Mitsubishi Motors to rejig structure

Mitsubishi Motors (MMC), the Japanese carmaker 37 per cent owned by DaimlerChrysler, will reveal significant changes to its senior and middle management structure at a shareholders' meeting on June 26.

The changes reflect underlying tensions between the company's new German managers and established Japanese executives who found it difficult adjusting to the new culture.

The restructuring will aim to weed out managers whose more traditional mentality could delay the sweeping reforms under way under the new management. Other managers are also likely to be offered early retirement.

It is understood that both MMC's chief operating officer and president want to dispense with managers at any level who remain locked into the 'length of service' mentality and have acted ahead of this month's meeting together to weed them out.

Takashi Sonobe, president, recently demonstrated his commitment to reform when he announced 60 senior staff advisers - who were of an advanced age and made a marginal contribution to the company despite generous remuneration - would be removed in the next three years.

On arrival in January, Rolf Eckrodt, chief operating officer, appointed a 'COO Team' comprising about 25 mainly non-Japanese executives from DaimlerChrysler. This team, drawn from different departments, is responsible for overseeing the implementation oft company's restructuring plan.

It is understood that some long-standing members of MMC's middle and upper management resent the presence and power of the COO Team, all of whom are under 40 years old and who are controlling the strategic direction of the company.

The tension between the COO Team and some of MMC's managers has been described as stemming from Japanese managers with a 'job for life' attitude.This is not part of German management culture.

 

Explain what is meant by delayering.

Outline the “culture conflict” that seems to exist in this business.

Examine the possible reasons why the management of MMC wish to delayer the management structure.

Discuss the possible consequences for the efficiency of the business and staff motivation of the new management structure described in the article.

 

VOCABULARY REVISION – UNIT 7

Предприниматель; магнат; вновь образованная компания; совет директоров; руководитель компании; штат предприятия; отдел кадров; увольнять; сокращение среднего звена управления; выходное пособие; премия; вознаграждение; компенсация; рекрутинговая фирма; компания с упрощенной структурой управления; управление кадрами; штат; отдел кадров; фонд заработной платы; менеджеры высшего звена; менеджеры среднего звена; брать на работу; служащие; рабочие; руководство кадрами; менеджеры среднего звена; увольнения, охота за головами; дополнительные льготы и привилегии; выгнать с работы; компенсация, получаемая руководством при уходе с работы; увольнение

 

 

Part 1

Unit 8

TRANSPORTATION AND LOGISTICS

 

 

UNIT 8

transportation and logistics

 

SECTION 1 GROUND, AIR AND SEA TRANSPORTATION, SHIPPING DOCUMENTS

LEAD-IN

Transportation and business logistics encompass a number of related functional areas. In its broadest sense, it can include traffic/transportation, warehousing, import/export operations, inventory control, purchasing, and customer service or sales order entry.

A truckload carrier is one that moves single shipments which fill-out the visible capacity of a trailer. They pick-up the freight at one particular shipper and deliver that freight to one particular consignee (customer or receiving location). There are a number of advantages to moving freight in truckload quantities. The two primary benefits are cost and time. A general rule in freight pricing is that the higher the weight, the lower the rate (cost) per pound. This is the result of carrier efficiencies derived from moving larger shipments. Carriers have a number of standard costs per shipment regardless of its size. They have to pick-up the freight, they have to move it from place to place, they have to deliver it, they have to generate a freight bill, and they have to collect the payment. This is characteristic of every shipment.

A transportation broker is a company that generally owns no trucks of their own. They solicit shipments from various shippers and mate them up with owner-operators looking for freight. An owner-operator is an individual who owns his own truck. The broker is paid for his efforts in matching-up the load with a truck, billing for the freight charges and collecting the revenue. The owner-operator is paid for the actual movement of the freight. It is a beneficial relationship for both parties. It is also a good economical means of moving freight for the shipper.

There are three primary documents used in a domestic truck shipment. These are the bill of lading (B/L), the carrier freight bill and the delivery receipt (D/R).

The bill of lading serves three primary purposes: a receipt from the carrier to the shipper for the goods received for transportation; a contract of carriage; a presumption of title to the goods.

The carrier freight bill is an invoice presented by the carrier to either the shipper or the consignee as a demand for payment for services rendered.

The delivery receipt is a document, issued by the carrier, which the consignee signs as a proof of receipt. It is also known as a proof of delivery (POD).

 

Air transportation is a completely different thing than truck freight. If you are shipping something by air freight, then there is obviously a critical time factor involved, otherwise you would not be willing to incur the additional cost.

Cargo airlines move freight directly for shippers and they also offer cargo space to freight forwarders and integrators.

Freight forwarders serve as an intermediary between the airlines and the shipping public. They buy large blocks of space on various airlines, called pallet positions, to various locations.

The air waybill is the air freight industry’s equivalent of the trucking industry’s bill of lading. It serves the same general purpose and contains essentially the same information.

 

Although relatively slow, modern sea transport is a highly effective method of transporting large quantities of non-perishable goods. Transport by water is significantly less costly than transport by air for trans-continental shipping. Ship transport is done on ships and other vessels. These can be distinguished by propulsion, size or cargo type.

On the one hand, all cargo ships are divided into two types: dry cargo ships and tankers. On the other hand, cargo ships may be divided into universal ships designed to carry principal different types of cargo and specialized ships designed to carry one type of cargo. Such specialized ships as bulkers (bulk carriers), timber-carriers, reefer ships, tankers have long been known.

In the past two decades three trends in specialized ship design have emerged. One is cargo-carriers with cargo handling equipment on board for special purposes. The second is roll-on/roll-off ships, in which bow and stern doors and adjustable steel ramps permit vehicles to drive on board and drive off again, requiring only minimum dock facilities. The third trend is the container ship. The use of containers for cargoes has encouraged the design of ships specifically to carry containers.

Containerization means the consolidation of goods of single or mixed commodity into a freight container which may be closed or open. A container is designed to be handled mechanically throughout the transit. To support container ship operation a great deal of capital has been invested in depots, road and roll vehicles, ships, containers and port terminals.

 

VOCABULARY

logistics	-логистика: наука о планировании, контроле и управлении транспортными, складскими и прочими активами, совершаемыми в процессе доведения сырья и материалов до предприятия, а готовой продукции до потребителя, передача, хранение и обработка соответствующей информации
truckload carrier	- грузовой перевозчик
shipment	- груз; партия товара; перевозка, поставка (товаров)
freight	- груз, фрахт; стоимость перевозки
shipper	- грузоотправитель; товар, удобный для перевозки
consignee consignor	- грузополучатель, консигнатор - грузоотправитель
freight bill	- счет за провоз; счет за фрахт
collect payment	- взимать плату
transportation broker	- транспортный брокер; оператор
owner-operator	- оператор-перевозчик (как правило, собственник транспортных средств)
freight charges	- грузовой тариф; плата за перевозку груза
actual movement of the freight	- фактическое передвижение груза
bill of lading	- накладная, коносамент
carrier freight bill	- счет за перевозку груза
delivery receipt	- расписка в получении
air transportation	- авиаперевозка
cargo airlines	- грузовые авиалинии
integrated carriers	- интегрированные перевозчики: перевозчики, в распоряжении которых имеется более одного вида транспорта
freight forwarders	- агентство по отправке грузов; грузовое транспортно-экспедиционное агентство
pallet	- паллет, поддон
air waybill	- авиагрузовая накладная
dry cargo ships	- сухогруз
tanker	- танкер, нефтеналивное судно
universal ship	- универсальное судно
bulker (bulk carrier)	- балктанкер; балкер; сухогруз (судно для перевозки массовых, навалочных, наливных или насыпных грузов)
timber-carrier	- лесовоз
reefer ship	- рефрижераторное судно
roll-on/roll-off ships	- трейлер, судно с горизонтальной погрузкой (выгрузкой)
goods of single or mixed commodity	- товары одной или нескольких разновидностей

COMPREHENSION QUESTIONS:

1) What does the notion “business logistics” encompass?

2) What are the responsibilities of a carrier in a truck shipment?

3) Why is the relationship between a transportation broker and an owner-operator mutually beneficial?

4) What documents are used in a domestic truck shipment?

5) What purposes does the bill of lading serve?

6) Who is the carrier freight bill presented to?

7) What is POD?

8) What are the functions of freight forwarders?

9) What types are all cargo ships divided into?

VOCABULARY PRACTICE

Actually, logistics has its origin in the military. From that perspective, it refers to the movements of troops, equipment and supplies from one location to another.

In many companies the logistics department will typically include the areas of traffic, warehousing and export/import operations.

The terms “ shipper ” and “ consignor ” are interchangeable in transportation lingvo. This is the company, or person, who gives the freight to the carrier for shipment. The recipient of the freight, or customer, is typically referred to as the “ consignee ”.

If the freight is damaged at the time of delivery, you should note on the delivery receipt that the goods are damaged.

Integrated carriers function as both an airline and a freight forwarder. Generally, they own a smaller number of airplanes than an exclusive air carrier, and so, they must make use of the commercial airlines and other all cargo airlines for the volume they cannot handle with their own equipment.

The broker bills the shipper for the freight, then pays the owner-operator a percentage of the revenue for the transportation service provided.

Delivery charges (commonly referred to as freight) are based on the size and weight of the order as well as its' destination.

The future of container shipping was the topic discussed by a number of experts in London.

According to the estimates more than two thirds of the global general cargo trade moves in containers.

 

 

TEXTS TO TRANSLATE:

76. The physical internet