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6. Make up short texts (50-100 words) using the words given.

  1. Dimension, consignment, tare weight, gross weight, net weight, insurance rate, transit times, pick-up and delivery, handling damage

  1. Transit times, seagoing vessel, consignment, come up to the standards, tare weight, overseas trade, at your premises

  1. Part truck load, overseas trade, oversee something, at your premises, recommend, single-car transport, non-hazardous, payload

  1. Flexi train, single-car transport, part truck load, transport option, pick-up date, in transit, handle damage, payload, hazardous

Reading 1

  1. Discuss the following questions in pairs:

  1. What does transportation mean in management?

  2. What are the main modes of transportation on local and international markets?

  3. What challenges are logistics managers facing now?

  4. What are current innovative trends in transportation?

  5. What other industries are involved in transportation?

Transportation

One major component of logistics process is the movement or flow of goods from point-of-origin to point-of-consumption, and perhaps their return as well. The traffic and transportation activity involves managing the movement of products and includes selecting the method of shipment (air, rail, water, pipeline, truck, and intermodal); choosing the specific path (routing); complying with various local, state, and federal transportation regulations; and being aware of both domestic and international shipping requirements. Transportation is often the single largest cost process. Therefore, it is an important component that must be managed effectively.

The five basic modes of transportation – motor, rail, air, water, and pipeline – provide movement of products. Each mode varies in its economic and service characteristics and has different cost structure based on product- and market-related factors. Logistics executives must be aware of the characteristics of each mode as well as various intermodal combinations, nonoperating third parties, and other options (e.g. piggyback, containers, freight forwarders, IMCs, shippers’ associations, brokers, UPS, parcel post).

Transportation, together with warehousing, adds time and place utility to products. It also affects many decision-making areas of marketing and logistics, including new product development, target market areas served, purchasing/procurement, facility location, and pricing.

In making traffic and transportation decisions, the logistics manager must consider the differences between the domestic and international markets. Mode availability, rates, regulatory restrictions, service levels, and other aspects of the transportation mix may vary significantly from one market to another. It is vital that the differences be known and understood so that an optimal transportation network can be established for each international market.

When logistics executives evaluate international transportation options, their decisions are usually based on the following: cutting transportation/distribution costs, freeing up or reducing staff, focusing on core business, acquiring outside expertise, improving customer service and satisfaction, avoiding capital expenditures, and using providers’ logistics information systems.

Transportation Management System56

Worldwide, the transport and logistics services industry are in strategic chaos. Diverse factors, ranging from those that arise from the industry itself to other allied market forces, have set in an industry-wide value migration. The key functionality, i.e. transportation of goods, no longer exists in the traditional sense. What only a decade back had seemed a pure asset-play, has now turned into a maze of new and competing institutional and business enterprise models.

The road haulers, the rail operators, the shipping companies, the airlines, the freight forwarders, the warehousing companies, the postal companies, the packaging and distribution companies no more want to see themselves tied down to their traditional business models based on single services. They now want to be seen as a “one-stop shop” offering mode-neutral or multi-modal cargo carriers in the form of an integrated 3PL company or a lead logistics provider (LLP), an integrated express logistics company or, to cap it all, a 4PL consultant to customers. Many of the companies have already moved into these new business areas in a well-orchestrated drive for top line growth.

On a wider horizon, the lines between a delivery company and a manufacturer are starting to blur as well. We are now talking of 4PL and 3PM (third party manufacturing) and have begun to realize both are moving in the same direction. While 3PLs bring in distinct distribution capabilities, the 3PMs bring in manufacturing capabilities, even if they are presently limited in scope, confined to high-tech and short-life cycle products.

Developments in the information and communications technology (ICT) are again playing a major catalytic role in improving the service quality and reducing the costs. Transport Management Solutions (TMS) today demand a dynamic and proactive approach to understanding these changing contours of the industry and market. The next generation TMS now appearing on the market are trying to do beyond providing mere discrete functionalities, and are increasingly aiming to deliver great benefits and attractive returns on investment to the transportation industry.

b. Locate the following words in the text and translate them:

  1. point of origin

  1. point of consumption

  1. routing

  1. intermodal transport

  1. piggyback

  1. distribution company

  1. logistics executive

  1. freight forwarder

  1. road hauler

  1. cargo carrier

  1. rail operator

  1. shipping company

c. Find synonyms to the following words in the dictionary:

  1. path

  1. requirement

  1. important

  1. range

  1. value

  1. distinct

  1. capability

  1. presently

  1. developments

  1. dynamic

  1. proactive

  1. to aim

  1. to benefit

  1. international

  1. domestic

  1. consignment

  1. option

  1. intermodal

d. Match words to make word combinations as found in the text:

  1. logistics

  1. model

  1. shipping

  1. costs

  1. freight

  1. development

  1. parcel

  1. requirement

  1. domestic

  1. process

  1. product

  1. forwarder

  1. to cut

  1. post

  1. business

  1. market

e. Fill in the gaps with prepositions consulting the text and make your own sentences with the phrases.

  1. to comply __ state regulations

  2. to be aware __ shipping requirements

  3. to see themselves tied __ to their business

  4. a drive __ top line growth

  5. __ a wider horizon

  6. to move ___ the same direction

  7. to appear __ the market

  8. to do something __ providing discrete functionalities

  9. attractive returns __ investment

f. Complete the table with correct word forms:

Verb

Noun

Adjective

requirement

shipment

movement

functionality

  1. to provide

g. Translate the paragraphs in cursive.

Grammar

Pronouns/ determiners

Every/each

Either/both/neither

Anybody/nobody/somebody/ either/both/neither + verb

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