ENGLISH PROGRAM

ESP
LOGISTICS

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UNIT 3 “Physical distribution”

Week 12

Transport and Logistics

Transportation involves the physical movement or flow of goods. The transportation

system is the physical link that connects customers, raw material suppliers, plants,
warehouses and channel members. These are the fixed points in a logistics supply chain.
The basic modes of transportation are water, rail, motor carrier, air and pipeline. Water
being the slowest mode with rail, motor carrier, and air following in order of speed of
delivery. Generally, the order is reversed when looking at costs.

Selection of the appropriate carrier has several steps. First the firm selects a transportation
mode. The shipper must compare the service desired with the rate or cost of service.
Service usually means transit time or the time that elapses from the time the consignor
makes the goods available for dispatch until the carrier delivers to the consignee. Pickup
and delivery, terminal handling and movement between origin and destination account
for the time involved in transporting goods.
The firm must balance the "need for speed" with the costs inherent in the mode of
transport. This includes the rate charged for the service, minimum weight requirements,
loading and unloading facilities, packaging, possible damage in transit, and any special
services that may be desired or required. If next day delivery is imperative, the shipper
will utilize an air freight carrier but will pay a premium price for such rapid service. If
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time is not a particularly critical element the shipper may elect to use rail or a motor
carrier, or may even utilize a water carrier if time is inconsequential. Water-based modes
of transportation are the least expensive and are used for commodity type products such
as grain, coal, and ore. Some firms even utilize more than one mode of transportation,
called intermodal transport, to move their goods.

Once a mode is selected, the shipper must decide the legal classification or type of carrier
they wish to utilize: common, regulated, contract, exempt or private.
Common carriers serve the general public at reasonable prices and without
discrimination. They cannot refuse to carry a particular commodity or refuse to serve a
particular point with the scope of the carrier's operation. Common carriers are liable for
all goods lost, damaged, or delayed unless caused by natural reasons, an act of a public
enemy, an act of public authority, an act of the shipper, or some defect within the good
itself.
Regulated carriers are required to provide safe and adequate service and facilities upon
reasonable request and are liable for damage up to limits established by the carrier.
Regulated carriers can be motor carriers or water carriers and are subject to minimal
federal controls.
A contract carrier does not serve the general public, but, rather serves one or a limited
number of contracted customers. They have no legal service obligation. They often
provide a specialized service and usually have lower rates than common or regulated
carriers.
Exempt carriers are exempt from regulation regarding rates and services. Exempt status
comes from the type commodity hauled or the nature of the carrier's operation. Exempt
motor carriers are usually local and typically transport such items as agricultural goods,
newspapers, livestock, and fish. Exempt water carriers transport bulk commodities such
as coal, ore, grain, and liquid. Exempt rail carriers transport piggy-back shipments and
exempt air carriers haul cargo.
A firm's own transportation is termed a private carrier. Private carriers are not "for-hire"
and not subject to the same federal regulations as other types of transport. However, the
carrier's primary business must be something other than transportation.

Once the mode and type of carrier is determined a final decision can be made based on
other factors. Accessibility is one such factor. Some firms have geographic limits to their
routing network. Others may not possess physical access to needed facilities or have the
ability to provide the equipment and facilities that movement of a particular commodity
may require. Reliability, the consistency of the transit time a carrier provides, is also a
key factor. Finally, convenience and communication are other important considerations
when selecting a carrier.
Measures that a transportation firm would use to judge its performance include: orders
shipped on time, orders shipped complete, order preparation time, product availability,
and transit time. From the customer perspective performance can be gauged from orders
received on time, orders received complete, orders received damage free, orders filled
accurately, and orders billed accurately.
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Types of transport

Marine
There is a wide range of maritime cargo handled at seaport terminals.

 Automobiles are handled at many ports and are usually carried on specialized roll-
on/roll-off ships.
 Break bulk cargo is typically material stacked on pallets and lifted into and out of the
hold of a vessel by cranes on the dock or aboard the ship itself. The volume of break
bulk cargo has declined dramatically worldwide as containerization has grown. A safe
and secure way to secure break bulk and freight in containers is by using Dunnage
Bags.
 Bulk cargo, such as salt, oil, tallow, and scrap metal, is usually defined as
commodities that are neither on pallets nor in containers. Bulk cargoes are not handled
as individual pieces, the way heavy-lift and project cargoes are. Alumina,
grain, gypsum, logs and wood chips, for instance, are bulk cargoes.
 Neo-bulk cargo comprises individual units that are counted as they are loaded and
unloaded, in contrast to bulk cargo that is not counted, but that are not containerized.[1]
 Containers are the largest and fastest growing cargo category at most ports
worldwide. Containerized cargo includes everything from auto parts, machinery and
manufacturing components to shoes and toys to frozen meat and seafood.
 Project cargo and the heavy lift cargo include items like manufacturing equipment,
air conditioners, factory components, generators, wind turbines, military equipment,
and almost any other oversized or overweight cargo which is too big or too heavy to
fit into a container.
Air
Air cargo, commonly known as air freight, is collected by firms from shippers and
delivered to customers. Aircraft were first used for carrying mail as cargo in 1911.
Eventually manufacturers started designing aircraft for other types of freight as well.

There are many commercial aircraft suitable for carrying cargo such as the Boeing 747
and the bigger An-124, which was purposely built for easy conversion into a cargo
aircraft. Such large aircraft employ quick-loading containers known as Unit Load Devices
(ULDs), much like containerized cargo ships. The ULDs are located in front section of
the aircraft.
Train
Trains are capable of transporting large numbers of containers that come from shipping
ports. Trains are also used for the transportation of steel, wood and coal. They are used
because they can carry a large amount and generally have a direct route to the destination.
Under the right circumstances, freight transport by rail is more economic and energy
efficient than by road, especially when carried in bulk or over long distances.

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The main disadvantage of rail freight is its lack of flexibility. For this reason, rail has lost
much of the freight business to road transport. Rail freight is often subject to
transshipment costs, since it must be transferred from one mode of transportation to
another. Practices such as containerization aim at minimizing these costs.
Many governments are currently trying to encourage shippers to use trains more often
because of the environmental benefits.
Road
Many firms like UPS, Parcelforce, FedEx, R+L Carriers and u-haul transport all types of
cargo by road. Delivering everything from letters to houses to cargo containers, these
firms offer fast, sometimes same-day, delivery.
A good example of road cargo is food, as supermarkets require deliveries every day to
keep their shelves stocked with goods. Retailers of all kinds rely upon delivery trucks, be
they full size semi trucks or smaller delivery vans.

Freight is usually organized into various shipment categories before it is transported. An

item's category is determined by:

 The type of item being carried. For example, a kettle could fit into the category
'household goods'.
 How large the shipment is, in terms of both item size and quantity.
 How long the item for delivery will be in transit.
Shipments are typically categorized as household goods, express, parcel, and freight
shipments:

 Household goods (HHG) include furniture, art and similar items.

 Very small business or personal items like envelopes are considered overnight
express or express letter shipments. These shipments are rarely over a few kilograms
or pounds and almost always travel in the carrier‘s own packaging. Express shipments
almost always travel some distance by air. An envelope may go coast to coast in the
United States overnight or it may take several days, depending on the service options
and prices chosen by the shipper.

 Larger items like small boxes are considered parcels or ground shipments. These
shipments are rarely over 50 kg (110 lb), with no single piece of the shipment
weighing more than about 70 kg (154 lb). Parcel shipments are always boxed,
sometimes in the shipper‘s packaging and sometimes in carrier-provided packaging.
Service levels are again variable but most ground shipments will move about 800 to
1,100 kilometers (497 to 684 mi) per day. Depending on the origin of the package, it
can travel from coast to coast in the United States in about four days. Parcel shipments
rarely travel by air and typically move via road and rail. Parcels represent the majority
of business-to-consumer (B2C) shipments.
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 Beyond HHG, express, and parcel shipments, movements are termed freight
shipments.

Answer if the following questions are true or false. Justify the false ones:

1. Air transport is the cheapest transport type

2. Next day delivery never charges extra.
3. A contract carrier does not serve the general public.
4. Accessibility is one of the factors to be considered at the moment of
choosing a carrier.
5. Automobiles are usually transported by train.
6. Containers are only used in sea freight.
7. Supermarkets tend to use road freight.
8. Household goods are goods that are delivered at the buyer‘s house.

Week 13

Physical distribution and transport infrastructure

Physical distribution management (PDM) is concerned with ensuring the product is in

the right place at the right time.

It is now recognised that PDM is a critical area of overall marketing management. Much
of its expertise is ‗borrowed‘ from military practice. During the Second World War and
the Korean and Vietnam wars, supplies officers had to perform extraordinary feats of
PDM, in terms of food, clothing, ammunition, weapons and a whole range of support
equipment having to be transported across the world. The military skill that marketing
has adopted and applied to PDM is that of logistics. It has been realised that distribution
could be organised in a scientific way so the concept of business logistics developed,
focusing attention on and increasing the importance of PDM. Business logistical
techniques can be applied to PDM so that costs and customer satisfaction are optimised.
There is little point in making large savings in the cost of distribution if, in the long run,
sales are lost because of customer dissatisfaction. Similarly, it does not make economic
sense to provide a level of service that is not really required by the customer and leads to
an erosion of profits. This cost/service balance is a basic dilemma that faces physical
distribution managers.

Logistical issues facing physical distribution managers today is the increasing application
by customers of just-in-time management techniques or lean manufacturing. Companies
who demand ‗JIT‘ service from their suppliers carry only a few hours‘ stock

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of material and components and rely totally on supplier service to keep their production
running. This demanding distribution system is supported by company expediters whose
task it is to ‗chase‘ the progress of orders and deliveries, not only with immediate
suppliers, but right along the chain of supply. Lean manufacturing has been widely
adopted throughout the automotive industry where companies possess the necessary
purchasing power to impose such delivery conditions on their suppliers. Their large
purchasing power also necessitates stringent financial controls, and huge financial savings
can be made in the reduction or even elimination of stockholding costs where this method
of manufacturing is employed.
Physical distribution management (PDM) is concerned with the flow of goods from the
receipt of an order until the goods are delivered to the customer. In addition to
transportation, PDM involves close liaison with production planning, purchasing, order
processing, material control and warehousing. All these areas must be managed so that
they interact efficiently with each other to provide the level of service that the customer
demands and at a cost that the company can afford.

PDM is concerned with ensuring that the individual efforts that go to make up the
distributive function, are optimised so that a common objective is realised. This is called
the ‗systems approach‘ to distribution management and a major feature of PDM is that
these functions be integrated. There are two central themes that should be taken into
account:
1. The success of an efficient distribution system relies on integration of effort. An
overall service objective can be achieved, even though it may appear that some
individual components of the system are not performing at maximum efficiency.
2. It is never possible to provide maximum service at a minimum cost. The higher
the level of service required by the customer, the higher the cost. Having decided
on the necessary level of service, a company must then consider ways of
minimising costs, which should never be at the expense of, or result in, a reduction
of the predetermined service level.

The distribution process

The distribution process begins when a supplier receives an order from a customer. The
customer is not too concerned with the design of the supplier‘s distributive system, nor in
any supply problems. In practical terms, the customer is only concerned with the
efficiency of the supplier‘s distribution. That is, the likelihood of receiving goods at the
time requested. Lead-time is the period of time that elapses between the placing of an
order and receipt of the goods. This can vary according to the type of product and the type
of market and industry being considered. Lead-time in the shipbuilding industry can be
measured in fractions or multiples of years, whilst in the retail sector, days and hours are
common measures. Customers make production plans based on the lead-time agreed
when the order was placed. Customers now expect that the quotation will be adhered to
and a late delivery is no longer acceptable in most purchasing situations.

Order processing
Order processing is the first of the four stages in the logistical process. The efficiency of
order processing has a direct effect on lead times. Orders are received from the sales team
through the sales department. Many companies establish regular supply routes that remain
relatively stable over a period of time providing that the supplier performs satisfactorily.
Very often contracts are drawn up and repeat orders (forming part of the initial contract)
are made at regular intervals during the contract period. Taken to its

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logical conclusion this effectively does away with ordering and leads to what is called
‗partnership sourcing‘. This is an agreement between the buyer and seller to supply a
particular product or commodity when required without the necessity of negotiating a
new contract every time an order is placed.
.
Warehousing
American business texts tend to pay more attention to warehousing than do British texts.
This is mainly because of the relatively longer distances involved in distributing in the
USA, where it can sometimes take days to reach customers by the most efficient road or
rail routes. The logistics of warehousing can, therefore, be correspondingly more
complicated in the USA than in the UK. However, the principles remain the same, and
indeed the European Union should be viewed as a large ‗home market‘. Currently, many
companies function adequately with their own on-site warehouses from where goods are
dispatched direct to customers. When a firm markets goods that are ordered regularly, but
in small quantities, it becomes more logical to locate warehouses strategically around the
country. Transportation can be carried out in bulk from the place of manufacture to
respective warehouses where stocks wait ready for further distribution to the customers.
This system is used by large retail chains, except that the warehouses and transportation
are owned and operated for them by logistics experts. Levels of service will of course
increase when numbers of warehouse locations increase, but cost will increase
accordingly. Again, an optimum strategy must be established that reflects the desired level
of service. To summarise, factors that must be considered in the warehouse equation are:
 Location of customers;
 Size of orders;
 Frequency of deliveries;
 Lead times.

Shipping documents

Exporters should seriously consider having the freight forwarder handle the formidable
amount of documentation that exporting requires as forwarders are specialists in this
process. The following documents are commonly used in exporting; but which of them
are necessary in a particular transaction depends on the requirements of the U.S.
government and the government of the importing country.

 Air freight shipments are handled by air waybills, which can never be made in
negotiable form.
 A bill of lading is a contract between the owner of the goods and the carrier (as
with domestic shipments). For vessels, there are two types: a straight bill of lading
which is nonnegotiable and a negotiable or shipper's order bill of lading. The latter
can be bought, sold, or traded while the goods are in transit. The customer usually
needs an original as proof of ownership to take possession of the goods
 A commercial invoice is a bill for the goods from the seller to the buyer. These
invoices are often used by governments to determine the true value of goods when
assessing customs duties. Governments that use the commercial invoice to control
imports will often specify its form, content, number of copies, language to be used,
and other characteristics.

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 A consular invoice is a document that is required in some countries. It describes
the shipment of goods and shows information such as the consignor, consignee,
and value of the shipment. Certified by the consular official of the foreign country
stationed here, it is used by the country's customs officials to verify the value,
quantity, and nature of the shipment.
 A certificate of origin is a document that is required in certain nations. It is a
signed statement as to the origin of the export item. Certificate of origin are
usually signed through a semiofficial organization, such as a local chamber of
commerce. A certificate may still be required even if the commercial invoice
contains the information.
 Inspection certification is required by some purchasers and countries in order to
attest to the specifications of the goods shipped. This is usually performed by a
third party and often obtained from independent testing organizations.
 A dock receipt and a warehouse receipt are used to transfer accountability when
the export item is moved by the domestic carrier to the port of embarkation and
left with the ship line for export.
 A destination control statement appears on the commercial invoice, and ocean or
air waybill of lading to notify the carrier and all foreign parties that the item can
be exported only to certain destinations.
 An export license is a government document that authorizes the export of specific
goods in specific quantities to a particular destination. This document may be
required for most or all exports to some countries or for other countries only under
special circumstances.
 An export packing list considerably more detailed and informative than a standard
domestic packing list. It an itemizes the material in each individual package and
indicates the type of package, such as a box, crate, drum, or carton. It also shows
the individual net, legal, tare, and gross weights and measurements for each
package (in both U.S. and metric systems). Package markings should be shown
along with the shipper's and buyer's references. The list is used by the shipper or
forwarding agent to determine the total shipment weight and volume and whether
the correct cargo is being shipped. In addition, U.S. and foreign customs officials
may use the list to check the cargo.
 An insurance certificate is used to assure the consignee that insurance will cover
the loss of or damage to the cargo during transit

Role play activity:

Student A: You are a seller who has to set the delivery of the following products: 10
computers for a downtown office, 5 cars in Valparaiso to be exported to Brazil, a
book in the suburbs of the city. You go to a Logistician and tell him/her what you think
the best options to deliver these products are. Answer his/her questions and pay
attention to his/her proposal. Then, decide which proposal is better, his or yours.
Student B: You are a Logistician to whom a seller goes for advice. The seller has to
set the delivery of the following products: 10 computers for a downtown office, 5 cars
in Valparaiso to be exported to Brazil, a book in the suburbs of the city. Listen to
his/her proposal, give your proposal. Then, decide which proposal is better, his or
yours.

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Week 14

1. Have you ever bought on the Internet? What was your experience?
2. Do you know someone who has had a bad experience buying on the internet? What
happened?
3. How would you improve the process of buying on the internet?
4. How would you reduce the shipping costs?
5. Draw a schema of the most appropriate purchase process, from the moment the
purchase is made online to the moment the client receives the product(s), for the
following cases;
a) An old woman who lives in a 10th floor downtown buys a refrigerator.
b) A carpenter who lives in Rancagua buys 10 pieces of carved wood with
specific sizes which are only prepared when requested.
c) A man wants to rent an industrial drill. You ran out of stock, but you can get it
from your tool supplier. Since the tool is rented, you have to deliver it and then go for it
to the man‘s house.

Homework: In groups, provide an option to deliver the following products:

300 kg. of cement, any brand.
A Toyota Yaris with a customized audio system.
15 LED TV sets.

You don‘t work for a store, you have to look where to find the products. Give the
faster and cheaper option to a potential client and hand it in as a detailed proposal
intended for a client (invent if necessary).

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Week 15

―I have purchased twice on this site. First I got a CD that cost $10 bucks, the
second time I bought some computer pieces half the price than here in Greece. You
can‘t buy big things such as musical instruments, though. It took like 6 weeks for
the products to get to my door in Athens. It worked perfectly for me.‖

―It was the first time I bought from other country. I am from Brazil. The books I
ordered were supposed to take between 6 and 8 weeks. This is the 11th week since
I made the purchase order and I‘m still waiting. I don‘t know if this is a regular
problem or it is just me the one with bad luck. I haven‘t complained to the seller
yet, but I will give them 1 more week.‖

―I just bought some computer parts. I don‘t have a credit card so I had to ask a
friend of mine for his. I bought some computer parts since I saw they were
incredibly cheap compared to Spain and to some online stores from the European
Union. The problem was that I didn‘t pay attention to the shipping: it was more or
less 80% of the price of the products. However, even after that, I paid less than if I
had bought here.‖

―I‘m from Chile. I bought some books. After 2 and a half months and not having
received them I sent an e-mail. They told me that maybe the product got lost
somewhere so they refunded the money. I had bought before with no problems, I
trust in Amazon so I re ordered the books. It was a big surprise when after another
couple of weeks I received the books from the original order. Then, after a few
weeks I received the books from the second order. I got 2 copies of each book, so I
sold them and I made a 100% profit business.‖

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International shipping (taken from Amazon.com)

Amazon.com gladly accepts orders from all around the globe. Available product lines,
shipping rates and fees may vary depending on the delivery address for your order.

Items from Amazon Marketplace can be shipped to several international regions, but
cannot be shipped to Africa, Island Nations, Israel, Latin America, or the Middle East.

Some items sold by Amazon Merchants may be shipped internationally. Amazon

Merchants set their own shipping rates and policies.

Read more about shipping to U.S. protectorates or APO, FPO, or DPO addresses.

Your packages may be subject to the customs fees and import duties of the country to
which you have your order shipped. These charges are always the recipient's
responsibility. For further details, read about Restrictions (which apply to all international
shipments) and Import Fees Deposits.

Restrictions
The following items can be shipped to almost all destinations outside the U.S.:
 books*
 DVDs
 music
 VHS videos
Additionally, some products in the following categories:
 automotive, baby, clothing, consumer electronics, health and personal care, home
and garden, industrial and scientific, jewelry, pet supplies, shoes, software,
sporting goods, tools, toys, video games, and watches can be shipped to the
following countries:
Australia, Austria, Bahrain, Belgium, Brazil, Bulgaria, Canada, Chile, China,
Colombia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France,
Germany, Greece, Hong Kong, Hungary, India, Indonesia, Ireland, Israel, Italy,
Japan, Kuwait, Latvia, Lithuania, Luxembourg, Malaysia, Malta, Mexico,
Monaco, Netherlands, New Zealand, Norway, Philippines, Portugal, Poland,
Qatar, Romania, Saudi Arabia, Singapore, Slovakia, Slovenia, South Africa,
South Korea, Spain, Sweden, Switzerland, Taiwan, Thailand, United Arab
Emirates, United Kingdom

Visit our Amazon Global Program store to browse products that are available for shipping
to these destinations.

All products shipped to these countries via Priority International Shipping, and in certain
cases product shipped via Standard or Expedited International Shipping, are included in
the Amazon Global Program and an import fees deposit is collected on them. For further
details about this service, read about the Amazon Global Program.

* Note: Books that require special handling because they are extremely heavy (for
example, multi-volume sets) cannot be shipped outside the U.S. If this is the case, it will
be noted on the product detail page.

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Limitations

For products shipped internationally, please note that any manufacturer warranty may not
be valid; manufacturer service options may not be available; product manuals,
instructions and safety warnings may not be in destination country languages; the
products (and accompanying materials) may not be designed in accordance with
destination country standards, specifications, and labeling requirements; and the products
may not conform to destination country voltage and other electrical standards (requiring
use of an adapter or converter if appropriate). You are responsible for assuring that the
product can be lawfully imported to the destination country. When ordering from
Amazon.com, the recipient is the importer of record and must comply with all laws and
regulations of the destination country.

Privacy

Your privacy is important to us, and we know that you care about how information about
your order is used and shared. We would like our international customers and customers
shipping products internationally to be aware that cross-border shipments are subject to
opening and inspection by customs authorities.
Also, we may provide certain order, shipment, and product information, such as titles, to
our international carriers, and such information may be communicated by the carriers to
customs authorities in order to facilitate customs clearance and comply with local laws.
If the order is a gift, the package is marked "Gift," but the cost of the item is still stated
on the customs form.
Customs authorities require the value of the gift item to be stated directly on the package.

Returns & Replacements

The above terms (including, if applicable, terms related to the Import Fee Deposit) also
apply to the shipment of any replacement product that might be shipped if there is a
problem with the original shipment. If you return a product to us, you will be the exporter
from the destination country. Title and risk of loss transfer to us upon receipt at our
fulfillment centers. For additional information please use the "Contact Us" form
accessible on the right-side of this page. For products sold by Merchants, please see the
applicable Merchant's return and replacement policies.

Surcharges for Heavy or Bulky Media Items

Additional shipping and handling charges apply to media items of unusual size or weight.
See the Help page for your geographical region to determine the actual surcharge amount:
Africa Europe
Asia & Pacific Israel
Atlantic & Caribbean Japan
Australia Latin America
Canada Middle East

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Customs, Duties, and Taxes

You are responsible for assuring that the product can be lawfully imported to the
destination country. When ordering from Amazon.com, the recipient is the importer of
record and must comply with all laws and regulations of the destination country. Orders
that are shipped to countries outside of the United States may be subject to import taxes,
customs duties and fees levied by the destination country. The recipient of an international
shipment may be subject to such import taxes, customs duties and fees, which are levied
once a shipment reaches your country. Additional charges for customs clearance must be
borne by the recipient; we have no control over these charges and cannot predict what
they may be. Customs policies vary widely from country to country; you should contact
your local customs office for further information. When customs clearance procedures
are required, it can cause delays beyond our original
delivery estimates.

Import Fees Deposit

The Amazon Global Program offers customers a unique service: duty and tax estimation
during checkout and customs clearance on your behalf for certain eligible countries.
When products are shipped to the eligible countries using eligible ship options included
in the Amazon Global Program, an Import Fees Deposit will be estimated and collected
for the shipment. With your authorization, such funds will be used by the carrier or
another agent to pay the Import Fees on behalf of you (or the recipient's behalf) to the
appropriate authorities of the destination country (See detail below).
Read below for the answers to further questions about the Import Fees Deposit and
applicable Terms and Conditions, and visit our Amazon Global Program store to browse
products that are available for shipping to the countries participating in the program.

Which products does the Import Fees Deposit apply to?

Items sent to eligible countries via Priority International Shipping and in certain cases via
Standard or Expedited International Shipping will have an estimated Import Fees Deposit
applied to the order. The payment of import fees is the responsibility of the importer and
is levied based on the laws of the country into which the products are being shipped.
What if the actual Import Fees are less than the Import Fees Deposit I was charged?
If the actual Import Fees (paid by carrier on behalf of the recipient to the customs and
tax authorities of the destination country) are less than the Import Fees Deposit
collected by us on your behalf, you will automatically be refunded the difference to the
payment method you used for the order. You will receive a notification e-mail to
confirm the amount of the refund. The process takes 60 days from the shipment date.

What if the actual Import Fees are more than the Import Fees Deposit I was charged?
For items sold by Amazon Export Sales, Inc., you will not be charged any additional fees
if the actual Import Fees exceed the Import Fees Deposit we estimated. For items sold by
Merchants, please check the applicable Merchant's policies.

How do you estimate the amount of the Import Fees Deposit?

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The Amazon Global Program uses software to determine the estimated duties, taxes, and
fees associated with each item in the order for the destination country selected during the
checkout process.

How can the estimated Import Fees Deposit differ from the actual import duties and
fees payable?
The Import Fees Deposit is an estimation of the taxes and duties that may apply and is
not an actual calculation of the taxes and duties. In addition, customs regulations and tax
rates applicable to certain goods may change between the date the taxes and duties were
estimated and the applicable taxes and duties on the date of entry. Also, classification of
goods in various countries and regions may be different.

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Bibliography:

http://unomasalacola.wordpress.com/2010/05/22/diccionario-de-logistica-negocios-
internacionales-espanol-ingles-espanol/

http://www.logisnet.com/es/busqueda-de-terminos/

Materials compiled and prepared by

Diego Avila S.
dieg.avila@profesor.duoc.cl

Material taken from:

Chopra, Sunil and Peter Meindl. Supply Chain Management. 2 ed. Upper Saddle River:
Pearson Prentice Hall, 2004.

SPEAR, STEVEN, Just-in-Time in practice at Toyota: Rules-in-Use for building self

diagnostic, adaptive work-systems. Working paper: 02-043. 2002. pg 7-8

RANGAN, KASTURI and BELL, MARIE. Dell Online. HBS case Nº 9-598-116.
HarvardBusiness School Publishing. 1999. pg 2-4

GUNASEKARAN A. and J, Lyu. Implementation of just-in-time in a small company: a

case study. Production, planning and contril, 1997, vol.8 nª4, 406-412. Taken from:
http://www1.umassd.edu/charlton/birc/jit-sme.pdf

http://en.wikipedia.org/wiki/Logistics

http://en.wikipedia.org/wiki/Supply_chain

http://en.wikipedia.org/wiki/SWOT_analysis

http://marketingteacher.com/lesson-store/lesson-swot.html

http://people.hofstra.edu/geotrans/eng/ch5en/conc5en/evolutionlogistics.html

http://www.askdeb.com/inventory-management/logistics/

http://www.inboundlogistics.com/cms/article/trends-june-2011/

http://www.loginstitute.ca/about_us/what_is_logistics.php

http://www.logisticsnetwork.net/articles/What%20is%20Logistics.pdf

http://www.quickmba.com/strategy/swot/

http://www.supplychainonline.com/preview/SCM106/1.html

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Duoc UC
English for Logistics
http://www.investopedia.com/terms/i/inventory.asp#axzz1hlyqIPgO

http://en.wikipedia.org/wiki/Inventory

http://www.advanced-planning.eu/advancedplanninge-237.htm

http://www.inventory-management.de/inventorymanagement-375.htm

http://en.wikipedia.org/wiki/Just_in_time_(business)

http://people.brunel.ac.uk/~mastjjb/jeb/or/jit.html

http://en.wikipedia.org/wiki/Kanban

http://tutor2u.net/business/production/just-in-time.html

http://es.scribd.com/doc/9405590/Just-in-Time-Toyota-y-Dell

http://www.learnleanblog.com/2009/07/pull-system-key-lean-concept.html

http://www.invatol.com/inventory_reduction.html

http://www.manufacturingcrossing.com/article/340004/Just-in-Time-Achieving-
Excellence-in-Manufacturing/

http://ec.europa.eu/transport/logistics/index_en.htm

http://www.unzco.com/basicguide/c10.html

Videos:
We love Logistics: http://www.youtube.com/watch?v=mRAHa_Po0Kg
JIT at McDonald‘s: http://www.youtube.com/watch?v=U84KXNuhs-I&feature=related

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