LOGISTICS

 

LOGISTICS

Before reading the text check the meaning of the Key Words in the dictionary.

 

Nouns: goods, flow, resources, consumer, consumption, user, product, producer, storage, retailer, inventory, warehouse, destination, re-engineering, customs, taxes, duties, logistician

Verbs: to consume, to handle, to include, to require, to comprise, to produce, to manufacture, to manage, to purchase, to sell, to implement, to perform, to ensure, to increase, to decrease, to pack

 

Logistics can be defined as the management of the flow of goods, information and other resources, energy and people between the point of origin and the point of consumption in order to meet the requirements of consumers. Logistics involves the integration of information, transportation, inventory, warehousing, material- handling, packaging and security. Logistics may have an internal focus (inbound logistics), or external focus (outbound logistics).

If the company manufactures a product from parts purchased from suppliers, and those products are then sold to customers, one can speak about a supply chain. Supply Chain can be defined as a network of facilities and distribution options that performs the function of procurement of materials, transformation of these materials into intermediate and finished products, and the distribution of these finished products to customers.

Logistics management is part of supply chain management. Logistics management plans, implements, and controls the efficient flow and storage of goods, services and related information between the point of origin and the point of consumption in order to meet customers’ requirements.

 

Successful supply chain operators work in close partnerships with their customers; they jointly explore the opportunities for increasing efficiency of the supply chain and improving service levels by using the latest systems and techniques. This approach is also referred to as logistics re-engineering. The re-engineering process considers the following factors: the nature of the product, the optimal or preferred location of source or manufacture, freight and transport costs and the destination market, seasonal trends, import and export regulations, customs duties and taxes, etc.

A professional working in the field of logistics management is called a logistician. The main functions of a qualified logistician include, among other things, inventory management, purchasing, transportation, warehousing, consultation and organizing and planning of these activities. Logisticians are responsible for the life cycle and supply chain operations of a variety of products. They are also responsible for customs documentation. They regularly work with other departments to ensure that the customers’ needs and requirements are met.

 

UNDERSTANDING THE MAIN POINTS

1. Review questions.

1. What does the term “logistics” imply?
2. What does the term “supply chain” imply?
3. What is logistics management?
4. What do service providers do in order to increase efficiency of the supply chain?
5. What process is called “logistics re-engineering”?
6. What factors does this process consider?
7. What are the main functions of a qualified logistician?
8. What are professional logisticians responsible for?

 

2. Decide whether the following statements are true or false.

1. Logistics can be defined as the management of the flow of goods between the point of origin and the point of consumption.
2. Logistics involves the integration of information, transportation, inventory, warehousing, etc.
3. Usually, logistics does not involve the management of the flow of energy and people.
4. Logistics always has an external focus.
5. All supply chains are very simple.
6. The complexity of the supply chain will vary with the size of the business.
7. Logistics management is part of supply chain management.
8. Logistics management plans, implements, and controls the efficient flow and storage of goods, services and related information.
9. Successful supply chain operators work in close partnerships with their customers.
10. The re-engineering process does not consider the nature of the product.
11. A professional working in the field of logistics management is called an academician.
12. The main functions of a qualified logistician include, inventory management, purchasing, transportation, warehousing, etc.
13. Logisticians are responsible for the life cycle and supply chain operations of a variety of products.
14. Logisticians normally do not work with other departments of the company.

 

3. Match the parts you find under A with the parts under B to make meaningful sentences.

 

A	B
1) Supply chain	a) work in close partnerships with their customers
2) Successful supply chain operators	b) inventory management, purchasing, transportation, and warehousing
3) Service providers	c) the integration of information, transportation, inventory, warehousing, material-handling, and packaging, and security
4) The re-engineering process considers	d) is the ability to ensure that the right products are sourced, made available at the right place and at the right time
5) Logistics involves	e) to ensure customer needs and requirements are met
6) The main functions of a qualified logistician include	f) the nature of the product, the optimal or preferred location of source or manufacture, the projected volumes freight, etc.
7) Logisticians work with other departments	g) use the latest systems and techniques to re-engineer the process