Running head: challenges in international logistics 1
challenges in international logistics 8
What sort of infrastructural challenges are we likely to encounter in International Logistics?
New Jersey City University
International Logistics is such a broad and diverse topic that its difficult to narrow down the possible issues but I will mention some of the most important to me. I believe that security is a huge concern due to the fact that products are being passed from supplier to supplier that when the package arrives to its destination, it probably has passed through so many different hands. Therefore, it is important to work with service providers that have secure supply chain forms. Another challenge would be the changing of customers needs. These days, logistics solutions must be custom fitted to each client. Transparency of order, perceivability from raw material to last merchandise deal and reverse logistics nearly ended up standard for some commodity group. Having the packages arriving on time is another challenge for international Logistics. For instance, packages that could usually take two weeks to arrive from Asia, it wouldn’t get to it final destination for almost a month or a little longer. This can be a small illustration of how it gets more challenging to keep on time deliveries. Fuel costs is another challenge to face because higher fuel prices are likely to increase transportation costs in the US by pushing up additional charges. Rising US diesel fuel costs are raising additional charges included to cargo rates, which is switching a two-year drift that cut into the income and profit of truckers as fuel costs plunged. People will always come back where they were treated well and that is a good customer service. Client want to know all the time where their package is. As a matter of fact, people are not willing to pay for fast shipping because of the extra charges that a less than two-day shipping would cost. By going International, this means adding distance, risks, time and some logistic equation. Since the global market is increasing, companies look for partners with infrastructure and knowledge to help.
Post, S. (2016, July 14). 3 logistics challenges to going global - and how to address them. Retrieved from https://www.businessinsider.com/sc/global-logistics-challenges-2016-7