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1、1Chapter 16International Logistics and Supply-Chain Management2Learning Objectives To understand the escalating importance of logistics and supply-chain management as crucial tools for competitiveness.To learn about materials management and physical distribution.To learn why international logistics
2、is more complex than domestic logistics.To see how the transportation infrastructure in host countries often dictates the options open to the manager.To learn why international inventory management is crucial for success.3International LogisticsInternational logistics is the design and management of
3、 a system that controls the forward and reverse flow of materials,services,and information into,through,and out of the international corporation.4International Logistics(cont.)Through the implementation of international logistics,the firm can implement cost-saving programs such as just-in-time(JIT),
4、electronic data interchange(EDI),and early supplier involvement(ESI).The two phases of the movement of materials include:materials management,or the timely movement of materials,parts,and supplies.physical distribution,or the movement of the firms physical product to its customers.5Three Concepts of
5、 Business LogisticsTotal Cost ConceptTrade-off ConceptSystems Concept6Supply-Chain Management Supply-chain management is the integration of business processes from end user through original suppliers,that provide products,services,and information that add value for customers.Supply-chain management
6、connects a companys supply side with its demand side.It opens up supplier relationships for companies outside of the buyers domestic market.7The International Supply ChainPhysicalDistributionManagementTransportationCorporationSuppliersCustomersDomestic/ImportSourcing Domestic/ExportDistributionThrou
7、ghflowInboundMaterialsOutboundMaterialsForward and Reverse Flow of Information,Products,and FundsPhysicalDistributionManagement Transportation Transportation TransportationOrderProcessingOrderProcessingOrderProcessingOrderPlacementInventoryManagementMaterialsManagementCustomerServiceStorageStorageSt
8、orageInventoryManagementInventoryManagementCostumer-FirmInterfaceSupplier-FirmInterface8Transportation Infrastructure A firms logistics platform is determined by a locations ease and convenience of market reach under favorable cost circumstances.The public sectors investment priorities,safety regula
9、tions,tax incentives,and transport policies can have major effects on the logistics decisions of firms.The logistics manager must learn about existing and planned infrastructures abroad and at home and factor them into the firms strategy.9Vessels Used in Ocean ShippingLiner ServiceBulk ServiceTramp
10、Service10Airfreight Airfreight is available to and from most countries,including the developing world.International airfreight is expected to grow to 190 billion tons in 2005,compared to only 70 billion tons in 1995.Forty percent of the worlds manufactured travel by air.Items that are high-value or
11、high in density tend to travel by air.11Considerations for Selecting a Mode of TransportPredictabilityTransit TimeCostNon-economic Factors12Export Documentation A bill of lading is a contract between the exporter and the carrier indicating that the carrier has accepted responsibility for the goods a
12、nd will provide transportation in return for payment.A commercial invoice is a bill for the goods stating basic information about the transaction,including a description of the merchandise,total cost of the goods sold,addresses of the shipper and seller,and delivery and payment terms.A freight forwa
13、rder specializes in handling export documentation.13International Inventory Issues Inventories tie up a major portion of corporate funds,therefore proper inventory policies should be a major concern to the international logistician.Just-in-time inventory policies minimize the volume of inventory by
14、making it available only when needed.The purpose of establishing inventory systems are:to maintain product movement in the delivery pipelineto have a cushion to absorb demand fluctuations14Three Factors that Decide the Level of InventoryOrder Cycle TimeDesired CustomerService LevelsUse of Inventorie
15、s asa Strategic Tool15International Packaging Issues Packaging is instrumental in getting the merchandise to the destination in a safe,presentable condition.Because of the added stress of international shipping,packaging that is adequate for domestic shipping may be inadequate for international ship
16、ping.Packaging considerations that should be taken into account are environmental conditions and weight.One solution to the packaging problem has been the development of inter-modal containers.Cost attention must be paid to international packaging.16Storage Facilities A stationary period is involved when merchandise becomes inventory stored in warehouses.The location decision addresses how many distribution centers to have and where to locate them.Storage facilities abroad can differ in availabi
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