ACTIVIDAD DE APRENDIZAJE 12 EVIDENCIA 1: WRITING AND ESSAY ABOUT

LOGISTICS COSTS

ALVARO ARRIETA TORRES

APRENDIZ NEGOCIACIÓN INTERNACIONAL (1565329)

 Advantages and disadvantages of costs in International Physical Distribution

For any company that wants to export one of the choices that must be controlled are
those of international transport and distribution in the destination market, these factors
must be handled correctly by the company so that the product arrives in appropriate
times and forms the final consumers

For every entrepreneur, distribution is a cost issue that must be faced, these costs are
normally high, generating an extra cost in the product that the consumer ultimately pays.
It is therefore understandable that in a product different actors can intervene from their
productive chain to the distribution chain. That is, any failure in one of the stages of a
product can suspend the distribution system affecting international business.

It is for this purpose that the international physical distribution exists, being the logistic
process that is carried out in the export of products and that as main objective is to
reduce costs, times and risks to the maximum from the point of departure at the origin to
the Delivery point to the final destination.

In order for a company to expand and look for better opportunities in the market, it must
consider the investments of time, effort and capital, therefore the correct logistics that it
carries out is possible to reduce the costs of the products for the benefit of the
consumers and the costs. of production for the benefit of the company. The impact of
the logistics department within the companies is visible in the degree of customer
satisfaction, as well as in the fluidity of the internal processes of tracking, production and
transportation, if the correct efforts are being made that will ultimately be seen relejados
in the reduction of costs.

That is why the advantages of reducing logistics costs can trigger in which the company
is forced to increase its productivity since it must be directed more and more to improve
competitively, this also applies to the improvement of the company's management of the
company, thus same redounds in the possibility of expanding markets by accessing
products and markets that without the correct export are unattainable ending in one of
the best assets of companies: the increase of their customers

On the other hand, if you do not have control over the costs, you can incur high
operational risks, which leads to economic and political risks for the company, as well as
" whip effects" that can disrupt the real demand, and finally The greatest danger that the
organization has in not protecting itself from cost overruns is that it has zero margin of
error or reduced inventories to supply market needs.

As a conclusion, this is why strategies and international physical distribution should be

characterized by creating the capacity in companies to generate support to
internationalize from their production or from their market, always remembering that
corporate success because it is no longer measured so easily at present in the
quantitative and qualitative, being a factor of competitiveness to generate profitability in
import operations.