The blanket should be placed carefully over the burning container or wrapped around the
person with burning clothes. If the fire is in a cooking pan, the heat should be turned off — if
this can be achieved without placing the person using the blanket in any danger. The provision
of fire blankets should follow from the risk assessment.

Except for smaller catering establishments, it is normally safer to use appropriate fire
extinguishers (such as those designed for oil fires) than fire blankets.
Fixed Systems

There are a number of fixed fire-fighting facilities available, including:

• fire hydrants and rising mains
• hose reel systems
• sprinkler systems
• water mist and fogging systems
• gas systems (sometimes referred to as “clean agent systems”)
• foam systems
• dry powder.

Fixed fire protection systems will usually be required/are advisable:

• where the usual requirements of the building regulations (with respect to means of
escape or compartmentation) cannot be met due to reasons of practicability, or where
a relaxation of those requirements is sought

• in high buildings, or buildings with deep basements, where fixed fire protection
systems are required to assist the fire brigade in the protection of life

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• in any building where the results of a fire risk assessment show that life safety may be
compromised by an outbreak of fire that is not extinguished promptly

• in any building where it is necessary to provide compensation for some other fire
precautionary measure that may be considered to require reinforcement, e.g., where
it is not considered practicable to provide the required level of fire separation

• on the instructions of the insurers for the building (some insurers may be persuaded
to offer a premium reduction for the installation of an approved system)

• where the consequential loss (loss of business, cost of replacement equipment, etc)
from the effects of a serious fire would be very great.

Fire Hydrants

Fire hydrant systems are the means by which large quantities of water are distributed to
premises (and within larger premises) so that the water can be used for fire-fighting purposes.
It is normal for fire hydrant systems to be capable of delivering a virtually unlimited supply of
water for use by the fire service.

In larger commercial and industrial premises, there is a requirement under building
regulations for the installation of private fire hydrants for use by the fire service in the event
of a fire.

Wet and Dry Risers

In buildings with large floor areas, and in highbuildings, hydrant outlets will be required inside
in order to overcome the difficulty which the fire service would otherwise have in conveying
fire-fighting water to the seat of a fire. In these cases, the hydrants will take the form of
landing valve outlets to which a standard fire service pattern hose can be connected. The
landing valves will be mounted on wet or dry fire mains, usually referred to as “risers”.
Wet mains or risers are left charged and water is instantaneously available when needed. Dry
risers are required to be charged, usually through an external coupling by the fire brigade
when they attend the premises, to fight a fire.

Dry and wet risers need to be tested on a regular basis — usually annually — to ensure that
they will operate as designed, that hose couplings are operational, and that valves and wheel
cocks are freely moving. It is the duty of the “responsible person” to ensure that these tests
are undertaken.

Hose Reels

Hose reel systems are generally regarded as a first-aid fire-fighting measure intended for use
by the occupants of the building. The fire service may also make use of them for small
incidents. They are particularly useful for fire protection in buildings where there is a trained
fire party or where contract works are frequently undertaken.

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If specified, hose reels should be sited in prominent and accessible positions on each floor
level and should preferably be adjacent to exits. Sufficient hose reels should be located so
that the nozzle can be taken into any room and reach to within six metres of the furthest part
of any room (so that the water jet from the nozzle can be brought to bear on any part of the
room). There should be no areas of the floor level that cannot be reached by at least one hose
reel.

Sprinkler Systems

Sprinkler systems are one of the oldest and most reliable methods of detecting and
controlling fires automatically. They are primarily intended for property protection but can
have a role in life safety if they are specifically designed for that purpose and if they operate
in conjunction with other fire safety provisions.

How a Sprinkler System Works

At its most basic level, a sprinkler system consists of a network of pipes connected to a water
supply via a main valve. The network extends throughout the whole of the area to be
protected, with sprinkler heads (the detection devices) evenly spaced to cover the whole
area. The sprinkler heads are always heat operated and are set to detect a small but
established fire. When a fire is detected, the head which has detected the fire opens and
allows water to flow. The head is designed in such a way that the flow of water is broken up
into a spray and falls like heavy rain on the area under the head, the flow of water also causes
an alarm to be sounded.

Contrary to popular belief, only heads directly affected by heat will allow water to flow. On
almost all occasions only the one or two heads directly over the area of the fire will operate.
These will usually be sufficient to control the fire and often extinguish it completely.

The flow of water applied through each head is strictly controlled by design — the quantity
being varied depending on the risk to be protected. Because heads only operate in the
presence of a small fire, sprinkler systems very rarely cause unnecessary water damage.

Types of Sprinkler System

Sprinkler systems from different manufacturers (in the UK) are all very similar, as they are all
are designed to meet Loss Prevention Council (LPC) rules (now available from BRE
Certification) and also BritishStandard BS 5306 Fire Extinguishing Installations and Equipment
on Premises. However, there are some different types of system depending on the nature of
the risk to be protected.

• Wet Pipe System: all the pipework is kept permanently full of water, right up to the
sprinkler head. This type of system is standard in most buildings and has the fastest
response in terms of applying water to a fire. It should not be used in areas where
there is a risk of freezing temperatures.

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• Dry Pipe (Pre-action) System: intended for use in cold stores or similar premises where
the temperatures are maintained below or close to the freezing point of water. The
pipework is kept charged with compressed air to hold the water back below the
control valve.

• Alternate System: used where temperatures vary seasonally. The system is kept “wet”
during the summer period for the fastest response, and “dry”, i.e., charged with
compressed air, during the winter to avoid freezing.

• Pre-action System: used in areas where the consequences of accidental discharge, due
to mechanical damage, are considered unacceptable, e.g., rooms containing
electronic data processing or electrical equipment.

• Deluge Systems: used to protect certain special risks, where there is a possibility that
an intense fire will develop very rapidly, e.g., oil-filled transformer equipment. Deluge
systems (sometimes also called “fogging” or “drencher” systems) are usually used to
protect relatively small, external risks.

Water Mist Systems

Water mist systems have been developed with the aim of extinguishing fires using the
absolute minimum amount of water.

The key to the success of water mist is ability of small water droplets to suppress or control a
fire extremely efficiently. A traditional sprinkler system removes the heat element of the
triangle while water mist removes both the heat and oxygen elements of the triangle. It
achieves this by dispersing water through specially designed nozzles at low, medium, or high
pressure. Generally, as system pressure increases, the water droplet size decreases. This, in
turn, significantly increases the total surface area of the unit and so leads to production of a
greater volume of steam, removing more energy from the fire, which generates the steam.

Water Fog Systems

High pressure water spray projector systems, primarily designed for the protection of oil filled
transformers, are sometimes referred to as water fog systems. However, these are actually
drencher systems and should be designed in accordance with rules governed by the
conventional sprinkler technology on which they are based.

Gaseous Systems

Gaseous fire extinguishing systems work by replacing the normal atmospheric gases, which
support combustion, with a gas, or mixture of gases which do not support combustion. These
are sometimes also referred to as “clean agent” systems, as they do little or no damage to
the property around them in comparison to water or foam.

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Gaseous extinguishing media have been used for a long time to protect specialised
applications, such as computer suites, control rooms and areas with critical electrical
equipment, or are used to protect electronic data processing equipment. These systems are
generally automatic and linked to detectors causing the gaseous agent to be released when
fire is detected. They rely upon the gas being contained in the fire compartment to ensure
that sufficient concentration of the agent is available to effectively extinguish the fire. Rooms
therefore need to be sealed and have controlled ventilation.

Foam Systems

Foam systems are mainly used for the protection of large flammable liquid risks, such as oil
storage tanks. Foam may be applied in two ways.

1. Self-contained systems: these have their own foam and consist of foam-making
equipment, foam supplies and pipes connected to outlets. They may be designed to
operate automatically by the incorporation of detection systems and may also give an
alarm.

2. Systems to which the fire brigade connect foam-making equipment: in these systems,
the foam-making equipment is replaced by an inlet sited on the outside of the
premises at street level.

Low expansion foam is suitable for flammable liquid fires where the liquid is immiscible (i.e.,
does not mix) with water. The rate of application of the foaming solution per unit area
determines the time required to control and extinguish the fire. Low expansion foam has good
water retention, heat resistance and gives long-term stability, but does have limited volume
and fill capability.

High and medium expansion foam is made by the aeration of an aqueous solution of a
synthetic foaming agent to the appropriate expansion. Medium foam is used for “low level”
applications where a blanket formation is required, while high expansion foam is used when
a volume performance is required (e.g., in basements or cable tunnels).

High expansion foam is typically used in confined spaces, e.g., in some warehouses, tunnels,
aircraft hangers and in some specialist, applications involving flammable gases.

Dry Powder

In these systems, the powder is kept in a pressurised container or is connected to a gas
cylinder with a system of pipework leading to outlets. Dry powder systems are used to
extinguish fires in:

• solid combustibles
• flammable liquids
• gases
• flammable metals.

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Dry powders need suitable flow and anti-caking additives in fixed systems. Although not
normally toxic, they can cause loss of visibility and breathing difficulties. Therefore,
evacuation of the protected area is desirable before the system is activated.

Dry powders should not be used for electronic protection or tightly packed combustibles such
as record vaults.

Training

Where the risk assessment identifies that, as part of the general fire precautions, fire-fighting
equipment is required, then it will be necessary to also ensure that the employees likely to
use that equipment are adequately trained.

Training staff in the use of fire extinguishers is not always seen as a reasonable and practicable
option, bearing in mind the initial and ongoing cost in relation to the risk (i.e., frequency of
use). It is not seen as an absolute duty; rather, employers must take measures that are
“adapted to the nature of the activities”. As such, many organisations, as part of the risk
assessment process, look at what is reasonably practicable in the circumstances.

In some high-risk environments, there will be a clear argument for staff to be fully trained in
the use of extinguishers as a safety measure. However, there is also an argument that training
staff to use extinguishers may be placing them in greater danger.

The employer, whatever decision is taken, should ensure that staff members are provided
with clear and absolute guidance as to what the policy is in respect of the use, or otherwise,
of portable extinguishers.

Having deemed that nominated persons are necessary, they must be competent, which
according to legislation is a combination of training, experience/knowledge and “other
qualities”. What these other qualities are is open to subjective interpretation, but may include
the ability to:

• assess a situation quickly, safely and take the correct action
• aptitude and ability to absorb new knowledge and learn new skills
• cope with stressful and physically demanding emergency procedures
• leave their normal duties such that they may be left to go immediately and rapidly to

an emergency.

Training, if undertaken, should comprise classroom talks on the theory of how extinguishers
work, their effect on fires and what the company policy is on using the equipment in the event
of a fire. Classroom talks should be backed up with hands-on experience training, where as
many of the trainees as possible put out a small, controlled fire with a variety of extinguishers.
This should be done on a regular basis, possibly every three to five years, and whenever there
is a change in the workplace or working procedures, which may affect peoples' knowledge.

Learning materials developed by Global Maritime Learning Solutions (Pty) Ltd for the Transport Education 398
Training Authority (TETA). v 2021

SAQA 96368 Knowledge Module 1

Those people nominated to use any form of fire-fighting equipment should be trained to the
extent that they are confident in using the equipment and, in particular, know the limitations
of their own skills and abilities so as not to place themselves in danger. 152

Topic 11.3: Types and specification for most used containers [KT1103]

CONTAINERS

Flat rack

Open side

152 https://app.croneri.co.uk/topics/fire-fighting-equipment/indepth

Learning materials developed by Global Maritime Learning Solutions (Pty) Ltd for the Transport Education 399
Training Authority (TETA). v 2021