International Transportation Issues In The International Logistics Industry

chain, you can transport orders quicker to customers. All else being equal, clientele will choose the company that meets their wants best, offering you a competitive advantage in your industry.

Challenges of Supply chain Management

• In the international business operations the long-term survival of business depends on an understanding of the differences inherent in the international logistics field.

International transportation issues

• Transportation determines how and when goods will be received. Focus on entrepreneurship details some of the problems that can be encountered in the transport procedure. (Ikka.A.Ronkainen, 2005)

• The transportation issues can be divided into three components:

1. Infrastructure

2. The availability of modes

(Michael, Ilkka, & Moffett, 2009)

• Just in time ( JIT) inventory polices , which minimize the volume of inventory by making it available only when its needed are increasingly required by multinational manufactures and distributors engaging in supply chain management.

• Inventory control and inventory visibility are two very significant elements in any operations for they are the cost drivers and directly impact the bottom lines in the balance sheet. stock means worth and is an benefit of the company and once there is no inventory management the company surfers.

Customer service

• Supply chain management is all about making available the accurate product in the exact quantity to the right place and the accurate time. This frequently seems easy, but can get complex as well.

Cost control

• Operating costs are under relentless pressure by rising energy/fuel and shipment costs, greater number of global customers, technology, growing labor rates and new set of laws and rising

Planning & risk

This personality, whether the junior president for international logistics or the leader of the firm, can then become the concluding arbitrator to make a decision the firm’s priorities.

Decentralized logistics management

• When a firm serves many international markets that are dissimilar in nature, sum centralized might leave the firm indifferent to local adaptation needs. If each supplementary is made a profit center in itself, each on carries the full accountability for its performance, which can lead to greater local management satisfaction and do better adaptation to local market conditions.

• Yet often such decentralization deprive the logistic function of the benefit of c-orditions.for instance, although head office referring to its large volume of overall international shipments may be able to extract bottom rates from transportation firms individual subsidiaries by themselves may not have similar bargain power.

• Once products are within a specific market, however, increased input from local logistics operations should be expected and encouraged. At the very slightest, home mangers should be able to provide input into the logistics decisions generated by headquarters. (Michael, Ilkka, & Moffett,