1. John Wiley & Sons, Inc c 19981 GLOBAL LOGISTICS AND DISTRIBUTION Chapter Sixteen

2. John Wiley & Sons, Inc c 19982 Global Logistics and Distribution Overview 1. Definition of Global Logistics 2. Managing Global Logistics 3. Free Trade Zones 4. Maquiladora Operation 5. U.S. Special Import Tariff Provisions 6. Global Retailing

3. John Wiley & Sons, Inc c 19983 Overview

4. John Wiley & Sons, Inc c 19984 1. Definition of Global Logistics –Exhibit 16-1 Global Logistics Global logistics Materials management Physical distribution

5. John Wiley & Sons, Inc c 19985 2. Managing Global Logistics –Distance –Exchange Rate Fluctuations –Foreign Intermediaries Modes Of Transportation –value-to-volume ratio –perishability –cost of transportation

6. John Wiley & Sons, Inc c 19986 2. Managing Global Logistics (cont) –Ocean Shipping –Air Freight –Intermodal Transportation Warehousing and Inventory Management –Hedging against Inflation or Exchange Rate Fluctuations –Benefiting from Tax Differences –Logistic Integration and Rationalization

7. John Wiley & Sons, Inc c 19987 2. Managing Global Logistics (cont) Intra-Company versus Inter-Company (Third Party) Logistic Management

8. John Wiley & Sons, Inc c 19988 3. Free Trade Zones –Exhibit 16-2 Benefits of Using a Free Trade Zone

9. John Wiley & Sons, Inc c 19989 4. Maquiladora Operation

10. John Wiley & Sons, Inc c 199810 5. U.S. Special Import Tariff Provisions

11. John Wiley & Sons, Inc c 199811 6. Global Retailing “Push” versus “Pull” On-Time Retail Information Management –Reduced Inventory –Market Information at the Retail Level Retailing Differences across the World