Logistics is a concept that entails translocation of products from the selling point to the designated destination. This includes movement of products across international borders and delivering them to designated locations. Such translocations have inherent risks and other associated costs that must be covered by different parties based on the agreements. Dynamics of operations in different countries has led to unification of various logistics standards and related issues. Some regions possess higher risks and overhead translocation costs due to restrictions and infrastructure condition in such regions. To harmonize logistics operations in global and international trade, HS Codes and Incoterms have been enacted. On the other hand, procurement companies have eased movement of goods by having fleets of vehicles and other transportation modes for sellers and buyers to utilize for these product movements. Part I of this work addresses the benefits and drawbacks of misinterpretation and misuse of Incoterms especially in transportation. Part II of the assignment addresses benefits and potential counter-productive issues arising from utilization of 3PLs on sourcing. Additionally, models to eliminate counterproductive issues through excellent procurement strategies are explored.
Assignment 7: Logistics & INCOTERMS
Logistics is a concept used to define issues and arrangements related to transportation of products from the supplier to the buyer across international borders (Trepins S50). Current global trends have seen an upsurge of freight traffic as companies seek raw materials from middle to low income countries. On the other hand, many companies are seeking to diversify their target markets making it possible to send thei...
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...007): 36-43. SCMR. Web. 9 Dec 2013.
Kumar, Sameer. “Logistics Routing Flexibility and Lower Freight Costs through use of Incoterms,” Transportation Journal (2010): 48-56. Notes and Comments. Web. 9 Dec 2013.
Lee, L. Hau, Sonali V. Rammohan, and Lesley Sept. “Innovative Logistics in Extreme Conditions: Lessons from Gambia,” Supply Chain Management Review (2011): 51-59. SCMR. Web. 9 Dec 2013.
“New INCOTERMS Effective January 1, 2011” MIQ Logistics. (2010). 1-4.
Reaume, Justin. “Procurement Actions that can Boost Your Business,” Supply Chain Management Review (2010): 46-53. SCMR. Web. 9 Dec 2013.
Segerberg, Per. “How to Get Procurement Strategy Right,” Supply Chain Management Review (2011): 40-46. SCMR. Web. 9 Dec 2013.
Trepins, Dagmar. “EU Logistics: Meeting New Challenges,” Logistics Management – Supply Chain Management Review (2011): S50-S60. SCMR. Web. 9 Dec 2013.
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