International Logistics.International logistics is the design andmanagement of a system that controls the forwardand reverse flow of materials, services, andinformation into, through, and out of theinternational corporation.Through the implementation of internationallogistics, the firm can implement cost-savingprograms such as just-in-time (JIT), electronicdata interchange (EDI), and supplier involvement.1
1 International Logistics •International 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), and supplier involvement
Three Concepts in GlobalLogisticsSystems ConceptTotal Cost ConceptTrade-offConcept
2 Three Concepts in Global Logistics Total Cost Concept Trade-off Concept Systems Concept
TheInternational Supply ChainCorporationSuppliersCustomersDomestic/lmportInboundOutbound...Domestic/ExportThroughflowSourcingMaterialsMaterialsDistributionOrderOrderOrderOrderProcessingPlacementProcessingProcessingSupplier-FirmTransportationTransportationInterfaceCostumer-FirmPhysical...MaterialsInterfaceTransportationTransportationDistributionManagementManagementPhysicalCustomerDistributionServiceManagementInventoryInventoryInventoryStorageStorageStorageManagementManagementManagement....Forward andReverse Flow of Information,Products,and Funds3
3 The International Supply Chain Physical Distribution Management Transportation Suppliers Corporation Customers Domestic/Import Sourcing Domestic/Export Distribution Inbound Throughflow Materials Outbound Materials Forward and Reverse Flow of Information, Products, and Funds Physical Distribution Management Transportation Transportation Transportation Order Processing Order Processing Order Processing Order Placement Inventory Management Materials Management Customer Service Storage Storage Storage Inventory Management Inventory Management Costumer-Firm Interface Supplier-Firm Interface
Global distribution of ...Clay figurine, Spring Festival picturesfired dough twist, kitesTransportationInventory-Packaging
4 Global distribution of . Clay figurine, Spring Festival pictures, fired dough twist, kites Transportation Inventory Packaging
Differences between Domestic andInternational Logisticsα Distanceα Currency variationProcessα Border-Crossing(additionalintermediaries)α Transportation modesα Packaging and Labeling requirementsα Infrastructure5
5 ¤Distance ¤Currency variation ¤Border-Crossing Process (additional intermediaries) ¤Transportation modes ¤Packaging and Labeling requirements ¤Infrastructure Differences between Domestic and International Logistics