Transcript NA_LS

University Of Finance & Administration
LOGISTICS SYSTEMS
[NA_LS]
Jiri Amler, M.A.
[email protected]
LECTURE FRAMEWORK
ENGLISH programme (winter term 2013)
 Logistics in international business
 Commercial terms
 Operational practices and risks
 Transnational and global logistics
 Multimodal transport and its centres and
infrastructure
 Providers of logistic services, their outsourcing
Within consultation: practical discussions on topical economical
issues
2.
INTERNATIONAL
LOGISTICS SYSTEMS
BUSINESS[NA_LS]
[B_IB]
LITERATURE
Alan Rushton, Phil Croucher, Peter Baker
The Handbook of Logistics and Distribution
Kogan Page Ltd., London 2010
ISBN: 0-74974669-2
Andre Langevin, Diane Riopel
Logistics System: Design and Optimization
Springer Science+Business Media, New York, 2010
ISBN: 0-38724971-0
Martin Christopher
Logistics and Suply Chain Management
3-rd Edition, Pearson education Ltd., London, 2005
ISBN-13: 978-0-273-68176-2
3.
INTERNATIONAL
LOGISTICS SYSTEMS
BUSINESS[NA_LS]
[B_IB]
INTERNATIONAL BUSINESS
 Reasons for participation in IB?
= the fact that almost no country is able to SATISFY its’
needs by own goods and base materials
- countries concentrate on manufacturing products which
are effective under given conditions (= theory of
comparative advantage)
 Free economy
= stage of involvement in the international trade
4.
INTERNATIONAL
LOGISTICS SYSTEMS
BUSINESS[NA_LS]
[B_IB]
INTERNATIONALIZATION
•- various research approaches
•= kind of „DEVELOPING & evolutional“ process: 3 forms (acc. to
the stage of involvement after expansion)
INTERNACIONALIZATION
• Gradual process
MULTINACIONALIZATION
• Production units abroad
GLOBALIZATION
• Operations in a global scale
INT = cover for international operations
5.
INTERNATIONAL
LOGISTICS SYSTEMS
BUSINESS[NA_LS]
[B_IB]
Dimensions of INTERNACIONALIZATION
• Material purchase /
components /
technology / goods
• FDI in a company
(impact on
competition at a
domestic market)
• (active IB in external
flow)
• Export
• Ownership of
production unit
abroad
• Licence / Contracts
INTERNAL
dimension
EXTERNAL
dimension
6.
INTERNATIONAL
LOGISTICS SYSTEMS
BUSINESS[NA_LS]
[B_IB]
GLOBALIZATION
 What is globalization?
= „the inextorable integration of markets, nation-states
and technologies…in a way that enabling individuals,
corporations and nation-states to reach the world farther,
faster, deeper and cheaper than ever before
(Thomas L. Friedman, The Lexus and
the Olive Tree, p.9)
 What are the Engines?
FDI (1980 – 2,4% global GDP / 2004 – 22% global GDP)
International Trade (1950 – 1% global GDP / 2004 – 22 % global GDP+
6% services)
Internet enables banking, consulting, education, retail, gambling
7.
MEZINÁRODNÍ
LOGISTICS
OBCHODNÍ
SYSTEMS
VZTAHY[NA_LS]
[MOV]
PLAYERS in GLOBALIZATION
1. Multinational corporation (MNC)
2. Multinational enterprise (MNE)
3. Multinational organization (MNO)
 Multinational corporation
= firm engaged in FDI, owning/controlling value adding
activity in more than one country – buy-global, produceglobal, sell-global
?top 10?
8.
INTERNATIONAL
LOGISTICS SYSTEMS
BUSINESS[NA_LS]
[B_IB]
EXPORT – PRIME ADVANTAGES
 Relatively low financial exposure
 Permit gradual market entry
 Acquire knowledge about local market
 Avoid restrictions on foreign investment
9.
LOGISTICS SYSTEMS [NA_LS]
INTERNATIONAL BUSINESS [B_IB]
EXPORT – PRIME DISADVANTAGES
 Vulnerability to tariffs and NTBs
 Logistical complexities
 Risk management complexities
 Potential conflicts with distributors
10.
LOGISTICS SYSTEMS [NA_LS]
INTERNATIONAL BUSINESS [B_IB]
FORMS OF EXPORTING
 Indirect exporting - firm that lacks experience with export, less
control over profit, deliberate promotional campaign
 Direct exporting – based on contract with foreign partner,
intermediator / gen. distributor / trade representative / commisioner /
piggybacking
 Intracorporate transfers – case of MNCs, transfer of goods to
the firm´s foreign organizational unit
11.
INTERNATIONAL
LOGISTICS SYSTEMS
BUSINESS[NA_LS]
[B_IB]
CONSIDERATIONS
 Government policies – export promotion and subsidizing vs.
tariffs and NTBs
 Marketing concerns – image, distribution, customer
responsiveness, continual feedback
 Logistical concerns – time, costs, volume, risk-sharing
 Distribution Issues – when using local distributor, may clash
with other products, own distribution network too costly
12.
INTERNATIONAL
LOGISTICS SYSTEMS
BUSINESS[NA_LS]
[B_IB]
RISKS of INT´L. EXCHANGE
 Direct and indirect trade barriers
 Share of mutual rights and obligations
 Finacial Risks
 Force Majeure
13.
LOGISTICS SYSTEMS [NA_LS]
INTL. TRADE BARRIERS
 Duty or tariff – export import
- ad valorem
- specific
- compound
 Quota – numerical limitation
 Voluntary export restraint
 Product & testing
 Restricted access to distribution
 Public sector procurement
 Local-purchase
 Regulatory/Currency/Investment Ctrl
14.
LOGISTICS SYSTEMS [NA_LS]
INCOTERMS 2010
15.
LOGISTICS SYSTEMS [NA_LS]
INCOTERMS additional terms
 Shipper – the one handing over to transport x the one
concluding the forwarding contract
 Delivery – delivery at or take-over of cargo
 Usual, Reasonable – better to refrain from
 Official – import fees acc. to valid trading conditions
 Point – detailed to „Place“
 Custom – be carefull with local port habits
16.
LOGISTICS SYSTEMS [NA_LS]
INTL. TRANSPORT DOCUMENTS
 seaway (conosament) B/L
 aircargo AWB
 rail cargo CIM, RWB
 road freight CMR (TIR)
 parcel service receipt
17.
LOGISTICS SYSTEMS [NA_LS]
PROBLEMS OF MULTIMODAL TRANSPORT
At parities C and D it is vital to make a good selection
of multimodal operator – as the forwarder firm acts as
carrier as well.
The Carrier set the conditions of disembarkment that
are crucial to the buyer – Liner Terms vs. Charter
Party
20.
MEZINÁRODNÍ
LOGISTICS
OBCHODNÍ
SYSTEMS
VZTAHY[NA_LS]
[MOV]
PROBLEMS OF MULTIMODAL TRANSPORT
CLEAN DOCUMENTS
 The documents shall not contain remark on the cargo
damage
 Otherwise not usable for L/C
 Reverse – the forwarder is binded to provide indemnity
to the shipping comp in case of the consignee claim
 Clause „Said to be…“
 At CIF and CFR – never use the time definition
(CFR Shekou, Apr. 28, 2011)
21.
MEZINÁRODNÍ
LOGISTICS
OBCHODNÍ
SYSTEMS
VZTAHY[NA_LS]
[MOV]
PROBLEMS OF MULTIMODAL TRANSPORT
CLEAN DOCUMENTS
 The documents shall not contain remark on the cargo
damage
 Otherwise not usable for L/C
 Reverse – the forwarder is binded to provide indemnity
to the shipping comp in case of the consignee claim
 Clause „Said to be…“
 At CIF and CFR – never use the time definition
(CFR Shekou, Apr. 28, 2011)
22.
MEZINÁRODNÍ
LOGISTICS
OBCHODNÍ
SYSTEMS
VZTAHY[NA_LS]
[MOV]
INSURANCE ISSUES
 Always obligation to conclude the insurance
policy at clause C, B or A
 min. C = loss or damage of goods
 Indemnity limit = min. 110% of the goods value
 Angular insurance – in case of further in-land
carriage of the goods it is neccessary to agree the
terms well beforehand.
23.
LOGISTICS SYSTEMS [NA_LS]
INSURANCE ISSUES
 Except CIF and CIP – the insurance is not
obligatory BUT:
 Myth: „my carrier is well insured, no need for
addtional policy…“
 Carrier´s insurance covers only the liability of
logistics performance
 Force Majeure and common collision are not
covered
24.
LOGISTICS SYSTEMS [NA_LS]
BASIC UNITS
FCL 20'
Payload: cca 28000 kg
Tara: 2 000 - 2 500 Kg
Volume : cca 30 m3
20x8x8ft
FCL 40'
Payload: cca 26000 kg
Tara: 3 500 - 4 000 Kg
Volume : cca 60 - 70 m3
40x8,6x8,6ft
25.
LOGISTICS SYSTEMS [NA_LS]
SHIPPING TERMS
Mode: FCL or LCL
TEU of FEU
Hook-to-Hook or Full liner terms
Free In / Free Out
Break Bulk Cargo
Weight or Measure W/M
Stackable cargo
Lost Slots – high-cube, open-top, flat-rack
26.
INTERNATIONAL
LOGISTICS SYSTEMS
BUSINESS[NA_LS]
[B_IB]
TRANSPORT FEES (additional)
THC – Terminal Handling Charges
CSC – Container Service Charges
DDC – Destination Delivery Charges
BAF – Bunker Adjustment Factor
CAF - Currency Adjustment Factor
Fuel Surcharge
Low Sulphur Fuel Fee
All-In
27.
INTERNATIONAL
LOGISTICS SYSTEMS
BUSINESS[NA_LS]
[B_IB]
EXPORT RISKS
 Unwillingness to pay / Bankrupcy
 Failure to takeover the goods
 Abuse of abstarct instruments – performance bond
 Poor knowledge of partner or local environment
 Mistake in payment place and time
 Misconduct in contractual terms – technical, qualitative,
quantitative …
28.
MEZINÁRODNÍ
LOGISTICS
OBCHODNÍ
SYSTEMS
VZTAHY[NA_LS]
[MOV]
SECURING FINANCIAL RISKS
 Short term credits
 Mid/Long term export financing
 Factoring
 Forfaiting
 Documentary transactions
29.
MEZINÁRODNÍ
LOGISTICS
OBCHODNÍ
SYSTEMS
VZTAHY[NA_LS]
[MOV]
PAYMENT TERMS
 T/T advance, deterred
 Documentary Collections D/A D/P
 Documentary Credits L/C irrevocable, at sight
 Bank guarantees
 Indemnity – securing the duplicate conosament
 Stand-by acreditive – negative fulfillment
30.
LOGISTICS SYSTEMS [NA_LS]
Thank you for your attention
31.
LOGISTICS SYSTEMS [NA_LS]