CHAPTER 15 International Logistics and Supply-Chain Management

Text by Profs. M. Czinkota, I. Ronkainen, and M. Moffett Multimedia Presentation by Prof. Milton Pressley The University of New Orleans
milton.pressley@uno.edu

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LEARNING OBJECTIVES

To understand the escalating importance of international logistics and supply-chain management as crucial tools for competitiveness To learn about materials management and physical distribution To learn why international logistics is more complex than domestic logistics To see how the transportation infrastructure in hose countries often dictates the options open to the international manager To learn why inventory management is crucial for international success
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International Logistics Defined Materials Management Physical Distribution Systems Concept Total Cost Concept Trade-Off Concept

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Supply-Chain Management

Supply-chain management

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Figure 15.1 The International Supply Chain

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Supply-Chain Management

The Impact of International

Logistics

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The New Dimensions of International Logistics International Transportation Issues

Transportation Infrastructure
Ability of Modes

Logistics platform

Land bridges or sea bridges Intermodal movements Ocean Shipping

Linear service Bulk service Tramp service Container ships Roll-on-roll-off (RORO) Ports
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The New Dimensions of International Logistics Air Shipping

Airfreight

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Figure 15.2 International Airfreight 1960-2000

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The New Dimensions of International Logistics

Density

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Figure 15.3 Loading a Train on a Plane

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The New Dimensions of International Logistics

Selecting a Mode of Transport

Transit Time

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Figure 15.4 An Advertisement for Cut Flowers

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The New Dimensions of International Logistics Predictability

Cost of
Reliability Tracking

Transportation

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The New Dimensions of International Logistics Noneconomic Factors

Export Documentation and Terms
Bill of lading Straight bills of lading Shippers order Commercial invoice Freight forwarders
Preferential policies

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The New Dimensions of International Logistics

Incoterms

Terms of Shipment and Sale

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Figure 15.5 Selected Trade Terms

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The New Dimensions of International Logistics

Ex-works Free carrier (FCA) Free alongside ship (FAS) Free on board (FOB) Cost and freight (CFR) Cost, insurance, and freight (CIF) Carriage paid to (CPT) Carriage and insurance paid to (CIP) Delivered duty paid (DDP) Delivered duty unpaid (DDU)
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International Inventory Issues Inventory Carrying Costs Just-In-Time Inventory Inventory systems

Order Cycle Time Customer Service Levels Inventory as a Strategic Tool

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International Packaging Issues

Packaging must get the merchandise to the

destination in a safe, maintainable, and presentable condition Packaging That May Be Adequate for Domestic Shipping May Not Be Adequate for International Shipping

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Figure 15.6 Stresses in Intermodal Movement

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International Storage Issues

Storage Facilities

Special Trade Zones

Location Decision

Foreign trade zones Maquiladoras Special economic zones

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Management of International Logistics

Centralized Logistics Management Decentralized Logistics Management Outsourcing Logistics Services

One-Stop logistics

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Logistics and the Environment

Reverse Distribution

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