Logistics
1. What does the term logistics relate to?
It relates to the process of planning, implementing and controlling the flow of goods and services from the point of
origin to the point of consumption. It also refers to the practical issues surrounding transportation, warehousing and
stock management.
2. Who benefits most from the process of logistics? Why?
The manufacturers and retailers, because they no longer hold large stocks of raw materials, components or finished
products but they can instead rely on their suppliers’ ability to meet their needs when required. This has contribute to
reduce physical wastage and a reduction in the amount of capital tied up in stock.
3. What are the effects of globalisation on the distribution industry?
It has led to the creation of large logistics companies with worldwide operations. As a result, transport time and costs
have also been reduced.
4. Describe the logistic processes in your own words.
They result in getting: the right item, in the right quantity, at the right time, to the right place, at the right price, in the
right condition, to the right customer.
Transport
5. Why is transport essential in a business transaction?
Because modern economic systems are dependent on the efficient movement of goods, services and people. Fast, safe
and cost-efficient transport systems are extremely important for international trade and are a major factor in the
choice of business location.
6. How do large companies distribute their goods?
They normally have their own distribution departments and transport to deal with the distribution of their goods.
7. What do forwarding agents do? What sort of firms use their services?
They take care of all the operations involved in packing, insuring and importing goods. They are used by medium-sized
and smaller firms.
8. What factors should be taken into consideration when choosing a means of transport?
The factors included are: the size, weight and quality of the goods, how urgently the goods are required, the distance
they have to travel, the cost involved. Other factors are: the form of packaging (depending on whether they are sent by
land, air or water), insurance costs (depending on the amount of risk involved).
9. What is intermodal carriage? What is its advantage?
It is a form of transport that has enabled more integration between the different modes of transport reducing
transport time and costs.
10. What does it mean that road, railway and air transport have adapted to make containers a ‘unit of intermodal transport’?
It means that goods are packed into containers and they can be transferred easily from trucks or trains to planes and
ships.
11. What is the most common mean of transport for freight in the EU? What are the negative aspects of it?
It is the road. It has led to increasing the congestion and fuel consumption, which in turn have increased the level of
pollution.
12. How important is sea transport in the EU? Can you name any important port in Europe?
It is very important, in fact over one fifth of the goods loaded and unloaded worldwide are handled in EU28 ports. The
largest port in Europe is The Port of Rotterdam, in Netherlands.
13. Why is transport by road the most frequent form of land transport? What technologies have improved road transport?
Because it is flexible (it means that it is not subject to a timetable and it can offer door-to-door service), cheaper and
faster than rail transport (and can reach places where others forms of transport may find inaccessible). It has been
improved by modern technology: computers and cellular phones can be used to map trips and multi-drop routes,
which will prevent lorries returning to base without a load.
14. What are pipelines used for? Are they present in Italy?
They are used for transporting oil, gas, petro-chemicals and even some solids. They are present in Italy and are used
only for the 4.6% of Italian domestic freight.
15. When is transport by train used?
It is used for moving bulk freight over long distances and urgently required or dangerous items.
16. What is the main document in transport by road or rail?
