PROGRAM - MBA

SUBJECT CODE & NAME - IB0016/SC0006/IB0019

INTERNATIONAL LOGISTICS & DISTRIBUTION
MANAGEMENT
1. Write a note on the difference between national and
international logistics.
Comparison of National and international logistics
The following are some of the major differences between domestic and
international logistics:
Distance of transportation In domestic transportation, the logistics
operates within a country, but in international transportation, it
operates across several countries. So the distance is usually much more.
Language In domestic trade, the operators have to know a
language which is common across the country but in international
logistics, the operators have to interact with people of various languages to
carry out the logistics activities.

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2. Explain the term trade blocs and list out the various
advantages and disadvantages of trade blocs.
Trading Blocs
Trading blocs are economic relationships built between countries of a
region. This is formed to encourage and develop the trade between
the member nations. It encourages regionalism where, the neighbouring
countries form an alliance for expanding their trade and relationship Trade
blocs boost regional trade and provide a platform for free trade. They
remove the trade barriers such as taxes, permits, complex documentation,
etc., between the member nations for movement of goods.
Trade blocks can be classified as:

Common market It is a trade group formed by countries

within a geographical area to promote duty free trade. The group also
allows free movement of labour and capital among the member
nations for example, MERCOSUR.

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3. Distinguish between time charter and voyage charter.

Time charter

Under time charter, ship owner rents the vessel to the second party for a
specific period of time. In time charter arrangement, ship-owner has
the responsibility to control and manage the ship. Here, the ship-owner pays
the expenses of officers, crew, insurance, food, etc. Whereas, the
charterer needs to spend the expenses related to fuel and cargo.
Time charter agreement usually contains the details like:

name of the ship owner

name of the charterer
tonnage and capacity of the ship
speed and fuel consumption of the ship
trading area of the ship
agreed service
contractual period
time of delivery
place of delivery
payment strategies

Under time charter, ship owner would not take the responsibility to transport
goods to respective destinations. The responsibility to transport goods solely
lies on the charterer.

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4. Discuss about air cargo documentation.

Cargo Documentation and Insurance
Air traffic cargo movement is much faster than the sea shipments.
Therefore, documents such as invoices, packing lists are attached to
the consignees copy along with the set air waybill. These documents
generally are carried along with the cargo and only in certain
situations documents related to banking transactions are also carried with
the cargo.
The documents arrive at the same time as that of the freight. The clearance
process is initiated when the goods are consigned directly to the
custom house broker of the

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5. Explain the various functions of outbound logistics.

Outbound Logistics Functions
Outbound logistics refers to the physical movement of goods from the
manufacturer or supplier to the customer. It mainly deals with the export or
delivery of goods domestically or across borders. Below figure depicts
the functions or operations involved in outbound logistics of an organisation.
The functions of outbound logistics are explained as follows:

Demand forecast
Demand forecasting is the process of predicting or estimating the customer
demand based on which the products are manufactured and
distributed.

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6. Explain some of the frictions and frauds observed in

the distribution channel.
Friction or Fraud in the Distribution Channel
The various positive forces and activities that helpin coordinating the
ovement of products to the buyers. However, most of the exporters
continuously examine the long links of overseas distribution channel
searching for some of the susceptible spots where the goods might be
robbed or attacked. The exporter who designs an international channel must
be aware of these problems and ensure that the channel is suitably strong to
withstand these kinds of attacks. For example, The Mexican drink known as
Tequila Cuervo, which is

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