Main Aim(s) of the Unit

This unit aims to develop the necessary skills and knowledge base to maintain a sound system for classifying and recording cost accounting information for stock valuation, profit measurement, and for assisting management in the profitable operation of a business.

Main Topics of Study

Physical Distribution in Perspective

• Define Marketing
• Domestic Versus Export Markets
• Marketing Research
• Market Selection
• Bad Reasons for Exporting
• Good Reasons for Exporting
• Market Selection Criteria
• Methods of Market Research
• Sources of Secondary Information
• The Marketing Plan
• Indirect Exports
• Direct Sales
• Selection of Distribution Channels
• International Physical
• Distribution

The Export Office

• The Export Office
• Organisation Charts
• External Organisations

The Export Quotation

• Forms of Export Quotation
• Buyer Documents
• International Delivery Terms
• Trade Terms

Inland Transport

• Packing & Marketing
• Packing Methods
• Factors Affecting Choice of Packing
• Dangerous Goods
• Conclusion

International Transport Modes

• Freight Forwarders
• The Services of the Forwarder
• Sea Freight Services
• Charter Party
• Types of Sea Freight Services
• Road Freight
• Rail Freight
• Air Freight
• Groupage
• Express Operations
• Selection of Transport Mode
• Carrier Selection
• Freight Calculation
• Total Distribution Cost

International Transport Documentation

• An Overview of Export Documentation
• The Transport Conventions
• The Bill of Lading
• Types of Bills of Lading
• Waybills
• Air Waybill
• Road Waybill
• Rail Waybill
• Sea Waybill

International Customs Controls

• An Overview of Customs Controls
• Export
• Import
• Transit
• The European Community
• Union
• Export Procedures
• SAD Summary
• CHIEF
• Export Declarations Summary
• Why Transit Controls?
• Transport Internationaux Routiers
• TIR TABAC Carnets
• Community Transit System
• The Single Market
• Summary
• Community Imports
• Import Controls
• Non-Tariff Barriers
• The Export Invoice
• Customs Management

Risk Management

• Physical Risk
• Credit Risk
• Exchange Risk
• Cargo (Marine) Insurance
• Principles of Insurance
• Credit Insurance
• Exchange Risk

Methods of Payment

• Choosing Terms & Methods of Payment
• Open Account
• Bills of Exchange (Drafts)
• Documentary Letter of Credit (L/C)
• Documentary Requirements
• Doctrine of Strict Compliance
• Avoiding Rejection
• Types of Letters of Credit
• Cash in Advance or With Order
• Factors
• Countertrade

The Future

• One-Run Systems
• Computer Systems
• Electronic Data Interchange (EDI)
• The Single European Market
• Barrier to Trade
• The Channel Tunnel

Learning Outcomes for the Unit

At the end of this Unit, students will be able to:

1. Discuss characteristics of good and bad markets
2. Discuss considerations in choice of packaging
3. Discuss the function and use of a range of international transport documentation
4. Discuss the role and functions of customs controls
5. Discuss relative merits of a range of payment methods

Learning and teaching methods/strategies used to enable the achievement of learning outcomes:

Learning takes place on a number of levels through lectures, class discussion including problem review and analysis. Formal lectures provide a foundation of information on which the student builds through directed learning and self managed learning outside of the class. The students are actively encouraged to form study groups to discuss course material which fosters a greater depth learning experience.

Assessment methods which enable student to demonstrate the learning outcomes for the Unit:

3 Hour Examination 100%

Indicative Reading for this Unit:

Main Text:
Principles of International Physical Distribution - Jim Sherlock (Blackwell Publishing)

Alternative Text and Further Reading:
Economic Geography - H Robinson (Pitman)
Understanding the Freight Business - D E Downs (Micor)
Export Practice & Management - Alan Branch (Thomson Business Press)

Guideline for Teaching and Learning Time (10 hrs per credit)

50 hours Lectures / Seminars / Tutorials / Workshops:
Tutorial support includes feedback on assignments and may vary by college according to local needs and wishes.

50 hours Directed learning:
Advance reading and preparation / Class preparation / Background reading / Group study / Portfolio / Diary etc

100 hours Self managed learning:
Working through the course text and completing assignments as required will take up the bulk of the learning time. In addition students are expected to engage with the tutor and other students and to undertake further reading using the web and/or libraries.