(o>. (70) ;1)) Business English English for Logistics Marion Grussendorf EXPRESS SERIES NR nan OXFORDOXFORD Great Clarendon Stret, Oxford ox2 60” Oxford University Press i a department ofthe University of Oxford. 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D7 {businesswoman at desk(Alan Lemire), p7 (businessman on phone} "Neustockimages), p7 [warehouse businessmanysteve Cole), p10 {cargo ship/Hazlan Abdul Hakim), ptt (Pudong, ShanghaiDavid dre Loureiro) p12 (warehouse with materialffomczyk Bartek). 13 road, rail and airfeight/Australia Takeiteasy Digital Ant), p15 {trucks being loaded), p19 (conveyor in postoffice), p20 (forklift truck{Carole Gome, p23 (business woman at desifEch Olay), p25 {customs declaration form/The'Tor) p27 young office worker/Pascal ‘Genest), p28 container terminal, (container shipjOpla), p28 0 Triple Crown Services Company, used with kind permission (roadraile}, {iStockphoto.com p28 (container shipjCamilo Torres), (truck at dock) assalve photography), Alamy p28 swap boxlyje vario images GmbH & CoG), iStockphoto.com p29 @ business people in office/Atno¥aur, ‘Shatterstock com p31 (ISO container/Franck Boston), p31 (tanstaines) Stephen Coburn), iStockphoto.com p31 (reach stacker/Tony Temblay}, B31 (Container Harbour/Wim Burger), Corbis p33 (reefer container) ‘Bd Young) p33.© Chris Miller, used with kind permission (tanktainen iStockphoto.com p33 open top container/Kj. 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[p35 conveyor belt), p57 {warehouse manager), p59 (Cardboard filled DboxjLise Gage), p60 archive)Melton Media), Shutterstock ps2 (bath beads)Magdalens Kucova, iStockphoto.com p65 currency!S Misti}, ‘p68 (jussled savings accounts/Christine Glade, Shutterstock p71 (container(franck Boston), p72 (refrigerated containerfirsty Pargeter) ‘Aroworkly: Peters and Zabransky Ld, Cover ime courtesy of Getty Images (barcode scanner/STOCKAB-RR, (arehouse statjColorBlind Images(lconica}, (shipping terminal) EIGHTHISHThe Image Bank, Prepared for OUP: Starfish Design Editorial and Project Management Id, ‘The authors nd publishes would keto thank he elowing or her help indevelopng the bok: Steven Rock and his team at the School of International Studies tthe Telford College of Arts and Technology; ‘Alison MeLesn ‘Tre authors and publisher are grate to thse who have gen permission to reproduce the olewing extracts and adaptations of copyright materia: Sources: p15 www:jodfunctions.bnet com: p23 www careerjet hk; pA0-42 wew.barhkcom ‘Although every eo has heen made to trace and contact copyright holders before puiaton, his has ot been poser some cases. We apogie foray apparent ingringemant of copyright and notified, he publisher wl be pleased {rectify any errs or omisions at the eal opportunity:Contents PAGE UNITTITLE Topics 5 Introduc Setting the scene to logistics Jobs in logistics Regular a 2 Logistics services Logistics acronyms Product ranges 3PL providers Value-added services 20 Inventory Inventory management management and Continuous replenishment procurement Job advertisements 28 EJ Modes of ‘Transport and handling equipment transport Container types Types of goods 37 Planning and Transport options arranging Measurements transport Quotations. 45 [lJ Shipping goods Ma Loading ‘Advice of shipment Shipping instructions 53 Warehousing Handling equipment and storage Warehouse areas Warehousing today 60: Documentation —_ocuments in foreign trade and finance Import instructions Payment methods PAGE APPENDIX 69 Test yourself! 71 Partner Files, 73 Answer key 82 Transcripts 88 Useful phrases and vocabulary 91 Glossary of acronyms and abbreviations, 92 A-2wordlist 9% — Wolghts and measures conversion chart USEFULLANGUAGE AND STRUCTURES Describing jobs Talking about regular activities Selling services Explaining online services The passive Giving and asking for opinions Making suggestions Agreeing Adjectives Making comparisons Describing features, Making enquities and requests Advising and offering alternatives Numbers, dimensions, and weight Explaining how to do something Prepositions Talking about shipping problems The passive with modals Talking about improvements Describing a process Apologizing by and untit. Handling payments Dealing with mistakesAbout the book English for Logistics has been developed specifically for people who work in the logistics industry and who need English to communicate in a variety of situations with colleagues, clients, and business partners. It supplies you with the target vocabulary and commonly used expressions that are essential to communication whether you work for a shipping agent, a customs broker, or a freight forwarder. English for Logistics covers a range of subjects associated with the logisties industry. Learners in management-level positions will find their needs catered for, just as much as those in warehousing or administration. Units from the book work independently and can be selected according to the needs and interests of the course participants. English for Logistics is also ideal for self-study. Each unit begins with a Starter, which consists of a short exercise or a quiz and serves as an introduction to the topic of the unit. Practical exercises, listening extracts, industry-specific texts as well as photos and illustrations help you to acquire key vocabulary and expressions. Realistic role-plays give you the opportunity to put all you have learned into practice. Each unit closes with an Output activity, an article related to the topic of the unit followed by questions for reflection and discussion. Finally the book finishes up with a fun quiz to Test yourself! on some of the facts and figures discussed over the previous eight units. The MultiROM contains all the Listening extracts from the book. These can be played through the audio player on your computer, or through a conventional CD player. In order to give yourself extra listening practice, listen to it in your car. The Interactive exercises let you review your learning by doing Useful phrases, Vocabulary, and Communication exercises on your computer. This will be particularly valuable if you are using the book for self-study. in the appendix of English for Logistics you will find the Partner Files for the role-plays and the Answer key so that you can check your own answers if you are working alone. There are also Transcripts of the listening extracts, an A-Z word list, and a list of Useful phrases and vocabulary. Finally, we have included a Glossary of acronyms and ‘abbreviations and a Weights and measures conversion chart; these can be used as handy references at work.aay Introduction to logistics Make a list of all the different areas of logistics you can think of by completing the diagram below. Five people give their defi the box. ion of logistics. Complete the sentences using the words from provide * storage * support distribution * delivery * maintenance 1 Logistics means that you manage the procurement and movement of goods and the of inventory. 2 Itmeans the of the 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 Listen to the recording and check your answers.6 | UNITA Introduction to logistics 2 complete the following table using the words from exercise s. Verb 1 to provide 2 3 to support 4 5 6 to maintain 7 8 _ Noun storage delivery distribution transportation purchasing 3 Now complete the sentences with the correct form of the words from the table. 1 In my job | oversee the of vehicles and machinery. 2 Do they also parcels and packages on Sundays? 3. Goods are normally bought in the department. 4 We ___a 24-hour delivery service. 5 This company only goods by road. 6 We all our goods in the warehouse. 4 Match the definitions (a-f) with the words (1-6) below. 1 carrier freight forwarder supplier haulage contractor/haulier courier consignee aunUNIT Introduction to logistics | 7 a company which carries goods by road person or firm named in a freight contract to whom goods have been shipped or turned over for care company that specializes in the speedy and secure delivery of small goods and packages. company that transports or conveys goods ‘company which supplies parts or services to another company; person or business that arranges documentation and travel faci goods to customers so called vendor ies for companies dispatching Listen to three people describing their jobs in logistics: a warehouse manager, a freight forwarder, and a shipping operations manager. Match each job to the correct person. Now listen again and complete the sentences. Person a 1 My jobis to the transport of goods either by sea, air, road, or rai 2. Animportant part of the job is with customer requests about the most suitable mode of transport 3. My responsibilities also include good shipping rates with shipping lines and transport companies. 41 customs clearance on behalf of my clients, Person 2 5 In my job have to that the cargo is not damaged onboard the ship or while loading or unloading. 61 customers on shipping rates and prepare quotations for our sales office. Person 3 7 Another part of my job is to with departments such as transport and production. 8 Apart from that, that vehicles, machines, and any other kind of equipment are maintained to a high level.8 | UNA Introduction to logistics 7 Match the verbs (1-8) with the activities (a-h) to make phrases from the recordings. Then listen again to check if necessary. 1 book consolidate deal keep make use check [ take care [_| eraunwn ‘a number of shipments under one bill of lading booking reservations that health and safety standards are maintained modern computer systems space on a ship, train, lorry, or plane where to put them in the warehouse an eye on the budget, with all the necessary documentation sare ance 8 Work with a partner to describe two different jobs. The phrases in the box will help you. = : PannerA Fle on 9.72 “TALKING ABOUT 108 RESPONSIBILITIES ET rine fiery ys | Questions What do you do? What's your line of work? What does your job involve? Describing jobs I work for a major shipping company. I work in the regional depot. Describing responsibilities Pm responsible for In my job I have 0... My job involves Remember... You work for or at « company. You work in an area or a department. You are responsible for or in charge of something. Here are some useful verbs for describing key job responsibilities: to advise to oversee to prepare to provide or supply to train to ensure to manage to review to estimate to liaise with to monitor to organize to carry outUNIT. Introduction to logistics | 9 Q Replace the underlined verbs with words from the box that have the same meaning. provide « train * organize * ensure © inform about * check 1 We supply software for the car industry. 2 | often advise clients on the most suitable transport method. 3. In my job | have to make sure that passengers arrive on schedule. 4 My job is to supervise incoming goods. 5 1 also plan the transport of goods. 6 (instruct staff. 10 Complete the form with your own job details. Use complete sentences and expressions from this unit. Job profile: Company: Job title: Main responsibilities: 3-5 key activities: When talking about general facts and describing what we normally do, ‘we use the present simple, It is often used with words that say how often something happens, e.g. uswally, often, always, sometimes, every, etc. We use the verb do to make questions and negative statements: Iwork for an international logistics company. He usually spends a lot of time with his customers. Do you ship goods to Asia? He doesn’twork in the European office.40 | uNira ‘oduction to logisties 11 Put the words in the right order. Use the correct form of the verb. an excellent / provide / delivery service / my company. you /how much / handle / cargo / per year ? to other countries / not ship / we / chemical products. responsible for / be / the warehouse manager / also / vehicles and machinery. to foreign companies / car parts / this vendor / supply 2 usually / arrange / for companies / a freight forwarder / documentation. 12 Work with a partner. Follow the steps below to practise this dialogue. A >o>e Ask B what he/she does. Respond. Tell A where you work. Ask B to give you some details about the job. Tell A about your main job activities. Then ask A about his/her job. Respond. Describe your job activities. 13 Complete the crossword puzzle with words from this unit. Across oa 4 5 6 Down Another word for freight. What you store in the warehouse. ic Work closely together with somebody. 5 Another word for organize. e To give information about the price. = Another word for supervise. Send goods.UNIT Introduction to logistics | 44 Read this article and answer the questions. CHINA’S BOOMING EXPORT BUSINESS China's economy is developing at a rapid pace with double-digit growth rates in export business and an expected increase of 40 per cent by 2010. With an estimated trade volume of nearly 2 trillion US dollars in 2006, China handles more cargo than any other country inthe world. Given these growth rates, itis not surprising that the Chinese logistics sector increased by more than 12 per cent last year. In order to support the booming industry, the government is currently investing massively in the country's infrastructure. Over the next few years, the Chines government wants to improve and extend the existing road and railway networks as well as maritime harbours and airports For transport logistics, Shanghai is one of the most attractive locations in China. It is the second largest city in the country and has good links to the most important industrial regions. And Shanghai is also a modern and welcoming host for visitors and business people from China and around the world. 1 Do you know any other countries with considerable export growth rates? 2 How does logistics play an important role in a country’s economy? 3. What do you know about the logistics industry in your country?any raid Logistics services a FCL 3PL Gv oc LcL. EDI aur we | VAS 8 RFID 9 1s0 10 GPS Match the words (1-8) with their definitions (ah) below. 1 transshipment Oo 2 break-bulk 3 cross-docking O 4 order picking 5 reverse logistics 6 tracking and tracing O 7 warehousing O 8 collection oO ‘a direct flow of goods from receipt at warehouse to shipping, bypassing storage b collecting and handling of used or damaged goods or of reusable transit equipment loading goods from one means of carriage onto another d__ selecting and assembling items from stack for shipments e packing goods in small, separable units f picking up goods at a named place g receiving and storing goods locating items in transitUNIT 2 Logistics services | 13 2 Look at these words from exercise s and use your dictionary (if necessary) to complete the table. eta neat : 1 receive 2 | equipment a carry 4 assembly 5 | location ®_ 3 Listen to three logistics providers presenting their services. Complete the table. specializes in transport mode used Provider 2 (Home Tex International) Provider 1 (GFT Global Carrier) Provider 3 (Cargo Express) 4 Listen to the recording again and complete the sentences. provider © shipping lines ® fleet of vehicles air carriers * transport companies * documentation 1 Weare one of the world’s leading__with a freight volume of 600,000 containers per year. 2 We can offer our customers competitive rates with all major With a modern . we can ensure fast, safe delivery of your consignments.4 Our services include order picking, packing, distribut n, and handling of all transport 5 Cargo Express is Asia’s leading of air freight services. 6 We work closely with around the world for the fastest delivery available. Complete the sentences with words from the box. happy * provide © range * specialize * major * ensure * customized 1 Asa non-vessel operating common carrier, we can offer our customers competitive rates with all major shipping lines. 2 We in solutions for full container loads (FCL) and less than container consolidated loads (LCL). 3. Asa specialist in home textiles, we can offer our clients__services to meet their needs. 4 Ourteam will be to assist you in all matters regarding your order. 5 Wecan you with tailor-made solutions for your air transport requirements. 6 We closely co-operate with air carriers around the world and can offer our customers a wide of flexible and cost-effective services. Now listen and check your answers. When describing a company's services or portfolio, we often use the following expressions: We can offer you a wide range of -. We can provide (you with) customizedftailor-made logistics solutions for... We specialize in Asa specialist for/in .. we can. With our many years of experience .. We have experience and expertise in providing Our team will be happy to handle/assist you . With our dedicated team of logistics experts we can .. Complete the list with your own company’s services. Then present it to your partner using phrases from this unit, 1 range of products or services 2 specialist in 3. experience 4 extra services for customers Present the company’s services to your partner. Use phrases from this unit.UNIT 2 8 Read the following text from a logistics company magazine about new trends in third-party logistics. Then Label the paragraphs with the correct headings from the list. Today's role of major providers * Changing logistics requirements for manufacturers © 3PL in the past * New challenges for 3PL * Change in logistics concepts Recent trends in 3PL 1 Until a few years ago, companies used to outsource only parts of their logistics operations to providers specializing in services such as distribution or warehousing. A single company sometimes had several third-party logistics providers GPLs). 2 The globalization of trade and increasing demand for services, however, has led to a drastic shift in logistics concepts and management with an impact on both producers and logistics providers. 3 As far as manufacturers are concerned, logistics management has become a lot more complex. By now, many of them have learned that outsourcing single segments to different providers has not really made their logistics operations more efficient. That is why they are looking for providers who can provide a higher level of service and more comprehensive supply chain solutions. 4. For 3PLs all over the world, requirements keep getting more demanding with customers asking for a wider range of | logistics solutions. Apart from that, logistics providers today are facing an increasingly tough and highly competitive | market. In recent years, growing pressure ‘on prices has led to a decrease in profit margins. In order to compensate for this, many third-party logistics providers now offer value-added services for their customers. Due to fierce competition in the 3PL market, however, experts predict that only the big international players will be able to work profitably in the future. 5 The big global players, also called super- 3PLs, can provide their customers with comprehensive supply chain or end-to-end solutions. These services usually include forwarding, transportation, consolidation, customs brokerage, warehousing, and distribution, as well as a range of value- added services. Logisties services | 1536 | UNIT2 Logi Q Now say which of these statements are true “or false | istics services In the past, companies used to outsource only segments of their logistics operations. Manufacturers found out that outsourcing to 3PL providers is not efficient. In the past few years many 3PL providers have increased their profit margins. Customers today are demanding more complex logistics solutions. Super-3PLs provide comprehensive solutions to logistics problems. 10 Match the words (:-6) from the text with the correct definition (a-f). outsourcing comprehensive consolidation IDO requirements demand competition including a wide range of services details of what is expected and needed contracting functions out to third-party providers the need for particular goods or services companies trying to sell the same or similar products to customers the grouping of small shipments into one container 11 Look at the three website advertisements for value-added services. Then complete the table. eo GOB - ToC Maxwell Express Logistics Warehousing is just one of the integrated logistics services we provide. Here are some value-added services we can offer: Pick and pack Returns processing Literature fulfilment Credit processing wand much more! ? le Ecce 0 ane 3S #2668 Ow Sichuan International Logistics Our logistics team at Sichuan International Logistics has the experience and expertise to provide our customers with value-added services that complement their basic warehouse operations. Our services include: kitting Packaging services import/export cargo customs clearance Export packing and crating12 UNIT 2 Logistics services | 17 one 2} eo 8 GLX Worldwide Logistics We provide value-added services which complement and enhance all kinds of logistics operations. Our services go far beyond the basic distribution and warehousing services usually offered. GLX value-added logistics services include: Polybagging and shrinkwrapping _Bundling/unbundling Recycling Labelling uJ payment documentation product _—_packing/_other services. I assembly packaging Maxwell Express Logistics Sichuan International Logistics GLX Worldwide Logistics Listen to two short presentations about online logistics services. Then say which of the statements are true Express Logistics Online Shipping 1... helps you book pick-ups and track shipments. oO 2 .. you can log on by selecting your country. OO 3 «you can check shipment records for up to 60 days. Intercargo E-Shipping 4 .«allows you to make price enquiries, O 5 «you can cancel orders. ia 6... you can download pdf documents. EXPLAINING ONLINE SERVICES When describing online functions or tools, you can use the following phrases and expressions: The price request too! allows you to obtain prices for shipments. E-Shipping helps you prepare/print/track/select.. online. To ..., Gust) sign up/register for/log on to For price requests, please use To access shipment details, click w-18 | UNIT 2 Logistics services, 13 Match the beginnings of the sentences (1-6) with the endings (af) to make sentences from the recording. 4 With Quick Online Shipping you can find This online tool allows you To use QOS, simply log on After registering with E-Shipping, you can make |_ You can also oO aun wn With a mouse click you can also oO to plan shipments, book collections and deliveries. price requests, schedule transport, and obtain real-time shipment information. track pick-ups and deliveries. download commercial documents in pdf format. by selecting your town or region from the drop-down menu on the left. the right service to suit your shipping needs. 14 Three people describe how IT has changed their jobs. Complete their statements with words from RFID * enter * track * mobile phone * device * digital » GPS-based * tag 1 Customer Tracking shipments is a lot easier with SMS-Fast Track. Now I can use my to find out where my shipment is. | just have to * my air waybill number ‘on my mobile and wait a few seconds. Then | get a reply with the details of my consignment’s current status. It's such a great idea! 2 Truck driver All our trucks are equipped with a > truck support system now. For me that’s a great help as | can always use maps that show me exactly where | am and where | have to go. Obviously, it’s also useful for the company. They can “my vehicle at any time, see the route I'm taking and where | make stops. And what's very handy for me ~ the system also comes with a * camera $0 I can take photos if there's a problem while I'm on the road. 3 Manager ata trailer storage yard | work at a trailer yard where trailers filled with packaged goods are kept until they go out to the customers. The site is very large and we have four different areas for trailer storage. Until the new “tag system was introduced, it could easily take a couple of hours to find the trailer we wanted. Now it’s a matter of minutes to locate the vehicle we're looking for. All we have to do now is put the "ona trailer and use a mobile ® to identify it. It really saves us a lot of time.UNIT2 Logistics services | 19 A new tracking device for US postal services improve their sen yi "i about ¢ inthe pas ike cars, but until now none of have systems was smell eno Now hat'sall chonged. As well asfiing into @US standexcsize business eter, the G log, ‘emenis: its bendable and able to withstand rough handl own into sacks, then d shufling systems not ansmit its postion during transit, but stores the journey log on am d necking only when on the r 36 read by a loplop computer. T com checking is position every few minute fer, tthe e ot ative at its destine ye camying it 1 Have you ever experienced delays in postal services when sending or re 2. Do you think this device should be used in your home country’s postal 3. Do you know any other useful electronic devices in logistics and trea4 Inventory management and procurement Check your knowledge of key terms in inventory management and procurement by choosing the best definitions for these terms. 1 Economies of scale: a Reducing costs per unit by increasing Ee fi production ~_ b Cutting costs by reducing output, 2 Buffer stock: Goods kept in store to cover seasonal demand e.g. Christmas sale b Goods kept in store to cover unforeseen shortages or fluctuations in demand 3. Factory gate pricing: a Transport costs are not included in the purchase price of a product b The price is lower because you buy directly from the manufacturer 4 Supply chain: a The close co-operation of all parties involved in the making, selling, and delivering of a product b_ Network of stores that supply customers with a wide variety of products 5 Tender: a Anassessment or calculation of the approximate cost or value of a product or service b An offer for goods or services that follows a request for a quotation made by an official body, e.g. local government Match the beginnings of the sentences (1-6) with the endings (a-f) to make definitions of more key terms. 1 Lead time is the time 2 Procurement is 3. Aretailer is a business oO 4 Customer order cycle time is the time [_] A wholesaler is CL JIT just in time is a conceptUNIT 3 — Inventory management and procurement | 24, a customers are prepared to wait for the delivery of their order. b of reducing inventories by co-ordinating the delivery of materials just before they are needed. Cit takes to produce and supply a product. dan intermediary between manufacturers and retailers which buys in large quantities and resells, in smaller quantities. e that buys products from wholesalers or manufacturers and resells them to the ultimate consumer. f the purchasing of goods (materials, parts, supplies, equipment) required to run an enterprise. Listen to an expert presenting an inventory management system to the managers of a large retail store. Then say which of the statements are true / or false! The inventory system is called CPR. Oo It’s a sales-based system. The system co-ordinates the flow of information and goods in the logistic chain. Young Fashion has used the system for six years now. Orders are electronically transferred to the warehouse. Oo The store has reduced transport and inventory costs by about 25 per cent. Listen again and complete the sentences with the words from the box. stock + lead times * replenishment * processing * generated * data interchange * point ¢ schedule * inventory * retailer 1 Today I'm going to tell you something about CRP, that means continuous 2 I'llalso explain how it can be used to lower inventory and operational costs and to shorten product ‘ 3. First ofall, you decide what products you want to order at what level. The system will use this information at the of sale in the retail store 5 The leading Russian clothes Young Fashion introduced continuous replenishment three years ago. 6 With the new system all orders are by computers, which process data received from cash registers. 7 The orders are sent to the warehouse by electronic , where they are processed. And finally the goods are delivered to the different outlets according to a Since the introduction of the CRP system, Young Fashion have managed to cut and transport costs by about 15%. 10 Moreover, errors in order have been reduced considerably by using scanning technology and EDI22 | uN Inventory management and procurement We often use the passive voice to describe processes, especially if we are more interested in the action itself than in the person who does the action. Itis formed using the verb to be and the past | participle (third form of the verb). We use by at the end of the sentence to say who or what does the action. The goods aredelivered to a depot. The order is generated by the computer. Orders are generated based on data received from cash register. Goods are delivered to the retail outlet. System is activated at the point of sale. Orders are sent to the warehouse. Orders are processed. Sales information is transferred to the CRP computer system. Here are some more inventory management techniques. Complete the sentences with the passive form of the verbs in brackets. 1 Asystem in which the inventory (monitor), planned and managed by the manufacturer on behalf of the customer (often a retailer). 2. Assystem which is similar to CRP. It (use, often) for products that need to be supplied frequently and in small batch sizes. 3. Itmeans that orders (transfer) electronically to the manufacturer. Then they (deliver) to the retail store. 4 Real-time demand (identify) by electronic cash register and the product movement (co-ordinate) from supplier to the retail store. 5 Products that have similar characteristics regarding their selling profile (categorize) into ‘families’.UNIT 3 Inventory management and procurement | 23 6 Now match the ptanning techniques betow with the definitions in exercise 5. DSD = Direct store delivery CM = Category management VMI = Vendor-managed inventory CRP = Continuous replenishment OR = Quick response 7 Complete the job advertisement for a corporate procurement manager with words from the box. fulfilment * negotiation * 3PL providers * procurement * command * vendors + supply chain * relationship \ We are looking for proactive and dynamic professional to take care of our strategic procurement and supplier management. Reporting to the Director of Corporate Procurement, the successful applicant will be responsible for managing both internal and extemal customers and for working with the appointed While liaising with the team, and related stakeholders, you will also be involved in providing ‘business support to optimize finance-logisties processes, order 5 and logistics costs. Other responsibilities include providing initiatives to help maximize company business profitability and efficiency. ‘The ideal candidate should have a d logistics management with a deep understanding and knowledge of the China logistics ‘management or ‘market. You should have at least 5 years” experience in a multinational company and you should possess outstanding skills. Based in Macau, excellent of English and Cantonese is a must with Mandarin an advantage. Ifyou are interested in this role, please send your CV in Word format to. 8 Read the job advertisement again and answer the questions. 1 What area will the new corporate procurement manager head? 2 What are the procurement manager's main responsibilities? List two or three. 3 Who will he/she collaborate with closely in his/her job? What qualifications are expected? 5 What kind of experience is required? Can you think of other areas which are important in procurement? Discuss with a partner.24 | UNIT3-_ Inventory management and procurement ® 9 10 ‘Three purchasing managers are discussing strategies for negotiating with a supplier. Listen to the discussion and answer the questions. 1 What kind of relationship do they want with the supplier? 2 What would be the benefits of such a relationship? 3. What market position does the company have? 4 What kind of products do they make? 5 What kind of agreement are they interested in? Match the beginnings (1-6) with the endings (a-f) of the sentences from the dialogue. 1 How do you 2 I think we could CL 3. What are your | 4 Yes, and | also suggest telling them 5 In my opinion it would also be important O 6 Good idea. And why don’t we LC a to point out that we're interested in establishing a long-term agreement. b that this a good opportunity to associate with a brand like ours. ¢ feel about that? d__ lower costs considerably. e say that it’s their chance to enter the pharmaceutical market? f thoughts on that, Gisele? What do you think? How do you feel about that? ‘What are your thoughts on that? Do you agree? | suggest that we .. In my opinion we should .. Pethaps we should . | Why don’t we .. 2 eS Sri That's a good idea. That sounds good. lagree. That's right.UNIT 3 Inventory management and procurement | 25 11 You have received the following email from the purchasing department in your company. Work ‘out a few suggestions and reply to this email. Ailes Meri Dear colleagues: ‘We are currently looking into all areas of procurement to see how we can optimize processes and save costs. Perhaps you could get back to us with a few suggestions regarding possible improvements in your own department or work environment, Thanks in advance for your co-operation, Regards Luke 12 Work with a partner: suggest these points and comment on your partner's suggestions. Pataer® Flesh p72 13 ASpanish courier company receives a quotation for packing labels and consignment noté Put the words or phrases into the correct order to make sentences. The first parts have been done foryou. Dear Ana Please find attached / for three new products / your request / ‘our quotation / according to. ‘Our prices / annual consumption figures / the basis of / your forecast of / are calculated on ‘As requested / pallets to / we will deliver on / Barcelona or Madrid, For a/we can offer you/ of 2.5% / contract term of /a discount / at least two years. In the attached / all prices / have been listed in / your requirements / quotation sheet / columns according to. ityou have / me know / any further questions / please let We look / hearing from / forward to / you soon. Regards Enrique26 | UNITS Inventory management and procurement 14 15 When giving a customer a quotation it is necessary to include details on a number of things eg. prices, discounts, and delivery terms. Here are some useful phrases for quotations: Prices Please find attached our quotation for We are pleased to quote as follows. We can quote you a gross/net price of The prices quoted above include We can offer you a price of .. er . Discounts We can offer you 10% off the retail price. We allow a 2% cash discount for payment within 30 days. Our prices are subject to a 25% trade discount off net price. We grant a trede/quantity/cash discount of .. % on our list prices. If your order exceeds 2,000 items, we can offer you a further 10% discount. Delivery Delivery can be effected immediately after receipt of order. As requested, we will deliver on pallets to .. We would be able to dellver within 10 days of receipt of order. Match the beginnings (:-6) with theen igs (a-f) of the sentences. For orders exceeding 500 pieces, oO We grant a cash discount The prices quoted As requested, we | Our prices are subject Oo The net price aunun will deliver on pallets to Rotterdam, to a 25% trade discount off net price. we grant a discount of 5%. of this article is £25.00. above include transport charges. of 3% on our list prices. so ance Give a customer a quotation by email based on the following details. GPS system ‘Road Navigator TX-2300° Price: $975.00, more than 10 items: additional 8% discount price includes 15% VAT delivery within 6 days of purchase orderUNIT3 Inventory management and procurement | 27 Behera Reg Jost companies and governments today M are under increasing pressure to operate more efficiently. And many of them are realizing that effective procurement can reduce costs, improve processes and increase productivity, In the past few years strategic sourcing has | become a frequently used approach in this context. But what is strategic sourcing? To put it ! | simply, it means that companies are adonting anew strategy for how they buy services and products. | Strategic sourcingis a systematic process of al analyzing expenditures, internal and external influences, and finding out what kind of supplier relationships are necessary to help achieve the company's goals. Before the company decides to purchase a product or service, strategic sourcingis used to consider the total cost of a product or action, not just the price alone, Inthe past, many purchasing managers neglected the fact that low purchase cost does not necessarily mean low total cost. In strategic sourcing process other costs are examined as well e.g, the cost of purchasing, transport, support, maintenance, and disposal. Leading companies have realized how much they can benefit from strategic sourcing, and many have already achieved impressive cost reductions. 1 What do you think of the strategic sourcing approach? 2 How are goods purchased in your company? 3 Do you buy goods for the company? What is the standard procedure?28 | Modes of transport Match the pictures of transport and handling equipment (af) with the words (1-6). swap-body container ship srappler tft road-railer trailer river barge LGV (large goods vehicle) Match the different types of freight traffic (1-6) with the definitions (af). multimodal piggyback intermodal unaccompanied block train single-wagonUNIT4 Modes of transport | 29 a The driver does not stay with his road vehicle during transport by rail or ferry, b Goods are transported in the same loading unit or vehicle using different modes of transport, The handling of the freight itself is not necessary when changing modes. © Asingle shipper uses a whole train which is run directly from the loading point to the destination. No assembling and disassembling is required. Carriage of goods by at least two different modes of transport, e.g. shipping by motor lorry and aircraft. Train is formed out of individu different destinations. fF Combines road and rail transport: whole mot wagons or sets of wagons which have different origins and lorries, trailers or swap-bodies are carried by rail ‘Two employees of a forwarding company are comparing transport modes for a shipment from western China to Shanghai, Listen and correct the information in the table. inland waterways road rail (express service) speed in days 7 4 2 cost low compared with compared with road: barge: 60% higher 40% higher flexibility high very high low Complete the sentences’ to check, ith the correct form of the words in brackets. Then listen again 1 How long would it take by barge? ~ Normally about six days, but it often takes __ (long) if the weather's bad 2. It’s cheap — it’s actually (cheap) of all the transport options. 3. It would only take four days to ship by truck, but the cost would be about 5 (high) than by barge30 | UNIT4 Modes of transport 4 Rail would definitely be _____ (fast) than the truck option if we use the express service that takes three days. 5 Butit would also be (expensive) than shipping by road — transport costs are about 40% higher. 6 And then perhaps we'd have to use the standard train, which is much (slow). Answer these que: 1 Why is the barge option not very flexible? 2 What do they decide to do at the end of their discussion? MAKING COMPARISONS When comparing two or more things we use comparative adjectives. The comparative form is ~er for short adjectives with one syllable, and two-syllable adjectives ending in-y. Transport by sea is cheaper than transport by air. | Steel is heavier than paper. We use more + adjective with longer words. Shipping goods by road is more expensive than shipping them by rail. Some transport modes are more reliable than others. Some adjectives have irregular forms. good / well ~ better Our rates are better than theirs. bad / badly ~ worse Their service is worse than ours. far / further ~ furthest This shipment will travel further than the last one. 4, Workin pairs. Compare different transport modes using some of the adjectives in the box. Example: | think shipping goods by rail is faster than sea iransport, adjectives slow /fast “expensive / cheap air safe road suitable sea _ reliable river environmentally friendly pipelineUNIT4 Modes oftransport | 34 5 Match the pictures (ad) with the names (1-4). c d 4 gantry crane 2 1SO container 3. reach stacker 4 transtai 6 Nowcomplete the descriptions of intermodal transport and handling equipment with the verbs from the box. fitted * straddle * mounted + loading » attached * reach * handle * piling * made * move 1 A piece of machinery used for _ = iners from ships onto trucks or rail wagons and vice versa. It is rail-mounted and can _ at least four railway tracks. It is motorized and can parallel to the ship's side. and unloading cor32 | UNIT4 Modes of transport 2 A special type of device which is able to very heavy loads. Its used for transferring swap-bodies and containers from rail wagons to trucks and vice versa. It has four legs ‘with wheels and a spreader beam which can span a wide area. It can be © on rails or rubber tyres and is able to straddle several rows of containers. 3 Akind of fork lift truck used in container handling, It is equipped with a spreader beam and a lifting arm and can be used for lifting containers and them on top of each other. It is very flexible and has a high stacking and storage capacity as itis able to * beyond the first row of containers to lift a container. 4 Arigid box of steel which is very common in intermodal freight transport. It can be used for transport by sea, rail, air, and road. It is available in many different versions and sizes. For example, there are open-top and flat-rack versions. Some of them have wheels or a bogie ® to them. The most common lengths are 20, 40, and 45 feet. It is made to the specifications of the International Standards Organization. 7 Replace the underlined words with verbs from the box that have the same meaning. Use the correct verb forms. stack * come * run * fix * attach « lift © fit This type of crane is used for raising containers. 2 Containers are availabl in a variety of versions and sizes. 3. It's. a heavy-duty fork lift truck equipped with a spreader beam. 4 With this device you can pile containers on top of each other. 5 Some containers have a bogie fixed to them. 6 This device is mounted on rails. 7 The crane is motorized and able to move alongside the quay.UNIT4 — Modes of transport | 33 9 8 _anemptoyee of a transport company presents some container options to a potential customer. Listen and complete the table with the missing information. Type of container suitable for transport of 1 2 3 tanktainer 4 5 flat-rack Q Listen again and complete the sentences. level * tarpaulin * frame + machinery * lashing * removed * controlled plugs 1 It comes with a timber floor and has various devices to secure the load. 2 These lashing points are located horizontally at floor z 3. Itis temperature: and is particularly suitable for cargo that needs regulated or cool temperatures. This is a standard container with a tank fitted inside. 5 Asan extra, we also offer tank containers with electric in case the cargo needs cooling or heating during transport. 6 It comes with a PVC cover instead of a roof panel to allow loading from the top. 7 The doors can be to make loading easier. 8 We recommend this special type of container for the transportation of heavy _ and pipes. Now label the different types of containers 1-5.34 | UNIT4 Modes of transport ‘CONTAINER FEATURES We recommend this type of container for .. itis particularly suitable for. It comes with .. ‘Asan extra, we also offer Ithas ... for loading 10 Describe the container features to a partner using words from this unit. Frartnen rized partner Fle 04 9.71 11 Sort the goods under the correct heading. perishable cargo non-perishable cargo heavyweight and overwidth cargo meat * steel pipes * crude oil © fresh produce * industrial boilers * seafood * alcohol * dairy products tractors * chilled or frozen foodstuffs * harmful chemicals Can you think of other types of goods? Discuss in a small group.UNIT4 — Modes of transport | 35 12 Now say which of the following containers you would recommend for the different types of cargo from exercises. a reefer b flat-rack container tank container 13 complete this crossword puzzle on transport modes with words from the unit. [ EI ia EEE E Across 2 Another word for rubbish. 4 Adevice for lifting heavy loads. 6 Another word for ship. 7 The opposite of soft or flexible. Down 2. Another word for pipe. 3. Acontainer for liquids is a ... container. 4 Kept cool, but not frozen. 5 Acontainer fitted with a cooling system.36 | una Pre sof transport Freight Transport Logistics in Europe - the key to sustainable mobility Europe's transport policy has been characterized by liberalisation and harmonization over the years. This has slowly shaped the transport system into what is today. Globalization and the concept of wider Europe create further challenges. The fast growth of freight transport — driven to a large extent by economic decisions — contributes to growth and employment but also causes congestion, accidents, noise, pollution, increased reliance on imported fossil fuels, and energy loss. Infrastructure resources are limited and any disruption in the supply chain (ie. energy) has necessarily a negative impact on the EU economy, Without adequate measures, the situation will continue worsening and increasingly undermine Europe's competitiveness and the environment that we all five in To overcome such problems, Europe’s transport system needs to be optimized by means of advanced logistics solutions. Logistics can increase the etticiency of individual modes of transport and their combinations. As a result, fewer units of transport, such as vehicles, wagons, and vessels should carry more freight. Impact on ‘the environment will decrease accordingly. Rail and inland waterways need to be modernized. Air freight should be more Closely integrated in the system. The positive evelopment of short sea shipping should be accelerated. Deep-sea shipping and its hinterland connections need to be enhanced Shifts to more environmentally friendly modes must be achieved where appropriate, especially on long distance, in urban areas, and on congested corridors. Atthe same time each transport mode must be optimized. all modes must become ‘more environmentally friendly, safer, and more eneray efficient. Finally, co-modality, ie. the efficient use of different modes on their own and in combinations, will result in an optimal and sustainable utilization of resources. cece 1 Do you also have to deal with growing freight traffic in your country? 2 How do you think transport systems could be improved? 3. How do you think intermodal transport systems can make freight transport more efficient?a= Planning and arranging transport Bau Make a list of all the different factors that would influence your choice of transport method for a shipment. Complete the diagram below. 1 Listen to the tetephone dialogue and answer the questions. What are the two different rail transport options? When do they want to ship? Where will the shipment go? Which train option is recommended for large volume shipments? What would make transport cheaper? How much time will they have for loading the rail wagons? 1 2 3 4 5 638 | UNITS Planning and aranging tansport 2 Complete the sentences with the words from the box. Then listen again to check. ifyou 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 Forlarge volumes, | would using block train transport. 5 Ifyou want to ship smaller quantities, the single-wagon option would be 6 IF flexibility is important, | would you book the flexitrain block train option 7 As , [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 ‘When asking for information we always use polite language. We often start with a more ‘general request for information before we ask more specific questions. Indirect questions such a Could you tell me how much it would cost? are more polite than direct questions e.g. How much would it cost? I'd like to ask/enguire about .. ’m calling about... (on the telephone) a writing about/with regard to... (in an email or lettef) Could you tell me how much/manyfong/often.. Customers may need advice on transport options, freight and insurance rates, shipping and packing details, the route, details regarding weight, dimensions, and measurements. For this consignment | would recommend/suggest using air transport. I recommend/suggest that you ship the goods by road, We/You should also consider air transport for. That depends on your specific requirements. Sometimes you need to provide the customer with several alternatives before a decision can be made. Another option would be to u. Of course it would also be possible to... (instead). Alternatively, you/we could ..UNITS Planning and arranging transport | 39 3 Here are some more phrases. Sort them under the correct heading. ACustomer enquiries __—_‘BAdvice and recommendations | 6 Offering alternatives | (would) need some information regarding... In that case | recommend/suggest that you use/ship... | think the best option would be to .. Ifyou prefer ..., we could also arrange ... Could you let me have some information about We can provide/arrange/ship ... if you like ‘As an alternative, we can offer you... What would be the cheapest/fastest/safest/most convenient way/option? 4, Match the beginnings of the sentences (1-6) with the endings (a-f). I would need some information Could you let me know In that case | suggest that you For a consignment this size | Of course it would also be We can also arrange transport auRwene would recommend rail transport. by courier if you prefer, regarding loading times, what the transit times are? possible to ship by express service instead. use the cheaper sea freight option. s>aaneePlanning and arranging transport 5, Work with a partner. Follow the steps below and practise making enquiries and giving advice. Use phrases from this unit, A B Tell B what you would like to enquire about. Ask A to be more specific. Give B some details of your shipment. Recommend one or two options. Tell B you are not sure you want this option. Offer another alternative. ‘Ask B about order/cancellation deadlines. Answer B's question. Tell B you will give him/ ri her a quotation within the next hour. PPO Thank B for help. © 6 _Listentoa shipping agent describing one of the containers available. Complete the missing * details and label the drawing with the words from the box. height © payload « length « tare weight * width » gross weight Type of container: 40 ft open top 1 __: 4,030 kg 2 £32,500 kg. 3. maximum 2 28,470 kg, e S Internal measurements: a 4 12,02 m 5 12.35m 6 22.32m 7 Listen again and note the non-metric measurements the agent mentions. 1 tare weight: 2. internal length: 3. internal height:10 UNITS Planning and arranging transport | 41 Rewrite the sentences. Example: The container is 6 metres long. The length of the container is six metres. (Or: The container’s length is b metres.) The package weighs 45 kg. This seagoing vessel is about 30 m wide. The case we need to ship is 1 m long, 50 cm wide and 35 cm high. Its depth is nearly 3 cm. The ship's length is more than 65 m. The open container’s door height is 7 ft 10 in. auRwne What do these abbreviations stand for? ft kg oz cm tb cuyd © i pt 10 gal Coy aunwne Put the words from above into the correct column in the table. Complete the table with other measures and weights you can think of. ner length yard (yd) weight gram (g) surface square millimetre (mm) volume fluid ounce (fl oz)42 | UNITS Planning and arranging transport 11 Describe the measurements and weight of a container to your partner. Use phrases from this unit. | Numbers: When dealing with consignment details it | Le ee is often necessary to talk about numbers. We write a comma to show thousands (but we don't say it) 235,000 two hundred and thirty-five thousand We use a point to show decimals: 45 one point five We use the word and after hundreds: 185 cone hundred and eighty-five When arranging transport, we need to give details about the size and weight of the consignment to be shipped. Size Our consignment is 3 by 2 by 2.5 metres. This box measures 2 by 1.5 by 2.5 metres. Its measurements are 20 by 85 by 6o centimetres. Weight | The empty container weighs 5,000 kg. | The netitare/gross weight of the container is .. kg/tons. The container’s maximum payload is | Dimensions The box is 4o cm high/tong/wide/deep. Its/The height/length/width/depth is 40 cm. Remember: This container is almost six metres/feet long (not six metre/foot’) But: I's a twenty foot container. (not feet!) @® 12 Listen to the dialogue between a forwarder and a customer asking for a shipping quotation. 2 Then say whether the statements are true 7 or false |X |according to the dialogue. Karla Hanssen needs a quotation for air freight to the United Arab Emirates. They want to ship cooling units to Abu Dhabi. The consignment consists of 18 boxes. They want to ship from Sweden. The units should be picked up on August 6". aunwwn Martin will call back within the next two hours.UNITS — Planning and arranging transport | 43 13 Listen again and complete the missing details in the online quotation form. Quotation form Company name: ‘ Contact: Karla Hanssen Tel No: (0046 890265030 Fax No: (0046 890265039 Email address: [email protected] Shipping information Point of origin: fs Destination: i Method of transport: Air Number of units/items: : Pick-up date: Delivery date: Freight information Volume (m’): Joga Total weight (kg): f Dimensions (cm): 370 cm high, 145 cm wide and 82 cm deep Type and nature of goods: Special requirements Hazardous: . Other: must arrive by . 14 Work with a partner. Write an email asking for a quotation. Include the information from the order form above. Well need a quotation for a shipment to... Please quote for (the supply/transport of) Please send us a quotation for .. Please quote your lowest prices for. Your quotation should include detailed information on freight and insurance rates, delivery terms, delivery date, and terms of payment.44 UNITS Planning and arranging transport 15, Put the words in the right order. a shipment / send / us / a quotation / please / for / to Madras state / delivery date / please / in your quotation / your earliest a part truck load / shipping rates / what / your / for / to Birmingham / are ? 1 2 3. let us/ could / the following / please / have a quotation / including / details / you ? 4 5 on sailing times / your quotation / detailed information / should / and insurance rates / also include 6 the following consignment / please / for / of / quote / the transport In this week's issue of our GLOBAL TRADE magazine swe offer some expert advice on how to successfully ship goods abroad from Hank Wilcox. As the export manager ‘for Jonston Cosmetics, Hank oversees the distribution of cosmetic products to more than 40 countries worldwide. Overseas trade and logistics issues play a major role in the company’s business. How do you successfully manage shipping logistics at Jonston Cosmetics? I think it’s most important to work with good freight forwarders. So before we actually choose a fei service level comes up to our standards. hit forwarder, we check whether their What exactly does that mean? ‘Well it means that we only want to work with forwarders who meet certain requirements. One thing that’s really importants reliability. We need to be 100 per cent sure that our consignments are delivered to the customer at the right time. We also expect a high level of communication and co-operation between the forwarder and ourselves. And our forwarders must be able to provide flexible transport solutions at short notice. And what about transport costs ‘The price is also important obviously, but as I said, there are other thi ider such as, quality of service, handling of paperwork and Sere advice. We usually ask for four quotations for each shipment. What about all the documentation require overseas trade? We have a team of experienced logistics people who discuss the best possible freight options with the customer and handle all the paperwork. Documentation is really very important, especially if things go wrong. So we always make sure we have copies and duplicates of every document in case something is lost. Consignments can easily be damaged in transit. Are your customers aware of that? Yes, we always advise our customers on the risks and offer them the most suitable insurance for their consignments. Unfortunately, handling damage is quite common so it’s always a good idea to insure a consignment. And insurance is less expensive than most people would expect; it usually costs between one and two per cent of the consignment’s value. Do you have any experience in dealing with freight forwarders? 2. Does the text mention everything a ‘good’ forwarder should be able to do? Can you add other aspects? Ifyou had to choose a forwarder, what criteria would be most important for you? 4. In what case would you recommend freight insurance?| 45 Shipping goods Do you know what these markings represent? Discuss with a partner. Try to label the shipping Uy markings with the correct words. HOB Do you know any other markings? 1 Hereis an extract from a manual provi words from the box. ing rail loading instructions, Complete the sentences with carefully * attention * overhanging * sure * place * examine * secure * instructions * fit» distribute * exceeded * diagonally _ vehicle carefully. Do not place items _ __ across the wagon. When loading is complete, ensure that it fully complies with the given in our Rail Instructions Manual. Examine load carefully and make itis undamaged and suitable for loading. longer, heavier pieces on the bottom of the load. Make sure that load is7 Ensure vehicle is to be loaded. 8 Strap loads. 9. When checking the vehicle, give special to door securing mechanisms. 10. Examine vehicle and load after loading. Er load as evenly as possible and make sure wheels are evenly loaded. 12. Check whether vehicle capacity has not been Now match the correct sentences with the instructions below. a. before loading: 1, b during loading: © after loading: Match the beginnings of the sentences (1-8) with the endings (a-h). Remove protruding ] Cover the damaged wall ] Secure the load to Fill empty Replace damaged pallets Align the load Stack the boxes Seal the container after aN anewn prevent movement. on pallets. vertically. staples or nails. spaces between products. loading is complete, of the container. with new ones. seme ance Kee ‘When explaining how to do something, you can use the imperative form of the verb. Use the infinitive without fo, lke this: Examine the load carefully. Do not overload the vehicle.4 @ 5 UNIT@ — Shipping goods | 47 Complete this email about an urgent shipment with prepositions from the box. by * on © with © in © out © to between © of Sonja I'm afraid there isa problem__ the scheduled deliveries France next week. Our customer GLP Pharma in Brest has just informed ime that they are already Sof stock and need an urgent delivery of the 5 mg ‘30 and 90 piece packs this week instead “next week If possible, we must try to make one partial delivery Wednesday (or as soon as the packaging is finished) of the Smg 30 packs. We need a direct truck ® our production plant in Germany and Brest. f we ccan ship the frst part on Wednesday morning, the truck should arrive 7 Brest on Thursday afternoon, The second delivery should be made on Friday with the rest of the mg 30 and the 90 packs. As the products are needed * Monday, the truck must be unloaded in Brest on Saturday or Sunday. Please let me know if there are any problems! Regards Jon Frederikson Logistics Manager ‘Sonja and Jon are discussing the urgent delivery over the phone. Listen and answer the questions. Can they use one of their usual forwarding agents? How long would the fastest delivery service take? Would express delivery be a good option? Why is it not possible to deliver at the weekend? What does Jon want to do next? Put the words in the order they are mentioned in the dialogue. Then listen again to check. really / here /I think / a problem / we've / got use / this shipment / our / for / one / unfortunately / we can't / of / regular forwarders we / smaller / this / deliveries / means / partial / that / would / have several have to /a lot more / and / as / we'd / pay / a result Saturdays and Sundays / because of / deliver / we / can’t / at the weekend / di the HGV 6 problems / this delivery / no idea /1/ would / cause / so many / had g ban /on/48 | UNIT Shipping goods _ INFORMING SOMEONE ABOUT PROBLEMS ae ee Telling someone that something cannot be handled in the way it was planned or that something has gone wrong can be difficult. That's why it is important to stay calm and use polite language. It is usually a good idea to say what the problem is exactly and then explain the situation, We often use beginnings such as /’m afraid .. or 'm sorry, but. even if we are not responsible for the problem. First, we give a brief introduction and then go on to explain the situation in more detail: I'm afraid there is a problem with customs clearance, I'm sorry, but there will be a delivery delay. We may also want to give reasons for the problem: The delay was caused by a rail strike in italy. The consignment has to be repacked because the carton is damaged. There was a delay because of bad weather. There was a delay because the weather was bad. We may also want to talk about contrast, e.g, when we explain that there was a problem, but it hasn't affected the outcome: Although the load wasn't secured propery, it arrived intact. The load wasn’t secured properly, but it arrived Intact. In spite of the strike, the consignment arrived on time. Despite being delayed, the consignment arrived on time. Sometimes we also need to explain the consequences of certain events: The result was that the goods didn’t leave the warehouse until Friday. Asa result, the shipment arrived two hours late. There’s fog at the airport so the flight hasn't taken off yet. 7 Complete the sentences with words from the box. 50 * because * although * due * asaresult * despite * because * in spite of Our customer wants to ship valuable freight, we need to think about insurance. A patt of the shipment seems to be damaged of rough handling. the customer needed them urgently, the goods couldn't be delivered at the The flight was cancelled to bad weather. 5. The driver had the wrong address. it took him three hours to deliver the pallets. 6 The consignment arrived on time all the customs formalities at the border. 7 We are unable to ship today we've had problems with our dispatch. 8 being well secured, the load was damaged on arrival.UNIT® — Shipping goods | 49 8 choose the correct words to complete these sentences. 1 The documents stated the wrong quantities. As a reason/result/cause, the shipment was not accepted at the warehouse. The delay was found/noticed/éaused by an accident on the motorway. When I spoke to the logistics manager, it noticed/saw/tured out that they had used different packing material. 4 Unfortunately, we are unable to deliver the consignment due to/because/S0 technical problems in our warehouse. 5 Although/In/Spité Of/But the delay, the delivery will still arrive on time. 6 What is the cause/reason/résillt for this delay? Q Youarea freight forwarder. Call your partner to inform him/her about a delivery delay. Use phrases from this unit. 10 There are six mistakes in this email. Can you correct them? EI 4 Advice of dispatch Dear Cheng Please find attach the following documents: delivery note N° 70007108, packing list, and shipping order. ur forwarder has just picked up the goods trom our warehouse. The goods should be at your disposal at Monday 31 October 2008. Please notice that a copy of the batch certificate will be send to you as soon as possible by email ‘As soon as we recieve the original batch certificate, we will send itto you. Ifyou have any further questions, please let me now. Regards ‘Ana Garcia Logistics Manager When dealing with shipments to customers, itis common practice to advise them that a shipment hhas been sent, Often details on departure and arrival times, order numbers, and documents are given. We are pleased to inform you that your order has been dispatched by truck today. Order N° 3012 has been dispatched by flight BA2379 today. We are pleased to advise that your order N° 23/1346 was shipped on board the vessel ‘Ocean Line’ The consignment is due to arrive in Sydney on August 25". The above order has been handed over to our forwarding agents today. The consignment will be delivered to your warehouse in Brussels.50 | UNIT6 Shipping goods 11 Writea similar email informing a customer about dispatch. Include the following information: 1 The order number. 2 When the consignment was sent. 3. How the consignment was shipped | } E i — (road, air, rail, sea). 4 Where it will be delivered. 5 When it will arrive at the customer's site 12 Match the words (1-5) with the pictures (a-e). bale chest barrel/cask J drum ] crateUNIT@ Shipping goods | 54 13 Now match the items in exercise 12 with the correct definition. Large cylindrical container with a flat bottom and top. It is made of wood and is used for liquids. ‘Wooden box made of wooden slats. It can be open or closed and is used for packing goods. Large package of presspacked goods (often raw material), which is tightly bound, wrapped, and banded. Sturdy box with a lid which is made of metal and often used for storage. e Cylindrical metal container for liquids. 14 USTF, international freight forwarders based in Chicago, give some shipping instructions on their website. Complete the sentences with words from the box. mark * clearance * withstand * weight * appointed * exhibitor * importing © individually ane e + @& GO & © vewnexpo_chicago.com fy Shipping Instructions ! As the official international freight forwarder ‘ by EXPO CHICAGO, we will |) co-ordinate all international shipments and arrange customs * for this event. Please carefully ead the following information regarding shipping requirements for ® goods into the US. Packing and Marking 1 Ensure that all boxes are securely packed in order to “ handling by carriers and onsite contractors. 2 Clearly * all cartons, cases, or crates on two sides. 3. Ifyou ship your goods in a container, make sure that all cartons are _ ® ‘marked and labelled in the following manner: Number of stand: Case number (...)of(..) Total Sinkg:ws Heathrow’s Terminal 5 was Officially opened by the Queen in March 2008, operator BAA said that it would put the airport at the cutting edge of global travel. The complex, which cost £4.5bn, includes 50 new aircraft stands, a large car park a well as rail and underground links to London. itis designed to handle 12,000 bags an hour. BAA claimed that checking in for fights would be simplified for up to 30 million passengers a year by online checkin, fast baggage dropping facilities and sophisticated baggage handling, Two weeks later, on launch day, however, dozens of flights in and out of the new terminal had to be cancelled due to a breakdown of the baggage handling system. By the end of the first day, hundreds of passengers were lett stranded at the airport and there was a backlog of more than 15,000 bags. What had gone wrong? On launch day problems started almost immediately, when staff and passengers had trouble locating car parks, Delayed opening of checkin then led to long queues. Additionally, workers in the baggage sorting area had problems logging on to the computer system or could not handle the RMS (Resource Management System), which allocates baggage handlers to load or unload aircraft. As the checkin staff were not aware of the situation, they continued to add luggage to the system, As aconsequence, checkin had to be suspended in the afternoon. An aviation analyst later explained that the backlog of baggage was mainly caused by problems with the terminal's three stage baggage processing system. The first stage, the fast bag drop-off, was working as planned, but the second stage, an underground conveyor system, had become clogged up because baggage workers were not able to remove the bags quickly enough at the other end. BA said that they knew the first day would be critical because of the size and complexity of the move into Terminal 5, and that they were working hard to resolve these issues. 1 What are the main logistics problems mentioned in this article? 2 Have you ever experienced similar problems at an airport? 3 How important is logistics for an airport?Warehousing and storage ay 1 hand pallet-truck ] tote bin fork-lift truck (CB truck) roll-cage pallet Euro pallet or UX) pallet trolley aunsun 1 Read the text describing warehouse areas and label the areas with words from the list. sortation * marshalling and dispatch © receiving * collation and value-added services * back-up storage * order picking First of all, there is the area. That's where all incoming goods arrive and documentation is checked and recorded, Goods are often unpacked or repacked here to make their format more suitable for warehouse handling. The area holds most of our warehouse inventory. In the area the goods are selected in the right quantities, that means the quantities required by the customer. Here we also break bulk. That means, for example, after receiving goods in large quantities (e.g. pallets), we need to pack them in smaller separate units for the customer. In the + area we deal with smaller order sizes. Sometimes several orders have been batched together to simplify the picking process and now need to be sorted down to individual orders.54 | UNIT7 Warehousing and storage After picking, the goods are consolidated and made ready for dispatch. Depending on the customer's requirements the goods may be packed into cartons or cases or they are wrapped (Le. stretch-wrapping or shrink-wrapping). Some warehouses also provide special services such as labelling. This part of warehouse operations is called s ‘The final stage in warehouse operations is the area. The goods are brought together to form vehicle loads and are then loaded onto vehicles for onward dispatch. 2 Match the warehouse areas (1-5) to the activities that take place in them (a-f). a dispatch he 2. collation O 3. reserve storage Oo 4 order picking and sortation it 5 receiving | goods are brought together for loading and transport where the goods are kept until required the goods are selected and put together in the units required by the customer complete orders are packed and wrapped the goods are prepared for warehouse operations eanoe to the correct defini 3 Match the verbs (1-8) from the text in exer ns (a-h). label repack handle select batch Oj sort O wrap O load put goods on a pallet or vehicle provide specific information on the product itself or the packaging deal with pick or choose put several things together pack in special material for protection put into new units or formats arrange in a special way or order sate ance% ce 5 UNIT 7 — Warehousing and storage | 55 ‘THE PASSIVE. When describing processes, the passive voice is often used with modal verbs such as can, must, may, should, etc. The forks can be raised by a simple pump action. This system must be fitted with detectors. Or we can use the passive in other tenses e.g. the present perfect tense. After the goods have been checked, they go into back-up storage. The unloading has been completed. Complete the sentences using the correct active or passive form of the verbs in brackets. a After the unit load (check), it goes into automated storage. b As soon as an appropriate location (identify) by the warehouse management system, a put-away instruction ___ (must, issue). ¢ After the vehicle driver (report) to the gatehouse, the vehicle documentation (check) by staff. d- Then the packages __ ___ (process) i.e. they (may, labed) with bar codes. e The goods (check) on unloading. f After that, staff (Girect) the driver to an unloading bay or a parking area. Now put the steps in the goods receiving process in the correct order 1-6. a 2 extract from a presentation about a new warehouse management system. Now say which of these statements is true (7 false|X. The existing system is not very efficient. They could centralize inventories in one Canadian warehouse. Cycle times can be reduced by at least half. They could reduce warehouse area from four floors to one. Print on demand allows them to print invoices in several languages.86 | UNIT7 Warehousing and storage 6 Now listen to the recording again and complete the sentences. a 2 3 4 5 6 7 8 I think this new warehouse area management system WMS 2X would help us cut costs and _____ our processes. ‘One great advantage of WMS 2X is that we could reduce the number of warehouses across Canada. Another interresting feature of WMS 2x is customer order ‘ Warehouse could be improved as well by transferring departments. WMS 2X would also help us reduce warehouse area and ground The could be achieved by installing an automated storage and system. The new system would also enable us to the material low at any given moment. This allows printing of labels, brochures and customer in 25 languages. One great advantage is... The most interesting feature is It would help us reduce/increase/improve/optimize .. Another major advantage is/would be. It would also guarantee/ensure 7 Work with a partner. Each of you has a warehouse management system. Present the advantages of your system to your partner. Use phrases in the box. Partner A. Flle or p.78 Partner Fileas. p72 & complete the descriptions of typical warehouse equipment and systems. Use the adjectives from the box. stackable * mobile * adjustable * suitable » bulky © driverless * rigid * collapsible 1 ‘An automated guided vehicle is a truck which is controlled by computer and electrically powered. IBCs (Intermediate bulk containers) made of metal or plastic are__—_, but there are also ones made of canvas, which are Cage and box pallets are fitted with corner-posts and les. They are usually In palletized storage APR, ive pallet racking, is used. Some products are not for palletization e.g. expensive electronic items or large and items. shelving is often used for smaller products in non-palletized systems.UNIT? Warehousing and storage | 87 ® Q Putthestepsint “ and check. integrated packing location system in the correct order (2-8). Then listen You scan the barcode of the shipping label. The system calculates the weight of the package. You enter the system. ‘You choose means of transport. You can put together packages. The shipping labels are printed. You can see and access all positions in the container. The order is complete ~ system prints delivery note. 10 Now listen to the dialogue again and complete the sentences. 1 After the goods have arrived at the packing location, _ to scan in the barcode of the shipping box. 2 you enter the packing location dialogue. 3. OK. I got that. What is 2 4 Well, you can access all positions in the picking container. 5 the package is complete, the system will automatically calculate the 6 ____.. The system will automatically print the shipping labels. 7 And now we of this process. 8 the order has been completed, the delivery note is printed automatically.7 Warehousing and storage Fitst(y)/First ofall. Second(ly) The first step/stage (of the process) is, Then a After that The next step/stage Is... Following that .. Finally .. The last step is... OncejAfter X has happened .. 11 Work with a partner and describe a process from your own job in your own words. Use phrases from this unit. 12 Complete this crossword with words from the unit. Across 2 Keep goods in a warehouse. 4 Put on top of each other. 5 Container for smaller products. 6 Select the right items. Down 1 Form smaller units from larger units (2 words ~ 5, 4). 2. Put into the right order or package. 3. Another word for article or piece.UNIT 7 Warehousing and storage | 59 Risse Read the text about modern warehousing and answer the questions below. WAREHOUSING TODAY r the past, a warehouse was only seen as a place ‘to store things. It often took up a lot of ground space and goods were usually picked by hand or using a forklift truck. During the last few years, however, the role and the design of the warehouse have radically changed. ‘The warehouse is now considered a critical link between a manufacturing plant and the external world with a strong impact on the performance of the entire manufacturing and logistics system. Warehouse automation and complex technologies are now used in order to produce effective operations. Many warehouses today are equipped with warehouse management systems (WMS), which automate the product flow throughout the warehouse and maximize the use of warehouse space through effective picking methods, location consolidation and cross docking, Automated Storage and Retrieval Systems (AS/RS) have been introduced in many warehouses. ASIRS involves high-racking storage with a machine operating within the aisles, serving both sides of the aisle. 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: for example between the receiving areas and reserve storage, or between the picking and loading areas. 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. This makes it possible to locate the item's position in the warehouse and find it again, By using automated technology, such as barcode scanners and RFID (radio frequency identification), warehouse inventory and product flow can be efficiently managed. Combined with modern IT systems, barcodes enable warchouse staff to track and trace all items in the warehouse at any given time and usually in realtime. 1 How is your company’s warehouse organized? 2 Do you work in a warehouse yourself? 3. How has warehousing changed over the last few years?Documentation and finance Here are some more abbreviations. They all relate to documentation and finance. Do you know what they mean? BL B-lofl. D/P: Do-u---ts aga--t p exw cr AWB imo BE uc eV aunune Complete this list of documents used in foreign trade with words from the box. approved * authority * required * commercial * indicating © draft * receipt * conditions * carriage * hazardous a Commercial invoice A document that contains specific information regarding the goods shipped and the agreed between buyer and seller. 2. Certificate of origin Document used in foreign trade which states where the goods were produced. Itis often by customs authorities. 3 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. 4 Airwaybill 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. 5 Consular invoice A special kind of invoice sometimes required by the importing country. It needs to be by an embassy. 6 Pro forma invoice A invoice which the seller prepares before the actual shipment takes place.UNIT Documentation and finance | 64 7 Export licence ‘A document which is granted by a government and states that specified goods can be exported. 8 Customs invoice A specific document required by customs in some countries e.g. US when importing goods. It includes more details than a invoice. 9 Dangerous goods declaration Certificate prepared by the shipperfconsignor which states that goods are handled according to international shipping regulations. 10 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. (CB GLOBAL SHIPPING, US customs brokers handling an international trade event, provide some instructions on their website. Put the words in the correct order. The first word has been done already. 900 S > 8 ‘Tova CB_glabalshippingom To ensure customs entry and avoid delays, please read the following instructions carefully: 1 Provide / you / the goods / to ship / descriptions / clear and detailed / of / wish 2. Identify /to be / HTS or BTN numbers / by using / the goods / shipped 3, Clearly / the items / the value / indicate / of 4 State / were / where / manufactured / the goods 5 Send /and packing list / six copies / the commercial invoice / of / prior to arrival / four days 6 The documents / details / include / the following / must 7 List / of / each / the quantity / item 8 Include / the documents / and signature / the person / the name / preparing / of 9. Do not use / and lump sum / on / general descriptions / values / your invoices 10 Specify / each / weight / and dimensions / the contents / of / box62 | UNIT® Documentation and finance @® 3 Thereisa problem with an urgent delivery. Listen to the three phone conversations and answer “ the questions. Conversation 1 1 Why is the customer in Iceland upset? 2 Why do they need the consignment so urgently? Conversation 2 3. What went wrong with the shipment? 4 When does Ms Egbert say she needs the consignment? Conversation 3 5. When and how will the containers be shipped to Iceland? ke When should the containers arrive in Iceland? Why could the consignment be rejected at the gate? 4 Complete the sentences with words from the box. Then listen again and check. get back * the least * very sorry © be OK * just talked * find out © should have * see to * seems that sorted out © get on 1 Sorty, | have no idea at the moment, but I'l 2 OK, Pil to this straight away. 3. I've just checked all the documents and it, ____we used the wrong address. 4 I'm about this, Ms Egbert, but I'll do everything | can to get this problem rill to you as soon as I've spoken to the forwarder. ve to our freight forwarders here in the UK. That way you them by Friday afternoon, Would that for you? Yes, I'll that. 10 It’s | can do for you. wana After a problem or mistake has been brought to your attention, itis important to deal with it promptly. Note that we tend to use a more formal style in written communication. When responding to a customer, itis a good idea to acknowledge that we are aware of the problem: We are replying to your email of April 24" informing us that. (more formal) Thank you for informing us about an error in our December statement. (more forma) Thanks very much for pointing out the mistake. | understand there is a confusion in addresses/delivery dates.UNITS Documentation and finance | 63 Then we say what we want to do (or have done) to solve the problem. We often use phrasal verbs when talking about taking action: We are looking into this matter and will contact you again later today. (more forma) 1 shall/wil get in touch with the forwarding agent at ance. | PU take care of this straight away. P'U get on to that now. PU see to this immediately. PU get back to you on that as soon as possible. | ‘We usually also apologize for the problem or mistake: We would lke to apologize for the inconvenience. (more formal) We very much regret this misunderstanding. (more formal) I'm very sorry about that. Let me apologize for this delay/mistake/error (once again). 5 Complete the sentences with verbs from the box. look * take care * see to * get on + getin touch * get back 1 rl_____ to this immediately. 2 Cant to you on that in about half an hour? 3. OK, Il of that straight away. 4 Fine. rl with the courier people at once, 5 Thanks for letting me know. Ill this right away. 6 Yes,we'll_______into the case and call you back tomorrow. 6 Work with a partner to solvea problem. Use phrases from this unit. A B VA Ask A what he/she wants to do about it. iene mr Tell B that you need the items urgently. You expect to have them within two days. pe Thank A for help.64 | UNITS Documentation and finance 7 After arranging the express transport with the forwarder, Peter, the logistics manager writesan email to confirm what has been agreed. Choose the correct preposition. Dear Ms Charlesworth ‘As discussed at/on/to ' the phone this morning, we enclose shipping order N° 09/13087-02. Please arrange express transport of the consignment to Iceland through Cargo Worldwide Express, as agreed. Please note that the goods must arrive on/in/at’ the customer's premises at/onvin ° Selfoss, Iceland, on Friday, August 22 Unti/Aa/by* 4 p.m. at the latest. ‘As agreed, the shipping costs from/for/to° this consignment are £1,570, payable at/within/during * 30 days of receipt offrom/by’ invoice, Please send the freight invoice at/on/tO® the following address: VITA COSMETICS Ltd 18 South Road Bournemouth BHB SSX Best regards Peter Bott Logistics Manager We use the prepositions by and until to describe different situations: by = something happens (or should happen) not later than a specific point in time The consignment must be delivered by Friday. untitfill = something continues up to a specific point in time The logistics manager will be away until Friday. 8 complete the sentences with by or until. answers I'll make sure that the documents arrive the end of the week. We have to arrange shipment August 4° 'm afraid there will be delays the beginning of July. They said we would receive the consignment Monday. Call me if there are any problems. I'll be in my office 6.30 today, We require the goods March a5)".10 11 UNITS Documentation and finance | 65 Match the payment methods (2-6) with the definitions (a-f). advance payment cash on delivery open account documents against payment documentary credit bank guarantee OO a Customer pays immediately on receiving the goods. This, service is usually provided by the post office. b Used to cover financial risk in international transactions e.g. if buyer does not pay. c The exporter supplies the goods and the importer/customer pays for them at an agreed date in the future. d__ Involves the buyer's and the seller's bank. It is a promise made by the opening bank that payment will be made on receiving documents that comply with the terms agreed. @ Also called cash against documents (CAD). It means that the exporter has full control over the documents until payment has been made by the importer, f Customer/importer has to pay for the goods before they are shipped. Three people are talking about payment methods in their companies, Listen and complete the table. LOW RISK Method of payment used How secure is it for the seller? (very secure, secure, not secure) Company A: Company B: Company C: ten mise Listen again and say which of these statements are true “/ or false X according to the recordings. 4 Most of their European customers expect open account facilities. Open account terms are good for the exporter. They can take out special insurance against the risk of non-payment. Alletter of credit is often used for customers you have worked with for a long time. Aletter of credit is a very secure payment method. ‘Most customers do not like advance payment. anewn66 | UNITS Documentation and finance It is common to let trading partners know when payment is requested, has been made, or has been received. This is usually done in a short standard email or letter. More complicated international transactions sometimes require additional information. Requesting and arranging payment Please find attached our pro forma invoice for order N° 45-09-23. We enclose a copy of your invoice. The original will be sent to you together with the documents on settlement of our draft We have instructed our bank today to transfer/remit the amount of £6,320 to your account with Royal Bank of Scotland, Please find enclosed a cheque for $745.55 in payment of your invoice N° 2/08/2457. We enclose our draft for $23,840 drawn on Pacific Bank, Seattle. Could you please ‘acknowledge receipt? ‘Acknowledging payment Thank you for your credit transfer for £4,500 in payment of our July statement. ‘Our bank has advised us today that your transfer for invoice N° FR 1235 has been credited to ‘our account. We have received your draft for invoice N° 12349. Thank you for sending it so promptly 12 Here are some more sentences. Match the beginnings of the sentences (:-8) with the endings (a-h). 1 We enclose your statement of Our bank informs us that they have received the documents and will transfer Thank you for sending We are pleased to inform you that we have arranged for a Please find enclosed our bank draft for £13,468.40 as We would like to inform you that the amount of £2,567.89 has Please transfer the amount of $2,200 As agreed, we are sending you OOooOoooO credit transfer through our bank for the amount of $20,000. our invoice for order N° 9089 in duplicate. your draft for invoice N° SR-5602. account as of 30 September. been credited to our account today. to the following account. payment on pro forma invoice N° 08/5643. the amount of £8,670 to your account. seme anceUNIT@ Documentation and finance | 67 13 Look at the words in the box and exercise 11 and use your dictionary (if necessary) to complete the table. 3. receive 4 draft Noun 1 5 advise 6 Zz 8 acknowledge pay 14, Writea short emailtoa trading partner. EXE es es When dealing with errors itis particularly important to use polite and diplomatic language. Itis also a ‘g00d idea to use passive sentences to make your statements less direct and personal. if we want to inform someone that there has been a mistake, we often use impersonal expressions with the verbs seem and appear. It seems/appears that a mistake has been made with regard to the customs invoice. There seems to be a discrepancy between the items listed on your June statement and the goods delivered, When checking your statement, we noted that invoice TX 274 has been debited twice. {tis important to say what we will do or expect the other person to do: We are returning your invoice as the 2 per cent discount has not been deducted from the total amount. Could you please let us have a corrected/an amended Invoice by return? Please confirm the corrected amount of «. Could you make sure that weight and dimensions of the items are specified on the commercial invoice? 15, Say which sentence in each pair is more polite and/or less direct. 1 a You have made an error on the December statement. b There appears to be an error on the December statement. a. The discount has not been deducted from the total amount. b You did not deduct the discount from the total amount. a There is a discrepancy between invoice and packing list. b It appears that there is a discrepancy between invoice and packing list. a b a b a b Could you let us have a corrected invoice? Send us a corrected invoice A mistake has been made in invoice N° 09-234. There is a mistake in invoice N° 09-234. Use the above bank account number for future transactions. Please make sure that the above bank account number is used for future transactions.tation and finance Read these answers to frequently asked questions relat 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, itis 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 leam something about import and export procedures. To reduce the risk of non- payment, you can take out an export credit insurance policy. Rear 1 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. What are the main financial risks in foreign trade mentioned in this article? How can traders reduce their financial risk? Does your company export or import goods? If yes, do you know what methods of payment are used? Have you ever heard about payment or credit problems with customers?Test yourself! | 69 Test yourself! ‘See how much logistics vocabulary you've learned. Use the clues to complete the crossword puzzl Across 2 Acompany which specializes in arranging and handling the transport of goods. 3. Another word for send, used in connection with goods. 4 An offer stating prices and conditions. 8 How much something is worth in money. 9 Awooden base on which goods can be transported. 14 This is where goods are stored. 16 Accompany which transports goods. 20 Acompany which provides goods. 21 To send money. 23. To choose or select goods. 24 Adocument that gives details about the cost of something and is also a request for payment. 26 Another word for freight. 27. Aship used to transport goods on inland waterways. 28 Abox made of cardboard 29 Another word for consequence, e.g, a5... Down 1 Asecure payment method used in international trade. (3 words ~ 6, 2, 6) 5 Aplece of paper providing specific information, either on the produc itself or the packaging. ‘A business that sells goods to the end consumer. The weight of goods which can be loaded onto a vehicle. 10 Amotor vehicle used for transporting goods. 11 This means that something breaks easily 32 Another word for buying. 13. Another word for inform. 45 Important document used in international trade. (3 words ~ 4, 2, 6) 36 Alarge metal box in which goods are shipped 17, Another word for get. 28 The opposite of export. 39. Finding an item in transit. 22 The measurement system used in most countries. 25, To put things on top of each other. 26 Adevice used for lifting heavy goods.70 | Test yourselffue Partner Files UNIT 1 Exercise 8 File 01 Partner A Job specification for position as store supervisor ‘© Responsible for store and inventory. * Make purchase requests for all stocked items that are at minimum, Receive and process incoming orders. Ensure materials received are in good condition. Inform customers of collection or delivery dates. Check invoices against orders. UNIT2 Exercise 7 File 02 Partner A India Logistics Ltd - International Freight Forwarders High quality international freight forwarding services from India. Air and sea freight, distribution services, order management, customs brokerage. Many years of experience in shipping goods quickly and cost-effectively Sophisticated software to prepare documents ‘quickly and correctly UNIT 3 Exercise 12 File 03 Partner A 1 examine all purchasing processes in the company to see where we can make procurement more efficient 2 sort items to be bought into different categories according to their importance and value 3 develop a system of preferred suppliers (suppliers must meet certain criteria and go through formal approval process) UNIT 4 Exercise 10 File 04 Partner A. Flat-rack container suitable for: heavy loads, e.g. industrial machinery, pipes consists of: steel frame with a timber floor, with or without collapsible end walls loading: from the side up UNIT 5 Exercise 11 File 05 Partner A oft standard container Max. payload: 47,999 Ib 23,727 kg Tare weight: 4,96 1b 2,229 kg Capacity aa7zcuft 3348. Inside length: a9 ft4in 5.8m Inside width: = 7 Rin 233m Inside height: 7 f1oin 238m UNIT 6 Exercise 9 File 06 Partner A A consignment of 35 laptop computers has been delivered to the company's branch in Hanol instead ‘of Ho Chi Minh City. The distribution centre gave you the wrong address. You have just arranged transport to Ho Chi Minh City by Vietnam Air. The computers should arrive on Friday. Partner A You are a customer in Canada. You are expecting to have something picked up from your premises tomorrow at 9 a.m. UNIT 7 Exercise 7 File 07 Partner A * invoices are automatically generated = accurate stock control and warehouse tracking ‘© hand-held laser scanners provide speed and accuracy * processing of picked goods UNIT 8 Exercise 14 Fite 08 Partner A (buyer) * You have received pro forma invoice N° 3658 ~ thank partner B. ‘The bank draft for €6,345 as payment is enclosed + Ask for details regarding shipping date and expected arrival of consignment.ue Partner Files UNIT 1 Exercise 8 File 09 UNIT 5 Exercise 11 File 13 Partner 8 Partner B Job specification for position as distribution manager * Extensive knowledge of current tariffs, rates, and import and export regulations, Monitor shipping operations. Hire and train staff Develop business plans. Assess warehouse operations and provide feedback © Ensure the budget is not overspent. UNIT 2 Exercise 7 Partner B Baltic Logistics ~ Logistics Services Offices in all three Baltic States. Air and sea freight, warehousing and distribution services, Integrated, flexible logistics solutions. Team of 50 logistics specialists. File 10 UNIT 3 Exercise 12 File 14 Partner B 4 teduce the number of suppliers to 10-35 2. use online catalogue for routine items (prices have already been negotiated by the purchasing department) 3. take a close look at existing supplier relationships and think about establishing long-term partnerships with some suppliers of important items UNIT 4 Exercise 10 File 12 Partner B Bulk container suitable for: unpackaged dry bulk cargo, e.g. grain extras: liner bags coated for moisture protection loading: several spouts and discharge tubes for loading and unloading 2oft reefer Max. payload: 45,760\b 20,756 kg Tare weight: 7,0401b 3,193 kg Capacity: 4,000 cu ft 28.31 nP Inside length: 7 ft8in 538m Inside width: 7 ft5in 2.26 Inside height: 7 tin 2.26m UNIT 6 Exercise 9 File 14 Partner B You are the manager of an IT store in Ho Chi Minh City. You were expecting a delivery of 35 laptop computers. You need the computers to arrive by Friday moming. Partner B You have just checked the documents for a shipment to a customer in Canada and noticed that there is something wrong. The pallet height is not the same asin the packing lst and the shipping labels are not correct either. You need to wait for correct documents. That's why pick-up time must be changed to 12.30 tomorrow. UNIT 7 Exercise 7 File 15 Partner B * preparation and printing of shipping labels * inter warehouse transfers * handling of returns * scanning of case iabel barcodes UNIT 8 Exercise 14 File 16 Partner B (seller) * You have received bank draft as payment on in- voice N? 3698 ~ thank partner A. The consignment is due to leave Liverpool on a September, expected arrival in Churchill, Canada, on September 15",| 73 Answer key page 9 EES: provide ‘STARTER inform about Suggested answers purchasing, procurement, transportation, maintenance, distribution, inventory management, stock control, storage, freight forwarding storage delivery provide distribution support, maintenance provision to store support te deliver to distribute maintenance to transport to purchase maintenance deliver purchasing provide transports, store af 3e 4a 5c 6b freight forwarder shipping operations manager ‘warehouse manager organize dealing negotiating arrange make sure advise liaise censure OW Pw ee pages 7 te za 3h gg 5b 6d 7f Bc 9 2 3 ensure 4 check 5 orgenize 6 train pageso 1 My company provides an excellent delivery service 2 How much cargo do you handle per year? 3 We do not ship chemical products to other countries. 4 The warehouse manager is also responsible for vehicles and machinery. 5 Does this vendor supply car parts to foreign companies? 6 freight forwarder usually arranges documentation for companies. 3 Across 4 cargo 5. stock 6 liaise Down + plan 2 quote 3. monitor 5 ship ‘STARTER 41 full container load 2. third-party logistics 3 heavy goods vehicle 4 distribution centre 5 less than container load 6 electronic data interchange 7 value-added services 8 radio frequency identification 9 International Standards Organization 10 Global Positioning System page 12 xe 2e 3a ad sb Gh 7g Bf74 | answer key page 33 a4 2 Favment documentation product packing) other 4 receipt Jsssemby_[packagne_|serices 2 equip Maxwell eat —|neatre — - pckand [rune 3 carriage processing uiment pack [processing 4 assemble Sichuan] imporvespor [Ring Joacagig |- 5 locate cargo customs eenies, lesrnce export pages ssn eating 3 jeux |- ie (bundling! | polybagging | labelin 4 solutions for fll container loads and less than Inbernglesnt |cceane container consolidated freight, sea wrapping 2. home textiles, road 3. consolidated air freight forwarding, alr ee : 2 1 transport companies — 2. shipping lines Si , nee 2 False: log on by selecting your town or region, One lin 3, False: you can check records for up to 90 days True rovider a eee 5, False: you can't cancel orders online. 6 Tue 5 = : 3 : af za 3e 4b sc 6d 3 customized 4 4 happy 2 mobile phone 5 provide 2 enter 6 range 3 GPS-based 4 pages 5 8 6 2 3PLin the past Z 2 Change in logistics concepts 8 3 5 Page 20 ‘Today's role of major providers pages Baier ; wa 2b 32 4a 5b a True : 2 False: outsourcing single segments to different 1 2F 3¢ ga sd 6b ides not fet, 3. False: pressure on prices has led to a decrease in nmi margins. 2 . 1 False called CRP, 5 True pe 3 Tne 1 4 Fale three yeas we 28 fab 56 — 6 False 15% pages 3 2 replenishment 2 lead times 3. stock4 point 5 retailer 6 generated 7. data interchange 8 schedule 9. inventory 10 processing 4 3€. System is activated atthe point of sale. 2f Sales information is transfered tothe CRP computer system. 3a Orders are generated based on data received from cash register 4d_ Orders are sent to the warehouse, 5. Orders are processed. 6b Goods are delivered to the etal outlet. 5 4 Is monitored 2 soften used 3. are transferred; are delivered 4s identified; is co-ordinated 5. are categorized page23 6 a3 bs a1 dy ez relationship 3PL providers Procurement vendors fulfilment supply chain negotiation command strategic procurement and supplier relationship management 2- manage internal and external customers, ‘optimize processes, order fulfilment and logistics costs 3. with the procurement tearm 4, degree in supply chain management or logistics management 5 minimum of five years in a multinational ‘company, languages 4 more co-operative relationship, strategic partnership 2 lower costs considerably and work more efficiently 3. market leader pharmaceutical products 5 long-term agreement Answer key | 75, 10 ac 2d 3f 4b sa 6e Pn Suggested answer Dear Luke We have talked about possible cost savings in purchasing in our team. We also think it would be a 00d idea to discuss this in mare deta We feel there would be a lot of saving potential in some areas, especially in supplier management. In our opinion we should: 1 choose our suppliers more carefully 2. establish stricter standards for our suppliers 3, co-operate more closely with some of our important suppliers (to achieve better results) Fil call you next week to give you some more details con that. Regards Mike 3 2 Please find attached our quotation for three new products according to your request. 2 Our prices are calculated on the basis of your forecast of annual consumption figures. 3. As requested we will deliver on pallets to Barcelona or Madrid. 4 Fora contract term of at least two years we can offer you a discount of 2.5%. 5 Inthe attached quotation sheet all prices have been listed in columns according to your requirements. 6 IFyou have any further questions please let me know. 7 We look forward to hearing from you soon. ‘SipaeaeE 4 ic 2f 3e ga sb 6d 45 ‘Suggested answer Dear. Please find attached our quotation for our GPS system ‘Road Navigator TK-2300" We can offer you a price of $975.00 per item including VAT at 15%. If your order exceeds 20 items, we can offer an additional discount of 8%. Delivery will be made within 6 days of receipt of purchase order. IF you have any further questions, please let me know. Best regards76 | Answer key page 28 Starter a3 b2 cy ds 06 fi 1 ad af 3b 4a 5c 60 page 29 2 inland oad Jail express waterways service) speed in days (6 Is 5 eost low So% higher [40% higher than barge _fthan ruck Rexibiiiy ow very high — [low longer the cheapest higher faster more expensive slower Suggested answers 41. Infrequent sailings: there are barges twice a week, 2 Check with the customer fist to find out what they want, page 31 5 a by gh 6 4 loading 2 straddle 3 move 4 handle 5 fitted 6 mounted 7 piling 8 reach 9 made 30 attached i # iting come fitted stack attached fred page 33 1. general purpose: dry cargo 2 reefer, refrigerated: delicate cargo and perishables tanktainer: liquids ‘open top: bulky cargo flat-rack: heavy machinery and pipes lashing level contralied frame plugs tarpaulin removed machinery reefer container tanktainer sgeneral purpose container flat-rack container ‘open-top container page 34 perishable: meat, fresh produce, seafood, dalry products, chilled or frozen foodstuffs non-perishable liquids: crude oil, alcohol, harmful chemicals heavyweight: and overwidth steel pipes, industrial boilers, tractors page 35 2 a. teefer: perishable cargo flat-ack container: heavyweight and/or overwidth cargo tank container: non-perishable liquids 3 ‘Across 1 waste 4 crane 6 vessel 7 tigid Down tube tank chilled reefer UNITS: page 37 Starter ‘Suggested answers size, dimensions, type of goods, infrastructure, time factor/speed/urgency, nature of the goods, security2 1. block tran, single-wagon 2 next month 3 London, UK 4 block train 5 ifthey could plan well ahead 6 atleast 7 hours 2 1 calling about 2 Could you 3 would be 4 recommend 5 more suitable 6 suggest that 7. analtemative 8 also consider 9 How much 10 ifyou like - page3g 3 A | (would) need some information regarding .. Could you let me have some information about ‘What would be the cheapest / fastest / safest | most convenient way / option? B In that case | recommend / suggest that you use / ship.. | think the best option would be to .. We can provide / arrange / ship .. Ifyou lke, Ifyou prefer... , we could also arrange As an alternative, we can offer you w. 4 ac 2d 3f 4a 5e 6b "page 40 tare weight ‘gross weight payload length width height tare weight: 8,880 pounds internal length: 39 foot 5 inches intemal height: 7 foot 7 inches page at The weight of the package is 45 kg. The width of this seagoing vessel is about go metres. 3. The measurements of the case we need to ship are 1 m ((ong) by 50 cm (wide) by 35 cm (high) It is nearly 3 centimetres deep. The ship is more than 65 metres lang, The open container’s door is 7 foot 10 inches high. Answer key | 7 ’ + foot 2 kilogram 3 ounce 4 centimetre 5. pound 6 cubic yard 7 square metre 8 inch 9 pint 10 gallon 20 Tete on-metrie Tength | milimetre (om) Teh (in) centimetre em) foot (fi metre (m) yard Od) Kilometre (an) mile (mn) weight [ara @ ounce (oz) Kilogram (ks) pound (ib) tonne () short ton () US long ton UK surface | square millimetre (mm) [square inch (sq in) centimetre cr) | foot (sa f) metre (mr) yard (sa yd) kilometre (km= mile (sam) volume | eubie millimetre (mm) feubie inch (u in) centimetre (cm?) foot (cu ) metre (mi) yard (cu yo) capacity | tre fig ounce (02) pint (pt) quart (cd) gallon gal page 42 True False: they are going to Dubai. False: there are 15 boxes. True False: August 3°. True page 43 Cool Air ‘Stockholm, Sweden Dubal, United Arab Emirates 5 August 3" August 6" 150 kg x15 = 2,250 kg Cooling units no 130 August 6" 44 Suggested answer Please send a quotation for the shipment of 15 cooling units from Stockholm, Sweden to Dubai, United Arab Emirates. The units can be picked up August 3"'and must arrive no later than August 6°. We would like them transported by air. The units weigh 250 kg each. They are 170 em high,15 cm wide, and 82 cm deep, Your quotations should include detailed information on freight and insurance rates, delivery terms, and terms of payment. Best regards page 44 45 1 Please send us a quotation for a shipment to Madras. 2 Please state your earliest delivery date in your quotation, 3 Could you please let us have 2 quotation including the following details? 4, What are your shipping rates for a part truck load to Birmingham? 5. Your quotation should also include detailed information on sailing times and insurance rates. 6 Please quote for the transport of the following consignment, Starter 1 Fragile 2 This side up 3, Use no hooks 4 Do not stack 5 Explosive 6 Store eway from heat 7 Keep dry 8 Toxic a examine 2 diagonally 3. instructions 4 sure 5 place 6 secure 7 fit 8 overhanging 9. attention 10 carefully a distribute 12 exceeded page 46 2 a before loading: 4,4, 79 b loading: 2,5, 8 11 © after loading: 3, 6,10, 12 3 ad 2g 3a 4e sh 6c 7b of page a7” with to out of on between in by No, they can’t. The fastest option takes 48 hours. No, because they have very limited loading capacity. Because of the HGV driving ban on Saturdays and Sundays. He wants to call GLP and then get back to Sonja. I think we've really gota problem here. Unfortunately, we can’t use one of our regular forwarders for this shipment. 3. This means that we would have several smaller partial deliveries 4 We'd also have to pay a lot more asa result, 5 We can’t deliver atthe weekend because ofthe HGV driving ban on Saturdays and Sundays, 6 had no idea this delivery would cause so many problems. page 48 so because although due asa result despite because in spite of page 49 8 2 result 2 caused 3. tumed 4 dueto 5. Inspite of 6 teason 10 Please find attached the following documents: delivery note N° 70007308, packing list and shipping order. ur forwarder has just picked up the goods from our warehouse. The goods should be at your disposal ‘on Monday 31 October 2009. Please nate that a copy ofthe batch certificate will be sent to you as soon as possible by email. ASsoon as we receive the original batch certificate, we will send it to you. Ifyou have any further questions, please let me know. awe 50 11 Suggested answer Order number N° 68809986 was dispatched yesterday, February 13” by rail. It wil be delivered ‘to the customer's site in Banbury, UK. It is expected to artive Februaty 15" before 10 a.m, 2 te 2d 3b 4a sc page 5s 3 se 2d 3a 4e 5b appointed clearance importing withstand mark individually exhibitor weight “unr page 53 Starter te 2d 3f 4c 5a 6b evounuseg 4 receiving 2. back-up storage 3. order picking 4 sortation 5, collation and value-added services, 6 marshalling and dispatch ‘page 54 2 1a 2d 3b 4c 50 3 tb 2g 3¢ ad 5e 6h 7f 8a ‘page 55 4 a has been checked has been identified: must be issued © d e F has reported; is checked ate processed may be labelled are checked direct se of 3e ad 5a 6b Answer key | 79 True True False: cycle times could be reduced by up to 25%, True False: she doesn’t mention invoices. page 56 optimize warehouses service reorganize space tracking cycle times. drivertess rigid, collapsible stackable adjustable suitable, bulky mobile z 4 You scan in the barcode. You enter the system. You can see and access all positions You can put together packages. The system calculates the weight. You choose means of transport. The shipping labels are printed. The order is complet the first step is After that the next step following that Once actually the next step come to the last stage After BN AURWNH Eg ONaneUNHe page 58 2 ‘Across 2 store 4 stack 5 bin 6 pick Down 1 break bulk 2 sort 3. item