What is the International Logistics System?

The international logistics system is composed of packaging, storage, transportation, inspection, distribution processing, pre and post collation, repackaging and international distribution subsystems. Among them, storage and transportation subsystems are the two pillars of logistics. International logistics through the storage and transportation of goods, to achieve its own time and space benefits, to meet the requirements of international trade activities and multinational companies operating.

The composition of the international logistics system：

1、Transportation subsystem

The role of transportation is to move the value of commodities in space, and 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. International cargo transportation is the core of international logistics system. Commodities are transferred from the seller to the buyer through international cargo transportation operations. International transportation of goods is characterized by long routes, extensive links, complicated procedures, high risks, strong time and other features. Transport costs account for a large part of the price of goods in international trade. International transport mainly includes the choice of transport mode, processing of transport documents and insurance and other related aspects.

2、Warehousing subsystem

Commodity storage, storage so that the commodity in its circulation process in a long or short relative standstill, this standstill is completely necessary. Because, commodity circulation is a decentralized to centralized, and then from the centralized to decentralized source of continuous circulation process. International trade and transnational business in the commodity from the production plant or supply sector] is concentrated to the port of shipment, and sometimes must be temporarily stored for a period of time, and then shipped for export is a set and dispersed process. It is mainly in the bonded areas and bonded warehouses in various countries. Mainly related to the bonded system and bonded warehouse construction in each country. Bonded system is a specific import of goods, after the entry, has not yet determined the final destination of domestic sales or re-export, suspend the payment of import duties, and by the customs supervision of a system. This is a tariff measures taken by governments to promote foreign processing trade and re-export trade. Bonded warehouse is approved by the Customs and Excise Department is dedicated to the storage of bonded goods warehouse. It must have special storage, stacking of goods security facilities; a sound warehouse management system and detailed warehouse books, with special customs training approved by the full-time management staff. The emergence of bonded warehouses, customs warehousing for international logistics provides both economic and convenient conditions. Sometimes there will be the goods do not know how to deal with the final situation, when the buyer (or seller) will be temporary storage of goods in bonded warehouses - a period of time. If the goods are eventually re-exported, there is no need to pay customs duties or other taxes; if the goods will be sold domestically, the tax time can be postponed until the actual domestic sales. From the perspective of logistics, should minimize the storage time, storage quantity, accelerate the turnover of goods and capital, to achieve the efficient operation of international logistics.

3、Commodity inspection subsystem

Due to international trade and transnational business with large investment, high risk, long cycle and other characteristics, making the commodity inspection has become an important subsystem of the international logistics system. Through commodity inspection to determine the quality of delivery, quantity and packaging conditions are in line with the contract. If problems are found, the responsibility can be identified and claims can be made to the relevant parties. In the contract of sale, - generally have a commodity inspection clause, the main content of the inspection time and place inspection agencies and inspection certificate, inspection standards and inspection methods.

4, commodity packaging subsystem

In order to improve the function and efficiency of the commodity packaging system, the majority of foreign trade workers should raise awareness of the importance of export commodity packaging work, establish a modern packaging awareness and packaging concept; as soon as possible to establish a number of export commodity packaging I industry base to meet the needs of foreign trade development, to meet the international market, the international logistics system for export commodity packaging of various special requirements; carefully organize a variety of packaging materials and packaging containers supply. The supply of packaging materials and packaging containers. These packaging materials, containers should have more varieties, complete specifications, small quantities, fast changes, delivery time, quality requirements and other characteristics in order to expand foreign exports and foreign exchange earning capacity.

5、International logistics information subsystem

The main function of international logistics information subsystem is to collect, process and transmit the information and intelligence of international logistics and commercial flow. Without a well-functioning information system, international trade and transnational business will be difficult to move forward. The main contents of international logistics information include the operation process of import and export documents, payment information, customer information, market information, supply and demand information, etc. International logistics information system is characterized by large information, frequent exchange; large transmission volume, strong temporality; many rings, yi, long lines. So 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 international logistics in the application of EDI, the construction of international trade and transnational business highway.

This article explains the definition of international logistics system from the five components of the international logistics system, I hope it will be helpful to you, if you want to know more related information, you can click here.