SUMMARY: It’s impossible to have global trade without international logistics. Businesses are shipping goods from one country to another, even on different continents, and an international logistics company takes that stress away while building the economy.
Roles and Economic Importance of International Logistics
The Council of Logistics Management (CLM) terms logistics as the planning, executing, and managing the efficient and effective transport and storage of products, services, and any related data from the point of production to a customer’s location.
International logistics is all the above plus inventory, shipping schedules, production, packaging, transportation, distribution, storage, and security for companies’ supply chains outside their borders. In simple terms, international logistics is the process involved in moving goods from one country to another. However, the country your business operates in has to be a participant in the global trade.
An international logistics company can help you
• Improve your customer service and response time
• Reduce distribution and transport costs
• Increase sales
• Improve quality management
• Support your product’s life cycle
• Consolidate transport costs
What is the role of international logistics?
Order processing
Logistics operations require the details of the transaction between the customer and the supplier. An international logistics company needs this information to get details such as prices, payment, and delivery terms. They also need to check whether the materials ordered are in stock and indicate and acknowledge any deviations with the order.
Inventory control
An international logistics company is responsible for striking a balance between the customer service and the cost to meet the service, not to lose the market opportunity. It an essential process in the supply chain and can cost a lot of money.
Warehousing
Finished products are stored in a warehouse and wait to be sold or shipped. The logistics company ensures the goods are stored in the right location with the right conditions. Improper warehousing management can cause significant losses to a company. That’s why it’s essential to choose the right logistics partner for your business.
Transportation
This is the most critical component or function of the logistics company. They are responsible for facilitating the movement of goods from the supplier to the buyer. They choose the best mode of transport and negotiate the best prices for the transportation of goods to the customer. If the customer wants express delivery, the logistics company ensures that it happens. A logistics company does all this while adhering to the laws within the country they are operating from.
Information and communication
Information and communication within the supply chain are essential for a logistics company. It helps in vital processes such as identification, access, storage, retrieval, analysis, and decision making.
Why is international logistics important to the economy?
International logistics is the instrument that builds strategic infrastructure for global integration. International trade logistics affect the regional, national, and international economic entities of organizations that access global markets.
The expansion in trade and logistics infrastructure has increased demand in the economic system for particular products and services, including manpower. International logistics also helps companies to create a more extensive customer base for their products.
It’s impossible to have global trade without international logistics. Knowing how the logistical process works can help you make the most of it and even save some money while building the economy.