Advantages and Disadvantages of Costs in International Physical Distribution

For any company that wants to export one of the choices that must be controlled are those of
international transport and distribution in the destination market, these factors must be handled
correctly by the company so that the product arrives inappropriate times and forms the final
consumers.

For every entrepreneur, distribution is a cost issue that must be faced, these costs are
normally high, generating an extra cost in the product that the consumer ultimately pays. It is
therefore understandable that in a product different actors can intervene from their productive
chain to the distribution chain. That is, any failure in
of the stages of a product can suspend the distribution system affecting international business. It
is for this purpose that the international physical distribution exists, being the logistic process that
is carried out in the export of products and that as main objective is to reduce costs, times and
risks to the maximum from the point of departure at the origin to the Delivery point to the final
destination. In order for a company to expand and look for better opportunities in the market, it
must consider the investments of time, effort and capital, therefore the correct logistics that it
carries out is possible to reduce the costs of the products for the benefit of the consumers and
the costs. Of production for the benefit of the company. The impact of the logistics department
within the companies is visible in
the degree of customer satisfaction, as well as in the fluidity of the internal processes of tracking,
production and transportation, if the correct efforts are being made that will ultimately be seen
releases in the reduction of costs. That is why the advantages of reducing logistics costs can trigger
in Which the company is forced to increase its productivity since it must be directed more
andmore to improve competitively, this also applies to the improvement of the company Is
management of the company, thus same redounds in the possibility of expanding markets by
accessing products and markets that whit ‘out the corrected
port are unattainable ending in one of the best assets of companies: the increase of their
customers in the other tend, if you do not have control other the costs, you can incur thigh
operational risks, which leads to economic and political risks for the company, as well as wipe
effects that can disrupt the real demand, and finally The greatest danger that the organization has
in not protecting itself from cost overruns is that it has zero margin of error or reduced inventories
to supply market needs. As a conclusion, this is why strategies and international physical
distribution should be characterized by creating the capacity in companies to generate support to
internationalize from their production or from their market, always remembering that corporate
success because it is no longer measured so easily at present in the
suantitative and qualitative, being a factor of competitiveness to generate profitability in import
operations.