Logistics and Supply Chain Management (Логистика и управление цепями поставок)

UNIT 1

INTRODUCTION TO LOGISTICS

1. Read the following international words. Define their meanings comparing them to the meanings of the corresponding Russian words:

concept, control, courier, deterioration, distribution, effective, formal, financial, geographical, information, integration, logistics, machine, material, organization, personnel, plan, positioning, practical, process, product, resource, service, strategy, system, transportation, uniform.

2. Complete the following table using suitable forms:

3. Translate English words and phrases in column A using Russian words and phrases from column B:

4. Observe the words and phrases from the text “Logistics”:

5. Read and translate the text:

Logistics is the management of the flow of goods, information and other resources 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, and packaging, and occasionally security. Logistics is a channel of the supply chain which adds the value of time and place utility.

A professional working in the field of logistics management is called a logistician. Professional logisticians are often certified by professional associations. Some universities and academic institutions train students as logisticians, offering undergraduate and postgraduate programs. The main functions of a qualified logistician include inventory management, purchasing, transportation, warehousing, consultation and the organizing and planning of these activities. Logisticians combine a professional knowledge of each of these functions to coordinate resources in an organization.

The Oxford English Dictionary defines logistics as "the branch of military science having to do with procuring, maintaining and transporting materiel, personnel and facilities." Another dictionary definition is "the time-related positioning of resources." As such, logistics is commonly seen as a branch of engineering that creates "people systems" rather than "machine systems.

Logistics is considered to have originated in the military's need to supply themselves with arms, ammunition and rations as they moved from their base to a forward position. The term logistics comes from the Greek logos (λόγος), meaning "speech, reason, ratio, rationality, language, and phrase". In ancient Greek, Roman and Byzantine empires, military officers with the title Logistikas were responsible for financial and supply distribution matters.

Supply chain management in military logistics often deals with a number of variables1 in predicting cost, deterioration, consumption, and future demand. For instance, peacetime consumption of ammunition and fuel will be considerably less than wartime consumption of these items, whereas other classes of supply such as subsistence and clothing have a relatively consistent consumption rate regardless of war or peace. Troops will always require uniform and food. More troops will require equally more uniforms and food. History has shown that good logistical planning creates a lean and efficient fighting force. Lack thereof can lead to a clunky2, slow, and ill-equipped force with too much or too little supply. In history, some have attributed the defeat of the British in the American War of Independence and the defeat of the Axis in the African theatre of World War II to logistical failure.

Logistics as a business concept evolved in the 1950s due to the increasing complexity of supplying businesses with materials and shipping out products in an increasingly globalized supply chain, leading to a call for experts called supply chain logisticians. Business logistics can be defined as "having the right item in the right quantity at the right time at the right place for the right price in the right condition to the right customer", and is the science of process and incorporates all industry sectors.

The term production logistics is used to describe logistic processes within an industry. The purpose of production logistics is to ensure that each machine and workstation is being fed with the right product in the right quantity and quality at the right time. The concern is not the transportation itself, but to streamline and control the flow through valueadding processes and eliminate non–value-adding ones. Today the complexity of production logistics can be modeled, analyzed, visualized and optimized by plant simulation software.

6. Give English equivalents for the words and phrases given below:

будущий спрос; вывоз продуктов; добавленная стоимость; закупки; концепция бизнеса; логист; передовая позиция; плохо вооруженный; потребление; программное обеспечение моделирования на предприятии; производственная логистика; товарный поток; транспортировка; управление материальными запасами; упаковывание; цепочка поставок.

7. Complete the sentences using words and expressions given below:

material handling; non–value-adding; quality; consultation; shipping out; inventory; quantity; ill-equipped; logistician; supply; consumption; distribution; streamline; cost; purchasing.

1. Logistics involves the integration of information, transportation.........1, warehousing, ...........2 and packaging.

2. In Greek, Roman and Byzantine empires, Logistikas were responsible for financial and supply.........3.

3. Supply chain management in military logistics means predicting ......4, deterioration, .........5, and future demand.

4. The lack of effective logistical planning can lead to a slow, and .........6 force with too little supply.

5. Logistics as a business concept developed due to the complexities of supplying businesses with materials and ............7 products in the globalized .........8 chain.

6. In production logistics feeding each machine and workstation with the right product in the right.........9 and ..........10 at the right time is of great importance.

7. It is necessary to .........11 and control the flow through value-adding processes and eliminate ...............12 ones.

8. A person working in the logistics field is a ............13

9. The main functions of a qualified logistician are inventory management.........14, transportation, warehousing, ............15 and the organizing and planning of these activities.

8. Answer the questions:

1. What is the definition of the word “logistics”?

2. How are the practitioners working in the field of logistics called?

3. What different meanings does the word “logistics” have in the Greek language?

4. What were the military officers in ancient Greek, Roman and Byzantine Empires responsible for?

5. How does the Oxford English Dictionary define “logistics”?

6. Why is it important to manage and to move resources to the places where they are needed in military logistics?

7. What historic events are considered to be the result of the logistical failure?

8. What was the reason of appearing the business logistics?

9. What is the purpose of production logistics?

9. Translate the sentences using the text “Logistics”:

1. Задачи, решаемые логистикой – это сбор информации, транспортировка груза, управление запасами, хранение товар, упаковка товаров, таможенные услуги и многое другое.

2. Логистика – это процесс управления и контроля материальными, информационными и финансовыми потоками, хранения товаров и услуг от пункта производства до пункта потребления.

3. «Логистика» происходит от греческого слова logistice, что означает «искусство вычислять».

4. Логистика – это наука о планировании и контроле, о транспортировании и складировании, о внутризаводской переработке сырья и материалов, о доставке готовой продукции до потребителя, об анализе и переработке информации.

5. В Оксфордском словаре английского языка логистика определяется как «военная наука, связанная со снабжением, поддержкой, транспортировкой материалов и людей».

6. В Византийской империи при дворе императора были «логистики», в обязанности которых входили вопросы финансов, поставки и распределения продуктов питания.

7. В военное время снабжение линий своей армии одновременно с подрывом линий противника является важным элементом тактики военной стратегии.

8. Потребление боеприпасов и топлива в мирное время значительно меньше их потребления в военное время.

9. Эффективное логистическое планирование способствует эффективности боевой силы армии.

10. Управление цепями поставок в военной логистике подразумевает расчет затрат, потребления и будущего спроса.

11. Цель логистики можно считать достигнутой, если определенный продукт необходимого качества доставлен нужному потребителю по удовлетворяющей его цене, в необходимом количестве, в нужное время и в нужное место.

12. Профессионал, работающий в сфере логистики, называется логистом.

13. Главная задача производственной логистики – это обеспечение производства продукции необходимого качества и количества в установленные сроки.

10. Complete the sentences in present simple or present continuous using given verbs in brackets (See Language Notes):

1. When large population displacements .....1 (take) place, whether spontaneous or organized, humanitarian assistance......2 (become) crucial – and urgent.

2. The purpose of the procurement process is to make sure that the organizations involved in relief management ......3 (have) the resources needed to meet identified needs.

3. Right now the trucks .......4 (deliver) aid to the people affected by a disaster.

4. If the disaster .......5 (destroy) most homes in a given area, large local “migrations” may take place within the same urban environment, as victims ......6 (look) for shelter in the homes of relatives and friends.

5. Transport is the means whereby supplies .....7 (reach) the places where they are needed.

6. They .....8 (deliver) the emergency supplies to ultimate recipients now.

7. In the case of mass displacements of people, the victims usually ......9 (not carry) much provision.

8. At the moment we.....10 (observe) the most effective use of available resources.

9. Procurement, storage, mobilization, distribution ......11 (require) an organizational structure.

10. We are observing now that trucks and trains ......... 12 (transfer) enough resources to cover the needs of an affected area.

11. Make the dialogue “Logistics” according to the given plan:

A. The definition of logistics.

B. Professional logisticians.

C. The definition of logistics from the Oxford English Dictionary.

D. The origin of the term “logistics”.

E. The importance of supply chain management in military logistics.

F. A good logistical planning as a condition of the efficient fighting force.

G. Business logistics.

H. Production logistics.

Prompts for asking for opinions, making suggestions.

What do you think? What’s your opinion? What’s your view?

I think. I don’t think. In my opinion…That’s true.

I agree…Absolutely! Exactly.

I think so too.

I see. I know what you mean, but.

I’m afraid I can’t agree…I think we should.

Maybe, but…How about…? Why don’t we…? Maybe! Perhaps we could.

UNIT 2

LOGISTICS COMPANY

1. Read the following international words. Define their meanings comparing them to the meanings of the corresponding Russian words:

brand, business, company, contract, courier, design, document, express, fact, global, industry, international, leader, management, myriad, ocean, office, project, start, terminal, territory.

2. Complete the table using suitable forms:

3. Translate English words and phrases in column A using Russian words and phrases from column B:

4. Observe the words and phrases from the text “History and Background of DHL”:

5. Read and translate the text:

In order to understand the concepts of logistics in terms of practical usage and to glimpse into the how a real company or organization uses logistics as a formidable3 tool to gain customer satisfaction, reduce overall cost and increase efficiency we selected “DHL”, the world’s leading courier service company. But DHL is multi faceted and offers myriad types of services. DHL are the first letters of the last names of the three company founders, Adrian Dalsey, Larry Hillblom and Robert Lynn.

In 1969, just months after the world had marveled4 at Neil Armstrong’s first steps on the Moon; the three partners took another small step that would have a profound impact on the way the world does business. The founders began to personally ship papers by airplane from San Francisco to Honolulu, beginning customs clearance of the ship’s cargo before the actual arrival of the ship and dramatically reducing waiting time in the harbor. Customers stood to save a fortune.

With this concept, a new industry was born: international air express, the rapid delivery of documents and shipments by airplane.

The DHL Network continued to grow at an incredible pace. The company expanded westward from Hawaii into the Far East and Pacific Rim5, then the Middle East, Africa and Europe. By 1988, DHL was already present in 170 countries and had 16,000 employees.

At the beginning of 2002, Deutsche Post World Net became the major shareholder in DHL. By the end of 2002, DHL was 100 % owned by Deutsche Post World Net. In 2003, Deutsche Post World Net consolidated all of its express and logistics activities into one single brand, DHL.

DHL is the global market leader in international express, overland transport and air freight. It is also the world’s number 1 in ocean freight and contract logistics. DHL offers a full range of customized solutions – from express document shipping to supply chain management.

Below are the global facts and figures that show you the scale of the world's largest express and logistics network.

Number of Employees: around 285,000

Number of Offices: around 6,500

Number of Hubs, Warehouses & Terminals: more than 450

Number of Gateways: 240

Number of Aircraft: 420

Number of Vehicles: 76,200

Number of Countries & Territories: more than 220

Shipments per Year: more than 1.5 billion Destinations Covered: 120,000

The reason for the success of DHL is due to its very effective and efficient way of carrying out the process of project management.

Project Management

DHL manages projects according to a six-step process:

Initiation: The formal start of the project

Design: The formal agreement on how to approach the project and its deliverables

Planning: Following agreement, a detailed plan is created

Execution: After detailed planning and preparation, the project goes 'live'

Closing: Gradually phase out and prepare for handover of the deliverables

Handover: The formal end of the project

6. Match the synonyms:

7. Give English equivalents for the words and phrases given below:

виды деятельности по срочному и материально-техническому обеспечению; выполнение процесса; гавань; детальный план; кардинально; контрактная логистика; логистическая сеть; многогранный; обособленный бренд; объединять; практическое использование; с невероятной скоростью; сильное воздействие; склад; соглашение; сотрудник, управление проектами; фактическое прибытие судна; цифра, 6-шаговый процесс; эффективный способ.

8. Complete the sentences using words and expressions given below:

clearance; overland; waiting time, contract; document; shareholder, to ship, carrying out, project, express; shipments; logistics.

1. The founders of DHL began to .........1 papers by airplane from San Francisco to Honolulu, beginning customs .........2 of the ship's cargo before the actual arrival of the ship and reducing .................3 in the harbor.

2. International air .........4 is the rapid delivery of documents and ............5 by airplane.

3. Deutsche Post World Net became the major ..........6 in DHL.

4. Deutsche Post World Net consolidated express and .........7 activities into a single brand.

5. DHL is the global market leader in international express, ...........8 transport and air freight.

6. DHL is the company number one in ocean freight and .........9 logistics.

7. The customized solutions of the company are express ..........10 shipping to supply chain management.

8. The reason for the success of DHL is due to its very effective and efficient way of .............11 the process of .........12 management.

9. Answer the questions:

1. Who were the founders of DHL?

2. What was the primary purpose of DHL?

3. What industry did this company give birth to?

4. How big was the expansion of DHL over the world?

5. What company had the biggest quantity of shares in DHL?

6. DHL logistics services and customized solutions are various, aren’t they? Name them.

7. Why is DHL a vey successful logistics company?

8. What are the steps of each DHL project?

10. Translate the sentences using the text “History and Background of DHL”:

1. DHL – международная компания, один из лидеров мирового рынка экспресс-доставки.

2. DHL была основана 20 сентября 1969 году как курьерская служба для перевозки почты между Сан-Франциско и Гонолулу.

3. Название компании образовано по первым буквам фамилий ее основателей.

4. DHL предлагает широкий набор решений для покупателя.

5. Эффективность процесса проектного управления является основой успеха DHL.

6. Процесс управления проектами в компании DHL включает 6 шагов: 1) инициация; 2) проектирование; 3) планирование; 4) исполнение; 5) закрытие; 6) передача.

7. К 1988 г. компания расширила сферу своей деятельности: она уже присутствовала в 170 странах.

8. В 2002 г. главным держателем акций DHL была компания Deutsche Post World Net.

9. Компания Deutsche Post World Net объединила все свои услуги по экспресс-доставке в единый бренд – DHL.

11. Complete the sentences using prepositions in the box (See Language Notes):

1. DHL’s whole business is dependent ......1 the vital point of timely delivery.

2. DHL owns its success ......2 the efficiency .......3 which the operations are carried out.

3. Not only the company but the sender and sometimes the receiver can track the goods ........4 their information center.

4. DHL has developed a reputation ......5 consistently developing innovative solutions that streamline operations and improve control.

5. DHL in-house teams have contributed ......6 the solutions design of some of the world's leading brands and enabled to win key contacts.

6. DHL solutions design team offers a wide portfolio of expertise and services, .......7 logistics network strategy, transport design, warehouse design and simulation, through .....8 operational improvement and inventory analysis.

7. DHL’s international supply chain management solutions are focused .....9 helping customers take increased control of international inbound supply chain to maximize the value of international and global sourcing.

8. The management of logistics is concerned .......10 the movement and storage of materials and finished products.

12. Retell the text “History and Background of DHL” according to the plan:

A. History and background of DHL.

B. Expansion of DHL to the continents.

C. Major shareholders of DHL.

D. Areas where DHL is the global market leader.

E. World expansion of the largest express and logistics network.

F. Basic steps in the project management of DHL.

13. Make the dialogue: talk with a manager of “DHL” company about the services provided by the company:

Useful language: Answering the phone

Hello, Jonathan Young speaking.

Good morning, DHL.

I’d like to speak to…

One moment, please.

Could I have the sales department, please?

My name’s Marta Blanco.

Marta Blanco speaking......

I’m calling about.........

The reason I’m calling is....

Could you name the main services you are offering?

Could we meet on Monday at 10.30?

How / What about April 10h?

Is 11.15 convenient/OK?

Formal style

Dear Mr. Smith

I would like to…

I would be grateful if you could....

I look forward to hearing....

Could you give me some information about…?

I would appreciate if you can share your thoughts of…

UNIT 3

LOGISTICS TERMS AND ACRONYMS

1. Read the following international words. Define their meanings comparing them to the meanings of the corresponding Russian words:

computer, distribution, form, international, monitoring, national, organization, passive, physical, program, radio, satellite, separation, standards, system, technology, transmission.

2. Complete the table using suitable forms: