What is global logistics? In order to compete in a globalized, international economy, you will have to have a good understanding of how the global logistics situation impacts your business. You will also need to develop custom global logistics that will allow you to expand your firm and its operations internationally without taking on either untenable consulting fees or operational deficits. Custom global logistics consultants should always be able to justify their price by demonstrating the amount that you save from every initiative they undertake while they are within your employ. Cost savings should add up to significant fractions of each transaction.
As you probably already know well, logistics encompasses the entire series of diverse operations involved in getting your product (or, in the less frequently used sense, your service) to your end consumer. Global logistics management requires the development of global logistics solutions that are much more complex than what you would encounter while working on a national or even on a regional basis. When you consider logistics of a global scope, you are dealing not only with the obvious challenges that are part of every logistics operation, but also with the following:
- A wider network of suppliers and vendors who might operate according to unfamiliar laws.
- Issues such as customs and related fees which can create a drag on your global business;
- More complex insurance regimes that can make it difficult for you to collect on your claims.
- Different expectations from your consumers in terms of the level of logistics quality needed.
- Different norms and standards of quality assurance, communication, and so on from vendors.
Since global logistics management has to take all of these factors into account, powerful global logistics solutions are more sophisticated than local solutions. To secure global logistics that will work for you, you will often have to deploy larger systems that demand a higher level of savvy from every member of your organization, including all of your shipping managers. Plus, you must take extra steps to ensure that you have secure global logistics that will not fall prey to the kinds of exceptions caused by issues such as loss, theft, and other problems that are not typically part of the market landscape in the United States, but may be a factor in some other areas.
When making the transition from a regional to a worldwide logistics model, one of the most important factors is to unite global operations using the right kind of technology. Without true data visualization that includes features such as package routing, carrier shopping and logistics handling, it is virtually impossible to initiate a new global scope of operations without losing significant funds per transaction. That being the case, it is a good idea to not only institute the right technology and the change controls to go along with it, but to seek the expertise of an enterprise with a global scope that can imbue your team with best practices from the start.