Global logistics Essay Example | Topics and Well Written Essays - 3000 words

Global logistics - Essay Example This paper will present a report to discuss various logistical issues and logistical procedures that should be considered by Middle East Division of MedicalCare International (MEDMI) before commencing the export of pharmaceuticals from Sao Paulo, Brazil and cosmetics from Bangalore, India. This report will discuss various modes of transport and destination ports that can be depended for MEDMI’s supply chain procedures. In order to develop and sustain effective global logistics, the management of MEDMI will have to address environmental issues apart from a number of issues related to logistics networks, inventory handling, organizational relationship, and performance measurement. These issues are discussed below: The global presence of MEDMI will certainly impact the channel structure it chooses for transportation between Jebel Ali and ports in Sao Paulo and Bangalore. Transportation between these ports involves longer distance leading to greater levels of risks, uncertainties and costs. Complexity of channel relations and costs for logistical operations will increase proportionately or more than proportionately when the firm’s network relation between global supplier, intermediary and customer expand (Gourdin, 2006). Severity of competition in global logistics is one of the main issues the management of MEDMI will have to address before starting exporting from Bangalore and Sao Paulo. Firms playing in global logistics compete with others through product differentiation or other strategies, and therefore, it is important to evaluate those factors that contributing to the competitive advantages of its competitors. Marketing strategies and distribution systems are normally interrelated. Well before arranging the export from Bangalore and Sao Paulo, managers of MEDMI have to take strategic decision regarding what type of distribution will be most supportive of its marketing strategies. There are three modes of distribution;