Final Paper APUS

6

Global Logistics

Johnathan Murry

APUS

November 4, 2021

Introduction

Goods are typically produced from one region and transported to another region, where the consumers demand them. This is what is referred to as global logistics. It involves managing the flow of goods when they get transferred from the production region, which could be one part of the world, to the other where they are consumed. In essence, global logistics tends to connect vital components of the supply chain from the origin point of the products to the point where they are consumed by the consumers while ensuring time and efficient distribution is achieved throughout the supply chain process. The movement of goods is the primary aspect of global logistics, and it can be accomplished through several ways, including shipping, plane, truck, or train. The paper will analyze literature to show various authors' different perspectives regarding global logistics and its insights.

Literature Review

Hong and Vonderembse published the first article to review in 2011. The article is titled "Global logistics strategies and experiences: the case of Korea Express." The authors emphasize the impact that the rapid expansion of global trade is having on supply chain management. Based on the article, as the rate of expansion to the global trade increases, the need to have immediate, accurate, and more security to the content of shipment or logistic activities becomes crucial to the worldwide supply chain. The demand for modern ports, railway systems, and airlines have significantly increased over time, as shown by another article by Wong and Davison. The authors stipulate the importance of advancing ports to accommodate the international supply chain activities or logistics. Following the growth of globalization, countries must expand their ports since ports tend to act as the significant center of logistics activities in any economy. Moreover, Yang and Chen, 2016, talks about the major determinants of global logistics hub ports where they compare the port development strategy of three countries, including Japan, Taiwan, and Korea.

The scope and scale of global logistics systems often lead to real-time visibility to the challenges that tend to incur the individual assets along the process way. According to Sellevold et al., 2020, many organizations' decision-makers and logistics managers typically aggregate global logistics data to a manageable level to anticipate and evaluate possible interruptions and disruptions that face the process of logistics operations. Global logistics has helped the movement of goods from one region to the other to be easy and faster. Based on the new studies by Mangan and Lalwani, 2016, it is possible for corporations to reach far consumers around the world within a minimal frame of time with their products. Many companies are becoming multinational organizations due to the growth assistance and support of global logistics. Frazelle, 2020 talks about the vital role played by global logistics in global supply chain management. Based on his article, global logistics operations act as a bridge between the supplies of goods from the producer to the consumer who might be on the other side of the globe. Global logistics and management is the key driver to international trade development, as shown by an article published by Branch and Alan, 2018. It enables the primary objective of the global supply chain that involves linking the marketplace, manufacturing, and distribution network and procurement activity.

Digital Equipment Corporation has played a crucial role in global logistics. Based on Arntzen et al., 2015, Digital Equipment Corporation evaluates alternatives related to the worldwide supply chain and determines a global strategy for effective manufacturing and distribution through GSCM. The term global logistics is a topic that has continued to gain interest in many multinational organizations around the globe. According to Waters et al., 2013, logistics was a subject many organizations did not consider mentioning in the long-term plans. In the contemporary world of globalization, many companies are using global logistics in the long term plan of going global with their products.

Nevertheless, the advancement of global logistics benefits supply chain management and comes with some significant challenges. This is a concept that Rondinelli and Berry attempt to bring to the table. They suggest that the continued integration of transportation and logistics systems has introduced significant complexities to the physical environment, including land, water, and air resources. Moreover, it is essential to consider several aspects for an effective international supply chain process in dealing with globalization. Some of the elements listed in the article by Huang et al., 2013, include integration, communication, global perspective analysis, the performance of financial analysis, maintenance of a promising industry and customer relations, exhibition of strong personnel skills, and the understanding of laws and regulations surrounding the international supply chain process.

In a discussion about the formulation and implementation of a global logistics strategy, Robert, 2009, shows how ICL, which is an owned subsidiary of the four billion dollars, was developed by being a Mainframe Computer organization to become a full-range supplier of information systems meant for departmental office, corporations and single-user markets. Furthermore, numerous changes have been implemented over the past decades, especially in the US and European logistics, concerning the skills and knowledge that a logistics manager should have before being recruited in the field. This is a statement that Post et al., 2011, discuss whereby they report and analyze a questionnaire administered to the preference skills and background in the logistics management field for both the United States and European supply chain process. Also, Farahani, Asgari, and Davarzani, 2019 introduce the term global logistics by defining it as an integral part of everyday human life regarding the economy. They claim that logistics has an essential role in effectively implementing the international supply chain process, which different countries depend on in the contemporary world of trade.

On the other hand, McKinnon, 2017 talks about the relationship between integrated logistics strategies and supply chain management. Integrated global logistics on its self, as he claims, is a vital strategy that enables corporations to ensure their international supply chains are flexible for changes that may incur the process. Finally, Hernandez, 2020 analyzes how global logistics operations have enhanced the environment in which corporations and small businesses operate in the contemporary world of business through globalization. Regardless of their sizes, both big and small businesses can efficiently market and sell their products and services to all parts of the world through open markets.

Goods are typically produced from one region and transported to another region, where the consumers demand them. This is what is referred to as global logistics. It involves managing the flow of goods when they get transferred from the production region, which could be one part of the world, to the other where they are consumed. In essence, global logistics tends to connect vital components of the supply chain from the origin point of the products to the point where they are consumed by the consumers while ensuring time and efficient distribution is achieved throughout the supply chain process. The movement of goods is the primary aspect of global logistics, and it can be accomplished through several ways, including shipping, plane, truck, or train. The paper will analyze literature to show various authors' different perspectives regarding global logistics and its insights.

Conclusion

               In conclusion, global logistics plays a crucial role in connecting vital components of the supply chain from the origin point of product production to the endpoint of product consumption. In particular, globalization has enabled open markets to have free trade where the demand for products is highly increasing. With such an increase, global logistics management has enhanced the process of the supply chain by making it to be efficient and safer for trade transactions. Due to the rapid expansion of international trade, the need to have immediate, accurate, and more security to the content of shipment or logistic activities becomes crucial to the global supply chain. This is the primary role of global logistics management and where it plays in the supply chain process.

References

Arntzen, B. C., Brown, G. G., Harrison, T. P., & Trafton, L. L. (1995). Global supply chain management at Digital Equipment Corporation. Interfaces, 25(1), 69-93.

Branch, A. E. (2018). Global supply chain management and international logistics. Routledge.

Farahani, R. Z., Asgari, N., & Davarzani, H. (Eds.). (2009). Supply chain and logistics in national, international and governmental environment: concepts and models. Springer Science & Business Media.

Hong, P., & Vonderembse, M. (2011). Global logistics strategies and experiences: the case of Korea Express. International Journal of Logistics Systems and Management, 9(2), 141-149.

Mangan, J., & Lalwani, C. (2016). Global logistics and supply chain management. John Wiley & Sons.

McKinnon, A. (2017). Integrated logistics strategies. In Handbook of logistics and supply-chain management. Emerald Group Publishing Limited.

Roberts, J. H. (2009). Formulation and Implementing a Global Logistics Strategy. The International Journal of Logistics Management, 1(2), 53-58.

Poist, R. F., Scheraga, C. A., & Semeijn, J. (2001). Preparation of logistics managers for the contemporary environment of the European Union. International Journal of Physical Distribution & Logistics Management.

Rondinelli, D., & Berry, M. (2000). Multimodal transportation, logistics, and the environment: managing interactions in a global economy. European Management Journal, 18(4), 398-410.

Sellevold, E., May, T., Gangi, S., Kulakowski, J., McDonnell, I., Hill, D., & Grabowski, M. (2020). Asset tracking, condition visibility and sustainability using unmanned aerial systems in global logistics. Transportation Research Interdisciplinary Perspectives, 8, 100234.

Waters, C. D. J., & Waters, D. (Eds.). (2013). Global logistics and distribution planning: strategies for management. Kogan Page Publishers.

Wong, L. H., & Davison, R. M. (2018). Knowledge sharing in a global logistics provider: An action research project. Information & Management, 55(5), 547-557.

Wu, Y. C. J., Huang, S. K., Goh, M., & Hsieh, Y. J. (2013). Global logistics management curriculum: perspective from practitioners in Taiwan. Supply Chain Management: An International Journal.

Yang, Y. C., & Chen, S. L. (2016). Determinants of global logistics hub ports: Comparison of the port development policies of Taiwan, Korea, and Japan. Transport Policy, 45, 179-189.