PRESENTATION ON DOMESTIC AND

GLOBAL LOGISTICS

GROUP 6
Members

AKANKWATSA Oliver - 2017/HD10/172U

KWAGALA Rebecca - 2017/HD10/1021U
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OLUPOT Simon Peter - 2017/HD10/1989U
 QUESTION 6
a) Distinguish between domestic and global
logistics.
b) Discuss the driving forces for the
internationalization of logistics and the
related challenges.

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Logistics refers to ‘‘planning, implementing, and
controlling the physical flows of materials and finished
goods from point of origin to point of use to meet the
customer needs at a profit’’ Philip Kotler
Globalisation is a general term used to designate the
growing process of international economic integration,
covering the significant rise in trade of goods and
services and increasing cross-border factor mobility
(Manteu, 2008).

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 Definition of Global logistics
Is the design and management of a system that
directs and controls the flows of materials into,
through and out of the firm across national
boundaries to achieve its corporate objectives at
a minimum total cost (Bowersox, Closs &
Cooper, 2010).

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 Definition of Global logistics
Global logistics is a business practice where
firms source for materials from one or more
than one country, manufacture products in
another country and sale finished products in
many countries (Group definition)

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 Definition of International Logistics
International logistics refers to the
management of the firm’s supply chain
involving the movement of resources across at
least one international border (Group
definition)

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Distinction between Domestic and Global logistics
 
Domestic Global logistics
Performance Shorter Longer
cycle (due to greater distances, customs
clearance, more intermediaries, more
use of slow sea trave)
Documentation Simple Complex
(for customs, banking, and foreign
exchange clearance requirements)
Alliances Few (3PL firm) Multiple
(on a global front with logistics service
providers, distributors, and
manufacturers)
Information Multiple channels, varied standards,
Simple alternative languages
flow

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Adopted from Sople (2007)
 Distinction between Domestic and
Global Logistics
• Distance involved
• Exchange rate fluctuation
• Transportation
• Currency used
• Management
• Cost involved
• Supply chain relationships
• Language used

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 Drivers of international logistics
• Globalization
• Information and communication technologies
• Trading blocks
• Free trade zone
• Increased containerization
• Market drivers
• Cost drivers

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 Drivers of international logistics
• Increased dispensation of production
• Lower prices
• Improved trade facilitation i.e. custom house brokers
• Improved cargo packaging
• Transport de-regulation
• Economic growth
• Insufficient domestic capacity/Obtain raw
materials
• Reciprocal trading
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 Challenges of internationalization of logistics

• Extra documentation
• Fire and sea peril
• High transport and insurance costs
• Different cultures
• Demand variation
• Poor information availability
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 Challenges of internationalization of logistics

• Market barriers
• Transit damage /breakage
• Poor and differing infrastructure
• Time and distance
• Regulatory problems

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 References
Aswathappa, K. (2008). International Business (2nd ed.). New Delhi, India: Tata
McGraw-Hill Education. ISBN: 9780070221642.
Branch, A. (2009). Global Supply Chain Management and International
Logistics (1st ed.). London, United Kingdom: Routledge. ISBN: 0415398444.
Chunnan, J., & Yue, T. (2009). Problems and Challenges of Global Sourcing: A
Study of Chinese Manufacturing Enterprises. Master thesis within Business
Administration: Jonkoping.
Enarsson, L. (2006). Future Logistics Challenge (1st ed.). Kose, Denmark:
Copenhagen Business School Press. ISBN 87-630-0170-5.
Jayem Logistics (nd). Difference Between Domestic and International Logistics
. Retrieved from
http://www.jayemlogistics.in/difference-between-domestic-and-internation
al-logistics/

Manteu, C. (2008). Economic Effects of Globalisation: Lessons from Trade

Models. Economic Bulletin. Portugal.
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