EVIDENCIA 1: WRITING AND ESSAY ABOUT LOGISTICS COSTS

WENDY YOULIETH LOZANO RODRIGUEZ

SERVICIO NACIONAL DE APRENDIZAJE SENA

TECNOLOGÍA EN NEGOCIOS INTERNACIONALES
ACTIVIDAD DE APRENDIZAJE 12
2019
 Application case to powdered panela-biopanela
products
Introduction

Business competitiveness makes it possible to ensure the survival of companies in the market in the
long term, in all segments to which they want to access with products, in the local and also
international context.

One of the strategies to achieve this competitiveness is the successful planning of 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
transport routes and proper selection of means and modes of transport.

The proper management of the international physical distribution translates into a correct flow of
materials and information flow, taking into account that the flow of materials requires prior
knowledge of all the activities necessary to ensure that the product arrives in optimal conditions at
its destination International and the flow of information requires that the company carry out its
logistics planning being consistent with the needs and trends of the demand in the global context.
It was considered important to apply all the concepts of the international physical distribution in a
specific company, in this case Biopanela, to demonstrate how through an adequate logistic planning
one can contribute to assertiveness in the making of logistic decisions and to the reduction of risks
present for the inadequate distribution of a product.

The objective that we propose with this article is to describe some important elements involved in
the international physical distribution and then show a case of application. The structure of the
document will be weighed according to these stated objectives, first the key concepts within the
international physical distribution will be presented with some referents in the subject and then the
results obtained in the investigation carried out for the Biopanela company will be shown, looking
for this Way a better understanding on the subject.

Definition

The international physical distribution is the logistic process that develops around placing a product
in the international market complying with the negotiated terms between the seller and the buyer.

4. Stages in the international physical distribution (DFI)

4.1 Establish the type and nature of the load

4.1.1 Types of cargo

General. It is composed of individual articles and can be: Conventional (non-unitized) 1 and unitary
2 release.

In bulk. It can be liquid, solid or dry.

4.1.2 Nature of the cargo

The nature of the cargo is classified into four types, namely:

Perishable Load It consists in general of food products that suffer normal degradation in their
physical, chemical and microbiological characteristics.

Fragile load. It refers to all merchandise that due to its characteristics could be damaged in loading
and unloading, movement in the transport and storage vehicle.

Dangerous load. This type of cargo is made up of products that have explosive, combustible,
oxidizing, poisonous, radioactive or corrosive characteristics and that can cause accidents, damage
to others such as the vehicle in which they move, people or the environment.

Loading of dimensions and special weights. This kind of cargo is usually very bulky and heavy
requiring special handling and presenting restrictions on the different means of transport.

4.2 Determine the preparation of the cargo, in terms of packaging, marking and unitization of the
different items

Packaging. It is important to identify three geographical paths in the international physical

distribution (DFI) that are: Exporting country, international transit and the importing country, for
this a different type of packaging is required than that used when shipments move within a single
country.

Marked. It is of great importance in the DFI, it is the way to identify each piece of the load. The
marking is related to the packaging of the goods.

Unitarization It means the grouping of one or more general cargo items, which are mobilized as an
indivisible unit of cargo. Palletization3 and containerization4 are the most common modalities of
unitization of cargo.

Conclusions

For Biopanela, the accompaniment of an expert company in foreign trade is absolutely necessary,
while achieving sufficient maturity for entering new markets, as evidenced throughout the article,
the hidden risks are numerous and poor management in International physical distribution can
cause serious financial consequences.
The physical distribution of the product represents a logistical challenge of great commitment since
not only a good management of international physical distribution and national transport is enough;
but, of a planning and synchronization of all the actors involved in the panela production chain (cane
planters, sugar mills, sprayers, transporters, customs agents and other intermediaries).

Alliances with similar companies and competitors represent an opportunity for the successful entry
of such products to international markets. The association should be explored.

The United States is a destination that offers multiple access alternatives, with frequencies and ports
located in the most strategic areas of the country, which can contribute to expanding the exportable
supply of Colombian entrepreneurs to this place.

Although panela today has substitute products such as sweeteners, recognizing that it is the second
rural agribusiness after coffee, leads us to conclude that it is a dynamic and representative sector
for the country's economy, which motivates us to conduct studies such as these that contribute to
increase the participation of this product in the international market.

The decisions in the international physical distribution not only involve important aspects such as
cost, there are variables that can guarantee the success or not of the international logistics
operation, such as: packing, packing and unitarization of the cargo, in addition to the full knowledge
of the type and nature of the cargo that will be exported and of all the physical conditions necessary
to guarantee that the product will reach its customer according to the agreed parameters.

Advantages of the logistics sector

Use of the distribution network. An efficient logistics system benefits from a large distribution
network of logistics operators, allowing them to be more powerful nationally and internationally.

Cost reduction. Thanks to the globalized distribution systems and the implementation of different
distribution systems such as cross-docking (direct distribution to the customer), transportation costs
can be reduced.

Efficient logistics management A good logistics management and that is carried out efficiently will
improve the quality of the service and the satisfaction of the final customers.

Possibility of urgent transport. A large company dedicated to logistics transport implements

advanced systems, such as urgent transport. In this way, due to the existence of a globalized world,
orders and merchandise can arrive very quickly from one country to another.

Information technology. The new technologies implemented in the logistics sector are an efficient
response to current needs in the field of Supply Chain and the generation of value-added services.

Disadvantages of the logistics sector

Coordination risks. When working in the logistics sector at an international level, it must be taken
into account that there may be coordination risks due to different factors such as language, time
zones, differences in working conditions or cultural changes.
Difficult access for SMEs. The logistics sector is usually covered by large companies that have
stronger distribution chains, so the access of small and medium enterprises to this field is quite
difficult.

Distance. The cost of transport of unit by product rises the greater the distance. In this way, if you
do not have strong distribution systems it is difficult to offer a competitive price for a product that
is at the other end of the planet.

Legal framework. Legislation for the transport or import and export of goods is of the utmost
importance, since the internal laws and customs policy can stop the entry or exit of a product.

WEBGRAPHY

https://www.iep.edu.es/ventajas-y-desventajas-del-sector-logistico/