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ENGLISH
FOR STUDENTS OF LOGISTICS
Минск
Изд-во МИУ
2015
Авторы-составители:
Рецензенты:
Предисловие
Содержание учебного материала
Содержание итогового экзамена
Unit 1“LOGISTICS”
Unit 2 “SUPPLY CHAIN”
Unit 3 “TRANSPORTATION”
Unit 4 “INVENTORY AND WAREHOUSING”
Unit 5 “LOGISTICS SERVICES”
Unit 6 “INTERNATIONAL LOGISTICS”
Unit 7 “SHIPPING GOODS”
Unit 8 “INTERNATIONAL COMMERCIAL TERMS”
Unit 9 “DOCUMENTATION”
Unit 10 “TERMS OF PAYMENT”
Управляемая самостоятельная работа студентов
Литература
ПРЕДИСЛОВИЕ
LOGISTICS
Topical Vocabulary
WORD STUDY
Ex. 1. Form derivatives from the following verbs. Consult a dictionary and translate the
words.
to access to evolve
to achieve to identify
to consume to execute
to distribute to procure
to emerge to store
to establish to supply
Ex. 2. Form all possible word-combinations using the words of both columns and, if
necessary, given prepositions. Translate them into Russian.
A.
1. accomplishment a) chain
2. consumption b) transport
3. consequence c) flow
4. efficiency d) goods
5. execution of e) project
6. freight f) operation
7. flow g) resources
8. logistics h) crisis
9. storage i) production
10. supply j) support
B.
1. to access a) payment
2. to achieve b) customer requirements
3. to comprise c) all the components
4. to conform d) objectives
5. to demand to e) information
6. to entail f) the supply of equipment
7. to evaluate g) costs
8. to implement h) expenses
9. to incur i) data
10. to refer j) plan
Ex. 3. Match the adjectives listed below with the definitions that follow.
a. accessible b. efficient c. extensive d. fragile e. overall f. rural
g. secure h. sustained i. urban j. logistic
Ex. 4. Complete the following sentences with the appropriate words from the list below:
1. Logistics refers to the efficient transport and ….. throughout the supply chain.
2. Importance of …. increased along with increase of geographical distance between the
production point and … .
3. No business project could be completed without strong …. behind it.
4. The challenge lies in reducing freight transport's …. on the natural and social habitats.
5. Initially raw material and finished products were moved on a small distance but it has
changed with progress in …. .
6. The complexity of a …. generally depends on the number of firms involved.
7. The global …. has become increasingly complex and interconnected.
READING ACTIVITIES
Read the text, translate it into Russian and do the tasks below.
LOGISTICS
"Logistics means having the right thing, at the right place, at the right time."
to be well aware – хорошо знать;
residence centres – места проживания;
supplies to troops – снабжение войск;
fossil fuel – ископаемое топливо;
regarding the environmental and social dimensions – что касается природного и социального
аспекта;
natural and social habitats – природная и социальная среда обитания.
As any businessperson will no doubt be well aware already, logistics is central to the function
of commerce. Without it, the wheels of business simply wouldn’t turn. In short, logistics refers to
the efficient transport and storage of goods throughout the supply chain.
The term of logistics is comparatively new but the action has existed since the beginning of
civilization. Initially raw material and finished products were moved on a small distance but it
has changed with progress in transportation. Population started to move from rural to urban
zones. People stopped living near production centres and production stopped taking place near
residence centres. Importance of logistics increased along with increase of geographical distance
between the production point and consumption point.
The term has military origins and was originally used to refer to the secure supply of
equipment and supplies to troops, but since the 1950s it has increasingly been used in reference
to business. Decisive factor has appeared recently. The business scene has changed over the past
20 years. The globalization, the free market and the competition has demanded that the clients
get the right material, at the right time and in the right condition but at the lowest cost. The
global supply chain has become increasingly complex and interconnected. As the global
economy continues to evolve in this direction today, logistics is going to play an even more
central role over the coming years.
In short, no business project could be completed without strong logistics support behind it.
Even the smallest businesses have to find suppliers, which means they have to consider logistics.
Of course, the complexity of a logistics operation generally depends on the number of firms
involved, the nature of the supply chain and the distance. Larger businesses which specialize in a
number of different areas will often have a more extensive logistics operation of their own.
However large or small your business, logistics can help you save money by improving
efficiency. Supply chains are often fragile and complex, comprised of a large number of
interdependent components. Logistics can help you make sense of the various processes that
comprise the supply chain, right from the start to the end. Put simply, your organization can’t
afford to do without it.
What is logistics? Logistics is planning, execution, and control of the procurement, movement,
and stationing of personnel, material, and other resources to achieve the objectives of a
campaign, plan, project, or strategy. In other words logistics is the overall management of the
way in which all kinds of resources are obtained, stored and moved to the locations where they
are required. It may also be defined as the ‘management of inventory in motion and at rest’.
Logistics management entails the following: to identify potential suppliers and distributors; to
evaluate how accessible and effective they are; to establish relationships and to sign contracts
with the companies who offer the best combination of price and service.
Logistics has a big importance in business today. Success of marketing, manufacturing and
project accomplishment is dependent on logistics support.
Logistics has also become an industry in its own right, enjoying sustained growth over the past
years. With ever increasing volumes in freight transport, logistics needs to find solutions to the
emerging consequences of this growth. In economic terms, these relate to the costs incurred
through congestion, labour shortages and to the dependency on fossil fuels. Regarding the
environmental and social dimensions the challenge lies in reducing freight transport's negative
impacts on the natural and social habitats. Logistics service providers need to help develop
solutions to these issues.
Ex. 1. Find in the text the English equivalents to the following words and phrases.
1. сложность логистической деятельности;
2. ни один коммерческий проект;
3. по самой низкой цене;
4. по отношению к коммерческой деятельности;
5. функционирование торговли;
6. поставщики логистических услуг;
7. расходы, вызванные транспортными перегрузками;
8. полноправная отрасль промышленности;
9. наилучшее соотношение цены и качества услуги;
10. сырье и готовые изделия;
11. повышая результативность;
12. расстановка кадров, размещение материалов и других ресурсов;
13. место потребления (использования);
14. общее руководство;
15. возникающие последствия;
16. в движении и в состоянии покоя.
Ex. 2. Translate the words and phrases in brackets into English. Consult the text.
1. (Термин «логистика») is comparatively new but the action has existed since the
beginning of civilization.
2. Population started to move (из сельских в городские районы).
3. (Важность логистики) increased along with increase of geographical distance between
(местом производства) and consumption point.
4. The term has military origins and was originally used to refer to the (надежной поставке
оборудования) and supplies to troops.
5. Even the smallest businesses (вынуждены искать поставщиков), which means they
have to consider logistics.
6. Logistics can help you (разобраться в разнообразных процессах) that comprise the
supply chain, right from the start to the end.
7. Logistics management entails the following: to identify potential suppliers and
distributors; to evaluate (насколько они доступны и успешны); to establish
relationships and (подписать контракты с компаниями) who offer the best combination
of price and service.
8. Success of (маркетинга, производства и выполнение проекта) is dependent on
logistics support.
9. With ever increasing (объемом грузоперевозок), logistics needs to find solutions to the
(возникающих последствий этого роста).
10. The challenge lies in reducing (негативных последствий грузоперевозок) on the
natural and social habitats.
Ex. 3. Say if these sentences are true or false according to the text.
1. Logistics is central to the function of commerce. ___
2. Initially raw material and finished products were moved on a large distance. ___
3. The term has business origins and was originally used to refer to the secure supply of
equipment and supplies to enterprises. ___
4. The business scene has changed over the past 20 years. ___
5. No business project could be completed without strong logistics support behind it. ___
6. Small businesses don’t have to find suppliers, and they don’t consider logistics. ___
7. Supply chains are often stable and simple, comprised of a large number of independent
components. ___
8. Logistics has become an industry in its own right. ___
Ex.1. Make a list of all the different areas of logistics you can think of by completing the
diagram below.
Ex.2. Five people give their definition of logistics. Complete the sentences using the words
from the box.
provide storage support distribution delivery maintenance
1. Logistics means that you manage the procurement and movement of goods and the
_____________________ of inventory.
2. It means the ______________________ of goods the customer needs at the right time, in the
right place, and of the right quality.
3. My definition of logistics is this: it’s to plan, organize, and manage operations that
_________________________ services and goods.
4. Logistics – that’s the purchasing, maintenance, ____________________, and replacement of
material and staff.
5. Logistics is the planning and _____________________ of operations such as warehousing,
inventory, transport, procurement, supply, and _______________________.
Listen to the recording and check your answers. Which of the definitions is the most
precise in your opinion?
Ex. 3. Complete the following table using the words from exercise 2.
Verb Noun
1 to provide
2 storage
3 to support
4 delivery
5 distribution
6 to maintain
7 transportation
8 purchasing
Ex. 4. Complete the sentences with the correct form of the words from the table.
1. In my job I oversee the _____________________ of vehicles and machinery.
2. Do they also ______________________ parcels and packages on Sundays?
3. Goods are normally bought in the _____________________ department.
4. We ________________________ a 24-hour delivery service.
5. This company only _____________________ goods by road.
6. We _____________________ all our goods in the warehouse.
Ex. 6. Listen to three people describing their jobs in logistics: a warehouse manager, a
freight forwarder, and a shipping operations manager. Match each job to the correct
person.
Vocabulary:
Person 1:
To deal with smth – заниматься чем-л
To negotiate – вести переговоры
To make booking reservations – бронировать, заказывать заранее
To consolidate - объединять
To arrange – организовывать
Person 2:
To be responsible for smth – отвечать за что-л
To make sure – убедиться
To load / unload – загрузить / разгрузить
To keep an eye on smth – присматривать за чем-л
To estimate – оценивать
Person 3:
To retrieve – извлекать
To liaise – поддерживать связь
To ensure – обеспечивать, гарантировать
Person 1
1. My job is to ______________________ the transport of goods either by sea, air, road, or rail.
2. An important part of the job is _______________________ with customer requests about the
most suitable mode of transport.
3. My responsibilities also include _______________________ good shipping rates with
shipping lines and transport companies.
4. I ______________________ customs clearance on behalf of my clients.
Person 2
5. In my job I have to ______________________ that the cargo is not damaged onboard the ship
or while loading or unloading.
6. I _____________________ customers on shipping rates and prepare quotations for our sales
office.
Person 3
7. Another part of my job is to ______________________ with departments such as transport
and production.
8. Apart from that, I ______________________ that vehicles, machines, and any kind of
equipment are maintained to a high level.
Ex. 8. Match the verbs (1-8) with the activities (a-h) to make phrases from the recordings.
Then listen again to check if necessary.
1. book
2. consolidate
3. deal
4. keep
5. make
6. use
7. check
8. take care
a. a number of shipments under one bill of lading
b. booking reservations
c. that health and safety standards are maintained
d. modern computer systems
e. space on a ship, train, lorry, or plane
f. where to put them in the warehouse
g. an eye on the budget
h. with all the necessary documentation
Ex. 9. Work with a partner to describe two different jobs. The phrases in the box will help
you.
TALKING ABOUT JOB RESPONSIBILITIES
Questions
What do you do?
What’s your line of work?
What does your job involve?
Describing jobs
I work for a major shipping company.
I work in the regional depot.
Describing responsibilities
I’m responsible for …
In my job I have to …
My job involves …
Remember!
You work for or at a company.
You work in an area or a department.
You are responsible for or in charge of something.
Here are some useful verbs for describing key job responsibilities:
to advise to oversee
to prepare to provide or supply
to train to ensure
to manage to review
to estimate to liaise with
to monitor to organize
to carry out
Partner A
Store Supervisor
Responsible for store and inventory.
Make purchase requests for all stocked items that are at minimum.
Receive and process incoming orders.
Ensure materials received are in good condition.
Inform customers of collection or delivery dates.
Check invoices against orders.
Partner B
Distribution Manager
Extensive knowledge of current tariffs, rates, and import and export regulations.
Monitor shipping operations.
Hire and train staff.
Develop business plans.
Assess warehouse operations and provide feedback.
Ensure the budget is not overspent.
UNIT 2
SUPPLY CHAIN
Topical Vocabulary
WORD STUDY
READING ACTIVITIES
Read the text, translate it into Russian and do the tasks below.
SUPPLY CHAIN
Ex. 1. Translate the following words and phrases from the text into English.
1. прямо или косвенно;
2. ни один производитель;
3. занимающийся и/или распределяющий;
4. доставить товар или услугу;
5. самая оптимальная логистическая цепочка;
6. обычно имеет результатом понижение затрат;
7. в рамках компании;
8. меняться в зависимости от размера предприятия;
9. будут привлечены производственные мощности;
10. необходимые сырьевые материалы;
11. основываясь на производственном плане;
12. самый эффективный способ;
13. в определенный день или до него.
Ex. 2. Make up phrases, paying attention to the prepositions. Translate the phrases.
A.
1. elements a) the business
2. the chain b) the company
3. a number c) the supply chain
4. the sales department of d) entities
5. the complexity e) items
6. a list f) products
7. a network g) events
8. the size h) raw materials
9. the movement i) the supply chain
B.
1. are linked
2. are received a) the customer
3. specified by b) the movement of products
4. activated c) the production department
5. are required d) the customer’s sales order
6. ordered
Ex. 4. Match the entities of the supply chain with their activities.
1. Vendors a) convert the material into products.
2. Producers b) bring the product to the ultimate user.
3. Warehouses c) supply raw material.
4. Distribution centres d) store materials or products.
5. Retailers e) deliver to the retailers.
Ex. 5. Fill in the right element of the supply chain into the following sentences. Then put
the steps of the supply chain in the order.
a. customer b. the planning department c. the purchasing department
d. the warehouse e. the production department f. the shipping department
1. The raw materials received from the suppliers are moved into … .
2. The … start the chain of events when they decide to purchase a product.
3. At … the finished products ordered by the customer are manufactured using the raw
materials purchased from suppliers.
4. When the finished products arrive in the warehouse, … determines the most efficient
method to ship the products.
5. … sends purchase orders to selected suppliers to deliver the necessary raw materials.
6. … will create a production plan to produce the products to fulfill the customer’s orders.
Supplementary reading
Supply chain management (SCM) is the management of the flow of goods. It includes the
movement and storage of raw materials, work-in-process inventory, and finished goods from
point of origin to point of consumption. Interconnected or interlinked networks, channels and
node businesses are involved in the provision of products and services required by end customers
in a supply chain. Supply chain management has been defined as the "design, planning,
execution, control, and monitoring of supply chain activities with the objective of creating net
value, building a competitive infrastructure, leveraging worldwide logistics, synchronizing
supply with demand and measuring performance globally."
SCM draws heavily from the areas of operations management, logistics, procurement, and
information technology, and strives for an integrated approach.
To ensure that the supply chain is operating as efficient as possible and generating the highest
level of customer satisfaction at the lowest cost, companies have adopted Supply Chain
Management processes and associated technology. Supply Chain Management has three levels
of activities that different parts of the company will focus on: strategic; tactical; and operational.
Strategic: At this level, company management will be looking to high level strategic decisions
concerning the whole organization, such as the size and location of manufacturing sites,
partnerships with suppliers, products to be manufactured and sales markets.
Tactical: Tactical decisions focus on adopting measures that will produce cost benefits such as
using industry best practices, developing a purchasing strategy with favored suppliers, working
with logistics companies to develop cost effect transportation and developing warehouse
strategies to reduce the cost of storing inventory.
Operational: Decisions at this level are made each day in businesses that affect how the products
move along the supply chain. Operational decisions involve making schedule changes to
production, purchasing agreements with suppliers, taking orders from customers and moving
products in the warehouse.
Supply Chain Management Technology
If a company expects to achieve benefits from their supply chain management process, they will
require some level of investment in technology. The backbone for many large companies has
been the vastly expensive Enterprise Resource Planning (ERP) suites, such as SAP and Oracle.
These enterprise software implementations will encompass a company’s entire supply chain,
from purchasing of raw materials to warranty service of items sold. The complexity of these
applications does require a significant cost, not only a monetary cost, but the time and resources
required to successfully implement an enterprise wide solution. Buy-in by senior management
and adequate training of personnel is the key to the success of the implementation. There are
now many ERP solutions to choose from and it is important to select one which fits the overall
needs of a company’s supply chain.
Since the wide adoption of Internet technologies, all businesses can take advantage of Web-
based software and Internet communications. Instant communication between vendors and
customers allows for timely updates of information, which is the key in the management of the
supply chain.
UNIT 3
TRANSPORTATION
Topical Vocabulary
Nouns and noun phrases
wagon – 1) вагон (trailer); 2) фургон, фура (van); 3) повозка, телега (cart)
freight wagon – грузовой вагон
vessel – судно, корабль
engine – двигатель, мотор
engine-powered – моторный
engineless - безмоторный
jet engine – реактивный двигатель
truck – грузовой автомобиль
cargo – груз
cargo ship – грузовое судно
fuel – топливо
refueling - дозаправка
pipe – труба
pipeline – трубопровод
liquid – жидкость
gas – газ
natural gas – природный газ
petroleum – нефтепродукты
pack animal (beast of burden) – вьючное животное
cart – ручная тележка, тачка
pedicab – рикша (трехколесный пассажирский велосипед)
raft – плот, паром
boat – лодка, судно
rowing boat – гребное судно
sailing boat – парусное судно
tugboat – буксирное судно
barge – баржа
dugout – челнок
glider – планер, дельтаплан
hot-air balloon – воздушный шар, аэростат
helicopter – вертолет
traffic – дорожное движение
traffic safety – безопасность дорожного движения
coal – уголь
ore – руда
iron ore – железная руда
refinery – перерабатывающий завод
depot – хранилище, склад
distribution depot – распределительный склад
crate – ящик, контейнер
Verbs and word-combinations with verbs
to haul – везти, перевозить, транспортировать
to haul loads – перевозить грузы
to provide – обеспечивать, предоставлять
to maintain – поддерживать, обслуживать, содержать в исправности
to push – толкать
to pull – тянуть
to tow – тащить, буксировать (drag, tag)
to tow barges – буксировать баржи
to limit – ограничивать
Ex. 1. Form word-combinations using the words of both columns. Translate them into
Russian.
1. Jet a) depot
2. Hot-air b) safety
3. Pack c) gas
4. Sailing d) wagon
5. Iron e) engine
6. Distribution f) animal
7. Traffic g) balloon
8. Cargo h) ship
9. Freight i) ore
10. Natural j) boat
Ex. 2. Match the verbs with their definitions or synonyms. Then use them in the correct
forms in the sentences below.
1. To haul a) to restrict, to confine
2. To push b) to carry in a vehicle, to transport
3. To limit c) to keep in a good condition, to support
4. To maintain d) to pull a vehicle by a rope or other device
5. To tow e) to use pressure for the purpose of moving
something forward
1.In order to _______________ an automobile properly, you must have the oil changed every
3,000 miles.
2.The car was _________________ to the nearest service station.
3.He ________________ me, and I fell into the water.
4.They rented a truck to _______________ all of their belongings to a new house.
5.We must ____________________ our expenditures.
Read the text, translate it into Russian and answer the questions below.
TEXT 1
The History of Transportation
Transportation is the act of moving people or goods from one place to another. Fast,
dependable transportation is essential to the economy and way of life in industrially developed
countries.
Throughout most of history, transportation was extremely slow and difficult. Prehistoric people
travelled mainly on foot. They transported goods on their backs or heads or by dragging them
along the ground. About 5000 B.C., people began to use animals to haul loads. By 3000 B.C.,
wagons and sailing vessels had been invented. This enabled people to transport loads farther and
more easily than before. But the speed of transportation improved only slightly over the
centuries.
Inventors produced the first engine-powered vehicles during the late 1700s and early 1800s.
This development marked the beginning of a revolution in transportation that has continued to
the present. Today, jet airliners carry travelers nearly as fast as, or faster than, the speed of
sound. Trains, trucks, and giant cargo ships carry a steady flow of goods to buyers in almost all
parts of the world. Cars and buses provide convenient transportation for many millions of
people.
Although engine-powered transportation has benefited people in many ways, it has also created
problems. For example, it uses great quantities of fuel and so strains the world’s energy supplies.
Cars jam streets and motorways. In addition, their exhaust fumes pollute the air. Such problems
are so difficult to solve that governments have become increasingly involved in transportation.
In some countries, governments own and operate such transportation services as airlines and
railways. In other countries, almost all transportation is privately owned, and national and local
governments only provide and maintain roads and bridges.
TEXT 2
Read the text, translate it into Russian and do the tasks below.
Vocabulary
Sea bed – морское дно
Fixed route – определенный маршрут
Pump – насос
Ox – бык, вол
Log – бревно
Kinds of Transportation
There are three main kinds of transportation: (1) land, (2) water, and (3) air.
Each kind of transportation can be classified according to whether the vehicles are engine
powered or engineless. Most engine-powered vehicles have petrol, diesel, or jet engines. The
majority of engineless vehicles are powered by the muscles of human beings or animals or by
natural forces, such as the wind or flowing water.
Land transportation is the most common kind of transportation. In many cases, it is the only
suitable or available form of transportation.
Engine-powered land transportation. Buses, cars, motorcycles, snowmobiles, trains, and trucks
are the chief engine-powered land vehicles. All these vehicles except snowmobiles ride on
wheels. Pipelines are another important form of engine-powered transportation used over land
(and sometimes over the sea bed).
Cars, buses and trucks are the main modern road vehicles. Cars enable people to travel
whenever and by whatever route they choose. Buses carry passengers along fixed routes between
and within cities. Trucks can provide door-to-door freight service. Many people ride
motorcycles, mopeds, or motor scooters to and from work.
Unlike road vehicles, trains ride on tracks. As a result, trains cannot provide door-to-door
freight service like trucks or convenient connecting passenger services like buses. But trains can
haul far heavier loads than trucks can.
Pipelines provide transportation, but the pipes themselves do not move. Most pipelines are
built across land, but some span rivers or other bodies of water. Pipelines transport chiefly
liquids or gases, especially petroleum and natural gas. Engine-powered pumps force the liquid or
gas through the pipes.
Engineless land transportation. Walking is the most elementary means of transportation.
Carrying a load on one’s back or head or using animals to carry loads is also elementary.
Animals used for this purpose are called pack animals or beasts of burden. They include camels,
donkeys, elephants, horses, llamas, and oxen. People use pack animals in regions that lack
modern roads, such as deserts, mountainous areas, and jungles.
People use their muscle power to move such wheeled vehicles as carts, bicycles, and pedicabs. A
cart is a small box-shaped vehicle with two or four wheels and an open top. A person may either
push or pull a cart, whichever is more convenient. Bicycles are two-wheeled vehicles that the
rider powers by means of two pedals. A pedicab resembles a bicycle but has two rear wheels
instead of one. It also has a passenger carriage at the front or rear. Pedicabs are used as taxicabs
and even as school buses in some Asian countries.
Animal-drawn carts and wagons are a major means of transportation in rural areas of many
developing countries. Carts may be pulled by dogs, donkeys, horses, or oxen. Wagons are large
four-wheeled carts that can carry heavy loads.
Water transportation depends mainly on boats, ships and rafts. Any small watercraft is classed
as a boat. People use boats chiefly on rivers, canals, and lakes. A ship is a larger vessel sturdy
enough for ocean travel. A raft is a floating platform constructed of such materials as logs.
Engine-powered water transportation. Nearly all ships and many boats are powered by
engines. Most ships specialize in carrying cargo. Cargo ships travel mainly on ocean waters or
on bodies of water linked to the ocean, such as the Mediterranean Sea and the Baltic Sea. Some
engine-powered boats, especially tugboats, are used in hauling freight. Tugboats have powerful
engines that enable them to tow heavily loaded barges. Barges are actually large rafts. Most
barges must be pushed or towed. Other have engines and so move under their own power.
Barges are used mainly to haul freight along inland waterways. In general, ships and boats are
rather slow engine-powered vehicles.
Engineless water transportation. Engineless water vehicles include dugouts, canoes, rowing
boats, sailing boats, and rafts. Sailing boats and rowing boats are widely used to haul freight in
the Far East. In the tropical rainforests of Africa, Asia, and South America, many villagers use
dugouts or rafts for transportation along the rivers.
Air transportation depends almost entirely on engine-powered craft, especially airplanes.
Engineless vehicles, such as gliders and hot-air balloons, are used mainly for recreation.
Airplanes provide the world’s fastest practical means of transportation. Most private planes
and some older airliners are powered by petrol engines and driven by propellers. Nearly all
newer airliners have jet engines. Supersonic jets fly faster than the speed of sound.
Most airliners chiefly carry passengers. Even the biggest planes can carry only a fraction of the
weight that a ship or train can transport. Air freight rates are high as a result. The high cost limits
the shipment of goods by air to expensive, lightweight, or perishable cargo.
Helicopters, like airplanes, are powered by engines. But helicopters are smaller and cannot fly
as fast or as far. Helicopters therefore play a secondary role in air transportation. However, they
are used in rescue work and in fighting forest fires.
Ex. 1. Fill in the table with the kinds of vehicles given below.
train cart dugout ship helicopter pedicab bus car glider airplane
sailing boat hot-air balloon pipeline truck tugboat canoe bicycle
LAND WATER AIR
TRANSPORTATION TRANSPORTATION TRANSPORTATION
engine- engineless engine- engineless engine- engineless
powered powered powered
TEXT 3
Read the text, translate it into Russian and do the tasks below.
Vocabulary
Suburbs – окраина
Riverboat – речное судно
Ferryboat – паром для перевозки через реку
Bulk loads – насыпные грузы
Power station - электростанция
Transportation Today
Passenger transportation.
There are two main types of passenger transportation: (1) private transportation and (2) public
transportation. People who use private transportation operate their own vehicles. Those who use
public transportation pay to ride on vehicles owned and operated by private companies or the
government.
Private transportation in industrialized countries is provided mainly by cars, bicycles,
motorcycles, and private airplanes. Cars are by far the most important means of private
transportation. The biggest cities have had to build more roads to handle the increasing flow of
car traffic.
Public transportation. Any organized passenger service that is available to the general public
can be classed as public transportation. There are three main types of public transportation
service: (1) urban, (2) intercity, and (3) overseas.
Urban service. Most large urban areas provide some means of public transportation for people
who do not own a car or who prefer to avoid city driving whenever possible. Public
transportation services between cities and their suburbs are sometimes called commuter services.
Buses are the principle means of public transportation in most of the world’s cities. In addition,
many large cities have a railway network, and about 90 cities have both an above-ground railway
network and an under-ground railway system.
Intercity service is provided mainly by airplanes, buses, and trains. Riverboats and ferryboats
carry an extremely small share of intercity passengers.
Overseas service. The first overseas airlines began operations during the 1930s. But the planes
had to stop frequently during a flight for refueling. Most overseas travelers continued to go by
ship until the late 1950s, even though it took far longer to sail than to fly. Today, almost all
overseas travelers go by plane. Only one ocean liner, Britain’s Queen Elizabeth 2, still makes
transatlantic voyages.
Freight transportation.
Pipelines provide the cheapest means of transporting petroleum and natural gas. The cheapest
way to move general cargo is by water. Rail transportation costs about 3 times as much as water
transportation, and truck transportation costs about 10 times as much. Air transportation is the
most expensive way to move freight. It costs nearly 40 times as much as water transportation.
The various means of moving cargo are used for both (1) domestic freight and (2) international
freight.
Domestic freight. Most domestic freight traffic involves the transport of cargo between cities
within a country. The cargo is carried by airplanes, barges, pipelines, railways, ships, and trucks.
Trucks carry nearly all local freight. Rail freight is an efficient way of moving heavy materials,
such as coal. Freight trains carry bulk loads of ore and similar materials between ports and
factories; coal from mines to power stations; oil products from refineries to distribution depots;
and general goods of all kinds.
In many cases, a particular freight shipment must be switched from one type of carrier to one
or more other types to reach its destination. For example, many shipments travel by train, barge,
and truck on their way to the buyer. The movement of freight by more than one method is called
intermodal transport.
A type of intermodal transport known as containerization has become increasingly common
since the mid-1900s. Freight is packed into big crates called containers. Containerization reduces
shipping costs, speeds deliveries, and cuts losses due to breakage. Some domestic freight is
containerized. But the method is used mainly in international trade.
International freight is transported mainly by ships. Many of today’s merchant ships are
designed to carry containers of a particular kind of cargo, such as petroleum, grain, or iron ore.
Some international freight moves by road, rail, pipeline, or airplane. European and African
countries, especially, depend on these methods in their trade with one another.
Problems of modern transportation include (1) traffic safety, (2) declining fuel reserves, (3)
environmental problems, and (4) inadequate public transportation.
Ex. 1. Translate the following words and phrases from the text into English.
1. Пассажирский транспорт;
2. Частные компании;
3. Поток автомобильного движения;
4. Междугородний общественный транспорт;
5. Избегать вождения в городе;
6. Железнодорожная сеть;
7. Средство транспортировки;
8. Самый дорогостоящий способ;
9. Груз местного назначения;
10. Снижает транспортные расходы;
11. Торговые судна;
12. Снижение запасов топлива.
Ex. 4. Say if these sentences are true or false according to the text.
1. People who use private transportation pay to ride on vehicles owned by the
government.___
2. Many large cities have a railway network in addition to buses. ___
3. Nowadays, the majority of overseas travelers go by ship. ___
4. Pipelines provide transportation of petroleum and natural gas. ___
5. Water transportation is the most expensive means of freight transportation. ___
6. Rail freight is an efficient way of transporting heavy materials. ___
7. The method of containerization is used mainly in domestic freight. ___
8. International freight is transported chiefly by air. ___
Making Enquiries
When asking for information we always use polite language. We often start with a more general
request for information before we ask more specific questions. Indirect questions such as Could
you tell me how much it would cost? are more polite than direct questions e.g. How much would
it cost?
I’d like to ask/enquire about …
I’m calling about … (on the telephone)
I’m writing about/with regard to … (in an email or letter)
Could you tell me how much/many/long/often …?
Offering Alternatives
Sometimes you need to provide the customer with several alternatives before a decision can be
made.
Another option would be to …
Of course it would also be possible to … (instead).
Alternatively, you/we could …
Ex. 2. Here are some more phrases. Sort them under the correct headings.
a. meat b. steel pipes c. crude oil d. fresh produce e. industrial boilers f. seafood
g. alcohol h. dairy products i. tractors j. chilled or frozen foodstuffs k. harmful chemicals
Ex. 5. In pairs, practice making enquiries and giving advice on transport options for the
different kinds of cargo from ex.4. Make use of the phrases given above.
if you like * recommend * an alternative * could you * how much * also consider
calling about * would be * more suitable * suggest that
Ex. 8. Make a list of all the different factors that would influence your choice of transport
method for a shipment. Complete the diagram below.
Compare your diagram with your partner’s one. Discuss which factors are important and
why.
Ex. 9. Two employees of a forwarding company are comparing transport modes for a
shipment from western China to Shanghai. Listen and correct the information in the table.
Ex. 10. Complete the sentences with the correct form of the words in brackets. Then listen
again to check.
1. How long would it take by barge? – Normally about six days, but it often takes ____________
(long) if the weather’s bad.
2. It’s cheap – it’s actually ______________ (cheap) of all the transport options.
3. It would only take four days to ship by truck, but the cost would be about 50% ____________
(high) than by barge.
4. Rail would definitely be _____________ (fast) than the truck option if we use the express
service that takes three days.
5. But it would also be ________________ (expensive) than shipping by road – transport costs
are about 40% higher.
6. And then perhaps we’d have to use the standard train, which is much _____________ (slow).
Ex. 12. Read the text and choose the best title for each paragraph (A-D).
A ___
A freight village is a complex set of facilities where all the activities relating to transport,
logistics and distribution of goods are carried out on a commercial basis by various operators,
who can either be the owners or the tenants of the spaces (warehouses, storage areas, offices, car
parks etc.). It must be equipped with public facilities and, if possible, include public services for
the staff and users. Other names for a freight village are: logistics park/centre, transport centre or
logistics hub.
B ___
A freight village enables change from one given transport mode to another (modal shift) through
a set of technologies that facilitate the transfer. It is served by several transport modes (road, rail,
deep sea, inland waterway, air) to encourage intermodal transport for the handling of goods. The
most common examples of modal shifts are: train (rail) to lorry (road); barge (inland waterway)
to train or lorry; airplane (air) to lorry.
C ___
A freight village requires different activities such as warehousing, economic activities, support
activities, unified management. The warehouse is the infrastructure where the transport operator
mostly performs his business. This activity may include the division of the goods into smaller
quantities for a more functional distribution. Logistics hubs need active distribution centres and
several industrial activities in the neighbourhood that can exploit the modal shift facilities within
the village. Support facilities include support services like lorry rest areas, office space,
restaurants, banking, shops and hotels. Unified Management requires that the village is often
under the management of a single entity.
D ___
A freight village is the right solution to satisfy the increasing requirements of a complex business
based on transport. In order to work well it is imperative that the village is run by a single body,
either public or private.
Ex. 13. Read the text once again and write T (True), F (False) or DS (Doesn’t say).
1. A freight village is also called a logistics hub. _____
2. A modal shift train to airplane is not possible. _____
3. In the warehouse goods are usually assembled in bigger quantities. _____
4. In a freight village there are never banks or restaurants. _____
5. A freight village is usually run by a single person. _____
Ex. 14. Match the following modal transport shifts with the right pictures.
Topical Vocabulary
Ex. 1. Form word-combinations using the words from both columns. Translate them into
Russian.
1. Product a. interval
2. Replenishment b. space
3. Significant c. product
4. Fixed d. deterioration
5. Stock e. order
6. Outdated f. drawback
7. Storage g. level
Ex. 2. Match the adjectives listed below with the definitions that follow.
1. Inventory a. quantity
2. Various b. obsolete
3. Replenishment c. decide
4. Deterioration d. disadvantage
5. Suitable e. important
6. Outdated f. damage
7. Amount g. stock
8. Determine h. perform
9. Significant i. refilling
10. Drawback j. different
11. Fulfill k. appropriate
READING ACTIVITIES
Read the text, translate it into Russian and do the tasks below.
TEXT 1
INVENTORY MANAGEMENT
Decisions regarding the amount of inventory that a company should hold and its location
within a company’s logistics network are crucial in order to meet customer service requirements
and expectations.
There are a number of reasons why a company might choose or need to hold stocks of different
products. The most important reason for holding stocks is to provide a buffer between supply
and demand.
There are many ways in which the need to hold stocks affects other logistics functions.
Inventory costs are one of the major logistics costs for a large number of manufacturing and
retail companies. It is essential for effective planning that the various costs associated with
inventory are minimized.
The aim of an effective inventory replenishment system is to maintain a suitable balance
between the cost of holding stocks and the particular service requirements for customers. The
need for this balance can be illustrated by considering the disadvantages of low stock levels and
high stock levels. The disadvantages of low stock levels are that customers’ orders cannot be
immediately fulfilled, which may lead to the loss of both existing and future business, and that
goods have to be ordered very frequently. High stock levels have a major disadvantage because
capital is tied up that might be better invested elsewhere. Also, there is the risk of product
deterioration (e.g. food and drinks) and of products becoming outdated or obsolete if they are
stored for long periods of time (e.g. computers, mobile phones and fashion goods). A final
disadvantage is the expense of providing additional storage space.
Inventory replenishment systems are designed to minimize the effects of these high/low stock
level disadvantages by identifying the most appropriate amount of inventory that should be held
for different products stocked. There is a variety of systems, but the two most popular ones are
the periodic review (or fixed interval) system and the fixed point (or continuous) reorder systems.
In the periodic review system the stock level of the product is examined at regular intervals and,
depending on the quantity in stock, a replenishment order is placed. Thus, the order size will
vary each time a new order is placed. For the fixed point reorder system, a specific stock level is
determined, at which point a replenishment order will be placed. The same quantity of the
product is reordered when that stock level is reached. Thus, for this system it is the time when
the order is placed that varies. These systems, and variations of them, have been used for many
years, and they generally work quite well. They have one significant drawback, however, which
is that they can create unnecessarily high or low stock levels, especially when demand changes,
which can be very difficult to forecast.
Ex. 1. Translate the following words and phrases from the text into English.
1. Выполнять требования обслуживания клиентов -
2. Потребность хранить запасы -
3. Обеспечить резервный запас -
4. Основные логистические затраты -
5. Промышленные и торговые компании -
6. Система пополнения товарных запасов -
7. Поддерживать оптимальный баланс -
8. Риск порчи продукта -
9. Дополнительная складская площадь -
10. Заказ на пополнение запасов -
11. Существенный недостаток -
12. Трудно предугадать -
Ex. 2. Match the words and word combination listed below with their Russian definitions.
a. replenishment b. retailer c. buffer stock d. periodic review system
e. fixed point reorder system f. inventory g. logistics costs
1. продукция, находящаяся на различных стадиях производства или распределения,
ожидающая вступления в процесс производства или продажи
2. затраты связанные с оказанием логистических услуг
3. компания, деятельность которой основана на торговле в розницу
4. запасы, предназначенные для непрерывного обеспечения материалами или товарами
производственного или торгового процесса в случае различных непредвиденных
обстоятельств
5. восстановление уровня запасов
6. система управления запасами, в которой пополнения запасов происходят через
фиксированные равные временные интервалы, при этом максимальный уровень запасов
остается постоянным, а размер заказа варьируется
7. система управления запасами, в которой товар заказывается, как только запас товара
достигнет заранее определенного минимального значения, в независимости от
прошедшего промежутка времени, причем размер заказываемой партии является
величиной постоянной
Ex. 4. What are the opposites from the text of the following words?
1. low - __________________ 5. worse - _________________
2. acquisition - _______________ 6. seldom - ________________
3. wholesale - ________________ 7. modern - ________________
4. advantage - ________________ 8. easy - __________________
LISTENING PRACTICE
Vocabulary
point of sale (outlet) – торговая точка
to generate - формировать
to process data – обрабатывать данные
cash register – касса
data interchange – обмен данными
schedule – график
to cut costs – сократить расходы
error – ошибка
Lead time – время необходимое для выполнения заказа. Период времени между
размещением заказа и поставкой товара.
Ex. 1. Listen to an expert presenting an inventory management system to the managers of a
large retail store. Then say which of the statements are True or False.
1. The inventory system is called CPR. _____
2. It’s a sales-based system. _____
3. The system coordinates the flow of information and goods in the logistic chain. _____
4. Young Fashion has used the system for six years now. _____
5. Orders are electronically transferred to the warehouse. _____
6. The store has reduced transport and inventory costs by about 25 per cent. _____
Ex.2. Listen again and complete the sentences with the words from the box.
1. Today I’m going to tell you something about CRP, that means continuous _______________.
2. I’ll also explain how it can be used to lower inventory and operational costs and to shorten
product _____________________.
3. First of all, you decide what products you want to order at what ___________________ level.
4. The system will use this information at the ___________________ of sale in the retail store.
5. The leading Russian clothes ____________________ Young Fashion introduced continuous
replenishment three years ago.
6. With the new system all orders are ____________________ by computers, which process data
received from cash registers.
7. The orders are sent to the warehouse by electronic ________________________, where they
are processed.
8. And finally the goods are delivered to the different outlets according to a _______________.
9. Since the introduction of the CRP system, Young Fashion have managed to cut
_____________________ and transport costs by about 15%.
10. Moreover, errors in order ______________________ have been reduced considerably by
using scanning technology and EDI.
Ex. 3. Put the processes described in the presentation about CRP in the correct order.
a. Orders are generated based on data received from cash register.
b. Goods are delivered to the retail outlet.
c. System is activated at the point of sale.
d. Orders are sent to the warehouse.
e. Orders are processed.
f. Sales information is transferred to the CRP computer system.
TEXT 2
Read the text, translate it into Russian and do the tasks below.
Vocabulary
Plain – простой, обычный
Loading dock – погрузочная платформа
Crane – кран, манипулятор
Forklift truck – вилочный погрузчик
Due to – в связи с
Retrieval – поиск
Conveyor belt – конвейер, транспортер
Barcode – штрихкод
To track – следить
WAREHOUSING TODAY
Ex. 1. Form word-combinations using the words of both columns. Translate them into
Russian.
1. transport a. belts
2. industrial b. user
3. loading c. goods
4. forklift d. facilities
5. spare e. systems
6. finished f. areas
7. new g. trucks
8. product h. docks
9. automated i. plant
10. conveyor j. technology
11. manufacturing k. parts
12. end l. flow
LOGISTICS SERVICES
Topical Vocabulary
WORD STUDY
Ex. 1. Form nouns from the following verbs. Consult the vocabulary.
1. to outsource – 5. to clear –
2. to consolidate – 6. to ship –
3. to solve – 7. to serve –
4. to assist – 8. to consult -
Ex. 2. Form word-combinations using the words of both columns. Translate them into
Russian.
1. third a. access
2. customs b. docking
3. shipments c. capital
4. cross d. costs
5. balance e. clearance
6. free up f. delivery
7. gain g. sheet
8. value-added h. party
9. overnight i. consolidation
10. overall j. services
Read the text, translate it into Russian and do the tasks below.
TEXT 1
OUTSOURCING OF LOGISTICS SERVICES
In business, outsourcing involves the contracting out of a business process to another party.
The concept "outsourcing" came from 'outside resourcing' and it can also be viewed as any
assistance from an intermediary that is more capable of or familiar with certain practices.
Outsourcing includes both foreign and domestic contracting, and sometimes includes
offshoring (relocating a business function to another country).
Logistics outsourcing is a process that involves the use of external logistics companies (third
party) to perform part or all of a company’s logistics operations. The term "3PL" was first used
in the early 1970s. Up to that point, contracts for transportation had included only two parties,
the shipper and the carrier. When intermediaries appeared, they became the third party to the
contract, the 3PL.
The growth of 3PL companies began back in the 1980’s when businesses started to look for
new ways in which they could outsource logistics functions and concentrate on their core
business. The company that has been associated with the 3PL revolution is FedEx. The
company’s overnight delivery service changed the way in which business to business and
business to customer transactions operated. This offered businesses the opportunity of using just-
in-time techniques, which saved warehousing space and reduced overall costs. As companies
saw the benefits of outsourcing delivery and warehousing functions, the number of third party
logistics companies began to rise offering an ever increasing number of services.
By now, about 85% of organizations have already outsourced some part of their logistics
operations. The typical functions that are outsourced are these:
Domestic Transport
International Transport
Warehousing
Shipments Consolidation
Customs Clearance & Brokerage
Cross Docking
Product Labelling/Packaging
Supply Chain Consultancy
Reverse Logistics
Order Entry & Processing
Fleet Management
etc.
Although outsourcing some logistics operations is a very common practice, it is not necessarily
the best solution for all companies. Thus, a company needs to understand why it is making the
decision to outsource.
There are many reasons why organizations outsource, such as:
Logistics is not a core function of the company and it needs to be handled more
professionally
To reduce logistics costs
To gain access to new logistics technologies
To improve customer service
To gain flexibility
To move logistics assets off the balance sheet and free up capital.
1. Cross-docking
2. Reverse logistics
3. Warehousing
4. Shipments consolidation
5. Value added services
6. Just-in-time
7. Customs clearance
8. 3PL Provider
9. Fleet management
a. The operation of combining small consignments into a large unit to fill a trailer/container.
b. Supplementary services, adding extra feature, form or function to the basic services,
available at little or no cost, to promote the primary business.
c. A company which offers services that can allow businesses to outsource part or all of
their supply chain management functions.
d. Delivery of merchandise or consignment to the next point in the supply chain just before
it is needed.
e. A logistics procedure where products from a supplier are distributed directly to a
customer or retail chain reducing the handling and storage steps in between to a
minimum.
f. The process of clearing import/export cargo through Customs (by examination of the
documentation and/or the goods themselves).
g. The process of storing goods and materials within a storage facility.
h. The job or activity of taking care of a company’s vehicles.
i. Operations related to the collecting and handling of used or damaged goods.
Ex. 2. Fill in the gaps using the given words and word combinations.
1. Organizations that implement … are able to improve customer service and reduce
environmental impact.
2. The growth of 3PL companies has been driven by the need for businesses to focus on the
… business processes.
3. Many 3PL companies offer a wide range of services including warehousing, distribution,
… order fulfillment and many others.
4. Providing … is a powerful way for logistics companies to gain a competitive advantage.
5. Chainalytics, one of the leaders in supply chain … helps its clients gain the maximum
value from their supply chains.
6. We expect our 3 PL provider to be able to offer a cost reducing ….
7. Advanced logistics is the term used when the firms make use of new logistics
technologies, e-commerce and … deliveries.
Ex. 4. Here’s a list of the possible results of outsourcing for a company. Divide them into
two columns.
Vocabulary
A drastic shift – радикальное изменение
Comprehensive solution (end-to-end solution) – кардинальное, комплексное решение
Profit margins – рентабельность, показатель прибыли
Read the following text from a logistics company magazine about new trends in third-party
logistics. Then label the paragraphs with the correct headings from the list.
1. In the past, companies used to outsource only segments of their logistics operations. ___
2. Manufacturers found out that outsourcing to 3PL providers is not efficient. ___
3. In the past few years many 3PL providers have increased their profit margins. ___
4. Customers today are demanding more complex logistics solutions. ___
5. Super-3PLs provide comprehensive solutions to logistics problems. ___
Ex. 2. Match the words from the text with the correct definition.
1. outsourcing
2. comprehensive
3. consolidation
4. requirements
5. demand
6. competition
Ex. 1. The main challenge for logistics companies is to offer various services at a
competitive price.
Listen to three logistics providers presenting their services. Complete the table.
Ex. 3. Complete the sentences with words from the box (one word is not used!). Then listen
and check your answers.
Ex. 4. Present the company’s services to your partner. Use phrases from this unit and the
table below.
Partner A
India Logistics Ltd – International Freight Forwarders
High quality international freight forwarding services from India.
Air and sea freight, distribution services, order management, customs brokerage.
Many years of experience in shipping goods quickly and cost-effectively.
Sophisticated software to prepare documents quickly and correctly.
Partner B
Baltic Logistics – Logistics Services
Offices in all three Baltic States.
Air and sea freight, warehousing and distribution services.
Integrated, flexible logistics solutions.
Team of 50 logistics specialists.
Ex. 5. Many distribution centres now offer online logistics services to their customers.
Listen to two short presentations about online logistics services. Then say which of the
statements are true or false.
Intercargo E-Shipping
1. … allows you to make price enquiries. ___
2. … you can cancel orders. ___
3. … you can download pdf documents. ___
Ex. 7. Match the beginnings of the sentences (1-6) with the endings (a-f) to make sentences
from the recording. Listen again if necessary.
SUPPLEMENTARY READING
LAYERS OF LOGISTICS
INTERNATIONAL LOGISTICS
Topical Vocabulary
WORD STUDY
1. Global sourcing
2. Industrial real estate
3. Transaction costs
4. Flagship
5. Factory floor
6. Trade barrier
1. Site a. receive
2. Implement b. distinguish
3. Output c. supervision
4. Barrier d. massive
5. Obtain e. negotiate
6. Flagship f. place
7. Extensive g. principal
8. Discern h. perform
9. Oversight i. result
10. Arrange j. obstacle
Ex. 3. Fill in the gaps using the given words and word combinations.
1. The __________________________ for the new factory has not been decided.
2. Duties and taxes are the most obvious ___________________________.
3. There are fewer opportunities for __________________________ of food since much is
bought locally.
4. Delays can increase ______________________________.
5. The retail company's store in London is their ____________________________.
6. A logistics coordinator is responsible for _________________________ of the operations
of a supply chain, such as purchasing, inventory, warehousing, and transportation.
7. The company has been criticized for the lack of safety on the ______________________.
READING ACTIVITIES
Read the text, translate it into Russian and do the tasks below.
TEXT 1
INTERNATIONAL LOGISTICS
With the recent trend toward globalization, the interest in international logistics services to
help businesses enter overseas markets is increasing.
Definition
International logistics is the process of planning, implementing, and controlling the flow and
storage of goods, services, and related information from the point of production to the point of
consumption located in a different country. In other words, it represents the process involved in
getting a product from the factory floor to the store shelf, and everything in between. It includes
the global sourcing of the product — where it’s manufactured — its transportation, the industrial
real estate sites and warehouses that hold it prior to delivery, the logistics management software
and other technology used throughout the supply chain and the third-party logistics providers
who manage the process from beginning to end.
Goals
The main targets of international logistics are to match and link parts of global supply chains,
overcome international trade barriers of different nature (political, law, cultural, currency,
transportation, language, etc.), and minimize transaction costs and risks. There are a set of
regulations, rules and conditions that are to be taken into account to receive outputs expected;
namely, goods delivered in time, to the right place, in right quantity and quality. On the other
hand, the target is not only to fulfill all necessary contract terms but minimize corresponding
risks and transaction costs. When a firm becomes heavily involved in international business,
logistics is seen as a critical part of the strategic planning process. Any of international
operations has international logistics components. Therefore, an effective international logistics
strategy not only offers significant cost savings but also can help firms increase production,
obtain technological advantages from other countries, and expand their markets.
The role of international logistics managers
As logistics activities become a substantial part of a firm's international operations, the role
played by international logistics managers also increases in importance.
Let's look at a simple example. Just pretend for a moment that you work as a logistics manager
for a large American jewelry company based out of New York. Your company has an extensive
international supply chain. We'll walk through a simplified logistical process for a diamond ring.
Your diamond supplier is De Beers in South Africa. You get your gold from a supplier in
China. The jewelry itself is assembled in Switzerland. Your job is to manage the supply chain
from acquisition of a resource through its transformation into a finished product and until it is
sold to a customer. Your responsibilities may include the following:
1) Oversight of the purchase of diamonds in South Africa and gold from China to fulfill the
company's production demands
2) Arranging for the temporary warehousing of the purchased diamonds and gold at local
storage facilities
3) Arranging for the international shipping of the gold stored in China to a subsidiary in a
small Eastern European country, where the gold will be refined and prepared for the
jewelers in Geneva
4) Arranging for the international shipping of the diamonds stored in South Africa to the
company's facilities in Geneva for cutting and polishing
5) Arranging for the international shipping of the refined gold to the company's Geneva
facility to create rings and settings
6) Once the rings are finished, arranging for their warehousing at the company's central
warehouse until they are needed to fill orders; keeping computerized inventory records
and ensuring the facility is adequately secured
7) Arranging for the shipment of an order of diamond rings to the company's flagship
Manhattan retail store
8) Continued monitoring of the inventory at the retail store until the product is sold to a
customer
Complex channels of international logistics
If you look closely at the above example, you can discern three different types of processes
involved in international logistics that we will call logistics channels:
1) The transaction channel involves buying, selling, and collection of payment.
2) The distribution channel involves the physical movement of resources and products
throughout the supply chain.
3) The documentation/communication channel involves the management of information
regarding the resources and products such as inventory controls, commercial shipping
documents, and contracts.
Ex. 1. Find words in the text to complete the following expressions. Translate the
expressions into Russian.
Ex. 2. Form word-combinations using the words of both columns. Translate them into
Russian.
1. factory a. advantages
2. store b. product
3. transaction c. shipping
4. trade d. floor
5. contract e. warehousing
6. planning f. shelf
7. technological g. channel
8. finished h. terms
9. temporary i. process
10. international j. costs
11. distribution k. barriers
Ex. 3. Insert prepositions.
a. the process involved in getting a product from the factory floor to the store shelf, and
everything in between.
b. that are to be taken into account.
c. the interest in international logistics services is increasing.
d. can help firms increase production, obtain technological advantages from other countries,
and expand their markets.
e. that are called logistics channels.
f. to match and link parts of global supply chains, overcome international trade barriers of
different nature, and minimize transaction costs and risks.
Ex.5. Put the steps in a logistical process for a diamond ring in the correct order.
1. Arranging for the shipment of an order of diamond rings to the company's retail store
2. Once the rings are finished, arranging for their warehousing at the company's central
warehouse
3. Arranging for the international shipping of the gold to a subsidiary, where the gold will
be refined and prepared for the jewelers in Geneva
4. Oversight of the purchase of diamonds and gold
5. Arranging for the international shipping of the diamonds to the company's facilities in
Geneva for cutting and polishing
6. Monitoring of the inventory at the retail store until the product is sold to a customer
7. Arranging for the international shipping of the refined gold to the company's Geneva
facility to create rings and settings
8. Arranging for the temporary warehousing of the purchased diamonds and gold at local
storage facilities
TEXT 2
Read the text, translate it into Russian and do the tasks below.
Vocabulary
Aspirational goal – желательная цель
Inferior – худший, низкосортный
Inferiority – неполноценность, ущербность
To align – совместить, согласовать
Framework – основа, база
Seamless - непрерывный, бесперебойный
“The world is truly getting smaller and the marketplace is getting bigger.
Global logistics can help bridge the gap between service and efficiency, but it
is not easy.” (PricewaterhouseCoopers) *
In developed nations, businesses enjoy the best logistics and transportation professionals,
systems, and infrastructure in the world. Managers take for granted such standards as advanced
Internet-based technologies, high-capacity national highway systems, broad-band fiber-optic
communications capabilities, seamless multimodal transportation, modern port facilities, high-
density air traffic control, and a cadre of qualified, experienced logistics professionals and
service agencies. What is experienced as the norm of logistics practice in the developed countries
is often only an aspirational goal of logisticians in many other places in the world. If one is not
careful, it’s easy to look down upon or criticize as inferior the state of logistics and transportation
development in other countries. “It’s sure not like the way we do it back home!” is a common
comment from managers returning from their first overseas business experience. Understanding
different expectations for logistics performance may turn initial perceptions of inferiority to an
appreciation for other ways of accomplishing logistics objectives.
Both large and small firms must be aware of differences throughout the world as they establish
a global presence. One soon learns that there are many global variations on “how things happen
at home.” Take holidays as an example. Looking at only a handful of major nations, Australia
celebrates Australia Day, January 26; Anzac Day, April 25; and the Queen’s Birthday, June 12.
Brazil celebrates Independence Day on September 7. Canada celebrates Victoria Day on May 22
and Thanksgiving in early October. In France, Labor Day is on May 1; Armistice Day is on both
May 8 and November 11; and Bastille Day is on July 14. Many nations celebrate various
religious holidays. All this means that there will be extra charges or delays in having work done
when the holidays occur; at the very least, the consignee’s place of business may be closed and
the delivery cannot be made. Carriers hand out booklets that outline general facts that one must
know when trading with countries where they provide services. Such information is typically
available through a carrier’s website as well. Common examples are lists of goods that cannot be
exported into or taken out of certain countries, documentation requirements, and long lists of
information about climate, clothing, and local customs. More specialized guides are available,
describing ports and how conditions at each port may affect the flow of cargo.
Another item that the beginning exporter or importer should assess is the political stability of
the area with which trade is being considered. Profits may appear to be high, until you realize the
political risks that reduce the chances of successfully completing the transaction.
Another essential point you should consider is cultural differences which can get in the way of
the simplest of business activities. One obvious difference between cultures is language. As
such, language includes not only the written and spoken use of a set of symbols, but also the
gestural and other nonverbal components of communication. Language often presents the most
immediate barrier to understanding another culture.
Beliefs, values, language—all impact the way one interacts with business counterparts. But an
awareness of one’s own cultural perspectives and a willingness to go beyond them and learn
about a different cultural environment will help to minimize cultural problems one may
encounter in foreign countries.
With experience and help, a small firm can soon develop into a regular exporter and importer.
PricewaterhouseCoopers suggests:
“Development of a global logistics strategy to align all logistics initiatives on a global basis is
essential . . . [and provides] the framework to move to the “best in class” level. The approach
should understand that no two locations would have the same needs or be at the same level in
their logistics development. Local conditions, needs, and customer expectations will make the
requirements of each market very different. The global logistics strategy must take these
differences into account and create tactics that are appropriate for each region to achieve
significant benefits in changing the logistics paradigm.”
* PricewaterhouseCoopers (PwC) is a multinational professional services network. It is the world's second largest
professional services network, as measured by 2014 revenues, and is one of the Big Four Auditors.
Ex. 1. Form nouns from the following verbs with the help of the suffix -tion.
1. to transport - 4. to appreciate -
2. to communicate - 5. to perceive -
3. to expect - 6. to locate -
Ex. 3. Match the verbs on the left with the nouns on the right. Translate the word-
combinations into Russian.
1. Accomplish a. problems
2. Celebrate b. facts
3. Provide c. objectives
4. Outline d. benefits
5. Reduce e. transactions
6. Complete f. chances
7. Encounter g. services
8. Achieve h. holidays
1. Inferior a. skilled
2. Aspirational b. suitable
3. Seamless c. additional
4. Advanced d. uninterrupted
5. Overseas e. primary
6. Qualified f. worldwide
7. Initial g. progressive
8. Global h. important
9. Extra i. worse
10. Essential j. desirable
11. Appropriate k. foreign
1. If you want to expand your business with additional new factories you should carefully
consider their location.
2. Our country has the most progressive military technologies.
3. Environmental pollution is a worldwide problem.
4. Finding suitable warehousing and storage space in third-world countries can be
problematic.
5. The need for skilled logistics managers is increasing with the increase of demand for
better logistics performance.
6. To gain a better understanding of logistics, it is important to improve the statistical
recording of freight flows.
Ex. 6. Translate the derivatives and use them in the sentences that follow.
1. Vary, various, variation, variety
a. International trade logistics may include planning the sourcing of raw materials from
_________________ locations.
b. The complexity of the supply chain will __________________ with the size of the
business.
c. Logisticians are responsible for supply chain operations of a ________________ of
products.
Ex. 7. Complete the ideas using the information from the text.
1. In developed nations, businesses enjoy … Managers take for granted such standards as …
2. When the holidays occur, there will be …
3. Carriers hand out booklets that outline … Common examples are …
4. Beliefs, values, language impact the way … Learning about a different cultural
environment will help …
5. When you establish a global presence, you should understand that no two locations would
…
Supplementary Reading
Approaches to international trade logistics include management of the whole supply chain to
optimize sourcing of raw materials, plan transportation and storage requirements, and arrange the
most effective distribution network. The objective is to achieve and maintain the lowest possible
transportation, warehousing and distribution costs while also maintaining speed and efficiency.
The approach to international trade logistics also may include dealing with national regulations
on product safety, corporate governance, accounting standards, customs and tax regulations in
the international supply chain and overseeing the security of assets, employees, products and
processes. Global trading conditions and enterprise strategy are continuously evolving, so
international trade logistics must be reviewed on a regular basis.
International trade logistics may include planning the sourcing of raw materials from various
locations with a view to reducing production costs. Costs also may be reduced by calculating the
most favorable transportation routes and arranging for the lowest possible freight charges.
Freight shipments to warehouse or factory locations may be arranged in the most efficient
manner, including agreement with the importer on contract terms for freight and insurance to
safeguard the goods and prevent disputes.
Locations for storage and distribution must be adapted to ensure efficient transportation. The
logistics of international trade also may require prompt completion of export and import
procedures and a review of methods for cross-border payment. The transportation arrangements
must be under constant review for changes in available methods of transport, the opening of new
routes, introduction of new technology, new payment procedures and changes in standard
contract terms.
International trade logistics may be assisted by the installation of adequate information systems
within the enterprise to ensure the international trade situation is constantly monitored and the
supply chain is set up as efficiently as possible. Enterprises concerned with customer service and
the need to deliver on time must ensure that the supply chain is correctly managed. The need to
prevent delays and speed delivery times drives the need to increase the efficiency of the supply
chain. A more efficient supply chain may help to reduce costs by reducing the need to keep large
inventories and by reducing the amount of rejection or return of products resulting from damage
or late delivery. Efficient handling of customs procedures ensures there are no delays in the
supply chain and also avoids the imposition of fines for breaches of customs regulations.
UNIT 7
SHIPPING GOODS
Topical Vocabulary
1. Pilferage a. rope
2. Moisture b. hide
3. Legibility c. warning
4. Hazardous d. intense
5. Cautionary e. humidity
6. Conceal f. theft
7. Sling g. dangerous
8. Violent h. readability
READING ACTIVITIES
Read the text, translate it into Russian and do the tasks below.
SHIPPING GOODS
When preparing to ship a product overseas, the seller needs to be aware of packing, labeling,
documentation, terms of sale, delivery and payment, and insurance requirements. Because the
goods are being shipped by unknown carriers to distant customers, the exporter must be sure to
follow all shipping requirements to help ensure that the merchandise is
packed correctly so that it arrives in good condition;
labeled correctly to ensure that the goods are handled properly and arrive on time and at
the right place;
documented correctly to meet local and foreign government requirements;
insured against damage, loss, and pilferage and, in some cases, delay.
Because of the variety of considerations involved in the physical export process, most
exporters, both new and experienced, rely on an international freight forwarder to perform these
services.
Packing
In packing an item for export, the shipper should be aware of the demands that exporting puts
on a package. Four problems must be kept in mind when an export shipping crate is being
designed: breakage, weight, moisture, and pilferage.
Shipment moving by ocean freight may be loaded aboard vessels in a net or by a sling,
conveyor, or other method, putting added strain on the package. In the ship's hold, goods may be
stacked on top of one another or come into violent contact with other goods during the voyage.
Overseas, handling facilities may be less sophisticated than in your country and the cargo may be
dragged, pushed, rolled, or dropped during unloading, while moving through customs, or in
transit to the final destination.
Moisture is a constant problem because cargo is subject to condensation even in the hold of a
ship equipped with air conditioning and a dehumidifier. The cargo may also be unloaded in the
rain, and some foreign ports do not have covered storage facilities. In addition, unless the cargo
is adequately protected, theft and pilferage are constant threats.
Care in packing goods to minimize volume and weight while giving strength may well save
money while ensuring that goods are properly packed. For both ocean and air shipments, freight
forwarders and carriers can advise on the best packaging. It is recommended that a professional
firm be hired to pack the merchandise for export if the exporter is not equipped for the task.
Labeling
Specific marking and labeling are used on export shipping cartons and containers to
meet shipping regulations,
ensure proper handling,
conceal the identity of the contents, and
help receivers identify shipments.
Many markings may be needed for shipment. Exporters need to put the following markings on
cartons to be shipped:
Shipper's mark.
Country of origin (exporters' country).
Weight marking (in pounds and in kilograms).
Number of packages and size of cases (in inches and centimeters).
Handling marks (international pictorial symbols).
Cautionary markings, such as "This Side Up" or "Do Not Turn Over" (in English and in
the language of the country of destination).
Port of entry.
Labels for hazardous materials (universal symbols adapted by the International Maritime
Organization).
Shipping instructions
As the official international freight forwarder appointed by EXPO CHICAGO, we will
coordinate all international 1) … and arrange customs 2) … for our customers. Please carefully
read the following information regarding shipping 3) … for importing goods into the US.
Advice of shipment
When dealing with shipments to customers, it is common practice to advise them that a shipment
has been sent. Often details on departure and arrival times, order numbers, and documents are
given.
We are pleased to inform you that your order has been dispatched by truck today.
Order №3012 has been dispatched by flight BA2379 today.
We are pleased to advise that your order №23/1346 was shipped on board the vessel “Ocean
Line”.
The consignment is due to arrive in Sydney on August 25th.
The above order has been handed over to our forwarding agents today.
The consignment will be delivered to your warehouse in Brussels.
Write an email informing a customer about dispatch. Include the following information:
1. The order number.
2. When the consignment was sent.
3. How the consignment was shipped (road, air, rail, sea).
4. Where it will be delivered.
5. When it will arrive at the customer’s site.
UNIT 8
Topical Vocabulary
1. Refer a. explanation
2. Subsequent b. contract
3. Nominate c. concern
4. Maritime d. responsibility
5. Interpretation e. suitable
6. Liability f. appoint
7. Applicable g. consequent
8. Agreement h. sea
Ex. 3. Complete the sentences with the words from the vocabulary.
Read the text, translate it into Russian and do the tasks below.
The Incoterms (International Commercial Terms) are predefined commercial terms published
by the International Chamber of Commerce (ICC). Three-letter standard trade terms (e.g. FOB,
CFR, CIF) are commonly used in international commercial transactions. The Incoterms rules
communicate the tasks, costs, and risks associated with the transportation and delivery of goods.
They define the trade contract liabilities between the buyer and the seller. Each Incoterm refers
to a particular type of agreement for the purchase and shipping of goods internationally.
The Incoterms rules are accepted by governments and legal authorities worldwide. They are
intended to reduce or eliminate uncertainties that arise from different interpretation of the rules
in different countries.
First published in 1936, the Incoterms have been regularly reviewed and updated. The latest
version is Incoterms 2010. It defines 11 rules reducing the 13 used in Incoterms 2000.
Classification of Incoterms
The Incoterms are divided into 4 groups, and each group's letter makes up the first letter of the
Incoterm. The Incoterms beginning with F refer to shipments where the cost of shipping is not
paid for by the seller. The Incoterms beginning with C deal with shipments where the seller pays
for shipping. E-terms occur when a seller’s responsibilities are fulfilled when goods are ready to
depart from their premises. D-terms cover shipments where the shipper/seller’s responsibility
ends when the goods arrive at some specific point.
1) Group E – Departure
EXW – Ex Works (followed by the named place, for instance, EXW Portland) places the
minimum responsibility on the seller and maximum responsibility on the buyer. Ex means
“from”; Works means “factory or warehouse”. EXW means that a buyer is responsible for
loading the goods on truck or container at the seller’s premises, and for the subsequent costs and
risks.
4) Group D – Arrival
DAT – Delivered at Terminal (followed by the named terminal)
The seller pays for the carriage of the merchandise to the named terminal, except for costs
related to customs clearance, and incurs all risks until after the goods are unloaded at the
terminal. The buyer covers the cost of transporting the goods from the terminal to the final
destination.
DAP – Delivered at Place (followed by the named place of destination)
The definition of this term is identical to DAT, but, with the DAP Incoterm, the buyer holds
responsibility for the unloading of goods - the seller simply has to bring the goods to the named
place and make them available for the buyer to unload. The buyer is also responsible to pay the
taxes and customs costs.
DDP – Delivered Duty Paid (followed by the named place of destination)
The shipper/seller is responsible for delivering the goods to the buyer’s door, and pays all costs
in bringing the goods to the destination including customs duties and taxes. The buyer has only
to unload the goods at the final destination. The term DDP tends to be used in intermodal or
courier-type shipments.
CFR
CIP
DDP
CPT
FCA
FOB
EXW
DAT
DAP
FAS
CIF
1. FAS a) the seller is obligated to bring the goods to the port, clear the goods for export,
means that and see that they are loaded onto the ship nominated by the buyer.
2. CFR b) the seller pays all the costs of transportation of the goods to the final destination,
means that except for customs costs. The buyer is responsible to pay those costs and to unload
the goods from the vehicle.
3. FOB c) the seller literally provides door to door delivery, including customs clearance in
means that the port of export and the port of destination. Thus the seller incurs the entire risk of
loss until goods are delivered to the buyer's premises.
4. CPT d) the seller must transport the goods all the way to the dock, close enough to be
means that reached by the crane of the ship it will be transported in.
5. DAP e) the seller's only responsibility is to make the goods available at the seller's
means that premises, i.e., the warehouse or factory. The seller is not responsible for loading the
goods on the vehicle.
6. DDP f) the seller covers all the costs of bringing goods from their origin to the port of
means that destination, including carriage costs and clearing the goods for export except for the
insurance. This term is used exclusively for maritime trade.
7. EXW g) the seller will pay all freight costs all the way up to the foreign port, not
means that including the insurance. The term is similar to CFR, but it is applicable to all modes
of transport.
Ex. 7. Complete the passage below with the words from the box.
The Incoterms rules are an internationally recognized standard and are used worldwide in
international and domestic contracts for the 1) _______ of goods. First published in 1936,
Incoterms rules provide internationally accepted definitions and rules of interpretation for most
common commercial 2) __________. The rules have been developed and maintained by experts
and practitioners brought together by ICC and have become the 3) ___________ in international
business. They help traders avoid costly misunderstandings by clarifying the tasks, costs and 4)
_________ involved in the delivery of goods from sellers to buyers. All 5) __________ made
under Incoterms 2000 remain valid even after 2011. Moreover, although experts recommend
using Incoterms 2010 after 2011, parties can agree to choose any version of the Incoterms 6)
__________ after 2011. It is important however to clearly specify the chosen version Incoterms
2010, Incoterms 2000 or any earlier 7) __________.
UNIT 9
DOCUMENTATION
Topical Vocabulary
WORD STUDY
Ex. 1. Look through the vocabulary and find synonyms to the given words:
1. appropriate 4. reconsider
2. proof 5. arguable
3. mean 6. addressee
Ex. 2. Fill in the table.
READING ACTIVITIES
Read the text, translate it into Russian and do the tasks below.
DOCUMENTATION
When items are transported either domestically or internationally the delivery must be
accompanied by the relevant documentation. The amount of documentation varies depending if
the shipment is within the domestic market or to another country. The following documents are
commonly used in international trade:
Invoice (commercial invoice, consular invoice, customs invoice, pro forma invoice)
Packing List
Certificate of Origin
Bill of Lading
Insurance Certificate
An invoice is a document that contains specific information regarding the goods shipped.
Commercial Invoice is the seller’s formal request for payment. It is prepared by the
seller/exporter and addressed to the buyer/importer. The C/I identifies the buyer and seller,
describes the goods sold and all terms of sale, including Incoterms, payment terms, relevant bank
information, shipping details, etc.
Pro Forma Invoice is an invoice sent to the buyer before the actual shipment. It gives the
foreign buyer a chance to review the sale terms and get an import license if required. It also
allows the buyer to apply for a Letter of Credit from his bank. The Pro Forma Invoice serves as
the basis for the subsequent Commercial Invoice.
Customs Invoice is a special kind of invoice containing specific information for the Customs
clearance of imported shipments. These documents contain most of the elements of the
Commercial Invoice, and are usually in the language of the importing country.
Consular Invoice is a document prepared by the buyer’s consulate or embassy in the shipper’s
country. They may be specific forms required by the destination country’s government or simply
copies of the Commercial Invoice. The Consular Invoice is the evidence that the goods, which
are imported, are not over-priced.
Packing List is a document which describes the contents of a shipment, its type, dimensions
and weight. Pricing information is not required. The Packing List is used to check the cargo by
Customs officials as well as by the recipient.
Certificate of Origin is a document that shows in which country the goods were
manufactured. Such certificates are usually obtained through a local Chamber of Commerce. A
Certificate of Origin may be required by foreign authorities when determining the duty on the
goods or whether the goods may be legally imported at all.
Bill of Lading is a contract between the owner of the goods and the carrier, which gives the
details of a consignment, its destination and the consignee. The Bill of Lading can be of various
types: Inland B/L, Ocean B/L, On-board B/L, Through B/L, and some others, depending on the
method of shipment. If the goods received for shipping are in doubtful condition or not of correct
quantity, the carrier may declare a claused bill of lading. The clause may state, for example,
“package number 12 damaged” or “two crates missing”. A claused bill of lading (or foul B/L,
dirty B/L, unclean B/L) is the opposite of clean bill of lading, which implies that the goods have
been received in an appropriate condition, without the findings of defects or shortage.
Insurance Certificate is a document that provides protection to cargo owners in the event of
loss or damage to the cargo in transit. Insurance is needed for all international shipments.
Ex.1. Match words in column A with words in column B. Translate the word combinations
into Russian.
A B
1. Domestic a. invoice
2. Specific b. authorities
3. Commercial c. condition
4. Shipping d. list
5. Import e. clearance
6. Packing f. market
7. Customs g. information
8. Insurance h. certificate
9. Foreign i. details
10. Doubtful j. license
Ex. 2. Match the words and word combinations listed below with their Russian definitions.
Ex. 3. Complete this list of documents used in foreign trade with words from the box.
Commercial invoice
A document that contains specific information regarding the goods shipped and the … agreed
between buyer and seller.
Certificate of origin
A document used in foreign trade which states where the goods were produced. It is often … by
customs authorities.
Packing list
A document which specifies the contents of any form of packaging, e.g. boxes, containers,
cartons, without … the value of the goods shipped.
Air waybill
A contract between airline and shipper. It is a shipping document which states the terms and
conditions of … and is also a receipt for the consignment.
Consular invoice
A special kind of invoice sometimes required by the importing country. It needs to be … by an
embassy.
Pro forma invoice
A … invoice which the seller prepares before the actual shipment takes place.
Export license
A document which is granted by a government … and states that specified goods can be
exported.
Customs invoice
A specific document required by customs in some countries, e.g. US, when importing goods. It
includes more details than a … invoice.
Dangerous goods declaration
A certificate prepared by the shipper/consignor which states that … goods are handled according
to international shipping regulations.
Bill of lading
A contract between carrier and shipper which specifies the goods to be shipped and the delivery
terms. It is also a … of shipment and accompanies the goods until they reach their destination.
1. The Commercial Invoice serves as the basis for the subsequent Pro Forma Invoice.
2. Customs invoice is a special kind of invoice for the customs authorities of the importing
country.
3. The Consular Invoice is the evidence that the goods, which are imported, are not over-
priced.
4. Pricing information is not required on the Packing List.
5. Certificates of origin are usually obtained through the buyer’s consulate or embassy in the
shipper’s country.
6. Insurance Certificate is used to guarantee the consignee that the loss of or damage to the
cargo during transit will be covered.
7. Bill of Lading is a shipping document that gives details of a consignment, its destination
and the consignee.
8. A claused bill of lading implies that the goods have been received in an appropriate
condition.
Ex. 7. Fill in the missing prepositions: by (2), on, to (2), onto, from, over, between (2).
TERMS OF PAYMENT
Topical Vocabulary
WORD STUDY
1. sufficiently a. obligation
2. precise b. rent
3. integral c. simplify
4. facilitate d. exact
5. prior e. completely
6. lease f. operation
7. commitment g. part
8. transaction h. before
9. installment i. essential
Ex. 2. Form word-combinations using the words from both columns and, if necessary,
given prepositions. Translate them into Russian.
1. open a. account
2. down b. payment
3. documentary c. collection
4. issuing of d. bank
5. hire on e. purchase
6. cash f. delivery
7. letter g. credit
8. statement h. account
9. payment i. invoice
Ex. 3. Match the terms with their definitions.
a) a payment method, when the sale transaction is performed by the bank through an exchange of
documents;
b) the buyer doesn’t pay for every delivery, but receives a statement of account every month or
quarter, which states the sum he owes the seller;
c) the leaseholder pays rent to the lessor; the lessor gives the lessee permission to use the object
for a fixed period of time;
d) the customer makes a down payment (e.g. 10% of the total price) and gets the goods; later he
pays the remaining sum in installments;
e) a pre-payment method utilized for paying for goods for export;
f) the buyer sends payment with his order;
g) the buyer receives an invoice on or after delivery, which describes the goods delivered, the
sum to be paid, the period within which the invoice must be paid;
h) the buyer pays the company, which delivers the goods.
READING ACTIVITIES
Read the text, translate it into Russian and do the tasks below.
TERMS OF PAYMENT
Getting paid for providing goods or services is critical for any business. Terms of payment are
an integral part of any business transaction both in domestic and in international trade.
Ex. 1. Find in the text the English equivalents for the following phrases.
Ex. 3. Complete the sentences with the words from the box.
1. … refers to the manner by which the seller will be paid for his goods.
2. In some risky situations, the seller might insist on ….
3. In an … transaction the seller trusts the buyer will pay the invoice on the specified date.
4. A … is issued by a bank and is payable to the seller upon presentation of certain
documents.
5. An … cannot be canceled without the consent of the parties.
6. Payment terms are the means by which the … will be financed.
7. Today, major banks … the process by electronic means.
8. … means payment will occur once the delivery is completed.
9. … means that a buyer agrees to pay for goods in parts over a number of months.
LISTENING PRACTICE
Ex. 5. Three people are talking about payment methods in their companies. Listen and
complete the table.
Ex. 6. Listen again and say which of these statements are true or false according to the
recordings.
Ex. 7. Read these answers to frequently asked questions relating to financial risk in
international trade. Answer the questions below.
What are the main financial risks for companies doing business overseas?
The first risk area obviously has to do with the customers’ credit rating and status. There’s
always the danger that the customer does not pay for the goods you have supplied. But there are
quite a lot of other country-related trade risks which need to be considered.
Why is that?
Well, if you want to do business in a country or market, you have to see what payment facilities
your competitors are offering and offer something similar – even if that’s not what you really
want. And sometimes exporters may decide against secure payment methods such as a letter of
credit because the bank charges are high and eat up their profits.
1. What are the main financial risks in foreign trade mentioned in this article?
2. How can traders reduce their financial risk?
3. Why are secure payment methods not always possible?
Ex. 8. Complete the passage with the adjectives from the box.
Today logistics is one of the leading industries in the world. It employs millions of people. The
logistics professionals have a variety of career opportunities to choose from.
Task 1. Read and translate one of the passages describing jobs in the field of logistics in written
form (to the teacher’s choice).
Task 2. Make a glossary of 10-15 unknown words from the text.
Task 3. Put 5 questions to the text.
1. Logistics and distribution manager
Logistics and distribution managers organize the storage and distribution of goods. Essentially
they need to ensure the right products are delivered to the right location on time and at a good
cost. They may be involved in transportation, stock control, warehousing and monitoring the
flow of goods.
A logistics and distribution manager needs to have an understanding of the whole supply chain
so they can co-ordinate it effectively and liaise with suppliers of raw materials, manufacturers,
retailers and consumers.
IT plays a big part in the role as IT systems and electronic communication methods are used to
keep track of stock levels, delivery times, transport costs and performance evaluation. Logistics
is at the centre of electronic commerce (e-commerce) which is developing all the time.
Logistics and distribution managers must also be aware of external influences such as
legislation, fuel costs and environmental pressures. They will always need to be considering how
business development can fit with sustainability.
Typical work activities
Responsibilities vary according to the specific job role and whether the employing company is
a manufacturer, retailer or specialist service provider (e.g. in third party logistics (3PL)).
A range of business tasks is undertaken to support the smooth and efficient operation of supply
chain processes, and tasks usually include:
monitoring the quality, quantity, cost and efficiency of the movement and storage of goods;
coordinating and controlling the order cycle and associated information systems;
analyzing data to monitor performance and plan improvements and demand;
allocating and managing staff resources according to changing needs;
liaising and negotiating with customers and suppliers;
developing business by gaining new contracts, analyzing logistical problems and producing new
solutions.
When managing warehouse or transport staff, the role may also include:
implementing health and safety procedures;
managing staff training issues;
motivating other members of the team;
project management;
setting objectives.
More senior roles in logistics may involve: planning projects; working on new supply strategies;
planning vehicle routes; using specialist knowledge, such as mechanical-handling systems, to
provide consultancy services.
2. Freight forwarder
A freight forwarder is an agent who acts on behalf of importers, exporters or other companies
or persons to organize the safe, efficient and cost-effective transportation of goods.
Freight forwarders arrange the best means of transport, taking into account the type of goods
and the customers' delivery requirements. They use the services of shipping lines, airlines and
road and rail freight operators. In some cases, the freight forwarding company itself provides the
service.
Companies vary in size and type, from those operating on a national and international basis to
smaller, more specialized firms, who deal with particular types of goods or operate within
particular geographical areas.
Typical work activities
Activities vary depending on the type and size of employer but typically include:
investigating and planning the most appropriate route for a shipment, taking account of the
perishable or hazardous nature of the goods, cost, transit time and security;
arranging appropriate packing, taking account of climate, terrain, weight, nature of goods and
cost, and the delivery and warehousing of goods at their final destination;
negotiating contracts, transportation and handling costs;
obtaining, checking and preparing documentation to meet customs and insurance requirements,
packing specifications, and compliance with overseas countries' regulations and fiscal regimes;
offering consolidation services by air, sea and road, ensuring cost-effective and secure solutions
to small shippers who have insufficient cargo to require their own dedicated units;
liaising with third parties to move goods (by road, rail, air or sea) in accordance with customer
requirements;
arranging insurance and assisting the client in the event of a claim;
offering tailored IT solutions and electronic data interchange (EDI) connections;
arranging payment of freight and other charges or collection of payment on behalf of the client;
utilizing e-commerce, internet technology and satellite systems to enable real-time tracking of
goods;
arranging air transport for urgent and high-value freight and managing the risk door to door;
arranging charters for large volume, out-of-gauge or project movements by air and sea;
acting as broker in customs negotiations worldwide to guide the freight efficiently through
complex procedures;
dealing with special arrangements for transporting delicate cargoes, such as livestock, food and
medical supplies;
arranging courier and specialist hand-carry services;
working closely with customers, colleagues and third parties to ensure smooth operations to
deadlines;
maintaining communication and control through all phases of the journey, including the
production of management reports and statistical and unit cost analysis;
acting as a consultant in customs matters;
maintaining current knowledge of relevant legislation, political situations and other factors that
could affect the movement of freight.
At more senior levels, the role may also involve managing staff and overseeing activities
within a department or specializing in a particular area, such as sea freight or air freight.
5. Warehouse manager
Warehouse managers are a vital part of the supply chain process. They oversee the efficient
receipt, storage, value-adding servicing and dispatch of a wide range of goods including food,
clothing, healthcare products, manufacturing parts and household items.
To achieve this, they manage people, processes and systems. They ensure productivity targets
are met and oversee the maintenance of warehouse and labor management systems. Warehouse
managers may also be involved in operating automated storage and retrieval systems. They
ensure workplace health and safety requirements are met and take responsibility for the security
of the building and stock.
In a large operation, warehouse managers manage teams of workers through the use of team
leaders and supervisors and deal with personnel issues such as the recruitment, training and
discipline of staff.
Specialist warehouses involve the storage of temperature-controlled products, such as food and
pharmaceuticals, and the storage of hazardous materials.
Typical work activities
Work activities depend on the size of the operation.
In large storage operations, managers have a more strategic role and deal with planning,
coordinating, administration and general management issues, which include the day-to-day
supervision of staff and overseeing work organized by team leaders (who then report to the
manager).
In a small operation, a manager deals with more practical, 'hands-on' work.
Typical work activities include:
liaising with customers, suppliers and transport companies;
planning, coordinating and monitoring the receipt, order assembly and dispatch of goods;
the efficient utilization of space and mechanical handling equipment, ensuring quality, budgetary
targets and environmental objectives are met;
having a clear understanding of the company's policies and vision and how the warehouse
contributes to these;
coordinating the use of automated and computerized systems where utilized;
responding to and dealing with customer communication by email and telephone;
keeping stock control systems up to date and ensuring inventory accuracy;
planning future capacity requirements;
organizing the recruitment and training of staff, as well as monitoring staff performance and
progress;
motivating, organizing and encouraging teamwork within the workforce to ensure productivity
targets are met or exceeded;
producing regular reports and statistics on a daily, weekly and monthly basis;
briefing team leaders on a daily basis;
visiting customers to monitor the quality of service they are receiving;
maintaining standards of health and safety, hygiene and security in the work environment, for
example, ensuring that stock such as chemicals and food are stored safely;
overseeing the planned maintenance of vehicles, machinery and equipment.
6. Transport/logistics manager
Logistics is an increasingly prevalent term in business. It’s about getting the product to the
customer in the most efficient, timely and cost effective manner. Transport and logistics
managers play a key role in fulfilling manufacturers’ promises to their customers and in meeting
those customers’ expectations. They are responsible for managing the execution, direction, and
coordination of all transportation matters within the organization. This includes managing
budgets, organizing schedules & routes, ensuring that vehicles are safe and meet legal
requirements, and making sure that drivers are aware of their duties.
Logistics embraces purchasing and supplier management, materials management and
manufacturing, inventory management and warehousing, distribution and transport, and
customer service. While the role covers a range of functions, each with its own challenges and
skills, they are all interdependent and practitioners must work together and understand the
impact on the whole supply chain to deliver results.
Logistics links all the processes involved, from obtaining the raw materials through to delivering
the finished goods to the customer. The management of this supply chain is now recognized as
one of the most important factors in making companies efficient and competitive in today’s
global economy.
Work activities
Logistics:
Planning routes and load scheduling for multi-drop deliveries.
Booking in deliveries and liaising with customers.
Allocating and recording resources and movements on the transport planning system.
Ensuring all partners in the supply chain are working effectively and efficiently to ensure smooth
operations.
Communicating effectively with clients and responding to their requirements.
Booking sub-contractors and ensuring they deliver within agreed terms.
Transport management:
Directing all transportation activities.
Developing transportation relationships.
Monitoring transport costs.
Negotiating and bargaining transportation prices.
Dealing with the effects of congestion.
Confronting climate change issues by implementing transport strategies and monitoring an
organization’s carbon footprint.
Large international companies are used to dealing with compliance regulations. But they now
face the problem of meeting the ethical expectations of customers as well. Part of this means
showing the world they have environmentally friendly credentials, which is not so easy to prove.
According to Gareth Pickles, an environmental consultant, “there’s been a shift from the
government driving this, to the consumer. Consumers are looking to businesses to improve their
environmental credentials.”
While eco-campaigners have criticized drivers of large vehicles for some years, the spotlight is
turning towards companies and their technology. For example, Greenpeace criticized Apple’s
first iPhone when it was launched, claiming it contained hazardous chemicals.
This means companies have to look harder at the technology they use – not only at energy
consumption but at the manufacture of components – and that means choosing suppliers that can
also prove the environmental credentials of their suppliers. Hewlett-Packard, for example, claims
it had audited its top suppliers around the world on health and environment.
IT vendors seem to realize the importance of at least talking the green talk. And many have
tried to set environmental standards that all component suppliers around the world have to
respect. For example, Dell, Intel, Apple, HP and others have signed up to the Electronic Industry
Code of Conduct, an initiative to improve conditions in the electronics supply chain, especially
in countries such as China, where much equipment is made.
A report from analyst Gartner adds:”Vendors that exploit the opportunities that an
environmentally sensitized supply chain will present are likely to become more successful in the
market.”
Task 3. Match these words from the article with their meanings:
1. Compliance a. dangerous
2. Credentials b. focus of attention
3. Criticized c. a new plan to solve a problem
4. Spotlight d. made negative comments about something
5. Hazardous e. evidence that you can do what you say you can do
6. Initiative f. when people obey a rule or law
Task 4. Complete these verbs and verb phrases using the prepositions given below:
to at towards to up to
1. To be used … 3. To turn …
2. To look … / … 4. To sign … …
Task 5. Replace the words in italic with verbs + prepositions from task 4. Put the verbs in
the correct tense.
VERB NOUN
expectation
improve
consumption
initiative
exploit
regulation
prove
Task 7. Use nouns and verbs from task 6 to complete these sentences.
1. In recent years, there has been a big …………………… in the way companies have
established their environmental credentials.
2. Some forms of transport ………………….. more energy than others.
3. When companies do environmental audits of their suppliers, they are looking for ………
that they are operating in an environmentally sensitive way.
4. Customers of large companies ……………… them to carry out their business in an
ethical and environmentally sensitive way.
READING
1. Read the article and choose the best option to complete each statement.
1. Forecasting demand is especially difficult for all products at Christmas / new products
that become very popular.
2. According to the writer, shortages of “must-have” products are common at Christmas
because manufacturers underestimate demand / deliberately restrict stock to get interest.
3. The writer doesn’t see / sees product shortages as a serious risk for companies.
4. The best way for ensuring companies have the right stock levels to meet demand is more
accurate forecasting / making their supply chains more flexible.
2. The article offers for main solutions for dealing with increases in demand. In what
order are they mentioned?
a) Better communication of information between everyone in the supply chain.
b) Supplier contracts with guarantees to increase production at short notice.
c) Increasing the number of suppliers.
d) More accurate forecasting for a better picture of demand for components.
A Every year at Christmas, much-advertised products disappear from the shelves long before
most people have done their Christmas shopping, leaving consumers disappointed and frustrated.
B Forecasting the right quantity of a product and getting it to the right place at the right time is
a tough challenge for businesses, especially when the item is new. “It is the exciting products
that are hard to forecast,” says Martin Smith, Head of the Manufacturing Industries Practice at
PA Consulting.
C The continuation of pre-Christmas sell-outs, despite the use of sophisticated forecasting
tools, has led to suspicions that companies ration the supply or even withhold “must-have” goods
to create interest among consumers. PA Consulting’s Martin Smith thinks this is unlikely. “If
companies run out of stock, it won’t help them maximize the profits they can make from a new
product.”
D But Yossi Sheffi, Director of Massachusetts Institute of Technology’s Centre for
Transportation and Logistics, says it is not unusual for companies to announce expected
shortages when launching a new product. “People want more of something that is scarce. Most
manufacturers will give newspapers these stories because they increase demand and help future
sales.”
E But the danger is that actual shortages, especially in the period up to Christmas, will alienate
customers, as well as lose potential sales. Another risk of running out of a “must-have” product
is that when supplies start again, the fashion may have passed. This can leave companies with
unwanted stock.
F Getting stock levels right is not so much about perfecting forecasts as about building
flexibility into the supply chain. Where possible, that means broadening the supply base so that
manufacturers can step up production quickly in different locations, and use components from
different sources.
G According to Professor Sheffi, one example of this kind of multi-sourcing is Hewlett-
Packard. HP makes Deskjet printers for North America in plants in Vancouver and Singapore.
Vancouver is more flexible and closer to the market, but more costly. So, HP gives stable, high-
volume production to Singapore and uses Vancouver to meet temporary surges in demand.
H Agreeing flexible contracts with suppliers is another solution that enables companies to
increase or decrease production rapidly. Jabil Circuit, a US electronic manufacturing services
company, requires suppliers to be able to boost deliveries by 25 per cent with a week’s notice,
and by 100 per cent with four weeks’ notice.
I Forecasting can be made more accurate by collecting together predictions of customer
demand across a wide region rather than responding on a store-by-store basis, according to
Professor Sheffi. By using common components in different products, companies can also put
together their forecasts for these products to give a more accurate picture of demand for the
parts.
J A responsive supply chain depends on good communication between all its participants. In
companies that do this well, there is a free flow of information, says Professor Sheffi. “For
example, Toyota displays continuous production reports in its plants, and Dell updates managers
hourly on production.”
VOCABULARY
A. Definitions.
1. Match these words and phrases from the article with their meanings.
1. Forecasting
2. Sell-out
3. Ration
4. Withhold
5. Run out (of)
6. Scarce
7. Alienate
8. Must-have products
9. Multi-sourcing
10. Notice
a) Cause to dislike
b) Not easy to find or obtain
c) Sourcing from a lot of different suppliers
d) Predicting future demand
e) Control the supply of something
f) When products have sold so well that there are none left
g) Information given in advance about when something is happening
h) Use up all of something
i) Products that everybody wants
j) Deliberately keep something back
2. Find five words from Exercise 1 used for talking about product shortages.
3. Organize the words from Exercise 2 into three groups: nouns, verbs, adjectives.
4. Which word in Exercise 2 has the same meaning as in short supply?
B. Sentence completion.
Complete the sentences using words from Exercise A.
1. By creating the impression that “must-have” products are …, companies hope to increase
interest and push up demand.
2. When launching new products, there is a suspicion that companies like Apple deliberately
… or even … stock as a way of stimulating demand.
3. The risk of … … of stock is that customers will get frustrated and buy a competitor’s
product.
4. Product shortages can quickly result in empty shelves and complete … ….
5. Because sales were higher than expected, the new LX40 was … … … until production
could be increased.
D. Synonyms.
1. Find adjectives in the article which mean the same as these words.
1. Correct (paragraph B)
2. Difficult (paragraph B)
3. Advanced (paragraph C)
4. Real (paragraph E)
5. Nearer (paragraph G)
6. Expensive (paragraph G)
7. Exact (paragraph I)
8. Shared (paragraph I)
9. Quick to react (paragraph J)
10. Unrestricted (paragraph J)
2. Find another noun in paragraph I which means forecasts.
E. Prepositions.
Complete these sentences using the prepositions in the box.
at by from in in of on to to up with
1. Forecasting demand correctly and getting products … the right place … the right time are
challenges all companies face.
2. Manufacturers need sophisticated forecasting tools to predict unexpected increases …
demand, especially … the period … … Christmas.
3. Make sure suppliers have the capacity to handle increased demand as part … normal
service.
4. Choose flexible suppliers, for example those who are able to increase deliveries … 25 per
cent … just a few weeks’ notice.
5. Increase your supply base so that you buy components … different sources.
6. Forecasting demand correctly depends … having the right forecasting tools.
Going Offshore
READING
1. Read the article and say whether these statements are true or false.
A The argument for global sourcing and taking advantage of the lower cost of labour for
manufacturing in Eastern Europe and the Bric countries – Brazil, Russia, India, China – was
mainly based on the cost of transport, which decreased by a third between 1960 and 2000.
B However, in our research and others’ research, we found that none of the companies that had
gone global achieved all the cost efficiencies they had predicted. Some even found that
“offshoring” operations was more expensive than sourcing or manufacturing locally, and so have
returned to their home country.
C The cost of logistics may be a lot more important than originally estimated. Proctor &
Gamble management, for example, reported that the company’s storage and transport costs were
higher than the operating expenses of its factories abroad. Other companies found that the
product cost was much lower, but the price for lower costs was often reduced quality.
D Companies make two common mistakes when deciding to source components from abroad.
First, they only tend to calculate the “static” cost of a supply chain. That is basically the cost per
unit ex-supplier factory and the transport cost together. With global sourcing, the lower labour
cost reduces the unit cost of the product. This generally offsets the higher transport cost of
bringing it into the home market from China. Often companies ignore or underestimate other
costs. An example of this is the additional cost for buffer stocks, as a long supply chain is less
able to respond quickly to changes in demand.
E Second, companies often assume that costs remain stable and do not consider what we call
“dynamic” costs. The belief is that countries in Eastern Europe, China and India have an
unlimited supply of low-cost labour. Although this is certainly still true for China and India, the
reality is that these workers are not always trained to the necessary level. Finding the right staff
can be a challenge.
F Car manufacturers relocating to Slovakia in Eastern Europe, for example, will find that the
supply of trained workers has been almost exhausted and that wage inflation is rising fast as
manufacturers compete for labour. In India, trained staff will change jobs several times per year
if they see the chance of higher salaries elsewhere, and staff turnover of 20% has become
normal. In China, a trained middle manager in the car sector, fluent in English and Mandarin,
can earn more in Shanghai than in Wolfsburg or Birmingham.
G Our research suggests that manufacturing will increasingly come back to where the markets
are. “Backshoring”, as we call it, does not mean that all manufacturing will come back. The
emerging countries are also very large markets, and local production will still serve local
consumption there. In the future, companies will need to think about having networks of smaller
flexible plants that can produce customized products for local markets.
VOCABULARY
A. Definitions.
Match these words and phrases from the article with their meanings.
1. Labour
2. Cost efficiencies
3. Offshoring
4. Expenses
5. Ex-supplier factory
6. Unit cost
7. Buffer stocks
8. Wage inflation
9. Staff turnover
10. Emerging countries
a. Countries with less-developed economies that are expected to experience lots of growth.
b. The cost of an item at the supplier’s factory, not including delivery charges.
c. The rate at which people leave an organization and are replaced by others.
d. All the people available to work in a country.
e. A general rise in rates of pay, e.g. in a particular country.
f. Extra quantities of stock that are kept in case they are needed.
g. When a company moves part of its operations to another, often cheaper country.
h. Ways of saving money or wasting less money.
i. Price per item.
j. Money a company spends in order to operate.
B. Word partnerships.
1. Match the adjectives with the nouns to make word partnerships from the article.
1. Global a. labour
2. Operating b. production/markets
3. Low-cost c. expenses
4. Trained d. products
5. Local e. sourcing
6. Customized f. staff/workers
2. Find at least three nouns in the article that go before the noun cost.
C. Sentence completion.
Use words and phrases from exercises A and B to complete these sentences.
1. Many companies are finding that g__________ s__________ and manufacturing no
longer make sense. One of the problems is high o__________ e__________. Another
problem is increasing levels of w__________ i__________.
2. Even in e__________ c__________ with l__________-c__________ l__________, like
China and India, there are signs that there are shortages of t__________ w__________
with the right skills.
3. In the future, manufacturers may have smaller production units that will produce
c__________ p__________ to meet the needs of the l__________ m__________.
4. In order to ensure that a business always has the correct amount of stock, most companies
hold b__________ s__________.
5. Manufacturers are constantly looking for ways to make their operations more efficient
and achieve c__________ e__________ in their supply chains.
D. Word search.
Find words and phrases in the article which have a similar meaning.
1. Calculated approximately (paragraph C)
2. Usually do something (paragraph D)
3. Balances (paragraph D)
4. Not to consider (paragraph D)
5. Make an estimate that is too low (paragraph D)
6. Believe something is true (paragraph E)
7. Stay the same (paragraph E)
8. Used up (paragraph F)
E. Understanding expressions.
Find these two terms in the article. Then choose the best explanation for each one.
1. “static” costs (paragraph D)
2. “dynamic” costs (paragraph E)
a) Costs that are rising all the time.
b) Costs that are predictable and don’t change a lot.
c) Costs that are fixed at a low price.
d) Costs that vary and are continuously changing.
ЛИТЕРАТУРА
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2009 – 95 с.
2. O’Driscoll, Nina. Market Leader. Logistics Management. / Nina O’Driscoll, Adrian Pilbeam.
– Pearson Education Limited, 2010 – 97 с.
3. D’Acunto, Ernesto. Flash on English for Transport and Logistics. / Ernesto D’Acunto. – Eli
Publishing Ltd, 2012 – 49 с.
4. Rushton, Alan. The handbook of logistics and distribution management. / Alan Rushton, Phil
Croucher, Peter Baker.—3rd ed. – Kogan Page Limited, 2006 – 612 с.
5. Caramia, Massimiliano. Multi-Objective Management In Freight Logistics. / Massimiliano
Caramia, Paolo Dell’Olmo. – Springer-Verlag London Limited, 2008 – 187 с.
6. Gleissner, Harald. Logistics. Basics – Exercises – Case Studies / Harald Gleissner, J. Christian
Femerling. - Springer International Publishing Switzerland, 2013 – 311 с.
7. Lowe, David. The Dictionary of Transport and Logistics. / David Lowe. – Kogan Page
Limited, 2002 – 282 с.