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1、CHAPTER 14Global Logistics StrategiesThe Global Logistics Management ProcessaEnvironmentalanalysis1. What are the unique characteristics of each national market? What characteristics does each market have in common with other national markets?2. Should the firm cluster national markets for logistics
2、 operating and/or planning purposes? 3. Who should make logistics decisions?4. What are our major assumptions about target markets? Are they valid? 5. What are the customers service needs of the target markets?6. What are the characteristics of the logistics systems available to our firm in each tar
3、get market?7. What are our firms major strengths and weaknesses relative to existing and potential competition in each target market?8. What are our objectives, given the logistics alternatives open to us and our assessment of opportunity, risk, and company capability?9. What is the balance of payme
4、nts and currency situation in target markets? What will be their impact(s) on our firms physical distribution system? PlanningThe Global Logistics Management Process (cont.)Plan implementation10. How do we structure our logistics organization to optimally achieve our objectives, given our skills and
5、 resources? 11. Given our objectives, structures, and our assessment of the market environment, how do we develop effective operational logistics plans? Specifically, what transportation, inventory, packaging, warehousing, and customer service strategies do we have for each target market?StructureCo
6、ntrolling the logistics program12. How do we measure and monitor plan performance? What steps should be taken to bring actual and desired results together?14-2 bGuidelines for Developing a Global Logistics StrategyLogistics planning should be integrated into the companys strategy.Logistics departmen
7、ts need to be guided by a clear vision and must measure output regularly.Import/export management should try to ensure integrated management of all elements of the logistics supply chain, from origin to destination.Opportunities to integrate domestic and international operations should be pursued to
8、 leverage total company volumes with globally oriented carriers.14-3Financial Aspects of Global LogisticsWorking capitalInventoryCreditInvestment in building and equipment modation of merchandise adjustments14-4How a Letter of Credit Works1) Seller asks buyer for letter of credit (L/C).2) Buyer asks
9、 its bank to issue L/C in accordance with sellers terms.3) After approving buyers credit line, buyers bank notifies sellers bank that it has issued L/C.4) Sellers bank either adds confirmation (guarantees payment to seller) or simply advises seller that L/C has been issued.5) Seller makes shipment,
10、presents documents in accordance with L/Cs terms.6) Sellers bank examines and approves documents, then sends them to buyers bank by air mail or courier.7) Buyers bank examines and approves documents. Once approved, it debits buyers account and wires money to sellers bank.8) On receipt of funds, sell
11、ers bank credits sellers account. (If a confirmed L/C, sellers bank would have paid seller after Step 6.)Source: Adapted from James Aaron Cooke, “What You Should Know about Letters of Credit,” Traffic Management 29, no. 9 (Sept. 1990), pp. 44-45.14-5Warehousing QuestionsDoes the market for the organ
12、izations product justify a local warehouse?Is good warehouse labor available?How quickly do customers need products delivered?Are third parties an option?What are the relevant costs associated with public versus private warehousing?14-6NAFTAs Effect on U.S. Exports to Canada and Mexico*Figures in $U
13、.S. billions.Source: U.S. Department of Commerce (1999).14-7Strategies of Leading-Edge Companies as a Result of NAFTACustomer serviceManufacturingChannel designSourcingDistributionSales and marketingOrganization14-8Factors that Determine the Attractiveness of Individual Markets in Eastern EuropeDegree of country indebtedness.Development of the banking system.Level of productivity of industries and individual companies.Quality of workforce.Condition of infrastruc
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