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Environmental analysis Planning Structure Plan implementation and Controlling the logistics program
firms strategic planning process Logistics departments must be guided by a clear vision and must measure output regularly Import-export management should try to ensure integrated management of all elements of the logistics supply chain from origin to destination Opportunities to integrate domestic and international operations should be pursued to leverage total company volumes with globally oriented carriers
Uncontrollable elements
i. ii. iii. iv. v. vi.
Political and legal systems of foreign markets Economic conditions Degree of competition in each market Level of distribution technology available or accessible Geographic structure of the foreign market Social and cultural norms of various target markets
Controllable elements
i. ii. iii. iv. v. vi.
Customer service International Inventory issues International Packaging issues Transportation Warehousing and storage Other activities like global sourcing of materials
International customer service issues International inventory issues International packaging issues International transportation issues International warehousing and storage issues
assets in inventory Inventory levels differ depending on the length of the transit Includes unique factors such as currency exchange rates, greater distances and custom duties In case of high inflation, large inventories provide inflation hedge
Containers - advantages
Reduced cost due to loss or damage Increased use of automated or mechanized material
handling equipments Lower warehousing and transportation costs Available in variety of sizes Serve as temporary storage facilities at ports and terminals
Containers- disadvantages
Delay caused in in-bound and out-bound cargo Large capital expenditures are required to initiate a
container
routes Bulk service-contractual services for individual voyages Tramp service- irregular routes and scheduled only on demand Based on the type of cargo carried 1. Conventional cargo vessels-oversized and unusual cargo 2. Container ships-standardised containers 3. Roll-on roll-off vessels-ocean going ferries
to the goods on arrival at the foreign port The bill of lading-shipping companys receipt for the goods loaded
high value, high density products Less stock holding in loading terminals Speedier settlement of invoices Eliminates excess need of intermodal transportation Facilitates JIT Convenience and ease of administration
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