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Evidencia 1 writing and essay about logistics costsdocx

Negocios Internacionales (Servicio Nacional de Aprendizaje)

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Actividad de aprendizaje 12

Evidencia 1: Writing and essay about logistics costs

Nombre: Nelson A ndrés A bril Z apata

Documento de identidad: Programa: 79886409
Negociación nternacional !"4"#"07$

Advantages and disadvantages of costs in International Physical Distribution

%or an& compan& t'at (ants to e)port one o* t'e c'oices t'at must be
controlled are t'ose o* international transport and distribution in t'e
destination mar+et, t'ese
*actors must be 'andled correctl& b& t'e compan& so t'at t'e product
arri-es in appropriate times and *orms t'e *inal consumers

%or e-er& entrepreneur, distribution is a cost issue t'at must be *aced,

t'ese costs are normall& 'ig', generating an e)tra cost in t'e
product t'at t'e consumer ultimatel& pa&s. t is t'ere*ore
understandable t'at in a product di**erent actors can inter-ene *rom
t'eir producti-e c'ain to t'e distribution c'ain. /'at is, an& *ailure in one
o* t'e stages o* a product can suspend t'e distribution s&stem
a**ecting international business.

t is *or t'is purpose t'at t'e international p'&sical distribution e)ists,

being t'e logistic process t'at is carried out in t'e e)port o*
products and t'at as main obecti-e is to reduce costs, times and
ris+s to t'e ma)imum *rom t'e point o* departure at t'e origin to t'e
Deli-er& point to t'e *inal destination.

n order *or a compan& to e)pand and loo+ *or better opportunities in t'e
mar+et, it must consider t'e in-estments o* time, e**ort and capital,
t'ere*ore t'e correct logistics t'at it carries out is possible to reduce
t'e costs o* t'e products *or t'e bene*it o* t'e consumers and t'e
costs. o* production *or t'e bene*it o* t'e compan&. /'e impact o*
t'e logistics department (it'in t'e companies is -isible in t'e degree
o* customer satis*action, as (ell as in t'e *luidit& o* t'e internal
processes o* trac+ing, production and transportation, i* t'e correct
e**orts are being made t'at (ill ultimatel& be seen releados in t'e
reduction o* costs.

/'at is ('& t'e ad-antages o* reducing logistics costs can trigger in

('ic' t'e compan& is *orced to increase its producti-it& since it must
be directed more and more to impro-e competiti-el&, t'is also
applies to t'e impro-ement o* t'e compan&1s management o* t'e
compan&, t'us same redounds in t'e possibilit& o* e)panding mar+ets
b& accessing products and mar+ets t'at (it'out t'e correct e)port
are unattainable ending in one o* t'e best assets o* companies:
t'e increase o* t'eir customers

2n t'e ot'er 'and, i* &ou do not 'a-e control o-er t'e costs, &ou can
incur 'ig' operational ris+s, ('ic' leads to economic and political
ris+s *or t'e compan&, as

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(ell as 3 ('ip e**ects3 t'at can disrupt t'e real demand, and *inall&
/'e greatest danger t'at t'e organiation 'as in not protecting itsel*
*rom cost o-erruns is t'at it 'as ero margin o* error or reduced in-
entories to suppl& mar+et needs.

As a conclusion, t'is is ('& strategies and international p'&sical

distribution s'ould be c'aracteried b& creating t'e capacit& in
companies to generate support to internationalie *rom t'eir
production or *rom t'eir mar+et, al(a&s remembering t'at corporate
success because it is no longer measured so easil& at present in t'e
5uantitati-e and 5ualitati-e, being a *actor o* competiti-eness to
generate pro*itabilit& in import operations.

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