International logistics pipeline

The extended lead time inherent in international logistics pipelines means that products run the risk of becoming obsolete during their time in transit. This is... 

The international logistics pipeline, shown in Figure 4.3, is made up of the same basic elements as any other pipeline. However, this pipeline has a number of special characteristics. Use Table 4.3 to make a list of the characteristics that you believe make a global logistics pipeline different from one that operates only nationally. 

Figure 4.7 Comparison of domestic and international logistics pipelines...

Related to this last point, the achievement of the required changes in international logistics pipelines is a central issue. In the research presented in Figure 4.7 (van Hoek, 1998), it was found that, across companies, large differences can be found in reconfiguration paths. This was found even in cases where the same supply chain stmcture (a traditional factory warehouse, as displayed in Figure 4.10) was targeted. Differences included ... 

In general, complexity in the supply chain is made worse at an organisational level because of aggressive global and international sourcing of materials and products. This reduces the cost of goods sold. However, complexity adds substantial distance, time and dependence on the international logistics pipeline. These increase the risk of supply chain failures. 

Owing to internationalisation, logistics pipelines are extended and have to cope with differences in infrastructure across countries, while needing to realise delivery within the time-to-market. This may drive localisation. On the other hand, the opportunity for global consolidation may drive international centralisation. 

Lead time spent in the logistics pipeline increases the holding cost of inventory. In addition to the time spent in physical transit, goods travelling internationally will incur other delays. These occur at consolidation points in the process, such as in warehouses where goods are stored until they can be consolidated into a full load, such as a container. Delay frequently occurs at the point of entry into a country while customs and excise procedures are followed. 

International logistics is complex, and different from localised logistics pipelines. The main differences that need to be taken into consideration are ... 

After decision of order or production quantities, transportation decisions should be made. The company may have a contract with third party carriers or may use its own trucks and transportation facilities to deliver products to customers. Especially, international firms need to consider modes of transportation, inbound and outbound logistics costs. Road, railway, waterway, air, and pipelines are common modes of transportation. Intermodal transportations are possible as well. 

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