Evidencia 1: Writing and essay about logistics costs

Laura Maria Poveda Rincon

Instructora: Carolina Parra

Sena Virtual

Negocios Internacionales

Bogota D.C

2019
 WRITING AND ESSAY ABOUT LOGISTICS COSTS

Introduction

The physical distribution is intended to discover the most satisfactory solution to

bring the right amount of the product from its origin to the right place, in the
required time and at the minimum possible cost, compatible with the required
service strategy.
The physical distribution system deals with 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 indirect channels used. In
summary, the international physical distribution seeks to determine the right
product, the right client, the right time and of course the right place.

THE IMPORTANCE OF LOGISTIC SYSTEM AND PHYSICAL DISTRIBUTION

Physical distribution takes place within numerous wholesaling and retailing

distribution channels, and includes such important decision areas as customer
service, inventory control, materials handling, protective packaging, order
procession, transportation, warehouse site selection, and warehousing.
Physical distribution is part of a larger process called "distribution," which
includes wholesale and retail marketing, as well the physical movement of
products.

We must take into account that logistics and international physical distribution
are key in foreign trade operations, given that logistics is key to achieving
maximum efficiency and effectiveness, which can be summarized as follows:
Efficiency because the less time a product remains in each of the stages of a
logistics chain, the lower costs will be added to the final value of the product
and the market will be supplied more quickly and effectively because in most
cases, lower costs can be translated into higher operational profits. For this
reason there are two factors that determine the operation and that we must
analyze: Time and costs, therefore, the time factor must be considered as a
determining factor in the reduction of costs.
On the other hand, the lack of investment in transport infrastructure affects
negatively, therefore, this way limits the supply chain of products at a global
level, there by generating a rise in the final process of each product.

As for the positive aspects that benefit companies besides creating strategies to
counteract the distances and to be able to carry out their activities as close as
possible to the final market we see that the companies are modifying the way in
which they pack their products in such a way that these occupy less space and
weight so that all the costs as well as of transport are reduced.

¿WHAT ARE THE ADVANTAGES OF REDUCING LOGISTICS AND

TRANSPORT COSTS IN THE INTERNATIONAL PHYSICAL DISTRIBUTION
AND THE DISADVANTAGES OF THE HIGH COSTS IN IT?
To answer this question we can infer that what can’t be measured cannot be
controlled and what cannot be controlled cannot be managed. Operators are
important actors for the logistics industry, in general terms they are defined as
the companies that support the transport and handling of the cargo from the
point of departure at origin to the destination delivery point.
For any company that wants to export one of the choices that must be
controlled are those of international transport and the company must handle
distribution in the destination market, these factors correctly so that the product
arrives inappropriate 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 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 releases in the reduction of costs.
That is why the advantages of reducing logistics costs can be triggering 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 Is management of the company, thus same redounds in the possibility
of expanding markets by accessing products and markets that without the
corrected port are unattainable ending in one of the best assets of companies
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 suantitative and qualitative, being a factor of competitiveness
to generate profitability in import operations.
CONCLUSION

Generating a good DFI, can reduce costs and risks of the goods and if it did not
exist in international trade, we could not have the products that come from the
other countries and we could not export the products because there wouldn’t be
a way to distribute and transport them. A dynamic and growing environment will
require complementary systems that relate to Majority and minority producers,
exporters, companies will be increasingly complex, and they must have staff
prepared to direct the flow of these products and services from the producer to
the consumer or the user.

BIBLIOGRAPHY

ceforbusiness.com/small/Op-Qu/Physical-Distribution.html
https://repository.unimilitar.edu.co/bitstream/handle/10654/11620/Ensayo
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