The document discusses domestic and international logistics and supply chain management. It defines logistics, domestic logistics, and international logistics. Domestic logistics involves distribution within a country while international logistics involves distribution across international borders. Managing logistics internationally is more complex due to factors like multiple transportation options, additional costs like tariffs, and challenges building relationships across countries. The document also discusses transportation types, warehouse types, facility location decisions, and evaluating locations using models like weighted factor and break even.

1. GROUP MEMBERS :
 NUR FASYA IZZATI BT MOHAMAD TAJUDIN (62215216231)
 NURUL SARAH ATIQAH BINTI KUSSLAN FARSIDI (62215216116)
 NOR’ATIKAH BT MOHD NOR (62214216324)

2. DISTRIBUTION ISSUES
IN
SUPPLY CHAIN MANGEMENT

3. DOMESTIC AND INTERNATIONAL
LOGISTICS
What is Logistics?
Logistics is the organization and implementation of a complex operation that incorporates
management of flow of things between the points of origin and consumption to meet the
requirements of the customers. Any type of physical products can be shipped through logistics
with a planned process that involves integration of information flow, material handling,
packaging, inventory, warehousing and transportation.
What is Domestic Logistics and International Logistics?
-Domestic logistics is the distribution of goods within a country, it means when its economic
transactions are conducted within the geographical boundaries of the country, while
International logistics is the distribution of goods beyond the country boundaries. The
management of these resources in a company's supply chain across at least one international
border.
- Managing logistics domestically is very different from managing logistics internationally
because of the much narrower geographic scope in a domestic operation.

4. TYPES OF TRANSPORTATION
1. Common carriers - Offer transportation services to all shippers at
published rates between designated locations without discrimination.
Backbone of the transportation industry. Eg ; Trucking Companies
2. Contract carriers - Contract carriers serve specific customers under
contractual agreements. Serve one or a few shippers exclusive. Contract
between two parties. Eg ; FedEx
3. Exempt carriers - transport agency which is exempted from the
regulation of interstate commerce act and is specialization in any
particular service or commodity. Eg ; School Bus
4. Private carriers - Not subject to economic regulation & typically
transports goods for the company owning the carrier.
Eg ; Foodtruck

5. TYPES OF WAREHOUSES
1. Cross Docking – transferring goods from incoming trucks
at receiving docks to outgoing trucks at shipping docks.
May avoid placing goods into storage.
2. Private Warehouse – these are owned and managed by
the channel suppliers (manufacturers/traders) and
resellers and are used exclusively for their own distribution
activities. Provide more control since the enterprise has
absolute decision making authority over all activities and
priorities in the facility.
3. Public Warehouse - these warehouses are owned by
government and semi government bodies and are made
available to private firms to store goods on payment of
rent. The public warehouses are usually set up to help
small traders who are not in position to have their own
warehouses due to financial constraints.

6. DIFFERENCES BETWEEN DOMESTIC AND
INTERNATIONAL
DOMESTIC LOGISTICS INTERNATIONAL LOGISTICS
Management – have a single logistics manager
to supervise and manage all sides of planning
and execution related to the movement of
goods.
Management - have a corporate logistics
manager who will coordinate logistics activities
with other managers. Require clear plans on
execution and distribution processes, and may
lead to challenges in decision making.
Transportation - can utilize a variety of
transportation options for moving goods, out of
which road transport is the most common
preference. Road transport in itself also
a variety of options.
Transportation - have limited transportation
options like some would require only rail while
others would require only flight or sea
Using multiple transportation alternatives for a
single transaction.
Costs - costs involved with store facilities,
transportation, workers and technology.
Costs - some additional costs which include
tariffs, government taxes, fees and currency
exchange fluctuations.
SCR - easier to build trustworthy relationships,
which decides on the nature of the relationship.
SCR - different country regulations, geography
and economic roadblocks present more
challenges in building reliable relationships.

7. E-Commerce and Transportation
1. Electronic Invoice Presentment & Payment (EIPP) - enables businesses
worldwide to exchange documents such as invoices, purchase orders
and credit notes electronically rather than on paper.
2. Third-Party Electronic Transaction Platforms - allow shippers & carriers
to perform various transactions over the Web. These sites provide
freight matching services, auctions, & on–line communities or
marketplaces.
3. Offshore Information Technology Outsourcing - a
company's outsourcing of computer or Internet related work, such as
programming, to other companies. U.S. IT service providers are
contracting with offshore IT providers for software development
services.

8. CUSTOMER RELATIONSHIP
MANAGEMENT
Customer relationship management is about building and maintaining profitable
long-term customer relationships typically by supplying customers with what they
want
SCM is built up of procurement, transportation, inventory,production, packaging
and distribution.
It includes suppliers,manufacturers,distributors,retailers and customers.Others also
like, transporters and warehouses.
CRM systems already consist of sales automation, marketing information systems
and call centre technology.
“Finding a new customer costs five times as
much as keeping an old customer”

9. CRM ROLE IN SUPPLY CHAIN MANAGEMENT
Developing good relationships with suppliers
 It is important to develop a productive and professional relationship.
 Talk regularly and honestly with your suppliers. Good business-to-business
relationships rely on strong, two-way communication.face-to-face contact with
suppliers or their representatives.
 Set up standardized ordering processes that both parties can easily understand and
follow.
 Pay accounts on time. If company cannot make payments in time, make sure the
supplier know before the due date.

10. KEY TOOLS & COMPONENTS OF CRM
 Segmenting Customers- Grouping customers in a variety of ways to create more
specialized communications about firm's products.
 Cross-Selling- Additional products are sold as the result of an initial purchase
 Personalizing Customer Communications- understanding customers, their behaviors, and
their preferences allows firms to customize communications aimed at specific groups of
customers.
 Event-Based Marketing- Offering individual promotions tied to specific events to offer the
right products & services to customers at the right time.
 Web Site Self-Service- Web sites act as support mechanisms for call centers. Customers can
access their account information and operating hours, contact information
 Measuring Customer Satisfaction- Customers are frequently given opportunities to provide
feedback about a product, service, or organization.

11. FUTURE TRENDS IN CRM
 New Privacy Regulations- Rules and laws regarding invasion of privacy are springing
up. Solution: develop a privacy policy and post it on their Web site.
 Application Service Providers (ASPs)- Fifty 50 percent of all CRM programs are now
designed and maintained for clients by ASPs.
 Adapting CRM for global uses is increasing-New Markets out side of traditional
industrialized countries require adaptation to local needs, language, and culture

12. Designing & Implementing a Successful CRM
Program
 Step 1- Creating the CRM Plan
 Step 2- Involve CRM users from the Outset
 Step 3- Select the Right Application and Provider
 Step 4- Integrate Existing CRM Applications
 Step 5- Establish Performance Measures
 Step 6- Providing CRM Training for All Users

13. GLOBAL LOCATION DECISION

14. WHAT IS FACILITY LOCATION DECISION?
Facility location decisions play a crucial role in the logistics activities involved in supply chain
management. In real-life settings, the optimization of location and allocation decisions is often preceded by
an evaluation of the existing distribution network system.
THE IMPORTANCE OF FACILITY LOCATION DECISION
•Facility location has a long-term impact on the supply chain & must be part of the firm’s strategy.
•Companies can locate anywhere in the world due to increased globalization, technology infrastructure,
transportation, communications, & open markets,
•Location still matters- clusters in many industries show that innovation & competition are geographically
concentrated.

15. WHAT IS THE LOCATION FACTORS?
Environmental Issues
•Global warming, air pollution, & acid rain are increasingly debated as the price of industrialization.
•Trade liberalization creates need for environmental cooperation.
Labor Issues
•Labor availability, productivity, & skill.
•Unemployment & underemployment rates.
•Wage rates, turnover rates,labor force competitors.
Right-to-Work Laws
•The right of employees to decide whether or not to join or support a union.
Government Taxes & Incentives
•Several levels of government must be considered when evaluating potential locations.
•Countries with high tariffs discourage companies from importing goods into the country.
•High tariffs encourage multinational corporations to set up factories to produce locally.
•Many countries have set up foreign trade zones (FTZs) where materials are imported duty-free as long as
the imports are used as inputs to production of goods.

16. WHAT IS THE FACILITY LOCATION STRATEGIES?
Dr. Kasra Ferdows suggests 6 location strategy roles:
•Offshore factory- low cost investment & labor costs.
•Source factory- plant mgmt involved in supplier selection & production planning.
•Server factory- Firm uses government incentives & low exchange risk & tariff barriers to reduce
taxes & logistics costs.
•Contributor factory- Firm involved in product development, production planning, procurement
decisions, & developing suppliers.
•Outpost factory- Embedded network of suppliers, competitors, research facilities for materials,
components & products.
•Lead factory- Firm is source of product & process innovation & competitive advantage of the entire
organization.

17. HOW TO EVALUATE THE LOCATION?
 The Weighted-Factor Model- A method used to compare the attractiveness of several locations
along a number of quantitative & qualitative dimensions.
Six steps:
1. Develop a list of relevant factors.
2. Assign a weight to each factor reflecting its relative importance to the firm.
3. Develop a rating scale for the factors.
4. Score each location on each factor based on the scale.
5. Multiply the scores by the weights for each factor and total the weighted scores for each location.
6. Make a recommendation based on the maximum point score, considering other factors.
 The Center-of-Gravity Model-Involves mapping all of the market locations on an x, y-coordinate
grid & then finding a central location that is closest to the markets with the highest demand.

18.  The Break-Even Model - useful location analysis technique when fixed & variable
costs can be determined. Involves the following steps
1.Identify the locations to be considered.
2.Determine the fixed cost of land, property taxes, insurance, equipment, & buildings.
3.Determine the unit variable cost, materials, utilities, & transportation costs.
4.Construct the total cost lines.
5.Determine the break-even points on the graph.
6.Identify the range over which each location has the lower cost.