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International Logistics - Essay Example

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When companies become substantially involved in international dealings, logistics become an essential ingredient in the strategic planning process.
In an increasingly world economy, logistics is a very critical matter in the success of a company. It is a fundamental part of supply chain management that entails operations management considerations, production engineering, and matters pertaining to the region. The main aims of International Logistics are to connect parts of global supply chains, prevail over international trade hurdles, and reduce transaction expenditures. It can also offer considerable cost savings and help businesses enter new overseas markets (Branch, 2009).
The channel of international logistics can be split into three: transaction channel, distribution channel, and communication channel (Behar et al., 2013). The transaction channel deals with the buying, selling and collection of payment; the distribution channel involves the physical movement of goods while communication involves the contact between various players in international business. With the help of a professionally managed international logistics department, organizations can gain economies of scale. International Logistics can lead to increased production, technological advancement, and market expansion (Behar et al., ...Show more
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Summary

International Logistics refers to “the process of planning, implementing, and controlling the flow and storage of goods, services, and related information from a point of origin to a point of consumption located in a different country” (Branch, 2009). It entails managing the…
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