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Unit 13 Global Logistics Contents Definition of Global Logistics Logistics Decisions Facing Global Operation Issues in Global Logistics Operation Definition of Global Logistics The process of negotiating, planning, and implementation of supporting logistic arrangements between nations and agencies. Logistics Decisions Facing Global Operation Uncertainty and Risks Culture and Political Uncertainty Macroeconomic Risks Supply Options Transportation and Distribution Arrangements Logistics Decisions Facing Global Operation 2. Decisions Regarding Global Logistics Strategic decisions Tactical decisions Operational decisions Issues in Global Logistics Operation Movement of product Product movement is different with international, and the impact ripples throughout the supply chain. Companies have to create flexibility to compensate for the surge. Product movement includes more than transportation. Many parties are involved with international transportation. The emerging emphasis on E-commerce makes customer orders sizes reduced. Issues in Global Logistics Operation 2. Movement of information Countries have differing requirements on documentation, for both exporting from one country and importing into another. Information must be disseminated throughout the chain; it must flow both ways. Information is more than just data movement. Issues in Global Logistics Operation 3. Time The productivity of the overseas employees and the extended shipping times can either positively or negatively affect the companys lead time. Companies must understand what service they are buying when they use an ocean carrier or freight forwarder. Longer transit times have a direct effect on lead times and cycle times and on inventory levels, both of which impact sales responsiveness and operating capital requirements. Issues in Global Logistics Operation 4. Cost Transportation cost and new costs. Some costs are charged in different currencies. There are also hidden costs with
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