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The concept of channels has long been used to
analyse and understand the functions of domestic
marketing and distribution. The concept is carried
further and used as an aid in understanding
international logistics. Three channels are
discussed: the international transaction and
payment channel; the international distribution
channel (through which the goods physically
move); and the documentation/communications
channel. Third parties or middlemen frequently
appear in channels to facilitate their operations;
they are mentioned briefly as are constraints on
the smooth, uninterrupted flows through channels.

In an earlier article Gray and Davies used the expression "international logistics" to mean a system in which documentation flows are as much a part of the main logistical flow as flows of product. Here the international logistics concept is formally presented, and it is argued that the current conceptual framework for logistics is more appropriate to national distribution.

In an earlier paper, Gray and Davies used the expression "international logistics" to mean a system in which documentation flows are as much a part of the main logistical flow as flows of product. In this paper, the international logistics concept is formally presented. It is argued that the current conceptual framework for logistics is more appropriate to national distribution.

Analyses and justifies the need for information systems examining a
number of applications from the marketplace. The logistics pipeline has
become global in character and has become more complex too. Success in
such a logistics network, as demonstrated by leading edge companies,
involves close co‐ordination across various functions, countries and
cultures. Experts have predicted the widespread use of logistics
information systems. Suggests a framework for an international logistics
information system (ILIS) for a global company.

In general, distribution costs fall into two discrete areas:
staff/administration costs, i.e. those cost centres associated with
supporting the line distribution functions; and line/operational costs,
i.e. those cost centres dealing with the functional areas in a logistics
operation. Identification of these costs is essential if a manager is to
manage his logistics operation correctly. Planning for budgets, the
development of those plans and the setting of standards to judge
performance are based on tracking these costs. The relationships between
these cost groups have to be identified and functional accounts set up
to keep track of them.

One‐stop shopping for logistics services has been a popular concept
in theory, but so far has not been very successful in practice. Reviews
the theoretical basis for the concept and reports the findings of a
shipper‐carrier comparison study about one‐stop shopping expectations
for international logistics services. Shows that international shippers
located in the USA rate the expected effects of one‐stop shopping as
positive. Global carrier managers appear to be in tune with these
shippers, although they tend to be somewhat less optimistic about the
effects of one‐stop shopping. Certain shipper characteristics appear
indicative of shipper enthusiasm for adopting the one‐stop shopping
concept. Formulates implications of these findings for global carriers.

The smooth operation of a logistics system in an international
environment requires careful planning on the
part of the firm. All aspects have to be planned for
and every possible contingency examined. Once the
shipment leaves the shipper′s dock it is out of his control
until it arrives at the consignee′s location. International
logistics systems work best when all the possible
interfaces are planned for. One of the most important
areas is packaging. It is the package that will determine
whether the product arrives at a customer′s location
in proper condition. It is the package that will give the
transportation company the information it needs to
move the product to the proper customer location.

Major changes are already under way in the international distribution operations of many companies, with even more broad‐based ones likely in the future. The recent deregulation of the US ocean liner companies will create new opportunities for international shippers to redesign existing distribution channels in order to reduce order cycle days and shipment costs. Further, as the United States continues to shift towards a technology and service‐based economy—implying that it will produce fewer goods domestically and buy more from abroad—it is clear that for many firms international logistics will become a more important part of the physical distribution function before the end of the 1980s.