New breakthrough tip: #Logistics plays a crucial role in our globalized world. It is not only a key driver of #globalization & #facilitator of #international trade, but also a vital element for #delivery of humanitarian and emergency aid. That is why our #team is strong, #well-trained and has an international culture. As Mangan et al. put it: ‘the global economy today is increasingly #interconnected with logistics playing an essential ‘lubricating’ role – just as oil lubricates a car engine (without oil the engine would quickly seize up), so too the global economy relies on efficient and effective logistics systems in order to function (just look for example what happens when transport services are delayed or there is industrial action at a port or airport)’ There are six aspects of global sourcing #alternatives with issues to consider: - Purchase price: the total price, including #transaction and other costs related to the actual #good or #service delivered - #Transportation costs: transportation and #freight costs, including fuel surcharges and other costs of moving products or services from where they are produced to where they are required - Inventory carrying costs: storage, #handling, #insurance, depreciation, obsolescence and other costs associated with maintaining inventories. - Cross-border taxes, tariffs and duty costs: sometimes called ‘landed costs’ – costs associated with customs duties, shipping, insurance and other related fees and taxes - #Supply performance: the cost of late or out-of-specification deliveries, which, if not considered properly, can offset any price gains attained by shifting to an overseas source - Supply and #operational risks: #geopolitical factors related to changes in a country’s #leadership, #trade policy changes or instability caused by war or natural disasters – all of which may disrupt supply
Posted on: Fri, 29 Aug 2014 10:30:00 +0000