TOPIC 5: Technical Issues (2): Logistics

Question 1

Explain the 5 stages of Logistics

Answer 1

1) R & D → new materias, developing new technology and more.

2) Provisioning → related with suppliers ( intermediate goods or raw materials) Apple has more 300 suppliers

3) Production

4) Sales

5) After sales services → In the case of apple it can be related with the fix of some devices (not all the companies have this step in Logistics)

Question 2

What is International Logistics ?

Answer 2

International logistics orchestrates the flow of goods, information and resources across national boundaries. It encompasses planning, implementing and controlling procedures for efficient transport and storage.

Question 3

Explain the Seven + Rs of Logistics

Answer 3

1. Right Product
2. Right Quantity
3. Right condition
4. Right Place
5. Right Time
6. Rigth Cost
7. Right Consumer
8. Right Sustainability

Question 4

What is an effective Logistics management? Which are the 4 principles of effective logistics Management ?

Answer 4

Building systems that provide visibility across operations creates resilience against disruptions.

1) Strategic Planning
Aligning logistics with Business goals.

2) End-To-End Visibility
Complete Supply Chain Transparency

3) Risk Management
Proactive threat identification and migration

4) Technology Integration
Digital Solutions for operational excellence

Question 5

Which are the transportation modes in Global Logistics? explain a bit of each one of them

Answer 5

MARITIME
90% of worlds trade by volume
- cost effective for bulk goods
- slow transit times
- lower carbon footprint

ROAD
essential for short distance distribution
- flexible routing
- last mile capacity
-direct door to door service

AIR
less than 1% of volume, 35% by value
- rapid delivered times
-premium pricing

RAIL
growing importance in continental trade
-moderate costs
- reliable schedules
-eco friendly option

Question 6

Name in order the transportation model selection criteria

Answer 6

1) COST EFFICIENCY
2) TRANSIT TIME
3) CARGO COMPATIBILITY
4 ) ENVIROMENTAL IMPACT
5) INFERSTRUCTURE ACESS

Question 7

Explain a bit of the Sea Freight ( Global Maritime Logistics )

Answer 7

Maritime transport remains the backbone of international trade.

Lowest cost per unit for bulk shipments and long
distances.

Ideal for non- urgent, high-volume cargo.

Established maritime corridors connect major global markets.

Question 8

Explain a bit about the Air Freight

Answer 8

Air freight provides unmatched speed advantages. The premium cost is justified for
high-value or urgent shipments.

Premium Speed:
Faster transit times globally
Critical for time-sensitive goods
Essential for perishables

High Value Cargo
Pharmaceuticals and medical supplies
Electronics and precision Instruments
Luxury goods and fashion items

Global Network
Extensive hub-and-spoke systems
Advanced tracking capabilities
Integrated with ground transportation

Question 9

Road Freight

Answer 9

Road transport offers unmatched flexibility. New technologies like electric
vehicles and route optimisation software are transforming the sector.

Question 10

Rail Freight

Answer 10

Rail networks are experiencing significant expansion globally. New international corridors are changing traditional trade patterns.

Efficiency Benefits
Rail freight delivers superior fuel efficiency compared to road transport. A single train can replace dozens of lorries, reducing congestion and emissions.

New Silk Road
The New Silk Road connects China with Europe through Central Asia. Transit times have reduced from months to just 12-14 days.

North American Networks
North American rail networks efficiently move goods between Canada, the USA and Mexico, supporting the USMCA trade agreement

Question 11

Goal of the Supply chain management

Answer 11

Reduce costs, improve quality, and satisfy customers.

Question 12

Main steps of the supply chain management

Answer 12

1. Planning
2. Sourcing (getting raw materials)
3. Manufacturing
4. Delivery (logistics)
5. Returns (reverse logistics)

Question 13

Definition of the supply chain management

Answer 13

Managing the flow of goods/services from raw materials to final delivery.

Question 14

Risk Management in Global Logistics

Answer 14

Risk categories → Global logistics faces diverse threats including natural
disasters, political instability, cybersecurity breaches and supplier failures.

Migration Strategies → Implement multi-sourcing policies and geographic
diversification. Maintain strategic inventory buffers for critical components.

Insurance Solutions → Comprehensive cargo insurance provides financial
protection. Specialty policies address specific risks like political disruption.

Question 15

How many incoterms there are ?

Answer 15

11