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UNIT 2 LOGISTICS
Section 1 /Reading Comprehension

[Link]

Logistics is the management of the flow of resources between the point of origin and the point of
consumption in order to meet some requirements, for example, of customers or corporations. The
resources managed in logistics can include physical items, such as food, materials, equipment,
liquids, and staff, as well as abstract items, such as time, information, particles, and energy. The
logistics of physical items usually involves the integration of information flow, material handling,
production, packaging, inventory, transportation, warehousing, and often security. The complexity
of logistics can be modeled, analyzed, visualized, and optimized by dedicated simulation software.
The minimization of the use of resources is a common motivation. Some of the main types of
logistics are:

 Procurement logistics consists of activities such as market research, requirements

planning, make-or-buy decisions, supplier management, ordering, and order controlling.
The targets in procurement logistics might be contradictory: maximizing efficiency by
concentrating on core competences, outsourcing while maintaining the autonomy of the
company, or minimizing procurement costs while maximizing security within the supply
process.

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 Production logistics connects procurement to distribution logistics. Its main function is to
use available production capacities to produce the products needed in distribution logistics.
Production logistics activities are related to organizational concepts, layout planning,
production planning, and control.

 Distribution logistics has, as main tasks, the delivery of the finished products to the
customer. It consists of order processing, warehousing, and transportation. Distribution
logistics is necessary because the time, place, and quantity of production differs with the
time, place, and quantity of consumption.

 Disposal logistics has as its main function to reduce logistics costs and enhance services
related to the disposal of waste produced during the operation of a business.

 Reverse logistics denotes all those operations related to the reuse of products and materials.
The reverse logistics process includes the management and the sale of surpluses, as well
as products being returned to vendors from buyers. Reverse logistics stands for all
operations related to the reuse of products and materials. It is "the process of planning,
implementing, and controlling the efficient, cost effective flow of raw materials, in-process
inventory, finished goods and related information from the point of consumption to the
point of origin for the purpose of recapturing value or proper disposal. More precisely,
reverse logistics is the process of moving goods from their typical final destination for the
purpose of capturing value, or proper disposal

 Green Logistics describes all attempts to measure and minimize the ecological impact of
logistics activities. This includes all activities of the forward and reverse flows.

Taken and adapted from [Link]

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EXERCISES

1- Choose the correct option

1. Logistics is …..

a) a relationship between customers.

b) the movements of goods from one point to another.

c) to meet some requirements.

2. The assets in Logistics can be ….

a) only physical items

b) just abstract items

c) both types of items

3. a)Logistics uses complex software

b)Logistics can be visualized by simulation software

c)the complexity of logistics is never analyzed

4. The targets of procurement logistics …..

a) might be efficient

b) might be maximizing

c) might be opposing

5. Production logistics activities consist of ….

a) different aspects of planning and control

b) organization of concepts

c) planning aspects

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6. The distribution logistics is …

a) quite necessary

b) rarely necessary

c) sometimes necessary

7. Reverse Logistics ….

a) has nothing to do with the reuse of products and materials

b) returns products from vendors to buyers

c) deals with the reuse of products and materials

2- Say if the statements are true or false.

1. Logistics is the movement of assets from one place to another.

2. Logistics can include physical and abstract items.

3. Warehousing is involved the Logistic of abstract items.

4. Supplier management is an activity of production Logistics.

5. Procurement and distribution logistics are connected by Production Logistics.

6. The delivery of the products to the customers is not the main task of the Distribution
logistics.

7. One of the process of the reverse logistics is to sell the spares.

8. The main function of the Disposal logistics is to decrease the costs.

9. Green Logistics tries to diminish the ecological impact of its activities.

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UNIT 2 LOGISTICS
Section 2 /Grammar & Lexis
1- Put together these words from the text according to their meaning.
1. Requirement a) improve
2. Flow b) removal
3. Core c) spare
4. Outsourcing d) necessity
5. Procurement e) subcontracting
6. Available f) opposite
7. Layout g) arrangement
8. Enhance h) obtainable
9. Surplus i) current
10. Reverse j) locating
11. Disposal k) effort
12. Attempt l) essential

2- Fill in the gaps with the correct word.

management – flow – targets – enhance – software - resources
1. The ……………………… managed in logistics can include physical items.
2. The ……………………. in procurement logistics might be contradictory.
3. Simulation ……………………can analyze the complexity of Logistics.
4. These new systems ……………………. services related to transportation.
5. This process includes the …………………………… of surpluses.
6. It can help with the ………………………. of resources from one place to another.

3- Give the correct word for these definitions.

1. A plan or design of something that is laid out.

2. Something obtainable or accessible and ready for use or sevices.
3. The act of getting possession of something.
4. Obtaining goods or services from an outsider supplier.
5. Something which is necessary or indispensable in an activity.
6. Anything which is uninterrupted or discharge.

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4- Order the following sentences.

1. for / the / ready / of/ are / sale / items / racks / bottom / the / on
2. distribution / use / large / points / as / exporters / warehouses
3. sale / enhances / end / ratio / it / production / reduces / the / and / consumer / the / costs / to
4. warehouse / the / store / same / retail / and / building / as / serves / both
5. responsible / for / he / materials the / was / procurement / of

5- Fill in the gaps with the correct words from the list.
goods - spare - commercial - raw - stored - plain - cranes - loading

A warehouse is a ……………..building for storage of goods. Warehouses are used by manufacturers,

importers, exporters, wholesalers, transport businesses, customs, etc. They are usually large
………… buildings in industrial areas of cities and towns and villages. They usually have …………
docks to load and unload goods from trucks. Sometimes warehouses are designed for the loading and
unloading of ……….. directly from railways, airports, or seaports. They often have ……………....
and forklifts for moving goods, which are usually placed on standard pallets loaded into pallet racks.
………...……. goods can include any …………….. materials, packing materials, ……………….
parts, components, or finished goods associated with agriculture, manufacturing and production

Nouns can be formed by adding suffixes to verbs, adjectives or nouns. Some

common noun suffixes are: -tion, -sion, -ment, -ist, -ity, -ship, -ness, -ence, -
ance

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6. Transform these words into nouns.

1. Manage
2. Minimize
3. Simulate
4. Procure
5. Secure
6. Quantify
7. Relation
8. Require
9. Differ
10. Dark

7. Put the words in brackets into nouns to complete the sentences.

1. You need the correct ……………… to work here. (equip)

2. He is in charge of the ……………………… of the building. (maintain)
3. The ………………………… of his work affected his health. (require)
4. He moved off into the ……………….. . (dark)
5. He enjoyed the ………………….. of modern computers. (complexion)
6. It consists of order processing, warehousing and ……………… . (transport)

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UNIT 2 LOGISTICS
Section 3 / Oral Communication
Ms Philippe, Sales Representative from Everlasting Anchors is telephoning Marina Boats
about a delayed order. Fill in the blanks with the missing words.

supposed shipment away rather delivered deal

leave delivery freight schedule message available

Secretary: Hello, Marina Boats, this is Peter speaking. How can I help you?
Ms Philippe: Yes, this is Ms Anne Philippe calling. May I speak to Mr. Peskham, please?

Secretary: I'm afraid Mr. Peskham is __________(1) until tomorrow. Would you like to leave a
__________(2)?
Ms Philippe: Uhm... actually, this call is __________(3) urgent. We spoke yesterday about a
__________(4) problem that Mr. Peskham mentioned. Did he __________(5) any information
with you?

Secretary: As a matter of fact, he did. He said that a representative from your company might be
calling. He also asked me to __________(6) with the matter.
Ms Philippe: Great, I'd love to see this problem resolved as quickly as possible.

Secretary: Well, we still haven't received the __________(7) of stainless steel anchors that was
__________(8) to arrive last Monday.
Ms Philippe: Yes, I'm terribly sorry about that. In the meantime, I've spoken with our
__________(9) forwarder agents and they assured me that your order will be __________(10) by
tomorrow morning.

Secretary: Excellent, I'm sure Mr. Peskham will be pleased to hear that.
Ms Philippe: Yes, the shipment was delayed from Frankfurt due to a strike. We weren't able to
send along your shipment until this morning.

Secretary: I see. Mr. Peskham also wanted to __________(11) a meeting with you later this week.
Ms Philippe: Certainly, will he be __________(12) first time on Friday morning?

Secretary: I'm afraid he's meeting with some clients out of town at 9:00 am. How about 12:30?
Ms Philippe: Yes, 12:30 would be great.

Secretary: OK, I'll schedule that. Ms Philippe at 12:30, Friday afternoon... Is there anything else
I can help you with?
Ms Philippe: No, I think that's everything. Thank you for your help... Goodbye.

Secretary: Goodbye.

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UNIT 2 LOGISTICS
Section 4 / Listening Practice
Listen to Dan Andrews from the Lifestyle Business Podcast talking about running a small-
sized business.
[Link]

Answer the following questions about the interview.

1) He goes to China to get help with ______ .

a) staffing
b) programming
c) manufacturing
2) A micro-multinational is ______ .
a) a big company
b) a small company
c) domestic company
3) He says Southeast Asia is a great place ______ .
a) to buy wholesale
b) to hire people
c) to invest in capital
4) He finds staff traditionally through ______ .
a) job boards
b) sourcing sites
c) word of mouth
5) Altruism is a way to ______ .
a) earn money
b) avoid mistakes
c) help people

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UNIT 2 LOGISTICS
Vocabulary Quiz

distribution • operation • like-minded • skill set • altruism

1. Bill Gates is now famous for as well as business.

2. The Internet has allowed for the of information around the world.

3. Signing and dancing are also part of her .

4. People with similar tastes in music are .

5. He runs a small insurance .

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UNIT 2 LOGISTICS
Section 5 / Correspondence
1. Read the complaint letter and fill in the blanks with the correct verb from the list below.

have not been delivered noticed was stained have contacted received
were damaged have not been able showed have informed unpacked

Dear Mr Delaware,

I am writing to complain about a shipment of stainless steel office furniture we (1)

_________ yesterday against our invoice No. H 0058975/2.

The crates (2) _________ on the outside, and looked as if they had not been carefully
handled. When we (3) _________ them, we (4) _________ that some of the chair
legs were bent and rusty, and the fabric on the seating (5) _________, or (6)
_________ signs of wear.
Three further crates from the consignment (7) _________ yet, so we (8) _________
to inspect them. I (9) _________ the shipping company that we cannot accept this
consignment from you, and they (10) _________ your insurers.
As we will be unable to retail this consignment in our stores, we are returning the
shipment to you carriage forward, and we shall expect a full refund.

Yours sincerely,

Philip Morris

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2. Put the email in the correct order.

a) Please accept my apologies once again.

b) that you were not informed about this earlier.
c) I have checked with our shipping company and
d) you next Monday. It was delayed because of
e) I am very sorry to hear that you have not
f) Dear Mr Chin-Fao
g) yet received your order of 500 calendars.
h) they have assured me the order will be with
i) a harbour strike and I am extremely sorry

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UNIT 2 LOGISTICS
ANSWERS

UNIT 2

Section 1

Exercise 1 exercise 2
1. B 1. true
2. C 2. true
3. B 3. false
4. C 4. false
5. A 5. true
6. A 6. False
7. C 7. True
8. True
9. true
Section 2
Exercise 1
1.d 2.i 3.l 4.e 5.j 6.h 7.g 8.a 9.c 10.f 11.b 12.k
Exercise 2
1. resource 2. Targets 3. Software 4. Enhance 5. Management 6. Flow
Exercise 3
[Link] 2. Available 3. Procurement 4. Outsourcing 5. Requirement 6. Flow
Exercise 4
1. Items ready for sale are on the bottoms of the racks.
2. Large exporters use warehouses as distribution points.
3. It reduces end costs to the consumer and enhances the consumer sale ratio.
4. The same building serves as both warehouse and retail store.
5. He was responsible for the procurement of materials.

Exercise 5
[Link] [Link] [Link] [Link] [Link] [Link] [Link] [Link]
Exercise 6
[Link] [Link] [Link] [Link] [Link] [Link] [Link]
[Link] [Link] [Link]
Exercise 7
[Link] [Link] [Link] [Link] [Link] [Link]

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UNIT 2 LOGISTICS
Section 3
1. away
2. message
3. rather
4. delivery
5. leave
6. deal
7. shipment
8. supposed
9. freight
10. delivered
11. schedule
12. available

Section 4

Multiple-choice comprehension.
1. c
2. b
3. b
4. a, b
5. c

Vocabulary Quiz
1. altruism
2. distribution
3. skill set
4. like-minded
5. operation

Transcript for Section 4.

Todd: OK. I'm here with Dan and we're talking about his international business lifestyle. He lives
in Bali, Indonesia and he runs an international business. Dan can you talk a little bit about what
you do, and what countries you deal with?

Dan: Sure I mean .... the primary places of importance for our business would be southern China
for manufacturing, South East Asia for marketing, and southern California for distribution and
sales. I think we're sort of in a new age of business, and what I've been calling it is this term called
micro-multinational. We've all heard the term multinational. That's like a big corporation like a
oil company or a car company. But it's only recently that small companies like mine could have
offices all around the world, employees all around the world at a relatively small level. And that's
what we're trying to do. When we hire any new employee we always ask ourselves the question,
what would be the best place in the world to hire these people. If it has to do with manufacturing
for us that's southern China. If it has to do with marketing, we found that South East Asia is great
for hiring people that are great at marketing. So it's a sort of new age of business for small

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entrepreneurs like myself. And it's really exciting for me because I love to travel, and so I get to
see some amazing places.

Todd: So... So could you talk about how large is your operation. Like when you talk about a
micro-business, how many people are we talking about in each country?

Dan: Well it's an interesting way that, you know, what is a small business versus what is a medium
business. I guess the way I make the distinction is a small business is under five hundred
employees, and then a medium sized enterprise would be 15 million dollars annually or above. So
when we're talking about micro-multinationals in my audience and the people I interact with we're
talking about small business people with less than 50 employees and less than 15 million dollars
in revenue. Yeah.

Todd: Wow, that sounds really interesting. So how do you find these people? Like how do you
create these relationships? I mean if someone we going to start out and do what you do, I think the
first thing they would think of is... How do you meet people from all these different countries, and,
and put them together to make a business?

Dan: Well, there's two different sorts of relationships that are important. One is your sort of
staffing and supplier relationships. I think that would be more traditional methods. Job boards.
You know going on to sourcing websites and finding many matches and things. But then there's a
whole another thing, which is how do you meet like minds? How do you meet your peers, other
entrepreneurs? And I think the big opportunity there is self publishing online. Either do blogs or
podcasts or Facebook or Twitter. Really reaching out to like minds, and trying to help them. Just...
And that's one of the things I really love about the internet is that it rewards altruism. Right, so if
I reach out and help my fellow man, and you get rewarded on the internet for that. And so if you
know about something, go around and se if you can help people with your skill set, with your
talent, with your knowledge. And that's how I think you start to build a network because you value
that knowledge, and the people you're helping will value that knowledge. And that's a great way
to start a relationship.

Todd: You know. You do this in South East Asia. Do you think your model for doing business
can be replicated anywhere in the world? Like could someone do this in Latin America? Or in
Africa? Or in other parts of the world besides here?

Dan: Absolutely. I think, you know, I'm just a small player, and when you look at all around the
world this is exploding everywhere. People are utilizing the internet to connect with people that
can help them directly. You know if you want to know about something, you can go to the internet
and you can search and you can find the information immediately. To me it's an absolute
revolution. For relationships, it's even greater because you can find the people that can help you
directly, so if you need somebody... a customer, a business partner, and, even if you need a new
girlfriend you can go to the internet and you can search for what you're looking for and start to
connect with people. I think it's magic and it's applicable in any continent

Todd:Ha ha. Great. Good advice.

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UNIT 2 LOGISTICS
Section 5

Exercise1:
1. received
2. were damaged
3. unpacked
4. noticed
5. was stained
6. showed
7. have not been delivered
8. have not been able
9. have informed
10. have contacted

Exercise2:
1. Dear Mr Chin-Fao
2. I am very sorry to hear that you have not
3. yet received your order of 500 calendars.
4. I have checked with our shipping company and
5. they have assured me the order will be with
6. you next Monday. It was delayed because of
7. a harbour strike and I am extremely sorry
8. that you were not informed about this earlier.
9. Please accept my apologies once again.

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