© 2002 Thomson Learning, Inc. CHAPTER 15 International Logistics and Supply-Chain Management Text by Profs. M. Czinkota, I. Ronkainen, and M. Moffett Multimedia Presentation by Prof. Milton Pressley The University of New Orleans

© 2002 Thomson Learning, Inc. To understand the escalating importance of international logistics and supply-chain management as crucial tools for competitiveness To understand the escalating importance of international logistics and supply-chain management as crucial tools for competitiveness To learn about materials management and physical distribution To learn about materials management and physical distribution To learn why international logistics is more complex than domestic logistics To learn why international logistics is more complex than domestic logistics To see how the transportation infrastructure in hose countries often dictates the options open to the international manager To see how the transportation infrastructure in hose countries often dictates the options open to the international manager To learn why inventory management is crucial for international success To learn why inventory management is crucial for international success LEARNING OBJECTIVES

© 2002 Thomson Learning, Inc. International Logistics Defined Materials Management Materials Management Physical Distribution Physical Distribution Systems Concept Systems Concept Total Cost Concept Total Cost Concept Trade-Off Concept Trade-Off Concept © PhotoDisc

© 2002 Thomson Learning, Inc. Supply-Chain Management Supply-chain management Supply-chain management © PhotoDisc

© 2002 Thomson Learning, Inc. Figure 15.1 – The International Supply Chain

© 2002 Thomson Learning, Inc. Supply-Chain Management The Impact of International Logistics The Impact of International Logistics © PhotoDisc

© 2002 Thomson Learning, Inc. The New Dimensions of International Logistics International Transportation Issues International Transportation Issues Transportation Infrastructure Transportation Infrastructure Logistics platform Logistics platform Ability of Modes Ability of Modes Land bridges or sea bridges Land bridges or sea bridges Intermodal movements Intermodal movements Ocean Shipping Ocean Shipping Linear service Linear service Bulk service Bulk service Tramp service Tramp service Container ships Container ships Roll-on-roll-off (RORO) Roll-on-roll-off (RORO) Ports Ports © PhotoDisc

© 2002 Thomson Learning, Inc. The New Dimensions of International Logistics Air Shipping Air Shipping Airfreight Airfreight © PhotoDisc

© 2002 Thomson Learning, Inc. Figure 15.2 – International Airfreight

© 2002 Thomson Learning, Inc. The New Dimensions of International Logistics Density Density © PhotoDisc

© 2002 Thomson Learning, Inc. Figure 15.3 – Loading a Train on a Plane

© 2002 Thomson Learning, Inc. The New Dimensions of International Logistics Selecting a Mode of Transport Selecting a Mode of Transport Transit Time Transit Time © PhotoDisc

© 2002 Thomson Learning, Inc. Figure 15.4 – An Advertisement for Cut Flowers

© 2002 Thomson Learning, Inc. The New Dimensions of International Logistics Predictability Predictability Reliability Reliability Tracking Tracking Cost of Transportation Cost of Transportation © PhotoDisc

© 2002 Thomson Learning, Inc.

The New Dimensions of International Logistics Noneconomic Factors Noneconomic Factors Preferential policies Preferential policies Export Documentation and Terms Export Documentation and Terms Bill of lading Bill of lading Straight bills of lading Straight bills of lading Shipper’s order Shipper’s order Commercial invoice Commercial invoice Freight forwarders Freight forwarders © PhotoDisc

© 2002 Thomson Learning, Inc. The New Dimensions of International Logistics Terms of Shipment and Sale Terms of Shipment and Sale Incoterms Incoterms © PhotoDisc

© 2002 Thomson Learning, Inc. Figure 15.5 – Selected Trade Terms

© 2002 Thomson Learning, Inc. The New Dimensions of International Logistics Ex-works Ex-works Free carrier (FCA) Free carrier (FCA) Free alongside ship (FAS) Free alongside ship (FAS) Free on board (FOB) Free on board (FOB) Cost and freight (CFR) Cost and freight (CFR) Cost, insurance, and freight (CIF) Cost, insurance, and freight (CIF) Carriage paid to (CPT) Carriage paid to (CPT) Carriage and insurance paid to (CIP) Carriage and insurance paid to (CIP) Delivered duty paid (DDP) Delivered duty paid (DDP) Delivered duty unpaid (DDU) Delivered duty unpaid (DDU) © PhotoDisc

© 2002 Thomson Learning, Inc. International Inventory Issues Inventory Carrying Costs Inventory Carrying Costs Just-In-Time Inventory Just-In-Time Inventory Inventory systems Inventory systems Order Cycle Time Order Cycle Time Customer Service Levels Customer Service Levels Inventory as a Strategic Tool Inventory as a Strategic Tool © PhotoDisc

© 2002 Thomson Learning, Inc. International Packaging Issues Packaging must get the merchandise to the destination in a safe, maintainable, and presentable condition Packaging must get the merchandise to the destination in a safe, maintainable, and presentable condition Packaging That May Be Adequate for Domestic Shipping May Not Be Adequate for International Shipping Packaging That May Be Adequate for Domestic Shipping May Not Be Adequate for International Shipping © PhotoDisc

© 2002 Thomson Learning, Inc. Figure 15.6 – Stresses in Intermodal Movement

© 2002 Thomson Learning, Inc. International Storage Issues Storage Facilities Storage Facilities Location Decision Location Decision Special Trade Zones Special Trade Zones Foreign trade zones Foreign trade zones Maquiladoras Maquiladoras Special economic zones Special economic zones © PhotoDisc

© 2002 Thomson Learning, Inc. Management of International Logistics Centralized Logistics Management Centralized Logistics Management Decentralized Logistics Management Decentralized Logistics Management Outsourcing Logistics Services Outsourcing Logistics Services One-Stop logistics One-Stop logistics © PhotoDisc

© 2002 Thomson Learning, Inc. Logistics and the Environment Reverse Distribution Reverse Distribution © PhotoDisc