Chapter 8: LOGISTICS Fundamentals of International Business Copyright 2010 Thompson Educational...

Chapter 8: LOGISTICS

Fundamentals of International BusinessCopyright © 2010 Thompson Educational Publishing, Inc.

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CHAPTER 8:Logistics Part 4

Chapter 8 Overview

Types of Logistics Supply Chain Issues in the

Supply Chain

Culminating Activity Section 5: Marketing&Logistics

Modes of Transportation

LOGISTICS



Issues in the Supply Chain

Issues in the supply chain Issues in the supply chain include:include:

________ of sources _____prices ___________ Unstable _____________________ _______________



Getting Help with the Supply Chain

Sources of help for Canadian businesses: Department of Foreign Affairs and International Trade

(foreign market reports) The Canadian Trade Index (sourcing decisions) Frasers (industrial database) Customs brokers (customs, duties, import regulations) Industry Canada (assists Canadian businesses compete) Canada Border Services Agency (people in/out of

country)

Chapter 8 Overview

Types of Logistics Supply Chain Issues in the

Supply Chain

Culminating Activity Section 5: Marketing&Logistics


LOGISTICS

INTERNATIONAL MODES OF TRANSPORTATION

Motorized Carrier

__________ Ocean Freight Air Freight ___________



Supply Chain - Physical Distribution

CarrierA company hired to transport goods.

_________________The official document that indicates that a transportation company accepts goods for shipment. It describes the items being shipped, lists their quantity and weight, gives the value of the shipment, and provides the name, billing address, and shipping address of the buyer.

___________________

A bill of lading is a document issued by the carrier which serves as a receipt for the goods delivered to a designated person or to his order.

The bill of lading describes the conditions under which the carrier accepts the goods and details of the nature and quantity of the goods, identifying marks and numbers, destination, etc.

The person sending the goods is the "shipper" or "consignor," the company transporting the goods is the "carrier", and the person for whom the goods are destined is the "consignee".

Bills of lading may be negotiable or non-negotiable. If negotiable (i.e., payable to the shipper's order and properly endorsed) title to the goods passes upon delivery of the bill of lading.



Methods of Physical Distribution in the Supply Chain

The _____________ of a carrier depends on several different factors:

What is being shipped ________of the shipment Speed of delivery required _______of the carrier Destination of the shipment




Motorized carriers—trucks, vans, motorcycles The cost of shipping a _____________is lower than

shipping a __________________ Many motorized carriers offer freight consolidation,

where goods from different sellers (shippers) are stored in a warehouse until there is an FTL of goods bound for a particular destination.

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_______________ Trains are _______________than truck transport and

have a more limited range Ideal for __________distances and much cheaper than

truck transport Can carry materials from ports to inland cities

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Ocean freight Used by importers and exporters that deal with businesses

on other _____________ Inexpensive but ____________, and must be used with at

least one other carrier, as ships cannot go door to door

Air freight Very _________, but very ____________ Weight restrictions limit size of air shipments




Inbound distributionThe process of _____________ goods that are sent to a company.

Receiving processThe established system that a receiving manager uses to _____________________________________________

Includes: inspecting containers for obvious physical damage, making sure that all of the containers have arrived, assigning stock numbers (SKUs) to new items, and recording the location of each item (for example, warehouse, selling floor).




______________________The process of arranging the shipment of goods from a company to its customers. Normally, the seller is responsible for arranging the shipment of goods to the buyer.

Ex Works (EXW)Term of sale that indicates that the _________________ for carrier selection, customs documents, and all charges.




_____________________The use of standard-sized reusable metal boxes, designed to fit on top of each other, to store and ship freight. _______________ shipping is the process of using more than one mode of transportation to ship containers.

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Mode of Transportati

on

DescriptionOf products transported

Advantages Disadvantages

Motorized Carrier

Rail

Ocean Freight

Air Freight

Pipeline

Review Questions

P. 2145,7,8,9,10,12

P. 2441, 2,4,5,7,10,18,19



Chapter 8: LOGISTICS Fundamentals of International Business Copyright 2010 Thompson Educational...

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