Category Archives: Engliah for Logistics

English for Logistics, Dictionary of logistics and Books on Logistics Management

Factory Gate Pricing (FGP)

Factory Gate Pricing (FGP) is an approach to purchasing goods, under which (low) ex-works purchasing prices are agreed for products, and the buyer is responsible for arranging the transportation of the product from the supplier to the delivery points. Typically, the customer is also responsible for insuring the products against damage during transit.

FGP requires and leverages efficient transport systems of (large) buyers (alternately a large 3PL can also be used). This is why Factory Gate Pricing is popular in retail and automotive environments. Big retailers and car assemblers can combine primary Less Than Truckloads shipments from several suppliers into Full Truck Loads. Such primary distribution can even be combined with secondary distribution (shipments from distribution centers or assembly plants to retail outlets). This combination is called “Backhauling“.

The main benefits of Factory Gate Pricing are:

  • Lower distribution costs (through efficient combined transportations, better control and coordination, centralized information).
  • Increased supply chain visibility for retailers.
  • Enables lower inventory levels and improved availability (Just-in-time, Efficient Consumer Response).
  • Vertical Integration.
  • Increases barriers to entry for new entrants through being more efficient.
  • Decreases the bargaining power of suppliers through decomposing the product price.
  • Transport Economies of Scale through backhauling. Better Capacity Utilization.
  • Lower prices for the end consumer.
  • Environmental benefits through lower emissions of full trucks.

Just as Vendor Managed Inventory, the Factory Gate Pricing concepts is centralizing the responsibility for stock levels to reduce supply chain costs and realize lower prices for end consumers.

Factory pricing is also referred to as supplier collection or ex-works pricing.



English for Logistics Services

Logistics uses lots of acronyms. How many do you know? Test your-self by writing these ones out.

  • FCL  =                                   Full container Load
  • 3PL  =                                   Third Party Logistics
  • HGV  =                                 Heavy Goods Vehicle
  • DC   =                                    Distribution Center
  • LCL  =                                   Less than Container Load
  • EDI  =                                   Electronic Data Interchange
  • VAS  =                                  Value Added Service
  • RFID =                                  Radio Frequency Identification
  • ISO  =                                    International Standard Organization
  • GPS  =                                   Global Positioning System

Exercise 1.

Match the following words (1-8) with their definitions (a-h) below:

  1. transshipment
  2. break-bulk
  3. ordrer picking
  4. reverse logistics
  5. tracking and tracing
  6. warehousing
  7. collection

a. direct flow of goods from recipt at warehouse to shipping,  bypassing storage

b. collecting and handling of used or damaged goods or of resusable transit equipment

c. loading goodes from one means of carriage onto another

d. selecting and assembling items from  stock for shipments

e. packing goods in small sepratable units

f. picking of goods at a named place

g. receiving and storing goods

h. locating items in transit

Exercise 2.

Look at these from exercise and use your dictionary (if necessary) to complete the table. As these are the words wich are regularly used in English Language in Logistics Section of Business.

        Verb                                                               Noun

1.    Receive                                                           ??

2.   ??                                                                       equipment

3.   Carry                                                               ??

4.   ??                                                                      assembly

5.   ??                                                                      location

Exercise 3.

You have to download this vedio primarily, as we are in progress to help you more in Learning.

so, copythe link and paste it to another browser window or tab…

Ovserve the video where three logisctics providers presenting their services. Complete the table provided in the video.

Exercise 4.

Ovserve the video where three logisctics providers presenting their services. Complete the sentences provided in the video.

Exercise 5.

Ovserve the video where three logisctics providers presenting their services. Complete the sentences with the words provided in the video.

When describing a company’s services or  portfolio, we often use the following expressions:

We can offer you a wide range of …

we can provide (you with) customized/tailor-made logistics solutions for …

we specialize in …

As a specialist for/in … we can …

with our many years of experience …

we have experience and expertise in providing …

our team will be happy to handle/assist you …

With our dedicated team of logistics experts we can …

Exercise 6.

Complete the list with your own company’s services. Then present it to your partner using pharases from this unit.

1.  range of products or services     ___ ___ ___

2.  Specialist in                                    ___ ___ ___

3.  experience                                       ___ ___ ___

4.  extra services for customers      ___ ___ ____

Exercise 7.

Now, Present the company’s services to your partner. Use phrases from this unit.

Exercise 8.

Read the following text from a logistics company magazine about new trends in third-party logistics. Then label the paragraphs with the correct headings from the list.



Exercise 9

Now, say which of these statements are true or false

in the past, companies used to outsource only segments of their logistics operations.      _ _

Manufacturers found out that outsourcing to 3pl providers is not efficient.                              _ _

In the past few years many 3PL providers have increased their profit margins.                     _ _

Customers today are demanding more complex logistics solutions.                                       _ _

Super-3PLs provide comprehensive solutions to logistics problems.                                      _ _

Exercise 10

Match the words (1-6) from the text with correct definition (a-f).

  1. Outsourcing
  2. comprehensive
  3. consolidation
  4. requirements
  5. demand
  6. competition

a. including a wide range of services.

b. details of what is expected and needed

c. the need for particular goods or services

d. companies trying to sell the same or similar products to customers

e. the grouping of small shipments into one container.

f. contracting functions out to third-party providers

Exercise 1

Look at the three website advertisements for value added services. Then complete the tables:





Exercise 12

Now listen to two short presentation about online logistics services. Then say which of the statements are true or false.

Express Logistics Online Shipping:

1.  … helps you book pick-price and track shipments.                            _ _

2.  … you can log on by selecting your country                                       _ _

3.  … you can check shipment records for up to 60 days.                     _ _

Inercargo E-Shipping

4.  … allows you to make price enquiries                                                   _ _

5.  … you can cancel orders.                                                                          _ _

6.  … you can download pdf documents.                                                    _ _

Explaining Online Services

When describing online functions or tools, you can use the following phrases and expressions:

The price request tool allows you to obtain prices for shipments.

E-Shipping helps you prepare/print/track/select …. online .

To …….. (just) sign up/register for/log on to ….

For price requests, please use …

To access shipment details, Click …


Exercise 13.

Match the beginnings of the sentences (1-6) with the endings (a-f) to make sentences from the recording.

  1. with Quick Shipping you can find
  2. This online tool allows you
  3. To use QOS, simply log on
  4. After registering with E-Shipping, you can make
  5. Yor can also
  6. With a mouse click you can also
  • to plan shipments, book collections and delivers.
  • price requests, schedule transport, and obtain real-time shipment information.
  • track pick-ups and deliveries.
  • download commercial documents in pdf format.
  • by selling your town or region from the drop-down menu on the left.
  • the right service to suit your shipping needs


Exercise 14.

Three People describes how IT has changed their jobs. Complete their statements with words from the box.

1 Comment

Posted by on August 18, 2011 in Engliah for Logistics


Activity-based modelling

Concept used to ‘test’ a variety of alternative activity strategies using varying quantitative information.



Active inventory

An inventory from which items are currently being drawn or will be drawn within a short space of time.




Model designation for Mercedes medium-weight truck range.


Act of Parliament

Document setting out Parliamentary law following debate and voting on a Bill by both Houses of Parliament (ie the Commons and the Lords) which then receives the Royal Assent. Acts are enabling legislation which detail new law or give relevant government Secretaries of State powers to create subordinate legislation in the form of regulations published in Statutory Instruments or Statutory Orders.

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Posted by on August 17, 2011 in Dictionary of Logistics


Act of God

Any fortuitous act/action that could not have been prevented by any amount of human care and forethought. A term used in insurance and meaning an accident of, or caused by, nature, such as flood, storm, lightning or a combination of freak weather conditions. Many policies do not pay out in such eventualities.