"Logistics, The Critical Element
in International Trade", Dr.
Darren Prokop, Professor of Logistics,
University of Alaska Anchorage.
What is logistics?
It is the art and the science of
managing three constraints, time,
physical space, and location.
Every organization relies on logistics, to
some degree, in order to conduct business.
Organizations across the world may link up
in a supply chain in order to meet some
strategic goal, but it is logistics
that will make or break that strategy.
Logistics is about getting seven things
right, get the right item, in the right
quantity, and in the right condition,
delivered to the right customer,
at the right time, in the right location,
and do all of this at the right price.
Logistics makes or
breaks international trade.
It facilitates trade when carriers and
third party logistics providers
are available to move shipments
from one country to another.
It also facilitates trade when the support
infrastructure is in working order.
But logistics hinders trade when
the infrastructure is subpar or congested.
It also hinders trade when any lack of
competition among available carriers
keeps freight rates too high.
Logistics keeps international
trade in a state of flux.
Exporters look to expand their customer
base into different countries.
Importers look to expand their supplier
base from different countries.
Each depends on logistics facilitating and
not hindering these activities.
But when new and viable markets are found,
the flows of international
trade will readjust.
Changes in carriers, routes, and
trade volumes at ports of entry and
exit will be the result.