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Operating in the global environment presents unique challenges and opportunities for logistics and supply chain management; when dealing with business with international partners, we have
Operating in the global environment presents unique challenges and opportunities for logistics and supply chain management; when dealing with business with international partners, we have to consider that there will be an increase in the logistics cost, and the complexity is also high. The distance between the manufacturing and sales floor is different, increasing the shipment cost. There may be longer lead times because the products are manufactured at other places and should be imported or exported, so it takes some time. Market knowledge about the global environment is an essential factor to consider. Products should be manufactured by analyzing their market structure. Some key considerations include: Customs and Compliance Issues: Navigating international trade regulations, customs documentation, and compliance with various countries' import/export laws is crucial. For example, a company shipping electronics to Europe must ensure compliance with CE marking requirements. Transportation Modes and Costs: Selecting appropriate transportation modes (air, sea, rail, or road) based on factors like speed, cost, and reliability is essential. For instance, air freight might be chosen for high-value, time-sensitive goods, while sea freight may be more cost-effective for bulk shipments. Inventory Management: Balancing inventory levels across multiple locations to meet demand without excess stock is
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