Текст книги "Logistics and Supply Chain Management (Логистика и управление цепями поставок)"

UNIT 5
VALUE-ADDED SERVICES

1. Read the following international words. Define their meanings comparing them to the meanings of the corresponding Russian words:

code, component, control, credit, defect, document, focus, final, group, identical, industry, modification, product, segment, transportation.

2. Complete the table using suitable forms:

3. Translate English words and phrases in column A using Russian words and phrases from column B

4. Observe the words and phrases related to “Value Added Services”:

5. Translate the names of Value Added Services:

Value Added Services

Concept whereby a service adds value to a product is called a value added service. In theory distribution adds value because it puts the product into the consumer’s hands.

1. After Sales Service (Reverse Logistics): a specialized segment of logistics focusing on the movement and management of products and resources after the sale and after delivery to the customer. Includes product returns for repair and/or credit.

2. Batch control: tracking the goods via digital easy-to-trace coding system. This control can be based on document counts, record counts, quantity totals, dollar totals, or hash (mixed data, such as customer AR numbers) totals.

3. Bundling/Unbundling: the assembly of a number of pre-packaged products to make up an integrated product offering.

4. Co-packing: packaging operation, often performed by the Logistics Service Provider in a dedicated zone of the warehouse, consisting of wrapping different products together (e.g., to bundle a sample of new product with an old product), or identical products (e.g., in the case of promotional offers).

5. eLogistics services or online logistics services: services that address inefficiencies in the transportation industry, usually involving goods ordered online that can be delivered to the consumer in a timely and efficient manner. The service might include any of the following: order entry, order management, shipment and vehicle tracking, communications and reporting).

6. Kitting: Light assembly of components or parts into defined units. Kitting reduces the need to maintain an inventory of pre-built completed products, but increases the time and labor consumed at shipment.

7. Labelling: the application of labels either to the product or to the packaging.

8. Line feeding: covers the delivery of assembled components to a production line.

9. Merchandising: selling the products; it can include the addition of price stickers or promotional items ready for retail display.

10. Outsourcing: a corporate decision to assign activities previously performed internally (e.g. transport/ warehousing or full-scale logistics service), to a third party, for example, a Logistics Service Provider. Initially, the shippers (manufacturing or commercial companies) outsourced transport, and then progressively did the same for more value-added logistics services.

11. Packing and Marking: The activities of packing products into suitable media for safe shipping and unitizing one or more items of an order, placing them into an appropriate container, and marking and labeling the container with customer shipping destination data, as well as other information that may be required.

12. Postponement packaging: the delay of packaging until the latest possible time.

13. Pre-assembling: the completion of a finished product from component parts or pre-programming of products.

14. Product assembly: a group of subassemblies and/or parts that are put together and that constitute a major subdivision for the final product. An assembly may be the end item or a component of a higher level assembly.

15. Repacking: Packing for a specific customer again. It can include repalletization. (Pallet: The platform which cartons are stacked on and then used for shipment or movement as group. Pallets may be made of wood or composite materials).

16. QA Control: The management function that attempts to ensure that the foods or services manufactured or purchased meet the product or service specifications; quality control ensures that product is received into and dispatched from the warehouse in a suitable condition, free from faults and defects.

17. Re-Working: modification of products to suit a local market.

18. Sequencing: Logistics term used in supply-chain solutions in connection with the sequencing (ie timed delivery) of components into a production line.

6. Give English equivalents for the words and phrases given below:

возврат товаров; емкость; заранее упакованный продукт; использованный товар; набор; наклеивание ярлыков; наклейка с ценой; окончательный продукт; поврежденный товар; поставка сборных компонентов; принятие заказа; ремонт; сбыт товаров; транзитное оборудование; упаковка и маркировка.

7. Complete the sentences using words and expressions given below:

together; dedicated; online; assembly; sale; container; outsourcing; delivery; packing; kitting; value; quality; labeling.

A segment of logistics focusing on the movement and management of products and resources after the .........¹ and after ............² to the customer.

A packaging operation, often performed by the Logistics Service Provider in a ...........³ zone of the warehouse, consisting of wrapping different products............⁴.

If services add ...........^.5 to a product they are called value added services.

The activities of ............⁶ products into suitable media for safe shipping and unitizing one or more items of an order, placing them into an appropriate..........⁷, and marking and ..........⁸it, are called packing and marking.

The company concept to assign logistics activities to a third party is ..............⁹.

When the services meet the product or service specifications ............¹⁰ control is effective.

Light ............¹¹ of components or parts into defined units is called ............¹².

Logistic services which can be performed through the Internet are .......¹³ logistics.

8. Answer the questions:

1. What does line feeding mean?

2. What services does eLogistics include?

3. How are the assembled pre-packaged products called?

4. What is the name of the operation comprising of consolidation, pre-assembly and sequencing of material flows?

5. What does kitting mean?

6. Why is quality control necessary?

7. How are the services having increased or improved value called?

8. What’s the name of the logistics segment which focuses on the movement and management of products after the sale and after delivery to the customer?

9. How can be goods tracking via digital easy-to-trace coding system called?

10. What is the name of the following operation: transferring some logistics services from one company to another one?

9. Translate the sentences and names of Value-Added Services:

1. Передача компанией определенных видов работ, прежде выполняемых ею, другой компании.

2. Наклеивание ярлыков на продукты.

3. Сбор и обработка использованных или поврежденных товаров.

4. Уже произведенная сборка продукта.

5. Складываемые части, которые образуют окончательный продукт.

6. Добавление всех необходимых частей в один набор.

7. Прослеживание определенного набора продуктов через цифровую кодированную систему.

8. Проверка товара на предмет его сохранности, хорошего состояния, отсутствия дефектов.

9. Предварительная сборка и консолидация материальных потоков.

10. Своевременная поставка необходимых компонентов к линии производства.

11. Изменение товаров с целью соответствия их местному рынку.

10. Translate the text using words and phrases from the text “Value Added Services” and retell it:

Сегодня для сохранения конкурентоспособности операторы складов вынуждены добавлять к традиционным экономическим и сервисным выгодам другие услуги с добавленной стоимостью. Сервис с добавленной стоимостью может ориентироваться главным образом на упаковку и/или на производство. Самой распространенной услугой с добавленной стоимостью является упаковка. Склады могут увеличивать добавленную стоимость продукции за счет совершенствования упаковки, приспособления ее к индивидуальным запросам потребителей. Склад в состоянии повысить стоимость, формируя пакет из единичных упаковок на паллете или в общей обертке, заменяющей паллет, и т.д. Другим примером складской услуги с добавленной стоимостью является удаление на складе защитной упаковки перед транспортировкой продукции заказчикам в случае крупных поставок, поскольку у заказчиков порой возникают проблемы с утилизацией большого количества упаковочных материалов. Складской сервис с добавленной стоимостью может заключаться также в смене тары. Передача такого рода операций складам уменьшает потребность в запасах и сопутствующий риск, сокращает транспортные расходы и опасность повреждения продукции. Глобализация торговли ставит перед складскими хозяйствами более сложные задачи, но одновременно и сулит им дополнительные рыночные возможности. Чем длиннее маршруты транспортировки товаров, тем важнее роль складского сервиса с добавленной стоимостью.

11. Transform the sentences into the Passive Voice. Example: Someone is packing the goods. The goods are being packed (See Language Notes):

1. The managers have already performed a batch control.

2. They will complete the finished product from the component parts.

3. The company supplies the customers with reverse logistics.

4. The clients received the product from the warehouse in a suitable condition.

5. The employees have just finished the product assembly.

6. He is making a postponement packaging.

7. Our corporation is outsourcing some of its services outside.

8. Last week someone applied labels to both containers.

9. We have made a prominent marking on the box prepared for shipping.

10. Soon we will implement tracking and tracing system.

11. The company added consolidation to the usual range of its services.

12. Most companies supply the customers with eLogistics services.

13. They have been practicing the quality control system.

12. Retell the text “Value Added Services”.

SITUATION PRACTICE

Find in the Internet an advertisement of the company providing Value-Added Services. Tell about these services.

Useful language: Talking about a company.

The company was founded in; They make/manufacture/sell/distribute; It has subsidiaries / factories /branches in. …can offer you a wide range of …: … can provide (you with) customized/tailor-made logistics solutions for. It specializes in ....

UNIT 6
INVENTORY MANAGEMENT

1. Read the following international words. Define their meanings comparing them to the meanings of the corresponding Russian words:

activity, business, company, characteristic, design, diversification, effective, information, material, motivation, process, strategy, transport, system, typical, variability.

2. Complete the table using suitable forms:

3. Translate English words and phrases in column A using Russian words and phrases from column B:

4. Observe the words and phrases from the text “Inventory Management”:

5. Read and translate the text:

Inventory Management

Inventory management is primarily about specifying the size and placement of stocked goods. Balancing the various tasks of inventory management means paying attention to three key aspects of any inventory. The first aspect has to do with time. This means understanding how long it takes for a supplier to process an order and execute a delivery. A solid understanding of how long it will take for those materials to transfer out of the inventory should be established. Knowing these two important lead times makes it possible to know when to place an order and how many units must be ordered to keep production running smoothly. Calculating what is known as buffer stock is also a key to effective inventory management. Tracking materials as they are used to create finished goods also helps to identify the need to adjust ordering amounts before the raw materials inventory gets dangerously low. Finally, inventory management has to do with keeping accurate records of finished goods that are ready for shipment. All operations have to hold levels of inventories. The typical reasons for this are: to allow for demands that are larger than expected, to allow for deliveries that are delayed or too small, to avoid delays in passing products to customers, to take advantage of price discounts, to buy items when the price is low and expected to rise, to make full loads and reduce transport costs, to provide cover for emergencies. There are problems with holding inventories: storage costs, interest is tie up99
  зд. замораживать, приостанавливать


[Закрыть] – therefore, a loss on capital, obsolete1010
  зд. товар с истекающим сроком годности


[Закрыть] stock, less money is available for the business, prices fall on held items. Management wisdom between 1950s – 1980s was to own the whole supplychain.

Reasons for vertical integration were the need for control (cost, assurance of delivery, quality) within the chain and possibility of diversification of business activities. There was a commonly believe that “the bigger we are, the better we are” – bigger on the balance sheet “Asset”1111
  зд. актив баланса


[Закрыть]. Nowadays this strategy is changing. Western firms began to understand how Japanese companies manage buyers-suppliers relationship. “Nowhere has the contrast between Western and Japanese manufacturing been more evident than in materials – or inventory – management.” Inventory management has become the indication of world class practices. It is a key parameter to assess the capabilities of management.

The role of inventory management is supplying goods to its customers, when suitable products are available at an acceptable price within reasonable timescale.

Objectives for inventory control are customer service, inventory cost and operating cost. The most profitable policy is not to optimize one of these at the expense of the others.

Managing inventory: the purpose of controlling the inventory is to drive the stocks toward their proper level which is determined by the characteristics of supply and demand patterns. The major factors are supply lead time, average demand rate, variability of demand, supply frequency, customer delivery time allowed.

There are also practical considerations such as: reliability of the supplier, criticality of the item, availability of item from other sources.

Just in Time Management: The Just-In-Time (JIT) inventory system is having the right goods/products, at the right time, at the right place, and in the exact amount without the safety net of excessive inventory. It overcomes the need for storing large volumes of stock ‘Just-In-Case’ they are needed. It requires setting up a contract with a logistics provider (JIT company) to store and deliver equipment as and when needed. JIT is the logical aim of tight inventory control, effective process planning and plant design, workforce motivation, cost reduction; logistics and even material require planning. JIT works as pull system whereas conventional stock control and material require planning (MRP) are essentially push system. Move to a true JIT requires changing of attitude: “We are doing alright, don’t risk it” has to be replaced “What we need to do and how do we make it happen?” The advantages of JIT are inventory investment, “supply to order” instead of “provision for stock”, less slow moving stock, better flexibility, simplified administration, waste elimination. Three main factors that determine safety stock are variability of demand, reliability of supply, and dependability of transport. One of the means through which JIT can be achieved is Kanban system (Kanban means “card” in Japanese). It is a concept related to lean and just-in-time (JIT) production. It is an information tool developed initially by the engineer Taiichi Ohno at Toyota. The Kanban is a card (or label) fastened to a specific item being manufactured (finished or semi finished product) that tells a workstation the quantity to be delivered to the workstation located just downstream. It is a scheduling system that tells you what to produce, when to produce it, and how much to produce.

6. Give English equivalents for the words and phrases given below:

владеть активами; выписывание счетов; гарантийная поставка, долгосрочные отношения; заготовка запаса; запись заказов; материальные средства; надежность поставщика; полная загрузка, поставка под заказ; производство и упаковка; резервный запас; розничный торговец; сторона-подрядчик; совместное субподрядная организация; стоимость запасов; уровень материальных запасов; устранение отходов; хранимые товары; эксплуатационные расходы.

7. Complete the sentences using words and expressions given below:

price; stocks; availability; quantity; timescale; manufactured; control; inventory; loads; material; demand; cost; supplying; delays; levels; reliability

The reasons for holding .........¹of inventories are avoiding .........² in passing products to customers, taking advantage of .......³ discounts, making full .......⁴ and reduce transport costs.

The role of inventory management is .........⁵ goods to its customers, when suitable products are available at an acceptable price within reasonable............⁶.

The purpose of controlling the .........⁷ is to drive the .......⁸ toward their proper level which is determined by the characteristics of supply and .........⁹ patterns.

“Just-In-Time” is the aim of tight inventory.........¹⁰, effective process planning and plant design, workforce motivation, .........¹¹ reduction, logistics and ........¹² require planning.

The practical considerations of managing inventory are ..........¹³ of the supplier, criticality of the item, .........¹⁴ of item from other sources.

Kanban, a scheduling system, a label fastened to a specific item being ............¹⁵ that tells a workstation the .........¹⁶ to be delivered to the workstation.

8. Answer the questions:

1. What are the reasons for holding the level of inventories?

2. What was inventory management focused on in the 1950-80s?

3. Why were the reasons for vertical integration?

4. How has the way of thinking on inventory management nowadays changed comparing to that one in the past?

5. What is the role of inventory management?

6. What is the most profitable policy in the inventory control?

7. What is the purpose for inventory control?

8. Why is it necessary to hold the levels of inventories? Name the reasons for it.

9. What was inventory management focused on in the 1950s-1980s years?

10. Why were the reasons for vertical integration?

11. What is the role of inventory management?

12. What is the most profitable policy in the inventory control?

13. What is the purpose of controlling the inventory?

14. Name the practical considerations of controlling the inventory.

15. How can you describe Just-In-Time principle?

16. JIT is the logical aim of many things. Enumerate them.

17. What does push-pull system mean?

18. What kind of attitude from the part of the firm management is necessary in order to implement JIT system?

19. What does “Kanban” mean?

9. Translate the sentences using the text “Inventory Management”:

1. Канбан – система организации производства и снабжения, позволяющая осуществлять принцип «точно в срок».

2. Оперативное управление материальными запасами исходит из особенностей их потребления.

3. Цель контроля материальными запасами – привести их к должному уровню, который определяется параметрами поставки и моделями спроса.

4. «Точно к сроку» – это тянущая система, тогда как традиционный контроль материальными запасами и планирование спроса на материалы – толкающая система.

5. Основные причины поддержания уровня материальных запасов – это преимущество покупки товаров по сниженным ценам, выполнение полных загрузок, сокращение транспортных расходов, страхование несчастных случаев.

10. Choose the most appropriate verb (See Language Notes):

In order to be successful we have to/must hold levels of inventories.

Logistics managers must/should avoid delays in passing products to customers.

The management group is told that they must/have to develop strategic long-term relationships with this freight forwarder.

All production makers mustn’t/should think “We are doing alright, don’t risk it”.

All employees should/must drive the stocks toward their proper level which is determined by the characteristics of supply and demand patterns.

If you want a tight inventory control, effective process planning and plant design, workforce motivation and cost reduction you must/should implement Just-In-Time Management.

The manager told his assistant “You should/must learn how to use Kanban system”.

We agree with our partners that we have to/should control the supply chain and diversify business activities.

When striving for safety stock, you should/must keep in mind variability of demand, reliability of supply and dependability of transport.

We can’t rely on our old supplier. We mustn’t/have to change the partner.

Retell the text “Inventory management” according to the plan:

A. Main aspects in inventory management.

B. The importance of inventory management.

C. Objectives of inventory control.

D. Just in Time Stock replenishment.

E. Kanban system.

SITUATION PRACTICE

Make the dialogue about necessity of Inventory management:

Useful language: Making a suggestion. Expressing doubt:

We should sell out as soon as possible. So, the next thing to do is…

Why don’t we sell out? What we’ve got to do now is… I am worried about the store’s location. I totally disagree. I’m not sure about that. The solution, then, is to keep the store going.