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CHAPTER 1

CHAPTER 1. Introduction to International Logistics. Logistics: What It Is. Council of Logistics Management definition:

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CHAPTER 1

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  1. CHAPTER 1 Introduction to International Logistics

  2. Logistics: What It Is • Council of Logistics Management definition: “Logistics is that part of the supply chain process that plans, implements, and controls the efficient, effective forward and reverse flow and storage of goods, services, and related information between the point of origin and the point of consumption in order to meet customers’ requirements.” Source: clm1.org

  3. The Goal of Logistics • Rapid Response • Minimum Variance • Minimum Inventory • Movement Consolidation • Quality • Life Cycle Support

  4. The Overall Goal of Logistics • to achieve a targeted level of customer service at the lowest possible cost.

  5. Other Terms (1) • Materials Management • Physical Distribution • Business Logistics • inbound logistics • operations logistics • outbound logistics

  6. Control Over the Flow of Inbound and Outbound Movements

  7. Other Terms (2) • Integrated Logistics • + Suppliers and Customers • Figure: p.9 • International Logistics • Special for reasons of • Business Environment • Cultures

  8. The Cost of the Business Logistics System In Relation to Gross Domestic Product (GDP) In $ Billion Source: R. Wilson and R. Delaney, Twelfth Annual State of Logistics Report, 2001

  9. Three Factors for Spending on Logistics • Level of Economic Activity • Efficiency • From goods and Toward Services

  10. Regional Logistics Assessment • Geography • Physical Infrastructure • Legal/Business Infrastructure • Two Countries Compared -P.15

  11. The Three Logistics Environments • military • Business • civil

  12. Three Channels for Performance Cycle • Transaction • Distribution • Documentation / communication

  13. Transportation • The Role of Transportation • Three Perspectives to Transportation • Shippers • Carriers • consignees

  14. Brief History of Logistics and Transportation • Military term • Why logistics is now a well-recognized Profession?

  15. Regional Trading Agreements I • The European Union (EU) • A unified economic and trade entity • Belgium, Denmark, France, Greece, Ireland, Italy, Luxembourg, the Netherlands, Portugal, Spain, the United Kingdom, Germany, Austria, Finland, and Sweden • Economic and monetary union (Euro) • North American Free Trade Agreement (NAFTA) • Eliminated barriers to free trade (tariffs, import licensing requirements, and customs user fees) • United States, Canada, and Mexico

  16. European Union Countries

  17. Regional Trading Agreements II • Free Trade Area of the Americas • Southern Cone Common Market (Mercosur) • Association of Southeast Asian Nations (ASEAN) • Trading alliance of 10 Southeast Asian nations • African Union

  18. ASEAN Members

  19. The World Trade Organization (WTO) • Evolved from the General Agreement on Tariffs and Trade (GATT) in 1995. • Functions as the only global organization dealing with the rules of trade among nations. • Has 145 member nations. • Monitors and promotes world trade.

  20. Incoterms 2000 –p31 • E: • EX-Works (EXW) • F • FCA (Free Carrier) • FAS (Free Alongside Ship) • FOB (Free on Board) • C • CFR (Cost and Freight) • CIF (Cost, Insurance, and Freight) • CPT (Carriage Paid To) • CIP (Carriage and Insurance Paid To)

  21. Incoterms 2000 –p31 • D • DAF (Delivered at Frontier) • DES (Delivered Ex Ship) • DEQ (Delivered Ex Quay) • DDU (Delivered Duty Unpaid) • DDP (Delivered Duty Paid)

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