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Student: Alejandro Criollo Galindo Technology Negotiation International Worksheet: 1565301 learning activity 12 Phase: E

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Student: Alejandro Criollo Galindo Technology Negotiation International Worksheet: 1565301 learning activity 12 Phase: Ejecution TEXT: The real impact of high transportation costs. A. What is the main idea of the text? The strategics shifts of the companies for reduced transportation costs. B. What realities have led to high transportation costs? The realities have led to high transportation costs are: 1) imbalance of supply and demand for freight transport services. 2) crude oíl prices have risen significantly. C. What are the three such shifts that are having a notable impact today in transportation costs? FIRST SHIFT: from offshoring to nearshoring sourcing strategies in an effort to reduce the number of miles shipments travel. SECOND SHIFT: from designing products and packaging for marketability and more efficient production toward designs that also incorporate "shipability” considerations. These include: customizing packaging for individual products' sizes and dimensions for space efficiency and easy handling; providing protection of goods in transit; and facilitating multiple processes of offloading, repackaging, and reloading THIRD SHIFT: From lean inventory strategies to hybrid lean inventory/ transportation strategies. D. What is the principal factor, the center of the factor to have high prices in transportation? Freight movement in most modes remains largely dependent on ever-more expensive and finite fossil fuels. Crude oil prices have risen significantly is the dominant factor cada año. E. What has happened to the companies which have adopted the three transport driven shifts in supply chain? These shifts also help to improve both supply chain and financial performance due to lower costs and more productive investments.



The shortened distance and reduced risk of port congestion and associated delays also mean that companies can more quickly adjust freight movements to changes in customer demand.  These changes translate into savings in freight costs, packaging costs, and space utilization.



these inventory-cost increases are offset by freight-cost reductions achieved through improved shipment economies, fewer empty runs, and better vehicle utilization.

F. The strategic shifts represent the manifestation of a renewed focus on the long-established principles of transportation management. What are the key drivers of transportation costs? Those strategic shifts represent the manifestation of a renewed focus on the long-established principles of transportation management that distance, density, and shipment size are key drivers of transportation costs. THE STRATEGICS SHIFTS TRANSPORTATION COSTS.

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Introduction In the international physical distribution, we find that it is important to reduce logistics costs to generate greater profitability for a company and increase competitiveness in the international market, it is also important to avoid high operating and transportation costs affecting the company's profits

Principal points The international physical distribution, this being a product export process, has as main objective to reduce risks, the times and costs as much as possible. It is necessary to take into account that logistics and international physical distribution are important in foreign trade operations, the logistics is key to achieve maximum efficiency and effectiveness, the positive aspects that benefit companies, as well as creating strategies to counteract the distances and to be able to transport the products briefly and bring them closer to the final market faster. This generates efficiency because the less time a product remains in each of the stages of a logistics chain, the lower the cost incurred in the different processes and in the final product, the market will be delivered more quickly and effectively, since the Lower costs can translate into higher profits. A disadvantage of not achieving this goal is that we must take into account that the increase in the cost of transport, the generates operating costs and profits that are affected, also the that for company the profits are minimal or the product must be sold more expensive

Conclusion In the present in the companies there are basic system that facilitate their smooth operation, is the logistics system that related to the flow of materials from suppliers to end users and whose establishment requires an exhaustive analysis and study to achieve that the company has a fully integrated, also that generate cost effectiveness and earnings. For distribution physical international the logistic is very important, optimize its process save time and cost.

“https://www.beetrack.com/es/blog/los-4-problemas-silenciosos-de-la-distribucionfisica-de-productos”

“https://bibliotecadigital.ccb.org.co/bitstream/handle/11520/11327/100001038.pdf? sequence=1”