Actividad de aprendizaje 12

Evidence 1: Writing and essay about logistics costs

Presentado Por:

Ana Maria Yepes Diossa

Servicio Nacional de Aprendizaje SENA

2019
 Actividad de aprendizaje 12

Evidencia 1: Writing and essay about logistics costs

Advantages and disadvantages of costs in International Physical Distribution

For any company that wants to export one of the choices that must be controlled are those
of international transport and distribution in the destination market, these factors must be
handled correctly by the company so that the product arrives in appropriate times and forms
the final consumers

For every entrepreneur, distribution is a cost issue that must be faced, these costs are
normally high, generating an extra cost in the product that the consumer ultimately pays. It
is therefore understandable that in a product different actors can intervene from their
productive chain to the distribution chain. That is, any failure in one of the stages of a
product can suspend the distribution system affecting international business.

It is for this purpose that the international physical distribution exists, being the logistic
process that is carried out in the export of products and that as main objective is to reduce
costs, times and risks to the maximum from the point of departure at the origin to the
Delivery point to the final destination.

In order for a company to expand and look for better opportunities in the market, it must
consider the investments of time, effort and capital, therefore the correct logistics that it
carries out is possible to reduce the costs of the products for the benefit of the consumers
and the costs. of production for the benefit of the company. The impact of the logistics
department within the companies is visible in the degree of customer satisfaction, as well as
in the fluidity of the internal processes of tracking, production and transportation, if the
correct efforts are being made that will ultimately be seen relejados in the reduction of
costs.

That is why the advantages of reducing logistics costs can trigger in which the company is
forced to increase its productivity since it must be directed more and more to improve
competitively, this also applies to the improvement of the company's management of the
company, thus same redounds in the possibility of expanding markets by accessing
products and markets that without the correct export are unattainable ending in one of the
best assets of companies: the increase of their customers

On the other hand, if you do not have control over the costs, you can incur high operational
risks, which leads to economic and political risks for the company, as well as " whip
effects" that can disrupt the real demand, and finally The greatest danger that the
organization has in not protecting itself from cost overruns is that it has zero margin of
error or reduced inventories to supply market needs.
As a conclusion, this is why strategies and international physical distribution should be
characterized by creating the capacity in companies to generate support to internationalize
from their production or from their market, always remembering that corporate success
because it is no longer measured so easily at present in the quantitative and qualitative,
being a factor of competitiveness to generate profitability in import operations.