Evidence 1: Writing and essay about logistics costs

YENSY ALEXANDRA REYES CESPEDES

SENA 2021
Introduction:

You will find out who are the actors involved in foreign trade. This will allow you to identify
who should be resorted to and what should be taken into account when carrying out
foreign trade operations

International physical distribution

Known by its acronym DFI, international physical distribution corresponds to the logistics
process developed to place a product X in the international market, fully complying with
terms previously agreed between seller and buyer. Its objectives include reducing times as
much as possible, reducing costs and minimizing the risk generated during the journey of
product X, from the point of departure at origin to the point of destination of the delivery.

By looking for the most satisfactory solution to achieve these objectives, the logistics
process will be optimized with the necessary time, at the lowest possible cost,
interconnected with the required service strategy. The physical distribution system deals
with matters related to the placement of product X, starting with the producer to the end
user, going through the stages corresponding to terminals and / or indirect channels used.

This concept originated in marketing and was introduced by the United States in the late
1970s. This refers to a unification of five subsystems: transport, storage, packaging,
loading / unloading and distribution; and a support and information system.

According to the science of administration, the DFI seeks to integrate the activities and
operations aimed at ordering, managing and coordinating the movement and transfer of
cargo (product) from the production line of an exporting country to the final point of use or
consumption in the importing country, taking as activities and operations the sequential
actions to follow: as the first activity, the preparation and arrangement of the merchandise,
which includes packaging, marking, labeling and unitization; later the handling of export
documents, invoice, packing list, certificates of origin, transport document. Then there is
the handling, the storage, the form of transport that can be national or international during
the export process. The next activity is to insure the merchandise during the journey and
stay in the ports, airports or terminals. Later, there is the management of the agents in
charge. Continuing, there is the bank management, that is, when the collection process is
carried out, whether it is the letter of credit or the money order, finally there are the agents
and international commercial logistics.
For the physical distribution to generate added value to the manager or person in charge
of the DFI, you must make the final decision based on the following main elements to
achieve and maintain a strong competitive advantage in the timely delivery of the product.

The above allows companies to achieve a well-managed logistics system so that situations
do not arise that make it impossible to flow products and information that meet the
organization's goals in the export and internationalization process.

The actors involved in foreign trade in their operations can be made up of a variable
number of “intermediaries”

These actors include:

■ Status.

■ International organizations.

■ Banking institutions.

■ Surety companies.

■ Insurance companies.

■ Warehousing companies.

■ Packaging and container companies.

■ Customs agencies.

■ Direct carriers.

■ Freight forwarders.

■ Importer and exporter.

■ Destination ports.

State: The State has a double function: it regulates (either by encouraging or discouraging
the export and import of products), and with vigilance (making sure that everything is in
accordance with the current law

International organizations: These regulate and supervise foreign trade and its operations,
examples of which are the Banco de la República, Banking Superintendency, Chamber of
Commerce, Customs, among others.

Banking institutions In each and every one of the foreign trade operations, two banks are
linked in the documentary credit operations. There is an issuing bank that is the buyer and
the advising or advising bank that is generally located in the country where the seller is
located. The latter must add their confirmation, for which it becomes the confirming bank
of the documentary credit.
Insurance companies Insurance companies provide policies depending on needs; These
policies or insurance can cover business risks as well as political risks.

Customs agent The customs agent is a person physically speaking, who must provide the
export and import service of the goods that they receive on behalf of third parties in
exchange for fees or payments.

Direct carrier He is the owner of the transport, that is, of the means by which the goods are
transported. When we refer to international transport, the following must be taken into
account: the means or mode of transport, the infrastructure corresponding to the roads,
routes, etc. and the organization of the system

Freight forwarder This is the person who mediates between the exporter, the importer and
the carrier, in relation to the international transport of goods

Customs warehouses These are spaces, whether private or public, that have been
authorized by a customs authority in order for the storage of goods to be under said
control. The merchandise can remain temporarily stored in the authorized customs
warehouses, without having made a payment of customs taxes (tariffs and VAT) during the
term established by law, which varies according to the type of warehouse, while its
customs situation is defined

Port companies These companies are a very important medium in the environment of
international physical distribution, specifically of goods. There are ports that greatly
influence the product, its final cost, therefore, diversification of imports and exports must
be taken into account in all economic strategies. Therefore, the operation, articulation and
organization of commercial ports must be examined in a correct way.

Conclusion:

the DFI is related to the entire movement of the product and this involves the legal,
logistical, control, transportation aspects, among others. Without one of these factors fails,
the merchandise could not reach its final recipient, which in most cases is the customer.
For this reason, professionals capable of ensuring the optimization and management of
physical distribution are needed.