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1、Chapter6InternationalLogistics,Risk,InternationalLogistics,Risk,andInsuranceandInsuranceINTERNATIONALLOGISTICSLogisticsisatotalsystemsapproachtomanagementofthedistributionprocessthatincludesthecost-effectiveflowandstorageofmaterialsorproductsandrelatedinformationfrompointoforigintop
2、ointofuseorconsumption.Therearetwocategoriesofbusinesslogistics:1.Materialsmanagement:Inthecontextofexport-importtrade,logisticsappliestothetimelymovementorflowofmaterials/productsfromthesourcesofsupplytothepointofmanufacture,assembly,ordistri-bution(inboundmaterials).Thisincludesth
3、eacquisitionofproducts,transportation,inventorymanagement,storage,andthehandlingofmaterialsforproduction,assembly,ordistribution.Forexample,prod-uctscanbeassembledinCanadafordistributioninCanadaandtheUnitedStates.2.Physicaldistribution:Thesecondphaserelatestothemovementofthefirm’spr
4、oducttoconsumers(outboundmaterials).Itincludesout-boundtransportation,inventorymanagement,andproperpackagingtoreducedamageduringtransitandstorage.Materialsmanagementprimarilydealswithinboundflow,whereasphysi-caldistributionisconcernedwiththeoutboundflowofmaterialsorproducts(Guelzo,1
5、986).Bothinboundandoutboundactivitiesareinterdependentandinfluencethecompany’sobjectiveofreducingcostwhileconformingtocustomerneeds.TheinterdependenceofsuchactivitiescanbeillustratedExport-ImportTheory,Practices,andProcedures,SecondEdition121122EXPORT-IMPORTTHEORY,PRACTICES,ANDPROCE
6、DURESbytheexampleofU.S.flowerimportsfromLatinAmerica.AtlanticBouquet,aU.S.company,purchasesmostofitsflowersfromitssistercom-panythathasflowerfarmsinLatinAmerica.ContinentalAirfreightstheflowersfromcompany-ownedfarmsinLatinAmericatoawarehouseinMiamibeforetheyaremovednationwidebyair,o
7、rbytruckfordistancesoflessthan300miles.Apropermanagementofthelogisticssystem,thatis,theuniquecombinationofpackaging,handling,storage,andtransportation,willensurethattheproductisimportedandmadeavailabletothecustomerattherighttimeandplaceandintherightcondition.Theinterdependenceoffunc
8、tionalactivitieshas
