TITLE

IMPORTANCE OF INTERNATIONAL PHYSICAL DISTRIBUTION

INTRODUCTION
The physical distribution is intended to discover the most satisfactory solution to carry the correct
quantity of product from its origin to the right place, in the necessary time and at the minimum
possible cost, compatible with the required service strategy. The physical distribution system treats
everything related to the movement of the product from the producer to the end user, including
the stages corresponding to regional deposits or terminals and/or indirect channels used.

In the companies there are basic systems that facilitate their operation without problems, one of
them is the LOGISTICSYSTEM related to the flow of the materials from the suppliers to the end users
and whose establishment require of an analysis and Exhaustive study that allows the company to
have a fully integrated logistical element, so that it can fulfil the mission that it is responsible for and
consists of; DEVELOP A SYSTEM THAT RUNS THE CUSTOMER SERVICEPOLICIES AT THE LOWEST
POSSIBLE COST. The current situation of change in our economy as we move from domestic market
operations to foreign trade operations necessitates the knowledge and dominance of areas that
involve parameters for satisfactory development Inworld-class economies. This is how it takes
relevance issues such as the transport of goods from its preparation, manipulation, enlistment of
documents, especially when there are high operational costs, international standards of both
management and environmental and multiple options In modes and means of transport that make
companies to mark more and more comparative advantages that allow them not only to survive in
our markets but to grow in as table way with competitive advantages, contributing in this way to
the achievement of the objectives In the country's economic policy.

MAIN POINTS

LOGISTICS AND DFI

-International logistic system.

-Incoterms 2010.

-ABC Cost System (activity-based system).

DFI is another way of saying "the whole business process".

Terms to consider in the DFI:

-Logistics: Art of anticipation (one of the definitions).

-Logistical Variables: They are the driving threads for the success of the business.

-Business: conflict resolution, in which the parties are satisfied.

-SLI: International logistic system.

-TAE: Foreign customs territory.

-TAN: National Customs territory.

-CRM: Customer service Management.

-Merchandising: Art of displaying a product.

-FTA: Free trade agreements.

-UTI: Intermodal transport unit.

-SIC: Information and communication system.

-ICT: Information and communication technology.

DFI is the key to developing and obtaining a competitive advantage, as well as a margin in business.
Logistics is perceived as an area of opportunity for organizations where there are still opportunities
for important rationalizations. According to CEL (Spanish Logistics Center), it defines that logistics is
perceived as a tool for obtaining competitiveness, which performs value added activities or added
value that result in the increase in the profitability of companies.

In turn of the above concepts, it follows that logistic managers are professionals who must know
how to calculate, administer and observe the flows of products/services, based on information
support, material movements, systems of Storage and transportation. Logistics is no longer
perceived as a restricted concept twithin organizations, to become a strategic area for value-added
generation.

The hierarchy of logistics within the organizations in the Nineties, has been because the efforts of
rationalization in traditional areas such as production, marketing, quality have been strongly
Implemented by organizations in the Last few decades.

BUSINESS LOGISTICS

It is the process that integrates, coordinates and manages the elements of the supply chain
strategically as the acquisition, transfer and storage of materials, parts and finished products
between the points of purchase and the points of consumption through their Marketing channels,
cost-effective. The logistics is applied for the effective management of the supply chain or logistic
chain.
Basic product – is the product, which comes out of the last productive stage.

• Logistic platform – integrated set of facilities where management, manipulation, control,

registration is carried out, added value to transform the basic product into the expanded product.

• Value Added – A set of transformation activities on the basic product to reach the expanded
product, such as quality statistical controls, labeled, assembled, packaged, etc. These activities are
carried out as close to the moment of consumption of the products.

• Localization – This activity usually referred to in the bibliography as "customization" implies the
adaptation of the products/services to the different consumer markets (type of packing,
requirements on labels, consumption modalities, etc.).

• VAL – Value Added Logistics or value-added logistics activities.

• Globalization – companies that develop global activities

(economies of scales, productive specialization, etc.) and using local resources effectively reach end
customers.

LOGISTICS ACTIVITIES

• Traffic and transportation

• Storage and warehousing

• Industrial Packaging

• Materials Handling

• Inventory Control

• Packaging, packing.

• Information Management

• Customer service.

• Fulfillment of orders

• Demand Forecast

• Production Planning

Acquisitions.

• Customer service levels

• Location of plants and warehouses.

• Return management.

• Supply of parts and service.

• Disposal of waste and recoverable.

CONLCLUCION

Through logistics, a position of lasting superiority can be achieved in terms of consumer preference.

The source of competitive advantages is:

✓ ability of the organization to differentiate into the eyes of the client, its competence.
✓ Act at a lower cost and consequently to a greater benefit.

This competitive advantage cannot be understood by considering a firm as a whole. It springs from
the many different activities that a firm performs when designing, producing, marketing, delivering
and sustaining its product. Each of these activities can contribute to a relative position of the costs
of the firm and create a basis for differentiation... The value chain breaks down a firm in it
strategically relevant activities in order to understand the behavior of the costs and the sources of
existing and potential differentiations. A firm gains competitive advantage by performing these
strategically important activities in a cheaper or better way than its competitors.

Plan and coordinate all the activities necessary to achieve the desired levels of service and quality
at the lowest possible cost.

Logistical management, from this point of view of the total system, is the means by which the
necessities of the clients are satisfied by means of the coordination of the raw materials and the
flow of the information that extends from the market through the firm and its or And beyond this
to the suppliers. Achieving this global integration of the company requires all lights a completely
different orientation than the one usually found in a convention al organization.

Which answers the question, what are the advantages of reducing the logistic and transport costs
in the international physical distribution and the disadvantages of the high costs in the same?, finally
the main objective of the DFI is toc on tribute to the Exporters and importers can follow DFI's golden
rule: "Transport the right product in the required amount to the agreed place and at the lowest total
cost tome et consumer needs in the international market just in time ( JAT) and with Total quality
(CT).