Discussion: Impact of Globalization
Globalization and international logistics adds complexity to logistics managers job. With macro environmental influences, international documents, and the logistics performance index (LPI), there is a lot to consider when shipping and receiving freight internationally. Macroenvironmental influences are political, economic, and cultural factors, which include tariffs, governmental regulation, time zone differences and orientation, economic integration, and other barriers. In addition, there are other factors for a logistics manager to consider, such as maintaining product quality during shipment and direct impacts on the environment/ecosystem. However, greater risk can result in greater reward. By expanding into international affairs, an organization can unlock greater sales revenue, source less expensive materials, and improve operational efficiency.
An example of an organization who’s logistics team practiced “thinking outside of the box”, is Coca-Cola. The organization avoided shipping delays by not going into congested shipping ports. Instead, Coca-Cola utilizes three bulk vessels to ship materials in order to bring freight into non-congested ports (Salgado, 2021). This non-traditional method has allowed the organization to maintain its production lines across the world and ensure that freight is delivered timely, despite global constraints and busy ocean shipping environment. This was the result of effective communication and collaboration between Coca-Cola’s procurement teams, supply chain partners, and suppliers.
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