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Theinternationallogisticsisdefinedasthenegotiating,planning,andimplementationofsupportinglogisticsarrangementsbetweennations,theirforces,andagencies.Itincludesfurnishinglogisticsupport(majorenditems,materiel,and/orservices)to,orreceivinglogisticsupportfrom,oneormorefriendlyforeigngovernments,internationalorganizations,ormilitaryforces,withorwithoutreimbursement.Italsoincludesplanningandactionsrelatedtotheintermeshingofasignificantelement,activity,orcomponentofthemilitarylogisticssystemsorproceduresoftheUnitedStateswiththoseofoneormoreforeigngovernments,internationalorganizations,ormilitaryforcesonatemporaryorpermanentbasis.Itincludesplanningandactionsrelatedtotheutilizationofnation’slogisticspolicies,systems,and/orprocedurestomeetrequirementsofoneormoreforeigngovernments,internationalorganizations,orforces.PartⅠTheTermofInternationalLogistics下一页返回Whenshippingaproductoverseas,theexportermustbeawareofpacking,labeling,documentation,andinsurancerequirements.Mostexportersrelyonaninternationalfreightforwardertoperformtheseservicesbecauseofthemultitudeofconsiderationsinvolvedinphysicallyexportinggoods.Logisticsasaclientintheproductionprocessaspartofthesupplychain;itprovidesaneffectiveimplementationandcontroloftheeconomy,theflowofgoodsandstorageservices,andtheprovisionofgoodsofconsumptionfromtheoriginaltogototherelevantinformationinordertomeetcustomerrequirements.Logisticsisaminimumcost,accordingtouserrequirements,willbeofmaterialfromthesupplytotheneedfortransferoflandprocessincludedastransportation,handling,storage,packaging,distribution,logistics,processingandinformationprocessingandotheractivities.PartⅠTheTermofInternationalLogistics上一页下一页返回Tosumup,internationallogisticsiscarriedouttomeetthedemandforrawmaterials,intermediatestocks,thefinalproductandrelatedinformation,fromstarttofinisheffectivelyintheinternationalmovement,aswellastoachievethismovementcarriedoutbyplanning,managementandcontrolprocess.Logisticshasthe“7R”characteristics,namely:attherighttime,rightplaceandappropriateconditions,wouldbetherightproducttoappropriatemethodsandappropriatetothecostofprovidingtheappropriateconsumers.InternationalLogisticsreferstothetimewhentheproductionandconsumptionintwoormorecountries(orregions)independentlyofthecase,inordertoovercomethespacebetweenproductionandconsumption,distanceandtime,distance,pairsofmaterials(goods)carriedoutbythephysicalnatureofmovementofaninternationaleconomicandtradeactivities.PartⅠTheTermofInternationalLogistics上一页下一页返回InternationalLogisticsistheorganizationlegitimategoodsintheinternationalmovementthattookplaceindifferentlogisticsactivitiesbetweencountries.Comparedwiththedomesticlogisticsinternationallogistics,longdistancetransportationexpenses,higherinventories,longerfixed-cycleoperationcycle,thehighcostofinternationallogistics;avarietyofmodesoftransport,theneedtocrossinternationalbordersandotherreasons,sothatlogisticscompaniesincreasinglyinthelarge-scale.Asamultinationalbusinessandforeigntradeservices,ithasaninternational,complexityandriskcharacteristics.Whileaneffectivelogisticssystemisimportantfordomesticsupplychainintegration,itisabsolutelyessentialforsuccessfulglobalmanufacturingandmarketing.Domesticlogisticsfocusesonperformingvalueaddedservicestosupportsupplychainintegrationinsomewhatcontrollableenvironment.PartⅠTheTermofInternationalLogistics上一页下一页返回Globallogisticsmustaccommodateoperationsinavarietyofdifferentnational,political,andeconomicsettingswhilealsodealingwithincreaseduncertaintiesassociatedwiththedistance,demand,diversity,anddocumentationofinternationalcommerce.PartⅠTheTermofInternationalLogistics上一页返回ThePerformanceCycleStructureisthemajordifferencebetweendomesticandglobaloperations.Insteadof3to5daytransittimeand4to10daytotalperformancecycles,globaloperationalcyclesaremeasuredinweeksormonths.Forexample,itiscommonforautomotivepartsfromPacificRimsupplierstotake60daysfromreplenishmentorderreleaseuntilphysicalorderreceiptatU.S.manufacturingfacility.Thereasonsforalongerperformancecyclearecommunicationdelays,financingrequirements,specialpackagingrequirements,oceanfreightscheduling,slowtransittime,andcustomsclearance.Communicationmaybedelayedbytimezoneandlanguagedifferences.FinancingcausedelayssinceinternationaltransactionsoftenrequireLettersofcredit.Specialpackagingmayberequiredtoprotectproductsfromintransitdamagesincecontainerstypicallyareexposedtohighhumidity,andweatherconditions.PartⅡManagingtheGlobalSupplyChain下一页返回Onceaproductiscontainerized,itmustbescheduledformovementbetweenportshavingappropriatehandlingcapabilities.Thisschedulingprocesscanrequireupto30daysiftheoriginanddestinationportsarenotlocatedonhigh-volumetrafficlanesortheshipsmovingtothedesiredportslackthenecessaryequipment.Transittime,oncetheshipisenroute,rangesfrom10to21days.Portdelaysarecommandasshipswaitforotherstoclearharborfacilities.Customsclearancemayfurtherextendtime.Althoughitisincreasinglycommandtoutilizeelectronicmassagingtopre-clearproductshipmentsthroughcustomspriortoarrivalatinternationalports,theelapsedperformancecycletimeisstilllengthy.Thecombinationandcomplexityofabovefactorscausesinternationallogisticsperformancecyclestobelonger,lessconsistent,andlessflexiblethanistypicalindomesticoperations.PartⅡManagingtheGlobalSupplyChain上一页下一页返回Thereducedconsistency,inparticular,increasesplanningdifficulty.Thelongerperformancecyclealsoresultsinhigherassetcommitmentbecausesignificantinventoryisintransitatanypointintime.TransportationtheU.S.initiativetoderegulatetransportationduringthe1980’shasextendedglobally.Threesignificantglobalchangeshaveoccurred:(1)internationalownershipandoperation,(2)privatization,and(3)cabotageandbilateralagreements.Historically,therehavebeenregulatoryrestrictionsconcerninginternationaltransportationownershipandoperationrights.Transportcarrierswerelimitedtooperatingwithinasingletransportationmodewithfew,ifany,jointingpricingandoperatingagreements.PartⅡManagingtheGlobalSupplyChain上一页下一页返回Traditionally,steamshiplinescouldnotownormanageintegratedland-basedoperationssuchasmotororrailcarriers.Withoutjointownership,operationsandpricingagreements,internationalshippingwascomplicated.Internationalshipmentstypicallyrequiredmultiplecarrierstoperformfreightmovements.Specifically,governmentratherthanmarketforcesdeterminedtheextentofservicesforeign-ownedcarrierscouldperform.Althoughsomeownershipandoperatingrestrictionsremain,marketingandalliancearrangementsamongcountrieshavesubstantiallyimprovedtransportationflexibility.Theremovalofmulti-modelownershiprestrictionsintheU.S.andinmostotherindustrializednationsservedtofacilitateintegratedmovement.Asecondtransportationimpactonglobaloperationshasbeenincreasedcarrierprivatization.Historically,manyinternationalcarrierswereownedandoperatedbygovernmentinanefforttopromotetradeandprovidenationalsecurity.PartⅡManagingtheGlobalSupplyChain上一页下一页返回Government-ownedcarriersoftensubsidizeoperationsfortheirhomecountrybusinesswhileplacingsurchargesonforeignenterprises.Artificiallyhighpricingandpoorserviceoftenmadeitcostlyandunreliabletoshipviasuchgovernmentcarriers.Inefficienciesalsoresultedfromstrongunionizationandworkrules.Thecombinationofhighcostandoperatinginefficienciescausedmanygovernmentcarrierstooperateataloss.Agreatmanysuchcarriershavebeenprivatized.Changesincabotageandbilateralserviceagreementsarethethirdtransportationfactorinfluencinginternationaltrade.Cabotagelawsrequirepassengersorgoodsmovingbetweentwodomestictransportationportstoutilizeonlydomesticcarriers.Cabotagelawsweredesignedtoprotectdomestictransportationindustrieseventhoughtheyalsoservedtoreduceoveralltransportationequipmentutilizationandtoincreaserelatedefficiency.PartⅡManagingtheGlobalSupplyChain上一页下一页返回TheEuropeanCommunityhasrelaxedcabotagerestrictionstoincreasetradeefficiency.SuchreducedcabotagerestrictionswillserveU.S.corporations10to15percentinintra-Europeanshippingcosts.OperationalConsiderationsFirst,internationaloperationstypicallyrequiremultiplelanguagesforbothproductanddocumentation.Atechnicalproductsuchasacomputeroracalculatormusthavelocalfeaturessuchaskeyboardcharactersandlanguageonboththeproductitselfandrelatedmanuals.Fromalogisticsperspective,languagedifferencesdramaticallyincreasecomplexitysinceaproductislimitedtoaspecificcountryonceitislanguage-customized.Forexample,eventhroughWesternEuropeismuchsmallerthantheU.S.inageographicsense.Itrequiresrelativelymoreinventorytosupportmarketingeffortssinceseparateinventoriesmayberequiredtoaccommodatevariouslanguages.PartⅡManagingtheGlobalSupplyChain上一页下一页返回Althoughproductproliferationduetolanguagerequirementhasbeenreducedthroughmulti-purposepackagingandpostponementstrategies,suchPracticeisnotalwaysacceptable.Inadditiontoproductlanguageimplications,internationaloperationsmayrequiremultilingualdocumentationforeachcountrythroughwhichtheshipmentpasses.AlthoughEnglishisthegenerallanguageofcommerce,somecountriesrequirethattransportationandcustomsdocumentationbeprovidedinthelocallanguage.Thisincreasesthetimeandeffortforinternationaloperationssincecomplexdocumentsmustbetranslatedpriortoshipment.Thesecommunicationanddocumentationdifficultiescanbesomewhatovercomethroughstandardizedelectronictransactions.Thesecondoperationaldifferenceinglobalcommerceisuniquenationalaccommodationsuchasperformancefeatures,powersupplycharacteristics,andsafetyrequirements.PartⅡManagingtheGlobalSupplyChain上一页下一页返回Whiletheymaynotbesubstantial,thesmalldifferencesbetweencountryrequirementsmaysignificantlyincreaserequiredSKUs(StockKeepingUnit)andsubsequentinventorylevel.Thethirdoperatingdifferenceisthesheeramountofdocumentationrequiredforinternationaloperations.Whiledomesticoperationscangenerallybecompletedusingonlyaninvoiceandbilloflading,internationaloperationsrequiresubstantialdocumentationregardingordercontents,transportation,financing,andgovernmentcontrol.Thefourthoperatingdifferenceisthehighincidenceofcountertradeanddutydrawbackfoundinsomeinternationalsituations.Whilemostestablishedfirmsprefercashtransactions,countertradeisimportant.Countertrade,inessence,iswhenaselleragreestotakeorpurchaseproductsfromthebuyeraspartofasalesagreement.PartⅡManagingtheGlobalSupplyChain上一页下一页返回Whilesuchagreementshavefinancialconsequences,theyalsohavemajorimplicationsforlogisticsandmarketingintermsofdisposalofgoodsreceivedaspayment.SystemIntegrationFewfirmscurrentlyenjoyglobalsystemsintegration.Sincefirmstypicallyglobalizebyacquisitionandmerger,theintegrationofsystemstypicallylags.Operationalintegrationrequirestheabilitytorouteordersandmangeinventoryrequirementselectronicallythroughouttheworld.Developmentofsupportivetechnologyintegrationrepresentssubstantialcapitalinvestment.Theoverallprocesswassignificantlyfacilitatedbytheglobalinitiativetoachievecompliance.However,thereremainfewenterprisesthathaveintegratedglobalsystems.PartⅡManagingtheGlobalSupplyChain上一页下一页返回Alliancesafinaldifferenceininternationaloperationsistheextendedroleofthird-partyalliances.Whileallianceswithcarriersandspecializedservicesuppliersareimportantindomesticoperations,theyareessentialininternationalcommerce.Withoutalliances,itwouldbenecessaryforanenterpriseoperatinginternationallytomaintaincontactswithretailers,wholesalers,manufacturers,suppliers,andserviceprovidersthroughouttheworld.Internationalalliancesoffermarketaccessandexpertiseandreducetheinherentriskinglobaloperations.Thenumberofalternativesandthecomplexityoftheglobalizationrequireincreaseduseofalliances.PartⅡManagingtheGlobalSupplyChain上一页返回April10,2010HuangKun,ManagerofNon-ferrousDept.ShaanxiGoodwillMetals&MineralsImp./Exp.Co.Ltd.DearMr.Wang,Re:“Snowflake”BrandZincIngots,ZincContract99%Referenceismadetoourrecentexchangeoflettersabout1,000metrictons“Snowflake”BrandZincIngots,zinccontract99%.Aswefindbothqualityandpricessatisfactory,wearepleasedtoplaceatrialorderwithyouforthefollowing:Quantity

description

Unitprice(net)Amount1,000M/T“Snowflake”BrandUS$1,700perM/TUS$1,700,000.00ZincIngots,ZincCIFPusan,KoreaContent99%WritingSkillⅠPlacingaTrialorder下一页返回Payment:Byconfirmed,irrevocableL/CbydriftatsightPacking:InbalesShipment:Within4-5weeksofreceivingtheL/CPleasemakesurethatthegoodsaretobeshippedinaccordancewiththeonesinthesamplebook.Wewouldlikeyoutosendusyouracknowledgementofthisorderatyourearliestconvenience.WewillarrangetoapplyforL/CthroughtheBankofChina,Seoulonreceivingyouracknowledgement.Ifthisinitialorderissatisfactory,weshallplacefurtherorderswithyouinthefuture.Yourearlyattentiontothisorderwillbehighlyappreciated.Yoursfaithfully,KoreaNon-FerrousTradingCo.,Ltd.KimWoongZuWritingSkillⅠPlacingaTrialorder上一页返回Globalizationisanevolvingfrontierthatisincreasinglydemandingsupplychainintegration.Asthedevelopmentofinternationalbusiness,thedemandforlogisticalcompetencyincreasesduetolongersupplychain,lesscertainty,andmoredocumentation.Whiletheforcesofchangepushtowardborderlessoperations,supplychainmanagementstillconfrontsmarket,financial,andchannelbarriers.Thebarriersareexemplifiedbydistance,demand,diversity,anddocumentation.Thechallengeistopositionanenterprisetotakeadvantageofthebenefitsofglobalmarketingandmanufacturingbydevelopingworld-spanninglogisticalcompetency.Aroundtheworld,logisticsservicesformanimportantbasisforsuccessinbusiness.Inaglobalcomparison,thesignificanceoflogisticsdependslargelyontheoveralleconomicpowerofacountry.Forinstance,logisticshasbeenfaradvancedintheUnitedStates,JapanandEuropeforalongtime.PartⅢTheNewOpportunitiesofGlobalization下一页返回ButregionsliketheBRICcountriesarerapidlycatchingup.Businesscannotbedonewithouttheservicesoflogisticsproviders.Logistics’significanceandcapabilitiesdependlargelyontheeconomicpoweranddevelopmentalstageofacountry.Onecriticalfactor,forinstance,istheavailabilityofanintactinfrastructure.Therangeoflogisticsserviceprovidersextendsfrompuretransportfunctionstomodern,complexlogisticssystems-dependingontheconditionsofaparticularcountry.Inold,highlydevelopedandmaturemarkets,logisticsplaysaveryspecialrole.Insuchmarkets,itisheldinhighesteeminmacroeconomicterms.ThesemarketsincludetheUnitedStates,JapanandEurope.Inrecentyears,othercountrieshavebecomeimportantplayersintheworldeconomyasaresultoftheirhighgrowthrates.ThesecountriesincludeBrazil,China,Russia,IndiaalsoknownastheBRICcountries,hasachievedgrowthofaround10percentinthepast.PartⅢTheNewOpportunitiesofGlobalization上一页下一页返回Similargrowthhasbeenforecastforthefuture.Theimportanceoflogisticswillalsoincreaseincountriesthatarerelativelyunimportanttodayastheresultoffurthergrowthindevelopingcountries.Inadditiontoeconomicpowerandexpectedgrowth,thelocationofacountryisoneothercriticalfactorforlogistics.CountrieslikeTurkeyandFinlandhaveparticularlyfavorablelocationsandserveaslinksbetweenothernationaleconomies,includingEurope→Turkey→AsiaorEurope→Finland→Russia.Theworldisgrowingcloserandclosertogether.Politicalandideologicalbordersaredisappearing.Tradebarriersarebeingdismantledandcustomsdutiesarebeingeliminated.Atthesametime,innovativeinformationandcommunicationtechnologiesarecreatingnew,far-reachingpossibilities.Asaresultofthisdynamicdevelopment,thedemandforlogisticsservicesisclimbingenormously.PartⅢTheNewOpportunitiesofGlobalization上一页下一页返回Logisticshasbecomeacriticalfactorinthesuccessofmoderncompaniesbecausecustomerandsupplynetworkscanbeextendedaroundtheworld.Atthesametime,though,intensifyingglobalcompetitionisdeveloping.Theresult:Globalizationiscreatingnewchallengestogoalongwithitssweepingopportunities.Inthepast20years,theconditionsforglobaltradeandbusinesshaveimprovedtremendously.Manypolitical,ideologicalandcustoms-relatedbordersbetweencountriesandregionsoftheworldhavebeendismantled.The“IronCurtain”fellandthesocialisteconomicordercollapsedwhiletheintegrationofEuropecontinuedtoadvance.Similardevelopmentshaveoccurredinotherregions,includingSouthAmerica(MERCOSUR),NorthAmerica(NAFTA)andthePacificregion(ASEAN).PartⅢTheNewOpportunitiesofGlobalization上一页下一页返回Inaddition,worldwideeffortstoremovetradebarriersareprogressingslowlybutsurely.TheseincludetheGlobalAgreementonTariffsandTrade(GATT)andtheOrganizationforEconomicCooperationandDevelopmentOrganizationforEconomicCooperationandDevelopment(OECD).Adrivingforceoftheseimprovementshasbeentheenormousadvancesmadeininformationandcommunicationstechnologysincethe1990s.ThisdevelopmentistheresultofboththeWorldWideWebandgloballyaccepted,factualstandards,includingWindows-basedPCsystems,theEDIFACT,EANcodingand,lastbutnotleast,Englishastheworldlanguageofbusiness.Thestandardshelpbusinesspartnerstobelocatedmorequicklyandcosteffectively,andmaketheprocessesusedintheeverydaybusinessworldconsiderablymoreefficientthanitwasinthe1980s.PartⅢTheNewOpportunitiesofGlobalization上一页下一页返回ThesestrideshavebeencomplementedbyprogressivestandardizationinpackagingandcontainersledbytheInternationalStandardsOrganization(ISO).Forindustrialandtradecompanies,thepossibilityofextendingthenetworksoftheirsuppliersandcustomersfartherandfartherinternationallyhasbecomemuchmoreappealing.Afterall,theycansearchformaterials,employees,know-howandtheconditionsfortheiractivitiesincountriesandregionsthatofferthemthebestcost-performanceratio.Customsregulationsanddocumentprocessinghavebeengreatlysimplified.Communicationsandtransportoptionshavebecomesignificantlyfaster,morecosteffectiveandmorereliable.Thelowertransportcostsarisingfromthesechangesarethereasonthatmoreandmorecompaniesaredecidingtoextendtheirvalue-creationprocessesaroundtheworld.PartⅢTheNewOpportunitiesofGlobalization上一页下一页返回Globalizationisnotjustaworldofnewopportunitiesforcompanies.Italsoposescertainrisks.Inmanysectors,moreintense,globalcommercialcompetitionhasarisen.Evenintheirhomemarkets,companiesarefacingnewcompetitorsfromaroundtheworld,andthesecompetitorsfrequentlyenjoymassivecostadvantagesgeneratedbysuchfactorsaslowerproductionexpenses.Asaresultofthisdevelopment,thedemandfortransport,storage,transshipping,communications,planning,andcontrolservicesiscontinuouslygrowing.Atthesametime,pressuretooptimizethequalityandcostsofservicesisgrowingoncompanies.Logisticshasbecomeoneofthemostimportantleversthatcompaniescanusetosurviveandsucceedinglobalcompetition.PartⅢTheNewOpportunitiesofGlobalization上一页返回Justasinternationallogisticsservicesareacomponentoftheentirevaluechainandaredependentonothervalueactivities,theinternationallogisticsstrategyisanelementoftheinternationalizationstrategyofmanufacturingcompanies.Thedecisionaboutwhichinternationallogisticsstrategytochoosecanbemadeonlywithinthecontextoftheoverarchinginternationalizationstrategy.Internationallogisticsactivitiesincreaseasindirectexportsbecomedirectexports.Theyreachtheirpeakwhenacompanyassemblesproductsabroadorconductssomeformofinternationalproduction.Theydecreaseasothertypesofinternationalproductionareconductedandglobalmanagementisperformed.Theinternationalmarketentryofaproductioncompanyisusedhereasanexample.Thefollowingtableshowshowaninternationallogisticsstrategycanbeformulatedintheselectionofaninternationalstrategyofamanufacturingcompany.PartⅣInternationalLogisticsStrategies下一页返回Extendinglogisticsactivitiesbeyondacountry’sbordersrepresentssomethingmoretoacompanythanlengtheningitstransportdistances.Forinstance,itmustdeterminehowthegoodsaretobeshippedabroad.Anotherquestionthatmustbeaddressediswhetherthecompanyitselfwillbecomeactiveinternationallyorwhetheranexternalexpertwillbebroughtin.Intheend,allofthesequestionscanbeansweredonlywithinthecontextofthecompany’soverarchingstrategyforitsinternationalactivities.Astrategycanbedevelopedonlybyconsideringallfactors.PartⅣInternationalLogisticsStrategies上一页下一页返回PartⅣInternationalLogisticsStrategies上一页返回InternationalizationstrategyofamanufacturingcompanyInternationallogisticsstrategyIndirectexportsbyadomesticexportcompanyand/oraninternationalimportcompanyThecompanydoesnotcreateaspecialinternationallogisticssystem.Rather,itmanagestheflowofgoodsandinformationwithitsnationallogisticssystemorwithexternallogisticssystems.DirectexportsthroughlicensedproductionabroadThecompanycanavoidcreatinganinternationallogisticssystem.Unlikeindirectexports,though,moreinfluencecanbeexertedonthesupplierservicebeingofferedabroad.Thisisbecausethesupplierrequirementsthatmustbefulfilledcanbepartofthelicensecontract.Directexportswithdirectinvestmentinanint

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