Evidencia 1: Writing and essay about logistics costs

Presented by:

Yelitza Peñuela

Execution Phase
 INTRODUCTION.

The physical distribution is intended to discover the most satisfactory solution to bring the
right amount of the product from its origin to the right place, in the necessary time and at
the minimum possible cost, compatible with the required service strategy. The physical
distribution system deals with everything related to the movement of the product from the
producer to the end user, including the stages corresponding to regional deposits or
terminals and indirect channels used.
In summary, the international physical distribution seeks to determine: the right product,
the right client, the right time and the right place.

Main points.

✓ Traffic and transport

✓ International physical distribution
✓ Storage and warehousing
✓ Production planning
✓ Customer service levels

The International Physical Distribution, known by its acronym DFI, is the process that
takes place 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.
When asked what are the advantages of reducing logistics and transport costs in
the international physical distribution and the disadvantages of high costs in it?

We can infer that what can not be measured can not be controlled and what can not be
controlled can not be managed. Operators are important actors for the logistics industry,
in general terms they are defined as the companies that support the transport and
handling of the cargo from the point of departure at origin to the destination delivery point.
We could talk about that if the costs were reduced, as an advantage we would save a
good amount of money in the logistics and transport in front of the products of our
company, from there to put it more simply, we would be taking it to an economic and
operational imbalance on the reason for being of it, it would be more serious the cure than
the disease because we could not afford to lower our level, therefore this counts as a
disadvantage, as well as the lack of credibility of our services as a reference on other
principals, this implies that, we would not be occupied as operators and logistics agents
and our name would be targeted and would be pointed out to society as a regular service,
not to say dismal.
The advantages we could obtain would be very significant with clear and defined policies,
because the idea of optimizing logistics operations would make the shipment for the
transportation of X product the most appropriate, in the required amount, in the agreed
place and at the lowest cost.

This website http://distribucionfisicainternacional-ujtl.blogspot.com/ states that "All the

necessary activities could be planned and coordinated to achieve the desired levels of
service and quality at the lowest possible cost"
The need to use excellent logistic operators is clear, because they optimize the company's
performance, reduce costs and improve the quality of the processes in a variable logistic
cost, decrease the loss of products and generate access to technology.
All the necessary activities could be planned and coordinated to achieve the desired levels
of service and quality at the lowest possible cost, with the result that the mission of
international logistics is to design agile, flexible and simple processes to generate a
competitive advantage, differentiating the company and that it is the customer's first
option.
To conclude we are called in our logistics companies to provide a good activity, as can be
expected, the mission of international logistics is to design agile, flexible and simple
processes to generate a competitive advantage over other companies and that it is the
first option of the client against the others that are advertised individually.

Conclusion

Establishing a good DFI, can reduce costs and risks of the goods and if it did not exist in
international trade, we could not have the products that come from other countries and
could not export because there would be how to distribute and transport them.
A dynamic and growing environment will require complementary systems that relate to
Majority and minority producers and exporters, companies will be increasingly complex
and they must have staff prepared to direct the flow of products and services from the
producer to the consumer or user.