International Logistics.International logistics is the design andmanagement of a system that controls the forwardand reverse flow of materials, services, andinformation into, through, and out of theinternational corporation.Through the implementation of internationallogistics, the firm can implement cost-savingprograms such as just-in-time (JIT), electronicdata interchange (EDI), and supplier involvement.1
1 International Logistics •International logistics is the design and management of a system that controls the forward and reverse flow of materials, services, and information into, through, and out of the international corporation. •Through the implementation of international logistics, the firm can implement cost-saving programs such as just-in-time (JIT), electronic data interchange (EDI), and supplier involvement
Three Concepts in GlobalLogisticsSystems ConceptTotal Cost ConceptTrade-offConcept
2 Three Concepts in Global Logistics Total Cost Concept Trade-off Concept Systems Concept
TheInternational Supply ChainCorporationSuppliersCustomersDomestic/lmportInboundOutbound...Domestic/ExportThroughflowSourcingMaterialsMaterialsDistributionOrderOrderOrderOrderProcessingPlacementProcessingProcessingSupplier-FirmTransportationTransportationInterfaceCostumer-FirmPhysical...MaterialsInterfaceTransportationTransportationDistributionManagementManagementPhysicalCustomerDistributionServiceManagementInventoryInventoryInventoryStorageStorageStorageManagementManagementManagement....Forward andReverse Flow of Information,Products,and Funds3
3 The International Supply Chain Physical Distribution Management Transportation Suppliers Corporation Customers Domestic/Import Sourcing Domestic/Export Distribution Inbound Throughflow Materials Outbound Materials Forward and Reverse Flow of Information, Products, and Funds Physical Distribution Management Transportation Transportation Transportation Order Processing Order Processing Order Processing Order Placement Inventory Management Materials Management Customer Service Storage Storage Storage Inventory Management Inventory Management Costumer-Firm Interface Supplier-Firm Interface
Global distribution of ...Clay figurine, Spring Festival picturesfired dough twist, kitesTransportationInventory-Packaging
4 Global distribution of . Clay figurine, Spring Festival pictures, fired dough twist, kites Transportation Inventory Packaging
Differences between Domestic andInternational Logisticsα Distanceα Currency variationProcessα Border-Crossing(additionalintermediaries)α Transportation modesα Packaging and Labeling requirementsα Infrastructure5
5 ¤Distance ¤Currency variation ¤Border-Crossing Process (additional intermediaries) ¤Transportation modes ¤Packaging and Labeling requirements ¤Infrastructure Differences between Domestic and International Logistics
Managing Global LogisticsOcean Shipping Air Freight Intermodal Transportation Warehousing and Inventory Management Hedging against Inflation or Exchange RateFluctuations Benefiting from Tax Differences Logistic Integration and Rationalization6JohnWiley &Sons, Inc c 1998
John Wiley & Sons, Inc c 1998 6 Managing Global Logistics Ocean Shipping Air Freight Intermodal Transportation Warehousing and Inventory Management Hedging against Inflation or Exchange Rate Fluctuations Benefiting from Tax Differences Logistic Integration and Rationalization
Transportation Infrastructure A firm's logistics platform is determined by alocation's ease and convenience of marketreach under favorable cost circumstances.The public sector's investment prioritiessafety regulations, tax incentives, andtransport policies can have major effects onthe logistics decisions of firms.The logistics manager must learn aboutexisting and planned infrastructures abroadand at home and factor them into the firm'sstrategy.7
7 Transportation Infrastructure A firm’s logistics platform is determined by a location’s ease and convenience of market reach under favorable cost circumstances. The public sector’s investment priorities, safety regulations, tax incentives, and transport policies can have major effects on the logistics decisions of firms. The logistics manager must learn about existing and planned infrastructures abroad and at home and factor them into the firm’s strategy
Vessels Used in Ocean ShippingLinerServiceTrampServiceBulk Service8
8 Vessels Used in Ocean Shipping Liner Service Bulk Service Tramp Service
AirfreightAirfreight is available to and from most countries,including the developing world. International airfreight is expected to grow to 190billion tons in 2005, compared to only 70 billiontons in 1995. Forty percent of the world's manufactured travelby air.就 Items that are high-value or high in density tendto travel by air.9
9 Airfreight Airfreight is available to and from most countries, including the developing world. International airfreight is expected to grow to 190 billion tons in 2005, compared to only 70 billion tons in 1995. Forty percent of the world’s manufactured travel by air. Items that are high-value or high in density tend to travel by air
Considerations for SelectingaMode of TransportTransit TimePredictabilityCostNon-economicFactors
10 Considerations for Selecting a Mode of Transport Transit Time Predictability Cost Non-economic Factors