Professional Documents
Culture Documents
SENA
Learning Activity 12
Bogotá DC
2019
Advantages and disadvantages of international physical distribution costs
In any company that has plans to export must take into account transport and
international distribution to the target market, these two fundamental variables
must be properly handled by the company this so that the product or products that
will be sending arrive on time and correct from the factory to the consumer.
One of the most important things for entrepreneurs is the distribution this is an
issue that must face that usually is very difficult to deal with because costs are
usually high and this creates additional costs in the product and therefore raising
the price of the product for the consumer. And this business activate a productive
chain, which, in any error or problem in one of the stages of the product distribution
process will be suspended.
For this there was created and international physical distribution, being the
logistical process that allows us to export products is carried out. Its main objective
is to reduce costs, time and risks when transporting products from their origin to
their destination.
If the logistics company is good and reduced costs can invest resources in many
more things as boost productivity and improve competitiveness, the same can
improve the management of the company and likewise can expand markets
access to products and thus significantly increase customers.
To resolve this problem should monitor average waiting times your carriers to
identify distribution centers with high service costs.
5. Use of active
Remember maximize the use of company assets to avoid further expense renting
machinery and spaces which are not needed. An analysis of the stock will give you
an idea of saving opportunities.
6. Strategy assortment
When you have more choice, higher the cost per item; the necessary storage
spaces require larger, causing the logistics more complex. Therefore, you must
find the balance between range and cost to increase your profits.
7. Traceability
This is the series of processes that track the evolution of the product at each stage.
This way, you meet the requirement of customers control the growing volume of
information about products and services. The important thing here is to keep track
to meet real-time location of your products. "
(GrupoEI, 2019)
But if you do not have good control over costs can generate operational risks that
go hand in hand with economic and political risks of the company that can trigger
many more negative effects affecting demand for the company and therefore can
damage or miss in inventories to meet the needs of the market, which would be
very damaging for the company
In conclusion we can say that the international physical distribution must have
certain characteristics such as capacity building to generate support for the
internationalization of their product and market without forgetting that corporate
success is not measured today in quantitative or qualitative being this a important
factor in competitiveness and improve the profitability of import operations.