English For Logistics

INTRODUCTION TO LOGISTICS
Topical Vocabulary
Translate to Spanish
Logistics
Logistics cost -
Logistics support -
Freight –
Freight flow –
Storage
Storage of goods –
Storage and transportation facilities
Supply -
Supplier –
Supply chain -
flow -
flow of goods -
Capital flow (flow of capital) –
Inventory -
In-process inventory -
Efficiency -
Consumption -
Execution –
Procurement –;
Stationing –
Personnel -
Accomplishment -
Volume –
Consequence -
Congestion –
Supply chain management
Point of origin
Point of consumption
Consumer
Customer
Provider
Huge network
Warehousing and distribution
Intermediate product
Destination market
Seasonal trends
Import and export regulations
Customs duties and taxes
Inventory management
Delivery services
Order fulfilment.
Verbs and word-combinations with verbs
to access -
to achieve -
to achieve the objectives (purposes, aims) –
to achieve success –
to comprise -
to conform -
to consider -
to consume goods and services –
to demand a payment –
to distribute costs –
to emerge -
to entail expenses
to establish a committee —
to establish contact / relationship
to evaluate data —
to evolve in this direction –
to identify potential suppliers –
to implement a plan -
to incur costs –
to obtain –
to procure -
to refer (to) -
to require resources –
to store goods (inventory) –
Adjectives and adverbs
efficient -
rural -
urban –
secure -
interconnected -
extensive –
fragile -
(inter)dependent –
logistic (logistical) –
overall –
accessible -
sustained –
increasingly -
WORD STUDY
Ex. Form all possible word-combinations using the words of both columns and, if
necessary, given prepositions. Translate them into Spanish.
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. 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
1. Universal, total, all-embracing. ____________________

2. Easy to approach. ___________________
3. Located in the country, out of town. _______________________
4. Capable, competent; producing effect. ______________________
5. Safe, free from risk. _________________
6. Wide, large, all-round. ____________________
7. Belonging or related to logistics. __________________
8. Continuous, long-run, lasting, constant, steady. ______________
9. Delicate, unstable, short-lived. _________________
10. Relating to a town or a city. ___________________
Ex. Complete the following sentences with the appropriate words from the list below:
a. negative impacts b. storage of goods c. supply chain d. logistics e. consumption point

f. logistics operation g. transportation h. logistics support
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
LOGISTICS
"Logistics means having the right thing, at the right place, at the right time."
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.
THE IMPORTANCE OF LOGISTICS IN BUSINESS
Today, efficient logistics and transportation system are important prerequisites of the
development of any economy. In modern competitive environment, it is not enough to offer a
product that meet customers’ requirements. The way of its delivery is also very important.
The art and science of delivering goods with speed and precision can help businesses operate
more efficiently, lower costs and gain new customers.
Ex. 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. Answer the questions.
1. What does logistics refer to, in short?

2. Why did importance of logistics increase?
3. What has the globalization, the free market and the competition demanded?
4. What does the complexity of a logistic operation depend on?
5. How can logistics help you as a businessman?
6. What is logistics?
7. Can you give the definition of logistics in other words?
8. What does logistics management entail?
9. Is success of marketing, manufacturing and project accomplishment dependent on logistics
support?
10.What solutions does logistics need to find?
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. _______
Match the parts you find under A with the parts under B to make meaningful sentences.
1) Supply chain …………………………………………………………………………………………

2) Successful supply chain operators …………………………………………………………...............
3) Service providers …………………………………………………………………………………….
4) The re-engineering process considers ………………………………………………………………..
5) Logistics involves ……………………………………………………………………………………
6) The main functions of a qualified logistician include ……………………………………………….
7) Logisticians work with other departments …………………………………………………………..
B
a) work in close partnerships with their customers

b) inventory management, purchasing, transportation, and warehousing
c) the integration of information, transportation, inventory, warehousing, material-handling,
and packaging, and security
d) is the ability to ensure that the right products are sourced, made available at the right place
and at the right time
e) to ensure customer needs and requirements are met
f) the nature of the product, the optimal or preferred location of source or manufacture, the
projected volumes freight, etc.
g) use the latest systems and techniques to re-engineer the process
LISTENING AND SPEAKING
Make a list of all the different areas of logistics you can think of by completing the diagram
below.
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 _______________________.
Ex. 5. Match the words with the definitions.
1. carrier 2. freight forwarder 3. Supplier 4. haulage contractor/haulier

5. courier 6. consignee
a. company which carries goods by road _____

b. person or firm named in a freight contract to whom goods have been shipped or turned over
for care. _____
c. company that specializes in the speedy and secure delivery of small goods and packages. _____
d. company that transports or conveys goods. ______
e. company which supplies parts or services to another company; also called vendor. ______
f. person or business that arranges documentation and travel facilities for companies dispatching goods
to customers. _______
THE LOGISTICS INDUSTRY
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 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.
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.
3. Passenger transport manager
A passenger transport manager plans, coordinates and manages passenger transport operations,
which cover bus, train, tram, air, ship and ferry services. The job varies depending on the nature of the
transport system and the size and type of employer. Passenger transport managers, however, tend be
involved in the finances and budget of the transport services, marketing and PR, strategic development
and planning, and people management. They need to make sure a quality service is provided at the
right price. Job titles vary and the word 'passenger' will not necessarily appear in job advertisements.
Alternative titles include transport manager, operations/operating manager, depot manager and
customer services manager, depending on the focus of the role.
Specific tasks vary depending on the level of the role. Those in junior posts are involved in customer
contact and routine staff supervisions. While someone in a senior position takes on more strategic
planning and project management work. In general, common tasks carried out by a passenger transport
manager include: making sure the transport operation meets its performance and safety targets,
monitoring it and reporting to senior management; writing clear reports and presenting options and
recommendations to clients and senior management; advising on policy and strategic developments
and examining business decisions (pricing policy, level of service provision, timetable changes) to
assess their impact on passengers; ensuring that all operations are carried out in accordance with UK
and European Union laws and regulations, particularly relating to health and safety; managing and
supervising staff, organizing work and coordinating staff training; negotiating and managing contracts
and developing new business opportunities whenever possible; minimizing disruption and resolving
any unscheduled delays, having to make decisions in difficult situations; meeting passengers and
customers to deal with complaints and areas of concern; analyzing results of surveys on
passenger/customer satisfaction and starting new projects to improve performance; making sure that
transport services are available to all through social inclusion initiatives; marketing passenger services
to encourage greater passenger use of particular routes and methods of transport; liaising and
negotiating with different stakeholders including planning and highways authorities, residents,
councilors/politicians, developers and transport providers; identifying existing and possible future
transport problems, developing transport models and investigating the feasibility of alternative means
of transport; liaising with passenger watchdogs and other professional bodies; using IT systems for
tasks such as timetabling and managing usage flows.
4. Transport planner
Transport planners work on policies, plans and projects relating to all kinds of transport systems. This
includes roads and the use of cars, lorries and buses, rail networks, pedestrian systems for walking or
cycling, and air travel. Transport planners look at ways to improve these systems or how new systems
can be implemented in certain areas. They will take into consideration issues such as climate change, the
economy and the environment. The work of transport planners is often related to government policies
and initiatives, such as trying to change the travel behavior of people by encouraging them to reduce
their car use and take up walking, cycling or public transport. Work can be carried out on different
levels from local to international and may include tasks from initial ideas through to design, completion
and reviews.
There are a variety of tasks that can be carried out by transport planners and they often relate to the level
of the job and the size of the employers. Tasks could typically include: designing and interpreting
transport and travel surveys; writing clear reports and presenting options and recommendations on
transport systems to clients; using statistical analysis to examine travel data or accident records; forming
potential solutions to transport problems; using mathematical and computer simulation models to
forecast the effects of road improvements, policy changes and/or public transport schemes; evaluating
the benefits and costs of different strategies; participating in public consultation initiatives, including
designing leaflets or questionnaires and attending scheme exhibitions; managing studies and projects,
often within tight time and budget limits; assessing infrastructure requirements (access, car parking, bus
stops, cycle parking, etc) of new developments to support planning applications or to inform local
authority development plans; liaising and negotiating with different parties, e.g. planning and highways
authorities, residents' groups, councilors/politicians, developers, transport providers; developing the
initial design ideas for new or improved transport infrastructure, such as junction improvements,
pedestrian priority schemes, bus interchange or bus priority facilities, car parking areas, etc; acting as an
expert witness at public inquiries and planning appeals; writing bids for the funding of projects.
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.
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 themanager). 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.
SUPPLY CHAIN
Topical Vocabulary
Nouns and noun phrases
entity -
network of entities –
item –
invoice -
to send an invoice –
order -
purchase order -
sales order -
retailer -
retail shop(store) –
vendor -
warehouse -
to store in a warehouse –

to assemble -
to assemble from the parts –
to confuse (with) -
to convert -
to convert the material into products –
to deliver -
to deliver to the retailers –
to encompass –
to handle –
to handle a specific product –
to include -
to issue - выпускать, издавать;
to issue an order – оформлять заказ
to link - соединять, связывать;
to be linked by – быть связанным чем-либо
to offer – предлагать;
to offer for sale – предложить на продажу
to purchase - покупать, закупать;
to purchase the raw materials – закупать сырье
to require - нуждаться (в чём-л.); требовать (чего-л.);
to be required by the production department – требоваться в производственный отдел
to ship - перевозить (груз, товар);
to strive - стараться, стремиться, прилагать усилия

along – 1) вдоль, по; 2) по (в процессе);
along the supply chain –
complicated -
crucial -
a crucial process –
entire -
interlinked –
multiple -
particular –
a particular product –
specific -
ultimate -
ultimate user -
WORD STUDY
Insert the prepositions where necessary.
1. They assemble …watches in this unit.

2. The teacher confused the student … too many questions.
3. How much does it cost today to convert rubles … dollars?
4. The company has to deliver these goods … its customers from abroad.
5. The enemy encompassed … the city with their soldiers.
6. I have never handled … an automatic shift gear.
7. They offered … many solutions to a problem.
8. The problem requires … careful consideration.
9. The railway line links … the two towns together.
Match the verbs with their definitions or synonyms.
1. to assemble a) to emit, to give out;

2. to convert b) to try hard, to struggle;
3. to encompass c) to put together, to collect;
4. to include d) to transport, to send;
5. to issue e) to change, to transform;
6. to link f) to demand, to want, to need;
7. to offer g) to surround, to include;
8. to require h) to propose for acceptance;
9. to ship i) to comprise , to contain;
10. to strive j) to connect, to join.
Match the adjectives with their antonyms.

1. complicated a. common
2. crucial b. any, every
3. entire c. initial
4. interlinked d. easy
5. multiple e. partial
6. particular f. unimportant
7. specific g. unconnected
8. ultimate h. singular, single
READING ACTIVITIES
SUPPLY CHAIN
Supply Chain is an entire network of entities, directly or indirectly interlinked and interdependent in
serving the same consumer or customer. It comprises vendors that supply raw material, producers who
convert the material into products, warehouses that store, distribution centers that deliver to retailers and
retailers who bring the product to the ultimate user. Without supply chains, no producer has the ability to
give customers what they want, when and where they want, at the price they want.
It is the network created amongst different companies producing, handling and/or distributing a specific
product. Specifically, the supply chain encompasses the steps necessary to get a good or
service from the supplier to the customer. Supply chain management is a crucial process for many
companies, and many companies strive to have the most optimized supply chain because it usually results
in lower costs for the company. Quite often, many people confuse the term logistics with supply chain. In
general, logistics refers to the distribution process within the company whereas the supply chain includes
multiple companies such as suppliers, manufacturers, and retailers.
Supply chains include every company that comes into contact with a particular product. For example, the
supply chain for most products will encompass all the companies manufacturing parts for the product,
assembling it, delivering it and selling it. Some supply chains are simple, while others are rather
complicated. The complexity of the supply chain will vary with the size of the business and a number of
items that are manufactured.
Elements of the Supply Chain
A simple supply chain is made up of several elements that are linked by the movement of products along
it. The supply chain starts and ends with the customer.
Customer: The customers start the chain of events when they decide to purchase a product that a company
offers for sale. The customer contacts the sales department of the company, which issues the sales order
for products to be delivered on a specific date. If the product has to be manufactured, the production
facility will be involved.
Planning: The requirement activated by the customer’s sales order will be combined with other orders.
The planning department will create a production plan to produce the products to fulfill the customer’s
orders. To manufacture the products the company will then have to purchase the raw materials needed.
Purchasing: The purchasing department receives a list of raw materials and services required by the
production department to complete the customer’s orders. The purchasing department sends purchase
orders to selected suppliers to deliver the necessary raw materials.
Inventory: The raw materials received from the suppliers are moved into the warehouse. The raw
materials are stored until they are required by the production department.
Production: Based on a production plan, the raw materials are moved to the production area. The finished
products ordered by the customer are manufactured using the raw materials purchased from suppliers.
After the items have been completed and tested, they are stored back in the warehouse.
Transportation: When the finished products arrive in the warehouse, the shipping department determines
the most efficient method to ship the products so that they are delivered on or before the date specified by
the customer. When the goods are received by the customer, the company will send an invoice for the
delivered products.
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
Connect the beginnings of the sentences and their endings.
1. The supply chain encompasses the steps … .

2. Logistics refers to the distribution process within the company …
3. The supply chain for most products will encompass all the companies … .
4. The customer contacts the sales department of the company, ….
5. The planning department will create a production plan ….
6. The raw materials are stored … .
7. The finished products ordered by the customer are manufactured ….
8. When the finished products arrive in the warehouse, … .
a. … to produce the products to fulfill the customer’s orders.

b. … the shipping department determines the most efficient method to ship the products.
c. … necessary to get a good or service from the supplier to the customer.
d. … until they are required by the production department.
e. … whereas the supply chain includes multiple companies.
f. … which issues the sales order for products to be delivered on a specific date.
g. … using the raw materials purchased from suppliers.
h. … manufacturing parts for the product, assembling it, delivering it and selling it.
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.
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.
Answer the following questions.
1. What is a supply chain?

2. What does it comprise?
3. What companies do supply chains include?
4. What is a simple supply chain made up of?
5. Who does the supply chain start with?
6. When do the customers start the chain of events?
7. What does the sales department of the company issue?
8. Why will the planning department create a production plan?
9. What does the purchasing department do?
10.Where are the raw materials received from the suppliers moved into?
11.Where are the finished products ordered by the customer manufactured?
12.What does the shipping department do, when the finished products arrive in the
warehouse?
TRANSPORTATION
Topical Vocabulary
wagon –
freight wagon –
vessel –
engine –
engine-powered –
engineless -
jet engine –
truck –
cargo –
cargo ship –
fuel –
refueling -
pipe –
pipeline –
liquid –
gas – газ
natural gas –
petroleum –
pack animal (beast of burden) –
cart –
pedicab –
raft –
boat –
rowing boat –
sailing boat –
tugboat –
barge –
dugout –
glider –
hot-air balloon –
helicopter –
traffic –
traffic safety –
coal –
ore –
iron ore –
refinery –
depot –
distribution depot –
crate –
to haul –
to haul loads –
to provide –
to maintain –
to push –
to pull –
to tow –
to tow barges –
to limit –
chief -
chiefly –
heavy –
rear –
rear wheels –
sturdy –
inland –
inland waterway –
supersonic –
perishable –
perishable cargo –
lightweight –
private –
public –
public transportation –
urban –
domestic –
domestic freight –
intermodal –
intermodal transport –
commuter -
commuter services –
Form word-combinations using the words of both columns. Translate them into spanish.
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
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.
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.
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 TRANSPORTATION WATER TRANSPORTATION AIR TRANSPORTATION
Fill in the missing words.
Engine powered Engineless
1. Each kind of transportation can be classified according to whether the vehicles are
_____________________ or _____________________.
2. Trains can ________________________ far heavier loads than trucks can.
3. _________________________ transport chiefly liquids or gases.
4. Animals used for the purpose of carrying loads are called __________________
________________ or ______________ ________________ _________________.
5. A pedicab resembles a bicycle but has two ________________ ________________
instead of one.
6. Tugboats ____________________ heavily loaded barges.
7. Nearly all newer airliners have ___________________ ___________________.
8. The shipment of goods by air is limited to expensive, ____________________, or ____________ cargo.

a. faster than the speed of sound.
1. Most engine-powered vehicles have … b. the main modern road vehicles.
2. The majority of engineless vehicles are powered by … c. a secondary role in air transportation.
d. ocean waters or on bodies of water linked
to the ocean.
e. door-to-door freight service.
f. petrol, diesel, or jet engines.
3. Cars, buses and trucks are …
4. Trains cannot provide …
5. Cargo ships travel mainly on …
6. Barges are used mainly to …
7. Supersonic jets fly …
8. Helicopters play …
Read the text, translate it into Spanish 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 cheapestway 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.
Make up sentences from the words.
1. Are / important / transportation / cars / the / of / most / means / private.

2. Operations / first / 1930s / airlines / the / overseas / began / the / in.
3. The / move / cargo / to / way / is / water / cheapest / by.
4. Movement / by / freight / method / transport / called / the / more / of / one / is /intermodal / than.
5. Freight / is / some / containerized / domestic.
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. ___
Here are some more phrases. Sort them under the correct headings.
A. Customer Requirements B. Advice and Recommendations C. Offering Alternatives
1. I (would) need some information regarding …

2. In that case I recommend/suggest that you use/ship …
3. I think the best option would be to …
4. If you prefer …, we could also arrange …
5. Could you let me have some information about …?
6. We can provide/arrange/ship … if you like.
7. As an alternative, we can offer you …
8. What would be the cheapest/fastest/safest/most convenient way/option?
Ex. 3. Match the beginnings of the sentences with their endings.

1. I would need some information …
2. Could you let me know …
3. In this case I suggest that you …
4. For a consignment of this size I …
5. Of course it would also be …
6. We can also arrange transport …
a. would recommend rail transport.
b. by courier if you prefer.
c. regarding loading times.
d. what the transit times are?
e. possible to ship by express service instead.
f. use the cheaper sea freight option.
Complete the sentences with the words from the box. Then listen again to check.
if you like * recommend * an alternative * could you * how much * also consider
calling about * would be * more suitable * suggest that
1. I’m ___________________________ the train options described on your website.

2. ____________________________ tell me a bit more about them?
3. What _____________________________ the best rail option for us?
4. For large volumes, I would ______________________________ using block train transport.
5. If you want to ship smaller quantities, the single-wagon option would be
_________________________.
6. If flexibility is important, I would __________________________ you book the flexitrain
block train option.
7. As ______________________________, I can suggest single-car transport, which is even
more flexible.
8. In that case we should _______________________________ the other block train options.
9. ________________________________ time would we have for loading?
10. At least 7 hours, but we could arrange longer loading times ________________________.
INVENTORY AND WAREHOUSING
Topical Vocabulary

Amount –
Inventory –
Buffer –
Replenishment –
Replenishment order -
Level –
Low/high stock level
Deterioration –
Product deterioration
Space –
Storage space –
Drawback -
Significant drawback

To hold –
To hold stocks
To affect –
To fulfill –
To fulfill customers’ orders
To tie up -
to tie up capital –
to examine –
to vary –
to determine –
to forecast –

Various
Suitable –
Immediately –
Outdated –
Obsolete –
Appropriate –
Most appropriate -
Fixed –
Fixed interval –
Significant –
WORD STUDY
Form word-combinations using the words from both columns. Translate them into Spanish.
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
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.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
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.
2.
3.
4.
5.
6.
7.
1. What is the most important reason for holding stocks?

2. What is the aim of an effective inventory replenishment system?
3. What are the disadvantages of low stock levels?
4. What disadvantages do high stock levels have?
5. What are the two most popular systems of inventory replenishment?
6. How do these systems differ?
7. Are changes in demand easy to forecast?
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.
Read the text, translate it into Spanish and do the tasks below.
Vocabulary
Plain –
Loading dock –
Crane –
Forklift truck –
Due to –
Retrieval –
Conveyor belt –
Barcode –
To track –
WAREHOUSING TODAY
A warehouse is a commercial building for storage of goods. Warehouses are used by

manufacturers, importers, exporters, wholesalers, transport companies, etc. They are usually
large plain buildings in industrial areas of cities, strategically positioned to be close to main
transport facilities such as ports, roads, stations and rivers. They usually have loading docks
to load and unload goods from trucks. Sometimes warehouses are designed for the loading
and unloading of goods directly from railways, airports, or seaports. They often have cranes
and forklift trucks for moving goods. Stored goods can include any raw materials, packing
materials, spare parts, components, or finished goods associated with agriculture,
manufacturing, or commerce. Over the last twenty years warehouses have changed a lot,
mainly due to new technology and business demands. Many warehouses today are equipped
with warehouse management systems (WMS), which automate the product flow throughout
the warehouse. Automated Storage and Retrieval Systems (AS/RS) have been introduced in
many warehouses. These systems can pick, replenish, and perform inventory checks without
a human operator. In fully automated systems, conveyor belts are very important as they link
the different areas of the warehouse and carry the goods to where they are required. The
warehouse of today would be unthinkable without the barcode. The barcode label on each
item provides specific information about the product, which can be transferred to a computer
system. Combined with modern IT systems, barcodes enable warehouse staff to track all
items in the warehouse at any given time. Organising a warehouse well is essential for a
company, as it saves time, space and therefore money. The warehouse is now considered an
important link between a manufacturing plant and the end user.
Form word-combinations using the words of both columns. Translate them into Spanish.
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
Match the words with their definitions.
1. forklift truck _______________________________________________________________

2. crane _____________________________________________________________________
3. facilities ___________________________________________________________________
4. wholesalers
_________________________________________________________________
5. importers __________________________________________________________________
6. demands ___________________________________________________________________
7. conveyor belt _______________________________________________________________
8. loading dock
a.________________________________________________________________
people who buy large quantities of goods for resale
b. another word for requirements
c. a small vehicle for lifting and moving goods
d. people who bring goods into a country to sell them
e. a machine for lifting and moving heavy weights
f. things designed to offer a particular service
g. a platform where trucks or trains can be loaded or unloaded
h. a mechanical apparatus that transports materials from one part of a building to another
Find words in the text to complete the following expressions:
1. industrial _____________________ of cities

2. building for ___________________ of goods
3. perform ______________________ checks
4. to track all ____________________ in the warehouse
5. the barcode ___________________ on each item
6. enable warehouse ______________
7. warehouse ____________________ systems
1. What is a warehouse?
2. Where are warehouses usually situated?
3. What type of equipment is commonly used in a warehouse?
4. What factors have caused warehouses to change in recent years?
5. Why is the organization of a warehouse so fundamental?
LOGISTICS SERVICES
Topical Vocabulary
Outsourcing -
Assistance –
Shipper -
Consultancy –
Solution –
Consolidation –
Shipments consolidation -
Customs clearance -
Cross-docking –
Labelling -
Fleet –
Assets –
Value-added services –
Third party –
Balance sheet –

To outsource –
To relocate –
To gain –
To gain access –
To free up –
To free up capital –
To go beyond –
To handle –
To exploit –
To concentrate (on) –

External -
Core –
A core function
Overnight - ночной
Overnight delivery service –
Just-in-time -
Short-term -
Long-term –
Overall –
Overall costs –
Reverse –
Reverse logistics
WORD STUDY
Form nouns from the following verbs. Consult the vocabulary.
1. to outsource –
2. to consolidate –
3. to solve –
4. to assist –
5. to clear –
6. to ship –
7. to serve –
8. to consult –
Form word-combinations using the words of both columns. Translate them into Spanish.
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
READING ACTIVITIES
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 justin- 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.
a. shipments consolidation b. reverse logistics c. core d. just-in-time

e. value-added services f. solution g. consultancy
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.
1. Logistics outsourcing is a process that involves ……..

2. Before the term "3PL" was first used, ……..
3. When intermediaries appeared, ……….
4. The opportunity of using just-in-time techniques ………
5. As companies saw the benefits of outsourcing delivery and warehousing functions, ……….
6. About 85% of organizations have already outsourced ……..
7. Although outsourcing some logistics operations is a very common practice, …………
a. the number of third party logistics companies began to rise.

b. contracts for transportation had included only two parties, the shipper and the carrier.
c. it is not necessarily the best solution for all companies.
d. the use of external logistics companies to perform part or all of a company’s logistics operations.
e. they became the third party to the contract, the 3PL.
f. some part of their logistics operations.
g. saves warehousing space and reduces costs.
Here’s a list of the possible results of outsourcing for a company. Divide them into two columns.
Advantages of outsourcing Disadvantages of outsourcing

____________________________________ _____________________________________
____________________________________ _____________________________________
____________________________________ _____________________________________
____________________________________ _____________________________________
Focus on core activities

Lack of managerial control
Threat to confidentiality
Cost reduction
Customer service improvement
Quality problems
Dependence on the well-being of another company
Technology improvement
SHIPPING GOODS
Topical Vocabulary

Pilferage -
Crate –
Moisture –
Condensation –
Net –
Sling –
Strain –
Hold –
Dehumidifier –
Mark –
Marking -
Labeling -
Carton –
Port of entry –
Legibility –
Advice of shipment –
Dispatch –

To handle –
(cargo) handling –
handling facilities –
To stack –
To conceal –
To stencil –
To withstand -

Violent –
Subject –
Cautionary –
Hazardous –
WORD STUDY
Match the words with their synonyms.
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
a. pilferage b. crate c. sling d. dehumidifier e. port of entry f. hold
1. a place where foreign goods may pass through Customs _________________________

2. stealing small amounts of things ________________________________
3. a box (usually made of wood), used for shipping ________________________________
4. the lower part of a merchant vessel, used as storage space for cargo _________________________
5. a rope, used for loading and unloading cargo ____________________________________
6. a device for removing the moisture content from air ________________________________
READING ACTIVITIES
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).
Legibility is extremely important to prevent misunderstandings and delays in shipping. Letters are
generally stenciled onto packages and containers in waterproof ink. Markings should appear on three
faces of the container, preferably on the top and on the two ends or the two sides. Old markings must be
completely removed.
Fill in the prepositions.
1. To arrive … time, … the right place, and … good condition.

2. To be insured … damage and loss.
3. To rely … an international freight forwarder.
4. To be involved … the export process.
5. To load cargo aboard the vessel … a net or … a sling.
6. The cargo may be damaged … transit … the destination.
7. The cargo is subject … condensation even … the hold of a ship equipped … air conditioning.
8. To put the markings … cartons.
9. To prevent delays … shipping.
Fill in the missing words.
a. moisture b. markings c. port of entry d. crates e. pilferage

f. handling g. labeling
1. If the merchandise is valuable there could be a problem of …………………….

2. When the cargo arrives at the ……………………….. freight forwarders make the necessary
arrangements with customs brokers.
3. Goods should be packed in containers to ensure greater ease in …………………………….
4. Packages should be made of …………………………………… - resistant material.
5. The total number of packages in the shipment should be included in the ………………………..
6. Exporters may find that customs regulations regarding freight …………………….. are very strict.
7. Plastic ………………………. are often used for shipment of bottles of water, beer, milk, etc.
1. When preparing to ship a product overseas, the seller needs to be aware of …

2. Four problems must be kept in mind when an export shipping crate is being designed: …
3. Moisture is a constant problem because …
4. Unless the cargo is adequately protected, ….
5. It is recommended that a professional firm be hired to …
6. Specific marking and labeling are used on …
7. Legibility is extremely important to …
a. cargo is subject to condensation.

b. packing, labeling, documentation, terms of sale, delivery and payment, and insurance requirements.
c. theft and pilferage are constant threats.
d. pack the merchandise for export.
e. export shipping cartons and containers.
f. prevent misunderstandings and delays in shipping.
g. breakage, weight, moisture, and pilferage.
DOCUMENTATION
Topical Vocabulary

invoice –
commercial invoice –
consular invoice –
customs invoice –
pro forma invoice –
packing list –
certificate of origin –
bill of lading (B/L) -
claused bill of lading –
clean bill of lading -
through B/L –
on-board B/L –
insurance certificate –
consulate –
embassy -
evidence –
recipient –

To identify –
To review –
To apply (for) –
To declare –
To imply –

Relevant –
Doubtful –
READING ACTIVITIES
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.
Match words in column A with words in column B. Translate the word combinations into
Spanish.
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
Match the words and word combinations listed below with their Spanish definitions.
a. Packing list b .Certificate of Origin c. Bill of Lading d . Insurance Certificate e. Invoice
1. ________________________________________________
2. ________________________________________________
3. ________________________________________________
4. ________________________________________________
5. ________________________________________________
LIST OF DOCUMENTS USED IN FOREIGN TRADE
a. approved b. authority c. required d. commercial e. indicating f. draft

g. receipt h. conditions i. carriage j. hazardous
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.
Fill in the prepositions. Consult the text if necessary.
1. Must be accompanied ……………documentation

2. Request ……….. payment
3. Addressed …………… the buyer
4. Terms ……………. sale
5. Apply …………….. a letter of credit
6. Serves …………….. the basis
7. Specific forms required ……….… the government
8. The contents ……… a shipment
9. Certificates obtained …………… the Chamber of Commerce
10. The duty ………..… the goods
11. A contract ………….. the owner of the goods and the carrier
12. Depending …………. the method of shipment
13.…………….. doubtful condition
14. The cargo …………. transit
Answer the questions.
1. What documents are commonly used in international trade?

2. What does the term invoice imply?
3. What types of invoices are widely used in international trade?
4. What information does a commercial invoice include?
5. What is a pro forma invoice?
6. What kind of invoice contains information for the customs clearance of imported goods?
7. Where is a consular invoice certified?
8. What does a packing list specify?
9. What does a certificate of origin declare?
10.What types of bills of lading can you name?
11.What does the type of bills of lading depend on?
12.When is a claused bill of lading declared?
13.What does a clean bill of lading imply?
14.What is insurance certificate used for?
Fill in the missing prepositions: by (2), on, to (2), onto, from, over, between (2).
A Bill of Lading is a document issued ………….. a carrier to a shipper, acknowledging that specified
goods have been received ……….… board as cargo for conveyance to a named place for delivery
…………… the
consignee, who is usually identified. The term derives from the verb “to lade”, which means to
load a cargo ………….. a ship or other form of transportation. This document is signed ………….. the
captain of
the ship or his deputy detailing the transfer of goods …………. a supplier ……..… a buyer. Inland,
ocean, through and air waybill are the names given to bills of lading. An inland bill of lading is a
document that establishes an agreement ……………… a shipper and a transportation company for the
transportation of goods …………….… land. Ocean bills of lading specify the terms … exporters and
international carriers for the shipment of goods to overseas locations.
TERMS OF PAYMENT
Topical Vocabulary

Cash – наличные деньги
Cash with Order (CWO) –
Cash on Delivery (COD) –
Cash-in-Advance (CIA) –
Payment on invoice –
Hire Purchase (HP) –
Down payment –
Installment –
Open account (O/A) –
Statement of account –
Leasing –
Leaseholder (lessee) – арендатор
Lessor - – арендодатель
Letter of Credit (L/C, LOC) –
Revocable L/C
Irrevocable L/C -
Commitment –
Issuing bank -
Accepting bank –
Documentary collection -
Insolvency –

To owe –
To submit –
To forward –
To release –
To facilitate –
To take out -
To take out an insurance policy –

Integral –
an integral part –
consequently-
prior –
sufficiently –
sufficiently confident –
precise -
precisely –
solvent -
Match the terms with their definitions.
1. Cash with Order

2. Hire Purchase
3. Cash on Delivery
4. Open-account terms
5. Leasing
6. Payment on invoice
7. Cash-in-Advance
8. Documentary Collection
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
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.
TERMS OF PAYMENT IN DOMESTIC TRADE

The following terms of payment are commonly used in domestic trade.
* Cash with Order (CWO): the buyer sends payment with his order.
* Cash on Delivery (COD): the buyer pays for goods at the time of delivery.
* Payment on invoice: 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.
* Hire Purchase (HP): 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.
* Open account terms (O/A): 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.
* Leasing: the leaseholder pays rent to the lessor; the lessor gives the lessee permission to use the
object for a fixed period of time.
TERMS OF PAYMENT IN INTERNATIONAL TRADE

To be successful in modern global marketplace, exporters have to offer their customers attractive sales
terms supported by appropriate payment methods. A suitable payment method must be chosen carefully to
minimize the payment risk. Some terms of payment that are commonly used in international trade are listed
below.
1. Cash-in-Advance (CIA) or Pre-Payment Cash-in-Advance is the most secure method of trading for
exporters and, consequently the least attractive for buyers. Payment is expected by the exporter, in full,
prior to goods being shipped.
2. Open Account (O/A) This is the least secure method of trading for the exporter, but the most attractive
for buyers. Goods are shipped, and documents are sent directly to the buyer, with a request for payment at
the appropriate time. Open Account trading should only be considered when an exporter is sufficiently
confident that payment will be received.
3. Letter of Credit (L/C, LOC) Letters of Credit are among the most secure tools available to international
traders. A Letter of Credit is a written commitment to pay, by a buyer’s or importer’s bank (called the
issuing bank) to the seller’s or exporter’s bank (called the accepting bank). A Letter of Credit ensures
payment of a specified sum in a specified currency, provided the seller meets precisely – defined
conditions and submits the prescribed documents within a fixed timeframe.
Letters of credit are common in international trade, but they are also used in domestic transactions.
Either way, a bank acts as an uninterested party between buyer and seller and guarantees that a
payment will be made if certain conditions are met. A revocable LC can be cancelled or changed
without the seller’s agreement. An irrevocable LC can be cancelled or changed with the agreement of
all parties of the contract. Almost all Letters of Credit are now irrevocable.
4. Documentary Collection
1. Documentary Collection is a payment method when the transaction is performed by the bank
through the exchange of documents. The seller instructs his bank to forward documents
related to the export of goods to the buyer's bank. The documents, however, are only released
to the buyer after payment has been made. This payment method facilitates import/export
operations, but does not provide the same level of security as Letters of Credit. Unlike the
Letters of Credit, for a Documentary Collection the bank acts as a channel for the documents
but does not guarantee payment.
Ex. 1. Find in the text the English equivalents for the following phrases.
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
Complete the sentences with the words from the box.
a. transaction b. letter of credit c. cash in advance d. cash on delivery e. facilitate

f. irrevocable letter of credit g. terms of payment h. hire purchase i. open account
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.
Match the beginnings of the sentences with their endings.
1. Getting paid for providing goods or services ………

2. A suitable payment method must be chosen carefully ………
3. The lessor gives the lessee permission ………
4. Open Account trading should only be considered ……..
5. Letters of Credit are ……..
6. An irrevocable LC can be cancelled or changed ……..
7. Documentary Collection is a payment method ………
a. to minimize the payment risk.

b. among the most secure tools available to international traders.
c. to use the object for a fixed period of time.
d. when the transaction is performed by the bank through the exchange of documents.
e. is critical for any business.
f. with the agreement of all parties of the contract.
g. when an exporter is sufficiently confident that payment will be received.
Read these answers to frequently asked questions relating to financial risk in international trade.
Answer the questions below.
Handling financial risk in international trade
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.
Could you give some examples?

Well, this could be anything that delays or stops trade or payment, e.g. some unexpected economic
measures, political unrest, import bans, or breakdown of banking systems in the country you are doing
business with.
What can traders do to minimize financial risks?

Before doing business abroad, it is essential to investigate both customer and target country carefully.
Check whether the potential customer is solvent, then study your target country’s accounting and
credit practices and learn something about import and export procedures. To reduce the risk of non-
payment, you can take out an export credit insurance policy.
What payment methods would you recommend for exporting goods?

That’s a difficult question to answer. The exporter should, of course, always try to minimize financial
risk by choosing a secure payment method, e.g. advance payment or a confirmed, irrevocable letter of
credit. On the other hand, that’s not always possible or even desirable.
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?
Complete the passage with the adjectives from the box.

a. clear b. political c. careful d. commercial e. prior f. financial g. international
h. irrevocable
Letters of credit are the 1) ………………………… documents, which are issued by 2)
………………… institutions. The origin of the term comes from the word “accreditation” – a
derivative of the Latin word
“accreditivus”, which means “trust”. Almost all the letters of credit are 3) ………………………… :
they cannot be cancelled without 4) ……………………..… agreement of the parties. The language of
the letter should be very 5) ………………………………. L/C is used in 6)………………………….
transactions to eliminate the risks of unfamiliarity with a foreign country’s customs or 7)
……………………….… instability. You should be very 8) …………………..… in selection of
words. Reread the letter before sending it.

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INTRODUCTION TO LOGISTICS

Adjectives and adverbs

a. accessible b. efficient c. extensive d. fragile e. overall f. rural g. secure h. sustained

1. Universal, total, all-embracing. ____________________

a. negative impacts b. storage of goods c. supply chain d. logistics e. consumption point

What is logistics? Logistics is planning, execution, and control of the procurement,

THE IMPORTANCE OF LOGISTICS IN BUSINESS

1. Logistics is central to the function of commerce. ___

Ex. Answer the questions.

1. What does logistics refer to, in short?

Decide whether the following statements are true or false.

1) Supply chain …………………………………………………………………………………………

a) work in close partnerships with their customers

LISTENING AND SPEAKING

Provide - storage support - distribution - delivery - maintenance

Ex. 5. Match the words with the definitions.

1. carrier 2. freight forwarder 3. Supplier 4. haulage contractor/haulier

a. company which carries goods by road _____

THE LOGISTICS INDUSTRY

Task 2. Make a glossary of 10-15 unknown words from the text.

1. Logistics and distribution manager

Typical work activities

Typical work activities

3. Passenger transport manager

Typical work activities

Typical work activities

Typical work activities

Typical work activities include:

Verbs and word-combinations with verbs

Adjectives and adverbs

Insert the prepositions where necessary.

1. They assemble …watches in this unit.

Match the verbs with their definitions or synonyms.

1. to assemble a) to emit, to give out;

Match the adjectives with their antonyms.

Elements of the Supply Chain

Make up phrases, paying attention to the prepositions. Translate the phrases.

Connect the beginnings of the sentences and their endings.

1. The supply chain encompasses the steps … .

a. … to produce the products to fulfill the customer’s orders.

Match the entities of the supply chain with their activities.

a. customer b. the planning department c. the purchasing department

Answer the following questions.

1. What is a supply chain?

Nouns and noun phrases

Verbs and word-combinations with verbs

Adjectives and adverbs

1. To haul a) to restrict, to confine

Fill in the table with the kinds of vehicles given below.

LAND TRANSPORTATION WATER TRANSPORTATION AIR TRANSPORTATION

Fill in the missing words.

Engine powered Engineless

Connect the beginnings of the sentences and their endings.

A type of intermodal transport known as containerization has become increasingly common

Make up sentences from the words.

1. Are / important / transportation / cars / the / of / most / means / private.

Say if these sentences are true or false according to the text.

A. Customer Requirements B. Advice and Recommendations C. Offering Alternatives

1. I (would) need some information regarding …