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International Physical Distribution

The International Physical Distribution, known by its acronym DFI, is


the logistic process that develops around placing a product in the
international market in accordance with the terms negotiated between the
seller and the buyer. Its main objective is to reduce to the maximum the
times, costs and risk that may be generated during the journey, from the departure
point at origin to the delivery point at destination.

The process of an export and


import operation consists of a
series
of stages, the companies that
make the decision to buy or
sell products at the
international, they must go
through these stages in order
to successfully insert
themselves in the international
markets. The main aspects to
take into account are:
research, evaluation and
selection of potential markets,
the definition of
market access strategies and the sale or purchase of the chosen product.
Is the last stage involves, in the case of exports, making an offer of
quotation to the potential buyer abroad; in this context, one of the elements
most important in the competitiveness of the globalized world, is the price of
export. This variable must respond to the needs and expectations of the client,
market prices and financial and marketing objectives of the company
exporter.

In the opposite case, costing for imports, it becomes equally necessary every time
that the importer must be clear about how much it costs to bring a merchandise
and establish a sale price for the domestic market that compete fairly with the
product national level, and / or allowing it to incorporate the imported good into its
production in order to lower costs, be more competitive and ensure the quality that
the consumer more and more Demanding, claims. In consequence; one of the first
actions that the Colombian businessman, is to define an adequate methodology
for the calculation of costs and the setting of their export and import prices.
Cost associated with the export
process
One of the most frequent questions that the exporting entrepreneur asks himself is:

Which is the price of my export product in the place that my buyer requires
international?

To answer this question, apparently simple, it is necessary analyze carefully the


events (costs and times) through which theproduct, until the place indicated by the
buyer, phase of the logistics that is known as International Physical Distribution
(DFI). Starting from the Terms of Negotiation International, INCOTERMS 2010,
and taking into account the value of the product in the factory, It is time to state
each of the costs that are part of an export. to. Costs in the country of origin or
exporter: They are all those costs to pay from the seller's factory to the port, airport
or site agreed to the delivery of the merchandise, within the territory of the country
of origin or country exporter. Example: packaging, packaging, documentation,
unitarization, local manipulation of the exporter, insurance, transportation, storage,
handling in the Place of shipment, customs documentation, bank charges and
agents.

International transit costs: These are the costs to be paid from the port,
airport or site agreed for the delivery of the merchandise in the country of origin
until the port, airport or agreed place of reception of the merchandise in the
destination country. Example: handling when boarding, insurance, transportation,
storage, unloading and agents handling.

Costs in the country of destination or importer: Are those to be paid from the
port, airport or site agreed for the receipt of the goods in the territory of the
importing country, up to the buyer's factory.
Example: handling at the place of disembarkation, storage, insurance, transport,
handling at the importer's premises, des unitarization, documentation
Customs, bank charges and agents.