Features of international logistics

World trade development, the intensification of export-import operations – all this allows us to say that it is necessary to meet the logistics needs of the company both locally and internationally. International logistics has become a generally accepted term: features and aspects, specific features of events, stages of cooperation with clients. This is a whole range of services, the purpose of which is to provide on-time transportation of goods from one point to another in the most economical, safe and reliable way. Monitoring is surely necessary as well as transport documents.

International logistics company

That is true that activities related to export-import operations carried out in the countries of the European Union and other regions will be more complicated. A reliable international logistics company is a consolidation of several participants in an activity with abidance by international rules regarding transportation and other types of business cooperation. Participants in this chain:

  • Customers
  • Dealers and importers
  • Entrepreneurs that export products and goods.
  • Companies where these goods are purchased

Sometimes the participants in the chain may coincide, for example, the goods manufacturer may also be the exporter at the same time. In some cases, during an international carriage, some actions and operations can only be performed by authorized dealers. Any international logistics company is aimed at business expansion in the market. It means that properly organized logistics will help reduce costs, and therefore make products and goods more competitive. As a result, entrepreneurs will be interested in further cooperation.

International logistics companies also employ subject matter experts: those involved in foreign economic activity, organizing logistics flows directly, there are lawyers, forwarders, translators, coordinators, and so on.

Modern international logistics

This area has developed rapidly nearly since 1970s. And before that, the necessity of cooperation in terms of doing business was obvious, but the infrastructure did not allow establishing a full-fledged communication between different countries. Only in the second half of the last century there was a significant improvement in the quality of roads, railway stations, ports. Aircraft has also become more actively involved in cargo transportation. Therefore, such concept as modern international logistics appeared which allows to streamline business processes. 

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So, we can take China as an example. It is in this country of the South Asian region that in recent decades not only improvement became evident but also a huge leap in infrastructure development.

Many companies and entrepreneurs should embrace the Chinese experience. In many ways, modern international logistics takes into account the experience of Asian and European countries. For example, if you take the same road section 1000 km long, then in China or Europe, an ordinary truck will be able to overcome this section in about 60 hours. If we compare this distance with the distance between Calcutta and Delhi in India, then a vehicle will cover it in 130 hours. Although India also strives to establish itself as a participant in international trade, the difference in approach to business is obvious.

In modern international logistics, many factors are taken into account, including the loyalty of the authorities to the cooperation organization and trade development. The loyalty of the authorities in different countries varies even within the European Union with its identical standards and requirements. It is difficult to obtain such a volume of information and knowledge by studying in a specialized educational institution, having mastered the theory. Such knowledge is gained mainly through practice. That is why experienced logistics professionals are so valued.

The features of international logistics

Due to changes in the cooperation forms, standards in different areas are changing as well. There are some features of international logistics; some of them can be clearly demonstrated with the table:

Convergence of logistics and marketingThe specification of sales and subsequent after-sales service is becoming the key factor in gaining the attention of potential customers. The convergence of logistics and marketing will continue in the future
International cooperation means considering a balanceCosts will be higher compared to domestic trade, and the task of experts will be to find a balance between cost minimization and getting a profit from international trade.

Yes, there will always be a necessity to take into account a large number of factors compared to doing business within only one country or even one region. The features of international logistics also involve providing cargo security when crossing the border and when moving through the territory of several states. The necessity of temperature control as well as many others during the journey is also considered, because the transportation of a certain category of goods will be impossible without such controls. 

  • Among the features of international logistics, the following factors should be noted:
  • Outsourcing will play an increasing role.
  • Modern technologies and automated control systems will be intensively implemented.
  • Logistics, representing the service sector is also believed to develop intensively.

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It is impossible not to mention the impact of two opposite factors. International logistics, which rules are quite changeable in accordance with the changing environment, also has long-term trends. So, there is no doubt that in the future regulations and requirements for compliance with sanitary and hygienic, fire safety, environmental standards will be made even stricter. But on the other hand, there is an opposite feature, aimed at cutting red tape in the interaction of exporters and importers located in different countries.

Experts are aware of the situation as a whole and the details, which implies international logistics: details, features, jurisprudence, cost reduction aspects. Many contracts are drafted, including those with a focus on transnationality. Much attention is paid to their cargo insurance, tracking the transport along the route using satellite navigation systems.

Among the features and details of international logistics, which have been so clearly manifested in recent years, it should not go without mention a systematic increase in customs duties, the emergence of new charges and an increase in the amount of fines for violation of certain provisions. Of course, all of this will eventually result in a price rising for the final customer. In some countries, it has been debated a lot about levying additional taxes, for example, the so-called “environmental tax”, “carbon tax” and so on.

Compliance with legal regulations in international logistics

In many ways, it also comes out on top. Numerous transport documents must be available, which will be checked for their compliance with the peculiarity of the goods. You also have to remember about quotas, certification and licenses, restrictions on import of certain consignments of goods, depending on legal regulation. And it is the international logistics company that is responsible for compliance with legal formalities and considering precedents. Responsibilities:

  • Working out of an optimal route to minimize the number of customs points and reduce costs.
  • Selection of reliable partner companies.
  • Taking into account the features of each transshipment customs point along the entire route.
  • Responsibility for the storage of goods.

International logistics companies employ auditors and freight forwarders who understand the functioning of the entire business chain. Moreover, you need to be able to make real time prompt, reasoned decisions in the case of emergencies.

Business development by means of modern international logistics

Despite the numerous features, details, difficulties and stricter requirements due to globalization, companies simply have no choice. The task of international logistics is exactly to optimize time, costs, risks, and to organize control. Liability insurance as well as making formal agreements is a must. Other implementations help a lot:

Электронная логистикаMakes it possible to process numerous online transactions
Online controlCuts down material losses, reduces wasted time and allows you to provide the client with full reporting at any time.

Thus, all the responsibilities of experts involved in international logistics can be modeled down to the concepts:

  • Planning with taking realias into account 
  • Risks management and cost reduction.
  • Flow control.
  • Control over everything that happens with the ability to provide the customer with a complete report.

The tasks of professionals include: the choice of transportation and the means of transport, the search for a provider, the development of technological unity so that all warehouse and transport processes are brought together. In addition, the terms and conditions of insurance are worked out and reputable assurer is chosen.

Taking globalization into account in the construction of international logistics

National economies, which have no interaction with the economies of other countries, are bound to failure. Practice shows that even a difficult international situation in the form of large-scale man-made disasters, natural disasters or pandemics is not capable to cripple international relations. It means that logistics will continue to develop. This also includes supply, production, transport, marketing and warehouse logistics. The latter is also subdivided according to other criteria, for example, pharmaceutical, agricultural. It is also divided according to the specifics of integration, functional coverage and many other features.

Recently, the charity trend has also become more popular. In many transnational corporations, this has even turned a good courtesy and an unspoken prerequisite that forms an attitude of the entire world community to a particular brand. Therefore, it has already become commonplace, for example, to dispatch relief consignments from European countries to other continents. It means that in this case, you will have to deal with international logistics, details and features.

Increasing requirements for the logistics experts

Globalization raises the requirements to the professionals themselves. Despite the fact that it is possible to get a university degree in almost all countries of the world, there is still a shortage of truly qualified personnel. Therefore, the salaries of professionals employed in the field of international logistics are traditionally high. But the requirements are also increasing. They must know the features, details, take into account precedents, law enforcement practice, often they have to be fluent in at least one of the international languages. As a rule, English is considered the language of international communication; knowledge of Chinese and Arabic will also be an advantage.

Modern logisticians also have to master information technology, which will streamline the workflow, increase automation in the activities of other employees and improve the impact of the implementation of modern technological solutions. As you can see, there are many peculiarities and nuances in international logistics.

Людмила Логистик УКР

Эксперт в сфере транспорта и логистических процессов НАН Украины. Участница экспертной рады при министерстве транспорта и инфраструктуры

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