一、The basic concept of logistics：
1. Logistics is referred to the article flow, but not including the flow of the people.
2. The concept of article in logistics includes tangible goods and intangible service, such as customer service, freight agents and logistics network design.
3. Logistics documents generally refer to documentations required to complete all processes of logistics, such as contracts, bills, and notes.
4. The external logistics is about the macro economic activities, like international trade and global investment.
5. The four key procedures in the internal logistics are supply, production, distribution and reverse.
6. Supply Chain Management (SCM) is a system applied to maximize profits for all parties in the whole logistic system and other economic systems.
7. A standarized logistic system ensures better time management, location choices and distribution capacities.
8. Distribution capacity is value added in the logistic system.
9. Logistics system includes customer service, packaging, transportation, storage, distribution processing and information control.
10. Market share is the proportion of sales of a good or service provided by one company to the industry sales of such good or service.
11. The need for outsourcing creates Third Party Logistics.
12. Customer Relationship Management (CRM) is software to manage the relationship and communication between customers and suppliers.
13. Exclusive distribution refers to the fact that there is only one wholesaler or retailer who selling a product or providing a certain service.
14. A logistic model is a standardized module that is used to regulate the cargo transportation, manage logistics facilities and equipments.
15．Letter of credit (L/C) is used exclusively by the buyer. It is a letter issued by the bank employed by the buyer which authorizes the bearer (the supplier or seller) to draw a stated amount of money from the issuing bank.
16. A logistics center consists of a series of integrated logistic activities, processes, equipments, and information network.
17. Third Party Logistics refers to specialized logistics service providers that provide specific services for suppliers and customers.
18. Customized logistics refer to a logistic system or process specifically designed to cater to an individual customer’s requirements and needs.
19. Logistics alliance refers to the long term cooperation and business relationship between logistics supplier and customers.
20. Bridge transport refers to containers transported by railway using the bridges that link both ends separated by river or oceans.
21. International logistics is a result of international commercial activities, cross border investment, and importing and exporting activities.
22. Time value in logistics refers to the differences in value of the same goods at different time.
23. Location value in logistics refers to the differences in value of the same goods in different locations.
24. Logistics vehicles include ships, trucks, trains and aircrafts used in the logistics process.
25. The main differences between the traditional and modern logistic systems are the usage of containers and information technologies.
26. Integrated logistics management was the early stage of Supply Chain Management (SCM).
27. International transport is the major part in international logistics.
28. Third Party Logistics assist the execution of logistic activities.
29. Fourth Party Logistics is the planner and manager for logistics network, while Third Party Logistics is the supplier of logistics service, like transport and storage.
30. Supply Chain is the relationship between suppliers and customers. In the supply chain, suppliers rank before buyer, seller and customers.
31. Logistics activities, especially transportation have a major impact on the environment.
32. Logistics is a combination of applied technology and business management.
33. Insurance is very important to logistics because of the potential hazards and dangers in the process, such as fire, theft, handling damage and even the natural disasters.
34. Costs for logistics are similar to all other businesses and include fixed cost, variable cost and management cost.
35. The process to handle export and import with the international customs is the customs declaration.
36. Customer services link all logistics activities effectively.
37. The bank is a third party in the payment process between the buyers and sellers.
38. Letter of Credit is issued by the buyer’s bank for the importer’s benefits.
39. Industry competition leads to more efforts to improve customer service.
40. For small and medium-sized companies, logistics management is still largely decentralized.
41. Customer service is specially set up to provide services to handle and inquiry and respond to demands from customers.
42. Safety is always the top concern for warehouses to handle goods.
43. Logistics information refers general logistics knowledge, materials, images, data and documentation.
44. Most large companies locate in the Central Business District of a city.
45. In a bull market, market prices for most goods will continuously go up.
46. The payment of most global transactions is carried out in the form of letter of credit.
47. Distribution processing value is the value added by changing the length, thickness and package of goods.
48. Communication links the entire logistics process with customers.
49. Demand forecasting helps managers to use their resources effectively.
50. The process to operate and manage logistics is logistics control activities.
51. Supply logistics is the procedure in which orders are taken from customers and purchases are delivered to the warehouse belonged of the customers.
52. Distribution processing is different from a manufacturing process.
53. Distribution logistics is the delivery of process in which final products are delivered from sellers to buyers.
二、Storage function：
1. Storage is a process in which goods are stored, protected and managed.
2. Every manufacturer and wholesaler need inventory.
3. Fixed Quantity System (FQS) is more accurate and convenient than Fixed Interval System (FIS).
4. "Twenty-Eighty " analysis method is the same as ABC classification.
5. Zero Inventory is guaranteed by the full market supply and Just-In-Time (JIT).
6. Procurement is the process in which materials for production are ordered from customers.
7. Supply chain links all suppliers and customers along a system in which products and services are delivered.
8. Cycle stock is the maximum inventory based on the maximum needs.
9. Safe stock refers to minimum inventory level given the forecasted market demand.
10. The average time when the goods is moved in and out of warehouse is inventory cycle time.
11. Inventory control is the method to keep the best inventory level and position with the minimum cost to satisfy the demand.
12. When the inventory is reduced to a specific level, purchase for new parts and material will start. It is called the Order Point System.
13. Zero stock is means zero inventory.
14. Inspection is the operation to check the quantity, quality and package of the goods according to the contract and specific standards.
15. Goods that are stored in warehouses for distribution and sales are called inventory.
16. Warehouse rental represent a very significant proportion of total warehouse cost.
17. The size of warehouses are determined by the needs of the customer groups, such as their inventory level planning.
18. Commodity inspection is the process in which exported and imported goods are examined for their quantity, quality, package, place of production, safety and hygiene conditions.
19. Electronic Order System (EOS) is responsible for taking customer orders and the information sharing between companies connected to the transactions.
20. The purpose of Just-In-Time (JIT) is to meet demand instantly, with perfect quality and punctuality.
21. Goods handling may account for only 50% of the direct labor cost in warehouse and 70% in distribution center.
22. Zero stock is the best way for inventory control.
三、Transport function：
1. Liner transport has three specific components: fixed ports, fixed routes and announcing shipping time in advance.
2. Shipping by chartering is used for transporting low value goods.
3. The broker company in ocean transportation is called shipping agency.
4. Air freight costs 5 times more than transportation by trucks and 20 times more than by rail. But it is more reliable, punctual and predictable under normal operating condition.
5. Bulk container is used to load bulk cargo.
6. Cargo is freight carried by a ship, an aircraft, or another vehicle, upon the agreement for the delivery of goods.
7. Tanker container is mainly used to transport oil and gas.
8. Deadhead means a vehicle, such as an aircraft and truck that transports no passengers or freight during a single trip.
9. Back haul is the distance traveled from the delivery destination point back to the departure point.
10. Bill of Lading is a document title.
11. Ocean Bill of Lading is a receipt for goods Ioaded in the ship.
12. Shipper and carrier are two parties in a shipping contract.
13. Usually, the buyer in the trading contract is consignee.
14. Liner sails in the fixed route between fixed ports and sends sailing information in advance.
15. Brokers are agents who coordinate shippers and carriers by providing timely information about rates, routes and service capabilities.
16. TEU and FEU both are containers which are used in ocean transportation frequently.
17. Bill of Lading is the evidence of the contract of carriage between carrier and shipper.
18. Seaway Bill is different from Ocean B/L. The Iatter is negotiable but the former is not.
19. Transport agencies include air and surface freight forwarders, shippers’ associations and transport brokers.
20. Freight forwarders purchase long distance service from water, rail, air even and truck carriers.
21. International Railway Bill can be used in land bridge transport.
22. Transportation using multiple transportation means is also called combined transport.
23. NVOCC is also a carrier because it can open B/L.
24. Transportation creates location value in logistics.
25. Transport does not need to change packages of goods or stop in any place between the departure point and destination location.
26. Door-to-door delivery refers to carrier picking up the goods from the shipper’s warehouse and delivers it to consignee’s warehouse.
27. Containerization can speed up the logistics process, such as handling, loading and unloading, storing and transport.
28. Domestic intercity truck is the motor carrier service between the different cities domestically.
29. A fleet is group of vehicles or ships owned or operated as a unit.
30. Transportation is usually the biggest logistic costs for most companies.
31. Truck enjoys the great advantages in the transit time and frequency compared to other transportation means.
32. The railroad represents the biggest usage in the land transport in China.
33. There are three kinds of freight in transport: full-car load, Less-than-truck load and Container.
34. Water transport can carry the greatest amount of goods for the longest distance with the lowest cost.
35. Air transport has the distinct advantage in the terms of fast delivery and enjoy the lowest ratio of loss and damage.
36. The most economic feasible products transported by pipeline are crude oil, natural gas and refined petroleum one.
37. International transport is dominated by water carriers. It is used to transport more than 70% of the total trading volume in value and 95% by weight.
38. International transportation by trucks is limited between the joint border countries like US and Mexico or closely located WTO members like mainland China, Hong Kong and Macao.
39. Grouping small shipment into large ones is the primary method to lower cost per unit of weight in transportation.
40. Transportation decision is referred to the transportation models and carriers selected for delivery，vehicle routing, scheduling, and freight grouping.
41. Container logistics management is becoming a core strategy for large shipping company for its fast loading and unloading process, safe transportation and goods storage.
42. The primary factor to influence transport cost is distance and competition.
43. Containerization ensures quick transit between ships and other transport vehicles such as trucks and freight rail cars.
四、Logistics information management：
1. Automated warehouse must be managed by information system.
2. The application of bar code is of primary importance in the Bar Code System.
3. Bar code scanner is called bar code reader.
4. Firewall in the computer system is not a physical wall, but is a computer language to protect the network from invasion and damage.
5. Virtual logistics is the management by computer technology and Internet.
6. Data Warehousing is virtual data system in computer technology．
7. Using 13 digits, the bar code store the information of goods.
8. Global Positioning System directs the mobile equipments, like trucks, ships and aircrafts by satellite tracking.
9. The main application of E-selling is in B2B and B2C.
10. B2E refers to Business to Employee and Business to Executives.
11. In the logistics information system, EDI plays the most important role.
12. The logistics network is virtual network.
五、Distribution：
1. Delivery refers to sending goods to the destination specified by buyers and collection of the transportation costs.
2. Joint Distribution refers to delivering goods for different shippers using the same vehicle by the most economic route.
3. Distribution is one of functions in logistics, which deliver goods to customers directly according to the order in the most economic way.
4. Distribution includes logistics activities related to the sales and delivery of goods.
5. Distribution center is a short-term storage center located close to a major market to facilitate the rapid processing of orders and shipment of goods to customers.
6. The national distribution center is linked to the metropolitan’s outer expressway, providing easy access to and from key ports, roads and other distribution channels for importers.
7. The regional distribution center provides customized solution for supply chain management, warehousing and sea, air freight transport in the international logistics market.
8. The distribution centers focus on maximizing the profit impact of fulfilling customer delivery requirement and distribution processing.
六、Packaging functions：
1. Packaging performs two basic functions, marketing and delivery in logistics.
2. The purpose of sales package is for sales and convenient use.
3. In logistic and transportation process, it is very important to package the goods appropriately for protection and safety purposes.
4. Vacuum packaging is used to protect goods from deterioration or contamination, like food and medicine.
5. Palletizing refers to the process of loading goods in pallet.
6. Palletizing is to load goods onto a pallet and wrap to form a handling and loading unit.
7. The No. 1 function of packaging is to protect goods.
8. In marketing, the package also aims for promoting and advertising the attractiveness of goods to be sold.
七、Logistics facilities,logistics operation
1. The area for unloading goods in warehouse is receiving space.
2. Forklift truck is very convenient equipment for loading and unloading goods.
3. Container is a large packaging box.
4. A twenty-foot Unit is called a standard container.
5. Yard is a warehouse without roof and wall for containers storage.
6. Stereoscopic warehouse has three parts: warehouse, high store shelf and stacker.
7. Automatic Guided Vehicle (AGV) can move goods to a specific location without the help of rail.
8. Conveyor can move the solid goods fluidly.
9. Full container ship is only used for goods to be transported in container.
10. Customs broker is a company representing the customers to declare and store the goods.
11. Cargo inspection is not only to examine the goods quantity, but also quality.
12. Deconsolidation center is a logistics center where most inbound goods are in truck loads and most outbound goods are in small pieces.
13. Deliver cycle is the time between acceptance of the order and delivery of the goods.
14. Factory price does not contain the cost of freight or distribution.
15. Less-than Container is the mode which can be used to ship goods for more than one shippers and consignees.
16. The station to transfer goods from one carrier to another is gateway.
17. Boned warehouse is the place to store the goods imported or in transit, without paying duty under custom’s supervision.
18. Conveyors are used widely in the operations of warehouse and distribution center and form the basic handling device for a number of selection systems.
19. Dispatch area is the place where goods are stored and ready to be delivered.
20. Rack is the same as goods shelves which are used to place stored goods in high density area.
2l. Standardized containers are storage and transportation equipments that may load the cargo of 16 to 26 tons or in 30 to 60 cubic meters.
八、Reverse Logistics
1. Recycle logistics is the part of reverse logistics.
2. Reverse logistics is the process to handle returned goods, recycle useful materials and dispose waste goods.
3. When the non-qualified goods are returned or from buyer to seller, we call it reverse logistics.
4. Green logistics is very important to the environmental protection.
5. Scrap disposal is the part of reverse logistics.
6. Recycle logistics is the process to sort, treat and collect the valuable parts from used products.
7. Reverse logistics makes goods flow from customers to suppliers.
8. Averagely, retailers and manufacturers predict approximately 5％-10% of their merchandise will be returned.
九、Others
1. Saving or reducing expenditure in business operations is called cost control.
2. If the goods is damaged or lost in the process of logistics, the shipper may claim to carrier.
3. Tally is to count and inspect goods in logistics.
4. Handling or carrying is the operation to move the goods horizontally.
5. Loading and unloading may be the most frequent activities in logistics, but its related costs are hard to estimate.
6. Loading and unloading is the operation moving the goods by labor or equipment to the transported vehicles, storage places or other locations in the logistic process.
7. CIF and FOB are two major terms in the international trade.
8. Virtual logistics is based on logistics network, but more computerized and systematized than logistics operation.
9. MRP (Material Requirement Planning) is the management system to control the amount of material consumed and to reduce inventory in the manufacturing company.
10. ERP (Enterprise Resource Planning) is the management system to distribute all resources economically, while satisfying the demand of the market.
11. MRPll (Manufacturing Resouree Planning) is the system to control all elements, including inventory and procurement, cost and working capital, sales order and personnel level.
12. Performance monitoring system is essential to the warehouse management.
13. The advantage of crane on a forklift truck is to lift and move heavy materials, but is can be rather inflexible.
14. The revolution of information started with the introduction of the personal computer, followed by the optical fiber network, the explosion of the Internet and the World Wide Web.
15. Internet assists market development, operational planning and management decisions in the logistics industry.
16. Handling/carrying and loading/unloading are the most frequent activities in the logistics.
17. Parts and service support are components of after sales service.
18. Logistics information system can be made up by three parts: inputs by terminal, data managed by CPU, the outputs managed by optical fiber.
19. Electronic commerce (EC) is the tool to be used to make deal between the seller and buyer by Internet in a paperless environment.
20. Electronic Data Interchange (EDI) refer to a computer-to-computer information sharing of business documents in a standard format.
21. Virtual warehousing is not real logistics network but an information network based on warehouse management.
22. EDI is widely applied in the field of commerce with the legal effect.
23. Data warehouse is a consolidated database maintained separately from different organizations’ production system databases.
24. Intranet is the internal network within an organization that promotes sharing of internal company related information, using similar technology as the Internet.
25. The World Wide Web is the Internet system to allow users to browse from one Internet site to another and to inspect the information available without using complicated commands and protocols.
26. Container terminal connects sea and land, transfers container to and from ships.
27. Distribution center is a large and highly automated multi-store building destined to receive goods from various suppliers, take orders, fill them in container efficiently, deliver goods to the customer as quickly and satisfyingly as possible.
28. B2C is the Internet commerce designed for direct communications and commercial relationship between a firm and its end customer. B2B is to managed to the communication and relationship between business entities.