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EVIDENCIA 1: WRITTING AND ESSAY ABOUT LOGISTICS COSTS

INSTITUCION UNIVERSITARIA

SERVICIO NACIONAL DE APRENDIZAJE

SENA

APRENDICES:

NICOLAS FERNANDO NIÑO NIÑO

PROGRAMA

TECNOLOGO EN NEGOCIACION INTERNACIONAL

2021
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Evidencia 1: Writing and essay about logistics costs

En el mundo de los negocios internacionales es importante evaluar y analizar

distintas situaciones que pueden ser de beneficio en la toma de decisiones; por
esta razón, a través de esta evidencia podrá conocer las ventajas de reducir los
costos logísticos y de transporte en la distribución logística internacional,
además, conocerá cuáles son las desventajas de estos altos costos, cuestiones
que le serán de gran ayuda en su quehacer laboral.

Para desarrollar esta evidencia, es importante que lea y analice previamente el

material de formación denominado Essay structure and grammatical tenses,
específicamente en el tema Writing an analytical essay, y el vocabulario
disponible en el subtema Linking words, además del siguiente material
complementario:

 The real impact of high transportation costs.

 Sample outline # 1.

Posterior a estas lecturas Elabore un escrito en inglés sobre la Distribución

Física Internacional (DFI). (No olvide incluirle una portada, introducción y
conclusión a su escrito).

Desarrolle esta evidencia con la herramienta de su preferencia y envíe el

archivo al instructor a través de la plataforma virtual de aprendizaje.

Pasos para enviar evidencia:

1. Clic en el título de la evidencia.

2. Clic en Examinar mi equipo y buscar el archivo previamente guardado.
3. Dejar un comentario al instructor (opcional).
4. Clic en Enviar.

Nota: esta evidencia la pueden desarrollar de forma individual o de forma

colaborativa (grupos de trabajo).

Criterios de evaluación

 Explica claramente su punto de vista sobre un tema técnico de

actualidad en su profesión.

 Explica claramente las ventajas y desventajas de una posible

decisión en lo técnico.
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CONTENT

INTRODUCTION…………………………………………………4

INTERNATIONAL TRANSPORT……………………………………6

CONCLUSION………………………………………………………..11
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INTRODUCTION

Competitiveness between companies allows a long-term productivity in the

market, including all segments that you would like to access with new or
existing products, talking in local and international terms.

One of the best strategies to achieve this competitiveness is creating a

successful plan of the international physical distribution, in terms of the costs
and activities involved in this process, considering that within the logistics chain
represent a field representative. This plan will materialize in cost reduction,
inventory optimization, improvement in customer service levels, and
optimization of transport routes and proper selection of means of transport.

However, Colombia has a geographical location that allows it to access the

Atlantic and Pacific oceans. Through six ports over the Atlantic, Colombia has
its most important mineral exports from the north of the country, as well as
communication with Europe, the Caribbean and Central and North America.
Over the Pacific Ocean are two ports, the most important container movement
in the country which is Buenaventura, both import and export, and the port of
Tumaco which cover imports of sugar mainly. At the land level it has borders
with five countries, Panama, Venezuela, Ecuador, Peru and Brazil, of which
only Ecuador and Venezuela have a customs-enabled border crossing and with
which trade agreements are held.

Also is required to keep in mind this accelerated evolution of current

negotiations, the logistics variable becomes the obligatory complement to
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international agreements that allows to optimize the times and costs of the
transport, storage and from import to end consumer and allowing exporters to
improve their FOB costs to enter international markets at competitive prices.

Therefore, the main objective of this test is to show how big is the impact about
costs in a country's commercial logistics and how these affects foreign trade
operations that are ultimately translated into costs supported by the exporting
entrepreneur.

In this case Colombia is taken, together with the entities involved, the customs
procedures, infrastructure and means of transport that are the costs of this big
impact in the process of an export.

This document seeks to show where the deficiencies that directly affect the
costs that the exporting companies in Colombia must bear and the solutions
posed by the different authors and economic entities to remove the country from
the logistical lag currently present, thus achieving the reduction of excessive
operating costs.

INTERNATIONAL TRANSPORT
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International transport, also known as main transport, is responsible for crossing

borders and delivering products in the destination country. It is the backbone of
DFI's operations, and depending on the Incoterms negotiated, it defines the
shipping and delivery route to the buyer.

WHY ARE MEANING OF TRANSPORTS EXPENSIVE AND WHICH ONE IS

THE BEST FOR MY BUSINESS?

To answer that question is required to look at main means of transport currently

available when talking about export and import procedures.

AIR TRANSPORT FEATURES

Airport is contracted to Airport through air cargo agents. The load is loose and is
shipped for quotas or positions. Transport document: Air Guide (AWB).
Advantages: Speed, Reliability, Security, lower insurance costs. Disadvantages:
It is the most expensive; limited capacity, restricted for certain dangerous
products.
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MARITIME TRANSPORT FEATURES

Applies to sea waterways, or inland waterways such as rivers or lakes. Port to

Port is contracted through freight agents or shippers. The cargo is shipped in
specialized containers for which it must be consolidated. Transportation
document: Bill of lading (B/L). Advantages: lower fares, high-volume mass
transportation, diversity and ship specialization, no restrictions on hazardous
products. Disadvantages: low speed, insurance and more expensive packaging,
port costs, high risks of shearand and deterioration, more spaced frequencies
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ROAD TRANSPORT

Applies for road and road transport. Door to Door is contracted through freight
agents. The cargo is transported in specialized containers according to its
characteristics. It has no restrictions on dangerous products Depending on
distances it may be less expensive than air, but more expensive than maritime.
Transport document: Letter of carriage (CMR ).
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GROUND TRANSPORT BY TRAIN

Applies only for rail transport. Terminal is contracted to Terminal through cargo
agents the cargo is transported in specialized containers according to its
characteristics. It has no restrictions on hazardous products. It is the least
expensive of land transport especially over long distances. Transport document:
Letter (CIM)
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As we can see, everything will depends on your requirements for you and your
cargo, nowdays prices are increasing because of the characteristics per
meaning of transport, however the lack of investment in transport infrastructure
affects negatively, therefore, this way limits the supply chain of products at a
global level, thereby generating a rise in the final process of each product.

Clearly the international physical distribution, being this the process of export of
products and/or service that has as main objective to reduce to the maximum
the risks, times and costs from the origin like point of departure until the destiny
like final point. In other words, any failure in one of the stages of a product can
suspend the distribution system that affects international trade. As for the
positive aspects that benefit the companies besides creating strategies to
counteract the distances and to be able to carry out their activities as close as
possible to the final market we see that the companies are modifying the way in
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which they pack their products in such a way that these occupy less space and
weight so that all the costs as well as of transport are reduced.

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.

CONCLUSION
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In the companies there are basic systems that facilitate their operations, one of
them is the logistics system related to the flow of materials from suppliers to end
users and whose establishment requires an exhaustive analysis and study to
achieve that the company has a fully integrated logistics element, so that it can
fulfill the mission that is incumbent on it and consists of a system that executes
customer service policies at the lowest possible cost. This is how issues such
as the transport of goods from their preparation, handling, preparation of
documents, especially when there are high operational costs, international
standards of managements as well as environmental and multiple options in
modes and means of transport that make companies mark more and more
comparative advantages that allow them not only to survive in our markets but
to grow steadily with competitive advantages, thus contributing to the
achievement of the objectives outlined in the country’s economic policy.

About Colombia, the logistics system is currently lagging behind, so the main
reason for the excessive costs borne by the country's exporting companies is
the cost of transport due to the backlog in infrastructure (rail, air, sea and land)
making it the largest item when it comes to exporting.

The decisions in the international physical distribution not only involve important
aspects such as cost, there are variables that can guarantee the success or not
of the international logistic operation, like: packaging, packing and unitarization
of the load, in addition to the Full knowledge of the type and nature of the cargo
to be exported and all the physical conditions necessary to ensure that the
product will reach your customer according to the agreed parameters.