Strategic Management International Logistics

Question: Discuss about the Strategic Managementfor International Logistics. Answer: Introduction The aim of this paper is to prepare report on the journey of Amazon in becoming a partner in International Logistics. Amazon is one of the largest online retailers in the world headquartered in the US (Amazon.in, 2017). Amazon is globally widespread and the existing operational efficiencies, supplier services and technological capabilities ensure faster delivery of its products at minimal cost. Amazon uses the latest technology to simplify its logistic and delivery experience (Fernie Sparks, 2015). Background Supply chain plays a vital role as it optimizes both speed and efficiency. This paper attempts to determine the role of logistics operator in which the trucks or rail pick up freight to travel across the land (Amazon.in, 2017). The factors such as shorter product lifecycle, continuous technical advancement and other factors contribute to development of logistics. The logistics and supply chain management has evolved significantly and there is a need of high coordination among the various functions of the organization (Drake, 2012). The main factors determining the choice of incoterms are necessary as the speed, cost, reliability, convenience, distance and others are important. The export sales contract must have essential elements as it is used for international sale of certain products. Building a successful 3PL or Third-Party Logistics Provider is necessary as it will ensure continuous improvements are made to the logistics process (Fernie Sparks, 2015). Discussion To become a partner in International Logistics, the supply chain must be essentially defined. As seen in the case of Amazon, they have focused on the logistics of distribution from the very beginning. It has taken years and significant investment to reduce the delivery time of its products. Amazon has taken sufficient time to become a global logistics operator (Amazon.in, 2017). They maximize efficient using technological capabilities, operational efficiencies and supplier services to optimize logistics on a global scale. Amazon follows a push-pull strategy where the inventory is held in a push strategy and shipment of orders is done in a pull strategy. The customer segments are divided and price differentiation strategy is followed. If the customers wish to avail faster delivery, they have the option of paying more to reduce lead time (Bowersox, 2013). Amazon has transformed from a small online bookseller to one of the top online retailers in the global market. Amazon is not just a retailer and distributor, but it also deals in manufacturing products to sell products at a lesser price than the competitors. Amazon assumes that the growth in cross-border e-Commerce volumes shall boost the Amazon logistics (Amazon.in, 2017). Amazon automates the processes of shipping paperwork that further reduces cost and increases convenience (Fernie Sparks, 2015). The delivery system offers faster mode of transport for perishable goods. The system is punctual and highly reliable (Drake, 2012). Summary and Conclusion As Amazon is increasing its global footprint, the last mile delivery to the customers is sorted out. The IT system can be unified so that there is greater visibility in the supply chain with better accountability. References Amazon.in,. (2017).Amazon.in: Corporate information.Amazon.in. Retrieved 12 April 2017, from https://www.amazon.in/b/ref=footer_gw_m_b_corporate?ie=UTF8node=1592138031 Bhattacharjya, J., Ellison, A., Tripathi, S. (2016). An exploration of logistics-related customer service provision on Twitter.International Journal Of Physical Distribution Logistics Management,46(6/7), 659-680. https://dx.doi.org/10.1108/ijpdlm-01-2015-0007 Bowersox, D. (2013).Supply chain logistics management(1st ed.). New York: McGraw-Hill. Drake, M. (2012).Global supply chain management(1st ed.). New York: Business Expert Press. Fernie, J., Sparks, L. (2015).Logistics and retail management(1st ed.). Johanneshov: MTM