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1.TheDefinitionofLogisticsAftercompletingacommercialtransaction,logisticswillexecutethetransferofgoodsfromthesupplier(seller)tothecustomer(buyer)inthemostcost-effectivemanner.Thisisthedefinitionoflogistics.Duringthetransferprocess,hardwaresuchaslogisticsfacilitiesandequipment(logisticscarriers)areneeded,aswellasinformationcontrolandstandardization.Inaddition,supportsfromthegovernmentandlogisticsassociationshouldbeinplace.Threemajorfunctionsoflogistics(1)Creatingtimevalue:samegoodscanbevalueddifferentatdifferenttimes.Goodsoftenstopduringthetransferprocess,whichisprofessionallycalledthestorageoflogistics.Itcreatesthetimevalueforgoods.(2)Creatinglocationvalue:samegoodscanbevalueddifferentlyatdifferentlocations.Thevalueaddedduringthetransferprocessisthelocationvalueoflogistics.(3)Distributionprocessingvalue:sometimeslogisticscreatedistributionprocessingvalue,whichchangesthelength,thicknessandpackagesofthegoods.Likepopularsaying,“cuttingintosmallerparts”isthemostcommonlyseendistributionprocessingwithinlogisticscreateaddedvalueforgoods.2.Logisticsisanewcommercialarea,developingfromthetraditionalstagetoamodernone.Themaindifferencesbetweenthesetwostageinclude:(1)Modernlogisticsadoptscontainerizationtechniques.Thegoodstransferprocessstartswithpackaging,followedbytransportation,storageanddistribution.Thewholeprocessisoperatedunderlogisticsstandards.Basedonthelogisticsbasemoduleof600×400mm,fromthelogisticsmoduleof1,200×1,000mm,andenlargetothesizeof2,591×2,438mm-thesizeofhigh×wideofthecontainer.Itcanbeadjustedtothestandardsizesofcontainersfortrains,trucksandships.(2)Informationtechnologiesaremostimportantformodernlogistics.BarCode,POS,EDIandGPSsystemsdramaticallyimprovetheefficiencyandaccuracyofthelogisticsactivities.Internetfurtherassiststhemarketdevelopment,operationandmanagementofthelogisticsindustry.3.InternationalLogisticsAnincreasingnumberofcompaniesareinvolvingininternationalmarketsthroughexporting,licensing,joinsventures,andownership.Thistrendshouldcontinue.Withsuchexpansionthereisaneedtodevelopworldwidelogisticsnetworks.Integratedlogisticsmanagementandcostanalysiswillbemorecomplexanddifficulttomanage.Therearesomefuturetrendsininternationalization:(1)Morelogisticsexecutiveswithinternationalresponsibilities(2)Expansionofthenumberandsizeofforeigntradezones.(3)Reductionintheamountofinternationalpaperworkanddocumentation(4)Moreforeignwarehousingisownedandcontrolledbytheexportingfirm(5)Increasingnumberofsmallerfirm(6)Foreignownershipoflogisticsservicefirms,e.g.,publicwarehousingandtransportationcarriers.(7)IncreasingmultipledistributionchannelsTheinternationaltransportandtheinternationallogisticsaresamethingsinsomeway.So,whentheinternationaltradinginvolved,thefirmmustestablishinternationallogisticssystemstoprovidetheproductsandservicedemanded.Themostsignificantdevelopmentininternationallogisticswillbetheincreasingsophisticationinformationsystemadoptedandindependentdepartmentstooperate.4.Packaging.Packagingperformstwobasicfunctions–marketingandlogistics.Inmarketingthepackagingactspromotionandadvertising.Itssize,weight,color,andprintedinformationattractcustomersandconveyknowledgeoftheproduct.Whenfirmsareinvolvedininternationalmarketing,packagingbecomesevenmoreimportant.Productssoldtoforeigncountriestravelgreaterdistancesandundergomorehandlingoperations.Thelogisticspackageistoprotecttheproductsduringtheprocessoflogistics.Scrapdisposal.Thelogisticsprocessmusteffectivelyandquicklyhandle,transport,andstorewasteproducts.Iftheycanbereusedorrecycled,logisticscompanyshouldarrangeandmovethemtothere–productionandre–processinglocations.Returngoodshandling.Thehandlingofreturngoodsisoftencalledreversedistribution.Buyersmayreturnitemstothesellerforanumberofreasons.Mostlogisticssystemsarenotgoodenoughtohandlesuchcases.Inmanyindustries,consumersreturnproductsforwarrantyrepair,replacement,orrecycling,reversedistributioncostsmaybeveryhigh.Reversedistributionwillbecomemoreimportantascustomersdemandmoreflexibleandfavorablereturnpolicies.5.ThirdPartLogistics(TPL)ThirdPartLogisticsprovidesallthelogisticsservices.Theyactasabridgeorfacilitatorbetweenthefirstpart(supplierorproducer)andthesecondpart(buyerorcustomer).Theprimaryobjectivesofthirdpartlogisticsprovidersaretolowerthetotalcostoflogisticsforthesupplierandimprovetheserviceleveltothecustomer.ThirdPartLogisticshavebeengrowingrapidly.Costreductionanddemandsforbatterandcheaperservicesarethemaindrivesbehindthegrowth.Athirdpartlogisticsproviderwillbeinapositiontoconsolidatebusinessfromseveralcompaniesandofferfrequentpick–upsanddeliveries,whereasin–housetransportationcannot.Otherreasonsareasfollows:*Thecompanydoesnotspecializeinlogistics;*Thecompanydoesnothavesufficientresources;*Eagertoimplementbetterlogisticsoperationordoesnothavetimetodeveloptherequiredcapabilitiesin–house;*Thecompanyisventuringintoanewbusinesswithtotallydifferentlogisticsrequirements;*Mergeroracquisitionmaymakeoutsourcinglogisticsoperationsmoreattractivethantointegratelogisticsoperations.6.GlobalLogisticsDevelopedcountrie