S1 - Logística Internacional

International Logistics II
Prof. Hugo Gamarra

Universidad de Lima
Logística Internacional II
Evolution - Concept of Logistics
50’s • Production, warehouse management,

Isolated areas transportation, service, sales.
60’s
• Physical distribution, internal coordination.
Grouping
70’s • Application of intra--logistics at a company
Integration level.
80’s • Logistics between companies (Wal-Mart,

Supply Chain P&G)
90’s • Global logistics between countries,

Globalization agreements, global networks, outsourcing.
Evolution - Concept of Logistics
Logistics - Definition
Logistics is the process of planning, implementing

and controlling the efficient and effective flow of
raw materials, work in process inventory, finished
goods, services and related information from the
point of origin to the point of final consumption
(including internal and external movements and
operations of export and import), in order to satisfy
customer requirements.
Definition of the Council of Logistics Management
Logistics Management
The Logistics Management is that part of SCM that plans,

implements and controls efficiently and effectively normal and
reverse flow and storage of goods, services and related
information between the point of origin and the point of
consumption in order to satisfy the needs of customer.
Logistics definition - Council of Logistics Management, 2003.
Logistics Management
Flow of Information
SUP CUS
PLIE Sourcing Production Distribution Sales TOM
RS ERS
Flow of Products
In logistics is critical to control the flow of products and the

information flow.
The goals of Logistics
• Right
Price
• Right • Right
• Cust
Plac omer
Cond
e ition
• Right
Mom
ent
The logistics in the Company structure
PRODUCTION COMMERCIALIZATION
(Activities) (Activities)
Common LOGISTICS Common
✓ Quality Control activities (Activities) activities ✓ Promotion
✓ Production Planning ✓ Market Research
✓ Equipment ✓ Product ✓ Transport ✓ Products
Maintenance ✓ Establishing ✓ Sales staff
Planning ✓ Inventory
✓ Planning the standard levels of management
✓ Factory Management
production capacity customer service
Location ✓ Order
✓ Product Design ✓ Pricing
✓ Purchases of Processing
Tasks ✓ Packaging
raw materials ✓ Storage
✓ Establishment of ✓ Selection of
✓ Material
working levels points of sale
handling
Close cooperation between the logistics department and the other departments of a
company is necessary.
Distribution channels
Its function is to fulfill contractual terms: Prices, times,

Operational Management.
International Logistics
The International Logistics is the system that integrates the functions of
production, marketing and physical distribution for the strategic supply
management, movement and storage of supplies and finished goods with the
flow of information required in an operation of international trade.
So international logistics, integrates four aspects:

✓ The product
✓ International marketing
✓ International physical distribution
✓ The information system that allows to accurately track at all stages and
ensure delivery of the product under optimal quality, good price and on time.
In this way, concepts such as overall quality and just in time, make fundamental
part of logistics.
1. Product: manufacture, storage, packaging, packing, transportation,
labelling if required, under a scheme of quality assurance. From the
selection of raw materials, the exporter must control every stage of
the production process in a way that reduces the probability of default
on deliveries.
2. International marketing: market research, market and segment

choice, establishing business contacts, negotiations with the buyer. At
this point you should consider price, quantity, presentation, and
delivery locations and payment.
3. International Physical Distribution: refers to the different operations
to be made with the load to be moved through the distribution chain.
Its goal is to transport the right product, in the required amount, in the
agreed place and at the least cost to meet consumer needs in the
international market, just in time and with total quality. The cost of DFI
is given by the difference between the EXW price of the product and
its DDP price for example.
4. Information System: a tool for decision making that allows to locate

the product at any point through the International Logistics (to prevent or
respond to delays), to know in what condition is (whether there was any
damage or loss).
ELEMENTS
INFORMATIO
PRODUCT FUNCTIONS MARKET
N
Identification: • Exportable • Destination

• Load Type • Location (delay)
production (export)
• Nature • Status of the load
• International • Origin (import)
• Value added Trade • International
(damage / loss)
• Weight / Volume • IPD Transit
• Stowage
International Physical Distribution
Is the logistical process developed around placing a product
on the international market in compliance with the terms
negotiated between the seller and the buyer.
PRINCIPAL GOAL:
➢ Minimize the times, costs and the risks that can be
generated during the trip from the point of departure at
origin to the point of delivery at destination.
Suppliers
Company
Customers
Inbound Logistics Outbound Logistics

Supply Logistics Distribution Logistics
Physical flow of goods Information
Logistics and Distribution
SUPPLIERS -> RAW MATER. -> PRODUCTION -> PRODUCTS -> CUSTOMERS
SUPPLY PRODUCTION DISTRIBUTION AFTER SALES

LOGISTICS LOGISTICS LOGISTICS SERVICE
LOGISTICS
SCM INTERNATIONAL PHYSICAL DISTRIBUTION
SUPPLYING
STORAGE
DISTRIBUTION
Just In Time
The Product
✓ in the RIGHT Place
✓ at the RIGHT Moment EXCELLENCE

IN SERVICE
✓ with RIGHT
Documentation
✓ with the RIGHT cost
The physical distance between the exporter and the buyer has a number of extra
costs that directly affect fixing a final sale price of export.
IPD Chain
Preparation • Packaging and Marking
Unitarization • Palletization and containerization
Handling • In terminals and warehouses
Storage • In warehouses and private or public deposits
Transport • Throughout the distribution chain
Cargo Insurance • Risk / Policies
Documentation • Invoices, certificates, docs. payment, etc.

Management and customs • Exports
operations
Management and banking • Banks / agents
Distribution Management • It includes operator and administrative staff of

the company.
What I am going to transport?
The manager of the International Physical
Distribution (IPD) should start by knowing the
product:
Fragile ?
Perishable ?
Dimensions ?
Weight/Volume ?
Product cares ?
It is dangerous ?
Types of Load
• General • Bulk
Cargo Cargo
• No • Liquid
unitized (Ex. Oil)
• Solid
• Unitized (Ex.
Grains)
Types of Load
• No
• Unitized
unitized
• Ex.
• Palletiz
Break
ed
Bult
• Containerize
d
Types of Load
• Break Bulk – Callao – DP World.
What is packing?
The packing is a container or shell containing
products mainly for a temporary way, to
group units thinking in handling, transport
and storage.
What packing is required?
You must know the needs for packaging the
product, given by the same characteristics
and requirements of the buyer.
✓Product needs.
✓Customer needs.
✓Restrictions.
✓Transport contracts.
Transport
➢After analyzing the load to transport, the IPD
manager enters to the second phase. It is important
to know the main geographical routes, the load
terminals of each mode of transport to be used and
the types of services they provide.
➢Around 80% of world trade

is based on sea transport.
Supply Chain
Companies and organizations must be based on information, linked to the
whole world, and must be open.
The survival of most companies depends on smart decisions related to the

supply chain or "Supply Chain Management" (SCM).
The term supply chain comes from an image of how organizations are
linked. There is a network of suppliers or a number of chains.
The objective of managing the supply chain is to reduce uncertainty and

risks of it, and to have a positive impact in inventory levels, cycle times,
processes and service levels to final customers.
SUPPLY CHAIN
Supply Chain Management
The supply chain management includes the
planning and management of all procurement
activities, purchasing and logistics management.
It also includes coordination and collaboration
between channels, which can be suppliers,
intermediaries, logistics providers and customers.
In essence, SCM integrates supply and demand
activities inside and between companies.
Definition of SCM - Council of Logistics Management, 2003.
LOGISTICS AND SCM
Logistics typically refers to activities that occur

within the boundaries of a single organization
and Supply Chain refers to networks of companies
that work together and coordinate their actions to
deliver a product to market.
Traditional logistics focuses its attention on
activities such as procurement, distribution,
maintenance, and inventory management.
Supply Chain Management (SCM) acknowledges
all of traditional logistics and also includes activities
such as marketing, new product
development, finance, and customer service.
The Supply Chain is…
A sequence of companies engaged in activities that are
required to create and deliver a good or service to
consumers or industrial users.

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International Logistics II

Prof. Hugo Gamarra

50’s • Production, warehouse management,

80’s • Logistics between companies (Wal-Mart,

90’s • Global logistics between countries,

Logistics is the process of planning, implementing

Definition of the Council of Logistics Management

The Logistics Management is that part of SCM that plans,

Logistics definition - Council of Logistics Management, 2003.

In logistics is critical to control the flow of products and the

Its function is to fulfill contractual terms: Prices, times,

So international logistics, integrates four aspects:

2. International marketing: market research, market and segment

4. Information System: a tool for decision making that allows to locate

Identification: • Exportable • Destination

Inbound Logistics Outbound Logistics

SUPPLY PRODUCTION DISTRIBUTION AFTER SALES

SCM INTERNATIONAL PHYSICAL DISTRIBUTION

✓ in the RIGHT Place

✓ at the RIGHT Moment EXCELLENCE

✓ with the RIGHT cost

Preparation • Packaging and Marking

Unitarization • Palletization and containerization

Handling • In terminals and warehouses

Storage • In warehouses and private or public deposits

Transport • Throughout the distribution chain

Cargo Insurance • Risk / Policies

Documentation • Invoices, certificates, docs. payment, etc.

Distribution Management • It includes operator and administrative staff of

➢Around 80% of world trade

The survival of most companies depends on smart decisions related to the

The objective of managing the supply chain is to reduce uncertainty and

Definition of SCM - Council of Logistics Management, 2003.

Logistics typically refers to activities that occur

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