how do i calculate in movement of goods from one place to another (domestic logistics movements)

HOW TO CALCULATE ON TRANSPORTATION OF SMALL CONSIGNMENTS

SMALL PERSONAL CONSIGNMENT(Domestic context)

SMALL CONSIGNMENT GOODS CALCULATION

INTRODUCTION:

Life starts with his personal movements of oneself, followed with a thought that one should move from one place to another with his personal belongings may be his family, household goods, or transfer of his business from one place to another.

With the above, we can conclude that transfer of one’s belonging is perennial in anyone’s life. Transfer of people and goods is an every person’s requirement irrespective of being a un wealthy/ poor, wealthy, a common man or an Industrialist, developed or underdeveloped nations. Goods may be of small quantity or large quantity, multi-dimensional, bulk and so on and so forth.


Man succeeds in easy transfer of himself, his spouse or children, if the number is small; similarly if there is a small and handy quantity, he is willing and does it easily as most all require to undertake a job with at least some profit or else it is quiet complicated. And when the number of people is more or the goods consignment is large, he finds it also easy as he can book a vehicle – passenger or goods and transfer his goods, through a appropriate transport vehicle.


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Variety of trucks seen in the market – Jumbo/ Taurus Trucks, Trailers, 20, 40, 80 Feet Containers,


Complication initiates when the consignment is neither huge nor small, similarly with people, here with living beings, we split into small groups to make our work successful, but when it comes to a goods consignment, it becomes complicated and requires some in-puts.Generally people, approach a transport contractor and pays what so ever he asks for and is less interested to know in detail as it may be a one-time exercise or a ad hoc transaction.The goods movement can be basically classified into three types as follows:


Transportation of a normal good:Normal good shall be referred to that good, which has a uniform structure, size where handling is not a major issue. The weight and size is known or acceptable to all.

Transportation of ODC or Over Dimension Consignment:ODC shall be referred to those goods which have an extra-ordinary size and weight, where handling is not easy.

Transportation of Bulk Consignment:Bulk Consignment shall be referred to those goods which shall have almost no weight compared to the size of the consignment.

SMALL CONSIGNMENT GOODS CALCULATIONWhen we approach the transport operator.. They normally ask you few Gentle Questions and pinch your pocket (If you are unprepared):

1.Where is the Bill for the old house hold goods.When I say its an old one, he gets a chance to charge you more (for your scrap material).2. What about delivery charges?Normally an unplanned person would prefer to be delivered at Home.3. They give an unexpected freight without verifying the good.When you don’t know, he gets a chance to charge abnormally.3. You need to pay… Rs. xxx/- now itself…Like any courier office, every transport consignment is also transferred/ transported in TBB/ Paid/ To Pay Basis.

(He will not tell you about demurrage charges, if you have opted for Go-down Delivery)


For any transfer of house hold goods, you need to prepare a ‘self declaration letter’ addressed to “TO WHOM SO EVER IT MAY CONCERN”, which need to be CERTIFIED that “Its my personal consignment, which is not for sale, hence does not have any commercial value”

(The consignment transit the transporters need to cross certain check-posts or squad comes to check the consignments, our certificate will act as an document in support with the consignment)


In our recent past, one revolution in transport industry took place which was termed as ‘Logistics’, where many transport organizations made huge money, by advancing services, like proper warehousing, efficient goods handling, transportation, timely delivery of goods. Where firms made huge money by this formula, and people paid, making the transport organizations to grow bigger and bigger… Let me brief on those simple techniques:

a. Cost per kg (Minimum cost if its underweight)b. Surcharge on freight (20% of the cost)c. FOV chargesd. Handling chargese. Stationery and Statistical charges f. DD charges (Its usually Rs. 300 to Rs. 800 depending on the parcel

and so on…


A quiet number of transport organizations across charges freight based on the above formula…We here shall discuss on the techniques,

a. How they arrive at per Kg b. How much do I pay and c. How much a company earns per

transaction


Take a consignment to be transported from Mysore to Mumbai which is Rs. 20 per Kg and I need to transport a consignment of 15-20 Kgs, where the value of the consignment is Rs. 80,000.Based on the above formula the calculation would be arrive at the following:Cost per kg 20 Kgs 40 800.00

Surcharge on freight (20% of the cost) 20% 800 160.00

FOV charges 1.25% 80000 1000.00Handling charges 30 1 30.00Stationery and Statistical charges 100 1 100.00DD Charges 500.00Others – Demurrage Charges*

Total 2,590.00


In all the above 3 types of consignments, we need to collect the following data:

1. Identify the place where transportation of goods are frequent, may be a city near by or a transportation trans-shipment point.

2. Identify and collect the ‘Freight Rates for a normal truck of 9 MT’ from ‘Place A’ for the destination (Excluding, Labor charges, Freight on Value (FOV), Demurrage charges and so on, from at least 5 transport contactors/ commission agents.

3. Calculate the average of all.4. Double the average.5. Divide the same with 9000.6. You get a figure, which is the rate per Kg basis.

SMALL CONSIGNMENT GOODS CALCULATIONA normal truck has 6 wheels/ 9 MT, and

size is 18*7*7= 882/9000 Kgs*100 = 9.8 Kgs/ Sq Ft


Taurus Truck – 16 MT capacity – Has 10 Wheelers


Now in slide number 4, you need to co-relate, in which category will your consignment fall into and calculate the rates.

1. Normal goods: If above 40 Kgs (It depends on the transport operators on the weight, the standard weight is 40 Kgs), just multiply with its weight or calculate on base weight @ 40 Kgs.

2. ODC: If the consignment has enough weight then the above formula would be applicable, if not the formula used for Bulk consignment will be applicable.

3. Bulk consignment: In Bulk Consignment, you need to calculate in square feet, where the standard weight per square feet is 12 Kgs, and hence you arrive at the exact rate for transportation of the consignment.


If any doubts, across on ‘Domestic Transportation of goods’, please feel free to get in touch with me… as I have some experience in this context.

how do i calculate in movement of goods from one place to another (domestic logistics movements)

Small Business & Entrepreneurship