Logistics is a crucial part of business, encompassing everything from delivering raw materials for production to distributing finished products.

Effective logistics management allows production and distribution to run more efficiently, ultimately increasing company profits. Therefore, effective logistics management significantly impacts a company’s performance.

Understanding good logistics management starts from learning the terms and types of activities involved in the logistics process. One commonly used term is “shipping”.

What is Shipping?

Shipping comes from the English word “ship”, which initially referred to transporting goods by sea.

However, the concept of shipping expands over time to include the delivery of goods by land and air, either by trucks or airplanes.

Even the delivery of goods from one point to another within the same region is also known as shipping. This process includes packaging, delivery, and logistics management by the shipping company.

Shipping and Its Types

One of the important terms in shipping is FOB (Free On Board). FOB refers to the handover process of goods as agreed upon by the seller and the buyer.

With an agreed FOB, the buyer is responsible for the shipping costs of the goods from the seller’s warehouse until they are received.

Ownership of the goods will be transferred to the buyer once the goods leave the seller’s premises. There are two types of FOB in the logistics industry, such as:

FOB Destination: The seller bears the shipping costs and is responsible for any risks during transit. The goods are only considered the buyer’s property upon receipt.
FOB Shipping Point: The buyer is responsible for the shipping costs and risks. The goods become the buyer’s property as soon as they are shipped from the seller’s warehouse.
Important Documents in Shipping

There are several important documents in the shipping process to ensure safe and transparent shipping, including:

Warehouse Receipt: Proof that the goods have been received by the shipper.
Bill of Lading (B/L): The primary document in sea shipping, as proof of receipt, ownership, and a shipping contract for goods.
Mate’s Receipt: Created by the vessel operator and used to prepare the Bill of Lading.
Stowage Plan: A document that outlines the plan for loading goods on a vessel.
Manifest: A collection of Bills of Lading that records all cargo to be shipped.
Packing List: A detailed list of shipped materials, including their weight and volume.
Invoice: Proof of transaction between the importer and exporter. Invoice is particularly essential in international trade.
Shipping Order: Shipping instructions from the seller to the expedition company, detailing the goods, including type, quantity, and sender/receiver information.

Introducing SELOG Services

In the business landscape, effective and efficient shipping processes are crucial to increasing company profits. Therefore, don’t just randomly pick logistics service provider. Prioritize one with professionalism and reputation like PT Serasi Logistik Indonesia, known as SELOG.

As part of PT Serasi Autoraya business line and Astra Group, SELOG is widely known as the leading logistics company in Indonesia.

SELOG is designed to meet customer needs for end-to-end logistics services with diverse offerings. These include Contract Logistics, Shipping Services, Shipping Agency, Freight Forwarding, Warehouse, and Yard Management.

For heavy equipment delivery, SELOG utilizes various types of transportation modes, ensuring safety and on-time delivery. It also employs Warehouse Management System (WMS) technology, enabling consumers to track goods in real-time and consolidate inventory.

SELOG services are also supported by cutting-edge digital technology, which makes customers’ businesses easier, more effective, and more efficient.

With its Astra Fleet Management Solution (Astra FMS), SELOG offers an IT-backed, all-in-one solution for vehicle management.

For more information, go to www.selog.astra.co.id or contact (021) 26605333.