Risk Factors in International Logistics


Added on  2019-09-30

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Running head: INTERNATIONAL LOGISTICSInternational LogisticsName of the Student:Name of the University:Author Note:
Risk Factors in International Logistics_1

INTERNATIONAL LOGISTICS1Risk factors that are to be dealt by supply manager in International LogisticsThe logistics company operates within a complex supply chain framework thatrequires the co-ordinated flow of proper information, payments, delivery of goods andservices in a better way. It is also vital to optimize the profits from different geographicalregions with the lowest procurement cost and commercialization of products across differentregion. The risks that are faced by the supply by the supply manager include operationalinefficiencies in the infrastructure process, increasing transportation costs and labourrelation in the logistics industry. If there is no provision of better trade facilitation andlogistics performance, there might be export diversification and thus it might pose risks to thesupply manager of the logistics company. There might be inefficiencies in the transportationprocess and the poor condition of the storage infrastructure might affect the industry in thelong run. On the other hand, a complex tax structure might also hinder the process of tradebetween two countries and thus it might result to operational inefficiencies. The problem ofwarehousing is considered to be a real estate problem for the logistics company operating oninternational basis (Manuj & Mentzer, 2008). Further, it can be said that the increase in the transportation cost will also lay impacton the performance of the logistics company. There might be problem from offshoring tonear shoring sourcing and thus this might reduce the shipment cost. The sudden hike in thetransportation cost will pose a risk to the managers and thus they will face difficulty inmanaging them. The prices are considered to fluctuate from time-to-time due to changes inthe freight charges and the sudden hike in the price of fuel of the logistics carrier (Manuj &Mentzer, 2008). There might be problem in managing the labour force in the logistics industry and thismight pose threat to the supply manager. It is necessary for the employers and the employee
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