Bài giảng English for Logistics

English for Logistics Deparment of logistics and supply chain management Faculty of Economics and Management, TLU... English for Logistics Chapter 1: Getting started in global logistics

English for Logistics

Deparment of logistics and supply chain management

Faculty of Economics and Management, TLU

● Chapter 1: Getting started in global logistics

● Chapter 2: Global logistics services

● Chapter 3: Providing logistics services to global

customers

● Chapter 4: Stocking and distributing your products

● Chapter 5: “Greening” your manufacturing line

● Chapter 6: Examples of global logistics

English for Logistics

Chapter 1: Getting started in global logistics

1.1 What is logistics

Logistics can be defined as the management of the flow of goods, information and

other resources, energy and people between the point of origin and the point of

consumption in order to meet the requirements of consumers Logistics involves the

integration of information, transportation, inventory, warehousing, material-handling,

packaging, order fulfillment Logistics may have an internal focus (inbound

logistics), or external focus (outbound logistics)

Logistics management plans, implements, and controls the efficient flow and storage

of goods, services and related information between the point of origin and the point

of consumption in order to meet customers ’ requirements

Inventory

 Inventory

The amount of goods and materials owned by a company at a particular time, including raw materials, work-

in- progress, and finished goods

 Types of Inventory

 Raw materials are unprocessed materials used to produce a good Examples of raw materials include:

Aluminum and steel for the manufacture of cars

Flour for bakeries that produce bread

Crude oil held by refineries

 Work-in-progress inventory is the partially finished goods waiting for completion and resale

 Finished goods are products that go through the production process, and are completed and ready for

sale

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Material handling

The movement, storage, protection and control of materials

throughout the manufacturing and distribution process including

their consumption and disposal

Warehousing

 Warehousing is the process of storing physical inventory for sale or

distribution Warehouses are used by all different types of businesses that

need to temporarily store products in bulk before either shipping them to

other locations or individually to end consumers

 Warehousing is storing goods in a facility or a warehouse before they’re

distributed or sold It involves storing and protecting goods in an organized

manner

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Packaging

 Pakaging is the science, art and technology of enclosing or

protecting products for distribution, storage, sale, and use

Pakaging also refers to the process of design, evaluation, and

production of packages

 Pakaging is a process in which containers and wrapping

materials are used to protect, contain, identify, promote and

facilitate the transportation and use of the product

Order fulfillment

 Order fulfillment is the process of receiving, processing and delivering an

order to a customer

 It involves receiving and storing inventory, processing the order, picking

and packing items, shipping the order, and processing any returns

 The order fulfillment process starts with a customer placing an order and

ends once they receive it However, if the buyer wants to return a product,

order fulfillment manages the return transaction as well

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Order processing

 Order processing is the process or work-flow associated with the picking, packing, and

delivery of the packed items to a shipping carrier/a customer and is a key element of order

fulfillment

 Typically, order processing involves four key steps: receiving the order, picking and

packing the items, processing payments, and shipping the order In some cases,

additional steps may be involved, such as quality control or gift wrapping

 Order processing is just one part of the order fulfillment cycle and refers to the steps that

a company takes to receive, review, approve and prepare an order The whole order

fulfillment process starts way before a customer makes a purchase

Procurement

 Procurement can be defined as the process of acquiring goods, and

services from a third-party vendor through direct purchasing, competitive

bidding, or tendering process while ensuring timely delivery of the items

with the right quality and quantity Procurement involves activities such as

identification of needs, sourcing, selection, negotiation, ordering, receiving,

and payments

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Purchasing

 Purchasing: The purchasing process is a part of the procurement function

and focuses on the transactional phase associated with buying goods and

services Purchasing process means the acquisition or direct buying of

goods, commodities, and services It involves activities such as ordering,

conduct purchase orders, receiving delivery, and payments

Carrier: Company that transports or conveys goods

Container: A very large metal box used for transporting goods

Courier: Company that specializes in the speedy and secure delivery of small goods

and packages

Customs clearance: official permission to bring goods into or take goods out of a

country

Distribution: the process of transporting products from a manufacturer, storing them,

and selling them to different stores and customers

Haulier/Haulage contractor: company which carries goods by road

Inventory: the amount of goods and materials owned by a company at a

particular time, including raw materials, work- in- progress, and finished goods

Order picking: selecting and assembling items from stock for shipments

Outsourcing: contracting functions out to third-party providers

Procurement: The process by which an organization buys the products or

services it needs from other organizations

Retailer: a business that buys products from wholesalers or manufacturers and resells them to

the ultimate consumer

Supplier: Company which supplies parts or services to another company also called vendor

Supply chain: the close co-operation of all parties involved in the making, selling, and

1.2 The evolution of logistics management

 In the early days, logistics was focused on the physical movement of

goods However, as businesses have become more complex, logistics

has evolved to include a wider range of activities

• Stage 1- The early days of logistics

• Stage 2- The transportation era

• Stage 3- The physical distribution era

• Stage 4- The supply chain management era

Stage 1- The early days of logistics

The early days of logistics were characterized by a focus on

transportation Businesses were primarily concerned with getting their

products from where they were made to where they were sold The

main goal was to minimize transportation costs

In the early days, logistics was often seen as a necessary evil It was

seen as a cost center, rather than a profit center However, as

businesses began to compete more fiercely, they realized that logistics

could be a strategic asset

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Stage 2- The transportation era

The transportation era began on the early 20 th century During this time,

there was a significant increase in the use of motorized

transportation This led to a decrease in transportation costs and

an increase in the speed of transportation

The transportation era also saw the development of new transportation

technologies, such as containerization and airfreight The

technologies made it possible to transport goods more efficiently and

effectively

Stage 3- The physical distribution era

The physical distribution era began in the 1960s During this time, there

was a focus on the entire process of getting products to customers

This included transportation, warehousing, inventory management, and

order processing

This era saw the development of new technologies, such as barcodes

and electric data interchange (EDI) These technologies made it

possible to track goods more efficiently and to improve the accuracy

of order processing

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Stage 4- The supply chain management era

The supply chain management era began in the 1980s During this time,

there was a focus on the entire supply chain, from the suppliers of

raw materials to the end customers This led to a more holistics view

of logistics management

This era saw the development of new technologies, such as enterprise

resource planning (ERP) systems and supply chain management

software These technologies made it possible to integrate the

different parts of the supply chain and to improve visibility across the

entire chain

English for Logistics

Chapter 2: Global logistics services

- end-to-end solution : a process where a system or

service is carried out from beginning to end

international freight forwarder (intermediary)

and delivery of goods across geographical borders

for individuals and organizations

HGV

DC

RFID

3PL

English for Logistics

Chapter 3 PROVIDING LOGISTICS SERVICES TO

GLOBAL CUSTOMERS

Commercial invoice

• A commercial invoice is a

required document for the

export and import clearance

process It is sometimes

used for foreign exchange

purposes In the buyer’s

country, it is the document

that is used by their

customs officials to assess

import duties and taxes

Certificate of origin

• Certificate of origin is a document or equivalent legal form issued

by an agency or organization of a country, group of countries, or

territories exporting goods based on regulations and relevant

requirements for origin, indicating the origin of the good

Packing list

• A packing list is a document used in international trade It provides

the exporter, international freight forwarder, and ultimate consignee

with information about the shipment, including how it's packed, the

dimensions and weight of each package, and the marks and

numbers that are noted on the outside of the boxes

Airway bill

• An air waybill (AWB) is a document that accompanies goods

shipped by an international air courier to provide detailed

information about the shipment and allow it to be tracked The bill

has multiple copies so that each party involved in the shipment

can document it

• An air waybill (AWB), also known as an air consignment note, is a

type of bill of lading

Consular invoice

• A consular invoice is a document certifying a shipment of goods and

shows information such as the consignor, consignee, and value of

the shipment

• Generally, a consular invoice can be obtained through a consular

representative of the destination country and must be certified by the

consul of the country of destination, who will stamp and authorize the

invoice

Pro forma invoice

• A proforma invoice is a preliminary bill or estimated invoice which is

used to request payment from the committed buyer for goods or

services before they are supplied

• A proforma invoice includes a description of the goods, the total

payable amount and other details about the transaction

Export licence

• Export licenses are issued by the appropriate licensing agency

after a careful review of the facts surrounding the given export

transaction

Customs invoice

• The customs invoice is a document required by the customs

authorities to process and dispatch the shipment Depending on the

data declared, they determine any taxes and duties applicable at the

destination and if the goods are liable to any restrictions or controls

• Also known as a pro forma invoice, a customs invoice is a document

that provides customs authorities with details about the shipment such

as the names and addresses of the shipper and consignee, a

description of the goods, and the country of origin

Dangerous goods declaration

• A dangerous goods declaration is a form confirming that any

dangerous goods being shipped has been packed, labeled, declared,

and signed by all consignors according with the IATA Dangerous

Goods Regulation (DGR)

Bill of lading

• A bill of lading, otherwise known as a BL or BoL, is a legally binding

document that is issued by a carrier and given to the person making

the shipment that outlines what type of goods they will be

delivering, the quantity of those goods, and where those goods will

be sent to It will also be signed by the receiver of the goods

confirming that all required goods have been collected

• A bill of lading is used as a receipt of the shipment and has to travel

with the shipment at every phase of the delivery no matter what

mode of transportation is being used An authorized representative

on part of the shipper, carrier, and receiver has to sign this

document

English for Logistics

Chapter 4 Stocking and distributing your product

Economies of scale

experience when production becomes efficient , as

costs can be spread over a larger amount of goods

• A business's size is related to whether it can achieve an

economy of scale - larger companies will have more cost

savings and higher production levels

Internal economies are caused by factors within a single

company while external factors affect the entire industry

Buffer stock

• Buffer stock is an excess amount of raw materials kept

on hand to guard against any unplanned inventory

amount of buffer stock to retain involves balancing the

cost of the extra inventory against the amount of

production downtime that is avoided by having the extra

inventory

• The advantages of buffer stocks are that they maintain

Factory gate pricing

quoted by the manufacturer, before any taxes, shipping, or

other fees are added

suppliers' "gate" and take care of getting it to their stores or

distribution centers, either with their own trucks or those of their

overall price that retailers pay for the goods that they will

eventually sell in their stores

Tender

• A tender is a formal proposal or request issued by a

Generally, the issuance of tender is a call for the suppliers

service

• The tender is mostly issued to get a project done at a

reasonable cost and time frame possible To ensure a

smooth and fair competition among the bidders, the

process of bidding is guided by law

Lead time

• Lead time measures how long it takes to complete a

process from beginning to end

• In manufacturing, lead time often represents the time it

takes to create a product and deliver it to a consumer

JIT- Just in time

strategy that minimizes inventory and increases efficiency

breakdowns, and reliable suppliers

Companies also spend less money on raw materials because

they buy just enough resources to make the ordered products

and no more

disruptions in the supply chain