Logistics management covers the physical movement of products as raw materials from their point of origin to receipt by end users as a finished product.
Entrepreneurs need to understand international logistics because global production processes and delivery activities — encompassing all transportation modes and storage and distribution systems — are used more and more frequently to get a product to a customer.
Logistics management skills are one of the most needed competencies in global economies. International logistics is the design and management of a system that controls the forward and reverse flow of materials, services, and information into, through, and out of the international corporation
For a small business, production inputs may include outsourcing production processes or importing finished products or raw materials from international manufacturers.
Packing, labeling, transportation and insurance are also part of international logistics. Sea, air, rail and interstate road systems are important aspects of transportation logistics.
The cost of transporting materials and finished goods affects any decision about where to locate manufacturing facilities or which supplier to use to deliver a given production input. Keep in mind that some products cost very little to transport while others cost a great deal.
When Logistics partners don’t meet your expectations, it’s difficult to standardize the logistics flow, which reduces efficiency and decreases their level of commitment to your goals.
Add the extra time your personnel spend working through the chaos to the costs of the resulting inventory sub-optimization, and you have the current state of international logistics management at most U.S. companies.
What makes up a good Logistics Management Company
Inefficiency is amplified if your company is missing the following five components of complex international logistics operations:
- Strong partnerships.
- Standardization. .
The decision to choose among varies international logistics companies depends on many factors. First are foremost, make sure to check the company’s online reputation.