International Logistics: Risk Factors, Strategies and Solutions Report

This report delves into the intricacies of international logistics, highlighting the critical risk factors that supply managers must navigate. It emphasizes the importance of efficient infrastructure, the impact of transportation costs, and the challenges of managing labor relations within the industry. The report also explores the potential consequences of inefficient trade facilitation, including the need to optimize logistics and reduce operational inefficiencies. It touches on the impact of warehousing, fluctuating freight charges, and the necessity of maintaining a harmonious labor force through effective agreements and fair wage structures across different countries. The report references Manuj & Mentzer (2008) to support its claims and provide a comprehensive overview of the challenges and opportunities in international logistics.

Running head: INTERNATIONAL LOGISTICS
International Logistics
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Risk factors that are to be dealt by supply manager in International Logistics
The logistics company operates within a complex supply chain framework that
requires the co-ordinated flow of proper information, payments, delivery of goods and
services in a better way. It is also vital to optimize the profits from different geographical
regions with the lowest procurement cost and commercialization of products across different
region. The risks that are faced by the supply by the supply manager include operational
inefficiencies in the infrastructure process, increasing transportation costs and labour
relation in the logistics industry. If there is no provision of better trade facilitation and
logistics performance, there might be export diversification and thus it might pose risks to the
supply manager of the logistics company. There might be inefficiencies in the transportation
process and the poor condition of the storage infrastructure might affect the industry in the
long run. On the other hand, a complex tax structure might also hinder the process of trade
between two countries and thus it might result to operational inefficiencies. The problem of
warehousing is considered to be a real estate problem for the logistics company operating on
international basis (Manuj & Mentzer, 2008).
Further, it can be said that the increase in the transportation cost will also lay impact
on the performance of the logistics company. There might be problem from offshoring to
near shoring sourcing and thus this might reduce the shipment cost. The sudden hike in the
transportation cost will pose a risk to the managers and thus they will face difficulty in
managing them. The prices are considered to fluctuate from time-to-time due to changes in
the 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 this
might pose threat to the supply manager. It is necessary for the employers and the employee

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to come to a proper agreement so that there will be no conflict among them and thus they will
be willing to work in that contract of employment. The labour force needs to work for
minimum hours and thus it will be easier for the managers to calculate the standard wage that
are in operational across different countries (Manuj & Mentzer, 2008).

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References
Manuj, I., & Mentzer, J. T. (2008). Global supply chain risk management
strategies. International Journal of Physical Distribution & Logistics
Management, 38(3), 192-223.