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International Logistics - Online Essay

International Logistics


Logistics is the designing and managing of a system in order to control the flow of material throughout a corporation. This is a very important part of an international company because of geographical barriers. Logistics of an international company includes movement of raw materials, coordinating flows into and out of different countries, choices of transportation, cost of the transportation, packaging the product for shipment, storing the product, and managing the entire process. The concept of logistics is fairly new in the business world. The theoretical development was not used until 1966. Since then, many business practices have evolved and logistics currently costs between 10 ...

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to maintain a cost effective flow of goods.
There are four logistics concepts: the systems concept, the total cost concept, the after-tax concept, and the trade-off concept. The systems concept is based on all functions of a organization working together in order to maximize benefits. This concept sometimes requires certain components of the organization to operate suboptimally in order to achieve maximum goals of the system. The total cost concept is based on the systems concept, however goal achievement is measured in terms of cost. A variation of the total cost concept is the after-tax concept. This goal of this concept is after-tax profit. This concept is becoming very popular because of the many different national tax policies. The trade-off concept links the system together in a way that is very efficient, but can have
trade-offs that might be inefficient. The advantages of such high efficiency must be weighed against the risk involved.
One of the largest obstacles ...

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quantities.

The type of ocean service you use also depends on where the material must go. Certain types of ships can only go to certain places, and certain ships can only carry a certain type of freight. All alternatives must be fully researched before ocean service can
be considered as a valid option. The biggest advantage of ocean shipping is cost. Typically, ocean service is the least costly option, however is also has the slowest travel time. Accidents are infrequent, however if one would happen, large quantities of material
are lost all at once. Certain operations could not sustain long periods of down-time caused by lost goods, which could prove devastating. ...

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"International Logistics." Essayworld.com. May 26, 2007. Accessed December 23, 2024. http://www.essayworld.com/essays/International-Logistics/65463.
"International Logistics." Essayworld.com. May 26, 2007. Accessed December 23, 2024. http://www.essayworld.com/essays/International-Logistics/65463.
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PAPER DETAILS
Added: 5/26/2007 06:49:42 PM
Category: Miscellaneous
Type: Premium Paper
Words: 1317
Pages: 5

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