International Logistics Essay example

1334 Words Oct 15th, 1999 6 Pages
Logistics is the designing and managing of a system in order to control the flow of material throughout a corporation. This is a very important part of an international company because of geographical barriers. Logistics of an international company includes movement of raw materials, coordinating flows into and out of different countries, choices of transportation, cost of the transportation, packaging the product for shipment, storing the product, and managing the entire process. The concept of logistics is fairly new in the business world. The theoretical development was not used until 1966. Since then, many business practices have evolved and logistics currently costs between 10 and 25 percent of the total cost of an international …show more content…
One of the largest obstacles of international logistics is geography. The distance and manner materials must be shipped is the most important step in international logistics. Transportation infrastructures vary greatly throughout the world. International companies must consider all options before starting any operation in another country. Perhaps a country could have easy access by ship, but no way to transport the goods once on the ground. All available routes into and out of the country must be determined in order to judge the feasibility of the operation. Ground shipments are excellent for neighboring countries such as the U.S. and Mexico. Normally, shipping across ground borders is fairly uneventful and is usually the best method if time and distance allow it. Ocean shipments are divided by three types of service: liner, bulk, and tramp. Liner service is regularly scheduled passages on assigned and established routes. This ship routes are similar to taking a plane somewhere. This service is used more for one-time or irregular shipments. Bulk service is contractual for a prolonged period of time. This service is for those needing to ship large quantities on a fairly regular basis. Tramp service is for irregular routes and scheduled as needed. This service would be to destinations liner service normally does not operate, and for large quantities. The
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