Thursday,
November 8
Global Logistics
Suppliers ßà
Firm ßà
Customers
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Materials management
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Physical distribution
Differences between domestic and international logistics
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Longer distances
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Currency variations
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Border-crossing process: customs (foreign trade zones,
maquiladora operations)
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Packaging and labeling issues
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Transportation modes
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Infrastructure and transportation services available
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Local setup
Global Logistics Decision Areas
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Traffic or transportation management
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Inventory control
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Order processing
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Materials handling and warehousing
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Fixed facilities location management
Service levels determined by Global Logistics Goals
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Maximization of the number of orders shipped compared
to the number of orders received
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Minimization of the time between order submission and
actual order shipment
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Minimization of the variance between promised delivery
and actual delivery
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Minimization of damage in transit
Different modes of transportation
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Service: liner, bulk, and tramp or charter
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Type of cargo: cargo vessel, container ships, Roll-on-roll-off
(RORO) and lighter aboard ship (LASH)
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Used extensively for transport of heavy, bulky, or nonperishable
items
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Growing business
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Available to and from anywhere
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Small, high-value, high-density items
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Technological advancement
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Barges
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Commodities
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Frequently used in smaller countries
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Need for developed waterways
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Cheap alternative to roads
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Good compatibility with other modes
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Pipelines
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Cheap alternative
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Oil and natural gas
Factors considered when choosing a mode of transportation
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Transit time (perishability issues)
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Cost (value-to-volume ratio)
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Predictability
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Reliability
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Capability
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Accessibility
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Government intervention
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Service level desired
Export Documentation
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Bill of lading (transportation)
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Commercial invoice (customs)
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Export licenses
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Consular invoices
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Certificates or origin
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Inspection certification
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Dock and/or warehouse receipts
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Destination control statements
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Insurance certificates
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Shipper’s export declarations
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Export packaging lists
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Letters of credit
Terms of Shipment
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Ex-works
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FCA (free-carrier)
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Free alongside ship (FAS)
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Free on board (FOB)
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Cost and Freight (CFR)
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Cost, Insurance and Freight (CIF)
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Carriage paid to (CPT)
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Carriage and insurance paid to (CIP)
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Delivered Duty Paid (DDP)
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Delivered Duty Unpaid (DDU)
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