Pre Assignment

In: Business and Management

Submitted By allenwho
Words 965
Pages 4
Logistics has developed as an important area or function of business since World War II. It has gone through several phases of development in achieving its present status. It is a critical part of supply chain management. The coordination and, perhaps, integration of the logistics systems of all the organizations in a supply chain are necessary requirements for successful management of the supply chain. (Bowersox etc, 2007)

Logistics can be divided into two parts: domestic logistics and international logistics.
Difference between Domestic & International Logistics can be said to arise mainly on account of the three major factors :

1) Logistic costs is International Business is much more higher than the domestic business
2) The Logistic Mechanics are much more complex in the context of international logistics than the domestic logistics
3) The political, cultural and institutional factors connected with international logistics are of considerable importance whereas these are usually not of much consequence in the context of domestic logistics.(Networker, n.d)

Globalization of the world economy and our logistics has advanced at an almost unbelievable speed. Growth in world trade, and corresponding cargo container movements, continues to substantially exceed overall economic growth, meaning that trade volumes are doubling every 5-7 years.(Hill etc, 2001)

There are some roles of global logistics: • Globalization helped in doing business beyond the national boundaries. • Internet has made easier to do business across the globe. • Cargo movements need to be done physically, using available means of transport. • Speed & efficiency in the movement of goods is focused more. • Physical movement of cargo, intermediaries, freight forwarders, custom house is indispensable. • Domain knowledge, connectivity, documentation are three crucial areas. •…...

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