EVIDENCIA 1: WRITING AND ESSAY ABOUT LOGISTICS COSTS

NATALIA ANDREA BLANCO CERVANTES

DANIELA CORONADO VERA
CESAR AUGUSTO ARDILA CASTRO
YENNY MARCELA MARTÍN CASTILLO
APRENDICES

JOSE HELBERT VARGAS VARGAS

INSTRUCTOR

SERVICIO NACIONAL DE APRENDIZAJE

TECNÓLOGO NEGOCIACION INTERNACIONAL
BOGOTÁ, 2018
 BUSINESS COMPETITION IN THE INTERNATIONAL PHYSICAL
DISTRIBUTION

The International Physical Distribution, known by its acronym DFI

(Distribución Fisica Internacional), is the logistic process that is developed around
placing a product in the international market complying with the terms negotiated
between the seller and the buyer. Its main objective is to reduce to the maximum the
times, costs and risk that may be generated during the journey, from the point of
departure at origin to the point of delivery at destination.

Business competitiveness ensures the survival of companies in the long-term

market, in all segments to which they want to access with products, in the local and
international context.

One of the strategies to achieve this competitiveness is the successful

planning of the international physical distribution, in terms of costs and activities
involved in the process, taking into account that within the logistics chain they
represent a representative item. This planning will materialize in cost reduction,
inventory optimization, improvement in customer service levels, optimization of
transportation routes and adequate selection of means and modes of transport.

Due to the growth of international trade, both countries and companies must
know in detail all the processes required for the proper commercialization of their
products. That is why international logistics are a decisive part involved in the
handling of goods. DFI, an international physical distribution, that vary according to
the type of product that will be commercialized and its philosophy is to put the product
at the required location, at the exact time it is needed, at a reasonable cost. The use
of a DFI is an indicator that helps to differentiate one company from another
competitively, since each one seeks to implement the best solutions for the logistics
of its products.

Now a concern arises. Is it worthwhile to implement different strategies for

international physical distribution, regardless of the costs that these imply for
companies and countries?
 One of the biggest challenges of transportation nowadays is oil prices. The
movement of cargo depends to a great extent on increasingly expensive and finite
fossil fuels, mainly diesel fuel. The great paradox that we find in this situation is that
undoubtedly with greater demand for exports and imports of products around the
world, the operational logistics costs increase as well. We can see the clear example
of the USA where a large part of these costs increase due to the logistic of cargo
handling in the main ports and thereafter the large chain that covers these
operations. For example, the roads are forced to expand and adapt since the
increase on import/export operation cause deterioration to the roads. For this reason,
we consider that this expenses must be taken into account, as they may not affect
directly to an exporter which capacity of operation is reduced, nonetheless it clearly
affects big worldwide operations and it must undoubtedly be taken into account in
the country’s economy plans.

In Colombia we have an even greater challenge, many believe that because

of our geographical location we must feel privileged, but unfortunately the
government do not see or don’t want to take advantage of that privilege, the
monopoly of cargo trucks makes transporting products a titanic and expensive task,
where real costs of the operation are not taken into account, where the roads are in
unfavorable conditions and the internal conflict, causes the risks and operational
costs to increase. For this reason, we consider it a monumental task to try to become
a large exporter when the conditions are not given in our country.

BIBLIOGRAPHY

 https://bibliotecadigital.ccb.org.co/bitstream/handle/11520/11675/100000048.pdf
 http://www.scielo.org.co/scielo.php?script=sci_arttext&pid=S0120-81602011000100013
 Calle, J. C. (2007). Distribución Física Internacional. Medellín, Colombia.
 Ruibal Handabaka, A. (1994). Gestión Logística de la Distribución Física
Internacional. Grupo editorial Norma S.A. Colombia. Páginas 3-67, 181-242, 251-
321.
 Villamizar M, M. (2010). Logística y distribución física internacional: Clave en las
operaciones de comercio internacional: (Online). Citado en 2010-08-20. Disponible
en www.ccb.org.co
 http://export.promperu.gob.pe/Miercoles/Portal/MME/descargar.aspx?archivo=9157
E8CF-1B2C-4014-95C6-BD936988CCA0.PDF
 https://www.icesi.edu.co/icecomex/images/stories/pdfs/Simulador-costos-
ProColombia.pdf