Managing the Global Supply Chain
To enhance a firm's global capabilities, logistics managementmust consider five major differences between domestic andinternational operations. These include performance cyclestructure, transportation, operational considerations,informational systems (IS) integration, and alliances.
Performance cycle structure. The length of the performance cycleis a major difference between domestic and internationaloperations. Performance cycles are longer for internationaloperations. While the domestic is measured in days, internationalis measured in weeks or months (e.g., fashion merchandise takes 30to 60 days). The reasons for longer order cycle to delivery cycletimes are:
Communication delays Financing requirements
Special packaging requirements
Ocean freight scheduling
Slow transit times
Customs clearance
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