Unit 1: Logistics

Question 1

7 rights of logistics

Answer 1

product, customer, price, quantity, quality, place, time

Question 2

What is logistics?

Answer 2

process of planning, implementing, controlling effective and efficient flow of goods, services, information from point of origin (manufacturing plant) to point of consumption (where goods are sold to final customer, eg retailers, supermarkets, markets) conforming to customer requirements.

Question 3

9 areas of logistics

Answer 3

• purchasing
• procurement
• transportation
• maintenance
• storage
• freight forwarding
• stock control
• distribution
• inventory management

Question 4

Modes and means of transport

Answer 4

• by sea (container, ship, oil tanker, liner)
• by air (express cargo)
• by road (truck, van)
• by rail (train, block train= no cargo handling on the way)

Question 5

4 documents that are important in international trade

Answer 5

• bill of lading
• certificate of origin
• import export license
• commercial invoice

Question 6

What is the bill of lading B/L?

Answer 6

• document issued by the carrier (logistics company) to the shipper
• details shipment of merchandise and gives ownership to a party
• makes sure exporters receive payment and importers receive merchandise
• contract of carriage/ affreightment
• proof of receipt of good on board of vessel
• proof of ownership

Question 7

LCL

Answer 7

• Less than Container Load
• cargo consolidation
• many cargo owners share a container
• freight charges can be saved (transportation costs)
• managed by a freight forwarder
• security: no cargo- handling on the way
• bigger loads can be transported
• one big bill of lading and a small one for each cargo owner