Free course · Transport + distribution
Logistics Fundamentals
Modes of transport, freight costing, FTL vs LTL, containers, 3PL/4PL, route planning, shipping documents and logistics KPIs.
What you must take away
- Logistics moves and stores goods: the right product, place, time, quantity and cost.
- Choose the mode on cost, speed, reliability and cargo type: road, rail, sea, air, multimodal.
- FTL (full truck) is cheaper per unit; LTL (part load) suits small shipments.
- Track cost per kg, transit time, on-time delivery and damage rate.
In the SAP process
- Create the outbound delivery (VL01N).
- Create a shipment and assign deliveries (VT01N).
- Calculate freight costs (VI01).
- Post goods issue and record proof of delivery.
Case study
Consolidating part loads
Setting. A consumer-goods company shipping to 40 dealers in one region.
Problem. Daily part-load trucks to each dealer made freight cost per carton very high.
How it was investigated
- Mapped dealer locations and order frequency.
- Found most trucks were less than half full.
- Dealers would accept fixed delivery days.
What was changed
- Grouped dealers into four routes with fixed weekly days.
- Switched to full-truck milk runs.
- Agreed a rate card with one transporter.
Outcome. Truck utilisation rose above 85% and freight cost per carton dropped clearly.
Lesson: Plan the route before you negotiate the rate.
Illustrative composite of common shop-floor situations — no client names or confidential figures.
Practical template
Freight mode comparison
Compare transport options for one shipment.
| Lane | Mode | Transit days | Cost | Cost per kg | Reliability % | Choice |
|---|---|---|---|---|---|---|
| Chennai → Dubai | Sea FCL 20' | 12 | 1,150 USD | 0.07 | 92% | Yes |
How to use it
- List each realistic mode for the lane.
- Get quotes and convert to cost per kg.
- Pick on total cost and the delivery date needed.
Quick quiz — check your understanding
The quiz questions stay hidden until you have spent at least one minute reading this lesson — answer from what you learned, not from clues in the options.