Logistics

Logistics is an important aspect of the global supply chain. It involves implementation, planning, controlling, forwarding and the reverse flow and storage of goods (Christopher, 2013). It also includes related information between the points of origin to the point of consumption or destination to meet the customer’s requirements. As businesses and enterprises pursue the goals of globalization, there is the need to get information on the targeted markets. Besides, the organization needs to get information on products shortage and political instability in the countries that participate in trade. Enterprises then use this information to know where particular products are in high demand, the goods and services are then transported to those areas to maximize the profits expected (Christopher, 2013). Logistics encompasses everything from production to transportation, security, markets, clearing, and forwarding. All this makes the global supply chain successful.

Transportation

In a supply chain, transportation is a critical aspect that involves the movement of goods and services from one point to another (Horch, 2009). As businesses and enterprises expand and venture into new markets, the logistics for transportation become complex. Goods are required to move from one country to another by air, sea or water. Transportation ensures that companies achieve their goals of globalization. This is because transportation in any enterprise contributes to about 10% of the incurred costs of a product. The efficient, secure, and effective system of freight transportation is critical to the global economy (Horch, 2009). On the same note, efficient and effective transportation ensures optimization of the global supply chain, the movement of international freight across multiple lanes and modes. Besides, efficient transportation has other advantages that include reducing the cost of other logistics expenses.

Security

With the globalization of businesses and enterprises, their services become more insecure because the operations of the new markets are unpredictable (Thomas & Vaduva, 2014). The interconnected nature of the global market is ideal for business; however, ensuring security in the supply chain is challenging. Movement of goods and services need to be more secured to reach their destinations. Security in the global supply chain in this era has become the most important factor. It is because of issues such as terrorism and drug trafficking that if in any time the issue occurs it affects an aspect of the supply chain mostly the transport sector. Governments or the private sector can provide security, and this will control piracy and terrorism (Thomas & Vaduva, 2014). All the businesses have to bear the cost of security even if it is expensive when it involves the global supply chain because the aspect of security is an international matter that affects all businesses.

References

Christopher, M. (2013). Logistics and Supply Chain Management ePub eBook. Pearson UK.

Horch, N. (2009). Management Control of Global Supply Chains. BoD–Books on Demand.

Thomas, A. R., & Vaduva, S. (Eds.). (2014). Global Supply Chain Security: Emerging Topics in Research, Practice and Policy. Springer.

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