ACTIVIDAD DE APRENDIZAJE 12

EVIDENCIA 1

WRITING AND ESSAY ABOUT LOGISTICS COSTS

EDUARD RICARDO ROA HERNANDEZ

NEGOCIACIÓN INTERNACIONAL

CÓDIGO 1749919

SERVICIO NACIONAL DE APRENDIZAJE

2019
 WRITING AND ESSAY ABOUT LOGISTICS COSTS

The International Physical Distribution, known by its acronym DFI, is the process that develops
around placing a product in the international market complying with the negotiated terms between
the seller and the buyer. Its main objective is to minimize the times, costs and risk that may be
generated during the journey, from the point of departure at origin to the point of delivery at
destination.

There are a number of forces that affect both logistics and, more generally, the supply chain
management (SCM), that is, the set of processes in which logistics is included. Globalization,
technology, organizational consolidation, consumer empowerment, government policies or legal
frameworks are some of the factors that directly affect the logistics sector and contribute to creating
some of its advantages and disadvantages.

Starting from the fact that we are in a globalized market, we are going to see what are the strengths
of logistics at an international level, facing some of the disadvantages of this sector.

 Advantage

Use of the distribution network: An efficient logistics system benefits from a large distribution
network of logistics operators, allowing them to be more powerful nationally and internationally.

Cost reduction: Thanks to the globalized distribution systems and the implementation of different
distribution systems, such as cross-docking (direct distribution to the customer), transport costs can
be reduced.

Efficient logistics management: A good logistics management and that is carried out efficiently will
improve the quality of the service and the satisfaction of the final customers.

Possibility of urgent transport: A large company dedicated to logistics transport implements

advanced systems, such as urgent transport. In this way, due to the existence of a globalized world,
orders and merchandise can arrive very quickly from one country to another.

Information technology: The new technologies implemented in the logistics sector are an efficient
response to current needs in the field of Supply Chain and the generation of value-added services.
  Disadvantages

Coordination risks: When working in the logistics sector at an international level, it must be taken
into account that there may be coordination risks due to different factors such as language, time
zones, and differences in working conditions or cultural changes.

Difficult access for SMEs: Large companies that have stronger distribution chains, so the access of
small and medium enterprises to this field is quite difficult usually cover the logistics sector.

Distance: The cost of transport of unit by product rises the greater the distance. In this way, if you
do not have strong distribution systems it is difficult to offer a competitive price for a product that
is at the other end of the planet.

Legal framework: Legislation for the transport or import and export of goods is of the utmost
importance, since the internal laws and customs policy can stop the entry or exit of a product.