1st slide
Introduction:
Good [morning/afternoon], everyone. Today, I will be discussing an important aspect of logistics
and transportation industry. In any business, especially in logistics and supply chain
management, risks such as fraud, errors, and compliance issues can arise. To prevent these
problems, companies implement various strategies, including audit technology, fraud detection
software, compliance programs, and physical audits.
In this presentation, we will explore each of these strategies, understand their importance, and
see how they help businesses run smoothly and efficiently. Let’s begin!
2nd slide
Transportation is defined as the movement of people, animals, and goods from one location
toanother. These modes of transport may include air, rail, road, sea, cable, pipeline and space.
Thisfield is divided into infrastructure, vehicles, and operations. Transport is crucial as it enables
tradeand communication between one another, which ultimately establishes civilizations.
>Transportation means moving people, animals, and goods from one place to another. This can
happen in different ways, such as by car, train, airplane, ship, or even pipelines. Transportation
has three main parts:
1. Infrastructure – Roads, railways, airports, and ports that help vehicles move.
2. Vehicles – Cars, buses, trains, planes, and ships that carry people or goods.
3. Operations – The systems and rules that make transportation work smoothly.
Transportation is very important because it helps people trade, communicate, and build
communities, making life more connected and convenient.
2nd Slide
Transportation is a function within the logistics industry operations. It is focused purely on the
definition and deployment of transportation modes, such as sea, road and air. It is also
important to differentiate between logistics and the supply chain. The supply chain refers to the
entire value chain from the suppliers to the end customer, including after sales services and
reverse logistics(recycling).
>Transportation is a key function within logistics operations, focusing on the selection and
implementation of different transport modes such as sea, road, and air to move goods efficiently.
It is essential to distinguish between logistics and the supply chain. While logistics deals with the
management of transportation, storage, and distribution, the supply chain encompasses the
entire process from suppliers to end customers. This includes all stages of production, delivery,
after-sales services, and reverse logistics, such as recycling. Together, transportation and
logistics play a crucial role in ensuring smooth and efficient movement within the supply chain.
3rd slide
Types of transportation are as follows:
1.Truck Freight — Road Transportation
2.Ship — Marine Transportation
3.Train — Rail Transportation
4.Plane — Air Transportation
5.Intermodal Transportation
4th slide
The logistics industry is much broader than the transportation industry. While transportation
focuses on the movement of goods from one place to the other, the logistics industry implies a
broader spectrum and refers to the whole ‘flow’ management. This includes not only the
transportation and delivery of goods but also the storage, handling, inventory, packaging, and
various other aspects.
>The logistics industry is bigger than just transportation. While transportation is only about
moving goods from one place to another, logistics covers the entire process of managing the
flow of goods. This includes not just transportation but also storage, handling, inventory
management, packaging, and delivery. In short, transportation is just one part of logistics, while
logistics makes sure everything runs smoothly from start to finish.
5th slide
logistics executives must make further decisions beyond the mode of transportation to include:
Packaging
Containerization
Documentation
Insurance
Storage
Importing and Exporting Regulations
Freight Damage Claims
Working and collaborating with other executives within the supply chain
Managing vendors and partners
Responsible for risk mitigation
6th slide and 7th slide
Three main directions correspond with the three logistical processes which we are going to
focus on today. These are:
inbound logistics,outbound logistics and reverse logistics.
The informationabout these three supply chain directions is essential to know, especially to
people inclined in thelogistics industry.
> There are three main types of logistics that are important in the supply chain:
1. Inbound Logistics – This involves getting raw materials or products from suppliers to a
business.
Example: A car company receives parts like tires and engines from different suppliers
to build cars.
2. Outbound Logistics – This focuses on delivering finished products to customers or
stores.
Example: An online store ships a customer's order from its warehouse to their home.
3. Reverse Logistics – This deals with returning, recycling, or repairing goods.
Example: A customer returns a defective phone to the manufacturer for replacement.
These processes help businesses efficiently manage the flow of goods and services.
8th slide Regulation and standards
9th slide
REGULATION AND RELEVANT ACCOUNTING STANDARDSACCOUNTING STANDARD
Revenue from contracts with customers (PFRS 15)
Financial Instruments (PFRS 7)
REGULATORY BODIES
Departments of Trade and Industry
Department of Transportation
10th slide legal framework
Philippine Customs Modernization and Tariff Act (CMTA)
Anti-Red Tape Act (ARTA)
Clean Air Act and Maritime Environmental Laws
International Maritime Organization (IMO) regulations
11th slide risk and challenges
12th slide Industry challenges
COVID 19 pandemic such as flight declines and cancellations, travel bans, maritime fallout
Maximizing revenues
Meeting international financial reporting standards requirements
Managing tax risks
Managing fraud
Mergers and acquisitions as facilitator of industry restructuring
Opportunities in the emerging markets such as automation and blockchain
13th slide audit risk
regulatory and compliance risk
fraud risk
operational risk
cybersecurity and data risk
14th challenges in Auditing logistics
Complex Transactions
Data Integrity
Geographical Dispersal
Third-party Dependencies
15th slide risk mitigation ang strategies
Audit Technology
Fraud Detection Software
Compliance Programs
Physical Audits
> Here’s a simple explanation of each risk mitigation strategy:
1. Audit Technology – Using digital tools to review and analyze business operations for
errors or risks.
Example: A company uses software to track shipments and ensure all deliveries are on
time.
2. Fraud Detection Software – Special programs that identify and prevent fraudulent
activities.
Example: A bank uses software to detect unusual transactions and stop potential fraud.
3. Compliance Programs – Policies and training to make sure a company follows laws
and industry regulations.
Example: A logistics company trains employees on customs rules to avoid legal issues
when shipping internationally.
4. Physical Audits – Checking inventory, documents, or operations in person to verify
accuracy.
Example: A warehouse manager counts stock manually to ensure it matches the
records.
These strategies help businesses reduce risks, prevent losses, and maintain smooth
operations.
