10. A) Read the words and find their Russian equivalents in the right column.

1.	to distribute	a) грузить; перевозить груз
2.	effect	b) снабжение, обеспечение
3.	to ship	c) поставлять
4.	to borrow	d) ускорять; быстро выполнять
5.	to supply	e) конкурировать; состязаться
6.	to satisfy	f) действие, воздействие; эффект
7.	provision	g) одалживать
8.	to expedite	h) распределять, распространять
9.	to compete	i) удовлетворять

b) Now fill in the gaps in the text with the derivatives of the words from the first column.

Logistical Appeals

In recent years, the cost of holding inventory has risen sharply because of an increase in the number of models and lines offered and because of the higher cost of __________ money. Accordingly, logistical appeals have become increasingly __________ in dealing with distributors and industrial buyers. These appeals include providing fast processing of orders, __________ frequent delivery, and offering __________ delivery.

On-time delivery has become a key competitive advantage in most industries. In Europe, for instance, Nissan guarantees its dealers a 10-day delivery, and Caterpillar delivers replacement parts within 72 hours 99.7 percent of the time. For direct response companies like Dell Computers, on-time delivery is a key element of their __________ strategy. Dell’s promise of product __________ within 5 days of an order and a 20-day delivery has been a key factor in their being rated first in their industry in customer __________ .

Additionally, some manufacturers offer inventory-management appeals. For example, a buyer may guarantee a __________ that it will buy a minimum amount of a product over the course of a year. In exchange, the seller is responsible for providing very quick delivery (often within 24 hours) and also inherits the inventory-holding cost burden.

The primary effect of logistical appeals, therefore, is to help buyers or __________ reduce the amount of inventory they carry.

IV. Speaking Practice

1. Check if you can meet the learning objectives of the unit.

1.	Define the term marketing channel and identify the two major types of marketing intermediaries.
2.	Explain how marketing channels are integrated vertically.
3.	Define wholesaling and describe the functions wholesalers perform.
4.	Define retailing and outline the activities retailers perform.
5.	Discuss the major considerations in retail planning.
6.	Explain the role of physical distribution and identify its components.

V. Writing Section

1. Translate the following text. Use a dictionary if necessary.

The Payoff of Controlling Recession Effects on Delivery Performance

Most companies do not pay attention to controlling recession effects on delivery performance when they should, so as to ensure customer and client retention once recession has passed.

The term recession refers to the economic phenomenon of a nation’s gross domestic product, or GDP, declining for at least two consecutive quarters of the fiscal year. This represents a time of low profits and zero growth, or more often negative growth, for a lot of businesses and organizations, both big and small. Most organizations, if not all, have to design new business strategies and implement effective measures if they want to minimize recession effects. Controlling recession effects on delivery performance, for example, requires much more than just blind cost cutting and laying off of employees.

Delivery performance depends greatly on how well the entire supply chain is managed, right from the procurement of raw materials up to delivery to retailers or end users. Recession can affect most of the step in the supply chain, if not all, making it a truly difficult task to keep delivery performance at acceptable levels during periods of recession. But, in fact, keeping delivery performance high can mean the difference between going under and being able to go strong through a period of depression.

On the surface, this might not seem to make any sense. When costs are high and demand is low, as in periods of crisis, wouldn’t it be better to drastically cut back on production and thus on operating expenses? Keeping a delivery system working smoothly is a costly ordeal, after all, both in terms of financial and labor costs. During difficult times, when every penny counts, it seems reasonable to cut back as much as possible and spend as little as possible, doesn’t it?

Such policies may prove effective in the short term, at least in terms of minimizing immediate losses, but in the long term, they may prove more harmful than helpful to a company. Most cutbacks and layoffs compromise a large part of the company’s delivery performance, and this decrease in performance will surely be notice and disliked by clients and customers. When recession recedes and the economy more or less gets back on track, the poor performance of a company during the recession may end up costing them a lot in terms of customer satisfaction and retention.

On the other hand, if a company tries its best to maintain or even improve its delivery performance during tough times, it further adds to its reputation. Customers and clients will appreciate the company’s devotion to service, and will show this appreciation by staying with the company through and after the crisis period. In this sense, recession periods are times of trial for most companies, during which their actions and performance will either raise or lower their reputation.

How, then, should a company go about controlling recession effects on delivery performance? Essentially, the company should realize that cutting back on costs should not be the be-all, end-all solution. Instead, these cutbacks should be considered with care, in particularly paying attention to their probable effects on delivery performance. The best possible balance between cost efficiency and performance should be striven for.