International Logistics Challenges That Affect the Distribution of Goods
Trade is the lifeblood of international relations. We would not have any of these intercontinental relationships with other countries if not for the co-dependency and trades we have with them. One of the biggest problems with international trade is the factors that somehow delays or greatly affects the distribution of goods from one point to another.
These factors may seem mundane if view in domestic perspective but in light of international relations these factors greatly affect not only the flow of goods but also the dealings we have with such country. Here are some of those challenges in the delivery of goods and stocks.
Port and Warehouse Theft
Many crimes happen on warehouses and even ports where the gods are docked and delivered. These are not petty theft as some might suggest. These are organized crimes committed by corrupt officials or criminal underworld groups to make a racket and gain easy money from goods in ports.
This is one of the biggest problems especially if the ports and warehouses are situated on countries with high rates of crime and high poverty. Along with piracy this causes unwanted delays in delivery of goods because companies are sacred to be victims of such theft, thus they choose other locations which are farther yet safer for their goods.
Lack of Reliable Firms
There are no shortages of logistical firms that are present in any country. But the problem is some are not reliable firms with so many delayed schedules, backlogs, and other anomalies. One problem by companies delivering these goods is that they need to consult a number of reliable freight logistics consultants in making deliveries.
The lack of reliable firms causes companies to stick to a single logistical firm which then bears the weight of having to delivery too many goods on a short period of time causing delays and affecting operations and sales to other companies.
Many had this problem of having to deal with manual processing of documents which wastes so much time on waiting for the right people and the right officials to check or sign the documents for unloading or loading it to another carrier.
The problem is not with the country and port where the company is but, on the port, where the goods will have to be docked in order to deliver it further. The non-automated processing of these ports and its officials are making the companies loose so much money just because of an ineffective bureaucracy.
Fluctuating Currency and Exchange Rates
When countries trade goods through corporations they most likely pay thru online banking means which has a very complex way in dealing with different currencies. So, when a currency loss a purchasing power, the bank has to make adjustments on the exchange rates. So, when one company has to pay for a certain number of goods that has to be transported the bank has to make proper adjustments that the payment will be of exact currency with the exact rate when the deal as made. This fluctuation causes delays in a way that gives companies and banks time to make adjustments.
Though international relations are mainly on entrepreneurial aspects many of the problems with trade is the politics and policies of other nations rather than the businesses themselves.