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Functions of Logistics
‘Global Logistics’ is not unusual today. Here are some of the logistics functions that allowed this globalization to happen:
Purchasing of raw materials, assembled products, finished products from all over the world. Where can you get the quality you want at the best price?
Manufacturing operations – how should the machines be organized, how many workers do you need, where do you stock your materials and finished products, how many products do you manufacture on each production run? And the list goes on…
Transportation – domestic and international, from raw materials to finished product; who moves what, and when, and for what price?
Warehousing – product is either moving (transportation) or not (warehousing). This is becoming a very sophisticated area and the key to shortening the time to market the products.
Inventory control – how much product is on hand, on order, in transit, and where is it? Inventory drives logistics.
Import/export – international regulations and documentation can be complex. It takes a specialist to understand the best way to get product across borders.
Information systems – globalization on today’s scale is possible because there is technology that transfers the needed information.
Logistics is performing any of the above functions, or combinations of the above. It is the functions that occur within a single company. Logistics functions used to be considered unavoidable costs to a company, but today they are recognized as crucial to a company’s competitiveness and profitability.
(taken from http://www.ieor.berkeley.edu)
eflect upon Logistics and name the main functions it performs.a) Skim the text and tick off the functions you didn’t mention.
b) Look at the supply chain. Read the text again and fill in the gaps.
??????????
suppliers
Warehousing
(raw
materials)
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Product
warehousing
???????????? Customers
Substitute the underlined words in the text with their synonyms from the box below.
ability to survive
expenses that can’t be ignored
keep
cutting down
in shipping
ability to make money
move
available
manufactured
ratio
very important
process
complicated
reservation
Language Focus: Vocabulary
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ake
all possible combinations with the verbs.
There are 12 words connected with Logistics hidden in the puzzle. Circle each one you can find.
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Fill in the gaps with the words and phrases from the box below. Use the correct form.
a) a production run b) to ship
out c) to stock d) on hand
e) to transfer f) raw materials
g) to purchase h) on order
i)
a warehouse
Finished goods are 1)_______ in warehouses until they are picked for final distribution to customers.
The location of the 2)________ for keeping manufactured goods should be considered beforehand.
In order to perform the transportation faster, the company 3)_________three freighters.
The 4)________ is the process of manufacturing goods from 5)__________.
When the cargo ship arrived in port the products had to be 6)___________to the shops at once.
When the goods are 7)_____________the supplier must 8)__________them ______________ on time.
When the shop assistant tells you that the product is 9)____________, it means that it is available.
a) Fill in the gaps with the prepositions from the box below. The first one is done for you.