Advantages and disadvantages of costs in International Physical Distribution

To being with, we must take into account that logistics and international physical distribution are
key in foreign trade operations, given that logistics is key to achieving maximum efficiency and
effectiveness, wich can be summarized as follows: Efficiency because the less time a product
remains in each of the stages of a logistics chain, the lower costs will be added to the final value of
the product and the market will be supplied more quickly and effectively because in most cases,
lower costs can be translated into higher operational profits. For this reason, there are two factors
that determine the operation and that we must analyze: Time and costs, therefore, the time factor
must be considered as a determining factor in the reduction of costs. Today to achieve this goal, we
have to take into account one of the factors that influence the increase in transportation depends,
which tends to rise and thereby affect operational costs: the price of oil, since it mainly affects the
fuel (Diesel) on which most transportation depends, which tends to rise and thereby affect
operational costs. On the other hand, the lack of investment in transport infrastructure affects
negatively, therefore, this way limits the supply chain of products at a global level, thereby
generating a rise in the final process of each product. Clearly the international physical distribution,
being this the process of export of products and/or service that has as main objective to reduce to
the maximum the risks, times and costs from the origin like point of departure until the destiny like
final point. In other words, any failure in one of the stages of a product can suspend the distribution
system that affects international trade. As for the positive aspects that benefit the companies
besides creating strategies to counteract the distances and to be able to carry out their activities as
close as possible to the final market we see that the companies are modifying the way in which they
pack their products in such a way that these occupy less space and weight so that all the costs as
well as of transport are reduced. To conclude in the companies there are basic system that facilitate
their smooth operation, one of them is the logistics system related to the flow of materials from
suppliers to end users and whose establishment requires an exhaustive analysis and study to
achieve that the company has a fully integrated logistics element, so that it can fulfill the mission
that is incumbent on it and consists of a system that executes customer service policies at the lowest
possible cost. This is how issues such as the transport of goods from their preparation, handling,
preparation of documents, especially when there are high operational costs, international standards
of managements as well as environmental and multiple options in modes and means of transport
that make companies mark more and more comparative advantages that allow them not only to
survive in our markets but to grow steadily with competitive advantages, thus contributing to the
achievement of the objectives outlined in the country’s economic policy