1. Introduction to International Logistics
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

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

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

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

7. Control Over the Flow of Inbound and Outbound Movements

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

9. The Cost of the Business Logistics System In Relation to Gross Domestic Product (GDP) In $ Billion
Year
Inventory Carrying Costs
Transportation Costs
Administrative Costs
Total U.S. Logistics Cost
Logistics As a Percentage of GDP
1960 31 44 3 78
14.7
1965 38 64 4
106
1970 56 91 6
153
1975 97
116 9
222
13.5
1980
220
214 17
451
16.1
1985
227
274 20
521
12.4
1990
283
351 25
659
11.4
1995
302
441 30
773
10.4
2000
377
590 39
1,006
10.1
Source: R. Wilson and R. Delaney, Twelfth Annual State of Logistics Report, 2001

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

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

12. The Three Logistics Environments
military
Business
civil

13. Three Channels for Performance Cycle
Transaction
Distribution
Documentation / communication

14. Transportation The Role of Transportation
Three Perspectives to Transportation
Shippers
Carriers
consignees

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

16. 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

17. European Union Countries

18. 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

19. ASEAN Members

20. 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.

21. Incoterms 2000 –p31 E: F C EX-Works (EXW) 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)

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