1. Make a list of key words to define logistics.

2. Complete the sentences using the words in the box.

a) delivered b) warehouse c) packaged d) customer e) goods

(1)____ is a general word used for things that are made to be sold. When the product is finished, it is (2) ___ (= put in plastic and then in a box) and stored (= kept) in a (3)___. When a (4) ___ orders some of these goods, they are (5) ___ to the shop using road or rail.

3. Read the text again and match the activities (functions) of logistics with their descriptions.

a) customer service	1. It involves management of the locations where the firm’s inventories are stored. A warehouse is used for storage of goods. Distributions centers emphasize a faster turnover of goods.
b) demand forecasting	2. It concerns planning and arranging, and buying the transportation services needed to move a firm’s freight.
c) documentation flow	3. It involves an array of activities to keep existing customers satisfied.
d) interplant movements	4. It is the paperwork that accompanies the flow of physical product.
e) inventory management	5. It starts with the receipt of an order from a customer.
f) order processing	6. It is used to obtain a better idea of the logistics needs of the next planning period.
g) packaging	7. Two purposes are served by it: promoting the product and protecting it.
h) parts and service support	8. During the production process a firm moves products between its various plants.
i) plant and warehouse site selection	9. A firm’s waste materials must be positively managed.
j) production scheduling	10. It is a stock of goods and materials.
k) purchasing	11. Firms often must find the location for a new facility.
l) returned products	12. They include products having defects or goods that are no longer fresh.
m) salvage scrap disposal	13. It is an attempt to balance demand for products with plant capacity and availability of inputs.
n) traffic management	14. Many of the inputs needed for production must be purchased from outside vendors.
o) warehouse and distribut-ion centre management	15. Equipment that has been sold must be maintained. Prompt delivery of repair parts is necessary.

4. Answer the questions.

1. What is logistics?

2. What are the logistics activities?

3. What is the most important element of logistics?

4. What does traffic management include?

5. What does freight consolidation mean?

6. What are the two steps of carrier selection?

7. What is documentation?

8. What facilitates the preparation and handling of documents?

9. What is the difference between tracing and expediting?

10. What do loss and damage claims reflect?

11. Why do diversion and reconsignment sometimes take place?

12. What is done to prevent the shippers and consignees from using the carrier’s equipment as warehouses?

13. What are the features of hazardous materials movements?

5. Work in pairs. Discuss the duties of a traffic manager.

Optional tasks

1. Match the prefixes (1-4) with their meanings in the box.

anew opposite of between wrongly

1) re- means

2) inter- means

3) mis- means

4) un- means

2. The words below can take the prefixes re-, inter-, mis-, or un-. Write a prefix in front of each word. (Some can take more than one prefix.)

-plant -consignment -change -placed -consigned -routed -load