MARKETLEADERBusiness EnglishNina ODriscoll and Adrian PilbeamLogistics ManagementML_LOG_CONTENT_01.indd 1 11/2/10 11:10:09Pearson Education LimitedPearson Education Limited Edinburgh Gate Harlow Essex CM20 2JE England and Associated Companies throughout the world.www.pearsonlongman.com Pearson Education Limited 2010The right of Nina ODriscoll and Adrian Pilbeam to be identifed as authors of this Work has been asserted by them in accordance with the Copyright, Designs and Patents Act 1988.All rights reserved; no part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise without the prior written permission of the Publishers. First published 2010ISBN 978-1-408-22006-1Set in Metaplus, Times & ITC CheltenhamPrinted in Slovakia by NeografaAcknowledgementsThis series was developed and written by consultants working with LTS Training and Consulting, Bath, a specialist language and intercultural training company.The authors and publishers are grateful to the following teachers who reported on earlier drafts of this material: Aukjen Bosma and Christine Thuillier.Adrian Pilbeam would like to thank the many specialists in logistics and supply-chain management from leading European companies with whom he has worked on training courses over the last fve years and from whom he has learned much about the crucial role of the supply chain in international business.We are grateful to the following for permission to reproduce copyright material:TextExtracts in Units 3, 6 and 14 from Logistics and Supply Chain Management Creating Value-Adding Networks, 3rd edition, Financial Times/Prentice Hall (Christopher, M. 2005) copyright Pearson Education Limited; Extract in Unit 10 adapted from A very tight supply chain, Financial Times, 27 March 2007 (Murray, S.), copyright Sarah Murray; Extract in Unit 17 adapted from Green supply chains: moving beyond logistics, Financial Times, 10 December 2007 (Murray, S.), copyright Sarah Murray.The Financial TimesExtract in Unit 1 adapted from Supplying a new demand, The Financial Times, 21 August 2008 (Birchall, J.), copyright Financial Times Ltd; Extract in Unit 7 adapted from Silver lining to high oil prices, The Financial Times, 30 July 2008 (De Meyer, A. and Holweg, M.), copyright Financial Times Ltd; Extract in Unit 8 adapted from Foreign makers fnd advantages on more familiar turf, The Financial Times, 8 May 2006 (Marsh, P.), copyright Financial Times Ltd; Extract in Unit 9 adapted from Moral maze for retailers reliant on developing world suppliers, The Financial Times, 2 July 2008, copyright Financial Times Ltd; Extract in Unit 11 adapted from Oil price forces P&G to rethink its distribution, The Financial Times, 27 June 2008 (Birchall, J. and Rigby, E.), copyright Financial Times Ltd; Extract in Unit 15 adapted from Inventory: RFID the price must be right, The Financial Times, 30 May 2006 (Blau, J.), copyright Financial Times Ltd; Extract in Unit 16 adapted from Jaguar Land Rover: milk run is miles better, The Financial Times, 9 October 2008 (Newing, R.), copyright Financial Times Ltd; Extract in Unit 18 adapted from Demands spread along the supply chain, The Financial Times, 7 November 2007 (Ilett, D.), copyright Financial Times Ltd.In some instances we have been unable to trace the owners of copyright material, and we would appreciate any information that would enable us to do so.PhotosThe publisher would like to thank the following for their kind permission to reproduce their photographs:(Key: b-bottom; c-centre; l-left; r-right; t-top)Alamy Images: Julio Etchart 33, Images-USA 45, Richard Levine 9, SHOUT 21, Sue Cunningham Photographic 29, Colin Underhill 65; Corbis: Louie Psihoyos 5, George Steinmetz 25; Getty Images: Mario Villafuerte 53; iStockphoto: 41, 61tr, Greenstock 49, Johannes Norpoth 69, Joe Tamassy 61tl; Jupiter Unlimited: Stockxpert 61br; Pearson Education Royalty-Free/Commissioned: Photodisc 17; Photolibrary.com: Image Source 3; Reuters: STR New 37, Bobby Yip 73; Rex Features: Francis Dean 13, Alex Segre 57Every effort has been made to trace the copyright holders and we apologise in advance for any unintentional omissions. We would be pleased to insert the appropriate acknowledgement in any subsequent edition of this publication.Cover photo Getty Images: Thierry DosogneProject managed by Chris HartleyML_LOG_CONTENT_01.indd 2 11/2/10 11:10:103The supply chain1The importance of an effcient supply chain42Using the supply chain to increase sales83The global supply chain12Relations with suppliers4The importance of good supplier relationships165Minimising risks with suppliers206Managing unexpected events and disasters24Global sourcing and manufacturing7Developments in global manufacturing and sourcing288Outsourcing production to China329Ethical sourcing36Transport and distribution10Transporting fresh produce4011The impact of higher energy costs4412A new distribution model48Inventory management13Managing changes in demand5214Fast-response logistics for retailing5615Using RFID for managing stock60Greening the supply chain16Reducing a companys carbon footprint6417Moving beyond logistics6818Making the supply chain greener72Check Tests76Answer key80Glossary91ContentsML_LOG_CONTENT_01.indd 3 11/2/10 11:10:10