0308David Chapter 02.pdf - Chapter 2 International...

This preview shows page 1 - 7 out of 22 pages.

Chapter 2 International Logistics
Image of page 1

Subscribe to view the full document.

International Logistics Historical Development Logistics & Supply Chain Management Elements of International Logistics Economic Importance of Logistics International Reverse Logistics
Image of page 2
Historical Development The early “slow” days The move toward speed Customer satisfaction A strategic advantage
Image of page 3

Subscribe to view the full document.

The Early “Slow” Days The first international logisticians were traders on the Silk Road, a well-traveled trade route, in use for over 3,000 years, stretching from Europe to Asia and passing through the Middle East. Early modern logisticians were concerned primarily with ensuring goods arrived at their destination in good condition and at the lowest possible cost. Following World War II, logistics began to incorporate the techniques used by the military. Logistics began to refer to not just the movement of goods but also to sales, the procurement of supplies, and the management of supplier and customer relationships.
Image of page 4
The Move Toward Speed The introduction of containers (or “boxes”) in the late 1950s, and their eventual widespread adoption, made shipping much more efficient as well as cheaper and faster. In the 1970s, new companies, like FedEx and DHL, introduced time-defined air shipping services, and gained a large market share in domestic shipments. In the 1980s, international air shipments grew as costs came down and the number of destinations increased. Air transport became cost-competitive with ocean transport for many products.
Image of page 5

Subscribe to view the full document.

The Emphasis on Customer Satisfaction The very high interest rates of the 1980s led companies to reduce inventory levels. New inventory management techniques were created to reduce inventory costs. Those techniques included: Just-in-time (JIT) Materials Requirement Planning (MRP)
Image of page 6
Image of page 7

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern