Text 13. Logistics

Logistics is the art and science of managing and controlling the flow of goods, energy, information and other resources like products, services, and people, from the source of production to the marketplace. It is difficult to accomplish any marketing or manufacturing without logistical support. It involves integration of information, transportation, inventory, warehousing, material handling, and packaging. The operating responsibility of logistics is geographical repositioning of raw materials, work in process, and inventories. They are required at the lowest cost.

Logistics as a concept evolved from the military's need to supply the Armed Forces moving from their base forward. In ancient Greek, Roman and Byzantine empires, there were military officers with the title “Logistikas”. They were responsible for financial and supply distribution matters. Military logistics first appeared in the 19^th century. However, only in World War II logistics theory and practice became sophisticated. As the conflict was carried out with an unprecedented deployment of personnel, equipment and supplies, logistics played a central role in ensuring success for the Allies. Logistics as its own concept in business appeared only in the 1950s. This was mainly due to the increasing complexity of supplying business with materials and shipping out products in an increasingly globalised supply chain.

The main functions of a logistics manager include purchasing, transporting, warehousing, organising and planning. Logistics managers combine general knowledge of each function to coordinate the resources of the organisation. There are two fundamentally different forms of logistics. The first one optimises a steady flow of material through a network of transport links and storage nodes. The other coordinates a sequence of resources to carry out some projects.

Questions for discussion:

1. What is logistics?

2. What integration does logistics involve?

3. How can you describe the operating responsibility of logistics?

4. What did logistics as a concept evolve from?

5. What did the word “Logistikas” mean?

6. How can you characterise the role of logistics in World War II?

7. When did business logistics appear?

8. What factors caused the appearance of business logistics?

9. What are the primary functions of a logistics manager?

10. What are the main forms of logistics?

Text 14. International Railway Organisations

Severe competition from other transport modes made railways establish international railway organisations. Their work is realized within the framework of several institutions.

The UIC or the International Union of Railways was founded in 1922. It promotes cooperation between railways at the world level and carries out activities to develop international rail transport. In order to reach understanding, the UIC has established standard railway terminology and international classification system of locomotives and railway carriages. The Soviet Union was among the founding members of the UIC in 1922. However, the Cold War made the USSR leave the UIC. Nowadays, a special working group has been set up to restart cooperation between JSC Russian Railways and the UIC.

The Community of European Railways and Infrastructure Companies brings together railway undertakings and infrastructure companies from the European Union, Norway, Switzerland and other states. It promotes modern environmentally friendly modes of rail transport systems.

The Union of the European Railway Industries is responsible for design, manufacture, maintenance and reconstruction of rail transport systems. Besides, there are some other interesting international alliances such as international air rail organisations. They develop, build and operate fast rail air links to passengers.

The European Conference of Ministers of Transport is an intergovernmental organisation established in October 1953. Russia joined the ECMT in 1997 and has been its active member ever since. Russian railways is a vital link for Eurasia from East to West, and North to South.

The Coordinating Council on Trans-Siberian Transportation (CCTT) is a non-commercial transport association. Its main purpose is to attract transit cargo to the Trans-Siberian route. Much work of Russian Railways takes place within the framework of the Organisation for Cooperation of Railway Lines (OSLD). Its main aim is to develop international transcontinental freight and passenger transport, and to create a common rail transport space in Eurasia.

Questions for discussion:

1. What made railways establish international railway organisations?

2. What did the UIC work out?

3. What does the UIC promote?

4. What does the Community of European Railways and Infrastructure Companies develop?

5. What does the International Rail Transport Committee implement?

6. What are the primary tasks of the Union of the European Railway Industries?

7. What are the international air rail organisations responsible for?

8. When was the European Conference of Ministers of Transport established?

9. Why are Russian railways important for Europe and Asia?

10. What is the main aim of OSLD?