[Notes] Chapter 1: Introduction to International Logistics

1. Logistics?

• ·         Defined by Council Logistics Management (CLM)
• ·         Part of Supply Chain that plan, implement and control the efficient & effective flow and storage of goods, services and other related information
• ·         From the point of origin to the point of consumption to meet the customer requirement

**p/s: please note that the definition DOES NOT include the movement of people

2. Supply Chain?

• ·         Movement of goods not that just from one place to another, but also from the ultimate origin to the ultimate destination.

**p/s: The Raw Material is the ULTIMATE ORIGIN, while the Consumer is the

       ULTIMATE DESTINATION

3. Goal of Logistics

·         To achive the logistics goal, there are 5 activities involved:

i)     Network design

ii)   Information

iii)  Transportation

iv) Inventory

v)   Warehouse, material handling and packaging

·         Goal of Logistics?

i)     Rapid Responds

-          Refer that the company able to responds to any changes or new development made by customer to meet customer requirement.

ii)   Minimum Variance

-          The output, such as delivery times should be consistent

-          Eg: Shorter lead times

iii)  Minimum Inventory

-          Make sure that the inventory kept is low since the cost to make inventory is expensive

iv) Movement Consolidation

V)     Life Cycle Support

-          Refer to the need NOT just to deliver the product, but also returned it as well.

-          Reason of returning may because of defective product or the recycling of the packaging and product.

Vi)   Quality

         -    Both product and services need the high quality

4. Regional Logistics Assessment

·         It is referring to the logistics asset that a country have.

i) Geography

    -      Refer to the natural geographic feature such as bay, natural port

ii) Physical Infrastructure

      -     Refer to the infrastructure such as road, airport

iii) Legal/Business infrastructure

     -      Modern business require a legal system with rules of trade and commerce,      customs officials, and legal enforcement of business contract

5. Roles of Transportation

-          Shipper         : Owner of the goods

                            : Also known as “Consignor” and “Seller”

-          Carrier          : The party that moves the goods

-          Consignee     : The party who receive the goods