1. Chapter 8: LOGISTICS Fundamentals of International Business Copyright © 2010 Thompson Educational Publishing, Inc. - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - CHAPTER 8: Logistics Part 4

2. Chapter 8 Overview Types of Logistics Supply Chain Issues in the Supply Chain Culminating Activity Section 5: Marketing&Logistics Modes of Transportation LOGISTICS

3. Chapter 8: LOGISTICS Fundamentals of International Business Copyright © 2010 Thompson Educational Publishing, Inc. Issues in the Supply Chain Issues in the supply chain include:  ________ of sources  _____prices  ___________  Unstable _____________________  _______________

4. Chapter 8: LOGISTICS Fundamentals of International Business Copyright © 2010 Thompson Educational Publishing, Inc. Getting Help with the Supply Chain Sources of help for Canadian businesses:  Department of Foreign Affairs and International Trade (foreign market reports)  The Canadian Trade Index (sourcing decisions)  Frasers (industrial database)  Customs brokers (customs, duties, import regulations)  Industry Canada (assists Canadian businesses compete)  Canada Border Services Agency (people in/out of country)

5. Chapter 8 Overview Types of Logistics Supply Chain Issues in the Supply Chain Culminating Activity Section 5: Marketing&Logistics Modes of Transportation LOGISTICS

6. INTERNATIONAL MODES OF TRANSPORTATION  Motorized Carrier  __________  Ocean Freight  Air Freight  ___________

7. Chapter 8: LOGISTICS Fundamentals of International Business Copyright © 2010 Thompson Educational Publishing, Inc. Supply Chain - Physical Distribution Carrier A company hired to transport goods. _________________ The official document that indicates that a transportation company accepts goods for shipment. It describes the items being shipped, lists their quantity and weight, gives the value of the shipment, and provides the name, billing address, and shipping address of the buyer.

8. ___________________  A bill of lading is a document issued by the carrier which serves as a receipt for the goods delivered to a designated person or to his order.  The bill of lading describes the conditions under which the carrier accepts the goods and details of the nature and quantity of the goods, identifying marks and numbers, destination, etc.  The person sending the goods is the "shipper" or "consignor," the company transporting the goods is the "carrier", and the person for whom the goods are destined is the "consignee".  Bills of lading may be negotiable or non-negotiable. If negotiable (i.e., payable to the shipper's order and properly endorsed) title to the goods passes upon delivery of the bill of lading.

9. Chapter 8: LOGISTICS Fundamentals of International Business Copyright © 2010 Thompson Educational Publishing, Inc. Methods of Physical Distribution in the Supply Chain The _____________ of a carrier depends on several different factors:  What is being shipped  ________of the shipment  Speed of delivery required  _______of the carrier  Destination of the shipment

10. Chapter 8: LOGISTICS Fundamentals of International Business Copyright © 2010 Thompson Educational Publishing, Inc. Methods of Physical Distribution in the Supply Chain Motorized carriers—trucks, vans, motorcycles  The cost of shipping a _____________is lower than shipping a __________________  Many motorized carriers offer freight consolidation, where goods from different sellers (shippers) are stored in a warehouse until there is an FTL of goods bound for a particular destination. Used under license from Shutterstock, Inc

11. Chapter 8: LOGISTICS Fundamentals of International Business Copyright © 2010 Thompson Educational Publishing, Inc. Methods of Physical Distribution in the Supply Chain _______________  Trains are _______________than truck transport and have a more limited range  Ideal for __________distances and much cheaper than truck transport  Can carry materials from ports to inland cities Used under license from Shutterstock, Inc

12. Chapter 8: LOGISTICS Fundamentals of International Business Copyright © 2010 Thompson Educational Publishing, Inc. Methods of Physical Distribution in the Supply Chain Ocean freight  Used by importers and exporters that deal with businesses on other _____________  Inexpensive but ____________, and must be used with at least one other carrier, as ships cannot go door to door Air freight  Very _________, but very ____________  Weight restrictions limit size of air shipments

13. Chapter 8: LOGISTICS Fundamentals of International Business Copyright © 2010 Thompson Educational Publishing, Inc. Supply Chain - Physical Distribution Inbound distribution The process of _____________ goods that are sent to a company. Receiving process The established system that a receiving manager uses to _____________________________________________ Includes: inspecting containers for obvious physical damage, making sure that all of the containers have arrived, assigning stock numbers (SKUs) to new items, and recording the location of each item (for example, warehouse, selling floor).

14. Chapter 8: LOGISTICS Fundamentals of International Business Copyright © 2010 Thompson Educational Publishing, Inc. Supply Chain - Physical Distribution ______________________ The process of arranging the shipment of goods from a company to its customers. Normally, the seller is responsible for arranging the shipment of goods to the buyer. Ex Works (EXW) Term of sale that indicates that the _________________ for carrier selection, customs documents, and all charges.

15. Chapter 8: LOGISTICS Fundamentals of International Business Copyright © 2010 Thompson Educational Publishing, Inc. Methods of Physical Distribution in the Supply Chain _____________________ The use of standard-sized reusable metal boxes, designed to fit on top of each other, to store and ship freight. _______________ shipping is the process of using more than one mode of transportation to ship containers. Used under license from Shutterstock, Inc

16. Modes of Transportation Mode of Transportation Description Of products transported AdvantagesDisadvantages Motorized Carrier Rail Ocean Freight Air Freight Pipeline

17. Chapter 8: LOGISTICS Fundamentals of International Business Copyright © 2010 Thompson Educational Publishing, Inc. Methods of Physical Distribution in the Supply Chain

18. Review Questions  P. 214  5,7,8,9,10,12  P. 244  1, 2,4,5,7,10,18,19 Chapter 8: LOGISTICS Fundamentals of International Business Copyright © 2010 Thompson Educational Publishing, Inc.