role of global logistics
DESCRIPTION
Role of global logistics a 25 slide ultimate overlook to understand its features,advantages.disadvantages..etc.. enjoy..!!TRANSCRIPT
MANAGING GLOBAL LOGISTICS.
MANAGING
GLOBAL LOGISTIC
S
ROLE OF GLOBAL LOGISTICS
GLOBALIZATION HELPED IN DOING BUSINESS BEYOND THE NATIONAL BOUNDARIES.
THE WORLD HAS BECOME A GLOBAL VILLAGE IN A REAL SENSE.
INTERNET HAS MADE EASIER TO DO BUSINESS ACROSS THE GLOBE.
CARGO MOVEMENTS NEEDS TO BE DONE PHYSICALLY.USING AVAILABLE MEANS OF TRANSPORT.
SPEED & EFFICIENCY IN THE MOVEMENT OF GOODS IS FOCUSED MORE.
PHYSICAL MOVEMENT OF CARGO, INTERMEDIARIES,FREIGHT FORWARDERS,CUSTOM HOUSE IS INDESPENSIBLE.
ROLE OF GLOBAL LOGISTICS
DOMAIN KNOWLEDGE , CONNECTIVITY , DOCUMENTATION ARE THREE CRUCIAL AREAS.
GLOBAL OPERATIONS OF BUSINESS INCREASES THE COMPLEXITY OF LOGISTICS.
EFFECTS ON THE COST OF MOVING THE GOODS & SERVICING CUSTOMERS.
DECREASE IN THE CONTROL OVER MOVEMENT OF GOODS IS BASICALLY A CHALLENGE IN GLOBAL LOGISTICAL OPERATIONS.
TRANSPORTATION
THREE MODES OF TRANSPORT AVAILABLE.
THEY ARE ROAD , SEA AND AIR.
IT IS DEPENDING ON THE COST , URGENCY AND DESTINATION.
MOST PREFERRED MODES OF TRANSPORT ARE “SEA” AND “AIR”.
IN THE INDIAN SUB-CONTINENT ROADS ARE IMPORTANT MODE.
IN EUROPE,RAILWAYS ARE THE IMPORTANT MODE BECAUSE OF THE AVAILABILITY OF A MODERN AND EFFICIENT TRAIN NETWORK.
HOW TO SELECT A PROPER TRANSPORTATION MODES.
LOCATION OF THE MARKET
RELIABILITY OF MODE
SELECTION FACTORS ON THE
BASIS OF
BASICS PROPER MODES OF SELECTION
LOCATION OF MARKET IS THE MOST IMPORTANT MODE OF TRANSPORTATION.
IN MIDDLE AND EAST INDIAN COUNTRIES IT IS THE MOST IMPORTANT MODE OF TRANSPORTATION.
IT IS THE MOST CONVENIENT MODES FOR SHIPS , AND FOR BULK CARGO AND AIRPLANES , FOR HIGH VALUE CARGO
EXAMPLES OF BULK CARGO ARE STEEL, FOODGRAINS, ORES, MINERALS.
EXAMPLES OF HIGH VALUE CARGO ARE JEWELLERY, ELECTRONIC GOODS.
THE SPEED FACTOR
IT REFERS TO DELIVERY OF CARGO INI SHORTEST POSSIBLE TIME.
FASTEST MODE IS AIR, BUT THE COST OF AIR MODE IS VERY HIGH.
EXAMPLES OF AIR TRANSPORTATION MODE ARE FLORICULTURAL AND HORTICULTURAL PRODUCTS.
PERISHABLE GOODS NEED AIR TRANSPORTATION TO REDUCE SPOILAGE.
THE NEED IN TERMS OF TIME AND AVAILABILITY OF OPPORTUNITY COST.
COST OF TRANSPORTATION.
THE COST OF TRAVEL IS DIRECTLY PROPORTIONAL TO THE SPEED OF TRAVEL.
AIR TRANSPORTATION IS THE COSTLIEST.
AIR TRANSPORTATION NEEDS LESS PACKAGING.
SEA TRANSPORTATION NEEDS ACCURATE AND RIGID PACKAGIING.
DUE TO SPEED , INVENTORY TRANSIT IS LESS AND THAT TO FOR A SHORTER PERIOD OF TIME.
FACTORS IN AIR AND SEA TRANSPORTATION.
AIR CARGO NEEDS LESS PACKAGING AND LESS HANDLING.
HANDLING COST IS LESS DUE TO AIR TRANSPORT.
AIR TRANSPORT HAS SHORT JOURNEY PERIOD VIA AIR.
SEA CARGO NEEDS GOOD AND EFFICIENT PACKAGING.
LONG JOURNEY VIA..SEA, SO TRAVELLING AND HANDLING IS MORE.
PACKAGING COST OF SEA CARGO IS VERY HIGH.
TOTAL COST INVOLVED IN MODES OF TRANSPORTATION.
IN INDIA, GLOBAL TRANSPORTATION TAKES PLACE ON A LARGER ACCOUNT..
AIR CARGO ACCOUNTS LESS THAN 1% OF THE TOTAL CARGO MOVEMENT.
RAILWAYS CONTRIBUTE 35% OF THE TOTAL CARGO MOVEMENT.
ROADS CONTRIBUTE 39% THE TOTAL CARGO MOVEMENT.
SEA CONTRIBUTE 24% OF THE TOTAL CARGO MOVEMENT.
THE CHOICE DEPENDS ON URGENCY ON THE CUSTOMERS END.
COMPARATIVE HAZARDS OF TRANSPORTATION MODES.
AIR HAZARDS ARE VARIATION IN CHANGES OF TEMPERATURE AND PRESURRE.
SEA HAZARDS ARE WATER DAMAGE, CORROSIVE ATMOSPHERE, WAVE IMPACTS, HOSTILE STORAGE CONDITION.
ROAD/RAIL HAZARDS ARE SHOCKS, VIBRATION, CARELESS HANDLING, IMPACT DUE BREAKING, TRANS-SHIPMENTS.
OPPORTUNITIES IN GLOBAL LOGISTICS.
MARKET DIFFERENTIATION.
INCREASE MARKET SHARE.
FIRMER CUSTOMER PENETRATION.
HIGHER PRIFITS.
MEET REAL CUSTOMER NEEDS.
MOVE AWAY FROM PRICE PRESSURES
GLOBAL LOGISTICS CHALLENGES.
PERFORMANCE CYCLE
• LONGER PERIOD DUE TO GREATER DISTANCE, CUSTOM CLEARANCE, INTERMEDIARIES, MORE USE OF SLOW SEA LEVEL.
GLOBAL LOGISTICS CHALLENGES.
DOCUMENTATION
• COMPLEX ( FOR CUSTOMS, BANKING AND FOREIGN EXCHANGE CLEARANCE REQUIREMENTS.
GLOBAL LOGISTICS CHALLENGES.
ALLIANCES
• MULTIPLE ON GLOBAL FRONT WITH LOGISTICS SERVICE PROVIDERS, DISTRIBUTORS AND MANUFACTURERS.
GLOBAL LOGISTICS CHALLENGES.
INFORMATION FLOW.
• MULTIPLE CHANNELS, VARIED STANDARDS, ALTERNATIVE LANGUAGES.
SOME COMMON CHALLENGES FACED.
LONGER / GREATER DISTANCE TO COVER
CUSTOMS CLEARANCE
MORE INTERMEDIARIES.
MULTIPLE CHANNELS, VARIED STANDARDS, ALTERNATIVE LANGUAGE.
SECURITY IN TRANSPORTATION MODE VIA SEA.
INSURANCE OPEN BLANKET COVERAGE.
FIRE AND SEA PERILS
FREE OF DAMAGE INSURANCE
NAMED PERILS.
FIRE AND SEA PERILS WITH AVERAGE.
ALL RISK INSURANCE.
HEART OF GLOBAL LOGISTICS.
INTER-MEDIARIES
FREIGHT -
FORWARD
CUSTOM-
HOUSE
BROKER
DOCUMENTATION
EXPORT
LICENSE
COMMERCIA
L – INVOICE
CERTIFICATE
OF ORIGI
N.
ROLE OF INTERMEDIARIES.
THE ROLE OF INTERMEDIARIES IS CRUCIAL AND PERVASIVE IN CROSS-BORDER TRADE.
THEY ARE BASICALLY LOGISTICAL SERVICE PROVIDERS.
THEY ARE EXPERTS IN CUSTOM CLEARANCE, EXPORT/IMPORT DOCUMENTAION.
CARGO MOVEMENT IN THE COUNTRY OF DESTINATION IS CO-ORDINATED BY THEIR BUSINESS ASSOCIATES IN THAT COUNTRY.
DOCUMENTATION PLAYS A VERY IMPORTANT ROLE IN INTERNATIONAL TRADE.
ROLE OF FREIGHT FORWARDER.
ROLE OF FREIGHT FORWARDER IS TO FORWARD FREIGHT LOCALLY OR INTERNATIONALLY.
TRAFFIC OPERATIONS, THAT IS, CHOOSING THE RIGHT MODE AND CARRIER FOR A GIVEN DESTINATION.
CUSTOM CLEARANCE OF CARGO AS PER THE REGULATIONS AT THE PORT OF SHIPMENT.
CUSTOM CLEARANCE AND DOCUMENTATION AT THE PORT OF DESTINATION.
CARGO MOVEMENT AND HANDLING AT THE PORT OF ENTRY AND DESTINATION.
ASSITANCE PROVIDED BY FREIGHT FORWARDERS.
ON FREIGHT COST
ON PORT CHARGES
COST OF DOCUMENTA
TION
INSURANCE COST
FORWARDING CHARGES
PACKAGING REQUIREMEN
TS
DOCUMENTS REQUIRED
DOCUMENTATION REQUIRED
EXPORT LICENCE
COMMERCIAL INVOICE
CERTIFICATE OF ORIGIN
INSPECTION CERTIFICATE
INSURANCE CERTIFICATEPACKING LIST
DOCK RECEIPT
AIR WAYBILL
BILL OF LADING
FREE TRADE ZONES
FREE TRADE ZONES FACILITATE TRANSACTIONS AND SMOOTH PHYSICAL FLOW OF GOODS.
THESE ZONES DO NOT REQUIRE CUSTOMS FORMALITIES FOR INWARD AND OUTWARD MOVEMENT OF GOODS.
THEY ARE WEARHOUSING HUBS FOR MNCs FOR DISTRIBUTION ACROSS WORLD MARKETS.
EXAMPLES:- JUBEL ALI IN SAUDI ARABIA AND HONG-KONG ON THE SOUTH EAST COAST.
THESE ARE TWO MAIN FREE TRADE ZONES IN ASIA FOR INTERNATIONAL TRADE.
JEBEL ALI – SAUDI ARABIA FREE TRADE ZONE.