CLAUDIA MILENA GÓMEZ ARIAS

FICHA 1565303

a. What is the main idea of the text?

High transport costs

b. What realities have led to high transportation costs?

The "game changers" are volatile, escalating oil prices and an imbalance of
supply and demand for freight transport services.

c. What are the three such shifts that are having a notable impact today in
transportation costs?
Offshoring to nearshoring sourcing strategies, shift from designing products and
packaging for marketability, Shift from lean inventory strategies

d. What is the principal factor, the center of the factor to have high prices in
transportation?
Transport challenges are oil prices
e. What has happened to the companies which have adopted the three transport
driven shifts in supply chain?
Help to improve both supply chain and financial performance due to lower costs
and more productive investments.
f. The strategic shifts represent the manifestation of a renewed focus on the long-
established principles of transportation management. What are the key drivers of
transportation costs?
Supply of supplies, design of packaging and packages, inventory

LOGICAL COSTS OF DFI ADVANTAGES AND DISADVANTAGES

INTRODUCTION
The International Physical Distribution (DFI) It is the set of activities involved in the
transfer of goods, raw materials, inputs or finished products from the point of origin in
the exporting country to the place of consumption, sale or future transformation of the
importing country.
Its purpose is to transport the right product in the required amount to the right place and
at the lowest cost to satisfy the needs of the consumer in the international market. (Just
in time and with total quality).

Its main objective is to optimize foreign trade operations in terms of costs, time and
quality of service, in order to facilitate a uniform flow of cargo among all interested
parties. (Exporter, importer and service providers), including the stages corresponding to
regional deposits or terminals and / or indirect channels used. In addition to reducing the
risks that may arise during the journey, from the point of departure at origin to the point
of delivery at destination.

MAIN POINTS

 EFFICIENCY:
Because the less time a product remains in each of the stages of a logistics chain, lower
costs will be added to the final value of the product and the market will be supplied more
quickly.
 EFFECTIVENESS:
Because lower expenses can translate into higher operational profits.
 ADVANTAGE
There are effective ways to reduce costs in DFI without affecting the efficiency,
competitiveness, effectiveness and growth of the logistics process, such as the formation
of strategic alliances such as clusters that work in the same sector and collaborate in
strategic ways to obtain common benefits. These alliances make it possible to take
advantage of transport when they send their merchandise to the same geographical
points, which maximizes space and allows companies to share expenses and thus reduce
them. The use of mobile technologies. The design of brand strategies through content
marketing, among others.
 DISADVANTAGES
Maintaining high costs in the DFI implies a demanding level of customer service, an
immediate response of time, place or even inventories. Therefore, there must be a joint
effort and supervision of the effective strategic plan that reflects the high cost - benefit
that the client receives.
 CONCLUSION

In conclusion it is very important to carefully verify the cost - time parameters, to observe
how the quality of the service can compensate the higher cost of some of the
components.
Save the balance that must exist between the contractual terms and their compliance
according to the distribution channels, price, time and operational management.
The field of the DFI is very broad and is not only about transportation, it also includes
technology, itineraries, logistics, corporate strategies and other factors.