International negotiation

SENA

Jhonatan Ortiz Montaña

Learning Activity 12

Evidence 4: Virtual session "Debate and support your essay"

Bogotá D.C

2019
The previous essay was this one:

Advantages and disadvantages of international physical distribution costs

In any company that has plans to export must take into account transport and
international distribution to the target market, these two fundamental variables
must be properly handled by the company this so that the product or products
that will be sending arrive on time and correct from the factory to the consumer.

One of the most important things for entrepreneurs is the distribution this is an
issue that must face that usually is very difficult to deal with because costs are
usually high and this creates additional costs in the product and therefore
raising the price of the product for the consumer. And this business activate a
productive chain, which, in any error or problem in one of the stages of the
product distribution process will be suspended.

For this there was created and international physical distribution, being the
logistical process that allows us to export products is carried out. Its main
objective is to reduce costs, time and risks when transporting products from
their origin to their destination.

It is important to expanding and seeking opportunities in a company, so this

should be kept in mind that investments of time, effort and money are made to
be sure that these investments are safe should have a good logistics can
reduce costs products to make them more accessible to consumers and so the
company has a higher profit. The evaluation of the logistics department within a
company is the satisfaction of the customer, fluency in internal monitoring
processes, production and transportation. If all these above points are positive
the company will benefit.

If the logistics company is good and reduced costs can invest resources in
many more things as boost productivity and improve competitiveness, the same
can improve the management of the company and likewise can expand markets
access to products and thus significantly increase customers.

Some strategies to reduce costs include:

"one. Optimize orders
There's something you should keep in mind is that if there are fewer orders,
higher logistics costs. To resolve this problem should try to consolidate your
orders, optimize the transport type or leverage other charging options. In
addition, it is advisable to analyze the number of weekly orders, volume and
delivery addresses.

2. Using mobile technologies

It is very important to know what kind of benefits can offer the technology used,
so we describe them below:

Use technology allows all the information needed by the operator, that no
matter what is playing area.
Improves processing times of orders in distribution centers, since there is no
need of a barcode reader; something that makes the difference when it comes
to picking, as the operator already knows how to "take" to fill an order.
Moreover, it takes into account that technology provides freedom of movement,
which benefits greatly productivity.

<< Why the big data is an ally in logistics? >>

3. Minimizes waiting times

As simple as it is: if the waiting time is much greater the logistical cost.

To resolve this problem should monitor average waiting times your carriers to
identify distribution centers with high service costs.

4. Avoid excess inventory obsolescence

A canning merchandise not sold, does not always keep its value. In some cases
it might be more profitable to donate to keep it. A correct analysis helps making
these decisions.

5. Use of active
Remember maximize the use of company assets to avoid further expense
renting machinery and spaces which are not needed. An analysis of the stock
will give you an idea of saving opportunities.

6. Strategy assortment
When you have more choice, higher the cost per item; the necessary storage
spaces require larger, causing the logistics more complex. Therefore, you must
find the balance between range and cost to increase your profits.

7. Traceability
This is the series of processes that track the evolution of the product at each
stage. This way, you meet the requirement of customers control the growing
volume of information about products and services. The important thing here is
to keep track to meet real-time location of your products. "
(GrupoEI, 2019)

But if you do not have good control over costs can generate operational risks
that go hand in hand with economic and political risks of the company that can
trigger many more negative effects affecting demand for the company and
therefore can damage or miss in inventories to meet the needs of the market,
which would be very damaging for the company

In conclusion we can say that the international physical distribution must have
certain characteristics such as capacity building to generate support for the
internationalization of their product and market without forgetting that corporate
success is not measured today in quantitative or qualitative being this a
important factor in competitiveness and improve the profitability of import
operations.

Why I think my essay is successful

From my perspective, I think that my essay was quite clear in the way we
should face the advantages and disadvantages of physical distribution

In this essay show the different advantages and disadvantages and how to
solve the disadvantages and potentiate the advantages.

If the restraints are not followed, the specific company or company may be put
at risk, as a much more serious intervention would be necessary. Poor capital
management and a very high supply and a very low demand can put the
economic health of a company at risk, so the strategies given in the previous
trial should be followed for greater economic stability of the company

You must find a logistics company that allows us to reduce costs and increase
the speed of delivery of the goods to be exported, so that an adequate supply
and demand can be balanced.

A clear example is that of the APPLE Company which has managed to have an
exclusivity in its products and not make an excessive offer on its products in
addition to being inventive and innovative.

In addition to the fact that the company as well as its stores and products
control its manufacturing parts, thus avoiding fraud or copies throughout the
world, which would greatly damage its demand.