WHAT ARE THE ADVANTAGES OF REDUCING LOGISTICS AND

TRANSPORTATION COSTS IN THE INTERNATIONAL PHYSICAL

DISTRIBUTION AND THE DISADVANTAGES OF THE HIGH COSTS IN IT?

INTRODUCTION

we must bear in mind that logistics and international physical distribution are key in
foreign trade operations, given that logistics is key to achieving maximum efficiency
and effectiveness, which can be summarized as follows: Efficiency because less
time remains product In each of the stages of a logistics chain, the lowest costs will
be added to the final value of the product and the market will be supplied more
quickly and effectively, because in most cases, the lower costs can be translated in
greater operational profits. For this reason, there are two factors that determine the
operation and that we must analyze: time and costs, therefore, the time factor
should be considered as a determining factor in cost reduction

For any company that wants to export, one of the options that must be controlled
are those of international transportation and distribution in the destination market,
since these factors must be handled correctly by the companies so that the product
arrives at the appropriate times and forms a what is established fully.

For all entrepreneurs, distribution is a cost problem that must be faced, these costs
are normally high, which generates an additional cost in the product that the
consumer ultimately pays. Therefore, it is understandable that in a product different
actors can intervene from the production chain to the distribution chain. That is,
any failure in one of the stages of a product can suspend the distribution system
that affects international business.

That is why there is an international physical distribution, which is the logistic

process that takes place in the export of products and that, as a main objective, is
to reduce costs, times and risks to the maximum from the starting point in the origin
to the point of delivery to the final destination.

For a company to grow and seek better opportunities in the market, it must
consider the investments of time, effort and capital, therefore, the correct logistics
carried out is possible to reduce the costs of the products for the benefit of
customers. 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 transport, if the correct efforts are made that
will finally be reflected in the Reduction of costs.

This is why the advantages of reducing logistics costs can trigger the company to
be forced to increase its productivity, since it must be oriented more and more to
improve in a competitive way, this also applies to the improvement of the
administration of the company of the company, therefore, just as in the possibility
of expanding markets by accessing products that without the correct export, are
unattainable and end up in one of the best assets of companies: the increase of
their customers

This is why the advantages of reducing logistics costs can trigger the company to
be forced to increase its productivity, since it must be oriented more and more to
improve in a competitive way, this also applies to the improvement of the
administration of the company of the company, therefore, just as in the possibility
of expanding markets by accessing products that without the correct export, are
unattainable and end up in one of the best assets of companies: the increase of
their customers.

On the other hand, if you do not have control over the costs, you may incur high
operational risks, which entails political and economic risks for the company, as
well as "whiplash effects" that may interrupt the actual demand, and finally the
greatest danger that The organization's failure to protect itself from excessive costs
is that it has zero margin of error or reduced inventories to meet market needs.

CONCLUSION

The international physical distribution should be characterized by the ability of

companies to generate support to internationalize from their production or market,
always remembering corporate success since it is not measured so easily at
present quantitatively or qualitatively, being a factor of competitiveness to generate
profitability in import operations

Bibliografia

https://repository.unimilitar.edu.co/bitstream/handle/10654/11620/Ensayo%20final.pdf;jsessioni
d=26B329B08BC274EC188E2B985C4807BA?sequence=2

http://www.catalogodelogistica.com/Colombia/1.aspx

http://www.proexport.com.co