EXPORT AND IMPORT LOGISTICS

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EXPORT AND IMPORT LOGISTICS

• Designing a channel of distribution and the
  appropriate logistical system

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Channels of Distribution

• Lets examine the different modes of how you can
  get your product or service to the final consumer.

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TRADITIONAL
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By-passing the Wholesaler
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By-passing all Wholesalers
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Using Agents
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Adding Wholesalers and Agents
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Originators to Retailers
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Originators to Consumers
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Composite Model of Channels
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Choosing an intermediary

• Two types of intermediaries
• Distributor
• Agents
• Method of Exporting
• Direct
• Indirect
• Integrated

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Negotiating a Contract

• What does a contract look like?
• Look on pages 265-266.
• Some tips on negotiating the contract
• Screen your partner well
• Do not assume anything
• Decide on your metrics first
• Provide means for inspection
• Designate an exit strategy

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Process of Choosing an Intermediary

• Screenat least 3
• Examinetrack record on sales and service
• Compare other lines carried
• Determine market coverage and knowledge systems
• Analyze financials
• Inspect physical facilities
• Interview references

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GLOBAL LOGISTICS

• Or how do you get it there?

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Options for delivery

• Rail
• Truck
• Pipeline
• Air

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Options for getting it there

• Ocean Shipping
• Rail
• Trucks
• Barge
• Pipelines
• Internet?

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Some considerations

• Transit time
• Predictability
• Cost of being wrong
• Government regulations and stability

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Your assignment

• Design an appropriate channel of distribution for
  your product to include
• Choice of an intermediary
• An appropriate logistical system
• Discussion of your rationale for each
• Identification of sources of assistance for
  intermediaries and logistics