Contents
1
Contents
Chapter 1 Introduction to Logistics ...........................................................1
1.1 Fundamentals .............................................................................................................1
1.1.1 Definition of Logistics ..................................................................................1
1.1.2 Historical Development of Logistics .............................................................2
1.1.3 Logistics Related Activities ...........................................................................4
1.1.4 Objectives of Logistics ..................................................................................6
1.1.5 7R Theory of Logistics ..................................................................................7
1.2 The Role of Logistics in the Economy and Organizations ........................................9
1.2.1 Logistics in the Economy— A Macro Perspective ........................................9
1.2.2 Logistics in the Firm — A Micro Perspective .............................................10
1.3 Logistics Industry in China ......................................................................................15
1.3.1 Current Status of the Logistics Industry in China .......................................15
1.3.2 Types of Logistics Enterprises in China ......................................................15
1.3.3 Logistics Prosperity Index ...........................................................................17
Exercises ...........................................................................................................................19
Chapter 2 Logistics Systems ..................................................................21
2.1 Transportation ..........................................................................................................21
2.1.1 Introduction to Transportation ....................................................................21
2.1.2 Modes of Transport .....................................................................................22
2.1.3 Intermodal Transportation ..........................................................................24
2.1.4 Containerization ..........................................................................................24
2.2 Warehousing .............................................................................................................27
2.2.1 Introduction to Warehouses .........................................................................27
2.2.2 Introduction to Warehousing .......................................................................29
2.2.3 Warehousing Operations .............................................................................30
2.3 Inventory ..................................................................................................................34
2.3.1 Introduction to Inventory ............................................................................34
2.3.2 Types of Inventory .......................................................................................36
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物流英语 Logistics English
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2.3.3 Inventory Management ...............................................................................37
2.4 Packaging .................................................................................................................43
2.4.1 Introduction to Packaging ............................................................................43
2.4.2 Common Packaging Materials and Determinants .......................................44
2.4.3 Packaging Marks .........................................................................................45
2.5 Handling ...................................................................................................................48
2.5.1 Introduction to Handling ............................................................................48
2.5.2 Operation Machinery ..................................................................................49
2.5.3 Material Flow Management .........................................................................50
2.6 Distribution ..............................................................................................................53
2.6.1 Distribution Channels .................................................................................53
2.6.2 Distribution Centers ....................................................................................55
2.6.3 Distribution Activities .................................................................................56
2.7 Information Technology ...........................................................................................58
2.7.1 Information Technology in a Supply Chain ................................................58
2.7.2 Order Management and Customer Service through Information System
.....................................................................................................................60
Exercises ...........................................................................................................................66
Chapter 3 Integrated Logistics Management ..........................................68
3.1 Logistics Cost Management .....................................................................................68
3.1.1 Introduction .................................................................................................68
3.1.2 Methods of Logistics Cost Management .....................................................69
3.1.3 Case Study ...................................................................................................73
3.2 Logistics Quality Management ................................................................................77
3.2.1 Introduction .................................................................................................77
3.2.2 Logistics Quality Management Approach ...................................................79
3.2.3 Case Study ...................................................................................................81
3.3 Logistics Service Management ................................................................................84
3.3.1 Introduction .................................................................................................84
3.3.2 Logistics Service Quality Evaluation ..........................................................88
3.3.3 Case Study ...................................................................................................92
Exercises ...........................................................................................................................95
Chapter 4 Supply Chain Management ....................................................98
4.1 Introduction to Supply Chain ...................................................................................98
4.1.1 What Is A Supply Chain ..............................................................................98
4.1.2 Decision Phases of A Supply Chain ..........................................................101
4.1.3 Process View of A Supply Chain ...............................................................102
4.2 Supply Chain Management Methods .....................................................................108
4.2.1 Quick Response (QR) ................................................................................108
4.2.2 Efficient Consumer Response (ECR) ........................................................110
4.2.3 Activity Based Classification (ABC) .........................................................112
4.2.4 Value Chain Analysis (VCA) .....................................................................117
4.3 Supply Chain Drivers and Obstacles .....................................................................122
4.3.1 Drivers of Supply Chain Performance .......................................................122
4.3.2 Obstacles to Achieving Strategic Fit .........................................................127
4.3.3 Case Study：Mintendo Game Girl ............................................................129
Exercises .........................................................................................................................132
Chapter 5 Business Contracts and Documents ....................................135
5.1 Business Negotiation .............................................................................................135
5.1.1 Elemental Procedures of Negotiation .......................................................135
5.1.2 Strategies of Business Negotiation ...........................................................138
5.1.3 Basic Principles of Negotiation ................................................................140
5.1.4 Business Letters: Enquiry and Quotation/Offer .......................................142
5.2 Contract ..................................................................................................................149
5.2.1 Introduction to Business Contract ............................................................149
5.2.2 Formation of A Business Contract ............................................................150
5.2.3 Sample Contract Document ......................................................................151
5.3 Payment ..................................................................................................................154
5.3.1 Payment Instruments ................................................................................154
5.3.2 Remittance and Collection ........................................................................157
5.3.3 Letter of Credit .........................................................................................160
Exercises .........................................................................................................................169
Chapter 6 International Logistics ..........................................................171
6.1 Introduction to International Logistics ...................................................................171
6.1.1 Definition of International Logistics ..........................................................171
6.1.2 Features of International Logistics ............................................................172
6.1.3 The Role of Governments in International Logistics ................................172
6.2 International Trade Terminology ...........................................................................174
6.2.1 What Are the Incoterms 2010 ....................................................................174
6.2.2 Case Study .................................................................................................176
6.3 International Cargo Transportation ........................................................................181
6.3.1 Ocean Transportation .................................................................................181
6.3.2 Air Transportation ......................................................................................187
6.3.3 Railway Transportation ..............................................................................190
物流英语 Logistics English
6.3.4 Road Transportation ..................................................................................191
6.3.5 Multimodal Transportation ........................................................................192
6.4 International Cargo Insurance ................................................................................194
6.4.1 Maritime Loss ............................................................................................194
6.4.2 Kinds of Cargo Insurance ..........................................................................196
6.4.3 Insurance Premium ....................................................................................197
6.4.4 Insurance Claim .........................................................................................198
6.4.5 Insurance Policy Document .......................................................................198
6.5 International Cargo Warehousing ..........................................................................201
6.5.1 The Role of International Warehousing .....................................................201
6.5.2 Bonded Warehouse ....................................................................................202
6.5.3 Bonded Zones and Bonded Warehouses in China .....................................204
6.6 Customs and Customs Clearance ...........................................................................207
6.6.1 Introduction ...............................................................................................207
6.6.2 Customs Declaration ..................................................................................207
6.6.3 Customs Clearance Process for Bonded Goods ........................................208
6.6.4 Import/Export Duty ...................................................................................210
6.6.5 Filling in a Declaration Form ....................................................................211
6.7 International Cargo Inspection ...............................................................................215
6.7.1 What Is Inspection .....................................................................................215
6.7.2 Inspection Time and Places .......................................................................216
6.7.3 Inspection Standards ..................................................................................216
6.7.4 Inspection Institutions ................................................................................217
6.7.5 Inspection Certificates ...............................................................................217
6.8 International Logistics Services .............................................................................221
6.8.1 International Freight Forwarding ...............................................................221
6.8.2 International Shipping Agency ..................................................................224
6.8.3 International Express .................................................................................226
Exercises .........................................................................................................................232
Chapter 7 New Trends of Logistics .......................................................234
7.1 Green Logistics ......................................................................................................234
7.1.1 Introduction to Green Logistics .................................................................234
7.1.2 Environmental Issues in Logistics .............................................................235
7.1.3 Development and Application of Green Logistics.....................................237
7.1.4 The Plan for Green Logistics ....................................................................238
7.1.5 How to Implement Green Logistics in A Greener Supply Chain .................240
7.2 Third-Party Logistics(3PL) ....................................................................................244
7.2.1 Introduction to 3PL ....................................................................................244
7.2.2 3PL Providers ............................................................................................246
7.2.3 Future Trend of 3PL Industry ....................................................................250
7.3 Reverse Logistics ...................................................................................................254
7.3.1 Introduction to Reverse Logistics ..............................................................254
7.3.2 The Reverse Logistics Motivators .............................................................258
7.3.3 Reverse Logistics Opportunities and Challenges ......................................260
Exercises .........................................................................................................................263
References ..............................................................................................266
Since there are some differences among the definitions， to avoid potential misunderstanding
of the meaning of logistics， this book adopts the authoritative definition provided by the
Council of Supply Chain Management Professionals(CSCMP， formerly known as Council of
Logistics Management)， the preeminent worldwide professional association dedicated to the
advancement and dissemination of research and knowledge on supply chain management. The
definition is as follows:
“Logistics is the process of planning， implementing， and controlling the efficient，
effective flow and storage of goods， services， and related information from point of origin to
point of consumption for the purpose of conforming to customer requirements.” Note that
this definition includes inbound， outbound， internal， and external movements， and return of
materials for environmental purposes.
—Council of Supply Chain Management Professionals
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