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CHAPTER13GlobalLogisticsCopyright©2001byTheMcGraw-HillCompanies,Inc.Allrightsreserved.McGraw-Hill/Irwin13-2ComparisonofDomesticandInternationalLogisticsCostTransportmodeInventoriesAgentsFinancialriskCargoriskGovernmentagenciesAdministrationCommunicationCulturaldifferencesAbout10%ofU.S.GDPtodayMainlytruckandrailLowerlevels,reflectingshort-order,lead-timerequirementsandimprovedtransportcapabilitiesModestusage,mostlyinrailLowLowPrimarilyforhazardousmaterials,weight,safetylaws,andsometariffrequirementsMinimaldocumentationinvolved(e.g.,purchaseorder,billoflading,invoice)Voice,paper-basedsystemsadequate,withgrowingusageofelectronicdatainterchangeandInternetRelativehomogeneityrequireslittleproductmodificationEstimatedat16%ofworldGDPtodayMainlyoceanandair,withsignificantintermodalactivityHigherlevels,reflectinglongerleadtimesandgreaterdemandandtransituncertaintyHeavyrelianceonforwarders,consolidators,andcustomsbrokersHigh,owingtodifferencesincurrencies,inflation,levelsandlittlerecoursefordefaultHigh,owingtolongerandmoredifficulttransit,frequentcargohandling,andvaryinglevelsofinfrastructuredevelopmentManyagenciesinvolved(e.g.,customs,commerce,agriculture,transportationSignificantpaperwork;theU.S.DepartmentofCommerceestimatesthatpaperworkcostforanaverageshipmentis$250Voiceandpapercostlyandoftenineffective;movementtowardelectronicinterchangebutvariationsinstandardshinderwidespreadusageCulturaldifferencesrequiresignificantmarketandproductadaptationDomesticInternationalCopyright©2001byTheMcGraw-HillCompanies,Inc.Allrightsreserved.McGraw-Hill/Irwin13-3InternationalMarketEntryStrategies•Exporting•Licensing•Jointventures•Ownership•Importing•CountertradeCopyright©2001byTheMcGraw-HillCompanies,Inc.Allrightsreserved.McGraw-Hill/Irwin13-4MajorParticipantsinanInternationalLogisticsTransactionDomesticsellerExportfacilitatorsInlandtransportationcarrierDomesticportorterminalofexitForeignportorterminalofentryInternationalcarrier(air,water)ForeigninlandtransportationcarrierForeignbuyerDomesticbankDomesticgovernmentagenciesForeigngovernmentagenciesForeignbankInformationflowProductmovementCopyright©2001byTheMcGraw-HillCompanies,Inc.Allrightsreserved.McGraw-Hill/Irwin13-5HowDutyDrawbacksWork1)U.S.carmanufacturerissuespurchaseordertoGermanpartsmanufacturer.2)Germanmanufacturerreceivespurchaseorder;manufacturesparts.3)GermanpartsshippedviaoceanenterU.S.port;importerpaysdutyatportofentrytoU.S.Customs.4)U.S.manufacturerproducescarsusingU.S.-madeandGermanparts.5)U.S.manufacturershipscarstoportofexport;filesdocumentaryproofoforiginalimportandsubsequentmanufacturetocollectrefund.6)ExportcarscontainingU.S.-madeandGermanpartstoAustralia;provideproofofexporttoU.S.Customs.Source:AdaptedfromLisaH.Harrington,“HowtoTakeAdvantageofDutyDrawback,”TrafficManagement28,no.6(June1989),p.121A.Copyright©2001byTheMcGraw-HillCompanies,Inc.Allrightsreserved.McGraw-Hill/Irwin13-6TheGlobalLogisticsEnvironmentLogisticsexecutiveCustomerserviceOtheractivitiesWarehousingandstorageTransportationPackagingInventoryCompetitionCopyright©2001byTheMcGraw-HillCompanies,Inc.Allrightsreserved.McGraw-Hill/Irwin13-7RespondingtoCompetitionwithLogistics•Increasingthenumberofcross-nationalpartnerships,alliances,mergers,and/oracquisitions.•Expansionofmanypreviouslydomestic-basedorganizationsintointernationalmarkets.•Developmentofglobalcommunicationsnetworksoperating24hoursaday.•Establishmentofcountryandregionalwarehousesinmajorworldmarkets.•Identifyinganddevelopingrelationshipswithlogisticsserviceprovidersthatoffertransportation,storage,materialshandling,andotherservicesonaglobalbasis.Copyright©2001byTheMcGraw-HillCompanies,Inc.Allrightsreserved.McGraw-Hill/Irwin13-8ExportingCompanies•Exportdistributor•Customshousebroker•Internationalfreightforwarder•Tradingcompany•Non-vessel-operatingcommoncarrier(NVOCC)Copyright©2001byTheMcGraw-HillCompanies,Inc.Allrightsreserved.McGraw-Hill/Irwin13-9HowNVOCCsWorkaLCLshipperLCLshipperLCLshipperLCLshipperLCLshipperNVOCCBillofladingLessthancontainerload(LCL)shipmentsFullcontainerCopyright©2001byTheMcGraw-HillCompanies,Inc.Allrightsreserved.McGraw-Hill/Irwin13-10HowNVOCCsWork(cont.)NVOCCConsigneeConsigneeConsigneeConsigneeConsigneeLessthancontainerload(LCL)shipmentsFullcontainerBilloflading13-9b
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