LOGISTIC AND IMPORTS

Introduction

In the following pages it would be explain the logistics process, types and main characteristics is explained, and how it relates to the term "supply chain", the influence of this for a good logistics, the design of it, also too, the relationship of logistics and supply chain processes of import, its advantages and disadvantages..

1. Logistic

The origin of logistics is in the military, where the organization tended to serve the movement and maintenance of troops in the field. In wartime, the efficiency for storing and transporting were vital elements. Logistics is defined by the RAE as all necessary methods to carry out the organization of a company, a product or a service, focused on distribution, another definition; is the set of activities related to the supply, transportation, storage and handling of raw materials, finished products and / or services along the supply chain activities. Describe the overall process of the movement of raw materials and products that reach, flow through, and come out of the premises of a company.

Involves tasks of planning and resource management, It works efficiently to implement and control the materials and the products, from the point of origin to the consumer, with the intent to meet consumer needs at the lowest cost.

(July 2014), Logistic, Retrieved from: http://es.wikipedia.org/wiki/Log%C3%ADstica

We can classify logistic as:

• Inbound Logistic: are those activities whose goal is the approach and the receipt of raw materials, goods or services from our suppliers to the facilities of a company either producer or distributor

• Operational Logistic: is the movement of materials, components and goods between and / or within the premises of a business, from the warehouses of raw materials, through production lines and hitting the ramps shipment.

• Outbound Logistic: are all activities related to the movement of goods to the outside of the premises of a company in order to be distributed to our customers (Physical Distribution).

• Backwards Logistic: To the premises of a manufacturer of goods makes an unhappy customer due to failures or problems in the functioning of the products. Not always required to return the product to the factory but can be sent to local suppliers and contracts authorized repair service.

We can also classify logistic in 4 different types as:

• Integrated Logistics: Is the timing of consecutive constant flow of raw materials, goods and services throughout the supply system, a production and distribution company.

• Strategic Logistics: When a company goes beyond the boundaries of their organization and makes alliances or partnerships with suppliers and customers to ensure the timely flow of their products or services to the final consumer.

• Business Logistics: The binding manufacturers, carriers, suppliers, brokers, vendors, etc., to gather information on the needs of each and form teams in order to reduce costs, ensure quality, improve the customer service and implements the JIT system in product deliveries.

• Logistics contracted to third parties (Third Party Logistics or 3PL): The use of external distribution companies (shippers, storers) to perform part or all of the distribution functions of the products and / or services of a company such as inventory control, customer service, use of warehousing transportation.

Logistic Concept, Retrieved from: http://es.slideshare.net/administracionunas/concepto-de-logistica-empresarial

2. Supply Chain Management

Each country cannot supply itself, it needs another country to satisfied wants. The globalization allows the commerce worldwide. Therefore the increase of competitive market, the consumption of the customer, information accessibility on Internet and international agreements between countries, caused by the need of the people. As we saw in the previous topic of logistic, the mentioned and Supply Chain relates.

Nowadays in Dominican Republic grows international purchase because the low cost of raw materials and agreements profits. One of them is DR-CAFTA Agreement, in that are contained the follow countries: Dominican Republic, Center America and United State.

The treaty reduce the taxes that Dominican importer pay to the customs authorities. Precisely in this year, most raw materials brought from the United State and Puerto Rico, not pay tax by DR-CAFTA. Due to the increase of the national import, because the agreement profits, we have to count with a good logistic procedure, if we want to have our order on time.

In that way, if we want the good flow in logistic, we need to have knowledge in Supply Chain Management first. Supply Chain Management (SCM) are series of exchange processes or flow materials and information set from stage of raw material to the end user consumption both within each organization and beyond, with its respective suppliers and customers. SCM connects many companies, starting with unprocessed raw material and ending with the final customer using the final product.

1.1 The objectives of Supply Chain are showing in the chart below:

The chart means that in a Supply Chain there some risk and uncertainty that we have to reduce. Inventory level refers the quantity of product you have. Cycle time is the activity starting and ending. Process relates the previous activity with the follow. Finally delivery level is the delivery time of product.

1.2 Design elements for Supply Chain:

It has three elements are:

• Members: Can be primary and secondary. Primary members refer the person who adds value of product. In other hand, secondary is who give support.

• Structure: Divide in horizontal and vertical. The horizontal structure refers the institutions form within of Supply Chain. The vertical structure refers the kind of categories.

• Flows and processes: Are materials, information and money.

1.3 Stages of Supply Chain:

1.4 Definitions of components in Supply Chain:

o Manufacturer: is the internal link and it determines a SC.

o Providers and customer: are external link.

o Upstream: It find above the manufacturer. Such as providers.

o Downstream: It find below the manufacturer. For examples Customers.

1.5 In SC there are three types of customer:

• Wholesaler or distributor: Is the entity who buys manufacturer in huge quantity and sale the product to retailer or final customer. Example: Jumbo, La Sirena, Plaza Lama, Almacenes Unidos, and others.

• Retailer: Is a small business

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