Factors affecting logistics in international borders
Companies working across international borders have many things to take into account before embarking on such a move. Some of the factors affecting logistics across international borders include financial matters like exchange rates that play a key role in logistics. These include factors like suppliers, transport means and in other cases inventories that directly influence variables in logistics.
Culture is also an important factor to take into consideration if any business hopes to make it in international business. Different countries have different cultures and one gesture from one person may be gross to the locals. It is therefore, important to pay attention and be sensitive to different cultures in international fields. One may be having the best of intentions, but his or her gesture may have negative implications in the culture they are working. It is vital for one to understand cultural differences as logicians may make grave mistakes that could lead to local resistance that will prove costly to the organization doing business globally. Local practices differ greatly from those of global enterprises. Language is also an important aspect that one needs to take into account if they hope to get along with the locals and navigate through the international borders. One cannot rely on translators to aid them as they go through their daily roles (Wood, 2002).
Distance is another critical factor to take into account as one goes across international borders to do business. In logistics, distance plays a key role as moving products across different borders makes it difficult to deal with various issues across borders. This is evident in the difference between inflation and political risks that differ from one country to the other. Politics play a key role in shaping the business environment with some political actions making business and logistics management risky while others make it conducive to do businesses in their territory. It is also important to understand that working styles differ in different parts of the world. People chemistry plays a key role in international business. Understanding the locals and how they do their business is a key feature for a successful logistics profession. This means that one needs to understand their values, how they do business and what makes them thrive in the local market. Keeping an open mind and having the will to listen to advice from the local logistic professional may go a long way in helping one go through the challenges of operating in a new environment.
Regulations affecting logistics management
Regulatory and operational factors affect logistics management in the United States and it is important to understand how each of this work. In the United States, there are many regulations put in place that affect logistics management. Some of these include hazardous materials and different bodies like FMCSA regulate how they are transporters to different parts. It is important for organization to follow the safety regulations on how to transport hazardous materials across the country. Environmental regulations that seek to protect the environment and ensure safety of citizens also play a key role and affect the operations of logistics management. Any organization aiming to succeed in the market needs to manufacture environmentally friendly goods that are safe for human consumption as well as the environment.
Regulatory bodies like the Environmental Protection Agency. The issue of corporate social responsibility also goes a long way in affecting the operations of an organization’s logistics management. It is the duty of any organization to pay attention and give back to the society the base their operation on. It is therefore, upon them to operate in such a manner that benefits the local community and the organization. The issue of labor also plays a critical role in the operations of logistics management. Bodies like Fair Labor Association that aims at protecting workers at every cost. Workers are key to the success of any organization and they affect the operation of logistics. Such bodies regulate how organization operates and how production goes on. It is therefore, vital for organization to follow these regulations as they affect their operations. Different jurisdictions determine how different operations happen and logistics management needs to ensure that they stick to these regulations for them to operate successfully (Wood, 2002).
Factors affecting reverse logistics
Many factors drive reverse logistics systems including economic factors, legislation, corporate citizenship and environmental issues like green issues. Economic factors play a key role in reverse logistics as it relates to recovery options where companies derive direct and indirect benefits. Cost saving is an ultimate goal for many organization during the production process meaning that working well on reverse logistics will guarantee that a firm makes good money. Recovering products for remanufacturing and reconfiguration and in other cases recycling ensures that an organization maximizes its profits. It serves as an investment recovery where an organization builds on this factor over waste management. By focusing on reverse logistics, organization gain economical advantage in inputs, cost reduction and value added recoveries (Nikolaidis, 2013).
Legislation also plays a key role in reverse logistics as jurisdiction may force organization to accept back products at the end of its life or recover them. Legislation affects how organization does their reverse logistics as they may regulate no how the process goes on. It is common to find that there are procedures for collection and how these products are put into use after recovery. Shift of waste management costs to producers and the volume of wastes that can be put back into use at the end of its lie cycle. Others include restrictions by jurisdictions on the use of hazardous substances as companies produce different products. This means that organization have to comply with legislation as they go about their reverse logistics.
Corporate citizenship contains values and set of principles that force organizations to be responsible for their activities in regards to reverse logistics. The ways an organization perform its reverse logistics play a key role in shaping its corporate image. Developing programs that will ensure the public benefits from the reverse logistic actions may go a long way in building good corporate image for an organization. Some of the things an organization can do is to create a program that ensures all products go back to its plants for recycling or donation of the products to the needy. By contributing to the good of the community, an organization builds a name for itself and ensures they stick to the legislation and end up gaining economic benefits.
There are many concerns by legislators and the community on the green issues that come with reverse logistics. It is vital for organizations to care about the corporate image and citizenship to focus on green production where their priority is in producing environmentally friendly goods.
References
Nikolaidis, Y. (2013). Quality management in reverse logistics a broad look on quality issues
and their interaction with closed-loop supply chains. London: Springer.
Wood, D. F. (2002). International logistics (2nd ed.). New York: Amacom.
