Sup­ply Chain Por­tal — Κατάλογος Εταιρειών Εφοδιαστικής Αλυσίδας

Logis­tics, 3PL, Διανομές, Μεταφορές, Αποθήκευση, Εξοπλισμός, Υπηρεσίες

Logis­tics, Freight For­ward­ing & Sup­ply Chain Glossary


A

Acces­so­r­ial Charges: A carrier’s charge for acces­so­r­ial ser­vices such as load­ing, unload­ing, pickup, and delivery.

Also see: Upcharges

Acces­so­r­ial Fee: See Acces­so­r­ial Charges

Accred­i­ta­tion: The process in which cer­ti­fi­ca­tion of com­pe­tency, author­ity, or cred­i­bil­ity is pre­sented. An example

of accred­i­ta­tion is the accred­i­ta­tion of test­ing lab­o­ra­to­ries and cer­ti­fi­ca­tion spe­cial­ists that are per­mit­ted to issue

offi­cial cer­tifi­cates of com­pli­ance with estab­lished standards.

ACH: See Auto­mated Clear­ing­house

Acknowl­edg­ment: Typ­i­cally this is a response, either elec­tronic or as a phys­i­cal doc­u­ment, which con­firms the

receipt of an order from the sup­plier to the buyer.

Active Inven­tory: Mate­ri­als held in a facil­ity which are intended to be con­sumed in manufacturing/​assembly, or

sold in a spec­i­fied period.

Active Stock: Goods in active pick loca­tions and ready for order filling.

Actual Costs: The actual labor, mate­r­ial, and allo­cated over­head costs incurred in the acqui­si­tion or pro­duc­tion of a

product.

Advanced Ship­ping Notice (ASN): Detailed ship­ment infor­ma­tion trans­mit­ted to a cus­tomer or con­signee in

advance of deliv­ery, des­ig­nat­ing the con­tents (indi­vid­ual prod­ucts and quan­ti­ties of each) and nature of the

ship­ment. In EDI data stan­dards this is referred to as an 856 trans­ac­tion. May also include car­rier and shipment

specifics includ­ing time of ship­ment and expected time of arrival.

After­mar­ket: A mar­ket for parts and acces­sories used in the repair or enhance­ment of a prod­uct. A secondary

mar­ket cre­ated after the orig­i­nal mar­ket sales are finished.

Agency tar­iff: A pub­li­ca­tion of a rate bureau that con­tains rates for many carriers.

Agent: An enter­prise autho­rized to trans­act busi­ness for, or in the name of, another enterprise.

Air Cargo: Freight that is moved by air transportation.

Air Cargo Con­tain­ers: Con­tain­ers designed to con­form to the inside of an air­craft. There are many shapes and

sizes of con­tain­ers. Air cargo con­tain­ers fall into three cat­e­gories: 1) air cargo pal­lets 2) lower deck con­tain­ers 3)

box type containers.

Air Way­bill (AWB): A bill of lad­ing for air trans­port that serves as a receipt for the ship­per, indi­cates that the

car­rier has accepted the goods listed, oblig­ates the car­rier to carry the con­sign­ment to the air­port of destination

accord­ing to spec­i­fied conditions.

Alter­nate Rout­ing: In a pro­duc­tion envi­ron­ment this is an optional process for man­u­fac­tur­ing or assem­bly of a

prod­uct, which may be employed due to unavail­abil­ity of a pri­mary work cen­ter, or choice of non-​standard

com­po­nents. May also refer to a trans­porta­tion route which is dif­fer­ent than what would nor­mally be taken, perhaps

due to weather.


Approved Ven­dor List (AVL): List of the sup­pli­ers approved for doing busi­ness. The AVL is usu­ally cre­ated by

pro­cure­ment or sourc­ing and engi­neer­ing per­son­nel using a vari­ety of cri­te­ria such as tech­nol­ogy, func­tional fit of

the prod­uct, finan­cial sta­bil­ity, and past per­for­mance of the supplier.

Arrival Notice: A notice from the deliv­er­ing car­rier to the Notify Party indi­cat­ing the shipment’s arrival date at a

spe­cific loca­tion (nor­mally the destination).

ASN: See Advanced Ship­ping Notice

Assem­bly: A col­lec­tion of com­po­nents which have been put together into a unit, or the activ­ity involved with putting

com­po­nents together to form a unit.

Auto­mated Clear­ing­house (ACH): A nation­wide elec­tronic pay­ments sys­tem, which more than 15,000 financial

insti­tu­tions use, on behalf of 100,000 cor­po­ra­tions and mil­lions of con­sumer in the U.S. The funds trans­fer sys­tem of

choice among busi­nesses that make elec­tronic pay­ments to ven­dors, it is eco­nom­i­cal and can carry remittance

infor­ma­tion in stan­dard­ized, com­puter process­able data formats.

Avail­able Inven­tory: Also called net inven­tory, this is the quan­tity of stock which is avail­able to use after

con­sid­er­ing allo­ca­tions, reser­va­tions, back­o­rders, and quan­ti­ties set aside to com­pen­sate for qual­ity problems.

Syn­onym: Net Inven­tory

Syn­onym: Available-​to-​Promise

AVL: See Approved Ven­dor List

AWB: See Air Way­bill

B

B2B: See Busi­ness to Busi­ness

B2C: See Busi­ness to Con­sumer

Bar Code: A sym­bol con­sist­ing of a series of printed bars rep­re­sent­ing val­ues. A sys­tem of opti­cal character

read­ing, scan­ning, and track­ing of units by read­ing a series of printed bars for trans­la­tion into a numeric or

alphanu­meric iden­ti­fi­ca­tion code. A pop­u­lar exam­ple is the UPC code used on retail packaging.

Bar code scan­ner: A device to read bar codes and com­mu­ni­cate data to com­puter systems.

Barge: The cargo-​carrying vehi­cle used pri­mar­ily by inland water car­ri­ers. The basic barges have open tops, but

there are cov­ered barges for both dry and liq­uid cargoes.

Batch Num­ber: A sequence num­ber asso­ci­ated with a spe­cific batch or pro­duc­tion run of prod­ucts and used for

track­ing purposes.

Syn­onym: Lot Num­ber

Batch Pro­cess­ing: A com­puter term which refers to the pro­cess­ing of com­puter infor­ma­tion after it has been

accu­mu­lated in one group, or batch. This is the oppo­site of “real-​time” pro­cess­ing where trans­ac­tions are processed

in their entirety as they occur.

Batch Release: Orders are released to be ful­filled or picked at spe­cific times dur­ing the course of a day.

Accu­mu­la­tion of the orders before release results in a batch.

See also: Batch Pick­ing

Belly Cargo: Air freight car­ried in the belly of pas­sen­ger aircraft.

Bill of Lad­ing (BOL): A trans­porta­tion doc­u­ment that is the con­tract of car­riage con­tain­ing the terms and

con­di­tions between the ship­per and carrier.


Bill of Lad­ing, Through: A bill of lad­ing that cov­ers goods from point of ori­gin to final des­ti­na­tion, when

inter­change or trans­fer from one car­rier to another is nec­es­sary to com­plete the journey.

Bill of Mate­r­ial (BOM): A struc­tured list of all the mate­ri­als or parts and quan­ti­ties needed to pro­duce a particular

fin­ished prod­uct, assem­bly, sub­assem­bly, or man­u­fac­tured part, whether pur­chased or not.

Bill of Mate­r­ial Accu­racy: Con­for­mity of a list of spec­i­fied items to admin­is­tra­tive spec­i­fi­ca­tions, with all quantities

correct.

Bill of Resources: A list­ing of resources required by an activ­ity. Resource attrib­utes could include cost and

volumes.

Bin: An inven­tory loca­tion which is typ­i­cally a box or tray used to hold quan­ti­ties of smaller parts.

BOL: See Bill of Lad­ing

BOM: See Bill of Mate­ri­als

Bonded Ware­house: Ware­house approved by the Trea­sury Depart­ment and under bond/​guarantee for observance

of rev­enue laws. Used for stor­ing goods until duty is paid or goods are released in some other proper manner.

Book­ings: The sum of the value of all orders received (but not nec­es­sar­ily shipped), net of all dis­counts, coupons,

allowances, and rebates.

Break-​Bulk: The sep­a­ra­tion of a sin­gle con­sol­i­dated bulk load into smaller indi­vid­ual ship­ments for deliv­ery to the

ulti­mate con­signees. This is pre­ceded by a con­sol­i­da­tion of orders at the time of ship­ment, where many individual

orders which are des­tined for a spe­cific geo­graphic area are grouped into one ship­ment in order to reduce cost.

Bro­ker: An inter­me­di­ary between the ship­per and the car­rier. The bro­ker arranges trans­porta­tion for ship­pers and

rep­re­sents carriers.

Bulk area: A stor­age area for large items which at a min­i­mum are most effi­ciently han­dled by the pal­let load.

Bulk stor­age: The process of hous­ing or stor­ing mate­ri­als and pack­ages in larger quan­ti­ties, gen­er­ally using the

orig­i­nal pack­ag­ing or ship­ping con­tain­ers or boxes.

Bun­dle: A group of prod­ucts that are shipped together as an unassem­bled unit.

Bundling: An occur­rence where two or more prod­ucts are com­bined into one trans­ac­tion for a sin­gle price.

Business-​to-​Business (B2B): As opposed to business-​to-​consumer (B2C). Many com­pa­nies are now focus­ing on

this strat­egy, and their sites are aimed at busi­nesses (think whole­sale) and only other busi­nesses can access or buy

prod­ucts on the site. Inter­net ana­lysts pre­dict this will be the biggest sec­tor on the Web.

Business-​to-​Consumer (B2C): The hun­dreds of e-​commerce Web sites that sell goods directly to con­sumers are

con­sid­ered B2C. This dis­tinc­tion is impor­tant when com­par­ing Web­sites that are B2B as the entire busi­ness model,

strat­egy, exe­cu­tion, and ful­fill­ment is different.

C

Cage: (1) A secure enclosed area for stor­ing highly valu­able items, (2) a pallet-​sized plat­form with sides that can be

secured to the tines of a fork­lift and in which a per­son may ride to inven­tory items stored will above the warehouse

floor.

CAGE Code: The Com­mer­cial and Gov­ern­ment Entity code is a 5 char­ac­ter (num­ber and let­ters) code used to

iden­tify con­trac­tors doing busi­ness with the U.S. Government.

Caged: Refer­ring to the prac­tice of plac­ing high-​value or sen­si­tive prod­ucts in a fenced off area within a warehouse.

Cargo: sub­ject of a ship­ment. The mate­ri­als being carried.

Car­rier: A firm which trans­ports goods or peo­ple via land, sea or air.


CBP: See Cus­toms and Bor­der Pro­tec­tion

Cer­tifi­cate of Analy­sis (COA): A doc­u­ment, often required by an importer or gov­ern­men­tal author­i­ties, attesting

to the qual­ity or purity of commodities.

Cer­tifi­cate of Com­pli­ance: A doc­u­ment, often required by an importer or gov­ern­men­tal author­i­ties, attest­ing to

the qual­ity or purity of com­modi­ties. The ori­gin of the cer­ti­fi­ca­tion may be a chemist or any other autho­rized body

such as an inspec­tion firm retained by the exporter or importer.

Cer­tifi­cate of Ori­gin: An inter­na­tional busi­ness doc­u­ment that cer­ti­fies the coun­try of ori­gin of the shipment.

Change Order: A doc­u­ment or dig­i­tal record which autho­rizes and pro­vides noti­fi­ca­tion of a mod­i­fi­ca­tion to a

prod­uct or order.

Chan­nels of Dis­tri­b­u­tion: The down­stream flow of prod­ucts through var­i­ous out­lets or ‘chan­nels’ which may

con­sist of dis­trib­u­tors, retail stores, on-​line ful­fill­ment, etc.

See also: Dis­tri­b­u­tion Chan­nel

Char­ter: The hir­ing or leas­ing of a vehi­cle for tem­po­rary use.

Claim: A charge made against a car­rier for loss, dam­age, delay, or overcharge.

Class Rate: A rate con­structed from a clas­si­fi­ca­tion and a uni­form dis­tance sys­tem. A class rate is avail­able for any

prod­uct between any two points.

Clas­si­fi­ca­tion: An alpha­bet­i­cal list­ing of com­modi­ties, the class or rat­ing into which the com­mod­ity is placed, and

the min­i­mum weight nec­es­sary for the rate dis­count; used in the class rate structure.

Clas­si­fi­ca­tion yard: A rail­road ter­mi­nal area where rail cars are grouped together to form train units.

Clear­ing­house: A con­ven­tional or lim­ited pur­pose entity gen­er­ally restricted to pro­vid­ing spe­cial­ized ser­vices, such

as clear­ing funds or set­tling accounts.

Coastal car­ri­ers: Water car­ri­ers that pro­vide ser­vice along coasts serv­ing ports on the Atlantic or Pacific oceans or

on the Gulf of Mexico.

Code: A numeric, or alphanu­meric, rep­re­sen­ta­tion of text for exchang­ing com­monly used infor­ma­tion. For example:

com­mod­ity codes, car­rier codes, etc.

COGS: See Cost of Goods Sold

Com­mer­cial Invoice: A doc­u­ment cre­ated by the seller. It is an offi­cial doc­u­ment which is used to indi­cate, among

other things, the name and address of the buyer and seller, the product(s) being shipped, and their value for

cus­toms, insur­ance, or other purposes.

Com­mod­ity: Any phys­i­cal item that is traded in com­merce. The term usu­ally implies an undif­fer­en­ti­ated product

com­pet­ing pri­mar­ily on price and availability.

Com­mod­ity Code: A code describ­ing a com­mod­ity or a group of com­modi­ties per­tain­ing to goods clas­si­fi­ca­tion. This

code can be car­rier tar­iff or reg­u­lat­ing in nature.

Com­mon Car­rier: Any car­rier engaged in the inter­state trans­porta­tion of persons/​property on a reg­u­lar sched­ule at

pub­lished rates, whose ser­vices are for hire to the gen­eral public.

Com­mon Car­rier Duties: Com­mon car­ri­ers are required to serve, deliver, charge rea­son­able rates, and not

discriminate.

Com­plete & On-​Time Deliv­ery (COTD): A mea­sure of cus­tomer ser­vice. All items on any given order must be

deliv­ered on time for the order to be con­sid­ered as com­plete and on time

Com­pli­ance: Mean­ing that prod­ucts, ser­vices, processes and/​or doc­u­ments com­ply with requirements.

Com­pli­ance Check­ing: The func­tion of EDI pro­cess­ing soft­ware that ensures that all trans­mis­sions con­tain the

manda­tory infor­ma­tion demanded by the EDI stan­dard. Com­pares infor­ma­tion sent by an EDI user against EDI


stan­dards and reports excep­tions. Does not ensure that doc­u­ments are com­plete and fully accu­rate, but does reject

trans­mis­sions with miss­ing data ele­ments or syn­tax errors.

Con­fig­u­ra­tion: The selec­tion and group­ing of com­po­nents and assem­blies into a fin­ished product.

Configure/​Package-​to-​Order: A process where the trig­ger to begin man­u­fac­ture, final assem­bly or pack­ag­ing of a

prod­uct is an actual cus­tomer order or release, rather than a mar­ket fore­cast. In order to be con­sid­ered a Configure

to-​Order envi­ron­ment, less than 20% of the value-​added takes place after the receipt of the order or release, and

vir­tu­ally all nec­es­sary design and process doc­u­men­ta­tion is avail­able at time of order receipt.

Con­fir­ma­tion: With regards to EDI, a for­mal notice (by mes­sage or code) from a elec­tronic mail­box sys­tem or EDI

server indi­cat­ing that a mes­sage sent to a trad­ing part­ner has reached its intended mail­box or been retrieved by the

addressee.

Con­firm­ing Order: A doc­u­ment sim­i­lar to, or same as a pur­chase order, which is pro­vided to a sup­plier as

con­fir­ma­tion of a pre­vi­ous ver­bal pur­chase request.

Con­for­mance: A term used in qual­ity man­age­ment to con­firm the adher­ence to spec­i­fi­ca­tion of a prod­uct or service.

Con­signee: The party to whom goods are shipped and deliv­ered. The receiver of a freight shipment.

Con­sign­ment: The act of con­sign­ing — plac­ing a per­son or thing in the pos­ses­sion of another, but retaining

own­er­ship until the goods are sold. This may apply to ship­ping or sale in a store (i.e., a con­sign­ment shop).

See also: Con­sign­ment Inven­tory

Con­sign­ment Inven­tory: 1) Goods or prod­uct that are paid for when they are sold by the reseller, not at the time

they are shipped to the reseller. 2) Goods or prod­ucts which are owned by the ven­dor until they are sold to the

consumer.

Con­signor: The party who orig­i­nates a ship­ment of goods (ship­per). The sender of a freight ship­ment, usu­ally the

seller.

Con­sol­i­da­tion: Com­bin­ing two or more ship­ments in order to real­ize lower trans­porta­tion rates. Inbound

con­sol­i­da­tion from ven­dors is called make-​bulk con­sol­i­da­tion; out­bound con­sol­i­da­tion to cus­tomers is called break–

bulk consolidation.

Con­sol­ida­tor: An enter­prise that pro­vides ser­vices to group ship­ments, orders, and/​or goods to facilitate

movement.

Con­tainer: 1) A “box,” typ­i­cally 10 to 40 feet long, which is pri­mar­ily used for ocean freight ship­ments. For travel to

and from ports, con­tain­ers are loaded onto truck chas­sis or on rail­road flat­cars. 2) The pack­ag­ing, such as a carton,

case, box, bucket, drum, bin, bot­tle, bun­dle, or bag, that an item is packed and shipped in.

Con­tainer­iza­tion: A sys­tem of inter­modal freight trans­port using stan­dard inter­modal con­tain­ers that are

stan­dard­ized by the Inter­na­tional Orga­ni­za­tion for Stan­dard­iza­tion (ISO). These can be loaded and sealed intact onto

con­tainer ships, rail­road cars, planes, and trucks.

Con­tin­u­ous Improve­ment (CI): A struc­tured mea­sure­ment dri­ven process that con­tin­u­ally reviews and improves

performance.

Con­tract Car­rier: Car­rier engaged in inter­state trans­porta­tion of persons/​property by motor vehi­cle on a for-​hire

basis, but under con­tin­u­ing con­tract with one or a lim­ited num­ber of cus­tomers to meet spe­cific needs.

Con­trolled Access: Refer­ring to an area within a ware­house or yard that is fenced and gated. These areas are

typ­i­cally used to store high-​value items and may be mon­i­tored by secu­rity cameras

Con­veyor: A mate­ri­als han­dling device that moves freight from one area to another in a ware­house. Roller

con­vey­ors make use of grav­ity, whereas belt con­vey­ors use motors.

COO: See Coun­try of Ori­gin

Cost, Insur­ance, Freight (CIF): A trade term requir­ing the seller to arrange for the car­riage of goods by sea to a

port of des­ti­na­tion, and pro­vide the buyer with the doc­u­ments nec­es­sary to obtain the goods from the carrier.


Cost of Goods Sold (COGS): The amount of direct mate­ri­als, direct labor, and allo­cated over­head asso­ci­ated with

prod­ucts sold dur­ing a given period of time, deter­mined in accor­dance with Gen­er­ally Accepted Account­ing Principles

(GAAP)

Cost Recov­ery Rate (CRR): Pro­vides the fund­ing stream for a wide vari­ety of pro­gram logis­tics sup­port functions.

COTD: See Com­plete & On-​Time Deliv­ery

Coun­try of Ori­gin: The coun­try of man­u­fac­ture, pro­duc­tion or growth from where a prod­uct comes.

Cross Dock/​Cross Dock­ing (XDK): A dis­tri­b­u­tion sys­tem in which mer­chan­dise received at the ware­house or

dis­tri­b­u­tion cen­ter is not put away, but instead is read­ied for ship­ment to retail stores. Cross dock­ing requires close

syn­chro­niza­tion of all inbound and out­bound ship­ment move­ments. By elim­i­nat­ing the put-​away, stor­age and

selec­tion oper­a­tions, it can sig­nif­i­cantly reduce dis­tri­b­u­tion costs.

C-​TPAT: See Customs-​Trade Part­ner­ship against Ter­ror­ism

Cube: The vol­ume of the ship­ment or package.

Cal­cu­la­tion: length x width x depth

Cus­tomer: 1) In dis­tri­b­u­tion, the Trad­ing Part­ner or reseller, i.e. Wal-​Mart, Safe­way, or CVS. 2) In Direct-​to–

Con­sumer, the end cus­tomer or user.

Cus­toms Bro­ker­age: Involves the clear­ing of goods through cus­toms bar­ri­ers for importers and exporters.

Cus­toms Clear­ance: The accom­plish­ment of the Cus­toms for­mal­i­ties nec­es­sary to allow goods to enter the country,

to be exported or to be placed under another customer’s procedure.

Customer/​Order Ful­fill­ment Process: The typ­i­cal busi­ness process which includes receipt and pro­cess­ing of a

cus­tomer order through delivery.

Cus­tomiza­tion: Cre­at­ing a prod­uct from exist­ing com­po­nents into an indi­vid­ual order.

Syn­onym: Build to Order

Cus­toms and Bor­der Pro­tec­tion (CBP): Formed dur­ing the cre­ation of the Depart­ment of Home­land Secu­rity in

2003, CBP con­sists pri­mar­ily of the cus­toms inspec­tion func­tion for­merly per­formed by the U.S. Cus­toms Ser­vice as

part of the Depart­ment of Trea­sury, the immi­gra­tion inspec­tion func­tion for­merly per­formed by the Immi­gra­tion and

Nat­u­ral­iza­tion Ser­vice (INS), and the Bor­der Patrol, for­merly part of the Depart­ment of Justice.

Cus­toms House Bro­ker: A busi­ness firm that over­sees the move­ment of inter­na­tional ship­ments through customs

and ensures that the doc­u­men­ta­tion accom­pa­ny­ing a ship­ment is com­plete and accurate.

Customs-​Trade Part­ner­ship against Ter­ror­ism (C-​TPAT): A joint government/​business ini­tia­tive to build

coop­er­a­tive rela­tion­ships that strengthen over­all sup­ply chain and bor­der secu­rity. The vol­un­tary pro­gram is

designed to share infor­ma­tion that will pro­tect against ter­ror­ists’ com­pro­mis­ing the sup­ply chain.

D

Dan­ger­ous Goods: Arti­cles or sub­stances capa­ble of pos­ing sig­nif­i­cant health, safety, or envi­ron­men­tal risk, and

that ordi­nar­ily require spe­cial atten­tion includ­ing pack­ag­ing and label­ing when stored or transported.

Syn­onym: Haz­ardous Goods

Syn­onym: Haz­ardous Mate­ri­als

Syn­onym: Haz­Mat

DC: See Dis­tri­b­u­tion Cen­ter

Dec­la­ra­tion of Dan­ger­ous Goods: To com­ply with the U.S. reg­u­la­tions, exporters are required to pro­vide special

notices to inland and ocean trans­port com­pa­nies when goods are hazardous.

Declared Value: The value of the goods, declared by the ship­per on a bill of lad­ing, for the pur­pose of determining

a freight rate or the limit of the carrier’s lia­bil­ity. Also used by cus­toms as the basis for cal­cu­la­tion of duties, etc.


Deferred Ship­ping: Deliv­ery of non-​critical shipments.

Delivery-​Duty-​Paid: Supplier/​manufacturer arrange­ment in which sup­pli­ers are respon­si­ble for the trans­port of the

goods they have pro­duced, which is being sent to a man­u­fac­turer. This respon­si­bil­ity includes tasks such as ensuring

prod­ucts get through Customs.

Deliv­ery Receipt: Doc­u­ment a con­signee or its agent dates and signs at deliv­ery, stat­ing the con­di­tion of the goods

at deliv­ery. The dri­ver takes the signed deliv­ery receipt to the ser­vice cen­ter for reten­tion. The cus­tomer retains the

remain­ing copy.

Demur­rage: The car­rier charges and fees applied when rail freight cars and ships are retained beyond a specific

load­ing or unload­ing time.

See also: Deten­tion

Denied Party List (DPL): A list­ing of all the enti­ties with whom a com­pany can­not do busi­ness due to company

pol­icy or gov­ern­ment require­ments. The Export DPL list is based on infor­ma­tion sup­plied by the United States

Gov­ern­ment Fed­eral Reg­is­ter and other sources.

Deten­tion Fee: The car­rier charges and fees applied when rail freight cars, ship and car­ri­ers are retained beyond a

spec­i­fied load­ing or unload­ing time.

See also: Demur­rage

See also: Express

DFZ: See Duty Free Zone

Direct Store Deliv­ery (DSD): Process of ship­ping direct from a manufacturer’s plant or dis­tri­b­u­tion cen­ter to the

customer’s retail store, thus bypass­ing the customer’s dis­tri­b­u­tion center.

Syn­onym: Direct-​to-​Store Deliv­ery

Direct-​to-​Store Deliv­ery: See Direct Store Deliv­ery

Dis­tri­b­u­tion: The activ­i­ties asso­ci­ated with mov­ing mate­ri­als from source to des­ti­na­tion. Can be asso­ci­ated with

move­ment from a man­u­fac­turer or dis­trib­u­tor to cus­tomers, retail­ers or other sec­ondary ware­hous­ing /​dis­tri­b­u­tion

points.

Dis­tri­b­u­tion Cen­ter (DC): The ware­house facil­ity which holds inven­tory from man­u­fac­tur­ing pend­ing dis­tri­b­u­tion to

the appro­pri­ate stores.

Dis­tri­b­u­tion Chan­nel: One or more com­pa­nies or indi­vid­u­als who par­tic­i­pate in the flow of goods and ser­vices from

the man­u­fac­turer to the final user or consumer.

Dis­tri­b­u­tion Plan­ning: The process involved in plan­ning for dis­tri­b­u­tion activ­i­ties. Activ­i­ties may include inbound /

out­bound trans­porta­tion, ware­house man­age­ment, set­ting inven­tory lev­els, put­away and pick­ing, pack­ag­ing and

load­ing, and var­i­ous admin­is­tra­tive functions.

Dis­tri­b­u­tion Ware­house: A ware­house that stores fin­ished goods and from which cus­tomer orders are assembled.

Dis­trib­u­tor: A busi­ness and indus­try which acts as a third party local rep­re­sen­ta­tive and dis­tri­b­u­tion point for a

man­u­fac­tur­ing firm. These firms may per­form some light assem­bly or kit­ting of goods, but gen­er­ally pro­vide a buffer

for fin­ished goods. Dis­trib­u­tors typ­i­cally pur­chase the goods in quan­tity from the man­u­fac­turer and ship to

cus­tomers in smaller quantities.

Syn­onym: Whole­saler

Dock: A plat­form, gen­er­ally the same height as the trailer floor, where trucks are loaded and unloaded.

Dock receipt: A receipt that indi­cates an export ship­ment has been deliv­ered to a steamship com­pany by a

domes­tic carrier.

Doc­u­ment: In EDI, a form, such as an invoice or a pur­chase order, that trad­ing part­ners have agreed to exchange

and that the EDI soft­ware han­dles within its compliance-​checking logic.


Doc­u­men­ta­tion: The papers attached or per­tain­ing to goods requir­ing trans­porta­tion and/​or trans­fer of ownership.

These may include the pack­ing list, haz­ardous mate­ri­als dec­la­ra­tions, export /​cus­toms doc­u­ments, etc.

DoD: Depart­ment of Defense (USA)

Double-​pallet jack: A mech­a­nized device for trans­port­ing two stan­dard pal­lets simultaneously.

DPL: See Denied Party List

Draw­back: The abil­ity to be reim­bursed for some or all of the duties paid on imported mer­chan­dise at the time of re–

exportation.

Drayage: The act of trans­port­ing some­thing a short dis­tance, often as part of a longer over­all move.

Dri­ving time reg­u­la­tions: Rules admin­is­tered by the U.S. Depart­ment of Trans­porta­tion that limit the maximum

time a dri­ver may drive in inter­state com­merce; both daily and weekly max­i­mums are prescribed.

Drop: A sit­u­a­tion in which an equip­ment oper­a­tor deposits a trailer or box­car at a facil­ity at which it is to be loaded

or unloaded.

Drop Yard: Tem­po­rary “park­ing lots” for con­tain­ers or cargo, located off the wharves and some­times next to rail

yards or import warehouses.

Dump­ing: The act of sell­ing goods below costs in selected mar­kets in an effort to gain mar­ket share or eliminate

competition.

Dun­nage: The mate­ri­als used in pack­ag­ing, holds and con­tain­ers to pro­tect goods from damage.

DUNS: Data Uni­ver­sal Num­ber­ing System.

DUNS Num­ber: A unique nine-​digit num­ber assigned by Dun and Brad­street to iden­tify a com­pany. DUNS stands

for Data Uni­ver­sal Num­ber­ing System.

Durable Goods: A good which does not quickly wear out, or more specif­i­cally, it yields ser­vices or util­ity over time

(typ­i­cally 3 years or more) rather than being com­pletely used up when used once.

Duty Free Zone (DFZ): An area where goods or cargo can be stored with­out pay­ing import cus­toms duties while

await­ing man­u­fac­tur­ing or future transport.

E

e-​Commerce: See Elec­tronic Com­merce

EC: See Elec­tronic Com­merce

EDI: See Elec­tronic Data Inter­change

EIN: See Exporter Iden­ti­fi­ca­tion Num­ber

Elec­tronic Com­merce (EC): Also writ­ten as e-​commerce. Con­duct­ing busi­ness elec­tron­i­cally via tra­di­tional EDI

tech­nolo­gies, or online via the Inter­net. In the tra­di­tional sense of sell­ing goods, it is pos­si­ble to do this electronically

because of cer­tain soft­ware pro­grams that run the main func­tions of an e-​commerce web­site, such as product

dis­play, online order­ing, and inven­tory man­age­ment. The def­i­n­i­tion of e-​commerce includes busi­ness activ­ity that is

business-​to-​business (B2B), business-​to-​consumer (B2C).

Elec­tronic Data Inter­change (EDI): Inter­com­pany, computer-​to-​computer trans­mis­sion of busi­ness infor­ma­tion in

a stan­dard for­mat. For EDI purists, “computer-​to-​computer” means direct trans­mis­sion from the originating

appli­ca­tion pro­gram to the receiv­ing, or pro­cess­ing, appli­ca­tion pro­gram. An EDI trans­mis­sion con­sists only of

busi­ness data, not any accom­pa­ny­ing ver­biage or free-​form mes­sages. Purists might also con­tend that a standard

for­mat is one that is approved by a national or inter­na­tional stan­dards orga­ni­za­tion, as opposed to formats

devel­oped by indus­try groups or companies.


Embargo: Per­tain­ing to a state­ment or for­mula based upon expe­ri­ence or obser­va­tion rather than on deduc­tion or

theory.

End-​of-​Life: Plan­ning and exe­cu­tion at the end of the life of a prod­uct. The chal­lenge is mak­ing just the right

amount to avoid: 1) end­ing up with excess, which has to be sold at great dis­counts or scrapped, or 2) end­ing up with

short­ages before the next gen­er­a­tion is available.

End-​of-​Life Inven­tory: Inven­tory on hand that will sat­isfy future demand for prod­ucts that are no longer in

pro­duc­tion at your entity. This dif­fers from obso­lete inven­tory because there is an expected future require­ment for

these products.

End Item: The top level item in a bill of mate­ri­als. Typ­i­cally a fin­ished prod­uct which can be sold as a completed

item or repair part.

Syn­onym: Fin­ished Goods Inven­tory

ETA: The Esti­mated Time of Arrival.

ETD: The Esti­mated Time of Departure.

Exception-​Based Pro­cess­ing: A com­puter term for appli­ca­tions that auto­mat­i­cally high­light par­tic­u­lar events or

results which fall out­side pre-​determined para­me­ters. This saves con­sid­er­able effort by auto­mat­i­cally finding

prob­lems and alert­ing the right per­sons. An exam­ple would be where a shorted item on a pur­chase order receipt

would auto­mat­i­cally notify a pur­chas­ing agent for follow-​up.

Ex Works (EXW): An inter­na­tional trade term (Incoterms, Inter­na­tional Cham­ber of Com­merce) requir­ing the seller

to deliver goods at his or her own place of busi­ness. All other trans­porta­tion costs and risks are assumed by the

buyer.

Excep­tion Mes­sage: See Action Mes­sage

Excep­tion Rate: A devi­a­tion from the class rate; changes (excep­tions) made to the classification.

Exempt Car­rier: A for-​hire car­rier that is free from eco­nomic reg­u­la­tion. Trucks haul­ing cer­tain com­modi­ties are

exempt from Inter­state Com­merce Com­mis­sion eco­nomic reg­u­la­tion. By far the largest por­tion of exempt carrier

trans­ports agri­cul­tural com­modi­ties or seafood.

Expe­dit­ing: 1) Mov­ing ship­ments through reg­u­lar chan­nels at an accel­er­ated rate. 2) To take extra­or­di­nary action

because of an increase in rel­a­tive pri­or­ity, per­haps due to a sud­den increase in demand.

Syn­onym: Stockchase

Export: 1) In logis­tics, the move­ment of prod­ucts from one coun­try to another. For exam­ple, sig­nif­i­cant vol­umes of

cut flow­ers are exported from The Nether­lands to other coun­tries of the world. 2) A com­puter term refer­ring to the

trans­fer of infor­ma­tion from a source (sys­tem or data­base) to a target.

Export Bro­ker: An enter­prise that brings together buyer and seller for a fee, then even­tu­ally with­draws from the

transaction.

Export Com­pli­ance: Com­ply­ing with the rules for export­ing prod­ucts, includ­ing pack­ag­ing, label­ing, and

documentation.

Export Dec­la­ra­tion: A doc­u­ment required by the Depart­ment of Com­merce that pro­vides infor­ma­tion as to the

nature, value, etc., of export activity.

Export License: A doc­u­ment secured from a gov­ern­ment autho­riz­ing an exporter to export a spe­cific quan­tity of a

con­trolled com­mod­ity to a cer­tain coun­try. An export license is often required if a gov­ern­ment has placed embargoes

or other restric­tions upon exports.

Export Sales Con­tract: The ini­tial doc­u­ment in any inter­na­tional trans­ac­tion; it details the specifics of the sales

agree­ment between the buyer and seller.


Exporter Iden­ti­fi­ca­tion Num­ber (EIN): A num­ber required for the exporter on the Shipper’s Export Declaration.

A cor­po­ra­tion may use their Fed­eral Employer Iden­ti­fi­ca­tion Num­ber as issued by the IRS; indi­vid­u­als can use their

Social Secu­rity Numbers.

Exports: A term used to describe those prod­ucts pro­duced in one geog­ra­phy (typ­i­cally a coun­try) and shipped /​sold

in another.

EXW: See Ex Works

F

FAST: See Fast and Secure Trade

Fast and Secure Trade (FAST): U.S. Cus­toms pro­gram that allows importers on the U.S./Canada bor­der to obtain

expe­dited release for qual­i­fy­ing com­mer­cial shipments.

FCL: See Full Con­tainer Load

FDA: See Fed­eral Drug Admin­is­tra­tion

FEU: See Forty-​foot equiv­a­lent unit

Finan­cial respon­si­bil­ity: Motor car­ri­ers are required to have body injury and prop­erty dam­age (not cargo)

insur­ance or not less than $500,000 per inci­dent per vehi­cle; higher finan­cial respon­si­bil­ity lim­its apply for motor

car­ri­ers trans­port­ing oil or haz­ardous materials.

First Expired, First Out (FEFO): A stock con­trol rule allow­ing the man­age­ment of prod­ucts hav­ing an eat-​by date

or short shelf life. FEFO can be used for any prod­uct but is most fre­quently used for food or cold storage.

First In, First Out (FIFO): Ware­house term mean­ing first items stored are the first used. In account­ing this term

is asso­ci­ated with the valu­ing of inven­tory such that the lat­est pur­chases are reflected in book inven­tory. While

gen­er­ally con­sid­ered an account­ing notion, FIFO usage is com­mon where prod­ucts may have a shelf life.

Flat: A load­able plat­form hav­ing no super­struc­ture what­ever but hav­ing the same length and width as the base of a

con­tainer and equipped with top and bot­tom cor­ner fit­tings. This is an alter­na­tive term used for cer­tain types of

spe­cific pur­pose con­tain­ers - namely plat­form con­tain­ers and platform-​based con­tain­ers with incom­plete structures.

Flatbed: A flatbed is a type of truck trailer that con­sists of a floor and no enclo­sure. A flatbed may be used with

side­boards” or “tie downs” which keep loose cargo from falling off.

Flow-​Through Dis­tri­b­u­tion: A process in a dis­tri­b­u­tion cen­ter in which prod­ucts from mul­ti­ple loca­tions are

brought in to the D.C. and are re-​sorted by deliv­ery des­ti­na­tion and shipped in the same day. Typ­i­cally involv­ing a

com­bi­na­tion of TL and LTL car­rier resources, this prac­tice elim­i­nates ware­hous­ing, reduces inven­tory lev­els and

speeds order turn­around time.

Syn­onym: Cross Dock process in the trans­porta­tion business

See also: Cross Dock

FOB: See Free on Board

FOB Des­ti­na­tion: Title passes at des­ti­na­tion, and seller has total respon­si­bil­ity until ship­ment is delivered.

FOB Ori­gin: Title passes at ori­gin, and buyer has total respon­si­bil­ity over the goods while in shipment.

For-​hire Car­rier: A car­rier that pro­vides trans­porta­tion ser­vice to the pub­lic on a fee basis.

For­eign Trade Zone (FTZ): An area or zone set aside at or near a port or air­port, under the con­trol of the U.S.

Cus­toms Ser­vice, for hold­ing goods duty-​free pend­ing cus­toms clearance.

Fork­lift truck: A machine-​powered device that is used to raise and lower freight and to move freight to different

ware­house locations.


Fourth-​Party Logis­tics (4PL): Dif­fers from third party logis­tics in the fol­low­ing ways; 1)4PL orga­ni­za­tion is often a

sep­a­rate entity estab­lished as a joint ven­ture or long-​term con­tract between a pri­mary client and one or more

part­ners; 2)4PL orga­ni­za­tion acts as a sin­gle inter­face between the client and mul­ti­ple logis­tics ser­vice providers; 3)

All aspects (ide­ally) of the client’s sup­ply chain are man­aged by the 4PL orga­ni­za­tion; and, 4) It is pos­si­ble for a

major third-​party logis­tics provider to form a 4PL orga­ni­za­tion within its exist­ing struc­ture. The term was registered

by Accen­ture as a trade­mark in 1996 and defined as “A sup­ply chain inte­gra­tor that assem­bles and man­ages the

resources, capa­bil­i­ties, and tech­nol­ogy of its own orga­ni­za­tion with those of com­ple­men­tary ser­vice providers to

deliver a com­pre­hen­sive sup­ply chain solu­tion.”, but is no longer registered.

Forty-​foot Equiv­a­lent Unit (FEU): A stan­dard size inter­modal container.

Free Along­side Ship (FAS): A ship­ping con­tract term indi­cat­ing that the seller must place the goods along­side the

ship at the named port and be liable for all charges and risks prior to place­ment. The seller must clear the goods for

export; this changed in the 2000 ver­sion of the Incoterms. Suit­able for mar­itime trans­port only.

Free on Board (FOB): Con­trac­tual terms between a buyer and a seller, that define where title trans­fer takes place.

Free Time: The period of time allowed for the removal or accu­mu­la­tion of cargo before charges become applicable.

Free Trade Zone or For­eign Trade Zone (FTZ): Also known as an export pro­cess­ing zone (EPZ), one or more

spe­cial areas of a coun­try where some nor­mal trade bar­ri­ers such as tar­iffs and quo­tas are elim­i­nated and

bureau­cratic require­ments are low­ered in hopes of attract­ing new busi­ness and for­eign invest­ments. Free trade

zones can be defined as labor inten­sive man­u­fac­tur­ing cen­ters that involve the import of raw mate­ri­als or

com­po­nents and the export of fac­tory products.

Freight: Goods being trans­ported from one place to another.

Freight Bill: The carrier’s invoice for trans­porta­tion charges applic­a­ble to a freight shipment.

Freight Car­ri­ers: Com­pa­nies that haul freight, also called “for-​hire” car­ri­ers. Meth­ods of trans­porta­tion include

truck­ing, rail­roads, air­lines, and sea borne shipping.

Freight Charge: The rate estab­lished for trans­port­ing freight.

Freight Col­lect: The freight and charges to be paid by the consignee.

Freight Con­sol­i­da­tion: The act of com­bin­ing indi­vid­ual ship­ments into a sin­gle lot in order to reduce costs or

improve trans­port equip­ment uti­liza­tion. Con­sol­i­da­tion can take a vari­ety forms by cus­tomer, geog­ra­phy, shipping

land or sched­ule. Con­sol­i­da­tion may occur at the ship­ping facil­ity or may be a ser­vice of a third party.

Freight For­warder: An orga­ni­za­tion which pro­vides logis­tics ser­vices as an inter­me­di­ary between the ship­per and

the car­rier, typ­i­cally on inter­na­tional ship­ments. Freight for­warders pro­vide the abil­ity to respond quickly and

effi­ciently to chang­ing cus­tomer and con­sumer demands and inter­na­tional ship­ping (import/​export) requirements.

Freight Pre­paid: The freight and charges to be paid by the consignor.

FTL: See Full Truck Load

FTZ: See Free Trade Zone

Ful­fill­ment: The act of ful­fill­ing a cus­tomer order. Ful­fill­ment includes order man­age­ment, pick­ing, pack­ag­ing, and

shipping.

Ful­fill­ment Agent: May be des­ig­nated as an agent to plan, sched­ule, or con­trol the process of exe­cut­ing the

logis­tics chain.

Full Con­tainer Load (FCL): A term used when goods occupy a whole container.

Full Truck Load (FTL): A term which defines a ship­ment which occu­pies at least one com­plete truck trailer, or

allows for no other ship­pers goods to be car­ried at the same time.

G


Gap analy­sis: The process of deter­min­ing and doc­u­ment­ing the vari­ance (gap) between goals and current

performance.

Gen­eral Com­modi­ties Car­rier: A com­mon motor car­rier that has oper­at­ing author­ity to trans­port general

com­modi­ties, or all com­modi­ties not listed as spe­cial commodities.

Gen­eral Order (GO): A cus­toms term refer­ring to a ware­house where mer­chan­dise not entered within five working

days after the carrier’s arrival is stored at the risk and expense of the importer.

Gen­eral Aver­age: A prin­ci­ple of mar­itime law where in the event of emer­gency, if cargo is jet­ti­soned or expensed

incurred, the loss is shared pro­por­tion­ately by all par­ties with a finan­cial inter­est in the voyage.

GO: See Gen­eral Order

Goods: A term asso­ci­ated with more than one def­i­n­i­tion: 1) Com­mon term indi­cat­ing mov­able property,

mer­chan­dise, or wares. 2) All mate­ri­als which are used to sat­isfy demands. 3) Whole or part of the cargo received

from the ship­per, includ­ing any equip­ment sup­plied by the shipper.

Goods Received Note (GRN): Doc­u­men­ta­tion raised by the recip­i­ent of mate­ri­als or products.

Gross Inven­tory: Value of inven­tory at stan­dard cost before any reserves for excess and obso­lete items are taken.

H

Han­dling Costs: The cost involved in mov­ing, trans­fer­ring, prepar­ing, and oth­er­wise han­dling inventory.

Har­mo­nized Code: An inter­na­tional clas­si­fi­ca­tion sys­tem that assigns iden­ti­fi­ca­tion num­bers to spe­cific products.

The cod­ing sys­tem ensures that all par­ties in int’l trade use a con­sis­tent clas­si­fi­ca­tion for the pur­poses of

doc­u­men­ta­tion, sta­tis­ti­cal con­trol, and duty assessment.

Haulage: The inland trans­port ser­vice which is offered by the car­rier under the terms and con­di­tions of the tar­iff and

of the rel­a­tive trans­port document.

Haz­ardous Goods: See Haz­ardous Mate­r­ial

Haz­ardous Mate­r­ial: A sub­stance or mate­r­ial, which the Depart­ment of Trans­porta­tion has deter­mined to be

capa­ble of pos­ing a risk to health, safety, and prop­erty when stored or trans­ported in commerce.

See also: Mate­r­ial Data Safety Sheet

Haz­Mat: See Haz­ardous Mate­r­ial

Hot Shot: Direct deliv­ery of time-​sensitive freight.

Hub: 1) A large retailer or man­u­fac­turer hav­ing many trad­ing part­ners. 2) A ref­er­ence for a trans­porta­tion network

as in “hub and spoke” which is com­mon in the air­line and truck­ing indus­try. For exam­ple, a hub air­port serves as the

focal point for the ori­gin and ter­mi­na­tion of long-​distance flights where flights from out­ly­ing areas are fed into the

hub air­port for con­nect­ing flights. 3) A com­mon con­nec­tion point for devices in a net­work. 4) A Web “hub” is one of

the ini­tial names for what is now known as a “por­tal”. It came from the cre­ative idea of pro­duc­ing a web­site, which

would con­tain many dif­fer­ent “por­tal spots” (small boxes that looked like ads, with links to dif­fer­ent yet related

con­tent). This con­tent, com­bined with Inter­net tech­nol­ogy, made this idea a mile­stone in the devel­op­ment and

appear­ance of web­sites, pri­mar­ily due to the abil­ity to dis­play a lot of use­ful con­tent and store one’s preferred

infor­ma­tion on a secured server. The web term “hub” was replaced with portal.

Hub Air­port: An air­port that serves as the focal point for the ori­gin and ter­mi­na­tion of long-​distance flights; flights

from out­ly­ing areas are fed into the hub air­port for con­nect­ing flights.


I

IATA: See Inter­na­tional Air Trans­port Asso­ci­a­tion

Import: Move­ment of prod­ucts from one coun­try into another. The import of auto­mo­biles from Ger­many to the U.S.

is an example.

Impor­ta­tion Point: The loca­tion (port, air­port or bor­der cross­ing) where goods will be cleared for impor­ta­tion into

a country.

Import/​Export License: Offi­cial autho­riza­tion issued by a gov­ern­ment agency which allows for the trans­port of

goods across their national bound­aries. Licenses may be required for all, or only spe­cific classes of commodities.

Importer Secu­rity Fil­ing (ISF): Rule that requires importers, or their agents, to trans­mit an Importer Security

Fil­ing to CBP, for cargo des­tined to the United States no later than 24 hours before cargo is laden aboard a vessel

des­tined to a United States port. An ISF is required for all USA des­tined cargo and all IE and T&E ship­ments that

enter a US Port.

In Bond: Goods are held or trans­ported In-​Bond under cus­toms con­trol either until import duties or other charges

are paid, or to avoid pay­ing the duties or charges until a later date.

Inbound Logis­tics: The move­ment of mate­ri­als from sup­pli­ers and ven­dors into pro­duc­tion processes or storage

facilities.

INCOTERMS: Inter­na­tional terms of sale devel­oped by the Inter­na­tional Cham­ber of Com­merce to define sellers’

and buy­ers’ responsibilities.

Inspec­tion Cer­tifi­cate: A doc­u­ment cer­ti­fy­ing that mer­chan­dise (such as per­ish­able goods) was in good condition

imme­di­ately prior to shipment.

Inter­modal Trans­porta­tion: Trans­port­ing freight by using two or more trans­porta­tion modes such as by truck and

rail or truck and ocean­go­ing vessel.

Inter­modal Con­tainer Trans­fer Facil­ity: A facil­ity where cargo is trans­ferred from one mode of trans­porta­tion to

another, usu­ally from ship or truck to rail.

Inter­na­tional Air Trans­port Asso­ci­a­tion (IATA): An inter­na­tional air car­rier rate bureau for pas­sen­ger and

freight movements.

Inter­na­tional Stan­dards Orga­ni­za­tion (ISO): An orga­ni­za­tion within the United Nations to which all national and

other stan­dard set­ting bod­ies (should) defer. Devel­ops and mon­i­tors inter­na­tional stan­dards, includ­ing OSI,

EDI­FACT, and X.400

Inter­na­tional Traf­fic in Arms Reg­u­la­tions (ITAR): U.S. State Depart­ment reg­u­la­tions that gov­ern the export of

restricted prod­uct, ser­vice or tech­nol­ogy to for­eign states.

Inven­tory: Com­po­nents, raw mate­ri­als, work in process, fin­ished goods and sup­plies required for the cre­ation of

goods and ser­vices; it can also refer to the num­ber of units and/​or value of the stock of goods held by a company.

Inven­tory Accu­racy: This is when the on-​hand quan­tity is equiv­a­lent to the per­pet­ual bal­ance (plus or minus the

des­ig­nated count tol­er­ances). It can often be referred to as a per­cent­age show­ing the vari­ance between book

inven­tory and actual count. This is a major per­for­mance met­ric for any orga­ni­za­tion which man­ages large

inventories.

Note: Typ­i­cal min­i­mum and best prac­tice aver­ages would be 95% and 99%.

Inven­tory Man­age­ment: The process of ensur­ing the avail­abil­ity of prod­ucts through inven­tory administration.

ISO: See Inter­na­tional Stan­dards Orga­ni­za­tion


Item: A uniquely iden­ti­fi­able piece of inven­tory. Also known as a part num­ber or SKU, an item can be raw materials,

flu­ids, com­po­nent parts, sub­assem­blies, fin­ished assem­blies, pack­ag­ing, etc. Usu­ally dif­fer­en­ti­ated by form, fit or

func­tion. Items which are painted dif­fer­ent col­ors are gen­er­ally viewed as dif­fer­ent items.

J

Just-​in-​Time (JIT): An inven­tory con­trol sys­tem that con­trols mate­r­ial flow into assem­bly and manufacturing

plants by coor­di­nat­ing demand and sup­ply to the point where desired mate­ri­als arrive just in time for use. An

inven­tory reduc­tion strat­egy that feeds pro­duc­tion lines with prod­ucts deliv­ered “just in time”. Devel­oped by the

auto indus­try, it refers to ship­ping goods in smaller, more fre­quent lots.

K

Key Per­for­mance Indi­ca­tor (KPI): A mea­sure which is of strate­gic impor­tance to a com­pany or depart­ment. For

exam­ple, a sup­ply chain flex­i­bil­ity met­ric is Sup­plier On-​time Deliv­ery Per­for­mance which indi­cates the per­cent­age of

orders that are ful­filled on or before the orig­i­nal requested date.

See also: Score­card

Kit­ting: Light assem­bly of com­po­nents or parts into defined units ahead of pro­duc­tion issue or cus­tomer shipment.

Kit­ting reduces the need to main­tain an inven­tory of pre-​built com­pleted prod­ucts, but increases the time and labor

con­sumed at shipment.

KPI: See Key Per­for­mance

Indi­ca­tor

L

Lad­ing: The cargo car­ried in a trans­porta­tion vehicle.

Lane: A major origin-​destination pair, i.e., traf­fic lane, an origin-​destination pair­ing. A man­u­fac­turer in Chicago

ships to a des­ti­na­tion in New York, pro­duc­ing the Chicago to New York traf­fic lane.

Leg: A por­tion of a com­plete trip which has an ori­gin, des­ti­na­tion, and car­rier and is com­posed of all consecutive

seg­ments of a route booked through the same carrier.

Less-​Than-​Truckload (LTL): Goods weigh­ing less than 10,000 pounds from sev­eral ship­pers loaded onto one trailer.

Lessee: A per­son or firm to whom a lease is granted.

Lessor: A per­son or firm that grants a lease.

Let­ter of credit: An inter­na­tional busi­ness doc­u­ment that assures the seller that pay­ment will be made by the bank

issu­ing the let­ter of credit upon ful­fill­ment of the sales agreement.

Lift Truck: Vehi­cles used to lift, move, stack, rack, or oth­er­wise manip­u­late loads. Mate­r­ial han­dling peo­ple use a

lot of terms to describe lift trucks, some terms describe spe­cific types of vehi­cles, oth­ers are slang terms or trade

names that peo­ple often mis­tak­enly use to describe trucks. Terms include indus­trial truck, fork­lift, reach truck,

motor­ized pal­let trucks, tur­ret trucks, coun­ter­bal­anced fork­lift, walkie, rider, walkie rider, walkie stacker, straddle

lift, side loader, order pick­ers, high lift, cherry picker, Jeep, Tow motor, Yale, Crown, Hys­ter, Ray­mond, Clark,

Drexel.


Line-​haul Ship­ment: A ship­ment that moves between cities and dis­tances over 100 to 150 miles.

Line: 1) An area within a pro­duc­tion or assem­bly facil­ity where man­u­fac­tur­ing occurs in a lin­ear fash­ion, passing

prod­ucts through one level of com­ple­tion on to the next process. 2) A unique item order line on a cus­tomer or

pur­chase order.

Link: The trans­porta­tion method used to con­nect the nodes (plants, ware­houses) in a logis­tics system.

Load­ing Port: The port where the cargo is loaded onto the export­ing ves­sel. This port must be reported on the

Shipper’s Export Dec­la­ra­tion, Sched­ule D and is used by U.S. com­pa­nies to deter­mine which tar­iff is used to freight

rate the cargo for car­ri­ers with more than one tariff.

LOC: See Line of Credit

Local Rate: A rate pub­lished between two points served by one carrier.

Local Ser­vice Car­ri­ers: An air car­rier clas­si­fi­ca­tion of car­ri­ers that oper­ate between areas of lesser and major

pop­u­la­tion cen­ters. These car­ri­ers feed pas­sen­gers into the major cities to major hubs.

Logis­tics: The process of plan­ning, imple­ment­ing, and con­trol­ling pro­ce­dures for the effi­cient and effective

trans­porta­tion and stor­age of goods includ­ing ser­vices, and related infor­ma­tion from the point of ori­gin to the point

of con­sump­tion for the pur­pose of con­form­ing to cus­tomer require­ments. This def­i­n­i­tion includes inbound, outbound,

inter­nal, and exter­nal movements.

Logis­tics Chan­nel: The net­work of sup­ply chain par­tic­i­pants engaged in stor­age, han­dling, trans­fer, transportation,

and com­mu­ni­ca­tions func­tions that con­tribute to the effi­cient flow of goods.

Logis­tics Ser­vice Provider (LSP): Any busi­ness which pro­vides logis­tics ser­vices. Includes those businesses

typ­i­cally referred to as 3PL, 4PL, LLP, etc. Ser­vices may include pro­vi­sion­ing, trans­port, ware­hous­ing, pack­ag­ing, etc.

M

Major car­rier: A for-​hire cer­tifi­cated air car­rier that has annual oper­at­ing rev­enues of $1 bil­lion or more: the carrier

usu­ally oper­ates between major pop­u­la­tion centers.

Man­i­fest: A doc­u­ment which describes indi­vid­ual orders con­tained within a shipment.

Merge in Tran­sit: The process of com­bin­ing or “merg­ing” ship­ments from mul­ti­ple sup­pli­ers which are going

directly to the buyer or to the store, bypass­ing the seller. Effec­tively this is a “drop ship­ment” from sev­eral vendors

to one buyer, which is being com­bined at an inter­me­di­ary point prior to delivery.

Mile­stone: The set of spe­cific dead­lines or mea­sure­ment /​deci­sions points which are used to progress in completing

an Ini­tia­tive. Mile­stones include spe­cific com­ple­tion dates or rates.

Mode: See Trans­porta­tion Mode

N

NAFTA: See North Amer­i­can Free Trade Agree­ment

National Car­rier: A for-​hire cer­tifi­cated air car­rier that has annual oper­at­ing rev­enues of $75 mil­lion to $1 billion;

the car­rier usu­ally oper­ates between major pop­u­la­tion cen­ters and areas of lesser population.

Net­work Opti­miza­tion: A process or method­ol­ogy to make a net­work as fully per­fect, func­tional, effec­tive or

effi­cient as pos­si­ble. The use of math­e­mat­ics may be involved to find the best solution.

Net­work Plan­ning: An inven­tory dis­tri­b­u­tion or trans­porta­tion plan­ning strat­egy which attempts to opti­mize the

time/​cost of travel or cost of hold­ing inven­tory across mul­ti­ple sites.


Next Flight Out: An expe­dited method for trans­port­ing time-​critical ship­ments by air. Ship­ments sent by NFO will be

on the next flight leav­ing your city.

Node: A fixed point in a firm’s logis­tics sys­tem where goods come to rest; includes plants, ware­houses, supply

sources, and markets.

Non-​Compliance: Fail­ure or refusal to do as requested by higher author­ity or as pre­scribed by a set of rules that

describe cor­rect pro­ce­dure to fol­low (i.e., rules on haz­ardous waste disposal).

Non-​Durable goods: Goods whose ser­vice life is con­sid­ered to be less than three years.

See also: Durable Goods

Non-​Vessel-​Owning Com­mon Car­rier (NVOCC): A firm that offers the same ser­vices as an ocean car­rier, but

which does not own or oper­ate a ves­sel. NVOCCs usu­ally act as con­sol­ida­tors, accept­ing small ship­ments (LCL) and

con­sol­i­dat­ing them into full con­tainer loads. They also con­sol­i­date and dis­perse inter­na­tional con­tain­ers that

orig­i­nate at or are bound for inland ports. They then act as a ship­per, ten­der­ing the con­tain­ers to ocean common

car­ri­ers. They are required to file tar­iffs with the Fed­eral Mar­itime Com­mis­sion and are sub­ject to the same laws and

statutes that apply to pri­mary com­mon carriers.

Non­con­for­mity: A qual­ity man­age­ment event that cap­tures the fail­ure to meet spec­i­fied inspec­tion or testing

requirements.

North Amer­i­can Free Trade Agree­ment (NAFTA): A free trade agree­ment, imple­mented Jan­u­ary 1, 1994,

between Canada, the United States and Mex­ico. It includes mea­sures for the elim­i­na­tion of tar­iffs and non-​tariff

bar­ri­ers to trade, as well as many more spe­cific pro­vi­sions con­cern­ing the con­duct of trade and invest­ment that

reduce the scope for gov­ern­ment inter­ven­tion in man­ag­ing trade.

O

Ocean Bill of Lad­ing: The bill of lad­ing issued by the ocean car­rier to its customer.

Off­shoring: The prac­tice of mov­ing domes­tic oper­a­tions such as man­u­fac­tur­ing to another country.

On Time Deliv­ery: A met­rics which is defined as % of receipts that were received by the cus­tomers on time.

Opti­miza­tion: The process of mak­ing some­thing as good or as effec­tive as pos­si­ble with given resources and

constraints.

Order: A type of request for goods or ser­vices such as a pur­chase order, sales order, work order, etc.

Order Batch­ing: Prac­tice of com­pil­ing and col­lect­ing orders before they are sent in to the manufacturer.

Order Man­age­ment: The process of man­ag­ing activ­i­ties involved in cus­tomer orders, man­u­fac­tur­ing orders, and

pur­chase orders. For cus­tomer orders this includes order entry, pick­ing, pack­ing, ship­ping, and billing. For

man­u­fac­tur­ing it includes order release, rout­ing, pro­duc­tion mon­i­tor­ing, and receipt to inven­tory. For POs the

activ­i­ties are order place­ment, mon­i­tor­ing, receiv­ing, and acceptance.

Ori­gin: The place where a ship­ment begins its movement.

Out­bound Con­sol­i­da­tion: Con­sol­i­da­tion of a num­ber of small ship­ments for var­i­ous cus­tomers into a larger load.

The large load is then shipped to a loca­tion near the cus­tomers where it is bro­ken down and then the small

ship­ments are dis­trib­uted to the cus­tomers. This can reduce over­all ship­ping charges where many small packet or

par­cel ship­ments are han­dled each day.

See also: Break-​Bulk

Out­bound Logis­tics: The process related to the move­ment and stor­age of prod­ucts from the end of the production

line to the end user.

Over-​the-​road: A motor car­rier oper­a­tion that reflects long-​distance, inter­city moves; the oppo­site of local

operations.


P

Pack Out: In a ful­fill­ment envi­ron­ment this refers to the oper­a­tions involved in pack­ag­ing and pal­letiz­ing individual

units of prod­uct for intro­duc­tion into the ware­house dis­tri­b­u­tion envi­ron­ment. For exam­ple, a con­tract 3PL may

received or assem­ble units of prod­uct which need to be placed into retail pack­ag­ing, then over­packed with a carton

and then palletized.

Pack­age to Order: A post­pone­ment strat­egy where prod­ucts are received in bulk or man­u­fac­tured with­out final

pack­ag­ing to allow for a vari­ety of pack­ag­ing options for a sin­gle prod­uct. An exam­ple is where a prod­uct is shipped

to retail­ers with pack­ag­ing designed specif­i­cally for the indi­vid­ual retailer.

Pal­let: The plat­form which car­tons are stacked on and then used for ship­ment or move­ment as a group. Pal­lets may

be made of wood or com­pos­ite mate­ri­als. Some pal­lets have elec­tronic track­ing tags (RFID) and most are recy­cled in

some manner.

Pal­let Jack: Mate­r­ial han­dling equip­ment con­sist­ing of two broad par­al­lel pal­let forks on small wheels used in the

ware­house to move pal­lets of prod­uct, but not hav­ing the lift­ing capa­bil­ity of a fork­lift. It may be a motor­ized unit

guided by an oper­a­tor who stands on a plat­form; or it may be a motor­ized or man­ual unit guided by an oper­a­tor who

is walk­ing behind or beside it. Comes as a “sin­gle” (one pal­let) or “dou­ble” (two pallets).

Pal­let Rack: A sin­gle or multi-​level struc­tural stor­age sys­tem that is uti­lized to sup­port high stack­ing of sin­gle items

or pal­letized loads.

Per­fect Order: The def­i­n­i­tion of a per­fect order is one which meets all of the following

cri­te­ria: Deliv­ered com­plete, with all items on the order in the quan­tity requested.

Deliv­ered on time to customer’s request date, using the customer’s def­i­n­i­tion of on-​time delivery.

Deliv­ered with com­plete and accu­rate doc­u­men­ta­tion sup­port­ing the order, includ­ing pack­ing slips, bills of lading,

and invoices.

Deliv­ered in per­fect con­di­tion with the cor­rect con­fig­u­ra­tion, cus­tomer ready, with­out dam­age, and fault­lessly in–

stalled (as applicable).

Pick/​Pack: Pick­ing of prod­uct from inven­tory and pack­ing into ship­ment containers.

Pick-​Up Order: doc­u­ment indi­cat­ing the author­ity to pick up cargo or equip­ment from a spe­cific location.

Pick­ing: The oper­a­tions involved in pulling prod­ucts from stor­age areas to com­plete a cus­tomer order.

Pickup and Deliv­ery (P&D): A type of trans­porta­tion, usu­ally local, where the car­rier fol­lows a reg­u­lar route

mak­ing deliv­er­ies and pick­ing up shipment.

PLU: See Price Look-​Up

PO: See Pur­chase Order

POD: See Proof of Deliv­ery

Pool­ing: A ship­ping term for the prac­tice of com­bin­ing ship­ment from mul­ti­ple ship­pers into a truck­load in order to

reduce ship­ping charges.

Port: A har­bor, air­port or other facil­ity where ships will anchor, planes will land or trucks and trains will enter.

Port Author­ity: A state or local gov­ern­ment that owns, oper­ates, or oth­er­wise pro­vides wharf, dock, and other

ter­mi­nal invest­ments at ports.

Port of Dis­charge: Port where ves­sel is off loaded.

Port of Entry: A port at which for­eign goods are admit­ted into the receiv­ing country.

Port of Load­ing: Port where cargo is loaded aboard the vessel.


Post­pone­ment: The delay of final activ­i­ties (i.e., assem­bly, pro­duc­tion, pack­ag­ing, etc.) until the lat­est possible

time. A strat­egy used to elim­i­nate excess inven­tory in the form of fin­ished goods which may be pack­aged in a

vari­ety of con­fig­u­ra­tions and to max­i­mize the oppor­tu­nity to pro­vide a cus­tomized end prod­uct to the customer.

Pre­paid: A freight term, which indi­cates that charges are to be paid by the ship­per. Pre­paid ship­ping charges may

be added to the cus­tomer invoice, or the cost may be bun­dled into the pric­ing for the product.

Price Look-​Up (PLU): Used for retail prod­ucts sold loose, bunched or in bulk (to iden­tify the dif­fer­ent types of fruit,

say). As opposed to UPC (Uni­ver­sal Prod­uct Codes) for pack­aged, fixed weight retail items. A PLU code con­tains 45

dig­its in total. The PLU is entered before an item is weighed to deter­mine a price.

Pri­vate Car­rier: A car­rier that pro­vides trans­porta­tion ser­vice to the firm and that owns or leases the vehi­cles and

does not charge a fee. Pri­vate motor car­ri­ers may haul at a fee for wholly-​owned subsidiaries.

Pri­vate Label: Prod­ucts that are designed, pro­duced, con­trolled by, and which carry the name of the store or a

name owned by the store; also known as a store brand or dealer brand. An exam­ple would be Wal-Mart’s “Sam’s

Choice” products.

Pri­vate Ware­house: A ware­house that is owned by the com­pany using it.

Pro Num­ber: Any pro­gres­sive or seri­al­ized num­ber applied for iden­ti­fi­ca­tion of freight bills, bills of lad­ing, etc.

Pro­cure­ment: The activ­i­ties asso­ci­ated with acquir­ing prod­ucts or ser­vices. The range of activ­i­ties can vary widely

between orga­ni­za­tions to include all of parts of the func­tions of pro­cure­ment plan­ning, pur­chas­ing, inven­tory control,

traf­fic, receiv­ing, incom­ing inspec­tion, and sal­vage operations.

Syn­onym: Pur­chas­ing

Prod­uct: Some­thing that has been or is being produced.

Prod­uct Char­ac­ter­is­tics: All of the ele­ments that define a product’s char­ac­ter, such as size, shape, weight, etc.

Prod­uct Con­fig­u­ra­tion: The arrange­ment of parts or com­po­nents to sat­isfy a customer’s demand by cre­at­ing a

product.

Prod­uct ID: A method of iden­ti­fy­ing a prod­uct with­out using a full descrip­tion. These can be dif­fer­ent for each

doc­u­ment type and must, there­fore, be cap­tured and related to the doc­u­ment in which they were used. They must

then be related to each other in context.

Prod­uct Life Cycle: The life of a prod­uct in a mar­ket with respect to busi­ness sales and prof­its over time. There are

five stages to the prod­uct life cycle: prod­uct devel­op­ment, intro­duc­tion, growth, matu­rity and decline.

Prod­uct Life Cycle Man­age­ment (PLM): The process of man­ag­ing the entire life­cy­cle of a prod­uct from its

con­cep­tion, design, devel­op­ment and man­u­fac­ture, to man­age­ment of its intro­duc­tion, growth and decline.

Project Cargo: Arrang­ing move­ment of goods and mate­ri­als in non-​standard pack­ages by non-​standard meth­ods to

or from non-​standard des­ti­na­tions. It is often time sensitive.

Proof of Deliv­ery (POD): Infor­ma­tion sup­plied by the car­rier con­tain­ing the name of the per­son who signed for the

ship­ment, the time and date of deliv­ery, and other ship­ment deliv­ery related infor­ma­tion. POD is also sometimes

used to refer to the process of print­ing mate­ri­als just prior to ship­ment (Print on Demand).

Pur­chase Order (PO): The purchaser’s autho­riza­tion used to for­mal­ize a pur­chase trans­ac­tion with a sup­plier. The

phys­i­cal form or elec­tronic trans­ac­tion a buyer uses when plac­ing order for merchandise.

Pur­chase Order Man­age­ment: The man­age­ment of pur­chase orders.

Q


Qual­ity Con­trol (QC): The man­age­ment func­tion that attempts to ensure that the foods or ser­vices manufactured

or pur­chased meet the prod­uct or ser­vice specifications.

R

Radio Fre­quency (RF): A form of wire­less com­mu­ni­ca­tions that lets users relay infor­ma­tion via electromagnetic

energy waves from a ter­mi­nal to a base sta­tion, which is linked in turn to a host com­puter. The ter­mi­nals can be

place at a fixed sta­tion, mounted on a fork­lift truck, or car­ried in the worker’s hand. The base sta­tion con­tains a

trans­mit­ter and receiver for com­mu­ni­ca­tion with the ter­mi­nals. RF sys­tems use either narrow-​band or spread–

spec­trum trans­mis­sions. Narrow-​band data trans­mis­sions move along a sin­gle lim­ited radio fre­quency, while spread–

spec­trum trans­mis­sions move across sev­eral dif­fer­ent fre­quen­cies. When com­bined with a bar-​code sys­tem for

iden­ti­fy­ing inven­tory items, a radio-​frequency sys­tem can relay data instantly, thus updat­ing inven­tory records in so–

called “real time.”

Radio Fre­quency Iden­ti­fi­ca­tion (RFID): The use of radio fre­quency tech­nol­ogy includ­ing RFID tags and tag

read­ers to iden­tify objects. Objects may include vir­tu­ally any­thing phys­i­cal, such as equip­ment, pal­lets of stock, or

even indi­vid­ual units of prod­uct. RFID tags can be active or pas­sive. Active tags con­tain a power source and emit a

sig­nal con­stantly. Pas­sive tags receive power from the radio waves sent by the scan­ner /​reader. The inherent

advan­tages of RFID over bar code tech­nol­ogy are: 1) the abil­ity to be read over longer dis­tances, 2) the elimination

of require­ment for “line of sight” read­abil­ity, 3) added capac­ity to con­tain infor­ma­tion, and 4) RFID tag data can be

updated /​changed.

Receiv­ing: The func­tion of tak­ing phys­i­cal receipt of mate­r­ial and per­form­ing ini­tial inspec­tion of the incoming

ship­ment for dam­age and val­i­da­tion with respect to pur­chase order quan­tity. Typ­i­cally includes some ini­tial data

record­ing, but not qual­ity assur­ance or stocking.

Receiv­ing Dock: Dis­tri­b­u­tion cen­ter loca­tion where the actual phys­i­cal receipt of the pur­chased mate­r­ial from the

car­rier occurs.

Recon­sign­ment: A car­rier ser­vice that per­mits chang­ing the des­ti­na­tion and/​or con­signee after the ship­ment has

reached its orig­i­nally billed des­ti­na­tion and pay­ing the through rate from ori­gin to final destination.

Redis­tri­b­u­tion: A trend in the food­ser­vice dis­tri­b­u­tion busi­ness where a large “redis­trib­u­tor” such as SYSCO or Dot

Foods will pur­chase in truck­load quan­ti­ties from the food man­u­fac­tur­ers and ware­house the prod­ucts. Individual

smaller dis­trib­u­tors can then pur­chase mul­ti­ple man­u­fac­tur­ers’ prod­ucts from the redis­trib­u­tor and fill up an entire

truck to save on ship­ping costs.

Reefer: A term used for refrig­er­ated vehicles.

Refrig­er­ated Car­ri­ers: Truck­load car­ri­ers designed to keep per­ish­ables good refrig­er­ated. The food industry

typ­i­cally uses this type of carrier.

Reman­u­fac­tur­ing /​ Refur­bish­ing: Refers to the re-​work per­formed on returned items to make the items saleable.

Note that prod­ucts made avail­able for sale in this man­ner must be appro­pri­ately labeled as such.

Replen­ish­ment: The process of mov­ing or re-​supplying inven­tory from a reserve (or upstream) stor­age loca­tion to

a pri­mary (or down­stream) storage/​picking loca­tion, or to another mode of stor­age in which pick­ing is performed.

Request for Infor­ma­tion (RFI): A doc­u­ment used to solicit infor­ma­tion about ven­dors, prod­ucts, and services

prior to a for­mal RFQ/​RFP process.

Request for Pro­posal (RFP): A doc­u­ment, which pro­vides infor­ma­tion con­cern­ing needs and require­ments for a

man­u­fac­turer. This doc­u­ment is cre­ated in order to solicit pro­pos­als from poten­tial sup­pli­ers. For, exam­ple, a

com­puter man­u­fac­turer may use a RFP to solicit pro­pos­als from sup­pli­ers of third party logis­tics services.

Request for Quote (RFQ): A for­mal doc­u­ment request­ing ven­dor responses with pric­ing and avail­abil­ity of

prod­ucts. RQFs are typ­i­cally solicited from a broad group of sup­pli­ers from which a nar­rower group will be selected

and asked to pro­vide a more detailed Request for Proposal.


Return Goods Han­dling: Processes involved with return­ing goods from the cus­tomer to the man­u­fac­turer. Products

may be returned because of per­for­mance prob­lems or sim­ply because the cus­tomer doesn’t like the product.

Reverse Logis­tics: A spe­cial­ized seg­ment of logis­tics focus­ing on the move­ment and man­age­ment of prod­ucts and

resources after the sale and after deliv­ery to the cus­tomer. Includes prod­uct returns for repair and/​or credit.

RF: See Radio Fre­quency

RFI: See Request for Infor­ma­tion

RFP: See Request for Pro­posal

RFQ: See Request for Quote

Roll-​On, Roll-​Off (RO-​RO): A type of ship designed to per­mit cargo to be dri­ven on at ori­gin and off at destination;

used exten­sively for the move­ment of automobiles.

RO-​RO: See Roll-​On, Roll-​Off

Rout­ing or Rout­ing Guide: 1) Process of deter­min­ing how ship­ment will move between ori­gin and destination.

Rout­ing infor­ma­tion includes des­ig­na­tion of carrier(s) involved, actual route of car­rier, and esti­mated time enroute.

2) Right of ship­per to deter­mine car­ri­ers, routes and points for trans­fer ship­ments. 3) In man­u­fac­tur­ing this is the

doc­u­ment which defines a process of steps used to man­u­fac­ture and/​or assem­ble a product.

S

SCAC: See Stan­dard Car­rier Alpha Code

SCAC Code: See Stan­dard Car­rier Alpha Code

Scan: A com­puter term refer­ring to the action of scan­ning bar codes or RF tags.

Sched­ule B: The Sched­ule B com­mod­ity code is the U.S. government’s numeric sys­tem of iden­ti­fy­ing all goods and

ser­vices for export.

Ser­ial Num­ber: A ser­ial num­ber is a unique num­ber assigned for iden­ti­fi­ca­tion which varies from its suc­ces­sor or

pre­de­ces­sor by a fixed dis­crete inte­ger value. Com­mon usage has expanded the term to refer to any unique

alphanu­meric iden­ti­fier for one of a large set of objects, how­ever in data pro­cess­ing and allied fields in computer

sci­ence. Not every numer­i­cal iden­ti­fier is a ser­ial num­ber; iden­ti­fy­ing num­bers which are not ser­ial num­bers are

some­times called nom­i­nal numbers.

Ser­ial Ship­ping Con­tainer Code: An 18-​character iden­ti­fi­ca­tion num­ber used to iden­tify con­tain­ers including

pal­lets and boxes pri­mar­ily for con­tain­ers which are a part of a ship­ment cov­ered by an Auto­mated Ship­ment Notice

(ASN).

Ser­vice Level: A met­ric, shown as a per­cent­age, which cap­tures the abil­ity to sat­isfy demand or responsiveness.

Order fill rates and machine or process up-​time are exam­ples of ser­vice level measures.

Ser­vice Level Agree­ment (SLA): May be used in lieu of a con­tract to rep­re­sent and doc­u­ment the terms of the

per­for­mance based agree­ment for organic support.

Ship Agent: A liner com­pany or tramp ship oper­a­tor rep­re­sen­ta­tive who facil­i­tates ship arrival, clear­ance, loading

and unload­ing, and fee pay­ment while at a spe­cific port.

Ship Bro­ker: A firm that serves as a go-​between for the tramp ship owner and the char­ter­ing con­signor or

consignee.

Ship­per: The party that ten­ders goods for transportation.


Shipper-​Carrier: Shipper-​carriers (also called pri­vate car­ri­ers) are com­pa­nies with goods to be shipped that own or

man­age their own vehi­cle fleets. Many large retail­ers, par­tic­u­larly gro­ceries and “big box” stores, are shipper–

carriers.

Shipper’s Agent: A firm that acts pri­mar­ily to match up small ship­ments, espe­cially single-​traffic pig­gy­back loads to

per­mit use of twin-​trailer pig­gy­back rates.

Shipper’s Asso­ci­a­tion: A non­profit, coop­er­a­tive con­sol­ida­tor and dis­trib­u­tor of ship­ments owned or shipped by

mem­ber firms; acts in much the same was as for-​profit freight forwarders.

Shipper’s Let­ter of Instruc­tions (SLI): The doc­u­ment con­tain­ing instruc­tions by the ship­per or shipper’s agent for

prepar­ing doc­u­ments and forwarding.

Ship­ping: 1) The act of con­vey­ing mate­ri­als from one point to another. 2) The func­tional area which pre­par­ers the

out­go­ing ship­ment for transport.

Ship­ping Lane: A pre­de­ter­mined, mapped route on the ocean that com­mer­cial ves­sels tend to fol­low between

ports. This helps ships avoid haz­ardous areas. In gen­eral trans­porta­tion, the log­i­cal route between the point of

ship­ment and the point of deliv­ery used to ana­lyze the vol­ume of ship­ment between two points.

Ship­ping Man­i­fest: A doc­u­ment which is typ­i­cally pre­sented to the car­rier out­lin­ing the indi­vid­ual ship­ping orders

included in a ship­ment. The man­i­fest will show the ref­er­ence num­ber of each ship­ping order in the load, the weight

and count of boxes or con­tain­ers, and the destination.

Shrink­age: Refers to the loss of inven­tory count due to pil­fer­age, dam­age, spoilage, etc. Shrink­age can occur while

mate­r­ial is in stock and while it is in transit.

Silo: Relates to a man­age­ment /​orga­ni­za­tion style where each func­tional unit oper­ates inde­pen­dently, and with

lit­tle or no col­lab­o­ra­tion between them and other units regard­ing major busi­ness processes and issues.

Syn­onym: Fox­hole

Syn­onym: Stovepipe

SKU: See Stock Keep­ing Unit

SLA: See Ser­vice Level Agree­ment

Small Par­cel Ground (SPG): Mode of trans­porta­tion where the unit being trans­ported meets all of the following

descrip­tions: under 150 lbs, inside of 130 inches in length and girth com­bined, indi­vid­u­ally labeled, and can be

indi­vid­u­ally han­dled and trans­ported absent of a pal­let. Typ­i­cally bro­ken down for rat­ing pur­poses into separate

cat­e­gories for com­mer­cial and residential.

Special-​Commodities Car­rier: A com­mon car­rier truck­ing com­pany that has author­ity to haul a special

com­mod­ity; there are 16 spe­cial com­modi­ties, such as house­hold goods, petro­leum prod­ucts, and hazardous

materials.

Special-​Commodity Ware­houses: A ware­house that is used to store prod­ucts that require unique types of

facil­i­ties, such as grain (ele­va­tor), liq­uid (tank) and tobacco (barn).

SPG: See Small Par­cel Ground

Spot: To move a trailer or box­car into place for load­ing or unloading.

Stack Car: An inter­modal flat car designed to place one con­tainer on top of another for bet­ter uti­liza­tion and

eco­nom­ics. Also referred to as a well car because the cars are low­ered in the cen­ter to allow clear­ance when moving

under low-​lying structures.

Stan­dard Car­rier Alpha Code (SCAC or SCAC Code): A unique 2 to 4-​letter code assigned to transportation

com­pa­nies for iden­ti­fi­ca­tion pur­poses. SCAC codes are required for EDI, and are printed on bills of lad­ing and other

trans­porta­tion documents.

Steve­dores: Labor man­age­ment com­pa­nies that pro­vide equip­ment and hire work­ers to trans­fer con­tain­ers and

cargo between ships and docks.

Stock Keep­ing Unit (SKU): A cat­e­gory of unit with unique com­bi­na­tion of form, fit, and func­tion (i.e. unique

com­po­nents held in stock). To illus­trate: If two items are indis­tin­guish­able to the cus­tomer, or if any distinguishing


char­ac­ter­is­tics vis­i­ble to the cus­tomer are not impor­tant to the cus­tomer, so that the cus­tomer believes the two

items to be the same, these two items are part of the same SKU. As a fur­ther illus­tra­tion con­sider a computer

com­pany that allows cus­tomers to con­fig­ure a prod­uct from a stan­dard cat­a­logue com­po­nents, choos­ing from three

key­boards, three mon­i­tors, and three CPUs. Cus­tomers may also indi­vid­u­ally buy key­boards, mon­i­tors, and CPUs. If

the stock were held at the con­fig­u­ra­tion com­po­nent level, the com­pany would have nine SKUs. If the company

stocks at the com­po­nent level, as well as at the con­fig­ured prod­uct level, the com­pany would have 36 SKUs. (9

com­po­nent SKUs + 3×3×3 con­fig­ured prod­uct SKUs. If as part of a pro­mo­tional cam­paign the com­pany also

spe­cially pack­aged the prod­ucts, the com­pany would have a total of 72 SKUs.

Sup­plier: An indi­vid­ual or an orga­ni­za­tion who sup­plies goods or ser­vices to the com­pany. This is also sometimes

referred to as a ”ven­dor.” In some set­tings — where a com­pany pro­vides goods through a dis­tri­b­u­tion network—

net­work mem­bers may be referred to as sup­pli­ers, even though they are the imme­di­ate cus­tomers of the company.

Sup­ply Chain: 1) start­ing with unprocessed raw mate­ri­als and end­ing with the final cus­tomer using the finished

goods, the sup­ply chain links many com­pa­nies together. 2) the mate­r­ial and infor­ma­tional inter­changes in the

logis­ti­cal process stretch­ing from acqui­si­tion of raw mate­ri­als to deliv­ery of fin­ished prod­ucts to the end user. All

ven­dors, ser­vice providers and cus­tomers are links in the sup­ply chain.

Sup­ply Chain Exe­cu­tion (SCE): The abil­ity to move the prod­uct out the ware­house door. This is a crit­i­cal capacity

and one that only brick-​and-​mortar firms bring to the B2B table. Dot-​coms have the tech­nol­ogy, but that’s only part

of the equa­tion. The need for SCE is what is dri­ving the Dot-​coms to offer equity part­ner­ships to the wholesale

distributors.

Sup­ply Chain Inven­tory Vis­i­bil­ity: The abil­ity to visu­al­ize the sta­tus of inven­tory in the sup­ply chain from some

point upstream — begin­ning with the var­i­ous tiers of sup­pli­ers — on to down­stream — through dis­tri­b­u­tion and retail

chan­nels. In most cases, this will only be one level in each direc­tion; how­ever, it may include the abil­ity to access

sup­ply and demand infor­ma­tion at those points as well.

Sup­ply Chain Net­work Design Sys­tems: The sys­tems employed in opti­miz­ing the rela­tion­ships among the various

ele­ments of the sup­ply chain man­u­fac­tur­ing plants, dis­tri­b­u­tion cen­ters, points-​of-​sale, as well as raw materials,

rela­tion­ships among prod­uct fam­i­lies, and other factors-​to syn­chro­nize sup­ply chains at a strate­gic level.

T

Tare Weight: The weight of an empty vehi­cle or con­tainer. By sub­tract­ing it from the gross weight (laden weight),

the weight of the goods car­ried (the net weight) may be determined.

Tar­iff: A tax assessed by a gov­ern­ment on goods enter­ing or leav­ing a coun­try. The term is also used in

trans­porta­tion in ref­er­ence to the fees and rules applied by a car­rier for its services.

Tasks: The break­down of the work in an activ­ity into smaller elements.

Ten­der: The doc­u­ment which describes a busi­ness trans­ac­tion to be performed.

Terms and Con­di­tions (T’s & C’s): All the pro­vi­sions and agree­ments of a contract.

TEU: See Twenty-​foot Equiv­a­lent Unit

Third-​Party Logis­tics (3PL): Out­sourc­ing all or much of a company’s logis­tics oper­a­tions to a specialized

com­pany. The term “3PL” was first used in the early 1970s to iden­tify inter­modal mar­ket­ing com­pa­nies (IMCs) in

trans­porta­tion con­tracts. Up to that point, con­tracts for trans­porta­tion had fea­tured only two par­ties, the ship­per and

the car­rier. When IMCs entered the pic­ture — as inter­me­di­aries that accepted ship­ments from the ship­pers and

ten­dered them to the rail car­ri­ers — they became the third party to the con­tract, the 3PL. Def­i­n­i­tion has broad­ened to

the point where these days, every com­pany that offers some kind of logis­tics ser­vice for hire calls itself a 3PL.

Prefer­ably, these ser­vices are inte­grated, or “bun­dled,” together by the provider. Ser­vices they pro­vide are

trans­porta­tion, ware­hous­ing, cross-​docking, inven­tory man­age­ment, pack­ag­ing, and freight for­ward­ing. In 2008

leg­is­la­tion passed declar­ing that the legal def­i­n­i­tion of a 3PL is “A per­son who solely receives, holds, or otherwise

trans­ports a con­sumer prod­uct in the ordi­nary course of busi­ness but who does not take title to the product.”


Third-​Party Logis­tics Provider: A firm which pro­vides mul­ti­ple logis­tics ser­vices for use by cus­tomers. Preferably,

these ser­vices are inte­grated, or “bun­dled” together by the provider. These firms facil­i­tate the move­ment of parts

and mate­ri­als from sup­pli­ers to man­u­fac­tur­ers, and fin­ished prod­ucts from man­u­fac­tur­ers to dis­trib­u­tors and

retail­ers. Among the ser­vices which they pro­vide are trans­porta­tion, ware­hous­ing, cross-​docking, inventory

man­age­ment, pack­ag­ing, and freight forwarding.

Third-​Party Ser­vice Provider (3PSP): See Third-​Party Logis­tics (3PL)

Third-​Party Ware­hous­ing: The act of using a con­trac­tor to pro­vide ware­hous­ing ser­vices, and the name of the

indus­try which is involved in pro­vid­ing con­tract ware­hous­ing oper­a­tions for hire.

Through­put: A mea­sure of ware­hous­ing out­put vol­ume (weight, num­ber of units). Also, the total amount of units

received plus the total amount of units shipped, divided by two.

Time-​Definite Ser­vices: Deliv­ery is guar­an­teed on a spe­cific day or at a cer­tain time of the day.

Trac­ing: Deter­min­ing where a ship­ment is dur­ing the course of a move.

Trace­abil­ity: 1) The abil­ity to track the loca­tion of a ship­ment as it moves through the ship­ping process to the

cus­tomer. 2) The abil­ity to deter­mine the source of indi­vid­ual lot num­bered or ser­ial num­bered products.

Trac­ing: 1) Deter­min­ing where a ship­ment is dur­ing the course of a move. 2) The prac­tice of relat­ing resources,

activ­i­ties and cost objects using the dri­vers under­ly­ing their cost causal rela­tion­ships. The pur­pose of trac­ing is to

observe and under­stand how costs are aris­ing in the nor­mal course of busi­ness operations.

Syn­onym: Assign­ment

Track­ing and Trac­ing: Mon­i­tor­ing and record­ing ship­ment move­ments from ori­gin to destination.

Trac­tor: The trac­tor is the dri­ver com­part­ment and engine of the truck. It has two or three axles.

Trad­ing Part­ner: Com­pa­nies that do busi­ness with each other via EDI (e.g., send and receive busi­ness documents,

such as pur­chase orders).

Trad­ing Part­ner Agree­ment: The writ­ten con­tract that spells out agreed upon terms between EDI trading

partners.

Traf­fic: A depart­ment respon­si­ble for the process of deter­min­ing timely and eco­nomic deliv­ery meth­ods, arranging

inter­nal or exter­nal trans­porta­tion, and track­ing ship­ment sta­tus and logis­tics net­work issues.

Traf­fic Man­age­ment: The man­age­ment and con­trol­ling of trans­porta­tion modes, car­ri­ers and services.

Trailer: The part of the truck that car­ries the goods.

Trailer Drops: When a dri­ver drops off a full truck at a ware­house and picks up an empty one.

Trailer on a Flat­car (TOFC): Trans­port of truck trail­ers with their loads on spe­cially designed rail cars.

Syn­onym: Pig­gy­back

Trans­ac­tion: A sin­gle com­pleted trans­mis­sion, e.g., trans­mis­sion of an invoice over an EDI net­work. Anal­o­gous to

usage of the term in data pro­cess­ing, in which a trans­ac­tion can be an inquiry or a range of updates and trading

trans­ac­tions. The def­i­n­i­tion is impor­tant for EDI ser­vice oper­a­tors, who must inter­pret invoices and other documents.

Tran­sit Time: The total time that elapses between a shipment’s pickup and delivery.

Trans­porta­tion Mode: The method of trans­porta­tion: land, sea, or air shipment.

Trans­porta­tion Secu­rity Admin­is­tra­tion (TSA): TSA was cre­ated in response to the attacks of Sep­tem­ber 11th

and signed into law in Novem­ber 2001. TSA was orig­i­nally in the Depart­ment of Trans­porta­tion but was moved to

the Depart­ment of Home­land Secu­rity in March 2003. TSA’s mis­sion is to pro­tect the nation’s trans­porta­tion systems

by ensur­ing the free­dom of move­ment for peo­ple and commerce.

TSA: See Trans­porta­tion Secu­rity Admin­is­tra­tion


Turnover: 1) A cal­cu­la­tion of the num­ber of times the inven­tory of an item would be con­sumed dur­ing a period

given aver­age inven­tory lev­els and consumption.

Twenty-​foot Equiv­a­lent Unit (TEU): Stan­dard unit for count­ing con­tain­ers of var­i­ous capac­i­ties and for

describ­ing the capac­i­ties of con­tainer ships or ter­mi­nals. One 20 Foot ISO con­tainer equals 1 TEU. One 40 Foot ISO

con­tainer equals two TEU. A 20 foot con­tainer is typ­i­cally 8.5 feet tall and 8 feet wide out­side and has an internal

capac­ity of 1170 square feet.

U

Uni­form Prod­uct Code (UPC): A stan­dard prod­uct num­ber­ing and bar cod­ing sys­tem used by the retail industry.

UPC codes are admin­is­tered by the Uni­form Code Coun­cil; they iden­tify the man­u­fac­turer as well as the item, and

are included on vir­tu­ally all retail packaging.

See also: GS1

Unit Cost: The cost asso­ci­ated with a sin­gle unit of prod­uct. The total cost of pro­duc­ing a prod­uct or ser­vice divided

by the total num­ber of units. The cost asso­ci­ated with a sin­gle unit of mea­sure under­ly­ing a resource, activity,

prod­uct or ser­vice. It is cal­cu­lated by divid­ing the total cost by the mea­sured vol­ume. Unit cost mea­sure­ment must

be used with cau­tion as it may not always be prac­ti­cal or rel­e­vant in all aspects of cost management.

UPC: See Uni­form Prod­uct Code

V

Val­i­da­tion: To check whether a doc­u­ment is the cor­rect type for a par­tic­u­lar EDI sys­tem, as agreed upon by the

trad­ing part­ners, in order to deter­mine whether the doc­u­ment is going to or com­ing from an autho­rized EDI user.

Value Added: Increased or improved value, worth, func­tion­al­ity or usefulness.

Value-​Adding/​Nonvalue-​Adding: Assess­ing the rel­a­tive value of activ­i­ties accord­ing to how they con­tribute to

cus­tomer value or to meet­ing an organization’s needs. The degree of con­tri­bu­tion reflects the influ­ence of an

activity’s cost driver(s).

Vari­able Cost: A cost that fluc­tu­ates with the vol­ume or activ­ity level of business.

Ven­dor: The man­u­fac­turer or dis­trib­u­tor of an item or prod­uct line.

See also: Sup­plier

Ven­dor Code: A unique iden­ti­fier, usu­ally a num­ber and some­times the company’s DUNS num­ber, assigned by a

Cus­tomer for the Ven­dor it buys from. Exam­ple; a Gro­cery Store Chain buys Oreo’s from Nabisco. The Grocery

Store Chain, for account­ing pur­poses, iden­ti­fies Nabisco as Ven­dor #76091. One com­pany can have mul­ti­ple vendor

codes. Exam­ple; Welch’s Foods sells many dif­fer­ent prod­ucts. Frozen grape juice con­cen­trate, chilled grape juice,

bot­tled grape juice, and grape jelly. Because each of these items is a dif­fer­ent type of prod­uct, frozen food, chilled

food, bev­er­ages, dry food, they may have a dif­fer­ent buyer at the Gro­cery Store Chain, requir­ing a dif­fer­ent vendor

code for each prod­uct line.

Ves­sel: A float­ing struc­ture designed for transport.

Vis­i­bil­ity: The abil­ity to access or view per­ti­nent data or infor­ma­tion as it relates to logis­tics and the sup­ply chain,

regard­less of the point in the chain where the data exists.

W


Ware­house: Stor­age place for prod­ucts. Prin­ci­pal ware­house activ­i­ties include receipt of prod­uct, storage,

ship­ment, and order picking.

Ware­hous­ing: The stor­ing (hold­ing) of goods.

Ware­house Man­age­ment Sys­tem (WMS): The sys­tems used in effec­tively man­ag­ing ware­house business

processes and direct ware­house activ­i­ties, includ­ing receiv­ing, put­away, pick­ing, ship­ping, and inven­tory cycle

counts. Also includes sup­port of radio-​frequency com­mu­ni­ca­tions, allow­ing real-​time data trans­fer between the

sys­tem and ware­house per­son­nel. They also max­i­mize space and min­i­mize mate­r­ial han­dling by automating

put­away processes.

Way­bill: Doc­u­ment con­tain­ing descrip­tion of goods that are part of com­mon car­rier freight ship­ment. Show origin,

des­ti­na­tion, consignee/​consignor, and amount charged. Copies travel with goods and are retained by

originating/​delivering agents. Used by car­rier for inter­nal record and con­trol, espe­cially dur­ing tran­sit. Not a

trans­porta­tion contract.

Whole­saler: See Dis­trib­u­tor

WIP: See Work in Process

WMS: See Ware­house Man­age­ment Sys­tem

Work-​in-​Process (WIP): Parts and sub­assem­blies in the process of becom­ing com­pleted fin­ished goods. Work in

process gen­er­ally includes all of the mate­r­ial, labor and over­head charged against a pro­duc­tion order which has not

been absorbed back into inven­tory through receipt of com­pleted products.

X

Y

Z

#

10 + 2 Rule: A new rule insti­tuted by the United States Cus­toms and Bor­der Pro­tec­tions (US CBP). 10+2 requires

cargo infor­ma­tion, for secu­rity pur­poses, to be trans­mit­ted to the US CBP at least 24 hours before goods are loaded

onto an ocean ves­sel for ship­ment into the U.S. 10+2 is pur­suant to sec­tion 203 of the SAFE Port Act, and requires

importers to pro­vide 10 data ele­ments to the US CBP, as well as 2 more data ele­ments from the carrier.

· The fol­low­ing 10 data ele­ments are required from the

importer:

· Man­u­fac­turer (or sup­plier) name and address

· Seller (or owner) name and address

Buyer (or owner) name and

address Ship-​to name and address


· Con­tainer stuffing

location

· Con­sol­ida­tor (stuffer) name and

address

· Importer of record number/​foreign trade zone appli­cant iden­ti­fi­ca­tion number

· Consignee

number(s) Country

of origin

· Com­mod­ity Har­mo­nized Tar­iff Sched­ule number

· From the car­rier, 2 data ele­ments are

required: Ves­sel stow plan

· Con­tainer status

messages

3PL: See Third Party Logis­tics

4PL: See Fourth Party Logis­tics

We use cookies to improve our website and your experience when using it. Cookies used for the essential operation of the site have already been set. To find out more about the cookies we use and how to delete them, see our privacy policy.

I accept cookies from this site.

EU Cookie Directive Module Information