Lecture 4

Question 1

What does EDI mean?

Answer 1

Electronic Data Interchange

Question 2

What is EDI?

Answer 2

An inter-organizational information system that is intended to facilitate computer-to-computer exchange of data among multiple business trading partners

Question 3

In which way do products move through the chain? (5 steps)

Answer 3

supplier -> manufacturers -> warehouses -> stores -> customers

Question 4

What is Consolidation Warehousing?

Answer 4

Small flexible shipments incoming to the warehouse and sending large, economical shipments out

Question 5

What is Cross-docking?

Answer 5

Having large economical shipments coming into the warehouse and sending small, flexible shipments out.

Question 6

True or False
Brick and mortar is a direct channel

Answer 6

True

Question 7

Which layer is an In-house shipper and what are the services they offer?

Answer 7

1PL
Services: manufacturer, retailer

“Do it yourself logistics”

Question 8

Which layer is a carrier and what are the services they offer?

Answer 8

2PL
Services: transporter

“Hire a transporter”

Question 9

Which layer is a logistic service provider (LSP) and what are the services they offer?

Answer 9

3PL
Services: brokerage, transport, freight forwarder, warehousing, storage

“Can provide all SC services”

Question 10

Which layer is a Lead Logistic Provider (LLP), Consultant and what are the services they provide?

Answer 10

4PL
Service: lead logistic provider

“Strategy and integrate several SC’s

Question 11

What does 5PL include?

Answer 11

E-commerce services

Question 12

What is the control tower for?

Answer 12

coordinating deliveries

Question 13

What are multimodal solutions?

Answer 13

a transportation solution that seeks to exploit the strengths of multiple transportation modes through physical, information, and monetary flows that are as seamless as possible.

Question 14

Which are the 3 most common incoterms?

Answer 14

EXW
DAP
DDP

Question 15

What does the incoterm EXW mean?

Answer 15

EXW → Ex Works
The buyer bears almost all costs and risks during the entire process. The only task of the seller is to ensure that the buyer has access to the goods. If the buyer has access everything becomes his responsibility (including loading the goods)
Transfer of risk from seller to buyer: in the warehouse of the seller’s office from where the goods are collected.

Question 16

What does the incoterm DAP mean?

Answer 16

DAP → Delivered at place
The seller bears the costs and risks of transporting the goods to an agreed address. The goods are classified as delivered when they have arrived at the address and are ready for unloading. Export and import responsibilities are the same as with DAT.
Transfer of risk from seller to buyer: when the goods are ready to unload at the agreed address.

Question 17

What does the incoterm DDP mean?

Answer 17

DDP → Delivered duty paid
The seller bears almost all responsibility during the entire shipping process. You bear all costs and risks of transporting the goods to the agreed address. The seller also ensures that the goods are ready for unloading, carries out export and import responsibilities, and pays any duties.
Transfer of risk from seller to buyer: when the goods are ready to unload at the agreed address.

Question 18

What does the incoterm FCA mean?

Answer 18

FCA → Free Carrier
It is the seller’s duty to deliver the goods to the buyer’s carrier at an agreed location. The seller is also obliged to clear the goods for export.
Transfer of risk from seller to buyer: When the buyer’s carrier receives the goods.

Question 19

What does the incoterm CPT mean?

Answer 19

CPT → Carriage Paid to
Same seller responsibilities as with FCA but one difference: the seller also pays the delivery costs. It is the seller’s responsibility to clear the goods for export.
Transfer of risk from seller to buyer: When the buyer receives the goods.

Question 20

What does the incoterm CIP mean?

Answer 20

CIP → Carriage and Insurance Paid to
Same seller responsibilities as CPT with one difference: the seller also pays for the insurance of the goods. The seller is only obliged to pay the minimum possible coverage, if the buyer wants more extensive insurance this must be arranged by the buyer.
Transfer of risk from seller to buyer: When the buyer’s carrier receives the goods

Question 21

What does the incoterm DAT mean?

Answer 21

DAT → Delivered at Terminal
The seller is responsible for the costs and risks of the delivery of goods to an agreed terminal. This terminal can be an airport, warehouse, road, or container depot. The seller arranges customs clearance and unloads the goods at the terminal. The buyer arranges the customs clearance and any related rights.
Transfer of risk from seller to buyer: At the terminal

Question 22

What does the incoterm FAS mean?

Answer 22

FAS → Free alongside ship
The seller bears all costs and risks until the goods are delivered next to the ship. The buyer then assumes the risk and takes care of the export clearance and import clearance.
Transfer of risk from seller to buyer: When the goods are delivered alongside the ship

Question 23

What does the incoterm FOB mean?

Answer 23

FOB → Free on Board
The seller bears all costs and risks until the goods are delivered on board the vessel. They also arrange the export clearance. The buyer bears all responsibilities once the goods are on board.
Transfer of risk from seller to buyer: when the goods are delivered on the ship

Question 24

What does the incoterm CFR mean?

Answer 24

CFR→ Cost and Freight
The seller has the same responsibilities as with FOB but also has to pay the costs of transporting the goods to the port. As with FOB, the buyer bears all responsibilities once the goods are on board.
Transfer of risk from seller to buyer: when the goods are on the ship

Question 25

What does the incoterm CIF mean?

Answer 25

CIF → Cost, Insurance and Freight
The seller has the same obligations as with CFR but also has to pay the insurance costs. As with CIP, one is only obliged to pay the minimum cover. If the buyer wants more extensive insurance, he must pay for this himself.

Question 26

What are the 4 transportation ways

Answer 26

Highway
Water
Air
Rail

Question 27

What are the different types of trucks? (3)

Answer 27

• 2 axels (max 18 tonnes)
• 3 axels (max 25-26 tonnes)
• specialist vehicles

Question 28

Truckers are not allowed to drive more than _ hours per day and must take a __ minute break after max __ hours

Answer 28

9 hours per day
45 minute break after 4.5 hours

Question 29

The pricing of air transport is sensitive to

Answer 29

Size and weight

Question 30

What is a collo/colli?

Answer 30

a package or packaging unit of goods. 17 colli on a delivery note means that the consignment exists out of 17 packaging units.

Question 31

What is an europallet?

Answer 31

a standardised pallet used across Europe and much of the rest of the world, the size is 120cm x 80cm.

Question 32

What is a container?

Answer 32

a large matel box that is 20’ or 40’ of size. A 40’ container is 2 TEU (twenty foot equivalent unit)

Question 33

What are key points for the selection of a distribution center? (6)

Answer 33

→ location near delivery points cuts transportation costs.
→ cost of transporting products from a distribution center to customers and consumers is based on fuel prices as well as driver and truck maintenance costs.
→ location with rails access to cut shipping costs on large volumes of heavy product that do not require precise delivery times
→ labour & community acceptance
→ scalable storage requirements
→ lease or buy?