Importance Of Global Logistics

Decent Essays
Global Logistics In order for a firm to successfully operate on a global scale, the application of the concept of global logistics is essential to facilitate the movement of goods and services through international boundaries is essential. Logistics, of course, is the lifeblood of an organization; without the application of the process, goods and services will never be delivered to the targeted end consumers. It is the method of not only delivering the finished product and/or service to the end consumer, but it is also essential in the accumulation, procurement and manufacturing of the necessary components for assembly toward the final product and/or service. If a firm decides to become more globalized, or enter into international markets, …show more content…
Other articles, such as Bowersox 's and Calantone 's (1998) research, Executive Insights: Global Logistics, touches upon how the importance of information technology (IT) and logistics relevant to the importance and functioning of a sound global logistics system. The advances in IT, coupled with the lowering of trade barriers, allowed for the proliferation of globalization of products and/or services, which created the need for efficient and well managed global logistics systems that are supported by the advancements in IT for companies. For example, movements within the supply chains for companies have adopted new strategies to bring the product to the end consumers in the most efficient manner possible, such as Quick Response (QR) strategy. "Traditional practices such as building and positioning speculative inventories to accommodate marketing strategies are now replaced with more response-based logistical support strategies, such as just-in-time (JIT), just-in-time II (JIT II), quick response (QR), continuous replenishment, forecasting, collaborative planning and replenishment (Bowersox & Calantone, 1998). The article also highlights that the rise in globalization fostered the rise of third-party logistics (3PLs) firms, another key ingredient to the management of a global logistics system; due to the complexities that are associated with movements of goods through international borders, some companies such as these 3PLs may possess more competitive advantages that will assist their partners in adding value to their global supply

Related Documents

  • Improved Essays

    HSC Business Task Role, influences,Strategies a. Identify and briefly outline the main influences on operations management (outline each influence and how they impact on the operation function) Globalisation Globalisation is indicating to the improvement of technology and communication in the merging of world economies into a single market. This allows the trade and nations to become more connected which results of the concept of “smaller place. It is considered as significant in operation management as it increases the positioning of the large business in the global market with providing the needs of global consumers. The global costumers aim for universal brand and tend to pursue standardised products, which impacts the operation function.…

    • 787 Words
    • 4 Pages
    Improved Essays
  • Decent Essays

    Logistics is handling the inbound movement of materials and supplies…

    • 521 Words
    • 3 Pages
    Decent Essays
  • Superior Essays

    Econ310 Unit 1 Case Study

    • 848 Words
    • 4 Pages

    ECON310-1603B-08 Instructor: Janet Hunter Unit 1- Macro and Microeconomic Concepts in a Global Context Amanda Kranning August 17, 2016 Part 1 With the development of a 5-year strategic growth plan for our growing company specialized in the production of semiconductors for the use of many technological equipment, many concerns arose to the factors that would come into play. We explored the following questions and have concluded the following: • How would international expansion affect your business? When entering into globalization, it is important to take in the variances that may arise in different cultures. The company would need to be aware of the logistic regulations, legalities, fluctuations in exchange rates, understanding market preferences,…

    • 848 Words
    • 4 Pages
    Superior Essays
  • Improved Essays

    The surge of technology with things such as the internet and phones have opened up wholly renovated international industries with endless potentially. One of the keyboard drivers of increased international companies drive to dominate the world has been due to the process of globalization. - Introduce a brief history into the use of globalisation. - I will briefly state my main argument that although globalisation has had some positive effects on the developing world, it is ultimately increasing economic inequality in these regions. - I will very briefly outline the structure of the essay.…

    • 433 Words
    • 2 Pages
    Improved Essays
  • Improved Essays

    Global and Multi-Domestic Companies: Boeing and FedEx Christopher Cosby California State University San Marcos Global and Multi-Domestic Companies Global strategies and multi-domestic strategies are important for companies who need to better understand and serve the needs of their customers. A company’s decision to follow a global or multi-domestic strategy can help a firm decide how it will utilize its resources and processes to provide products or services. Companies that employ global strategies are known for making a product that is attractive across various markets, products like commercial aircraft. Multi-domestic firms focus more on the individual needs and values of their target markets and customize their products…

    • 938 Words
    • 4 Pages
    Improved Essays
  • Improved Essays

    2 The internationalisation Process Traditionally, the major activity related to international business used to be export, but today there has been a shift towards internationalisation of the company whilst achieving competitive advantage driven by globalisation, technology, politics and economical changes. Access to new and bigger markets for growth is one of the reasons of internationalisation and this is in turn influenced by the opportunities that exist in the foreign market (Masum & Alejandra, 2008). 2.1 Foreign Market entry modes Entry decisions that management has to consider before going international are: • Market attractiveness • Timing of entry into the market • The scale and involvement of its resources After the above three main…

    • 819 Words
    • 4 Pages
    Improved Essays
  • Great Essays

    Costco Capital Structure

    • 1954 Words
    • 8 Pages

    Marketing: Independent sales teams for different customers and segments- defense, consumers, transport units, QFD conducted at regular intervals, large network of dealers and distributors , identification of changing consumer trends to develop innovative products, use of CRM. Service: Easy availability of spare parts, large network of workshops, training facilities for deales and service men. Maruti Suzuki India Ltd: Inbound Logistics: Just In Time implementation, demand management system, implementation of logistics improvement systems.…

    • 1954 Words
    • 8 Pages
    Great Essays
  • Improved Essays

    In today 's world supply chain is at the centre of the business, for many decades’ companies have outsourced and organised many jobs to suppliers and intermediaries creating expansion and, recreated designs and through innovative processes, such sourcing has resulted in global supply chain management. It is a connected series of activities which is concerned with planning, organising, coordinating and controlling of materials, parts, and finished goods from supplier to customer. It is concerned with two distinct flows/ function i.e. material flow and information flow through the organization (Stevens 1989). At every point of chain information and material is passed in order to improving the efficiency at every level.…

    • 839 Words
    • 4 Pages
    Improved Essays
  • Improved Essays

    ANSWER: Question 1: What interactions and discussion need to take place among the marketing, manufacturing, logistics, and finance departments: Launching a new product requires lots of planning in every sector of the company. In this case of Pete’s peanut snack company, investing in the new product should make sure that they are making a profit from every act of launching the product which means marketing, manufacturing, logistics, finance department costs should not be overcome to the profit. The first step to start producing a new peanut product is to forecast the product. The forecasting team must anticipate the future of product by analyzing the same variety product competitors price and demand in the market.…

    • 974 Words
    • 4 Pages
    Improved Essays
  • Great Essays

    Airasia Case Study

    • 1214 Words
    • 5 Pages

    I. INTRODUCTION a. Objectives and Scope AirAsia is a malaysian low-cost airline. It scheduled domestic and international flights and is Asia’s largest low fare airline. Nowadays, MIS is a significant factor that influence the airlines system. In this article, the writer will focused on the online booking department that generized with the MIS system.…

    • 1214 Words
    • 5 Pages
    Great Essays
  • Improved Essays

    Considering the role of QR in fashion industry it helps to offers a high degree of speed, flexibility responsiveness in supply pipelines. It has been analyzed that QR approach can be better appreciated when applied to a particular demand situation such as global and offspring sourcing. As the case analysis provide a conception focus upon the main logistics issues involved in fashion industry. It has been identified to the essence of volatility complexity and dynamism.…

    • 2395 Words
    • 10 Pages
    Improved Essays
  • Great Essays

    Introduction Nowadays “Globalization” has become the catchphrase for the last few decades. We can witness the sudden change of capital, trade and information around the world, stimulated by high-tech modernization from the global internet to direct shipment of products. The global economy has transformed and reshaped the social, economic and political landscape in an ineffaceable and profound way. Globalization has dissected national borders; free trade has enhanced economic incorporation and the information has made geography and time irrelevant.…

    • 1803 Words
    • 8 Pages
    Great Essays
  • Improved Essays

    Nowadays, companies are becoming more and more global. When a company decides to go into the international market it has to face what it is known as the global-local dilemma. The global local dilemma states that companies have to consider different options when deciding the strategy they are going to use. They can offer local-responsiveness solutions, this is, adapting their products to the national culture or using a global integration solution, carrying out businesses in a similar way throughout the world. The solution of the dilemma will affect many areas of the company.…

    • 716 Words
    • 3 Pages
    Improved Essays
  • Great Essays

    Fatima Fertilizer Case Study

    • 4889 Words
    • 20 Pages

    FATIMA FERTILIZERS Prof. F.A. Fareedy MBA II SEC B 29th July, 2015 Presented by: Babar Zahoor Ul Hasan Saman Iqbal Contents Introduction: 2 Policy Statement of Ethics and Business Practices 3 Products & Services 4 Industrial Solutions 5 Farmer Support & Education 5 ORGANIZATIONAL STRUCTURE 6 Competitors: 7 Fauji fertilizer 7 Engro Fertilizers Limited:- 9 Financial ratios 11 Models 28 SWOT ANALYSIS 30 IFAS 35 EFAS 36 SFAS 37 New strategy 38 New proposed Vision Statement 40 New mission statement 40 Recommendations 41 Conclusion 42 Executive summary Fatima fertilizer has done well over the past few years, it is currently number three in terms of market share, but is steadily rising and is said that it will soon beat engro fertilizer.…

    • 4889 Words
    • 20 Pages
    Great Essays
  • Improved Essays

    E-commerce must achieve the perfect fit with modern logistics, then it can be called real e-commerce. Therefore, It is very important for an enterprise to choose the logistic mode that is fit for its own characteristics, a suitable logistic mode can help an enterprise achieve three goals of logistics strategy: reducing cost, saving capital, Improving service. According to the form of enterprise external logistics, there are three basic logistics modes: self-run logistics, third-party logistics and logistics alliance, the last two modes are logistics outsourcing businesses (Xu, 2012). All logistics modes have advantages and disadvantages according to the logistics environment, enterprises should choose suitable mode based on own demand.…

    • 1016 Words
    • 4 Pages
    Improved Essays

Related Topics