LEARNING ACTIVITY 12

EVIDENCE 1: WRITING AND ESSAY ABOUT LOGISTICS COSTS

PRESENTED BY:

Ingrid Jinete González

EXECUTION PHASE

INSTRUCTOR: JENNY PERDOMO

SERVICIO NACIONAL DE APRENDIZAJE SENA

Technology in international negotiation
N° of file 1565358
february of 2019
 INTRODUCTION

There has been a large increase in world production during this century, and thousands of
new products have been introduced into international markets. On the other hand, the
system to produce a complete product in a plant has been widely replaced by individual
operations in several plants that in many cases are quite far apart, and the markets have
spread geographically, distancing the points of production enormously, distribution and
consumption.

These phenomena have led to the birth of specific areas of study in the modern
manufacturing company, since the production supplies include diverse materials that must
be extracted, transported and stored in various stages of the production process, and the
distance that these must be. mobilized, the time they must be stored and the ease of
replacing a raw material on the other hand constitute significant areas for management
decision making.

In order for the materials to reach the production line on time, in the amount and conditions
required without loss by immobilization of capital, efficient coordination of the different
factors mentioned above is necessary, which is therefore an important element for
profitability of the company.

After a series of serious setbacks due to a poor command of transport and its related
operations, the need was felt to study the means leading to better security: DFI (International
Physical Distribution) was born

The discipline of International Physical Distribution can contribute to this objective by offering
the necessary means in expanding markets and improving the competitiveness of products.

As important activities or subsystems within the chain of International Physical Distribution

we can mention the transport, material handling, packaging, storage, inventory control, order
processing, analysis of premises and the communications network necessary for effective
management: which they must be controlled as a whole, due to the interrelation between
them.

For example, a change in the packaging has effects on transport, storage and handling,
among others.

In conclusion, the International Physical Distribution constitutes for the industrial -importer
or exporter an element that must be properly managed, if it wants to have or acquire greater
competitiveness in international markets.
 MAIN POINTS

The process of internationalization has allowed most of the countries in the world to develop
different strategies to achieve greater economic growth by being efficient and competitive
basically at low costs. One of the most important strategies is the
logistic development.

Therefore, the logistic system refers to the technical process of Supply goods inside and
outside a country and its main objective is to achieve the delivery of the right product, the
right amount, in the right place, at the right time, at the right cost and the right service.
Therefore, a good logistics system must supply correctly the needs, the planning, processes,
labeling, transportation, storage, maneuvers, packaging and customer service.

However, logistics has made great progress due to changes in the countries' policies and
the legislative developments that have led to the globalization of markets and their
companies, contributing to the redesign of strategies of manufacturing and commercial
distribution, and with the purpose of looking for new more efficient alternatives

That is why today large economies have begun their logistics strategies, obtaining as a result
the reduction of costs in terms of physical distribution, the increase of the service and the
quality of the information, specializing their resources and ensuring the maximum
compliance with the "Just in Time" delivery.

This effect has led to the growth of trade and therefore to competitiveness, a principle that
leads to the specialization of the logistics system that brings with it the evolution and the
increase of new needs.

Therefore, the DFI (International Physical Distribution) requires a substantial improvement

in the management capacity, generating new approaches to improve the International
Transport of Loads and thus a more comprehensive concept is acquired that involves all the
components and services of an operation of DFI for the transfer of merchandise, from its
point of origin to its point of destination and all of them framed within the LCI (International
Commercial Logistics).

The main objective of the effective "management of the DFI" for exporters and importers is
a tool that will overcome the competitiveness problems of companies in the international
market; achieving a greater insertion of its products in this area and, at the same time, a
higher level of profitability in exports and importers

This criterion leads to the Golden Rule of the DFI: "transport the right product, in the required
amount, to the agreed place and at least total cost, to satisfy the needs of the consumer in
the international market just in time and with total quality. "
 CONCLUSION

International trade contributes significantly in the development and economic growth of a

country, so, the logistics system became the primary element of this.
Therefore, the logistic system of the countries directly impacts on the costs of the logistics
operations of the productive chains of the sectors of the economy. The level of development
of the system demarcates the growth economic and the ease of integration of a country into
the world economy.

The document points out that emerging countries such as Brazil, India and China have
become major competitors because they have bet their strategies on logistics as a key
element for their economic growth.

In the case of Colombia, the logistics system is currently lagging, which is why the main
reason for the excessive costs assumed by exporting companies in the country is the cost
of transportation due to the backwardness in infrastructure (rail, air, sea and land). the most
onerous item at the time of to export.

Similarly, it is also important to note that given the growing number of trade agreements that
are registered in the country, the intervention can not be postponed.
direct from the State to promote the development of local entrepreneurship, so it is important
that both the State and Colombian entrepreneurs strive to compete through innovation and
technology.
 BIBLIOGRAPHY

Stock, J. R. (1998). Development and implementation of reverse logistics programs.

In ANNUAL CONFERENCE PROCEEDINGS, COUNCIL OF LOGISTICS MANAGEMENT.
Washington, D.C.: Banco Mundial.

Pau I Cos, J. (2001). Manual de Logística Integral. Madrid: Ediciones Díaz de Santos

https://logisticainternacional2008.es.tl/Distribucion-FIsisca-Internacional.htm