Translate the following sentences into Russian. Try not to look up any words, but work from memory.

II. Reading Comprehension

First skim the following text. You will probably come across a number of words you don’t know. Don’t stop to look up these words, but try to understand the main points of the text. Then read it again very carefully. Try to grasp both the central idea and the details. Use a dictionary if necessary.

Selection of Carrier and Routing

Normally, the buyer will wish to specify how purchased items are to be shipped; this is the buyer’s legal right if the purchase has been made under any of the FOB origin terms.

As one would expect, buyers are most concerned that the vendor (carrier) meet its delivery promises (deliver on schedule) and provide the movement service without damaging the goods. Recent surveys conducted by Purchasing World indicate that the following 15 factors are considered important by the buyer, in descending order of priority: (1) on-time deliveries, (2) care in handling, (3) time in transit, (4) rates, (5) shipment tracing, (6) insurance coverage, (7) door-to-door deliveries, (8) claims record, (9) regular schedules, (10) shipment security, (11) through routing, (12) geographic coverage, (13) types of equipment, (14) consolidating / breaking capabilities, and (15) intermodal capabilities.

The first step is to determine the mode of transport, for example, rail, truck, air, water, and so on, which will best meet the transport requirement. Next, a decision must be made on a specific carrier and the specific routing of the shipment. This information should be a part of the purchase order. The buyer then may wish to keep track of the freight movement to assure that it is going as planned.

The factors to be considered in selection of mode of shipment, carrier, and routing include:

Required Delivery Time. The required date for material receipt may make the selection of mode of shipment quite simple. If two-day delivery from a distant point is needed, the only viable alternative probably is air shipment. If a longer time is available, other modes can be considered.

Reliability and Service Quality. While two carriers may offer freight service between the same points, the reliability and dependability may differ greatly. One carrier may: (1) be more attentive to customer needs; (2) be more dependable in living up to its commitments; (3) incur less damage, overall, to merchandise shipped; and (4) in general be the best freight vendor. The buyer’s past experience is the best indicator of service quality, which the logistician should take into account.

Available Services. If the item to be shipped is large and bulky, this may dictate a particular mode of transportation. Special container requirements may indicate only certain carriers who have the unique equipment to handle the job.

Shipment Size. Items of small size and bulk can be moved by air freight forwarders. Larger shipments probably can be more economically moved by rail or truck.

Possibility of Damage. Certain items, such as fine china or electronics equipment, by their nature have a high risk of damage in shipment. In this case, the logistician may select a mode and carrier by which the shipment can come straight through to its destination, with no transfers at distribution points to another carrier. It is part of the buyer’s responsibility to insure that the packaging of goods is appropriate for both the contents and mode of transport.

Cost of the Transport Service. The logistician should select the mode, carrier, and routing that will provide for the safe movement of goods, within the required time, at lowest total transport cost. This requires a thorough knowledge of freight classifications and tariffs. Also, the logisticians may make certain trade-offs in purchasing transportation, just as are made in selection of vendors for other purchases.

Carrier Financial Situation. If any volume of freight is moved, some damages will be incurred, resulting in claims against the carrier. Should the carrier get into financial difficulty, or even become insolvent, collection on claims becomes a problem. Therefore, the logistician should avoid those carriers who are on the margin financially.

Developing a transportation strategy

The changes in the transportation system and alternatives have been dramatic over the past several years. From a rather routine type of buying, it has moved into an era where the same principles of effective purchasing can and should be applied. Development of a transportation strategy should include:

Value analysis of alternatives: A value analysis may lower cost transport arrangements.

Price analysis: Rates vary substantially and decisions should be made only after consideration of all possibilities.

Consolidate freight, where possible: Volume discounts may reduce transport costs substantially.

Analyze and evaluate vendors: Carrier selection and evaluation systems can provide data needed for better decision making.

Reassess the possibilities of using different transport modes. This would include transport modes, such as private trucking and intermodal transportation, for example, piggybacking. The saving often are substantial.

Develop closer relationship with selected carriers: Data which enable better planning of transport requirements should be interchanged.