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Task 1. Scan through the text to grasp its general idea

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GLOBALISATION AND LOGISTICS

 

Globalization is considered to be one of the most important trends in the world today. It is the movement toward a more integrated and interdependent world economy. Globalization, as the news story shows, means that people in any country can purchase products made anywhere else in the world. Globalization is taking place because of the voluntary decisions we make as consumers. People these days are buying more foreign products, and companies are extending their operations on a global scale. Both actions have essential consequences for our future economic well-being.

The sturdy reality of transport and logistics businesses has a certain reassuring appeal in a world of virtual and financial economies. The sector has been outperforming the market as a whole for several years, fed by globalisation and the growth of emerging economies, and consolidation has been rife as investors of all kinds, including sovereign funds, have been keen to buy assets such as ports and airports. Shipping, rail and even canal freight are all benefiting from the mounting difficulties facing road transport, as congestion worsens and the oil price rises.

The broader the international dimension of companies the longer their supply chain (distance between source and consumer) and the more complex its logistics management becomes. Logistics needs to operate “cross-border” in order to be efficient. It is crossing the activities within the value chain (production, marketing, finance) and the company borders with all the agents of the supply chain. Monitoring the supply chain from source to consumer is a constant quest for optimisation. International success is guaranteed by the continuity of the supply chain and sharp control of the logistics costs, improving customer and shareholder satisfaction. This is true for both the demanding parties (shippers of goods) and the supplying parties (logistic service providers).


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