A LOGISTICAL NIGHTMARE?
Logistics covers everything that is required to move something safely from one place to another, often within a certain period of time. It’s not just about transportation, however. Logistics is a complex process, and managing it requires excellent organizational skills and a solid knowledge of international regulations. Informally, we often talk about something that is difficult to organize as being a “logistical nightmare”.
1. The right service (7 points)
Lucy will have to choose which companies to work with so that Lightright-up’s products are delivered to the customer on time. Match the people or organizations (A–G) to the services they offer (1–7).
A. freight forwarder
B. consignee
C. wholesaler
D. carrier
E. haulier
F. customs broker
G. end user
1. This person or company ensures that all the necessary rules are followed and customs duties are paid so that goods can be exported or imported.
2. This person or company sells large quantities of goods to shops or other businesses.
3. This company moves goods only by road. 4. This company is ultimately responsible for organizing every stage of the logistics process, including documentation.
5. This person is the ultimate buyer of the goods.
6. This company transports goods by air, sea or road. It may own planes, ships or lorries, or it may simply lease space on board these.
7. This person or company receives the goods.
A– ; B– ; C– ; D– ; E– ; F– ; G–
2. The right goods (8 points)
Lucy will have to classify their goods into the right category, as this could affect the means of transport and the costs. The words in bold in the sentences below are not where they should be. Put them where they belong.
A. The basic material from which a product is made, such as iron ore, is classified as
waste material.
B. Products that do not keep long or go bad quickly, such as fish and flowers, are classified as hazardous products. C. Dangerous items, including batteries and perfumes, are classified as raw goods.
D. Old metal and machines that still have a value are known as finished material.
E. Some car engines can be classified as
perishable goods, as they will be used in the production of another product.
F. Products that have not been completely assembled can also be classified as semi
flammable goods. G. Rubbish or garbage is classified as
salvage.
H. Products that can catch fire easily must be labelled as intermediate.
3. A greener focus (9 points)
For the products to arrive in one piece and in good condition, the packaging must be right. Rearrange the letters to complete this dialogue about the company’s packaging options.
Lucy: The Americans have told me that our packaging has to change. It’s not
(A) (reneg) enough.
Greg: But all our boxes are made from
(B) (cyrelecd) cardboard that is also (C) FSC- (ficteierd). Lucy: Yes, that’s true. But it’s our (D)
-fill (seolo) packaging that’s causing us problems.
Greg: Oh, you mean the (E)
(bbbule) wrap! Everyone loves to pop it! Lucy: Not any more. It’s made of plastic. We need to think about (F) eco
(fenrdlerii) alternatives on the inside of the boxes. Terry, could you tell us more? Terry: Last year, we replaced the (G)
(paededxn) polystyrene foam in our boxes with (H) (iblatnflae) air pillows. This year, we want to use
(I) (egbrddaibloae) peanuts — they break down naturally and rapidly. I’ve spoken to a number of firms who specialize in this area. I’d like to present some interesting options to you today.
4. What does it mean? (6 points)
A lot of abbreviations are used in logistics. If Lucy wants to understand what’s happening, she has to learn what they mean. Choose the correct option in each sentence below.
A. “HGV” is short for heavy goods vehicle / heavy goods vessel. This could be a lorry, which is called a “truck” in US English.
B. “RFID” stands for ray frequency identification / radio frequency identification and is necessary to track where the goods are.
C. “EDI” stands for electronic data interface / electronic data interchange. It is a technology that enables the paperless exchange of documents necessary for logistics operations.
D. “3PL”, short for third-party logistics / thirdparts logistics, refers to an external company that provides one or more logistic services, such as warehousing.
E. “POD” stands for point of delivery / proof of delivery and is the document that includes the time of delivery, the full delivery address, as well as the name and signature of the person who accepted the shipment.
F. “SCM” is the abbreviation for supply chain management / supply cost management. This is the design, control and monitoring of the flow of goods and services.
5. The right documents (9 points)
Complete the text with the correct options from the box.
commercial credit declaration
exchange forma lading
licence origin waybill
6. Who bears the most risk? (5 points)
When Lucy agrees to the terms of delivery, she needs to know exactly when the ownership is transferred from her, the seller, to the US firm, the buyer. Decide whether the abbreviations for the various options are correct or incorrect.
A. The buyer owns the goods as soon as they leave the seller’s property. This is EXW.
B. The buyer owns the goods as soon as they are placed on board the ship. The seller has to pay all insurance and costs to the port of destination. This is FOB.
C. The buyer owns the goods as soon as they are placed on board the ship. The buyer has to pay all insurance and transportation costs. This is CIP.
D. The buyer owns the goods when they arrive at the named place in the country of destination. All customs duties are paid by the seller. This is DDP.
E. The buyer owns the goods as soon as they are on the ship, plane or lorry. The seller pays for the cost of insurance and transportation to a named place of destination. This is CIF.
7. A smarter warehouse (6 points)
Lucy visits a modern logistics centre to see how they organize their goods and shipments. Complete the explanation below from the owner of the centre with the correct verbs. We’ve given you the first two letters of each word.
We take SCM very seriously. Since changing to an automated system, we can (A) fu orders much faster. This is the warehouse where we (B) st all our finished products. We have to (C) la every item with a bar code, so that we can track and (D) tr everything in real time. Also, thanks to smart logistics, we can (E) lo any item at any time. Our automated guided vehicles are programmed to
(F) pi up the goods and stack them on the high-rack shelves. That saves us warehouse space — and costs. But the goods don’t stay long — they’re out the door within 24 hours. Now, here’s my favourite piece of technology: our drone. It’s the future solution for the last mile!