DISTRIBUTION LOGISTICS

Posted on 28 April 2023 Category : How to export

DISTRIBUTION LOGISTICS

Even before the cargo is ready for dispatch, it is necessary for the exporter to plan the mode of transport of goods to ensure; their timely delivery to the importer. While air transport may not require that much advanced planning. It is not the case with the sea transport due to inadequacy of shipping lines, longer transit time and equally their lack of frequency, compared to air frequency to the same place of destination.

The term 'Distribution logistics', in essence, refers to the decision in respect of mode of transport to be used reaching the goods to the place of importer. So, exporter has to draw up logistics plan, taking two important factors into account viz. alternative modes of transport and optimal mode from the viewpoint of total distribution costs. Many a time, exporters ignore certain markets, as they are not readily accessible with the direct mode of transport. To reach goods to those markets, goods are to be transshipped, as there is no direct link. No doubt, transshipment is a difficult job, yet the opportunities and other advantages may outweigh this disadvantage. With the development of container mode of transport, this is no longer considered as a hindrance to seize the opportunity, if available. Now, distribution logistics is not a problem even to export to moon, provided there is an importer and certainty of payment to receive!

Exporter is more concerned with distribution logistics if the price is quoted on CIF basis as it becomes the lookout of the exporter to bear the incidental costs and risks in reaching the cargo to the importer. However, generally, the importer and exporter usually decide the mode of transport mutually and this is specified in the export contract. The effort of the exporter is to ensure timely and safe delivery of goods to the importer, at economical cost.

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