CHAPTER 15

International Logistics and

Supply-Chain Management

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LEARNING
LEARNING OBJECTIVES
OBJECTIVES
• To understand the escalating importance of
international logistics 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

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International
International Logistics
Logistics Defined
Defined
• Materials Management
• Physical Distribution
• Systems Concept
• Total Cost Concept
• Trade-Off Concept

© PhotoDisc

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Figure
Figure 15.1
15.1 –– The
The International
International Supply
Supply Chain
Chain

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Supply-Chain
Supply-Chain Management
Management
• The Impact of International
Logistics

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

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The
The New
New Dimensions
Dimensions ofof
International
International Logistics
Logistics
• Air Shipping
• Airfreight

© PhotoDisc

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The
The New
New Dimensions
Dimensions ofof
International
International Logistics
Logistics
• Density

© PhotoDisc

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Figure
Figure 15.3
15.3 –– Loading
Loading aa Train
Train on
on aa Plane
Plane

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The
The New
New Dimensions
Dimensions ofof
International
International Logistics
Logistics
• Selecting a Mode of Transport
• Transit Time

© PhotoDisc

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Figure
Figure
15.4
15.4 ––
An
An
Advert
Advert
iseme
iseme
nt
nt for
for
Cut
Cut
Flower
Flower
ss

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The
The New
New Dimensions
Dimensions of of
International
International Logistics
Logistics
• Predictability
• Reliability
• Tracking
• Cost of
Transportation

© PhotoDisc

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

© PhotoDisc

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The
The New
New Dimensions
Dimensions ofof
International
International Logistics
Logistics
• Terms of Shipment and Sale
• Incoterms

© PhotoDisc

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Figure
Figure 15.5
15.5 ––
Selected
Selected Trade
Trade
Terms
Terms

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International
International Inventory
Inventory Issues
Issues
• Inventory Carrying Costs
• Just-In-Time Inventory
• Inventory systems
• Order Cycle Time
• Customer Service Levels
• Inventory as a Strategic Tool

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International
International Packaging
Packaging Issues
Issues
• Packaging must get the merchandise to the
destination in a safe, maintainable, and
presentable condition
• Packaging That May Be Adequate for
Domestic Shipping May Not Be Adequate
for International Shipping

© PhotoDisc

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Figure
Figure 15.6
15.6 –– Stresses
Stresses in
in Intermodal
Intermodal Movement
Movement

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International
International Storage
Storage Issues
Issues
• Storage Facilities
• Location Decision
• Special Trade Zones
• Foreign trade zones
• Maquiladoras
• Special economic zones

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Management
Management of
of International
International
Logistics
Logistics
• Centralized Logistics Management
• Decentralized Logistics Management
• Outsourcing Logistics Services
• One-Stop logistics

© PhotoDisc

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Logistics
Logistics and
and the
the Environment
Environment
• Reverse Distribution

© PhotoDisc

© 2002 Thomson Learning, Inc.