DISTRIBUTION MANAGEMENT MODULE

Final Period
Prof. Violeta R. Salapare
First Semester SY 2023-2024

ROSILLA, HEARA KEITH L.

Asynchronous Activity: NOVEMBER 20, 2023

Make research on the following topics kindly indicate your references: (50 points)

Global Distribution and International Logistics

 Challenges of managing global distribution networks

 Customs, regulations, and documentation in international logistics
 Cross-border transportation and risk management

Global distribution systems act as a bridge between vendors like hotels and airlines and service
providers like online travel firms. While the majority of large GDSs are linked to major travel
agencies, smaller, less priced GDSs may only provide a limited number of travel companies. For
example, if you travel from one country to another, you must book an airline ticket. In this case, the
airline, the service provider, uses a gds system to book a ticket for you. On the Other hand
Transporting goods via the global supply chain, including worldwide distribution and cross-border
shipping, is referred to as international logistics. Efficiently delivering goods to customers
worldwide is the aim of international logistics.

There are several challenges of managing global distribution.

1. Supply management-every Supply management involves the optimization and monitoring
the flow of goods, information, finances between design, production, transportation and
distribution touch points. This is also inherently variable that causes for it to escalate
unpredictable disasters or turbulence with the distribution system.
2. Currency fluctuations- when conducting transactions with other countries exchange rates is
part of the Distribution and it’s continually fluctuate due to supply and demand. This one
should be part of the risk management of the company when they have Global distribution
in order for the company to cope up with this.
3. Preservation of intellectual property - Preservation of intellectual property refers to the
safeguarding and protection of creations of the mind, such as inventions, literary and
artistic works, designs, symbols, names, and images used in commerce. Intellectual property
(IP) is a valuable asset for individuals, businesses, and societies, and preserving it involves
DISTRIBUTION MANAGEMENT MODULE
Final Period
Prof. Violeta R. Salapare
First Semester SY 2023-2024
legal and practical measures to prevent unauthorized use, reproduction, or exploitation by
others.
4. Compliance with international regulations and standards refers to the adherence of
individuals, organizations, or governments to the established rules, guidelines, and norms
that are recognized and accepted at an international level. These regulations and standards
are often developed and agreed upon by international bodies, organizations, or treaties to
ensure consistency, safety, quality, and ethical practices across borders.

International logistics involves the movement of goods and materials across borders, and
navigating through customs, regulations, and documentation is a critical aspect of this process.
Here's an overview of each:
1. Customs Procedures:
Definition: Customs procedures involve the declaration and clearance of goods at the
border, ensuring compliance with the importing country's regulations.
Key Components:
Customs Declaration: Detailed information about the nature, quantity, and value of the
goods being imported/exported.
Duties and Taxes: Customs duties and taxes may apply, and payment is often required for
the release of goods.
Customs Inspection: Customs authorities may inspect shipments to verify the accuracy of
declarations and ensure compliance.
2. Regulations in International Logistics:
Import/Export Regulations: Countries have specific regulations governing the import and
export of goods, including restrictions on certain products, licensing requirements, and
compliance with international trade agreements.
Sanitary and Phytosanitary (SPS) Regulations: These regulations ensure that products meet
health and safety standards, especially in the case of food and agricultural products.
Security Regulations: Security measures are in place to prevent illegal activities, including
smuggling and terrorism. Compliance often involves adhering to secure packaging standards
and providing advance cargo information.
3. Documentation in International Logistics:
Commercial Invoice: A detailed document specifying the type, quantity, and value of goods.
It is used for customs clearance and to determine duties and taxes.
Packing List: Details the contents of each package within a shipment, including weight,
dimensions, and packaging type.
Bill of Lading (B/L): A document issued by a carrier to acknowledge receipt of goods and
serves as a contract of carriage. It is essential for claiming goods at the destination port.
DISTRIBUTION MANAGEMENT MODULE
Final Period
Prof. Violeta R. Salapare
First Semester SY 2023-2024
Certificate of Origin: Confirms the country of origin of the goods and may be required to
determine eligibility for preferential trade agreements.
Customs Declaration Form: A detailed form providing information about the goods being
imported or exported.
Insurance Certificate: Provides evidence of insurance coverage for the goods during transit.
Letter of Credit: A financial document issued by a bank, ensuring payment to the exporter if
specific conditions are met.
4. Challenges in International Logistics:
Complexity: Navigating different customs procedures, regulations, and documentation
requirements across various countries can be complex and time-consuming.
Compliance Risks: Non-compliance with regulations can lead to delays, fines, and even
seizure of goods.
Language and Cultural Differences: Dealing with documentation in multiple languages and
understanding cultural nuances adds an extra layer of complexity.
Efficient management of customs, regulations, and documentation is crucial for the smooth flow of
international logistics, ensuring that goods reach their destination in compliance with legal
requirements and without unnecessary delays or disruptions. Many businesses engage customs
brokers or freight forwarders to assist in navigating these complexities.

Cross-Border Transportation

Cross-border transportation refers to the movement of goods or people across international

boundaries, involving different modes of transportation such as road, rail, air, and sea.

Customs Clearance: The process of meeting the legal requirements and documentation needed for goods to
enter or leave a country.

Infrastructure: The quality and capacity of transportation infrastructure, including roads, ports, and border
crossings, impact the efficiency of cross-border transportation.

Regulatory Compliance: Adherence to regulations and standards governing transportation, safety, and
environmental concerns.

Risk Management in Cross-Border Transportation

Identification of Risks: Understanding and identifying potential risks is the first step. Risks may include delays
at border crossings, regulatory changes, security threats, natural disasters, and disruptions to the supply
chain.
DISTRIBUTION MANAGEMENT MODULE
Final Period
Prof. Violeta R. Salapare
First Semester SY 2023-2024
Assessment of Risks: Assessing the impact and likelihood of identified risks helps prioritize them and allocate
resources for mitigation strategies.

Mitigation Strategies:

Insurance: Purchasing appropriate insurance coverage can help protect against financial losses due to
damage, theft, or other unforeseen events during transportation.

Supply Chain Visibility: Utilizing technology for real-time tracking and monitoring of shipments provides
visibility into the supply chain, allowing for timely intervention in case of disruptions.

Diversification: Diversifying transportation routes and modes can mitigate the impact of disruptions in a
particular region or mode of transportation.

Compliance Management: Keeping abreast of changes in regulations and ensuring compliance helps avoid
delays and penalties.

Collaboration with Partners: Establishing strong partnerships with logistics providers, customs brokers, and
other stakeholders can enhance coordination and information sharing.