International Logistics

WHAT IS INTERNATIONAL LOGISTICS?

Management process of planning, implementing

and controlling the physical and information flows
concerned with materials and final goods from
the point of origin to the point of usage.

Management of these resources in a company’s

supply chain across at least one international
border.
Supply Chain Management
Businesses and individual
contributors involved in creating a
product, from raw materials to
finished merchandise.

Logistics
Specialized field of its own
comprised of shipping,
warehousing, courier services,
road/rail transportation and air
freight.
Steps in a typical supply chain management process
The typical steps in a supply chain process are:
1. Shareholders
2. Sales and Product Development
3. Procurement
4. Suppliers
5. Manufacturing
6. Warehouse
7. Logistics
8. Consumers
 Two Types of Activities

Inbound Logistics
More related to Material Management and Procurement where the incoming delivery of raw materials and
spare parts, from the suppliers to the manufacturing plant is called inbound logistics. It focuses on the
movement of raw materials within and to the manufacturing plant.

Outbound Logistics
Is related to Customer Service and Distribution Channels. The outward movement of final or finished
goods, from the company to the end user, is known as Outbound Logistics. It concentrates on the
transportation of finished goods or product from the company to the final consumer.
Implementation of International Logistics
The firm can implement cost saving-programs such as Just-in-
time (JIT), Electronic Data Interchange (EDI), etc.

JIT – Logistics operate under the concept of receiving raw

materials, products and parts as they are needed rather than
days or even weeks before.
Inventory Costs includes the costs to order and hold inventory as well
as to administer the related paperwork.
 Your diamond supplier is in South Africa. You get your gold from a supplier in China.
The jewelry itself is assembled in Switzerland.

· Oversight of the purchase of diamonds in South

Africa and gold necessary from China

· Arranging for the temporary warehousing of the

purchased diamonds and gold at local storage
facilities

 Arranging for the international shipping of the gold stored in China to a subsidiary
in a small Eastern European country, where the gold will be refined and prepared for
the jewelers in Geneva
· Arranging for the international shipping of the diamonds stored in South Africa to
the company's facilities in Geneva for cutting and polishing

· Arranging for the international shipping of the refined gold to the company's
Geneva facility to create rings and settings

· Once the rings are finished, arranging for their warehousing at the company's
central warehouse until they are needed to fill orders, keeping meticulous
computerized inventory records, and ensuring the facility is adequately secured

· Arranging for the shipment of an order of diamond rings to the company's flagship
Manhattan retail store

· Continued monitoring of the inventory at the retail store until the product is sold to
a customer
AS A LOGISTICS
MANAGER…