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International Logistics Cost Model and Its Optimization Countermeasures
ZHOU Dao-ping,LI Gang
2009, 9(1):
139-144 .
With the integration of global economic development, international logistics has witnessed rapid growth, Since China’s accession into WTO, more and more Chinese firms have stepped into the global market. However, compared with domestic logistics business in China, the international logistics is more complicated: long period, high cost and hard to control. In recent years, due to many reasons in various areas, such as, differences in culture, language, and even in currency in time Chinese firms are suffering from high international logistics cost even huge losses. Based on years of experiences in the international market, from a point of view of Chinese enterprises going global, this paper sets up the cost model of international logistics and puts forward some new cost optimization solutions and countermeasures. The solutions involve, dividing sales contracts into parts of equipment and services, splitting equipment contract into hardware and software, adopting customers clearance agent, leasing bonded area warehouse, utilizing free port as transfer location, setting up local manufacturing services companies in import country and using financial tools to avoid exchange rating losses etc. Based on the case study of a Chinese international business in Brazil, the effects of cost optimization are illustrated.
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