Logistics Management in Ocean Shipping Essay Example | Topics and Well Written Essays - 3250 words

Logistics centering in Ocean Shipping - Essay ExampleThe issues like climate change dominate the prox and result in headlong rush of western economies to offshore manufacturing to lower cost countries in the east. except financial cost of delivering goods across the world has always been a fundamental element of trading and decisions of logician is largely influenced by high environmental costs (www.pmcontent.com)1. Magee et al (19851) mentioned that high quality and high efficiencies prevail become the characteristics of the production and physical distribution operations of many foreign competitors concerned the companies in join States challenging some of their basic tenets. According to Frazelle (200110) global logistics is the flow of material, information and money between countries connecting suppliers supplier with customers customer inter guinea pigly. Global logistics flows have increased dramatically during the last several years due to globalisation in the world ec onomy expanding use o trading blocs and global access to Web sites for buy and selling merchandise. It is much more complex than domestic logistics due to multiplicity of handoffs, players, languages, documents, currencies, times zones and cultures that are innate to international blood. According to Singh et al (19981) logistics watchfulness is unique and represents and paradox as it is concerned with one of the oldest and newest activities of business and government. It is further stated that logistics system consists of facility location, forecasting and order management, transportation, inventory, warehousing and packaging which were all organism practiced since the start of commercial and industrial activity. Brewer et al (200112) states that logistic systems utilize a all-embracing range of resources and services within and external to individual companies which is likely to happen because of wide range of functions that logistics cover up in procurement and distribution . It is further stated that achieving high level of performance in logistics is important for the positivity of companies and for the efficiency of national economies as well as global economy. The interactive effects of the productivity of national and international logistics increase because international trade increases as a percentage of the national domestic activity. Logistics is that subprogram of supply chain process that plans, implements and controls the effective forward and reverse flow and storage of goods, services associate information between the point of origin and the point of consumption in order to meet the customers requirements. Logistics management is important in relation is issues like transportation costs, large distribution costs, deregulation, changing strategies, technology and globalisation (Kritika and Madhu, 2008)2. Cavanagh et al (2002163) mentions that there has been a massive increase in ocean shipping, highway transport, air weight transport, rail with a tremendous corresponding increase in infrastructural development with export production as a central feature of free trade. Ocean shipping has expanded more than tenfold since fifties mainly because of increased good export activity from economic globalization which accounts for more than 90% of commodity trade shipments with the