The Challenges Of Global Logistics

Dell is a multibillion-dollar corporation that helps empower individual and communities with their innovative technology. Dell requires that all suppliers (domestically and globally) comply with the laws and regulations where the suppliers conduct business. Using global suppliers, Dell will need to understand the logistics to from the foreign suppliers to the end customer’s doorsteps. This paper will advise the factors impacting Dell’s transportation needs. It will also recommend the logistic methods within the local region, domestic, and international shipments. Last, this paper will summarize Dell’s strategic requirements of global logistic. Global logistics will also explain what Dell will need to

Globalization is a growing part of everyday businesses. This is the process of interaction and integration among people, companies, and governments of different nations. With the world of online retail, the buying and selling to one person to another has grown drastically. There has also been a substantial change in technology and what we as people can do in today’s time rather than in the past. Amazon is a huge retail giant and buying and selling items is one of their key functions. The impact made on Amazon is nothing but an advantage. Amazon currently is the 56th largest company in America by market capitalization. Being one the largest retailer around, 15th in the nation at that, Amazon has made a name for themselves. Amazon has made some very substantial growths and with these opportunities they face they can make even more advances in the future. (Globalization 101, 2016)

Amazon focuses on global reach, putting customer first,, and extensive selection of products through its vision which is “To be Earth’s most customer-centric company, where customers can find and discover anything they might want to buy online” (Gregory 2016).

Flagler Global Logistics, a logistics service provider, created a logistics center in South Florida that has and continues to bring a significant improvement to the transportation industry in this area of the country (Urban Land Institute, 2012). The main goal of this infrastructure project is to provide companies engaged in national and international trade with a large facility that can be used to transfer merchandise to and from this region by road, rail, ocean, and air (Urban Land Institute, 2012). The South Florida Logistics Center is strategically located close to the Miami International Airport, the Port of Miami, the Palmetto Expressway, and the Florida Turnpike and is connected by railway to an intermodal transfer facility located in the Port of Everglades (Urban Land Institute, 2012). Companies like The Florida East Coast Railway, CSX, Norfolk Southern, FedEx, Seaboard Marine and others will benefit the most from this project because it will improve their ability to transfer goods in and out of the region (Urban Land Institute, 2012).

According to the company’s Vice President of International Retail, approximately half of Amazon’s revenue comes from outside the United States. For Amazon, global strategy means delivering a consistent customer experience based on their original vision: allow customers to discover the products they want to buy at the lowest price possible. It has its presence in many countries. Amazon has retail websites for many countries such as US, Canada, UK, France, Italy, Germany, Spain, Brazil, China, and Japan (see “Amazon Map” below) with international shipping to certain other countries for some of its

Greating shipping is a comprehensive logistics service suppliers, focus on transport solution for the manufacturing and retail industry. The company has a wealth of experience in the logistics transportation more than 20 years, plenty of logistics resources to meet the logistics needs of customers. Company has been providing logistics solutions for your needs, make sure to keep competitiveness in the field of business. Company attaches great importance to create and maintain a long-term cooperative partnership, through expanding global network support. With the high quality service to ensure every step of the goods for a smooth transition. Huge global network of company cooperate with a wide range of cost savings and value-added service tracking

Amazon’s major competitors are divided in two parts. The first part is physical stores such as Walmart or Target. The second area of competition is through the online market eg; EBay and BestBuy. As opposed to Amazon, customers in a physical store could have more comprehensive experience, especially for specific products like clothes and electronic devices. Some customers need to be able to see and try the product themselves before feeling comfortable enough to purchase it. Secondly, although Amazon has two day free shipping for its Amazon Prime, people are required pay a yearly membership fee. People can also choose one day shipping and are charged higher shipping fees. Physical stores still have more advantages than Amazon in this aspect. Customers can directly buy what they want in the store and avoid obnoxious shipping fees.

Amazon.com’s supply chain management applications communicate in real time when an order is placed and assigns shipping warehousing and cost based on location (Bacheldor, 2004). When the average company ships internationally the response time is typically in excess of 14 days and the cost to expedite takes any potential savings from purchasing online go away.

Also the payment systems are functional and reliable. Customers can contact Amazon’s customer service and will get thorough feedback. For outbound logistics, there is a fulfilment centre in the UK that is close to the motorways, which makes it easier for stock that is ordered in being able to be ready to dispatch to the customers.

Traditionally large retail chains such as Amazon own their own distribution centers. This minimizes their overheads, by cutting out the middle man. You will tend to find that large retail chains have more than one distribution center. They tend to place them strategically throughout the countries that they ship to. Small independent retailers however cannot afford the overhead costs of owning their own distribution centers. This means they have to go to third party centers which charge them a much smaller overhead in comparison. This is because these third party services tend to serve more than one small retailer. Meaning that the overhead costs are split between multiple business's rather than just one.

Business Strategy. If a company wants to have competitive advantages in the global market, it’s essential to have favorable business strategies. Amazon operates all over the world, but focuses especially in the west in countries such as United States, and Canada. When other region customers shop on the website, they will see a lot of products sell from the country of origin. It means the transportation will cost higher price and longer time than Alibaba(Help & Customer Service). In recent year, Alibaba opened the Taobao concentrated transportation. This department decreases the transportation fees as much as possible.

The general environment factors are most likely to have a very strong impact on any business entity. There are several general environment factors and their impact on any form of a business. These include economic, legal, political, technological, and socio cultural factors. The business has to prepare for the foreseen as well as unforeseen general environment factors that are most likely to affect it either positively or negatively. These factors can impact the business presently or in future. What then are some of the major general environment factors and their impact on Mainfreight - Global Supply Chain Logistics in the next 10-15 years? This paper evaluates the first three aforementioned general environment factors and how

There are two E-commerce scenarios that have been looked at that face logistical issues in Australian organisations of Big W and Oz Hut and through the analysis of these organisations we will be looking into the systems used and how they are dysfunctional to these companies. Also exploring better ways to improve order fulfilment, third party logistics and the growing online retailing industry of changes needed to enhance competitiveness. With transportation having a substantial impact on the way the e-commerce trade is facilitated been a key element of building trust between sellers and buyers. (Commission, 2012)

This is a research project aimed at four different topics within e-commerce and the dynamic landscape of logistics within this emerging field. I will first be focusing on current landscape of e-commerce. Secondly the focus will be shifted to a global perspective and the difference of markets based on region. Thirdly I will cover the future trends of e-commerce, and the differences that we may see. Finally, I will present data on select countries and how they are affected by e-commerce currently and the changes that we can expect to see in the future. While researching this broad and developing topic, I have found that there are a handful of takeaways that can be seen in the entirety of this paper:

In developed countries the portion of revenues from logistics sector is about 13-14%, while in Kazakhstan the number is only 8%. The number can be much higher since our country lies in the heart of Eurasia and many trade roads are passing through Kazakhstan. This opportunity can be used for generating wealth for the country and getting more trade partners. The development of logistics will also cut the costs of the production of domestic producers which will lead the Republic to the new stage of competitiveness in the world market.