Challenges and Difficulties in International Logistics
Heterogeneity is probably the most important challenge for international logistics activities. Each country and region has its specific elements of peculiarity, which lead to a great variety of domestic logistics systems which, combined have to be orchest
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Fig. 11 — Transnational and country-specific challenges in global logistics
Global IT Linkage
Transnational
Regulations and Taxes Personnel
Interdependency in case of Disruptions
Customs Duties and Procedures
Countryspecific
Environmental Concerns and Regulations
Software Systems
Geography and Climate
Modulating Trade Specifications
Infrastructure Political and Legal Conditions
Development Level and Economy Tightening Security Requirements
Long Haul Distances
Financial Risk Interlacing Trade Structures
Security Issues
Logistics Market Cultural Aspects Many Involved Intermediaries
Complexity and Uncertainty
Fluctuating Exchange Rates
Source: according to Pfohl, H.-C. (2004)
4
Challenges and Difficulties in International Logistics
Heterogeneity is probably the most important
Consequently, matching the global logistics
challenge for international logistics activities.
strategy of a company with environmental
Each country and region has its specific ele-
heterogeneities includes a universal view of
ments of peculiarity, which lead to a great
the logistics conditions both within involved
variety of domestic logistics systems which,
countries and also transnationally, as illus-
combined have to be orchestrated in a global
trated in Fig. 11 above.
network. Hence, for designing and managing such a global logistics network, several cat-
In addition, two aggravating circumstances
egories of differences between the involved
have to be kept in mind: firstly, most of the
countries and regions need to be considered.
countries differ not only from one another,
Amongst others, these are mutual integration
but also internally — one might think of the
of commerce and trading structures, homo-
differences between China’s coastal areas in
geneity of customer requirements concerning
comparison to its hinterland. Secondly, many
transport time and flexibility of delivery date,
conditions are continuously changing, mak-
transportation infrastructure and administra-
ing global logistics very alterable and by no
tion as well as the geographical spread.
means static.
The procedures of trade and transportation are only partially standardised on a global level, but to a large extent they depend on national specifications.
22 | Survey – Internationalisation of Logistics Systems
4. Challenges and Difficulties in International Logistics
4.1
Country Specific Issues in Global Logistics
Country specific issues in global logistics in-
Security issues of certain regions are by no
clude a variety of aspects. Some of them typi-
means limited to logistics and have to be un-
cally differ from country to country; others will
derstood in a general context of society and
be of great similarity between countries and
economy. And from a logistics point of view it
regions.
is of vital importance, since logistics handles all kinds of valuable goods, theft, robbery and
Tab. 2 shows the most severe challenges for
damage will lead to poor reliability, increasing
each particular region and country
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