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Evidencia 1: Writing and essay about logistics costs

ACTIVIDAD DE APRENDIZAJE 12

EVIDENCIA 1: “WRITING AND ESSAY ABOUT LOGISTICS COSTS”

OSCAR TORO MADRID

FICHAS TÉCNICAS

1667886

SERVICIO DE APRENDIZAJE NACIONAL SENA

TECNOLOGÍA EN NEGOCIACIÓN INTERNACIONAL FORMACIÓN VIRTUAL

2019
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Evidencia 1: Writing and essay about logistics costs

TABLE OF CONTENTS

Introduction ....................................................................................................................................... 3

Projection of international physical distribution (DFI) ............................................................. 5

The Incoterms ............................................................................................................................ 6

bibliographic index card ..................................................................................................... 12

Conclusion ........................................................................................................................ 13
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Evidencia 1: Writing and essay about logistics costs

INTRODUCTION

Business competitiveness allows to ensure the survival of companies in the long-term market,

in all segments that you want to access with products, in the local and also international

context.

One of the strategies to achieve this competitiveness is the successful planning of the

international physical distribution, in terms of the costs and activities involved in the process,

taking into account that within the logistics chain represent a field Representative. This

planning will materialize in cost reduction, inventory optimization, improvement in customer

service levels, and optimization of transport routes and proper selection of means of transport

Taking into account the accelerated evolution of current negotiations, the logistics variable

becomes the obligatory complement to international agreements that allows to optimize the

times and costs of the transport, storage and from import to end consumer and also allowing

exporters to improve their FOB costs to enter international markets at competitive prices.

However, Colombia has a geographical location that allows it to access the Atlantic and

Pacific oceans. Through six ports over the Atlantic, Colombia has its most important mineral

exports from the north of the country, as well as communication with Europe, the Caribbean

and Central and North America. Over the Pacific Ocean are two ports, the most important

container movement in the country which is Buenaventura, both import and export and the

port of Tumaco covering imports of sugar mainly. At the land level it has borders with five

countries, Panama, Venezuela, Ecuador, Peru and Brazil, of which only Ecuador and

Venezuela have a customs-enabled border crossing and with which trade agreements are

held.
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Evidencia 1: Writing and essay about logistics costs

Therefore, the main objective of this test is to show how the delay in a country's commercial

logistics affects foreign trade operations that are ultimately translated into costs borne by the

exporting entrepreneur.

In this case Colombia is taken, together with the entities involved, the customs processes,

infrastructure and means of transport that are the costs of greatest impact in the process of an

export.

This document seeks to show where the deficiencies that directly affect the costs that the

exporting companies in Colombia must bear and the solutions posed by the different authors

and economic entities in order to remove the country from the logistical lag currently present,

thus achieving the reduction of excessive operating costs.

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Evidencia 1: Writing and essay about logistics costs

PROJECTION OF INTERNATIONAL PHYSICAL DISTRIBUTION (DFI)

International physical distribution is the logistical process that develops around placing a

product on the international market complying with the terms negotiated between the seller

and the buyer.

These practices have optimized their logistics process, among which are: the externalization

of stages of production or distribution, the pecialization of production centers, the

implementation of distribution centers in order to improve the logistics operations and the

development of information technologies to manage the logistics chain.

It should be noted that the International Physical Distribution has countless variables and

factors that translate into costs that can sometimes be hidden. For this, this requires the

intervention and advice of customs agents and logistics operators who support processes in

which the entrepreneurs of products who have no experience, taking into account that the

risks of deterioration, loss of customers, yields and destruction of value are high.

DFI'S TOP COSTS

*International Freight

*International Insurance

*Port Costs (Goods Handling)

*Customs Costs

*Local Freight

*Document Costs

*Storage Costs
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Evidencia 1: Writing and essay about logistics costs

*Financial Costs

*Costs (Insp. Anti-Narcotics)

THE INCOTERMS

They are progressive in nature and are divided into 2 groups: Maritime Transport and any
mode of transport.
Any mode of transport Maritime transport and inland
waterways
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Evidencia 1: Writing and essay about logistics costs
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Evidencia 1: Writing and essay about logistics costs

INTERNATIONAL TRANSPORT

International transport, also known as main transport, is responsible for crossing borders

and delivering products in the destination country. It is the backbone of DFI's operations,

and depending on the Incoterms negotiated, it defines the shipping and delivery route to the

buyer.

Air Transport Features

Airport is contracted to Airport through air cargo agents. The load is loose and is shipped

for quotas or positions. Transport document: Air Guide (AWB). Advantages: Speed,

Reliability, Security, lower insurance costs. Disadvantages: It is the most expensive;

limited capacity, restricted for certain dangerous products.

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Evidencia 1: Writing and essay about logistics costs

Maritime Transport Features

Applies to sea waterways, or inland waterways such as rivers or lakes. Port to Port is

contracted through freight agents or shippers. The cargo is shipped in specialized containers

for which it must be consolidated. Transportation document: Bill of lading (B/L).

Advantages: lower fares, high-volume mass transportation, diversity and ship

specialization, no restrictions on hazardous products. Disadvantages: low speed, insurance

and more expensive packaging, port costs, high risks of shearand and deterioration, more

spaced frequencies
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Evidencia 1: Writing and essay about logistics costs

Road transport

Applies for road and road transport. Door to Door is contracted through freight agents. The

cargo is transported in specialized containers according to its characteristics. It has no

restrictions on dangerous products Depending on distances it may be less expensive than

air, but more expensive than maritime. Transport document: Letter of carriage (CMR ).
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Evidencia 1: Writing and essay about logistics costs

Ground Transport by Train

Applies only for rail transport. Terminal is contracted to Terminal through cargo agents the

cargo is transported in specialized containers according to its characteristics. It has no

restrictions on hazardous products. It is the least expensive of land transport especially over

long distances. Transport document: Letter (CIM)

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Evidencia 1: Writing and essay about logistics costs

BIBLIOGRAPHIC INDEX CARD

 https://repository.unimilitar.edu.co/bitstream/handle/10654/11620/Ensayo%20final.

pdf?sequence=2

 http://www.scielo.org.co/scielo.php?script=sci_arttext&pid=S0120-

81602011000100013
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Evidencia 1: Writing and essay about logistics costs

Conclusion

The document notes that emerging countries such as Brazil, India and China have become

big competitors as they have bet their strategies on logistics as a key to their economic

growth.

In the Colombian case, the logistics system is currently lagging behind, so the main reason

for the excessive costs borne by the country's exporting companies is the cost of transport

due to the backlog in infrastructure (rail, air, sea and land) making it the largest item when it

comes to exporting.

The decisions in the international physical distribution not only involve important aspects

such as cost, there are variables that can guarantee the success or not of the international

logistic operation, like: packaging, packing and unitarization of the load, in addition to the

Full knowledge of the type and nature of the cargo to be exported and all the physical

conditions necessary to ensure that the product will reach your customer according to the

agreed parameters.