implementing, and controlling the physical and information flows concerned with materials and final goods from the point of origin to the point of usage.' International logistics involves the management of these resources in a company's supply chain across at least one international border.
It may sound complicated, but logistics is basically the management of stuff, and information regarding the stuff, from one place to another until it reaches the consumer. The logistical management of physical items may include integration of information (such as inventory databases and shipping schedules), material handling, production,…show more content… While there are some that would argue that there is not much difference between domestic and international logistics, there are some substantial differences which are often characterized as the “four Ds” –demand, distance, documentation, and diversity. The demand is greater, the distances are longer, the documentation is more extensive, and there is substantial diversity in requirements and cultures.
Given these differences, there are some specific challenges that global logistics managers must consider. Figure 1, adapted from Helferich and Cook, illustrates some of the generic global and domestic institutions critical in supply chain logistics. These institutions are the organizations that must collaborate and coordinate to move product and information from the raw material stage to the ultimate consumer. To effectively achieve this objective, global logistics managers must manage the “Five V’s” across the top of the figure. The first challenge is to provide the consumer with better value in return for their dollar. While the firm may see global sourcing as a means to reduce material or component costs, the only value that is relevant for consumers is a reduction in total landed