Global logistics

presented by:
bhupathiraju.vijay varma(131415)
pranaya biswal(131341)
ganne.ravi teja(131410)
saradhi rama chandhra(132339)
B.ravi teja(131343)
G.indira teja(131350)
 logistics

• The overall management of the way resources are

obtained, stored and moved to the locations where
they are required. Logistics management entails
identifying potential suppliers and distributors;
evaluating how accessible and effective they are and
establishing relationships and signing contracts with
the companies who offer the best combination of
price and service. A company might also choose to
handle its own logistics if it is cost-effective to do so.
Global Logistics:
Global logistics is the design and management of a system that
controls the forward and reverse flow of materials, services, and
information into, through, and out of the international corporation.

Through the implementation of international logistics, the firm can

implement cost-saving programs such as just-in-time (JIT), electronic
data interchange (EDI) etc.

The two phases of the movement of materials include:

 Timely movement of materials, parts, and supplies.
 Timely movement of the firm’s physical product to its
customers.
 Role of Global Logistics

 Globalization helped in doing business beyond the

national boundary
 The world has become global village in real sense
 Internet has made easy to do business across the
globe
 Speed and Efficiency in the movement of goods is
focused more.
 Global operations of business increase the
complexity of logistics.
 Complexity of a Typical Global Supply Chain
Freight Ocean

Customs
Forwarder Agent liner

Supplier Plant Port

Roadways Roadways Airways Road
+

Rail

Home Consumer Customer Customer’s RDC

(Retailer) Warehouse Roadways
 Transportation Infrastructure

 A firm’s logistics platform is determined by a location’s ease

and convenience of market reach under favorable cost
circumstances.

 The public sector’s investment priorities, safety regulations,

tax incentives, and transport policies can have major effects
on the international logistics decisions of firms.

 The logistics manager must learn about existing and planned

infrastructures abroad and at home and factor them into the
firm’s strategy.
 Vessels Used in Ocean Shipping

Liner Service

Bulk Service Tramp Service

 Liner Service – is a service that operates within a schedule
and has a fixed port rotation with published dates of calls at
the advertised ports

 A Tramp Service or tramper on the other hand is a ship that

has no fixed routing or itinerary or schedule and is available at
short notice (or fixture) to load any cargo from any port to any
port..

 Bulk Service: It is engaged in the transfer of dry bulk

commodities from rail and truck to dock.
 Airfreight

 Airfreight is available to and from most countries,

including the developing world.

 40 percent of the world’s manufactured travel by air.

 Items that are high-value or high in size tend to travel

by air.
 Considerations for Selecting a Mode
of Transport
 Transit Time

 Predictability

 Cost

 Non-economic Factors
 In many ways, international supply chain
management is the same as domestic supply
chain management spread over a larger
geographic area.
 However, international supply chain networks
can provide a wealth of additional
opportunities if they are managed effectively.
Types of systems :

 International distribution systems:

Manufacturing occurs domestically, but
distribution and marketing takes place overseas.

 International suppliers:
Raw materials and components are
furnished by foreign suppliers, but final
assembly is performed domestically.
 Offshore manufacturing:
The product is typically sourced and
manufactured in a single foreign location, and then
shipped back to domestic warehouses for sale and
distribution.

 Fully integrated global supply chain:

Here products are supplied, manufactured
and distributed from various facilities located
throughout the world.
Supply chain without national boundaries.
The true value of global supply chain lies here.
Dynamic Forces of Global Logistics
The firms adopt different orientations with varying intensities due to the
dynamic behavior of the global business environment.

RESOURCES
Resource Oriented Logistics:
Emphasis towards optimal use of resources -- capital,
materials and people
Focuses on the relationship between the functional
and the geographical

Optimize

Functional Geographical
Resources
Information Oriented Logistics
Emphasis towards optimal use of information.
Focuses on the relationship between the sectorial
and the geographical dimensions.
Sectorial
Geographical

Optimal
Performance
User Oriented Logistics
Emphasis on the final customer.
Using all the supply chain partners to bring their expertise in
order to best service the customer.
User oriented focus brings about flexibility in the logistics
channel.

Customer
Factors Pushing Global Logistics

Technological
Advances

Emergence of Political & Macro-

Global Markets economic factors

Global Cost
Forces
How is Global Logistics creating Change:
The management has to consider the Global economy

Service in the Industry becoming more important than

Cost Saving
Logistics operations perceived more as Service Provider
for cost minimization

Logistics activities no longer limited to moving products

through the Supply Chain but as an Information Provider
for the SC.

Companies moving away from Vertical Integration

and towards Supply Chain Integration, with Logistics
activities provided externally.
Benefits due to Globalization of Logistics:

Globalization is necessary for long-term survival

Diversity of markets increasing giving rise to

Standardization across international markets
Product diversity

Ability to access multiple sources of technology

Ability to set up strategic alliances and R & D