You are on page 1of 25

CHAPTER 15 International Logistics and Supply-Chain Management

Text by Profs. M. Czinkota, I. Ronkainen, and M. Moffett Multimedia Presentation by Prof. Milton Pressley The University of New Orleans
milton.pressley@uno.edu

© 2002 Thomson Learning, Inc.

LEARNING OBJECTIVES
• •
To understand the escalating importance of international logistics and supply-chain management as crucial tools for competitiveness To learn about materials management and physical distribution To learn why international logistics is more complex than domestic logistics To see how the transportation infrastructure in hose countries often dictates the options open to the international manager To learn why inventory management is crucial for international success
© 2002 Thomson Learning, Inc.


• •

. Inc.International Logistics Defined • Materials Management • Physical Distribution • Systems Concept • Total Cost Concept • Trade-Off Concept © PhotoDisc © 2002 Thomson Learning.

Supply-Chain Management • Supply-chain management © PhotoDisc © 2002 Thomson Learning. . Inc.

1 – The International Supply Chain © 2002 Thomson Learning.Figure 15. Inc. .

.Supply-Chain Management • The Impact of International Logistics © PhotoDisc © 2002 Thomson Learning. Inc.

The New Dimensions of International Logistics • International Transportation Issues • Transportation Infrastructure • Ability of Modes • • • • • • • Logistics platform • Land bridges or sea bridges • Intermodal movements • Ocean Shipping Linear service Bulk service Tramp service Container ships Roll-on-roll-off (RORO) Ports © PhotoDisc © 2002 Thomson Learning. Inc. .

The New Dimensions of International Logistics • Air Shipping • Airfreight © PhotoDisc © 2002 Thomson Learning. . Inc.

.Figure 15.2 – International Airfreight 1960-2000 © 2002 Thomson Learning. Inc.

The New Dimensions of International Logistics • Density © PhotoDisc © 2002 Thomson Learning. . Inc.

.3 – Loading a Train on a Plane © 2002 Thomson Learning.Figure 15. Inc.

Inc.The New Dimensions of International Logistics • Selecting a Mode of Transport • Transit Time © PhotoDisc © 2002 Thomson Learning. .

4 – An Advertisement for Cut Flowers © 2002 Thomson Learning.Figure 15. Inc. .

.The New Dimensions of International Logistics • Predictability • Cost of • Reliability • Tracking Transportation © PhotoDisc © 2002 Thomson Learning. Inc.

Inc.© 2002 Thomson Learning. .

The New Dimensions of International Logistics • Noneconomic Factors • Export Documentation and Terms • Bill of lading • Straight bills of lading • Shipper’s order • Commercial invoice • Freight forwarders • Preferential policies © PhotoDisc © 2002 Thomson Learning. . Inc.

Inc.The New Dimensions of International Logistics • Incoterms • Terms of Shipment and Sale © PhotoDisc © 2002 Thomson Learning. .

Inc. .Figure 15.5 – Selected Trade Terms © 2002 Thomson Learning.

. and freight (CIF) • Carriage paid to (CPT) • Carriage and insurance paid to (CIP) • Delivered duty paid (DDP) • Delivered duty unpaid (DDU) © PhotoDisc © 2002 Thomson Learning.The New Dimensions of International Logistics • Ex-works • Free carrier (FCA) • Free alongside ship (FAS) • Free on board (FOB) • Cost and freight (CFR) • Cost. insurance. Inc.

. Inc.International Inventory Issues • Inventory Carrying Costs • Just-In-Time Inventory • Inventory systems • Order Cycle Time • Customer Service Levels • Inventory as a Strategic Tool © PhotoDisc © 2002 Thomson Learning.

International Packaging Issues • Packaging must get the merchandise to the • destination in a safe. and presentable condition Packaging That May Be Adequate for Domestic Shipping May Not Be Adequate for International Shipping © PhotoDisc © 2002 Thomson Learning. . maintainable. Inc.

Figure 15.6 – Stresses in Intermodal Movement © 2002 Thomson Learning. . Inc.

Inc.International Storage Issues • Storage Facilities • Special Trade Zones • Location Decision • Foreign trade zones • Maquiladoras • Special economic zones © PhotoDisc © 2002 Thomson Learning. .

Inc.Management of International Logistics • Centralized Logistics Management • Decentralized Logistics Management • Outsourcing Logistics Services • One-Stop logistics © PhotoDisc © 2002 Thomson Learning. .

Inc.Logistics and the Environment • Reverse Distribution © PhotoDisc © 2002 Thomson Learning. .