AA12 Evidencia 1

Actividad de aprendizaje 12
Evidencia 1: WRITING AND ESSAY ABOUT LOGISTICS COSTS
Aprendiz
Martin Ediber Bolívar Ramírez
Ficha 2193547
Instructor
Carlos Andres Jimenez Villanueva
TECNÓLOGO EN NEGOCIACIÓN INTERNACIONAL
Bogota D.C. Diciembre 2021

Introduction
Product distribution requires a huge amount of planning and painstaking logistics -

from
order handling, stock control and storage, to packing, despatch and delivery of
goods,
choosing the right distribution channel is just as important for selling products as
setting
your price correctly. “(Master Card Biz, 2017-03.01, Physical distribution is the set
of
activities concerned with efficient movement of finished goods from the end of the
production operation to the consumer
1. Mains points
It is important to highlight the geographic location of Colombia, the only nation in

South
America that has coasts on the Pacific Ocean and the Caribbean Sea. It is also the
fourth
largest nation in South America, with an area of 2,129,748 km², of which 1,141,748
km²
correspond to its continental territory and the remaining 988,000 km² to its maritime
extension. Its geographical location and its extension make it one of the nations with
the
greatest advantages in terms of trade and therefore in the logistics system. However,
Colombia is one of the countries with great deficiencies in the commercial and
logistics.
factor, due to the fact that its productivity, infrastructure, transportation and storage
of cargo
goods are extremely deficient.
Taking into account what I believe that the real success for Colombian companies in
an FTA
environment will be their ability to adapt, which will allow them to maintain the
balance
between the production process and the needs of the final consumer, thus achieving
results
that positively impact their growth and development, says Edgar Blanco, director of
Research
at the MIT Center for Transportation and Logistics and the Latin American Center
for
Logistics Innovation (CLI) of Logyca, a consulting firm in logistics issues. In addition
to the
issues of red tape and the low competitiveness generated by logistics costs are the
main
drawbacks when it comes to doing business.
Finally, it is important to highlight that exporting companies in Colombia, in addition
to
assuming the high costs of exporting, they are not sufficiently 15 competitive
because their
size does not allow them to face the challenges of an increasingly globalized world.
increasingly globalized world.
2. Advantages of the logistics sector
Use of the distribution network. An efficient logistics system benefits from a large
distribution network of logistics operators, which allows them to be more powerful
nationally and internationally.
Cost reduction. Thanks to globalized distribution systems and the implementation of

different distribution systems such as cross-docking (direct customer distribution),
transport costs can be reduced.
Efficient logistics management. Good logistics management and efficient

management will improve the quality of service and the satisfaction of end
customers.
Possibility of urgent transport. A large company dedicated to logistics transport
implements advanced systems, such as urgent transport. In this way, due to the
existence of a globalized world, orders and goods can arrive very quickly from one
country to another.
Information Technology. The new technologies implemented in the logistics sector

are an efficient response to the current needs in the field of Supply Chain and the
generation of value-added services.
Disadvantages of the logistics sector
Coordination risks. When working in the logistics sector at an international level, it

must be taken into account that there may be coordination risks due to different
factors such as language, time zones, differences in working conditions or cultural
changes.
Difficult access for SMEs. The logistics sector is usually dominated by large
companies that have stronger distribution chains, so the access of small and
medium-sized companies to this field is quite difficult.
The distance. The cost of transporting unit by product rises the greater the distance.
In this way, if you do not have strong distribution systems it is difficult to offer a
competitive price for a product that is at the other end of the planet.
Legal framework. Legislation for the transport or import and export of goods is of the
utmost importance, since domestic laws and customs policy can stop the entry or
exit of a product.
Conclution
In the Colombian case, the logistics system is currently lagging behind, so the main
reason
for the excessive costs borne by the country's exporting companies is the cost of
transportation due to the backwardness of infrastructure (rail, air, sea and land),
making it
the most onerous item when it comes to exporting, In addition to the Colombian
infrastructure
applied to foreign trade, they point out that the impact on the costs and operations
of exports
is direct and that to a large extent the international indicators that place Colombia in
the last
positions of efficiency are given for reasons of corruption, lack of administration
3. Bibliográphy citation
DÍAZ PÉREZ DE LA LASTRA, JOSÉ MARÍA (1995), Modelo de análisis y

evaluation of business logistics practices in the business environment and
of transport. application to the industrial fabrics of the Basque Country, Santander.
Bibliography
https://www.gestiopolis.com/costos-logisticos-que-son-cuales-son-y-como-
minimizarlos/

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Actividad de aprendizaje 12

Evidencia 1: WRITING AND ESSAY ABOUT LOGISTICS COSTS

Martin Ediber Bolívar Ramírez

Carlos Andres Jimenez Villanueva

TECNÓLOGO EN NEGOCIACIÓN INTERNACIONAL

Bogota D.C. Diciembre 2021

Product distribution requires a huge amount of planning and painstaking logistics -

It is important to highlight the geographic location of Colombia, the only nation in

2. Advantages of the logistics sector

Cost reduction. Thanks to globalized distribution systems and the implementation of

Efficient logistics management. Good logistics management and efficient

Information Technology. The new technologies implemented in the logistics sector

Disadvantages of the logistics sector

Coordination risks. When working in the logistics sector at an international level, it

DÍAZ PÉREZ DE LA LASTRA, JOSÉ MARÍA (1995), Modelo de análisis y

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