Click to edit Master title style,Click to edit Master text styles,Second level,Third level,Fourth level,Fifth level,*,*,International Logistics,International logistics is the,design,and management of a,system,that controls the,forward and,reverse flow of materials,services,and information into,through,and out of the,international corporation.,Through the implementation of international logistics,the firm can implement cost-saving programs such as just-in-time(JIT),electronic data interchange(EDI),and supplier involvement.,1,Three Concepts in Global Logistics,Total Cost Concept,Trade-off Concept,Systems Concept,2,The International Supply Chain,Physical,Distribution,Management,Transportation,Corporation,Suppliers,Customers,Domestic/Import,Sourcing,Domestic/Export,Distribution,Throughflow,Inbound,Materials,Outbound,Materials,Forward and Reverse Flow of Information,Products,and Funds,Physical,Distribution,Management,Transportation,Transportation,Transportation,Order,Processing,Order,Processing,Order,Processing,Order,Placement,Inventory,Management,Materials,Management,Customer,Service,Storage,Storage,Storage,Inventory,Management,Inventory,Management,Costumer-Firm,Interface,Supplier-Firm,Interface,3,G,lobal distribution of,Clay figurine,Spring Festival pictures,fired dough twist,kites,T,ransportation,I,nventory,P,ackaging,4,Distance,Currency variation,Border,-,Crossing Process,(,additional intermediaries,),Transportation modes,Packaging and Labeling requirements,Infrastructure,Differences between Domestic and International Logistics,5,Managing Global Logistics,Ocean Shipping,Air Freight,Intermodal Transportation,Warehousing and Inventory Management,Hedging against Inflation or Exchange Rate Fluctuations,Benefiting from Tax Differences,Logistic Integration and Rationalization,6,Transportation Infrastructure,A firms logistics platform is determined by a locations ease and convenience of market reach under favorable cost circumstances.,The public sectors investment priorities,safety regulations,tax incentives,and transport policies can have major effects on the logistics decisions of firms.,The logistics manager must learn about existing and planned infrastructures abroad and at home and factor them into the firms strategy.,7,Vessels Used in Ocean Shipping,Liner Service,Bulk Service,Tramp Service,8,Airfreight,Airfreight,is available to and from most countries,including the developing world.,International airfreight is expected to grow to 190 billion tons in 2005,compared to only 70 billion tons in 1995.,Forty percent of the worlds manufactured travel by air.,Items that are high-value or high in,density,tend to travel by air.,9,Considerations for Selecting a Mode of Transport,Predictability,Transit,Time,Cost,Non-economic,Factors,10,Export Documentation,A,bill of lading,is a contract between the exporter and the carrier indicating that the carrier has accepted responsibility for the goods and will provide transportation in return for payment.,A,commercial invoice,is a bill for the goods stating basic information about the transaction,including a description of the merchandise,total cost of the goods sold,addresses of the shipper and seller,and delivery and payment terms.,A,freight forwarder,specializes in handling export documentation.,11,International Inventory Issues,Inventories tie up a major portion of corporate funds,therefore proper inventory policies should be a major concern to the international logistician.,Just-in-time inventory policies minimize the volume of inventory by making it available only when needed.,The purpose of establishing inventory systems are:,to maintain product movement in the delivery pipeline,to have a cushion to absorb demand fluctuations,12,Three Factors that Decide the Level of Inventory,Order Cycle Time,Desired Customer,Service Levels,Use of Inventories as,a Strategic Tool,13,International Packaging Issues,Packaging is instrumental in getting the merchandise to the destination in a safe,presentable condition.,Because of the added stress of international shipping,packaging that is adequate for domestic shipping may be inadequate for international shipping.,Packaging considerations that should be taken into account are environmental conditions and weight.,One solution to the packaging problem has been the development of inter-modal containers.,Cost attention must be paid to international packaging.,14,Storage Facilities,A stationary period is involved when merchandise becomes inventory stored in warehouses.,The,location decision,addresses how many distribution centers to have and where to locate them.,Storage facilities abroad can differ in availability and quality.,The logistician should analyze international product sales and then rank order products according to warehousing needs.,15,Special Trade Zones,Foreign trade zones,are areas where foreign goods may be held or processed and then re-exported without incurring duties.,Trade zones can be useful as transshipment points to reduce