Slide 1Learning ObjectivesInternational Logistics Key TermsInternational Logistics Key TermsInternational LogisticsMacroenvironmental Influences on International LogisticsMacroenvironmental Influences on International LogisticsMacroenvironmental Influences on International LogisticsMacroenvironmental Influences on International LogisticsSlide 10Figure 14-3: A Package Marked for ExportSlide 12International DocumentationInternational DocumentationTerms of SaleTerms of SaleTerms of Sale Incoterms 2000Methods of PaymentFigure 14-4: Letter of CreditMethods of PaymentInternational Trade SpecialistsInternational Trade SpecialistsInternational Trade and Supply Chain SpecialistsSlide 24Transportation Considerations in International LogisticsOcean ShippingWorld’s Busiest Container Ports (2008)International AirfreightSurface Transport ConsiderationsInternational Trade InventoriesLogistics Performance Index (LPI)Logistics Performance Index (LPI)Highest- and Lowest-Rated Countries Based on Overall LPI ScoreCase 14-1 Nurnberg Augsburg Maschinenwerke (N.A.M.)Slide 35Case 14-1 Nurnberg Augsburg Maschinenwerke (N.A.M.)Case 14-1 Nurnberg Augsburg Maschinenwerke (N.A.M.)Case 14-1 Nurnberg Augsburg Maschinenwerke (N.A.M.)Case 14-1 Nurnberg Augsburg Maschinenwerke (N.A.M.)Chapter 14International LogisticsLearning Objectives•To understand macroenvironmental influences on international logistics•To examine documentation as well as terms of sale and methods of payment for international shipments•To distinguish among the unique activities of international trade specialists•To examine transportation and inventory considerations in international distribution•To introduce you to the Logistics Performance Index© 2008 Prentice Hall 12-2International LogisticsKey Terms–Balance of payments–Cargo preference–Certificate of origin–Commercial invoice–Embargos–Export management company–Export packers•Import quota•Incoterms•International freight forwarders•International logistics•Letter of credit•Load centers•Logistics performance index (LPI)© 2008 Prentice Hall 12-3International LogisticsKey Terms–Macroenvironmental influences–Methods of payment–Nontariff barriers–Nonvessel-operating common carrier (NVOCC) –Ocean carrier alliances–Open account–Open skies agreement–Shipper’s export declaration (SED)–Shipper’s letter of instruction (SLI)–Shipping conferences–Short sea shipping–Tariffs–Terms of sale© 2008 Prentice Hall 12-4International Logistics•International logistics are logistics activities associated with goods that are sold across national boundaries.© Pearson Education, Inc. publishing as Prentice Hall14-5Macroenvironmental Influences on International Logistics•Macroenvironmental influences refer to the uncontrollable forces and conditions facing an organization and include cultural, demographic, economic, natural, political, and technological factors.Source: http://www.marketingpower.com/_layouts/Dictionary.aspx?dLetter=M.14-6Macroenvironmental Influences on International Logistics•Political factors–Political restrictions on international trade can take a variety of forms•Tariffs•Nontariff barriers–Import quota•Embargoes–Degree of federal government in cross-border trade•Balance of payments•Subsidies•Cargo preference rules14-7Macroenvironmental Influences on International Logistics•Economic factors–Currency fluctuations–Market size–Income–Infrastructure–Economic integration14-8© Pearson Education, Inc. publishing as Prentice HallMacroenvironmental Influences on International Logistics•Cultural factors–Religion–Values–Rituals–Beliefs–Languages14-9© Pearson Education, Inc. publishing as Prentice HallFigure 14-2: Some of the Symbols Used for Packing Export Shipments14-10© Pearson Education, Inc. publishing as Prentice HallFigure 14-3: A Package Marked for Export14-11© Pearson Education, Inc. publishing as Prentice HallTable 14-1: Beginning Dates for the Chinese New Year, 2011-201814-12International Documentation•Flow of documentation is as much a part of the main logistical flow as the flow of product•Domestic shipments typically only require several pieces of documentation•Export shipments typically require approximately 10 pieces of documentation•Cross-border trades can require more than 100 separate documents14-13International Documentation•Necessary documents are required at the point of importation•Commonly used documents include:–Certificate of origin–Commercial invoice–Shipper’s export declaration (SED)–Shipper’s letter of instruction (SLI)14-14Terms of Sale•Terms of sale involves:–Parties working within the negotiations channel–Looking at the possible logistics channels–Determining when and where to transfer the following between buyer and seller:•Physical goods•Payment for the goods, freight charges, and insurance for the in-transit goods•Legal title to the goods•Required documentation•Responsibility for controlling or caring for the goods in transit, i.e. livestock14-15Terms of Sale•Terms of sale for international shipments are commonly referred to as Incoterms.–Use is not mandatory, but generally accepted by legal authorities, buyers, and sellers worldwide–Begin with the letters C,D, E, or F 14-16Terms of SaleIncoterms 2000•EX-Works (EXW)•FCA (Free Carrier)•FAS (Free Alongside Ship)•FOB (Free on Board)•CFR (Cost and Freight)•CPT (Carriage Paid To)•CIF (Cost, Insurance, and Freight)•CIP (Carriage and Insurance Paid To)•DES (Delivered Ex Ship)•DEQ (Delivered Ex Quay)•DAF (Delivered at Frontier)•DDP (Delivered Duty Paid)•DDU (Delivered Duty Unpaid)14-17Methods of Payment•Methods of payment refer to the manner by which a seller will be paid by a buyer.•Much more challenging in international logistics vs. domestic logistics•Four methods of payment include:–Cash in advance–Letters of credit–Bills of exchange–Open account14-18Figure 14-4: Letter of CreditMethods of Payment•Payment method –Should be established at the time that a shipment price is decided upon–Can be influenced by key factors such as •the country the product is to be sold in•the seller’s assessment of buyer riskInternational Trade Specialists•International Freight Forwarders specialize in handling either vessel shipments or air shipments.14-21© Pearson Education, Inc. publishing as Prentice HallInternational
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