Chapter 1 an overview of logistics Logistics International Trade

IBS3002 Logistics International Trade IBS3002 Logistics International Trade Contemporary logistics, Murphy (2015) International logistics, David (2011) Introduction to the course Course overvi. Chapter 1 an overview of logistics Logistics International Trade

IBS3002 Logistics & International Trade Introduction to the course Course overview: Provide fundamental knowledge on international logistics in the global context Analyze activities of logistics in international trade Understand the impacts of environment on international logistics and international logistics security Understand issues occurring in logistics enterprises in international trade Contemporary logistics, Murphy (2015) & International logistics, David (2011) Introduction to the course Learning materials: Contemporary Logistics; 11th Edition; Paul R Murphy, Jr., A Michael Knemeyer; Prentice Hall (2015) International Logistics: The Management of International Trade Operations; 3rd Edition ; Pierre David and Richard Stewart, Cengage Learning (2011) Introduction to the course Introduction to the course Assessment: 20% Participation + Contribution + Mid term exam 20% Group discussion & presentation 60% Final exam Introduction to the course Wee Content k Introduction to the course Chapter – An overview of logistics Chapter – (cont) Chapter – Logistics & information technology Chapter – Demand management, order management & customer service Chapter – (cont) 10 11 12 13 14 15 Chapter – Inventory management Chapter – (cont) Chapter – Warehouse management Chapter – (cont) Chapter – Packaging for export & material handling Chapter – (cont) Chapter – International logistics Chapter – (cont) Presentation & group discussion Presentation & group discussion Introduction to the course IBS3002 Logistics & International Trade Chapter An overview of logistics Contemporary logistics, Murphy (2015) & International logistics, David (2011) Topic areas  Logistics & international logistics  Logistics & supply chain  Logistics adds value  Logistical relationships with the firm  Logistics activities  Infrastructure of international logistics Logistics  Definition: is a part of the supply chain process that plans, implements and controls the efficient and effective flow and storage of resources from the point of origin to the point of consumption in order to meet the final customer’s demands  Objective: how to get resources in the right quantity, at the right location, and at the right time? Phạm vi ảnh hưởng The historical development of logistics Global Global logistics logistics Supply Supply chain logistics chain logistics Corporate Corporate logistics logistics Facility Facility logistics logistics Workplace Workplace logistics logistics 1950 1960 1970 1980 1990 2000 10 Communication Infrastructure (Mail) • Speed In some countries, mail delivery is quick In others, very slow • Reliability In some countries, not all mail is delivered: it is lost, abandoned, or sometimes pilfered • Delays In some countries, postal unions have a lot of power and strikes can delay the delivery of important documents • Competition Firms such as FedEx, UPS, and DHL are very reliable, but they generally much more expensive than the public postal services are A high-speed postal train in France Communication Infrastructure (Telecommunications) • Land lines While some countries have reliable, inexpensive telecommunication networks phone lines, others not have good landline • Cellular phones Some countries built cellular phone networks quickly, often because they did not have a good landline network They leapfrogged the landline technology, often offering better cellular access than developed countries with reliable landline networks • Internet Access to the internet is still limited or cost prohibitive in some areas In others, internet access is fast and inexpensive • Leapfrogging Some countries never build infrastructure in one technology, and “leapfrog” into the next one Gabon in the next tables Landline Penetration Country 10 19 28 60 49 128 Hong Kong Taiwan Germany France South Korea Switzerland United Kingdom Japan Greece Belarus United States United Arab Emirates China Panama Gabon Landlines/person 61.8% 59.9% 58.2% 58.1% 57.9% 53.4% 51.6% 50.2% 48.5% 47.0% 39.9% 35.4% 18.2% 15.9% 1.0% Countries with a population of more than 1,000,000 Source: CIA’s World Fact Book Cellphone Penetration Country 10 44 51 53 96 102 United Arab Emirates Kuwait Hong Kong Gabon Saudi Arabia Oman Panama Estonia Bahrain Uruguay Taiwan Germany Japan United States China Cell phones /person 283.4% 268.3% 242.8% 207.1% 187.1% 184.8% 167.3% 166.9% 166.8% 164.1% 129.6% 123.3% 120.5% 98.0% 94.6% Countries with a population of more than 1,000,000 Source: CIA’s World Fact Book Internet Access Country 10 14 16 53 72 125 Denmark The Netherlands Bahrain Norway Qatar Finland Canada New Zealand United Kingdom South Korea Germany Japan United States China Gabon Internet Access/person 96.5% 95.2% 94.3% 93.1% 93.0% 92.8% 91.6% 89.4% 88.9% 88.1% 87.1% 86.3% 85.4% 45.6% 9.5% Countries with a population of more than 1,000,000 Source: CIA’s World Fact Book Utilities Infrastructure • Electricity Unreliable electricity grids and insufficient production capacity can cause blackouts or brownouts, limiting productivity • Water and sewer Access to clean water (and sewer) is fundamentally important for many manufacturing processes • Energy Reliable pipelines have to be available to deliver natural gas or oil products to the locations where they can be used • Theft In some areas, theft of utilities is common, making it difficult for utility companies to earn a profit and invest in new infrastructure Tangled Wires in New Delhi, India Offshore Wind Farm, the Netherlands Banking Infrastructure • Foreign currency payments The ability to quickly purchase and sell foreign currencies, either through wire transfers or currency purchases, is important to firms engaged in international trade • Methods of payment The ability of the banking partners to support alternative means of payment and to provide assistance to firms engaged in international trade is very important • Document exchanges Banks play a fundamental role in the exchange of trade documents between an exporter and an importer Business Services Infrastructure (I) • Freight forwarders Freight forwarders provide significant assistance to firms engaged in international trade by helping determine the best shipping alternatives • Customs brokers Brokers provide assistance to importers when clearing Customs • Couriers Couriers allow firms to ship documents and small parts using the “next available flight.” Business Services Infrastructure (II) • Packing services Packing services allow exporters to rely on professionals to pack goods destined for export • Multiple other services Carriers, delivery services, etc are fundamental to implement good international trade practices, and must exist for exporters to be successful Distribution Channel Infrastructure • Agents and distributors A strong network of agents and distributors allows an exporter to enter new markets and expand abroad • Retail distribution Efficient access to consumers is important to a manufacturer of consumer goods, and is not available in all countries • Advertising and promotion Advertising agencies and media allow promotional activities critical to the success of many products and services • Trade shows For most industries, trade shows present an unequaled opportunity to reach potential customers and trade partners Court Infrastructure • Speed Speedy resolution of lawsuits allows businesses to “move on.” Some countries have slow and cumbersome court processes • Arbitration Disputes can be resolved faster through arbitration The existence of experienced arbitrators is important to the conduct of business • Mediation Disputes can also be resolved through mediation, and therefore a group of mediators is often useful to resolve disputes • Fairness In some countries, the court system is perceived as corrupt or unfair, and that hinders good business relationships Intellectual Property Infrastructure • Protection Businesses with intellectual property (patents, copyrights, trade secrets) want to make sure that the countries in which they operate will protect intellectual property In some countries, competitors, police, and courts not respect nor protect intellectual property, often considering that intellectual property laws favor big foreign corporations over the local entrepreneur trying to earn a living • International Agreements Some countries have not ratified international agreements on intellectual property and therefore not recognize some aspects of foreign patents and copyrights Standards Infrastructure Countries have different standards for products and services offered for sale; these standards are specific and must be followed •Safety Safety requirements often differ from country to country Such is the case for vehicles, appliances, and hotels, for example •Design Product designs are often dictated by local conventions (electrical supply and plugs, plumbing sizes and pressures, and telecommunication standards, for example) •Performance Several countries have performance standards for products, dictating what can be called “natural,” “organic,” “premium,” and so forth ... course Chapter – An overview of logistics Chapter – (cont) Chapter – Logistics & information technology Chapter – Demand management, order management & customer service Chapter – (cont) 10 11 12 13 ... Arabia Oman Panama Estonia Bahrain Uruguay Taiwan Germany Japan United States China Cell phones /person 283.4% 268.3% 242.8% 207 .1% 18 7 .1% 18 4.8% 16 7.3% 16 6.9% 16 6.8% 16 4 .1% 12 9.6% 12 3.3% 12 0.5%... logistics logistics Facility Facility logistics logistics Workplace Workplace logistics logistics 19 50 19 60 19 70 19 80 19 90 2000 10 The historical development of logistics Workplace logistics