Elements of International Logistics - Essay Example

?Packaging, Handling, Storage And Transportation (PHS&T) An Element Of International Logistics Table of Contents Introduction 3 Elements of International Logistics 3 Trans of Packaging, Handling, Storage and Transportation in International Logistics 5 Significance of International Business in PHS&T 7 Conclusion 9 Works Cited 10 Introduction International logistics can be defined as the process of discussing, planning as well as execution of endorsing logistics arrangements between two or more nations and agencies among others. In other words, international logistics signifies to meet the requirements of the raw materials, final product inventories, intermediate inventories and other related information in the international market. It is to be remembered that the term international logistics is relatively a new concept. However, in the recent times the term is used quite often. International logistics involves not only transportation, although transportation is considered to be a significant component of international logistics. There are other elements of the international logistic systems as well such as packaging, storage and handling. Since in the context of international logistics, people generally refer to the goods that move across national borders, this segment of logistics can be identified to be in a category all by itself. (Long, D. C., “International Logistics: Global Supply Chain Management”). Elements of International Logistics Packaging, Handling, Storage, And Transportation (PHS&T) consists of the resources, design concerns, actions and processes for ensuring that the equipments, systems and the related support items are properly packaged, stored, handled, preserved as well as transported from one place to another (Gabel, “Logistics Element Manager’s Desk Guide”). Initially, the PHS&T analysis is conducted which consists of factors, such as environmental concerns, transportability necessities, need for maintenance for both short-term and long-term storage, as well as other procedures for ensuring the removal or reduction of damage to the system, its elements and the required support items. With this analysis PHS&T plan is prepared. The various factors which characterize PHS&T are containers, cargo aircrafts, security, preservation, dock workers, packing materials, and warehouses. Main focus is upon the safe delivery of the goods and services without any potential damage and deterioration of the systems and spares (Gabel, “Logistics Element Manager’s Desk Guide”). The numerous elements of international logistics such as packaging, storage, handling and transportation include the requirements, the resources, the methods and the considerations for the purpose of ensuring that the equipments and materials as well as related support systems are stored, preserved, handled, packaged, and transported appropriately (Lancioni & Chandran, “The Role of Packaging in International Logistics”). It is to be remembered that the firms need to have proper planning for the logistics systems to operate smoothly in the international market. The firms are supposed to examine each and every aspect in a proper way. As soon as the shipment leaves the docks of the shippers it takes greater effort for them to control till it reaches the consignee’s location. It has been noticed that the international logistics systems tend to work well in circumstances when all the possible phases have been planned in a systematic manner. One of the significant areas in context of international logistics is packaging. It is to be mentioned that packaging determines the condition at which the product will reach the location of the customers (Lancioni & Chandran, “The Role of Packaging in International Logistics”). Material handling encompasses various aspects of work in progress, movements of raw materials or finished goods within the plant or in warehouse. Packaging, handling, storage and transportation (PHS&T) plan is generally prepared in order to identify the distribution and the transportation procedures in order to ship the components from the point of origin i.e. producers to the source of consumption i.e. consumers. It is also prepared for shipment of the components of support to the customers and for shipping those items that require maintenance (Blanchard, B. S. & Et. Al., “Maintability: A Key To Effective Serviceability And Maintainence Management”). When there is physical movement of the goods and the services of the producer to the consumer it is called transportation. It generally involves the accumulation of the raw materials for the purpose of production and subsequently finished goods are shipped to the customers. Storage basically implies to the management of the space required for holding the inventory. It is essentially concerned with the size, the layout, and the design and the warehouse number. Storage is mainly concerned with the physical requirement of holding the stock (Fengxiang, W., “Elements of International Trade”). Trans of Packaging, Handling, Storage and Transportation in International Logistics It can be mentioned that all the four components namely (Packaging, Handling, Storage and Transportation) have significant impacts on the international trade. One of the significant contributions of logistics to international trade is in the field of proper allocation of resources. It is through international logistics, countries are capable of exporting their products through which they can obtain competitive advantages and also import products which might not be available at home country or is produced at lower cost in the market overseas (Seyoum, B., “Export-Import Theory, Practices, and Procedures”). When the importing firms enlarge their capability for procuring the required raw materials or parts for their customers, it is noticed that the international logistics management becomes one of the sources of competitive advantage for the firms as well as customers. This type of material procurement along with sourcing decisions comprise of number as well as location of the warehouses, the adequate level of inventory that needs to be maintained and the choice of the proper transportation mode and carrier (Seyoum, B., “Export-Import Theory, Practices, and Procedures”). The developments of advanced logistics systems as well as capabilities have facilitated in the production, distribution and transportation of the products. By making use of the numerous transportation modes the customers can be served with quick and reliable delivery services to the customers who can in turn help the companies to minimize the need for safety stock inventory. The cost of transportation can also be minimized by means of shipment consolidation as well as special contracts with carriers without impacting delivery time (Seyoum, B., “Export-Import Theory, Practices, and Procedures”). PHS&T is considered as significant components of logistics. It becomes apparent to the logistics system when it is integrated with the acquisition process and therefore is administered properly. If PHS&T is managed properly, then it has vital impact upon the systems efficiency, maintainability, safety, reliability and environment. It is through well managed international logistics systems that the companies can avail the facility of optimum inventory levels and optimal production capacity. This can assist the domestic companies to strengthen the competitive situation of these companies in international trade (Seyoum, B., “Export-Import Theory, Practices, and Procedures”). Significance of International Business in PHS&T With the expansion of the marketplace into the international arena, the concept of global logistics comes into limelight. Such expansion also brings significant changes in the role of the logistics experts. It has been observed that I, as a logistics expert in the international business am supposed to comprehend all the activities of logistics such as storage, transportation and handling among others within global arena thus encompassing various languages, regulations and governments. In addition to the growth of the marketplace there is also requirement for global channel agents. I need to be accustomed with certain roles in context of logistics, such as, foreign freight forwarder who is chiefly responsible to handle numerous foreign freight services. I need to be familiar with the role of export management companies, export trading companies, customs house brokers, ship brokers, ship agents, export packers and port authorities (Councils of Supply Chain Professionals, “International Logistics Manager”) It would be my duty to comprehend how the international carriers are performing and therefore how to manage the logistics agents. It would be of greater advantage to the companies if the logistics manager is capable of examining trade-off among the transportation cost, service level and inventory costs (Councils of Supply Chain Professionals, “International Logistics Manager”) Preparation of the strategies of logistics in order to enter a new global market also falls under the purview of the logistics manager. Packaging plays a significant role in the international logistics. Therefore, logistics manager needs to work closely with the packaging engineers so that they can collectively protect the import/export goods. I need to be proficient enough in terms of business skills, logistics skills and management skills. My responsibility as Logistics would be geographical repositioning of the raw materials, finished inventories as well as work in progress as and when required at the lowest possible cost. The subject of international business provides me scope to comprehend the international logistics system in depth. It helps me to understand the numerous elements of the international logistics in the context of international business and also be aware of the various rules and regulations and processes followed in the global context. This will enable me to be adept and efficient at handling any situation in terms of PHS&T as elements of international logistics (Councils of Supply Chain Professionals, “International Logistics Manager”) Conclusion Logistics can be defined as the proper administration of the movement of the goods as well as services from the source of origin to point of consumption. The logistics functions serve as the significant part of managing the supply chain. The key components of the international logistics are transportation, safety and material handling. With the increase in the globalization, the business processes are also becoming multifaceted with more complex and competitive environment. It becomes very essential for the international logistics managers to manage all the components of the international logistics in a proper way so that they can acquire maximum efficiency and effectiveness. The logistics mangers are expected to be proficient in business skills, logistics skills and management skills. Proper logistics handling helps to augment economic growth and also assist in the generation of employment in the country. Works Cited Blanchard, Benjamin S. & Et. Al. Maintability: A Key to Effective Serviceability and Maintenance Management Wiley-IEEE, 1995. Councils of Supply Chain Professionals. “International Logistics Manager”. November 14, 2011. Description, 2011. . Fengxiang, Weng. Elements of International Trade Tsinghua University Press, 2006. Gabel, D. G. “Logistics Element Manager’s Desk Guide.” November 14, 2011. The Logistics Element, 2005. < http://www.uscg.mil/directives/cim/4000-4999/CIM_4105_11.pdf>. Long, Douglas C. International Logistics: Global Supply Chain Management. Springer, 2003. Lancioni, Richard A. & Chandran, Rajan. “The Role of Packaging in International Logistics”. International Journal of Physical Distribution & Logistics Management. 20 (1990): 41-43. Seyoum, Belay. Export-Import Theory, Practices, and Procedures Taylor & Francis, 2008. Read More