Less 1 Supply Chain Management
1. SCM: the integration of key business processes from end user through original suppliers that
provides products, services, and information that add value for customers and other
2. Logistics is that part of the supply chain process that plans, implements, and controls the
efficient, effective flow and storage of goods, services, and related information from the
point-of-origin to the point-of-consumption in order to meet customers’ requirements
3. The SCM framework consists of three closely interrelated elements the SCM components
(1) The supply chain network structure: who are the key supply chain members with whom
to link processes?
(2)The supply chain business processes: what processes should be linked with each of these key supply chain members?
(3)The SCM components: what level of integration and management should be applied for each process link?
Lesson 2 Logistics Management
1. Four conditions， the Internet B2B Economy; reverse Logistics; Real-time Logistics Event
Management; Technology Solutions Provide Visibility
Reverse logistics，The management of returned products to distributors, manufacturers or retailers
Real-time logistics event management: The need for accurate and timely management of
information in order to maintain on-time deliveries, reduce inventory levels and ensure that the right product is in the right place at the right time
Lesson 3 Ocean Shipping
1. Ship types；according to function？
1) General cargo ship : (1)conventional cargo ship (2)multi-purpose general cargo ship
(3) Specialized dry cargo ship for the carriage of lumber, vehicle (4) refrigerator ship
2) Container ship : (1)Cellular full container ship (2)Semi-container ship (3)roll on/off
container ship (4)Lift on/off container ship
3) Lash-lighter aboard ship, also termed barge carrying vessel
4) Tanker: (1)Oil tanker(2) Tanker for liquefied gas including petroleum gas and natural
gas(3) Chemical tanker for the carriage of liquid chemical such as ammonia (4)
5) Combined carrier:(1)ore and oil carrier (2)ore and bulk carrier (3)ore, bulk and oil
2. Type of ocean shipping service :one is as liners, the other being as trampers
；1？Liners refer to ships playing along fixed routes on regular schedule, principally engaged in carrying general cargo in relatively small shipments , limited volumes and other manufactured products along predetermined routes.
Feature: A. Most call along the route and a sailing in time at the port for loading and discharging
B. better technical equipment on board ship C. Feasibility of sending small cargo
；2？Trampers refer to ships playing on waterways without pre-set schedule or fixed routes and sailings normally depend on an availability of cargoes entrusted for carriage Trampers are divided into demise charter, time charter and voyage charter 3. Ship’s Certificate
1) Certificate of Nationality (also known as certificate of registry)
2) Certificate of Seaworthiness 3) Certificate of Classification
1) Official Log Book
2) Ship’s Log，The ship’s log gives a daily record of the activities aboard a ship, either in
port or in sailing, including loading and discharge of cargoes, weather conditions,
position of ship when on voyage, time of departure and arrival of ship, quantity of fuel
and fresh water carried on board, steps taken in the event of a casualty, etc.
3) Ship’s articles: The ship’s articles give a description of the crew and capacity in which
each member serves, length of voyage, amount of wages, time of commencement of
voyage and scale of provisions.
Lesson 7 Containerization
1. Containerization is a system of intermodal cargo transport using standard containers that
can be loaded on container ships, freight train wagons, and trucks.
the system of transportation implies moving of commodities in unit loads as opposed the conventional individual packing or break bulk cargo, by unit loads are meant the placing of cargo on pallets into containers when being carried by ship or by land conveyance of various types-lorries, wagons and others.
Containerization consist of stowing large amounts of cargo into strongly constructed, standard-sized and reusable vans at the manufacturer’s plant inland, or at the container freight station ,abbreviated to CFS, and shipping the Cargo in unit loads to its destination 2. Advantages of containerization: 1？containerization traffic is far more efficient than the
traditional modal of transportation 2) the other advantages derivable from containerized
traffic comprise minimization of losses and simpler packaging
Lesson 8 warehouse and stowage
1. Basic components of a warehouse: space、equipment、and people
2. Four basic economic benefits :consolidation、break bulk and cross dock, Processing or
postponement, and stockpiling
Lesson 9 Inventory Control
1. Inventory control？otherwise known as stock control, is about how much inventory you have
at any one time, and how you keep track of it. It applies to every item you use to produce a
product or service, from raw materials to finished goods.
2. Four main Types of inventory :(1)raw materials and components–ready to use in production
(2) work in progress-inventory of unfinished goods (3) finished goods ready for sale
(4) Consumables-for example, fuel and stationery
3. How much inventory should you keep?
(1) Keeping little or no inventory
Advantages: 1 efficient and flexible 2.lower inventory and storage costs 3.keeping up-to-date and developing new products without wasting inventory
Disadvantages: 1.meeting inventory needs can become complicated and expensive 2.you might run out of inventory if there is a hitch in the system 3.you are dependent on the efficiency of suppliers
(2) Keeping lots of inventory
Advantages: 1.easy to manage 2. Low management costs 3.you never run out
Disadvantages: 1.higher inventory, storage and insurance costs 2.certain goods might perish 3.inventory may become obsolete before it is used 4.you capital is tied up 4. Inventory control methods:
(1) Minimum inventory level—you identify a minimum inventory level, and re-order when
inventory reaches that level. This is known as the Re-order Level (ROL)
(2) Inventory review—you have regular reviews of inventory. At every review you place an order to return inventory to a predetermined level
(3) Just in time (JIT) —this aims to reduce costs by cutting inventory to minimum. Items are delivered when they are needed and used immediately. There is a risk of running out of inventory, so you need to be confident that your supplier can deliver.
Lesson 14 Bill of Lading
1. Types of Bill of Lading: received for shipment B/L; shipped/ on board B/L; straight B/L;
Blank/ open B/L; order B/L; clean B/L; foul/ unclean B/L;
It is a document signed by a carrier or the carrier’s representative and issued to a consignor
Lesson 15 Sea Protest
1. Sea protest is a declaration by the master, which gives full particulars of any heavy weather
or other accident that may have cause damage to the ship or cargo with the extent
unascertainable at the time when protest is noted
2. If the ship has encountered heavy weather or been involved in an accident on her voyage
prior to arrival at the port, it is the duty of the master to note sea protest at the first port of
call, usually within 24 hours of her arrival, at the consul of the country in which the ship is
registered or to which she belongs, if there is one there. If there is no such consul at the port,
protest should be noted before a notary public or the local port authorities Lesson 16 General Average
1. Principle of general average: that which is sacrificed for all is borne in proportion by all
interested in the adventures
A general average act can be established only where an extraordinary sacrifice or expenditure is voluntarily and reasonably made or incurred in the time of peril for the purpose of preserving the property imperiled in the common adventure.
2. Essential features of general average
(1) The common adventure must be in danger
(2) The sacrifice must be voluntary；it must be the intentional act on the part of man as
opposed to an accidental loss by maritime peril？
(3) The sacrifice or expenditure must be reasonably made or incurred
(4) The sacrifice or expenditure must be extraordinary in its nature and not one which is
necessarily involved and indispensable in performing the contract of carriage
(5) The object of the sacrifice or expenditure should only be the preservation of property
endangered in the common adventure, not for the safety of either the ship or the cargo
(6) The loss must be the direct result or the reasonable consequence of a general average
Lesson 17 Air Waybill
1. An air waybill is a very important document embodying all the necessary information for
handing and carriage of the goods from the port of origin to destination until the goods are
handed over to the consignee
2. An air waybill is different from an ocean bill of lading in that it is not a negotiable title to the
Lesson 18 Letter of Credit
1. A letter of credit is a basically document issued by a bank guaranteeing a client’s ability to
pay for goods or services.
2. Types of letter of credit :revocable L/C; irrevocable L/C; transferable L/C; confirmed L/C;
unconfirmed L/C; back-to-back L/C; standby L/C; cash advance against L/C Lesson 19 Letter of Indemnity
1. A letter of indemnity is a letter guaranteeing that contractual provisions will be met;
otherwise financial reparations will be made.
A letter of indemnity is a document which the writer issues to another party agreeing to
protect them from liability for the performance of certain acts.
2. 使用情况，(1) In the case of international transportation when a negotiable bill of lading has
been issued but is not available for surrender to the carrier when it is desired to take
delivery of the shipment, a bank may issue a letter of indemnity to the carrier to persuade
them to release the cargo
(2) On export shipments, some carriers may permit shippers to issue letter of indemnity to
carriers in order to secure from them clean bill of lading in place of foul ones, or to replace
lost original bill of lading.
Lesson 21 Cargo；Marine？ Insurance Policy
1. The principles of cargo insurance :insurable interest？utmost good faith？and indemnity.
2. The All Risks is the broadest from of coverage commonly encountered in exporting (A.R). It covers all risks of physical loss or damage from any external causes irrespective of percentage. The With Average is sometime called as the With Particular Average, and means including partial loss. It is a less inclusive from the coverage than the All Risks (W.A平安险)
The Free of Particular Average means excluding partial loss, it covers against total loss. It is
narrowed from of coverage (F.P.A水渍险)
Lesson 22 Charter party
1. The charterparty, as distinct from the bill of lading, is an instrument signed between the
shipowner and charterer on terms and conditions mutually agreed upon.
2. A charter by demise, or a demise charter, is one under which the shipowner leaves the
possession and control of the ship to the charterer for a specified period of time as mutually
3. A time charter is one under which the shipowner places the services of a ship at the disposal
of the charterer for a specified period of time, or rather hires out to the charterer the entire
shipping space of a ship or a substantial part thereof for the carriage of cargo for a fix period
4. A voyage charter is one which, as distinct from a time-charter, is contracted for the carriage
of specified goods on a defined voyage between two or more named ports or for a round or
a series of defined voyages within a specified zone