SEMINAR PRESENTATION

ON
INTERNATIONAL LOGISTICS

CLASS – TY BBA GROUP MEMBERS

DIV – A IRFAN SHAIKH - 7133
GROUP NO. – 8 (MARKETING) UMESH KUMBHAR- 7118
International logistics
International logistics is the process of planning and managing the
flow of goods and products in your company's supply chain from
acquisition to customer purchase, where part of the process involves
crossing at least one international border.
Types of logistics
• Inbound logistics is one of the primary processes of logistics
concentrating on purchasing and arranging the inbound movement of
materials, parts, or unfinished inventory from suppliers to
manufacturing or assembly plants, warehouses, or retail stores.

• Outbound logistics is the process related to the storage and

movement of the final product and the related information flows from
the end of the production line to the end user.
• Distribution logistics has, as main tasks, the delivery of the finished
products to the customer. It consists of order processing, warehousing,
and transportation. Distribution logistics is necessary because the time,
place, and quantity of production differs with the time, place, and
quantity of consumption.

• Advance Logistics consists of the activities required to set up or

establish a plan for logistics activities to occur.
International logistics channels
• Transaction Channel
This channel involves buying, selling and the collection of payment.

• Distribution Channel
This channel involves the physical movement of resources and products
throughout the supply chain process, from acquisition to sale.

• Documentation/ Communication Channel

This channel involves the management of information regarding the
resources and products such as inventory controls, commercial shipping
documents and contracts.
 Difference between Domestic and International
Logistics
• Management
Domestic logistics companies have a single logistics manager to supervise
and manage all sides of planning and execution related to the movement of
goods. On the other hand, international logistics will have a corporate
logistics manager who will coordinate logistics activities with other
managers. This will require clear plans on execution and distribution
processes, and may lead to challenges in decision making.
• Transportation
Domestic logistics can utilize a variety of transportation options for moving
goods, out of which road transport is the most common preference. Road
transport in itself also provides a variety of options. With international
logistics, you have limited transportation options – some would require only
rail while others would require only flight or sea transport. International
logistics may also involve using multiple transportation alternatives for a
single transaction.
• Costs involved
In both domestic and international logistics, you have to consider the
costs involved with store facilities, transportation, workers and
technology. But, in international logistics, there are some additional
costs to be considered too which include tariffs, government taxes, fees
and currency exchange fluctuations.
• Supply chain relationships
In order to build relationships between businesses or between a business
and the customers, trust is the most important factor, which decides on
the nature of the relationship. It gets easier to build trustworthy
relationships domestically but, in international cases, different country
regulations, geography and economic roadblocks present more
challenges in building reliable relationships.
International logistics agencies
• On Time International Logistics Pvt Ltd - New Delhi (India)
• On Time International Logistics Pvt Ltd. - Mumbai (India)
• International Logistics Solution in India
• All cargo Logistics
• India – Broek man Logistics
• Capricorn Logistics
• IAL Logistics India Ltd
Modes of international transport
Air transport for international trade
Air transport offers numerous advantages for international trade, depending on
the requirements. It can:
deliver items quickly over long distances
give high levels of security for sensitive items
be used for a wide range of goods
However, there are the following risks:
 air transport can involve higher costs than other options, and is not suitable
for all goods
flights are subject to delay or cancellation
there are taxes to be paid in each airport
 fuel and currency surcharges will usually be added to freight costs
further transportation may be needed from the airport to the final destination
Sea transport for international trade
If the business needs to transport large quantities but there is no pressure to
deliver quickly, shipping by sea may be suitable.
Sea Transport advantages include:
 possibility to ship large volumes at low costs
shipping containers can also be used for further transportation by road or
rail
However, there are also risks for sea transport:
shipping by sea can be slower than other transport systems and bad weather
can add further delays
routes and timetables are usually inflexible
 tracking the goods’ progress is difficult
port duties and taxes
further transportation overland might be needed to reach the final
destination
Documents required
• Bill of Lading
A receipt and contract for the transportation of the goods, as well as a
title document. There are several types of bills of lading.

• Straight B/L (non-negotiable)-requires the cargo to be delivered to the

named consignee only.
• Shipper’s Order B/L (negotiable)-can be bought, sold, or traded while
the goods are in transit. In order to take possession of the goods, the
foreign buyer will need the original B/L as proof of ownership.
• Air Waybill-a non-negotiable document used for air shipments.
• Ocean B/L-a document issued by the ocean carrier.
• Certificate of Origin
Used by the exporter to certify the country of origin of the exported
goods. The certificate of origin is legalized by a local chamber of
commerce. See Consular Documents if needed to be legalized by the
embassy.
• Consular Documents
Required by some foreign customs services, these documents are
special forms/certifications that confirm the value, quantities,
consignor, consignee, etc. They are certified prior to export by the
Foreign Consulate Office stationed in the US. The embassy will
legalize the commercial invoice, certificate of origin, and other
supporting shipping documents.
• Commercial Invoice
The key accounting document for the goods from the seller to the buyer.
Used to determine the true value of goods for assessing Customs duties and
to clear the shipment through Customs. It must be completed in full and the
correct number of copies supplied. It should include (not comprehensive):
• country of origin (manufacture)
• complete description of the goods
• invoice quantity
• net and gross weights
• total number of packages
• value
• currency
• destination control statement
• certifications
• authorized exporter signature
• the following statement plus signature; “I hereby certify that this invoice is
true and correct.”
• Dock Receipt
A receipt showing that the shipment was received at the steamship
terminal. This form is supplied by the steamship line and completed by
the exporter or their freight forwarder.
• Electronic Export Information (EEI)
Required for all export shipments, this electronic export data must be
filed in the Automated Export System (AES). It replaced the Shipper’s
Export Declaration (SED).
• Export License
A permit issued by the U.S. government that grants approval for the
USPPI to export specific commodities, in given quantities/values, to a
named destination.
• Inspection Certification
Requested by the importer and arranged by the exporter in order to
certify merchandise grade, material contents, and quantities.
Inspections are performed by a certified third party agency like Societe
Generale de Surveillance, Bureau Veritas, or Cotecna.
• Insurance Certificate
Provides proof to the buyer that the goods are insured against loss or
damage while in transit. It can be in the form of a policy or a
certificate.
• Shipper’s Letter of Instruction
Used to control exports and as a source document for the authorized
agent to prepare the Electronic Export Information (EEI) filing on
behalf of the U.S. Principal Party of Interest (USPPI).
 UNDERSTANDING THE CRITICAL NATURE OF
PACKAGING IN INTERNATIONAL LOGISTICS

If you have a good export logistics team, then you will already have
had this conversation with them. However, if no one is bringing it to
your attention, this is something that you want to get on right away.
The following considerations drive home how important it is to have
the right packaging options:
Your goods are about to travel further than they ever have. Once they
leave your loading dock, on their international logistics journey, you
will have very little control over what happens to them. The quality of
packaging is in direct correlation with the condition of your product
when it arrives at the destination.
There is a long journey ahead that may include different conveyances.
Choosing standardized type packaging can help to curtail costs
regardless of the transportation type. Making it easier for carriers can
make it easier for your wallet. For example, taking up less pallet
footprints by utilizing flexible packaging options can cut down on
costs.
If you do not have the packaging that is in regulatory compliance in
the gaining country, you risk long delays and possible rejection at the
port of entry.
Packaging is a very serious consideration and you must make it a
priority for easy international logistics.
THE PROTECTION OF PACKAGING
There is a balance when it comes to international shipping, packaging and
protection. You do not want to overpack your products, as that will ring up
costs across the board, but you do want to make sure that you are using the
packaging that will protect against:
• Spillage
• Rough handling
• Unauthorized entry
Making the right impression with business partners around the world, starts
with delivering your goods as promised. Damaged goods are a relationship
risk you cannot afford, especially with new relationships. Having the right
packaging can greatly reduce the risk of loss during transportation.
The right packaging also makes it easier for transportation companies to
manage the load, which of course means less hassle for your operation from
the carriers.
THANK YOU