MANAGING GLOBAL LOGISTICS.

ROLE OF GLOBAL LOGISTICS

GLOBALIZATION HELPED IN DOING BUSINESS BEYOND THE NATIONAL BOUNDARIES. THE WORLD HAS BECOME A GLOBAL VILLAGE IN A REAL SENSE. INTERNET HAS MADE EASIER TO DO BUSINESS ACROSS THE GLOBE. CARGO MOVEMENTS NEEDS TO BE DONE PHYSICALLY.USING AVAILABLE MEANS OF TRANSPORT. SPEED & EFFICIENCY IN THE MOVEMENT OF GOODS IS FOCUSED MORE.

ROLE OF GLOBAL LOGISTICS

DOMAIN KNOWLEDGE , CONNECTIVITY , DOCUMENTATION ARE THREE CRUCIAL AREAS. GLOBAL OPERATIONS OF BUSINESS INCREASES THE COMPLEXITY OF LOGISTICS. EFFECTS ON THE COST OF MOVING THE GOODS & SERVICING CUSTOMERS. DECREASE IN THE CONTROL OVER MOVEMENT OF GOODS IS BASICALLY A CHALLENGE IN GLOBAL LOGISTICAL OPERATIONS.

TRANSPORTATION

THREE MODES OF TRANSPORT AVAILABLE. THEY ARE ROAD , SEA AND AIR. IT IS DEPENDING ON THE COST , URGENCY AND DESTINATION. MOST PREFERRED MODES OF TRANSPORT ARE SEA AND AIR. IN THE INDIAN SUB-CONTINENT ROADS ARE IMPORTANT MODE. IN EUROPE,RAILWAYS ARE THE IMPORTANT MODE BECAUSE OF THE AVAILABILITY OF A MODERN AND

HOW TO SELECT A PROPER TRANSPORTATION MODES.

BASICS PROPER MODES OF SELECTION

LOCATION OF MARKET IS THE MOST IMPORTANT MODE OF TRANSPORTATION. IN MIDDLE AND EAST INDIAN COUNTRIES IT IS THE MOST IMPORTANT MODE OF TRANSPORTATION. IT IS THE MOST CONVENIENT MODES FOR SHIPS , AND FOR BULK CARGO AND AIRPLANES , FOR HIGH VALUE CARGO EXAMPLES OF BULK CARGO ARE STEEL, FOODGRAINS, ORES, MINERALS. EXAMPLES OF HIGH VALUE CARGO ARE EWELLERY, ELECTRONIC GOODS.

THE SPEED FACTOR

IT REFERS TO DELIVERY OF CARGO INI SHORTEST POSSIBLE TIME. FASTEST MODE IS AIR, BUT THE COST OF AIR MODE IS VERY HIGH. EXAMPLES OF AIR TRANSPORTATION MODE ARE FLORICULTURAL AND HORTICULTURAL PRODUCTS. PERISHABLE GOODS NEED AIR TRANSPORTATION TO REDUCE SPOILAGE. THE NEED IN TERMS OF TIME AND AVAILABILITY OF OPPORTUNITY COST.

COST OF TRANSPORTATION.

THE COST OF TRAVEL IS DIRECTLY PROPORTIONAL TO THE SPEED OF TRAVEL. AIR TRANSPORTATION IS THE COSTLIEST. AIR TRANSPORTATION NEEDS LESS PACKAGING. SEA TRANSPORTATION NEEDS ACCURATE AND RIGID PACKAGIING. DUE TO SPEED , INVENTORY TRANSIT IS LESS AND THAT TO FOR A SHORTER PERIOD OF TIME.

FACTORS IN AIR AND SEA TRANSPORTATION.

AIR CARGO NEEDS LESS PACKAGING AND LESS HANDLING. HANDLING COST IS LESS DUE TO AIR TRANSPORT. AIR TRANSPORT HAS SHORT OURNEY PERIOD VIA AIR. SEA CARGO NEEDS GOOD AND EFFICIENT PACKAGING. LONG OURNEY VIA..SEA, SO TRAVELLING AND HANDLING IS MORE. PACKAGING COST OF SEA CARGO IS VERY HIGH.

TOTAL COST INVOLVED IN MODES OF TRANSPORTATION.

IN INDIA, GLOBAL TRANSPORTATION TAKES PLACE ON A LARGER ACCOUNT.. AIR CARGO ACCOUNTS LESS THAN 1% OF THE TOTAL CARGO MOVEMENT. RAILWAYS CONTRIBUTE 35% OF THE TOTAL CARGO MOVEMENT. ROADS CONTRIBUTE 39% THE TOTAL CARGO MOVEMENT. SEA CONTRIBUTE 24% OF THE TOTAL CARGO MOVEMENT. THE CHOICE DEPENDS ON URGENCY ON THE CUSTOMERS END.

COMPARATIVE HAZARDS OF TRANSPORTATION MODES.

AIR HAZARDS ARE VARIATION IN CHANGES OF TEMPERATURE AND PRESURRE.

SEA HAZARDS ARE WATER DAMAGE, CORROSIVE ATMOSPHERE, WAVE IMPACTS, HOSTILE STORAGE CONDITION.

ROAD!RAIL HAZARDS ARE SHOCKS, VIBRATION, CARELESS HANDLING, IMPACT DUE BREAKING, TRANS-SHIPMENTS.

OPPORTUNITIES IN GLOBAL LOGISTICS.

MARKET DIFFERENTIATION. INCREASE MARKET SHARE. FIRMER CUSTOMER PENETRATION. HIGHER PRIFITS. MEET REAL CUSTOMER NEEDS. MOVE AWAY FROM PRICE PRESSURES

GLOBAL LOGISTICS CHALLENGES.

GLOBAL LOGISTICS CHALLENGES.

GLOBAL LOGISTICS CHALLENGES.

GLOBAL LOGISTICS CHALLENGES.

SOME COMMON CHALLENGES FACED.

SECURITY IN TRANSPORTATION MODE VIA SEA.

HEART OF GLOBAL LOGISTICS.

ROLE OF INTERMEDIARIES.

THE ROLE OF INTERMEDIARIES IS CRUCIAL AND PERVASIVE IN CROSS-BORDER TRADE. THEY ARE BASICALLY LOGISTICAL SERVICE PROVIDERS. THEY ARE EXPERTS IN CUSTOM CLEARANCE, EXPORT!IMPORT DOCUMENTAION. CARGO MOVEMENT IN THE COUNTRY OF DESTINATION IS CO-ORDINATED BY THEIR BUSINESS ASSOCIATES IN THAT COUNTRY. DOCUMENTATION PLAYS A VERY IMPORTANT ROLE IN INTERNATIONAL TRADE.

ROLE OF FREIGHT FORWARDER.

ROLE OF FREIGHT FORWARDER IS TO FORWARD FREIGHT LOCALLY OR INTERNATIONALLY. TRAFFIC OPERATIONS, THAT IS, CHOOSING THE RIGHT MODE AND CARRIER FOR A GIVEN DESTINATION. CUSTOM CLEARANCE OF CARGO AS PER THE REGULATIONS AT THE PORT OF SHIPMENT. CUSTOM CLEARANCE AND DOCUMENTATION AT THE PORT OF DESTINATION. CARGO MOVEMENT AND HANDLING AT THE PORT OF ENTRY AND DESTINATION.

ASSITANCE PROVIDED BY FREIGHT FORWARDERS.

DOCUMENTATION RE"UIRED

FREE TRADE ZONES

FREE TRADE ZONES FACILITATE TRANSACTIONS AND SMOOTH PHYSICAL FLOW OF GOODS. THESE ZONES DO NOT RE"UIRE CUSTOMS FORMALITIES FOR INWARD AND OUTWARD MOVEMENT OF GOODS. THEY ARE WEARHOUSING HUBS FOR MNC# FOR DISTRIBUTION ACROSS WORLD MARKETS. EXAMPLES$- UBEL ALI IN SAUDI ARABIA AND HONG-KONG ON THE SOUTH EAST COAST. THESE ARE TWO MAIN FREE TRADE ZONES IN ASIA FOR INTERNATIONAL TRADE.

EBEL ALI % SAUDI ARABIA FREE TRADE ZONE.