International Logistics - Essay Example

International logistics 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 flow of goods from one point to another country where it will be consumed. For instance, it is common for companies to source raw materials in Africa, gather products in India and store and distribute to the US.

The process involved in moving goods to their destination is called International Logistics. 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., 2013).ReferencesBehar, A., Manners, P., & Nelson, D. (2013). Exports and International Logistics*. Oxford Bulletin of Economics and Statistics, 75(6), 855-886.Branch, A. (2009). Global supply chain management and international logistics. Routledge.