Understanding Project Logistics – Definition, Characteristic And Importance
Table of Contents
What Is Project Logistics?
Logistics management and supply chain management are phrases that most individuals in the development and business world are acquainted with unless they’re asked to explain their differences. When it comes to the specific characteristics of ‘project logistics’, this terminology will be discussed in this article.
It is defined as follows by the Council of Supply Chain Management Professionals (CSCMP, 2016): Project logistics management is the part of supply chain management that plans, implements, and controls the efficient forward and reverse flow and storage of goods, services, and related information between points of origin and point of consumption in order to meet the needs of the customers.
When a company has to send a unique piece of goods, project logistics come into play. Heavy machinery, sophisticated equipment, or Out Of Gauge (OOG) items may be transported from point A to point B as part of the shipment. Single or many cargoes of varying quantities and sizes may be involved.
There is a lot of planning and administration involved in project logistics. There is no room for error when it comes to the running of a business. The client and the project logistics services provider must work together consistently to ensure that the project is delivered on time and on budget.
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Characteristics of Project Logistics
When a project is still in the feasibility stage, logistical planning has already begun in earnest. The site’s accessibility, in terms of transportation routes, rail carrying capacity, and bridge widths, might influence the design approach.
It’s possible that equipment may need to be bought before the final design is complete if the lead time is really lengthy. We prefer the term “project logistics” instead of “construction logistics” because of the early participation of supply chain specialists in a project.
The following features distinguish the supply chain for a project from those for manufacturing and retailing:
- All materials are brought together at the construction site, where the facility is built from the components that have been brought in from all over the world. The effort is concentrated on a particular product, the processing plant;
- Project supply chains are short-lived, with the exception of a few exceptions, and are often re-configured several times to produce one-off building projects.
- New facilities are required for every project, thus the supply chain must be made-to-order. Only a few instances of recurrence may be found.
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Importance of Project Logistics
Expertise is Now a Need!
Project logistics is heavily reliant on your logistics partner’s experience and, by extension, the skill of the individuals involved. Best practices may be helpful, but they aren’t adequate when you face a new difficulty every time. Experts that thoroughly organize every aspect of transportation are essential to your success.
Your logistics company’s added value not only gives you peace of mind and helps you believe in the process, but it also streamlines this time-consuming procedure.
Planning with a Purpose
It’s vital to have everyone involved in the process on the same page before the execution even starts, but enlisting the expertise of specialists may help you enjoy many advantages as well. As a result, pre-planning is an essential aspect of project logistics since it helps address the unique issues that are associated with transporting freight.
This kind of cargo may need additional safety precautions or a new means of transportation, while others may not perform well in mountainous terrains and necessitate a different route entirely. Over-dimensional shipping
Planning ahead is essential in situations like these since it allows you to anticipate and address any issues and hazards before they arise. It also aids in the development of contingency plans in the event of unforeseen circumstances.
Compliance and Safety
You’ve taken the time to prepare ahead. The project cargo may need more documentation due to its size, character, or volume as you come closer to its implementation. This paperwork may include particular compliance requirements, customs procedures, or other formalities. Your logistics partner must have a well-versed staff. If you’ve previously worked on a project of this kind, you may be able to streamline the process and leave very little to the last minute.
Unconventional Vehicles, Solutions and Equipment
It’s not only the freight that’s out of the box when transported as Out of Gauge! In order to move massive and fragile things that at times weigh thousands of tonnes, out of the box ideas are required.
As far as cargo design and positioning is concerned, as well as the use of vehicles that facilitate the transportation of this goods. There is a lot of equipment that may be reconfigured as the needs change. Road transit may need advanced studies, traffic closures, police escorts, and a wide variety of other logistical considerations.