Professional Documents
Culture Documents
Business Logistics
Dr. LE THI DIEM CHAU
Dr. TRAN QUYNH LE
Dr. Nguyen Tien Dung
Assoc. Prof. Dr. Le Ngoc Quynh Lam
Industrial Systems Engineering Department
Mechanical Engineering Faculty
Ho Chi Minh City University of Technology (HCMUT)–VNUHCM
CHAPTER 7: Global Logistics
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Learning Objectives
• Describe the major similarities and differences between domestic and global logistics.
• Explain the effect of the changing legal and political environment in Europe, Asia, North
America, and South America.
• Discuss North American Free Trade Agreement and its effect on logistics.
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Global Business Logistics
• Important issues to consider:
• The longer the supply chain, the more cooperation and coordination is
required between production, marketing, purchasing and the logistics
management group.
• World trade is growing as fast logistics systems have had the effect
of shrinking the world, empowering competitive trade.
• Foreign trade has grown in tonnage and in value for the United
States and other nations.
• Lower labor costs from international outsourcing is a critical
component of the supply chain.
• Focused manufacturing fits well into an international logistics
strategy.
• Factor conditions
• Demand conditions
• Shipment Control
• High tech permits tracking & diversion of shipments.
Link to EVFTA
http://evfta.moit.gov.vn/?page=overview&category_id=fb203c7b-54d6-4af7-85ca-
c51f227881dd#:~:text=Hi%E1%BB%87p%20%C4%91%E1%BB%8Bnh%20g%E1%BB%93m%2017%20Ch%C6%B0%C6%A1ng,k%E1%BB%B9
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• Eastern Europe
• Maquiladora Operations
• Asian Emergence
• New Directions
• In the first three months of 2000, imports from Pacific Rim countries
accounted for 32.9 percent of total U.S. imports.
• Low labor and high quality characterizes these Asian nation’s raw
materials and finished goods.
• Air
• Motor
• Rail
Table 5-4
Major International Cargo Air Carriers
Global Transportation Options: Motor
• Global motor characteristics of speed, safety, reliability, and
accessibility basically the same as for domestic transportation.
• Container sizes are largely standardized into 20, 40, 45, 48, and
53 foot boxes.
• Exclusive arrangements are possible and the EMC may sell with
or without taking title to the goods.
• Operate under power of attorney from the shipper and can pay
any duty on freight.
• Ship agents are the local (port) agent of the ship operator when
the ship is in port.
• Selecting the wrong port can add miles, time, and therefore cost
to a shipment not appropriately routed.
Global Logistics