Evidencia 1 Writing and essay about logistics costs.docx

Actividad de aprendizaje 12  Evidencia 1: Writing and essay about logistics costs

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Nelson Andrés Abril Zapata 79886409 Negociación nternacional !"4"#"07$

Advantages and disadvantages of costs in International Physical Distribution

%or an& compan& t'at (ants to e)port one o* t'e c'oices t'at must be controlled are t'ose o* international transport and distribution in t'e destination mar+et, t'ese *actors must be 'andled correctl& b& t'e compan& so t'at t'e product arri-es in appropriate times and *orms t'e *inal consumers %or e-er& entrepreneur, entrepreneur, distribution is a cost issue t'at must be *aced, t'ese costs are normall& normall& 'ig', 'ig', genera generating ting an e)tra e)tra cost cost in t'e product product t'at t'e consumer  consumer  ultimatel& pa&s. t is t'ere*ore understandable understandable t'at in a product di**erent actors can inter-ene *rom t'eir producti-e c'ain to t'e distribution distribution c'ain. /'at is, an& *ailure in one one o* t'e t'e stage stages s o* a produ product ct can can suspen suspend d t'e t'e distri distribut bution ion s&ste s&stem m a**ec a**ectin ting g international business. t is *or t'is purpose t'at t'e international p'&sical distribution e)ists, being t'e logistic process t'at is carried out in t'e e)port o* products and t'at as main obecti-e is to reduce costs, times and ris+s to t'e ma)imum *rom t'e point o*  departure at t'e origin to t'e Deli-er& point to t'e *inal destination. n order *or a compan& to e)pand and loo+ *or better opportunities in t'e mar+et, it must consider t'e in-estments o* time, e**ort and capital, t'ere*ore t'e correct logistics t'at it carries out is possible to reduce t'e costs o* t'e products *or t'e bene* bene*it it o* t'e t'e cons consume umers rs and t'e costs costs.. o* produ producti ction on *or t'e t'e bene* bene*it it o* t'e t'e compan&. compan&. /'e impact o* t'e logistics department department (it'in t'e companies is -isible in t'e degre degree e o* custom customer er satis* satis*act action ion,, as (ell (ell as in t'e *luid *luidit& it& o* t'e intern internal al processes o* trac+ing, production and transportation, i* t'e correct e**orts are being made t'at (ill ultimatel& be seen releados in t'e reduction o* costs. /'at is ('& t'e ad-antages o* reducing logistics costs can trigger in ('ic' t'e compan& is *orced to increase its producti-it& since it must be directed more and more more to improimpro-e e compe competit titii-el& el&,, t'is t'is also also appli applies es to t'e impro impro-e -emen mentt o* t'e t'e compan&1s management o* t'e compan&, t'us same redounds in t'e possibilit& o*  e)panding mar+ets b& accessing products and mar+ets t'at (it'out t'e correct e)por e)portt are are unatt unattain ainabl able e endin ending g in one one o* t'e t'e best best asse assets ts o* compa companie nies: s: t'e increase o* t'eir customers 2n t'e ot'er 'and, i* &ou do not 'a-e control o-er t'e costs, &ou can incur 'ig' operational ris+s, ('ic' leads to economic and political ris+s *or t'e compan&, as

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(ell as 3 ('ip e**ects3 t'at can disrupt t'e real demand, and *inall& /'e greatest danger t'at t'e organiation 'as in not protecting protecting itsel* *rom cost o-erruns is t'at it 'as ero margin o* error or reduced in-entories to suppl& mar+et needs.  As a conclusion, conclusion, t'is is is ('& strategies strategies and internatio international nal p'&sical p'&sical distribution distribution s'ould s'ould be c'aracteried b& creating t'e capacit& in companies to generate support to internationalie *rom t'eir production or *rom t'eir mar+et, al(a&s remembering t'at corporate success because it is no longer measured so easil& at present in t'e 5uant 5uantita itatiti-e e and and 5ual 5ualita itatiti-e, e, being being a *acto *actorr o* compe competit titi-e i-ene ness ss to genera generate te pro*itabilit& in import operations.