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What is the role of the International Logistics System?

Author: Helen

Sep. 15, 2022

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Tags: Tools

 International Logistics System

 1、Transportation subsystem: The role of transportation is to move the use value of commodities through space. The logistics system relies on transportation operations to overcome the spatial distance between the place of production and the place of need, creating the spatial benefits of commodities. The system is to achieve the use value of goods by moving them through space.

2, storage subsystem: international trade and transnational operations in the goods from the production plant or supply sector is concentrated transport to the port of shipment, and sometimes must be temporarily stored for a period of time, and then shipped for export is a collection and distribution process. It is mainly carried out in bonded areas and bonded warehouses in various countries. It is mainly concerned with the bonded system and the construction of bonded warehouses in each country. The bonded system is a system whereby import duty is suspended on specific imported goods, which have not yet been identified for domestic sale or re-export, and are supervised by Customs. This system can overcome the difference in time of the goods and create time efficiency.

3、Inspection sub-system: As international trade and transnational business has a large investment, high risk, long cycle and other characteristics, making commodity inspection has become an important sub-system in the international logistics system. Through commodity inspection, to determine the quality of delivery, quantity and packaging conditions are in line with the provisions of the contract. If problems are found, responsibility can be identified and claims can be made against the relevant parties. In the contract of sale, - generally have a commodity inspection clause, the main content of the inspection time and place inspection institutions and test certificate, inspection standards and test methods. The system can promote sales, maintain product quality and improve the efficiency of international logistics

4、 Customs clearance sub-system: to establish a safe and effective fast customs clearance system to ensure the smooth flow of goods

5、Loading and unloading sub-system: a link and bridge between storage and transport operations, providing space benefits, playing the role of international logistics nodes and reducing logistics costs.

6、Information sub-system: the main function of the international logistics information sub-system is to collect, process and transmit information intelligence of international logistics and commercial flow. Without a well-functioning information system, international trade and transnational business will not be able to move forward. The main content of international logistics information includes the operation process of import and export documents, payment information, customer information, market information and supply and demand information. International logistics information system is characterised by large information, frequent exchange; large transmission volume, strong temporality; many rings, yi, long lines. Therefore, it is necessary to establish a technologically advanced international logistics information system. The development of EDI in international trade is an important trend. China should strengthen the promotion of the application of EDI in international logistics, the construction of international trade and transnational business highway. The system functions by collecting, processing and transmitting information intelligence of international logistics.

The article explains the function of each system of international logistics systemis explained, if you want to know more information, you can contact us.