question archive Domestic logistics operations are the process of moving goods from a supplier to a distributor and finally to a consumer
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Domestic logistics operations are the process of moving goods from a supplier to a distributor and finally to a consumer. Purely domestic stays within one nation, meaning to say that it does not pass any border lines thus change in international law. One challenge in domestic logistics is its need to comply with rules enforced by federal, state, and municipal agencies of a nation. Global logistics systems, on the other hand, need to transport goods on a range of national, political, paperwork, and the uncertainty in demand due to distance and diversity when exporting and importing. It has to assess global sourcing and compliance such as customs. In the aviation sector, the differences come in terms of trade-off time and cost. First, integrated express carriers excel in domestic air freight. There is a higher possibility of overnight or time-definite delivery to any place in the nation. Ground transportation, such as trucks, faces ground traffic in a concentrated area. Another difference is that domestic air freight is much simpler than international logistics. Additionally, freight forwarders are usually not required due to the shorter distance it requires to fly. The first is licensing and franchising. Governing agencies have established rules which can be seen by the airline as barriers in the targeted country. The high cost of licensing is an important factor to look at as the airline can be required to pay monthly or annually. There is a possible large cultural difference which can include work ethics largely affecting the productivity of the airline. Lastly, the licensee has limited ability in becoming a future competitor. The local government of the country would want to support their own businesses which may be an additional challenge for the airline. Another factor to consider is storage requirements. Aircraft parts and the aircraft itself have specific needs in terms of space or size and the environment it is stored. There should also be an open space around it for possible expansion. Last but not the least, the cost of utilities, manpower, and supply chain should be optimal for the airline. All these are some of the factors to consider that can affect the cost of operations thus the airline's profits.