DNAM 4A

Logistics and Distribution

“TRANSPORTATION MODES”

Teacher’s name:
Claudia Rivera García

Team members:
Gonzalez Salmeron Carlos Alejandro ID: 3249
Macias Garcia Gabriela ID: 3148
Estrada Amador Claudia Daniela ID: 3069
Ramirez Pérez Claudia Itzel ID: 3259
Quiroz López Vanessa ID: 3169
Rivera Moreno Mónica ID: 3218

Delivery date:
March 06th, 2022
Index
Introduction .......................................................................................................................... 1
Incoterms Practices ............................................................................................................ 1
Incoterms Practice I ........................................................................................................... 2
Incoterms Practice 2 .......................................................................................................... 3
Individual Conclusions ....................................................................................................... 4
Claudia Daniela Estrada Amador: ..................................................................................... 4
Carlos Alejandro Gonzalez Salmeron: .............................................................................. 4
Gabriela Macias Garcia: .................................................................................................... 5
Vanessa Quiroz López: ..................................................................................................... 6
Claudia Itzel Ramírez Pérez: ............................................................................................. 6
Mónica Rivera Moreno:...................................................................................................... 7
Introduction

As we have been seeing during this lesson, there are so many elements that are
part of the extensive topic that is the logistics and distribution of a product or service,
and the transportation modes are a very important one.

Within logistics management, transport is of utmost importance, as it intervenes in

different processes, such as production and sale. Currently, there are different
modes and means of transport that companies can use to successfully move their
goods.
The modes of transport can be air, sea, land, rail, among others. The means, on the
other hand, refer to the vehicles necessary for transport according to the mode
chosen (plane, ship, truck and rail).

Transport in companies is what will determine their efficiency, it’s what ensures that
the merchandise reaches the customer at the right place and time. We can say that
the success of a company lies in transportation, since this is what makes the goods
go through all the stages of the distribution chain until it reaches the final consumer.

Incoterms Practices

The main purpose of this activity is to develop the different elements that are
required in the process of transporting a product, and to determine who is
responsible for each action. Both case studies, Incoterms Practice 1 and Incoterms
Practice 2, are presented in their respective chart below (as well as in the following
document attached):

Lección 2. Modos de Transporte

1
Soccer, S.A. de C.V. located in Aguascalientes, Mexico, has quoted for Russia a
shipment of 30,000 shirts for the World Cup, destined to thousands of fans in Saint
Petersburg City. The total and individual costs of the entire transportation process
are shown in the table:

Incoterms Practice I
Extend FAS CIF Saint
Quantit Unit ed FOB Tampic CFR Saint Petesbur
Expenses y Cost Cost EXW Tampico o Petesburg g
$90,00 $90,00 $90,000. $90,000. $90,000.0
Value in factory 30,000 $3.00 0.00 0.00 00 00 $90,000.00 0
$120.0 $120.0
Packing expenses 15.00 $8.00 0 0 $120.00 $120.00 $120.00 $120.00
International
Transportation (from
Aguascalientes to $200.0 $200.0
Tampico) 1 0 0 $200.00 $200.00 $200.00 $200.00
Port expenses per $180.0
ton 6.00 $30.00 0 $180.00 $180.00 $180.00
$100.0 $100.0 $100.0
Customs Broker Fee 1 0 0 0 $100.00 $100.00 $100.00 $100.00
Bill of Lading issue
in origin 1 $25.00 $25.00 $25.00 $25.00 $25.00 $25.00 $25.00
Freight from
Tampico (México) to
Saint Petersburg $1,600. $1,600.
(Russia) 1 00 00 $1,600.00 $1,600.00
Customs
Warehousing in $250.0 $250.0
origin expenses 1 0 0 $250.00 $250.00 $250.00 $250.00
Documents
management in
origin 1 $35.00 $35.00 $35.00 $35.00 $35.00 $35.00 $35.00
International
Transportation $200.0 $200.0
Insurance 1 0 0 $200.00
$92,71 $90,28 $90,910. $90,730. $92,710.0
0.00 0.00 00 00 $92,510.00 0

Unit price per shirt $3.09 $3.01 $3.03 $3.02 $3.08 $3.09

2
Typical Dolls, S.A. de C.V. located in Aguascalientes, Mexico, has quoted for New
Zealand a shipment of 100,000 typical dolls, destined to an international fair that will
take place in Wellington, New Zealand with the following data:

Incoterms Practice 2
FOB FAS CIF
Unit Extend Manzanil Manzani CFR Wellingt
Expenses Quantity Cost ed Cost EXW lo llo Wellington on
$1,500
$1,500, ,000.0 $1,500,0 $1,500,0 $1,500,000. $1,500,0
Value in factory 100,000 $15.00 000.00 0 00.00 00.00 00 00.00
$175.0
Packing expenses 25.00 $7.00 $175.00 0 $175.00 $175.00 $175.00 $175.00
International
Transportation
(from
Aguascalientes to $280.0
Wellington) 1 0 $280.00 $280.00 $280.00 $280.00 $280.00
Port expenses per
ton 20.00 $25.00 $500.00 $500.00 $500.00 $500.00
Customs Broker $100.0
Fee 1 0 $100.00 $100 $100 $100 $100 $100
Bill of Lading issue
in origin 1 $20.00 $20.00 $20.00 $20.00 $20.00 $20.00 $20.00
Freight from
Manzanillo (México)
to Wellington (New $1,300. $1,300. $1,300.0
Zealand) 1 00 00 $1,300.00 0
Customs
Warehousing in $200.0
origin expenses 1 0 $200.00 $200.00 $200.00 $200.00 $200.00
Documents
management in
origin 1 $33.00 $33.00 $33.00 $33.00 $33.00 $33.00 $33.00
International
Transportation $350.0
Insurance 1 0 $350.00 $350.00
$1,500
$1,502, ,328.0 $1,501,3 $1,500,8 $1,502,608. $1,502,9
958.00 0 08.00 08.00 00 58.00

Unit price per doll $15.03 $15.00 $15.01 $15.01 $15.03 $15.03

3
Individual Conclusions

Claudia Daniela Estrada Amador:

Most of the companies need to send their products in order to sell them in a different
location. Nevertheless, it is not just to select a store or a truck and then export your
product and mail it. There’s a lot of work behind it for all companies that require them
to deliver a product. So as to estimate the cost of the product they require to send,
they based on Incoterms rules, which delegates the obligations based on the kind
of transportations will be used, so that the product is delivered on time and in optimal
conditions. So, by agreeing on an Incoterms rule and incorporating it into the sales
contract, the buyer and seller can achieve a precise understanding of what each
party is obliged to do, and where responsibility lies in event of loss, damage or other
mishap.

Each product needs different kinds of transportation depending on: the material, the
quantity, urgency, and venue of destination. There are different stages for the
products to be sent, and each stage might require a different price depending on the
point of delivery. This also helps the companies to settle a price considering the cost
of delivery for the selling point.

Carlos Alejandro Gonzalez Salmeron:

In conclusion, it is important to know that although the choice of the means that will
make up the transport service are part of the Strategic Plan, transport management
must make decisions on a day-to-day basis in relation to the mode, size and
shipping costs, that is, even make decisions outside the general transport plan that
involve using a private and/or subcontracted fleet, in the form of individual means or
making use of intermodal transport. Transport is par excellence one of the
fundamental processes of an organization's logistics strategy, this component is of
priority in the design and management of a company's logistics system, since it is
usually the individual element with the greatest weight in the consolidation of the
logistics costs of most companies.
I learned that Incoterms is to facilitate the exchange of goods, through uniform rules
to guide the parties involved in international trade. The conditions of delivery of the
merchandise. The point of delivery of the merchandise. The seller will pay all the

4
expenses generated by the transport until the merchandise is delivered at the
agreed place. The seller delivers the merchandise when he makes it available to the
carrier designated by him and pays for the transport to destination, but the buyer
assumes the risks and costs from that moment.

Gabriela Macias Garcia:

When talking about transporting goods internationally, there is something very
important to consider within this, which are the incoterms. The main objective of
these is to facilitate the exchange of goods, since they facilitate and allow us to
establish a "deal" with who will transport the goods and at what moment the
responsibility is attributed to each of the parts involved.
They serve to facilitate international trade as they are rules of uniform interpretation
that provide security and certainty in the application of what is negotiated thereby
avoiding misunderstandings. The incoterms serve to delimit the place where the
goods will be delivered, they also stipulate who will be responsible for paying all the
expenses that are developed at the time of moving the merchandise. It is important
to know the incoterms well to choose the most appropriate depending on whether
the company is buying or selling.

As I understand it, from time to time adaptations are made to the incoterms to
improve them, they form a fundamental part of international trade and the only thing
they seek is to greatly benefit and facilitate said process so that the parties involved
do not have any inconvenience, such innovations seek to adapt to each of the needs
that may arise.

5
Vanessa Quiroz López:
People who run a business often are unsure of what to do when their business is
growing, when orders are no longer just local and the distribution costs increase. It’s
important to know how to choose the most convenient way so that your product
reaches the right place, in the right hands. The modes of transport offer several
alternatives that can adapt to the needs of a company and its customers. With the
right resources and the right plan, a business can be very successful.
The transportation and distribution of merchandise is no longer just about moving
products from one place to another, but rather a strategic process that seeks to
reduce logistics costs and increase buyer satisfaction. It has happened to all of us
that we have ordered a product from a store and it doesn’t arrive when it should
arrive, it’s an unpleasant situation; if deliveries are not in time or the conditions to
deliver the product are not suitable, customers will be dissatisfied. Consequently,
the image and reputation of the brand will be affected.
So you have to take care of every aspect in the logistics of a company, always
thinking about what is best for it and for the customer, to make the purchase a good
experience.

Claudia Itzel Ramírez Pérez:

For industries, logistics is a very important aspect/factor since, for example, for
world-renowned international companies such as Apple, Honda and even Amazon,
logistics has a very important value since it depends on this to be able to distribute
its products. in the best possible way to avoid setbacks in deliveries to the customer
or the loss of products in the course of shipment.
For this, there are different means to transport the merchandise, for example, by air,
land or sea, however there are Incoterms that are internal terms used by companies
for the correct distribution of trademarks, taking into account costs, responsibilities
and risks between the buyers, sellers and the people in charge/responsible for
distribution.
Incoterms work according to the place where the product is going to enter, for
example, for a national company such as "La costeña" it imposes few incoterms
since the delivery points are "close", while for international companies such as
example "Adidas" the intercoms used are more since there are many delivery points
in the world.

6
Mónica Rivera Moreno:

International logistics is in charge of everything that has to do with sending products

or goods to different parts of the world, always looking for the most feasible when
trying to handle many products, the most effective to transport them, such as: means
of transport and resources. financial. However, there is a very important
characteristic to determine how shipments will be made and the correct choice of
financial and transportation means, there is something called Incoterms, which are
international terms of commerce. These ensure that the logistics part is always more
structured and that the two parties are in an agreement to know the means of
transport and how the shipments of the goods will be made.

These are considered the most important when sending merchandise to another
country so that the buying party is sure of their product and on the other hand, the
one who sells promises that it will arrive, these terms are summarized in 3 letters
that are too important. By doing these two examples of the two different scenarios,
I learned that Incoterms and their monetary value is very important, that takes into
account a few factors such as weight, volume of products in cubic cm are taken into
account, and that depending on the expenses of various things is how You can know
if it is convenient for the company or person to make those terms in a monetary
matter. The right calculation of the Incoterms is very important for the decision of
the both parties, since they had to reach an agreement so the logistics can take
place properly without hesitation, confusion, disagreement or any type of
misunderstanding.