ACTIVIDAD DE APRENDIZAJE 12 EVIDENCIA 1: WRITING AND ESSAY ABOUT

LOGISTICS COSTS

DEICY TORRES SUAREZ

CENTRO DE COMERCIO Y TURISMO REGIONAL QUINDIO

TECNOLOGIA VIRTUAL NEGOCIACIÓN INTERNACIONAL
YOPAL, CASANARE
2020
 INTERNATIONALHYSICAL DISTRIBUTION

International Physical Distribution, known by its initials DFI, is the process that takes

place around placing a product on the international market complying with the terms negotiated

between the seller and the buyer. Its main objective is to minimize the times, costs and risks that

may be generated during the journey, from the point of departure at origin to the point of delivery

at destination. For Guasch (2011), logistics is becoming a crucial element of competitiveness and

economic performance, both in itself and in the context of increasing globalization.

The stages that the DFI comprises are: analysis of the load to be transported, preparation of the

packaging and packaging, selection of the mode of transport, costs and documentation, depending

on the type of product the physical distribution will be more or less complex, just as the costs will

vary considerably, in the case of one or the other, since it is not the same to physically distribute

perishable or non-perishable products, liquid or solid, flammable or harmless, gaseous or non-

gaseous, small in size or very large, taking into account that the philosophy of the DFI is put the

product in the required place, at the exact moment it is needed, at a reasonable cost.

It should be noted that a good DFI system allows to reduce inventories, decrease costs,

increase sales and fully satisfy customers. One of the great allies of the DFI have been the

computer and telematic technologies, the systems for tracking products in transit, stocks and

inventories, barcode scanners, tracking shipments by means of satellites and all that information

accessible through The Internet is revolutionizing the concepts of physical distribution. One of

the strategies to achieve this competitiveness is the correct planning of international physical

distribution, in terms of costs and activities involved in the process, taking into account that

within the logistics chain represent a representative item.

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

borders and delivering products in the corresponding country. Unlike common transport, this
transport involves different transport policies depending on the country where the products are

shipped. This is one of the main operations of the DFI, and depending on the negotiated

incoterms, it defines the shipping and delivery route to the buyer. To choose the mode of

transport you must take into account: the rate, the distance, the transit time, the value of the

merchandise, the insurance, the packing and packaging, the costs and the times of loading and

unloading.

In conclusion, we can say that international trade contributes significantly to the

development and economic growth of a country, therefore, the logistics system became its

primary element. Consequently, the logistics system of the countries has a direct impact on the

logistics operations costs of the productive chains of the sectors of the economy. The level of

development of the system marks the economic growth and the ease of integration of a country to

the world economy. The document indicates that emerging countries such as Brazil, India and

China have become major competitors since they have bet their strategies on logistics as a key

piece for their economic growth. In the Colombian case, the logistics system is currently lagging,

so the main reason for the excessive costs assumed by the country's exporting companies is the

cost of transportation due to the delay in infrastructure (rail, air, sea and land) making it the most

expensive item when it comes to exporting. The Colombian infrastructures applied to foreign

trade indicate that the incidence on the costs and operations of exports is direct and that to a large

extent the international indicators that position Colombia in the last positions of efficiency are

given for reasons of corruption, lack of administration and low government investment in the

sector. Resulting in products with high logistics costs that significantly affect exporting

companies. The impact of the national logistics infrastructure on Colombian exports is highly

costly in monetary terms, in terms of time and in procedures.