Distribution channel and

logistics in International
Marketing

Why it is important
Necessary-connection or continent.
Distance-geographic distances
Level of customer services- %age of properly
delivered goods in pre-specified time to
customers.
Transit time- requirement of customers, offers
negotation--SLAs
Costly
Difficulties- congestion of ports
Lack of efficient material handling equipments at termination
points
Changeover cost-transshipment cost

Modes
Factors affecting choice

market location

speed consideration

cost considertation- directly related to?

Level of development in the destination
Physical properties of the consignment
Kind of goods
Kind of selection given by the customers
Order size and frequencies of orders
Movement of goods- nos of production houses in transit
nos of warehouses in transit.
Nos of intermediaries to be covered.
Nos of destination to be covered

Three basic
Air---exports---not connected
Water---exportsnot connected
Land----connectedrlys,trucks

Advantages and
Disadvantages
Air- rate/per unit of weight
Others- per unit of weight and
volume
Water- bulkshipping Conference lines
Ocean carriers-schedules
Tramp vessels

Land- between(water, air)- inland

Railways-Japan, Europe

Cargo insurance
Marine cargo insurance- all-mail,air,ship
Two types
Open Cargo
All kinds of shipments within specific geography/specfic time-for a
premium
Covers exporters risks
Independent value cannot be known in advance
Should declare all shipments to the underwriter
Agreed rates, rules in policy
No termination dates Can be terminated at any time by either partiees.

One time- one specific

Risk cannot be shared with others
Expensive
Not frequent exporters

Packaging in Logistics
Consumer designed influencing
sales acceptance to customers
Industrial-designed to protect
merchanise for shipment and
storage-more critical for foreign
shipment longer transit time, other
hazards.

Problems of packing
Over packaging-weight,cost,size,packaging cost,import duty based on
wieght,
Breakage-maybe underpackage-water transport-additional stress and
strain-voilent contact with other packages,handling facilities,cautionary words, indications symbols
Moisture and temperature-handling in rain,wet areas, --sealing in
plastic films-shrink wrapping-water proofing on inside
,moisture absorbing materials.
Palletizing the merchandise- vertical sheating.
Pilferage and theft.-should avoid the following
Contents
Trade names
Consignees names
Shippers names
Do coding- in colours or numbers
Blind markings- to avoid frequent familiarity

Containerization
One of the technique of shipping goods
to the overseas market.
Big box type of structure durable and
strong material like steel,aluminum
Two types
Dry cargo containers-end loading,side
loading,open top,fully venti
Special container-spl referigeration, dry bulk
load, liquid bulk load, lie stock and sea shed
etc.

Frieght forwarder
There are two types of intermediaries
freight forwarders
provide services to exporters,

traffic and documentation responsiblities

handle all paper works required.

responsible from domestics to foreign destination.

customs house brokers provides services services to importers or buyers
Responsible for clearance through customs
Gets fees for services
Info about duty assessments and statistical purposes-data
Is named in the customs power of attorney and is binded.
Registered and license holder a