Subject of International Logistics

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Russian: Предмет международной логистики

According to the system engineering theory[1], international trade is a system with complicated and high great yardstick. Regarding the activity subject of international trade (business) as the whole collection, and the one of the international logistics as the subset, the effect of establishing one's own system exists in the subset, and the international logistics can be regarded as the subsystem of international trade (business), discussed independently. The activity subject in international trades mainly include importers, transnational logistics facilitators, exporters, customs, banks, government's functional departments, insurance companies, credit rating organizations, audit agencies, etc. Among them, the international logistics facilitators are a subject of international logistics activities

In the large geographical range, the main goal of international logistics is international trade and transnational operating service, making the logistics system of various countries joined each other. Compared with local logistics system the main characteristic is summed up as follows[2]:

  • Complexity of the hardware environment of international logistics. According to the principle of the wooden barrel, the disappearance/distortion of logistics technical application of some areas (See the modrl below) will cause the service level of the whole international logistics system to drop. In addition, different logistics technical standards will cause the difficulty of integrating too.
  • Complexity of the soft environment of international logistics. Each country has different law, custom, language, social system, natural environment, management method, and production custom etc., the soft environment of logistics made up by these key elements demonstrates the diversification will increase the complexity of the international logistics too.


Prismatic model of emerging a mismatching between the home country logistics mix and host country business/marketing environment while crossing the state border by a subject of international sale contract

S PRISMA E.jpeg

LEGEND:

  • White Light” displays a quasi-optimized logistics mix having its components matched with the home country business/marketing environment.
  • Glass Prism” displays impacts of cross-border disruptions or dissimilarities on the home country logistics mix in comparison with a host country logistics mix.
  • Angles of declining for different color components of the “White Light” (from “Red” till “Violet”) display degrees of mismatching between the home and host logistics mixes after crossing the state border.

References

  1. Systems Engineering Fundamentals - DAU/DSMC Press - http://ocw.mit.edu/courses/aeronautics-and-astronautics/16-885j-aircraft-systems-engineering-fall-2005/readings/sefguide_01_01.pdf
  2. Zhanghanjiang, X. The International Logistics E-Business System Analysis and Design based on Middle Ware Technology - http://www.seiofbluemountain.com/upload/product/201001/1263372659ccobn55q.pdf
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