International logistics
From Supply Chain Management Encyclopedia
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==Main targets of international logistics== | ==Main targets of international logistics== | ||
| - | The main targets of international logistics are to match and link national parts of global supply chains, overcome international trade barriers of different nature (political, law, cultural, currency, transportation, language, etc.), and minimize transaction costs and risks. The international logiscics is a process developing in space and time simultaneously. After that, there are a set of regulations, rules and conditions that are to be teken into account to receive outputs expected; namely, goods delivered in time, to the rigt place, in right quantity and quality. On the other hand, the target is not only to fulfill all necessary terms and conditions of a contract but minimize corresponding risks and transaction costs. When a firm becomes heavily involved in international business, logistics is seen as a critical part of the strategic planning process <ref>''Carter,J.R.,Pearson,J.N., Li Peng''. Nevetheless, before numerous international logistics decisions (transportation means and arms, packaging, terms of trade, terms of payment, insurance, etc.) it's necessary to choose the most suitable international operation. | + | The main targets of international logistics are to match and link national parts of global supply chains, overcome international trade barriers of different nature (political, law, cultural, currency, transportation, language, etc.), and minimize transaction costs and risks. The international logiscics is a process developing in space and time simultaneously. After that, there are a set of regulations, rules and conditions that are to be teken into account to receive outputs expected; namely, goods delivered in time, to the rigt place, in right quantity and quality. On the other hand, the target is not only to fulfill all necessary terms and conditions of a contract but minimize corresponding risks and transaction costs. When a firm becomes heavily involved in international business, logistics is seen as a critical part of the strategic planning process <ref>''Carter,J.R.,Pearson,J.N., Li Peng''. Logistics barriers to international operations: The case of the People's Republic of China - ''Journal of Business Logistics'', 1997 </ref>. Nevetheless, before numerous international logistics decisions (transportation means and arms, packaging, terms of trade, terms of payment, insurance, etc.) it's necessary to choose the most suitable international operation. Factually, a firm's management decision concerning the [[Modes of Entering Foreign Markets]] or foreign operation methods <ref> ''Welch, L.S., Benito, G.R.G., Petersen, B''.: Foreign Operation Methods: Analysis, Strategy, and Dynamics: Edward Elgar, London </ref> precedes and defines a set of international logistics arrangements. However, any of international operations, - from an [[International Sale Contract]] till [[International Leasing Arrangements]], - has international logistics components. Therefore, an effective international logistics strategy not only offers significant cost savings but also can help firms penetrate new foreign markets. Indeed, international logistics is recognized as an integral part of the marketing mix that furthers the global marketing process.<ref> ''Zinn, N., Grosse, R.'' Barriers to Globalization: Is Global Distribution Possible? ''International Journal of Logistics Management'' 1, no. 1 (1990): 13-8. </ref> With the assistance of an efficiently managed international logistics function, firms can gain economies of scale from increased production, obtain technological advantages from other countries, and expand their markets. <ref>''Slater, A''. International Marketing: The Role of Physical Distribution Management, ''International Journal of Physical Distribution and Materials Management'' 10, no. 1 (1980): 60-5.</ref> As logistics activities become a substantial part of a firm's international operations, the role played by international logistics managers also increases in importance. <ref>''Stock, J.,Lambert, D.'' International Physical Distribution-A Marketing Perspective, ''International Journal of Physical Distribution and Materials Management'' 12, No. 3 (1982): 4-5.</ref> |
==International logistics fields== | ==International logistics fields== | ||
Revision as of 23:48, 18 July 2011
Contents |
Origins and definitions
There are many definitions of international logistics. One of them, where they could easily find military roots as well as U.S. origin defines the international logistics as negotiating, planning, and implementation of supporting logistic arrangements between nations, their forces, and agencies. It includes furnishing logistic support (major end items, materiel, and/or services) to, or receiving logistic support from, one or more friendly foreign governments, international organizations, or military forces, with or without reimbursement. It also includes planning and actions related to the intermeshing of a significant element, activity, or component of the military logistic systems or procedures of the United States with those of one or more foreign governments, international organizations, or military forces on a temporary or permanent basis. It includes planning and actions related to the utilization of United States logistic policies, systems, and/or procedures to meet requirements of one or more foreign governments, international organizations, or forces.[1] The U.S.-based Council of Logistics constructed practically the same by nature but more shorter definition according to which the international logistics was defined as the process of “planning, implementing, and controlling the physical and information flows concerned with materials and final goods from point of origin to point of usage.”[2]. Much more short and clear definition of international logistics states the international logistics as the process of planning, implementing, and controlling the flow and storage of goods, services, and related information from a point of origin to a point of consumption located in a different country.[3]
Main targets of international logistics
The main targets of international logistics are to match and link national parts of global supply chains, overcome international trade barriers of different nature (political, law, cultural, currency, transportation, language, etc.), and minimize transaction costs and risks. The international logiscics is a process developing in space and time simultaneously. After that, there are a set of regulations, rules and conditions that are to be teken into account to receive outputs expected; namely, goods delivered in time, to the rigt place, in right quantity and quality. On the other hand, the target is not only to fulfill all necessary terms and conditions of a contract but minimize corresponding risks and transaction costs. When a firm becomes heavily involved in international business, logistics is seen as a critical part of the strategic planning process [4]. Nevetheless, before numerous international logistics decisions (transportation means and arms, packaging, terms of trade, terms of payment, insurance, etc.) it's necessary to choose the most suitable international operation. Factually, a firm's management decision concerning the Modes of Entering Foreign Markets or foreign operation methods [5] precedes and defines a set of international logistics arrangements. However, any of international operations, - from an International Sale Contract till International Leasing Arrangements, - has international logistics components. Therefore, an effective international logistics strategy not only offers significant cost savings but also can help firms penetrate new foreign markets. Indeed, international logistics is recognized as an integral part of the marketing mix that furthers the global marketing process.[6] With the assistance of an efficiently managed international logistics function, firms can gain economies of scale from increased production, obtain technological advantages from other countries, and expand their markets. [7] As logistics activities become a substantial part of a firm's international operations, the role played by international logistics managers also increases in importance. [8]
International logistics fields
From a... [9] As seen in the Figure, pre-exchange activities include a range of events, processes, policies, plans, goals, and so on. For example, an everyday low pricing (EDLP) policy tends to reduce price changes across time, which in turn reduces billing errors and customer billing disputes.
According to Incoterms 2010 and important issue...
References
- ↑ http://www.thefreedictionary.com/international+logistics
- ↑ Council of Logistics Management website: http://www.clml.org
- ↑ David, P., Stewart, R. International Logistics: The Management of International Trade Operations - Thomson: Mason, Ohio. 2007.
- ↑ Carter,J.R.,Pearson,J.N., Li Peng. Logistics barriers to international operations: The case of the People's Republic of China - Journal of Business Logistics, 1997
- ↑ Welch, L.S., Benito, G.R.G., Petersen, B.: Foreign Operation Methods: Analysis, Strategy, and Dynamics: Edward Elgar, London
- ↑ Zinn, N., Grosse, R. Barriers to Globalization: Is Global Distribution Possible? International Journal of Logistics Management 1, no. 1 (1990): 13-8.
- ↑ Slater, A. International Marketing: The Role of Physical Distribution Management, International Journal of Physical Distribution and Materials Management 10, no. 1 (1980): 60-5.
- ↑ Stock, J.,Lambert, D. International Physical Distribution-A Marketing Perspective, International Journal of Physical Distribution and Materials Management 12, No. 3 (1982): 4-5.
- ↑ Bowersox, D.J., Closs, D.J., and Cooper, M.B. (2002), Supply Chain Logistics Management, McGraw-Hill, Boston, MA.
