EVIDENCIA 1: WRITING AND ESSAY ABOUT LOGISTICS COSTS

NATALIA ANDREA BLANCO CERVANTES

DANIELA CORONADO VERA
CESAR AUGUSTO ARDILA CASTRO
YENNY MARCELA MARTÍN CASTILLO
APRENDICES

JOSE HELBERT VARGAS VARGAS

INSTRUCTOR

SERVICIO NACIONAL DE APRENDIZAJE

TECNÓLOGO NEGOCIACION INTERNACIONAL
 BOGOTÁ, 2018
BUSINESS COMPETITION IN THE INTERNATIONAL PHYSICAL
DISTRIBUTION

The International Physical Distribution, known by its acronym DFI

(Distribución Fisica Internacional), is the logistic process that is developed around
placing a product in the international market complying with the terms negotiated
between the seller and the buyer. Its main objective is to reduce to the maximum
the times, costs and risk that may be generated during the journey, from the point
of departure at origin to the point of delivery at destination.

Business competitiveness ensures the survival of companies in the long-

term market, in all segments to which they want to access with products, in the
local and international context.

One of the strategies to achieve this competitiveness is the successful

planning of the international physical distribution, in terms of costs and activities
involved in the process, taking into account that within the logistics chain they
represent a representative item. This planning will materialize in cost reduction,
inventory optimization, improvement in customer service levels, optimization of
transportation routes and adequate selection of means and modes of transport.

Due to the growth of international trade, both countries and companies must
know in detail all the processes required for the proper commercialization of their
products. That is why international logistics are a decisive part involved in the
handling of goods. DFI, an international physical distribution, that vary according to
the type of product that will be commercialized and its philosophy is to put the
product at the required location, at the exact time it is needed, at a reasonable
cost. The use of a DFI is an indicator that helps to differentiate one company from
another competitively, since each one seeks to implement the best solutions for the
logistics of its products.
 Now a concern arises. Is it worthwhile to implement different strategies for
international physical distribution, regardless of the costs that these imply for
companies and countries?

One of the biggest challenges of transportation nowadays is oil prices. The

movement of cargo depends to a great extent on increasingly expensive and finite
fossil fuels, mainly diesel fuel. The great paradox that we find in this situation is
that undoubtedly with greater demand for exports and imports of products around
the world, the operational logistics costs increase as well. We can see the clear
example of the USA where a large part of these costs increase due to the logistic
of cargo handling in the main ports and thereafter the large chain that covers these
operations. For example, the roads are forced to expand and adapt since the
increase on import/export operation cause deterioration to the roads. For this
reason, we consider that this expenses must be taken into account, as they may
not affect directly to an exporter which capacity of operation is reduced,
nonetheless it clearly affects big worldwide operations and it must undoubtedly be
taken into account in the country’s economy plans.

In Colombia we have an even greater challenge, many believe that because

of our geographical location we must feel privileged, but unfortunately the
government do not see or don’t want to take advantage of that privilege, the
monopoly of cargo trucks makes transporting products a titanic and expensive
task, where real costs of the operation are not taken into account, where the roads
are in unfavorable conditions and the internal conflict, causes the risks and
operational costs to increase. For this reason, we consider it a monumental task to
try to become a large exporter when the conditions are not given in our country.

BIBLIOGRAPHY

 https://bibliotecadigital.ccb.org.co/bitstream/handle/11520/11675/100000048.pdf
 http://www.scielo.org.co/scielo.php?script=sci_arttext&pid=S0120-81602011000100013
 Calle, J. C. (2007). Distribución Física Internacional. Medellín, Colombia.  
 Ruibal Handabaka, A. (1994). Gestión Logística de la Distribución Física
Internacional.  Grupo editorial Norma S.A. Colombia. Páginas 3-67, 181-242, 251-
321.
 Villamizar M, M. (2010). Logística y distribución física internacional: Clave en las
operaciones de comercio internacional: (Online). Citado en 2010-08-20. Disponible
en www.ccb.org.co  
 http://export.promperu.gob.pe/Miercoles/Portal/MME/descargar.aspx?
archivo=9157E8CF-1B2C-4014-95C6-BD936988CCA0.PDF
 https://www.icesi.edu.co/icecomex/images/stories/pdfs/Simulador-costos-
ProColombia.pdf