©2014 Mgr. Jindřiška Šulistová 1) The term of logistics, definition 2) The fields of logistics 3) Logistics and warehouses 4) Inventory 5) Green logistics 6) The virtual logistics 7) Customer service 8) Well-known home and world logistics companies 9) Quality management 10) Partnership and strategic alliances 11) The TLP training 12) Hazardous material regulations 13) Loss and damage claims 1. Discuss with your partner what a term logistics can cover. 2. Read the article below to find out about your guess. The term logistics, definition The Oxford English Dictionary defines logistics as "the branch of military science relating to procuring, maintaining and transporting material, personnel and facilities." However, the New Oxford American Dictionary defines logistics as "the detailed coordination of a complex operation involving many people, facilities, or supplies," and the Oxford Dictionary on-line defines it as "the detailed organization and implementation of a complex operation." As such, logistics is commonly seen as a branch of engineering that creates "people systems" rather than "machine systems." According to the Council of Logistics Management, logistics includes the integrated planning, control, realization, and monitoring of all internal and network-wide material, part, and product flow, including the necessary information flow, industrial and trading companies along the complete value-added chain (and product life cycle) for the purpose of conforming to customer requirements. Logistics is the process of planning, implementing, and controlling the effective and efficient flow of goods and services from the point of origin to the point of consumption. Academics and practitioners traditionally refer to the terms operations or production management when referring to physical transformations taking place in a single business location (factory, restaurant or even bank clerking) and reserve the term logistics for activities related to distribution, that is, moving products on the territory. Managing a distribution center is seen, therefore, as pertaining to the realm of logistics since, while in theory the products made by a factory are ready for consumption they still need to be moved along the distribution network according to some logic, and the distribution center aggregates and processes orders coming from different areas of the territory. That being said, from a modeling perspective, there are similarities between operations management and logistics, and companies sometimes use hybrid professionals, with for ex. "Director of Operations" or "Logistics Officer" working on similar problems. Furthermore, the term supply chain management originally refers to, among other issues, having a global vision in of both production and logistics from point of origin to point of production. All these terms may suffer from semantic change as a side effect of advertising. (Logistics, Wikipedia, 2014) Vocabulary to procure (tu.prs kjo3r) získat, sehnat, dosáhnout, přimět to pertain (tu.ps 'te/n) náležet, příslušet, patřit realm (relm) oblast, sféra, doména to aggregate (tu: 'cegrigdt) shromáždit, dát dohromady perspective (pa spekt/v) pohled, hledisko, stanovisko, vyhlídka, perspektiva semantic (si mcentik) významový side effect (sa/d/ fekt) vedlejší účinek 3. In pairs / small groups try to elicit the meaning of underlined expressions. 4. Fill in the gaps with the expressions below. between distribution Furthermore global hybrid practitioners processes referring related reserve seen taking terms Academics and__traditionally refer to the terms operations or production management when _ to physical transformations _place in a single business location (factory, restaurant or even bank clerking) and_the term logistics for activities_to distribution, that is, moving products on the territory. Managing a distribution centre is_, therefore, as pertaining to the realm of logistics since, while in theory the products made by a factory are ready for consumption they still need to be moved along the distribution network according to some logic, and the _ centre aggregates and _orders coming from different areas of the territory. That being said, from a modelling perspective, there are similarities_operations management and logistics, and companies sometimes use _ professionals, with for ex. "Director of Operations" or "Logistics Officer" working on similar problems. _, the term supply chain management originally refers to, among other issues, having a_vision in of both production and logistics from point of origin to point of production. All these_may suffer from semantic change as a side effect of advertising. 5. Read the article one more time and then take turns with your schoolmate in retelling. Then write notes to enable you to give a talk on the topic. 6. In small groups think of five questions related to the article (using at least in two of them with BETWEEN, AMONG / AMONGST). The rest of class will answer them. 1)__ 2)_ 3)_ 4)_ 5)_ Short topic outline The term of logistics, definition Definitions according to: a) The Oxford English Dictionary b) New Oxford American Dictionary c) Council of Logistics Management d) Academics and practitioners Logistics - process of planning, implementing, controlling the effective and efficient flow of goods and services Short grammar outline Between, among (amongst) prepositions of place - used with two or more people / things who / which can be seen as individuals The lamp stands between the sofa and the armchair. I can see the bus standing between the road, the shop and the factory. - used with more people / things who / which are seen as a group The warehouse is situated among trees. Test 1 The crowd were outside the palace, waiting....................arrive. A the queen's B the queen to C for the queen D for the queen to 2 She interrupted the minister's speech,....................made him angry. A which B that C what D who 3 The new offices are....................the other side of the river. A by B for C in D on 4 How long can you stay under water without coming to the....................? A level B ground C surface D sea 5 I'm not going to walk to the village. It's 20 miles....................! A away B far C long D distance 6 We've reminded him several times, but he....................hasn't paid us. A yet B already C still D even 7 We can buy some food....................our way home. A in B on C at D by 8 They....................him of killing the dog. A accused B blamed C punished D attacked 9 The service at the hotel was....................so I'll be happy to stay there again. A very well B regular C satisfactory D sympathetic 10 I would like you....................attention, please. A to pay B pay C paying D that you pay (Fowler, 2005) Key 4. Fill in the gaps with the expressions below. Academics and #practitioners traditionally refer to the terms operations or production management when #referring to physical transformations #taking place in a single business location (factory, restaurant or even bank clerking) and #reserve the term logistics for activities #related to distribution, that is, moving products on the territory. Managing a distribution centre is #seen, therefore, as pertaining to the realm of logistics since, while in theory the products made by a factory are ready for consumption they still need to be moved along the distribution network according to some logic, and the #distribution centre aggregates and #processes orders coming from different areas of the territory. That being said, from a modelling perspective, there are similarities #between operations management and logistics, and companies sometimes use #hybrid professionals, with for ex. "Director of Operations" or "Logistics Officer" working on similar problems. #Furthermore, the term supply chain management originally refers to, among other issues, having a #global vision in of both production and logistics from point of origin to point of production. All these #terms may suffer from semantic change as a side effect of advertising. Test 1 D 2 A 3 D 4C 5 A 6C 7B 8 A 9C 10 A Bibliography FOWLER, W. S. Penguin Readers Teacher's Guides: Placement Tests. Harlow: Pearson Education, 2005. ISBN 0 582 47380 2. WIKIPEDIA. Logistics. [online]. 2014, [cit. 2014-14-8]. Available at WWW http://en.wikipedia.org/wiki/Logistics 1. Discuss with your partner which branches / fields of logistics do you know and what are their responsibilities. 2. Read the article below and match the headings with the correct paragraphs. Logistics fields Distribution logistics Procurement logistics Green Logistics RAM Logistics Reverse logistics Disposal logistics Production logistics □ D denotes all those operations related to the reuse of products and materials. The reverse logistics process includes the management and the sale of surpluses, as well as products being returned to vendors from buyers. Reverse logistics stands for all operations related to the reuse of products and materials. It is "the process of planning, implementing, and controlling the efficient, cost effective flow of raw materials, in-process inventory, finished goods and related information from the point of consumption to the point of origin for the purpose of recapturing value or proper disposal. More precisely, reverse logistics is the process of moving goods from their typical final destination for the purpose of capturing value, or proper disposal. The opposite of reverse logistics is forward logistics. (see also Logistic engineering) combines both business logistics and military logistics since it is concerned with highly complicated technological systems for which Reliability, Availability and Maintainability are essential, e.g.: telecommunication systems and military supercomputers. □ connects procurement to distribution logistics. Its main function is to use available production capacities to produce the products needed in distribution logistics. Production logistics activities are related to organizational concepts, layout planning, production planning, and control. I D has, as main tasks, the delivery of the finished products to the customer. It consists of order processing, warehousing, and transportation. Distribution logistics is necessary because the time, place, and quantity of production differs with the time, place, and quantity of consumption. has as its main function to reduce logistics cost(s) and enhance service(s) related to the disposal of waste produced during the operation of a business. consists of activities such as market research, requirements planning, make-or-buy decisions, supplier management, ordering, and order controlling. The targets in procurement logistics might be contradictory: maximizing efficiency by concentrating on core competences, outsourcing while maintaining the autonomy of the company, or minimizing procurement costs while maximizing security within the supply process. (Logistics, Wikipedia, 2014) Vocabulary procurement (pra 'kjoamant) zprostředkování, zaopatření outsourcing (autso:siy) zadávání subdodavatelských zakázek, využívání subdodavatelských vztahů to maintain (tu.mem 'tern) udržovat, zachovávat, starat se layout ('lemot) plán, nákres, návrh warehousing (wedhauznj) skladování disposal (d/'spaaz4) odstranění, likvidace to enhance (tu:m 'ha.nts) zvýšit, zvětšit, pozvednout reverse logistics (r/ \3.sld V^/st/ks) reverzní logistika to denote (tu.di naat) označovat, pojmenovávat, vyjadřovat, ukazovat (na co) reuse (rii'juis) opětovné použití surplus (s3:plds) přebytek, nadbytek vendor (vencb:r) prodejce raw material (xo.md 'torial) surovina, základní materiál inventory (^'/nv^ntri) inventář, zásoba to recapture (tu.ri: 'kcepfdr) znovunabýt, získat proper (prvp9r) pořádný, patřičný, náležitý, vhodný attempt (d 'tempt) pokus to achieve (tu.d 'tfr.v) dosáhnout, dokázat intermodal (x mtd 'maad4) kombinovaný (vice druhů přepravců) freight (fre/t) náklad, nákladní doprava, path (pa. 0) dráha, trasa saturation (tscefr 'eifn) nasycování, přesycování 3. In pairs / small groups try to elicit the meaning of underlined expressions. 4. Fill in the gaps with the expressions below. efficient implementing moving opposite precisely process products purpose raw recaptu ring related returned reuse Reverse surpluses value _logistics denotes all those operations related to the_of products and materials. The reverse logistics_includes the management and the sale of_ , as well as products being _ to vendors from buyers. Reverse logistics stands for all operations related to the reuse of__ and materials. It is "the process of planning,__, and controlling the _ , cost effective flow of_ materials, in-process inventory, finished goods and_information from the point of consumption to the point of origin for the purpose of _ value or proper disposal. More _ , reverse logistics is the process of_goods from their typical final destination for the _ of capturing _ , or proper disposal. The_of reverse logistics is forward logistics. 5. Read the article one more time and then choose one field of logistics and give its description for the class. You schoolmates are supposed to guess what field you have described. Afterwards, write your description down. 6. In small groups think of five questions related to the article (using at least in two of them INTERROGATIVE ADVERBS). The rest of class will answer them. 1)_ 2)_ 3)_ 4)_ 5). Short topic outline The fields of logistics Procurement logistics - market research, requirements planning, make-or-buy decisions, supplier management, ordering, and order controlling Production logistics - using available production capacities to produce the products needed in distribution logistics Distribution logistics - delivery of the finished products to the customer Disposal logistics - reducing logistics cost(s) and enhancing service(s) Reverse logistics includes the management and the sale of surpluses, products being returned to vendors from buyers Green Logistics - attempts to measure and minimize the ecological impact of logistics activities RAM Logistics -combines both business logistics and military logistics since it is concerned with highly complicated technological systems Short grammar outline Interrogative adverbs - usually placed at the beginning of the sentence Why does RAM logistics combine business and military logistics? Where can be green logistics used? How does disposal logistics reduce costs? When is procurement logistics applied? Test 1 It's a very good car but it's too expensive. I can't....................it. A pay B spend C afford D cost 2 No one expected the President to....................his rival in the election. A beat B win C lose D gain 3 That's the trouble with politicians. You can't trust them,....................they say. A however B whatever C for all D for much 4 He had to give up the house because he couldn't pay the..................... A salary B rent C hire D fare 5 That was a nasty thing to do. You should be....................of yourself. A ashamed B disgusted C sorry D amazed 6 She wasn't....................to lift the heavy box. A so strong B as strong C enough strong D strong enough 7 You'd already read the book,....................you? A hadn't B didn't C wouldn't D shouldn't 8 It takes the children over an hour to....................to school with all this traffic. A arrive B reach C get D approach 9 Our cook has just left, so we'll have to....................for another one. A announce B advise C advertise D notice 10 There's a policeman over there.....................the way. A Ask him B Ask him for C Demand him D Demand him for Key 2. Read the article below and match the headings with the correct paragraphs. Procurement logistics consists of activities such as market research, requirements planning, make-or-buy decisions, supplier management, ordering, and order controlling. The targets in procurement logistics might be contradictory: maximizing efficiency by concentrating on core competences, outsourcing while maintaining the autonomy of the company, or minimizing procurement costs while maximizing security within the supply process. Production logistics connects procurement to distribution logistics. Its main function is to use available production capacities to produce the products needed in distribution logistics. Production logistics activities are related to organizational concepts, layout planning, production planning, and control. Distribution logistics has, as main tasks, the delivery of the finished products to the customer. It consists of order processing, warehousing, and transportation. Distribution logistics is necessary because the time, place, and quantity of production differs with the time, place, and quantity of consumption. Disposal logistics has as its main function to reduce logistics cost(s) and enhance service(s) related to the disposal of waste produced during the operation of a business. Reverse logistics denotes all those operations related to the reuse of products and materials. The reverse logistics process includes the management and the sale of surpluses, as well as products being returned to vendors from buyers. Reverse logistics stands for all operations related to the reuse of products and materials. It is "the process of planning, implementing, and controlling the efficient, cost effective flow of raw materials, in-process inventory, finished goods and related information from the point of consumption to the point of origin for the purpose of recapturing value or proper disposal. More precisely, reverse logistics is the process of moving goods from their typical final destination for the purpose of capturing value, or proper disposal. The opposite of reverse logistics is forward logistics. Green Logistics describes all attempts to measure and minimize the ecological impact of logistics activities. This includes all activities of the forward and reverse flows. This can be achieved through intermodal freight transport, path optimization, vehicle saturation and city logistics. RAM Logistics (see also Logistic engineering) combines both business logistics and military logistics since it is concerned with highly complicated technological systems for which Reliability, Availability and Maintainability are essential, e.g.: telecommunication systems and military supercomputers. 4. Fill in the gaps with the expressions below. #Reverse logistics denotes all those operations related to the #reuse of products and materials. The reverse logistics #process includes the management and the sale of #surpluses, as well as products being #returned to vendors from buyers. Reverse logistics stands for all operations related to the reuse of #products and materials. It is "the process of planning, implementing, and controlling the #efficient, cost effective flow of #raw materials, in-process inventory, finished goods and #related information from the point of consumption to the point of origin for the purpose of #recapturing value or proper disposal. More #precisely, reverse logistics is the process of #moving goods from their typical final destination for the #purpose of capturing #value, or proper disposal. The #opposite of reverse logistics is forward logistics. Test 1 C 2 A 3 B 4B 5 A 6D 7 A 8C 9C 10 A Bibliography FOWLER, W. S. Penguin Readers Teacher's Guides: Placement Tests. Harlow: Pearson Education, 2005. ISBN 0 582 47380 2. STROH, M. B. A Practical Guide to Transportation and Logistics. Dumont: Logistics Network, 2006. ISBN 0-9708115-1-9. 1. Discuss with your partner what the main responsibilities of warehouses are. 2. Read the article below to see how you did with your guess. Logistics and Warehouses A warehouse is a commercial building for storage of goods. Warehouses are used by manufactures, importers, exporters, wholesalers, transport businesses etc. They are usually large plain buildings in industrial areas of cities, towns and villages, strategically positioned to be close to main transport facilities such as ports, roads, stations and rivers. They usually have loading docks to load and unload goods from trucks. Sometimes warehouses are designed for the loading and unloading of goods directly from railways, airports, or seaports. They often have cranes and forklift trucks for moving goods, which are usually placed on ISO standard pallets loaded into pallet racks. Stored goods can include any raw materials, packing materials, spare parts, components, or finished goods associated with agriculture, manufacturing, or commerce. Organizing a warehouse well is essential for efficient loading, storing and unloading of goods, as it saves time, space and therefore money. Over the last twenty years warehouses have changed a lot, mainly due to new technology and business demands. Modern warehouses are now almost fully automated - they require very few people to run them - and they employ 'Just in Time' techniques, so goods are never stored for very long, meaning savings in space and money. (D'Acunto, 2012) A warehouse management system (WMS) is a key part of the supply chain and primarily aims to control the movement and storage of materials within a warehouse and process the associated transactions, including shipping, receiving, put away and picking. The systems also direct and optimize stock putaway based on real-time information about the status of bin utilization. A WMS monitors the progress of products through the warehouse. It involves the physical warehouse infrastructure, tracking systems, and communication between product stations. More precisely, warehouse management involves the receipt, storage and movement of goods, (normally finished goods), to intermediate storage locations or to a final customer. In the multi-echelon model for distribution, there may be multiple levels of warehouses. This includes a central warehouse, a regional warehouses (serviced by the central warehouse) and potentially retail warehouses (serviced by the regional warehouses). Warehouse management systems often utilize automatic identification and data capture technology, such as barcode scanners, mobile computers, wireless LANs and potentially radio-frequency identification (RFID) to efficiently monitor the flow of products. Once data has been collected, there is either batch synchronization with, or a real-time wireless transmission to a central database. The database can then provide useful reports about the status of goods in the warehouse. Warehouse design and process design within the warehouse is also part of warehouse management. Warehouse management is an aspect of logistics and supply chain management. (Warehouse management system, Wikipedie, 2014,) Vocabulary wholesaler ('hdolisei\dr) velkoobchodník crane (kre/n) jeřáb forklift truck ('fo:kliftu«X) vysokozdvižný vozík s vidlicovým nástavcem ISO (International OrganizationforStandardization) (x mid nceßnH, ag^na/ 'z£ißnb:ri stcendddai 'zeißn) mezinárodní organizace pro normalizaci rack (reek) stojan, regál spare part (spedrpa:t) náhradní část due to (dju: tu:) kvůli čemu to require (tu.ri 'kwa/ar) vyžadovat bin (b/n) popelnice, koš (odpadkový), přihrádka, police tracking system ('trceknj 's/stam) sledovací systém multi-echelon (nulti 'efdlvn) multi-echelon to intermediate (tu: mid 'mi.didt) zprostředkovat batch (beef) hromada, řada, série shipping Cfipiy) doprava, přeprava 3. In pairs / small groups try to elicit the meaning of underlined expressions. 4. Fill in the gaps with the expressions below. by close demands docks employ essential fully have in loaded moving ports savings se aports storage storing transport trucks villages A warehouse is a commercial building for_of goods. Warehouses are used _manufactures, importers, exporters, wholesalers,__businesses etc. They are usually large plain buildings__industrial areas of cities, towns and _ , strategically positioned to be_to main transport facilities such as_, roads, stations and rivers. They usually have loading_to load and unload goods from_ . Sometimes warehouses are designed for the loading and unloading of goods directly from railways, airports, or__. They often have cranes and forklift trucks for__goods, which are usually placed on ISO standard pallets__into pallet racks. Stored goods can include any raw materials, packing materials, spare parts, components, or finished goods associated with agriculture, manufacturing, or commerce. Organizing a warehouse well is _for efficient loading,_and unloading of goods, as it saves time, space and therefore money. Over the last twenty years warehouses _ changed a lot, mainly due to new technology and business _ . Modern warehouses are now almost_automated - they require very few people to run them - and they_'Just in Time' techniques, so goods are never stored for very long, meaning_in space and money. 5. Read the article one more time and then in small groups google (if necessary) what the multi-echelon model for distribution is. Put your answers down. 6. In small groups think of five questions related to the article (using at least in two of them some of the following verbs and their prepositionsDIS/APPROVE OF, DESCRIBE AS COMPLAIN ABOUT, CONCENTRATE ON, RELY ON) . The rest of class will answer them. 1)_ 2)__ 3)_ 4)_ 5)_ Short topic outline Logistics and warehouses A warehouse is a commercial building for storage of goods Warehouses - used by manufactures, importers, exporters, wholesalers, transport businesses Large plain buildings in industrial areas They often have cranes and forklift trucks for moving goods Organizing a warehouse well is essential for efficient loading, storing and unloading of goods Just in Time techniques A warehouse management system Key part of the supply chain It aims to control the movement and storage of materials within a warehouse and process the associated transactions, including shipping, receiving, put away and picking Monitoring the progress of products through the warehouse It involves the receipt, storage and movement of goods Multi-echelon model for distribution The use ofautomatic identification and data capture technology Warehouse design Short grammar outline Verbs + preposition Dis/approve of I disapprove of this way of distributing. Describe as It was described as wonderful technology. Complain about They have recently complaint about the warehouse design. Concentrate on The staff concentrates on moving the goods with the cranes and fork trucks. Rely on Suppliers rely on the stocks in warehouses. Test 1 We had the first snow of the winter....................days..................... A few ... since B a few ... since C few ... ago D a few ... ago 2 He....................getting into trouble by refusing to be involved. A resists B avoids C prevents D overcomes 3 I'm sorry. I....................you about the change in the dates but I forgot. A should have told B must have told C ought to tell D would tell 4 I knew she was married because she was....................a wedding ring. A carrying B bearing C dressing D wearing 5 Your wife rang....................you that you're meeting her after work. A for reminding B to remind C for remembering D to remember 6 So far no one has....................for the job of chief of police. A appointed B applied C presented D appeared 7 He wasn't elected,....................the efforts of his team. A despite B although C nevertheless D however 8 ....................when there is ice on the roads....................very dangerous. A Riding ... is B The riding ... is C Riding ... it is D The riding ... it is 9 The method sounds old-fashioned but it works well as A as ... never B as ... ever C so ... never D so ... ever 10 When you've been playing as long as I have, one game is very like A other B each other C another D one other (Fowler, 2005) Key 4. Fill in the gaps with the expressions below. A warehouse is a commercial building for #storage of goods. Warehouses are used #by manufactures, importers, exporters, wholesalers, #transport businesses etc. They are usually large plain buildings #in industrial areas of cities, towns and #villages, strategically positioned to be #close to main transport facilities such as #ports, roads, stations and rivers. They usually have loading #docks to load and unload goods from #trucks. Sometimes warehouses are designed for the loading and unloading of goods directly from railways, airports, or #seaports. They often have cranes and forklift trucks for #moving goods, which are usually placed on ISO standard pallets #loaded into pallet racks. Stored goods can include any raw materials, packing materials, spare parts, components, or finished goods associated with agriculture, manufacturing, or commerce. Organizing a warehouse well is #essential for efficient loading, #storing and unloading of goods, as it saves time, space and therefore money. Over the last twenty years warehouses #have changed a lot, mainly due to new technology and business #demands. Modern warehouses are now almost #fully automated - they require very few people to run them - and they #employ 'Just in Time' techniques, so goods are never stored for very long, meaning #savings in space and money. 5. Read the article one more time and then in small groups google (if necessary) what the multi-echelon model for distribution is. In such multi-echelon networks, new product shipments are first stored at a regional or central facility. These central facilities are the internal suppliers to the customer-facing locations. This is a common distribution model for many retail chains as well as for large distributors and manufacturers. (Lee, B.C. 2003) Test 1 D 2B 3 A 4D 5B 6B 7 A 8 A 9B 10C Bibliography D'Acunto, E. (2012). FLASH on English for TRANSPORT&LOGISTICS . Recanati: ELI S.r.l. FOWLER, W. S. Penguin Readers Teacher's Guides: Placement Tests. Harlow: Pearson Education, 2005. ISBN 0 582 47380 2. LEE, B.,C. Multi-Echelon Inventory Optimization.[online]. 2013, [cit. 2014-14-8]. Available at WWW file:///C:/Users/4014/AppData/Local/Temp/Multi_Echelon_Inventory.pdf WIKIPEDIA. Warehouse Management System.[online].2014, [cit. 2014-14-8]. Available at WWW http://en.wikipedia.org/wikiAVarehouse_management_system. 1. Discuss with your partner what the inventory is good for, the inventory purpose, the pros and cons of having inventory. Share your knowledge with the class. 2. Read the article below. Inventory - Who Needs It? All organizations keep inventory. "Inventory" includes a company's raw materials, work in process, supplies used in operations, and finished goods. Inventory can be as simple as a bottle of glass cleaner used as part of a building's custodial program or as complex as a mix of raw materials and subassemblies used as part of a manufacturing process. INVENTORY COSTS Inventory brings with it a number of costs, including: • Dollars • Space • Labor to receive, check quality, put away, retrieve, select, pack, ship, and account for the item(s) • Deterioration, damage, and obsolescence • Theft Inventory costs generally fall into ordering costs and holding costs. Ordering, or acquisition, costs come about regardless of the actual value of the goods. These costs include the salaries of those purchasing the product, costs of expediting the inventory, and so on. Holding costs include the cost of capital tied up in inventory; storage costs such as rent; and costs of handling the product such as equipment, warehouse and stock-keeping staff, stock losses/wastage, taxes, and so on. Acquisition/ordering costs come about regardless of the actual value of the goods. These costs include the salaries of those purchasing the product, costs of expediting the inventory, and so on. THE PURPOSE OF INVENTORY So why do you need inventory? In a just-in-time manufacturing environment, inventory is considered waste. However, in environments where an organization suffers from poor cash flow or lacks strong control over (1) electronic information transfer among all departments and all significant suppliers, (2) lead times, and (3) quality of materials received, inventory plays important roles. Some of the more important reasons for obtaining and holding inventory are: • Predictability: To engage in capacity planning and production scheduling, you need to control how much raw material and how many parts and subassemblies you process at a given time. Inventory buffers what you need from what you process. • Fluctuations in demand: Inventory protects you from unreliable suppliers of when an item is scarce and a steady supply is difficult to ensure. Whenever possible, unreliable suppliers should be rehabilitated through discussions or replaced. • Price protection: Buying quantities of inventory at appropriate times helps avoid the impact of cost inflation • Quantity discounts: Often bulk discounts are available if you buy in large rather than in small quantities. • Lower ordering costs: If you buy a larger quantity of an item less frequently, the ordering costs are less than buying smaller quantities over and over again. TYPES OF STOCK Inventory is basically divided into raw materials, finished goods, and work-in-process. Remember: • Raw materials: Used to produce partial products or completed goods. • Finished product: This is product ready for current customer sales. • Work-in-process (WIP): Items are considered to be WIP during the time raw material is being converted into partial product, subassemblies, and finished product. Other categories of inventory should be considered from a functional standpoint: • Consumables: Light bulbs, hand towels, computer and photocopying paper, brochures, tape, envelopes, cleaning materials, lubricants, fertilizer, paint, dunnage (packing materials), and so on are used in many operations. These are often treated like raw materials. • Service, repair, replacement, and spare items (S&R items): Theseare after-market items used to "keep things going." (Muller, 2011) Vocabulary custodial (his Yaodial) zajišťovací subassembly (s\) hořlavý combustible (kdm '&r\db!>\) rozumný, soudný to decline (tu.di kla/n) odmítnout, nepřijmout denial (d/ ha/al) popření, zamítnutí claimant ('kleimdnt) žadatel, uchazeč to submit (tu.sdb mit) předložit, odevzdat bindingarbitration^'^a/nd/7;, a.bi 'treif>r\) závazné řízení to be entitled to (tu.bim 'tait^dltu:) mít právo, být k něčemu oprávněn, mít nárok apparent (d pcer^t) zřejmý, jasný, očividný promptly (promptli) ihned, okamžitě burden (''fe.^m) břemeno, zátěž solely (saol) výhradně, jedině, pouze inherent nature (m 'her3nt neifdr) přirozená povaha perishability (tperi/9 b/lati) kazivost 3. In pairs / small groups try to elicit the meaning of underlined expressions. 4. Fill in the gaps with the expressions below. carrier claim common condition containers denial entitled prove submit time What are the_rules of loss and damage claims? 1. Either the shipper or the consignee or a third party who may have claim or title to the freight may file a freight_. 2. The claim may be filed with either the origin carrier or the delivery__(if more than one carrier is involved). 3. The claim must be filed within 9 months of delivery of the shipment (if not delivered, within 9 months of reasonable_for delivery). 4. If the carrier declines payment, the claimant has 2 years from date of__to file a lawsuit. 5. The claimant and the carrier may jointly agree to__the claim to the Transportation Arbitration Board (TAB) for binding arbitration. 6. The claimant is__to file for the actual loss. 7. Concealed loss and damage occurs when the shipment is delivered in apparent good _ but later found to be damaged. If you discover concealed loss or damage, report it promptly to the carrier (at least within 15 days). Hold the shipping _and contents in the same condition they were in when the damage was discovered. In these cases, the burden is on the claimant to_that the damage occurred while in the carrier's possession. 5. Read the article one more time and then write down as many common rules of loss and damage claims as you remember. 6. In small groups think of five questions related to the article (using at least in two of them the phrasal verb get: GET OFF, GET ON, GET ON WITH, GET OUT OF). The rest of class will answer them. 1)_ 2)_ 3)_ 4)_ 5)_ Short topic outline Loss and Damage Claims Loss and damage claims are a lose-lose situation for all parties, Visible damage accounts for 56 percent of all claims, shortage 33 percent, concealed damage 4 percent, and wreckage 3 percent. Generally speaking, carriers' liability is limited to: the actual value the released value Common rules of loss and damage claims The carrier is not liable if the damage was caused solely by: Act of God Act of the public enemy Act of public authority Act of the shipper The inherent nature of the Short grammar outline Phrasal verb GET We need to get off the bus now. This stop is ours. Get on the train, there's not much time. How do you get on with your new colleagues? Well? There's no way to get out of this duty. It must be done by the end of this week. So everybody here has to participate. Test 1 Don't you regret..........before the end of the course? A leave B to leave C leaving D to have left 2 I've sent the children outside to play. They were getting in my..........all the time. A place B hands C nerves D way 3 You should try to get a good night's sleep.....much work you have to do. A whatever B however C no matter D although 4 He hates washing up so he actually tries to................doing it. A get out of B get away with C get by D get over 5 The doctor recommended me..............on a strict diet. Ago B going C to go D I should go 6 It's only a bruise and the pain will........after a while. A wear out B wear off C clear up D clear off 7 I don't think it's.......! She does exactly the same job as me but she earns more. A even B equal C kind D fair 8 The children have.............lots of new friends since we moved to this town. A formed B become C made D got 9 There is a (n)...............training period before you start work. A initial B first C primary D beginning 10 I'll buy my ticket on the train if the guard will.........me go through the barrier. A allow B let C permit D agree (O'Connell, 1997) Key 4. Fill in the gaps with the expressions below. What are the #common rules of loss and damage claims? 1. Either the shipper or the consignee or a third party who may have claim or title to the freight may file a freight #claim. 2. The claim may be filed with either the origin carrier or the delivery #carrier (if more than one carrier is involved). 3. The claim must be filed within 9 months of delivery of the shipment (if not delivered, within 9 months of reasonable #time for delivery). 4. If the carrier declines payment, the claimant has 2 years from date of #denial to file a lawsuit. 5. The claimant and the carrier may jointly agree to #submit the claim to the Transportation Arbitration Board (TAB) for binding arbitration. 6. The claimant is #entitled to file for the actual loss. 7. Concealed loss and damage occurs when the shipment is delivered in apparent good #condition but later found to be damaged. If you discover concealed loss or damage, report it promptly to the carrier (at least within 15 days). Hold the shipping #containers and contents in the same condition they were in when the damage was discovered. In these cases, the burden is on the claimant to #prove that the damage occurred while in the carrier's possession. Test 1 C 2D 3 B 4 A 5C 6B 7D 8C 9 A 10 B Bibliography O'CONNELL, S. Focus on First Certificate for the revised exam. Harlow : Longman, 1997. ISBN 0-175-56997-5. SOUTHERN, R. N. Transportation and Logistics Basics. Memphis: Continental Traffic Service, 1997. S. 120-121. ISBN 0-9655014-0-X.