Becoming A Global Presence - Logistics

LOGISTICS

After taking advantage of the Web's global reach, companies face the challenge of getting their products to their destinations. International logistics operations can be extraordinarily tricky to implement, particularly at the level of speed and efficiency that the Internet promises. Companies must weigh the cost of maintaining inventory against the cost of shipping for their various markets. A number of information-technology vendors created software and other products to aid companies in cross-country logistics, including applications designed to tie together various business processes into a simple, integrated enterprise system. Other applications merge operations with databases designed to help firms navigate various tax laws and shipping concerns.

Perhaps the greatest obstacle to establishing efficient logistics operations was the red tape involved in getting goods into different countries. According to analysis firm Benchmarking Partners, the average company maintains about 25 percent of its internationally sourced inventory at distribution warehouses, which adds significant costs. In addition, according to InformationWeek, the duties and other costs levied on companies that don't efficiently negotiate a country's trading environments can make or break a company trying to achieve a global presence.