Guide to learn industry terms from A-Z
A
Active Shipment
Active shipment in logistics refers to a shipment that is currently in transit and being actively transported from the origin to the destination. An active shipment can be any type of goods or products that are being shipped via any mode of transportation, such as truck, ship, or airplane.
Add Shipment
Add shipment in logistics refers to the process of creating a new shipment record in a logistics management system. This can be done by a logistics company or by a business that is sending or receiving goods.
Advance Shipment Notice (ASN)
Advance Shipment Notice is an electronic document containing the information about an upcoming delivery. The ASN is sent by the carrier company or seller to the customer with all the details such as the product, quantity and other details of the product.
Air Pillow
An air pillow in logistics is a type of packaging material used to protect and cushion products during shipping and handling. It is a lightweight and inflatable packaging material that is made of plastic and designed to fill empty spaces inside packages to prevent the contents from moving around.
Airway Bill
An airway bill in logistics is a document used in air freight to provide details about a shipment, including the origin, destination, and contents of the package. It is a contract between the shipper and the carrier that serves as proof of receipt and serves as a tracking document for the shipment.
Ambient Storage
Ambient storage in logistics refers to the storage of goods at room temperature or normal environmental conditions without any additional temperature control or regulation. Ambient storage is suitable for products that are stable at room temperature and do not require any special storage conditions.
Application Programming Interface (API)
An Application Programming Interface (API) in logistics is a set of protocols, routines, and tools used to develop software applications that interact with logistics systems and data. An API is essentially a set of guidelines and standards for accessing and exchanging data between software applications.
Average Order Value
Average Order Value (AOV) in logistics refers to the average amount of money spent by a customer per order placed. It is calculated by dividing the total revenue generated by the number of orders placed over a specific period.
B
Backorder
Backorder refers to an order for a product that cannot be fulfilled immediately because the item is out of stock or unavailable at the time of purchase. Instead of canceling the order, the seller puts it on "backorder," which means that the product will be delivered as soon as it becomes available.
Barcode
A barcode is a visual representation of data that is used to track and identify products, packages, and other items as they move through the supply chain. A barcode consists of a series of vertical bars of varying thickness and spacing that encode information in a format that can be read by a barcode scanner.
Batch Picking
Batch picking is a method of order fulfillment where multiple orders are picked at the same time in a single pass through a warehouse or distribution center. In batch picking, a worker will pick all the items required for several orders simultaneously, instead of picking items for each individual order separately.
Bill of Material (BOM)
A bill of materials (BOM) is a detailed list of all the components, parts, and raw materials needed to produce a finished product. The BOM serves as a roadmap for the manufacturing process, providing a clear understanding of what is required to create the product and how it should be assembled.
Bins
Bins refer to physical storage locations within a warehouse or distribution center where products are stored. Bins can take many forms, such as shelves, racks, pallets, or containers, and they are typically labeled or numbered to help identify and locate products quickly and efficiently.
Booking
Booking refers to the process of making a reservation or arranging for the transportation of goods or cargo from one location to another. Booking typically involves working with a carrier or freight forwarder to secure transportation services, which can include shipping by air, sea, or land.
Booking Number
A booking number is a unique reference number assigned to a shipment when it is booked with a carrier or freight forwarder for transportation. The booking number is typically provided to the shipper or logistics provider as a confirmation of the booking and is used to track the shipment throughout the transportation process.
Box
A box is a standardized container used for storing, transporting, and handling goods. Boxes can come in a variety of shapes and sizes, and they are typically made from materials such as cardboard, plastic, or wood.
Bulk Freight
Bulk freight refers to large quantities of goods or cargo that are transported in bulk, typically without any packaging or containers. Bulk freight can include dry goods such as grains, coal, or minerals, as well as liquids such as crude oil, chemicals, or liquefied natural gas.
Bulk Storage
Bulk storage refers to the storage of large quantities of goods or materials that are not packaged or contained individually. Bulk storage is typically used for materials that are stored in large quantities and are uniform in nature, such as grains, liquids, or chemicals.
C
Capacity/ Weight (Container)
Capacity/ Weight refers to the maximum amount of cargo that a container can hold or the maximum weight that a container can support. Container capacity/weight is typically measured in twenty-foot equivalent units (TEUs) or forty-foot equivalent units (FEUs), which are standardized measurements used in the shipping industry to describe the capacity of shipping containers.
Capital
Capital refers to the financial resources required to operate a logistics business or to invest in logistics infrastructure and equipment. Capital is essential for funding the day-to-day operations of a logistics company, as well as for investing in new technologies, facilities, and equipment to support growth and improve efficiency.
Cardboard Box
A cardboard box is a type of packaging material that is widely used to transport and store goods. Cardboard boxes are made from corrugated cardboard, which consists of a fluted layer of material sandwiched between two flat layers of cardboard. This construction provides strength and durability to the box while also making it lightweight.
Carnet
A Carnet, also known as an ATA Carnet or Merchandise Passport, is an international customs document that facilitates the temporary importation of goods into a foreign country without the need for payment of duties or taxes.
Carrier Assets
Carrier assets refer to the physical resources owned and operated by a transportation carrier, such as trucks, trailers, ships, airplanes, or rail cars. Carrier assets are used to transport goods or cargo from one location to another on behalf of shippers or customers.
Carrier Priority
Carrier priority refers to the level of importance or urgency given to a shipment by a transportation carrier. Carrier priority determines the order in which shipments are processed and delivered, with higher-priority shipments being given priority over lower-priority ones.
Carrying Costs
Carrying costs refer to the expenses incurred by a company to maintain inventory or stock of goods in storage over a period of time. Carrying costs are the costs of holding inventory, and they can include expenses such as warehousing, insurance, taxes, depreciation, obsolescence, and opportunity cost.
Carton
A carton is a type of packaging material used to transport and store goods. A carton is typically made from paperboard or cardboard, and it is designed to be lightweight yet strong enough to protect the contents during transportation and handling.
Cash on delivery
Cash on delivery (COD) is a type of payment method used in logistics where the customer pays for goods upon delivery. This means that the customer makes the payment to the delivery person or courier at the time of receiving the goods.
CBM (Cubic Meter)
CBM stands for Cubic Meter, which is a unit of measurement used to calculate the volume of goods or cargo. CBM is a metric unit of measurement and is commonly used in international shipping to determine the total volume of cargo that can be transported in a given space.
Changeover
Changeover refers to the process of switching production from one product or item to another. Changeover is a common practice in manufacturing and supply chain operations, where it is necessary to switch between different products or variants on a production line.
Channel Conflict
Channel conflict refers to a situation where different channels of distribution, such as wholesalers, retailers, or e-commerce platforms, compete with each other for sales of the same product. Channel conflict can arise when manufacturers or suppliers sell their products directly to end-customers, bypassing their traditional distribution channels.
Channels Of Distribution
Channels of distribution in logistics refer to the various routes or paths through which goods or products are moved from manufacturers or producers to end-users or consumers. A channel of distribution can include intermediaries such as wholesalers, retailers, and distributors, who are responsible for storing, promoting, and delivering goods to the end-users.
Charging Area
A charging area refers to a designated space or location where electric vehicles can be charged. Charging areas are becoming increasingly important as more and more logistics companies and businesses switch to electric vehicles to reduce their carbon footprint and improve sustainability.
Class 1 Railroad
Class 1 Railroad refers to the largest freight railroads in the United States. These are the railroads that have an annual operating revenue of over $453.9 million and account for the majority of the country's rail freight volume.
Cling Film
Cling film, also known as plastic wrap, is a thin plastic film that is used to wrap and protect products or goods during transportation or storage. Cling film is often used to wrap food items, such as fresh produce or meat, to keep them fresh and prevent contamination.
COD Amount
COD (Cash on Delivery) amount in logistics refers to the payment amount that is collected by the delivery person at the time of delivering the product to the customer. COD is a payment method that allows customers to pay for their orders in cash at the time of delivery.
Commercial Invoice
A commercial invoice is a document that contains details about a shipment of goods, including a description of the products, their value, and the terms of sale. The commercial invoice is used for customs and tax purposes, as it provides information about the contents of the shipment and its value, which is necessary for calculating duties and taxes.
Commodity Procurement Strategy
Commodity procurement strategy in logistics refers to the plan and approach that a company uses to acquire the raw materials, components, and supplies it needs to manufacture its products or provide its services. The goal of a commodity procurement strategy is to ensure that a company has a reliable and cost-effective supply chain for the materials it needs to operate its business.
Competitive Bid
A competitive bid refers to a process where multiple vendors or suppliers are asked to submit proposals for a specific project or contract. The purpose of a competitive bid is to obtain the best possible pricing and terms from suppliers and ensure that the company or organization is getting the best value for its money.
Configure-To-Order
Configure-to-order refers to a manufacturing strategy where products are produced or assembled according to specific customer requirements or configurations. This approach allows companies to offer a range of customized products to meet the unique needs of their customers without incurring the cost of producing or storing a large inventory of finished products.
Confirmed Letter Of Credit
A confirmed letter of credit (LC) is a financial instrument issued by a bank on behalf of an importer (buyer) that guarantees payment to the exporter (seller) once certain conditions are met. The confirmed LC ensures that the exporter will be paid even if the importer defaults on payment.
Consignee
A consignee is the person or company who is named in a shipping or transport document as the recipient of goods. The consignee is typically the owner or recipient of the goods being shipped, and is responsible for receiving the shipment and paying any associated fees or duties.
Consignment
Consignment refers to an arrangement in which goods are given by one party (the consignor) to another party (the consignee) to sell on their behalf. The consignee is responsible for storing and selling the goods, and only pays the consignor when the goods are sold.
Consignment Inventory
Consignment inventory in logistics refers to the practice of placing goods with a customer, distributor, or retailer, while still retaining ownership and control of the inventory until it is sold. The seller or consignor places the inventory at the consignee's location or warehouse and the consignee is responsible for the storage, handling, and sale of the goods.
Consignor
A consignor is the person or company who sends or ships goods to another party, known as the consignee. The consignor is responsible for packing, labeling, and shipping the goods to the consignee, and typically retains ownership of the goods until they are delivered to the consignee.
Consolidation
Consolidation refers to the process of combining smaller shipments from multiple shippers into one larger shipment, typically to achieve cost savings and efficiencies in transportation. This can be done through a variety of methods, including combining shipments from different customers to fill a single truck, or combining multiple smaller shipments into a larger container for international shipping.
Consolidation Point
A consolidation point refers to a location or facility where smaller shipments from multiple shippers are combined or consolidated into a larger shipment, typically for more efficient transportation.
Container
A container is a standardized metal box used for the transportation and storage of goods. Containers come in various sizes, but the most common size used in international shipping is the 20-foot or 40-foot container.
Container Chassis
A container chassis is a specialized trailer designed to carry shipping containers. Container chassis typically have a rectangular frame with twist locks or other locking mechanisms that secure the container in place during transport.
Container Freight Station (CFS)
A Container Freight Station (CFS) is a facility where shipping containers are consolidated, deconsolidated, and temporarily stored during the transportation process.
Continuous-Flow, Fixed-Path Equipment
Fixed-path equipment is a type of material handling equipment used in logistics that moves products or materials along a fixed path or conveyor system in a continuous flow.
Contract Logistics
Contract logistics is a type of logistics service that involves the outsourcing of all or part of a company's logistics operations to a third-party logistics (3PL) provider.
Contract of Affreightment
A Contract of Affreightment (COA) is a long-term agreement between a shipper and a carrier, usually for the transportation of a specific type of cargo over a defined period of time.
Contribution Margin
Contribution margin is a financial metric used in logistics and supply chain management to calculate the profitability of individual products, services or operations. It represents the difference between the revenue generated by a product or service and its variable costs.
Controlled Access
Controlled access is a term used in logistics to describe a situation where access to a facility, such as a warehouse or distribution center, is restricted to authorized personnel only. This is typically done to ensure the security of the facility and the products or materials being stored there.
Corrugated Box
A corrugated box is a type of container commonly used in logistics to transport and store goods. It is made of corrugated fiberboard, which is a material consisting of a fluted corrugated sheet and one or two flat linerboards. The fluted sheet provides strength and rigidity to the box, while the linerboards provide a smooth surface for printing and labeling.
Cost Center
A cost center refers to a department or function within a company that incurs expenses and does not directly generate revenue. Cost centers are typically used in budgeting and accounting to track and allocate expenses associated with specific activities, such as warehousing, transportation, and inventory management.
Cost Driver
A cost driver is a factor that causes a company to incur expenses in its supply chain operations. These drivers can vary depending on the company and its specific logistics activities, but some common examples include transportation costs, inventory carrying costs, labor costs, and equipment maintenance costs.
Cost of Capital
The cost of capital refers to the cost of the funds used to finance a company's operations, including its inventory and other assets. It is the required rate of return that a company must earn on its investments to meet the expectations of its investors or lenders.
Cost of Goods Sold
Cost of Goods Sold (COGS) is a term used in logistics and accounting to refer to the direct costs of producing or purchasing goods that are sold by a company. It includes the cost of materials, labor, and any other expenses directly related to producing the goods. In other words, COGS is the cost of everything that goes into making a product, excluding indirect costs such as marketing and administrative expenses.
Council of Supply Chain Management Professionals (CSCMP)
The Council of Supply Chain Management Professionals (CSCMP) is a non-profit professional association consisting of individuals involved in supply chain management.
Courier
A courier in logistics is a person or company that provides delivery services for small packages, documents, and parcels. Couriers offer fast and reliable services for time-sensitive shipments, often using a combination of ground transportation and air freight. Couriers typically operate within a limited geographic area and offer same-day or next-day delivery options, making them an important part of the supply chain for companies that require urgent deliveries.
Craft Paper
Craft paper is a type of paper made from recycled materials such as old newspaper, cardboard, and other types of paper waste. It is a strong and durable material that is commonly used in packaging and wrapping applications in the logistics industry. Craft paper comes in a variety of thicknesses and sizes and is often used to make boxes, bags, and other types of shipping containers.
Crate
A crate is a large, rigid shipping container typically made of wood or plastic. It is used to transport and store goods securely during shipping or storage. Crates are designed to be strong and durable, with a framework that can withstand the stresses of being stacked and moved by forklifts or other handling equipment.
Critical Differentiators
Critical differentiators in logistics refer to the unique aspects of a logistics operation that set it apart from competitors and give it a competitive advantage. These differentiators can include factors such as speed of delivery, reliability, cost-effectiveness, customer service, sustainability, and technological innovation.
Critical Stock
Critical stock in logistics refers to the minimum inventory level of a product that must be maintained in order to ensure that there are no stock-outs or shortages that could negatively impact the supply chain. This minimum inventory level is determined based on factors such as lead times, demand variability, and order quantities.
Cross Docking
Cross docking is a logistics strategy where products are unloaded from an incoming truck or container and then immediately transferred to an outbound truck or container for delivery to their final destination, with little or no storage in between. This process can be used for both inbound and outbound logistics operations.
Cube Utilization
Cube utilization in logistics refers to the amount of space or volume that is being used within a transportation container or trailer. It is a measure of how efficiently the available space is being utilized, and is typically expressed as a percentage.
Cubic Space
Cubic space in logistics refers to the total volume or space available within a container or trailer for transporting goods. It is typically measured in cubic feet or cubic meters.
Cubing
Cubing in logistics refers to the process of determining the cubic volume or dimensions of a package or shipment. This is important in logistics because it helps determine the most efficient way to store, transport and handle packages and goods.
Customer Returns
Customer returns in logistics refer to the process of accepting products back from customers due to various reasons such as defects, damages, wrong orders, or customer dissatisfaction. This process is also known as reverse logistics or product returns management.
Customer Segmentation
Customer segmentation in logistics refers to the process of dividing a company's customer base into groups or segments based on common characteristics such as demographics, buying behavior, or needs. The purpose of customer segmentation is to develop targeted logistics strategies that cater to the specific needs and preferences of different customer groups.
Customs
Customs in logistics refer to the governmental agency responsible for controlling and regulating the movement of goods across international borders. Customs is responsible for enforcing laws and regulations related to import and export activities, including collecting taxes and duties on goods entering or leaving a country.
Customs Clearance
Customs in logistics refer to the governmental agency responsible for controlling and regulating the movement of goods across international borders. Customs is responsible for enforcing laws and regulations related to import and export activities, including collecting taxes and duties on goods entering or leaving a country.
Customs House Broker
Customs clearance in logistics refers to the process of completing the necessary formalities with the customs authorities to allow the legal entry or exit of goods across international borders. Customs clearance is a crucial aspect of international trade, and it involves the submission of various documents, the payment of duties and taxes, and the inspection of goods by the customs authorities
Customs Invoice
A customs invoice in logistics is a document that provides information about the contents of an international shipment, including details about the products, their value, and the terms of sale. The customs invoice is a key document required by customs authorities in many countries to assess duties and taxes on imported goods.
Cycle Count
Cycle counting in logistics is a process of regularly auditing and verifying inventory levels by counting a small subset of items in stock. It is a continuous and systematic method of inventory counting, where a subset of inventory is counted on a specific schedule, rather than conducting a full physical inventory count at once.
Cycle stock
Cycle stock in logistics refers to the inventory of goods that a company needs to maintain to meet the expected demand for a specific period. This type of inventory is also called base stock, and it represents the level of stock that a company holds to fulfill the regular, recurring demand for its products.
D
Dashboard
A dashboard in logistics refers to a user interface that displays key performance indicators (KPIs) and other relevant data about logistics operations in a graphical format. The dashboard provides an overview of various logistics metrics, such as inventory levels, order status, shipment tracking, and delivery times, among others.
Data Dictionary
A data dictionary in logistics is a database that defines and describes the various data elements used in a logistics management system. The data dictionary serves as a reference guide that outlines the structure, format, and meaning of the data stored in the system.
Data Mining
Data mining in logistics refers to the process of analyzing large sets of data to identify patterns, correlations, and other insights that can be used to improve logistics operations. The data used for data mining can come from various sources, such as shipping records, inventory management systems, customer order data, and other sources.
DDP
DDP stands for Delivered Duty Paid, which is an Incoterm used in international logistics to specify the responsibilities and costs associated with the shipment of goods from the seller to the buyer.
DDU
DDU stands for Delivered Duty Unpaid, which is an Incoterm used in international logistics to specify the responsibilities and costs associated with the shipment of goods from the seller to the buyer.
De minimis
De minimis in logistics refers to the minimum value of a shipment below which no duties or taxes are charged by the customs authorities. The de minimis value varies from country to country and is usually determined by the customs regulations of the destination country.
Deadweight Tonnage (DWT)
Deadweight Tonnage (DWT) in logistics refers to the maximum weight of cargo and supplies that a ship can carry. It is a measure of the carrying capacity of a ship and includes the weight of the cargo, fuel, ballast, crew, and other provisions required for the voyage.
Declared Price
Declared Price in logistics refers to the value declared by the shipper for a shipment of goods, which is used to calculate the customs duties and taxes that are levied on the shipment. The declared price is the value of the goods as agreed upon by the shipper and the consignee, and it includes the cost of the goods, as well as any other charges associated with the shipment, such as freight and insurance.
Deconsolidation
Dedicated Contract Carriage
Dedicated Contract Carriage (DCC) in logistics refers to a transportation arrangement in which a company hires a carrier to provide exclusive transportation services for its goods or products. In a DCC arrangement, the carrier is dedicated to serving the needs of the company, and the company typically contracts with the carrier for a set period of time, such as one year or longer.
Delivery Note
Delivery Option
A Delivery Option in logistics refers to the different choices available for the final delivery of a shipment to its intended destination. Delivery options can include a range of services, such as standard delivery, express delivery, same-day delivery, or next-day delivery, each with varying costs and delivery times.
Delivery Order
A Delivery Order in logistics is a document that authorizes the release of goods from a warehouse or other storage facility for delivery to a customer or other designated recipient. The delivery order typically includes details about the shipment, such as the quantity, description, and value of the goods, as well as the name and address of the recipient.
Destination
destination refers to the final point or location to which a shipment of goods is intended to be delivered. The destination can be a physical location, such as a warehouse, retail store, or customer's residence or business address.
Devanning
Devanning in logistics refers to the process of unloading a container or other transport unit, such as a truck or train, that has been loaded and sealed for transportation. Devanning is also sometimes referred to as de-stuffing or unstuffing.
Dimweight
Dimweight, also known as dimensional weight, refers to the weight of a package or shipment that is calculated based on its dimensions rather than its actual weight. This is typically used by carriers to determine shipping rates, as a larger package with lighter weight can take up more space and require more handling than a smaller package with higher actual weight.
Dispatch
Dispatch refers to the process of sending out or releasing goods or shipments for delivery to their intended destination. This includes activities such as preparing the goods for shipment, arranging for transportation and logistics services, and managing the paperwork and documentation associated with the shipment.
Distributed Inventory
Distributed inventory in logistics refers to a model in which inventory is stored in multiple locations, rather than being centralized in a single warehouse or distribution center. This allows for faster and more efficient fulfillment of orders, as the inventory is located closer to the customer.
Distribution Center (DC)
A distribution center, or DC, in logistics is a facility used for receiving, storing, and distributing goods to various locations. Distribution centers are a critical part of the logistics supply chain, as they allow companies to efficiently manage inventory and meet customer demand.
Distribution Channel
Distribution channel management in logistics refers to the process of planning, implementing, and controlling the various channels through which products or goods are distributed to end customers. This involves managing the relationships between manufacturers, wholesalers, retailers, and other intermediaries in the supply chain, as well as coordinating the logistics and transportation of products.
Distribution Channel Management
Distribution Requirements Planning (DRP) is a logistics planning and inventory control system used to manage the distribution and replenishment of goods in a supply chain. DRP is used to ensure that products are available at the right time and in the right quantity, and to minimize the amount of inventory held in the supply chain.
Distribution Requirements Planning (DRP)
Distribution Resource Planning (DRP II) is an advanced version of Distribution Requirements Planning (DRP) used in logistics management. DRP II is an integrated planning and control system that manages the flow of goods and resources throughout the supply chain, from production to distribution, to ensure that products are available at the right time and in the right quantity.
Distribution Resource Planning (DRP II)
Distribution Resource Planning (DRP II) is an advanced version of Distribution Requirements Planning (DRP) used in logistics management. DRP II is an integrated planning and control system that manages the flow of goods and resources throughout the supply chain, from production to distribution, to ensure that products are available at the right time and in the right quantity.
Dock
Documentation
Documentation refers to the process of creating, organizing, and managing the paperwork and records that accompany the shipment of goods from one location to another. This paperwork can include a range of documents, such as bills of lading, commercial invoices, packing lists, certificates of origin, and customs declarations.
Door-to-Door
Door-to-door in logistics refers to a type of shipping service where the logistics provider is responsible for the entire transportation process from the point of origin to the final destination. This includes pick-up of the goods at the sender's location, transportation to the destination, and delivery of the goods to the recipient's door.
Double Day Sales
A double-day sale is a marketing strategy where an online retailer offers enticing deals, discounts, or promotions for a period of two days instead of the typical one-day sale. The goal is to create a sense of urgency and encourage customers to make a purchase within a limited timeframe, driving sales and revenue for the retailer.
Double-Pallet Jack
Also known as a tandem pallet jack or double-decker pallet jack, is a type of material handling equipment used in logistics and warehousing to move and transport two pallets simultaneously.
Drop Shipping
Drop shipping is a fulfillment model in logistics where a retailer or seller does not keep the products in stock but instead transfers the customer orders and shipment details to a manufacturer, wholesaler, or supplier, who then ships the products directly to the customer.
Dual Rate System
Dual Rate System is a pricing strategy used in logistics that involves charging different rates for different quantities of freight. This pricing structure is often used by freight carriers to incentivize shippers to send larger volumes of freight, as the larger volume will result in a lower overall per-unit cost.
Dual-Command Operations
Dual Rate System is a pricing strategy used in logistics that involves charging different rates for different quantities of freight. This pricing structure is often used by freight carriers to incentivize shippers to send larger volumes of freight, as the larger volume will result in a lower overall per-unit cost.
Duty-Free Zone (DFZ)
A Duty-Free Zone (DFZ) is a designated area within a country's territory where imported goods are stored, handled, and processed without being subject to customs duties and taxes.
E
E-commerce
E-commerce, short for electronic commerce, refers to the buying and selling of goods and services over the internet. In logistics, e-commerce is a rapidly growing sector that involves the transportation, warehousing, and delivery of products purchased online. E-commerce logistics is the management of these activities, including order fulfillment, inventory management, and shipping. E-commerce logistics often involves the use of technology, such as automated warehouses and tracking systems, to improve efficiency and speed up delivery times.
EAN
EAN stands for European Article Number, which is a barcode standard used in Europe and many other countries around the world to identify products. The EAN barcode is similar to the UPC (Universal Product Code) barcode used in the United States and Canada, but it includes a country code, a manufacturer code, and a product code. The EAN barcode is commonly used in logistics and supply chain management to automate the process of tracking and identifying products throughout the supply chain.
E-commerce Campaign
An e-commerce campaign in logistics is a marketing strategy that aims to increase sales and brand awareness for an online store or platform. The campaign can include a variety of tactics such as targeted advertising, email marketing, social media marketing, content marketing, and promotions or discounts. The goal is to attract potential customers, drive traffic to the e-commerce site, and ultimately convert visitors into buyers. Effective e-commerce campaigns require careful planning, execution, and analysis of results to continually improve and optimize the strategy.
E-commerce Platform
An E-commerce platform in logistics refers to an online platform or marketplace that facilitates the buying and selling of goods and services between businesses or consumers. These platforms are designed to streamline the logistics process by connecting buyers and sellers, managing orders and payments, and coordinating the shipment of goods.
Electronic Data Interchange (EDI)
Electronic Data Interchange (EDI) is a computer-to-computer exchange of business documents in a standard electronic format between trading partners. In logistics, EDI is widely used to exchange various types of documents such as purchase orders, invoices, bills of lading, shipping notices, and other transactional information between suppliers, manufacturers, distributors, retailers, and logistics service providers. EDI replaces the traditional paper-based documents with electronic documents, which reduces manual data entry errors, speeds up the order-to-delivery cycle, and improves supply chain visibility and accuracy.
Emergency Stock
Emergency stock in logistics refers to the additional inventory that a company holds beyond its normal inventory levels to ensure that it can meet unexpected demand or supply chain disruptions. It is also commonly referred to as safety stock or buffer stock.
En route
En route in logistics refers to the stage of a shipment's journey where it is currently in transit from its origin to its destination. It is the time period between the departure of the shipment from its point of origin and its arrival at its final destination.
End-of-Life Inventory
End-of-life inventory in logistics refers to products that have reached the end of their life cycle and are no longer in demand or being produced. These products may be outdated, discontinued, or no longer meet customer needs or preferences. End-of-life inventory is also referred to as obsolete inventory.
Engineering Change
Engineering change in logistics refers to the process of modifying a product or component's design, materials, or specifications to improve its performance, functionality, or manufacturability. The changes may be made to correct a defect, reduce costs, improve quality, or address regulatory requirements.
Equipment Positioning
Equipment positioning in logistics refers to the process of strategically locating equipment, such as containers, trailers, and trucks, to optimize the efficiency of the supply chain. Effective equipment positioning can help to reduce transportation costs, improve delivery times, and increase overall supply chain efficiency.
ETA
ETA in logistics stands for Estimated Time of Arrival. It is the expected time that a shipment, carrier, or vehicle is estimated to arrive at a specific destination. The ETA is typically based on the current location of the shipment, the mode of transportation being used, and the expected travel time.
Expiry Management
Expiry management in logistics refers to the process of monitoring and managing the shelf life of products in inventory to ensure that they are used or sold before they expire. This is particularly important for products that have a limited shelf life, such as food, pharmaceuticals, and chemicals.
Export Broker
An export broker in logistics is a third-party intermediary who assists businesses in exporting their products to international markets. Export brokers act as intermediaries between the exporter and various stakeholders involved in the export process, such as freight forwarders, customs brokers, and government agencies.
Export Declaration
An export declaration in logistics is a document that provides information about goods being exported from one country to another. It is a legal requirement in many countries and is used by customs officials to verify that the goods being exported comply with export regulations and are properly declared.
Express Shipping
Express shipping in logistics refers to a delivery service that offers expedited shipping of goods or packages. Express shipping typically involves faster transportation and delivery times compared to standard shipping options.
F
Fast-Moving Consumer Goods (FMCG)
Fast-Moving Consumer Goods (FMCG) in logistics refer to a category of consumer products that are sold quickly and at a relatively low cost. FMCG products include items such as food, beverages, personal care products, cleaning supplies, and household goods.
FEFO
FEFO in logistics stands for "First Expired, First Out". It is a method used in inventory management to ensure that products with the closest expiration dates are used or sold first.
FIFO
FIFO stands for "first in, first out," and is a method of inventory management used in logistics and supply chain management.
Finished Goods Inventory
supply chain management, finished goods inventory refers to the products that have completed the manufacturing process and are ready for sale or distribution to customers.
First Mile
The "first mile" refers to the initial stage of the supply chain, where goods are transported from the point of origin, such as a factory or supplier, to a transportation hub or distribution center.
Fixed Order Quantity
A fixed order quantity is a method of inventory management in which a predetermined quantity of items is ordered whenever the inventory level falls below a certain point.
Fixed Reorder Point
A fixed reorder point is a predetermined inventory level that triggers the initiation of a new purchase order or production run.
Flow Rack
A flow rack is a type of shelving system used in logistics and warehousing to organize and store inventory in a way that maximizes space utilization and facilitates the movement of goods.
Foam Wrap
Foam wrap is a protective packaging material used in logistics to provide cushioning and shock absorption to delicate and fragile items during transportation. It is a type of foam material that is designed to wrap around items and protect them from damage during transit.
Food-grade Storage
Food-grade storage in logistics refers to storage facilities or containers that are designed and maintained to meet specific standards for the storage of food and food-related products. These standards are put in place to ensure that the food remains safe, hygienic, and free from contamination during storage and transportation.
Force Majeure
Force Majeure is a legal term that refers to an unforeseeable event or circumstance that is beyond the control of parties involved in a contract, and that prevents them from fulfilling their obligations under the contract. In logistics, Force Majeure clauses are included in contracts between logistics service providers and their customers, and they allow either party to be released from its contractual obligations, without penalty or liability, in the event of certain unforeseeable circumstances.
Forecasting
Forecasting in logistics refers to the process of predicting future demand, supply, and operational requirements of logistics and supply chain management. It involves the use of historical data, statistical methods, and other analytical techniques to estimate future trends and patterns in logistics operations.
Forklift Truck
A forklift truck is a type of industrial truck that is commonly used in logistics and warehouse operations. It is a powered vehicle designed to lift, move and stack heavy goods and materials over short distances. The forklift truck is equipped with a forked platform that can be raised and lowered to pick up and carry loads.
Free Alongside Ship
Free Alongside Ship (FAS) is a shipping term used in international trade to describe the delivery of goods to a specific location alongside a vessel for transport. Under FAS terms, the seller is responsible for delivering the goods to a port, typically the one named in the sales contract, and placing them within reach of the ship's loading cranes or ropes, ready to be loaded onto the vessel.
Free On Board (FOB) Destination
Free On Board (FOB) Destination is a type of shipping arrangement in logistics where the seller is responsible for the goods until they reach the buyer's specified destination.
Freight Consolidation
Freight consolidation is a logistics process in which multiple smaller shipments are combined into one larger shipment for transportation. This process allows businesses to save money on shipping costs by reducing the number of individual shipments they need to make.
Freight Forwarding
Freight forwarding is a service provided by logistics companies that specialize in the organization and management of shipments for businesses or individuals. Freight forwarders act as intermediaries between shippers and carriers, handling the various aspects of the transportation of goods, including documentation, customs clearance, insurance, and communication with all parties involved in the shipment.
Freight Terms
Freight terms, also known as shipping terms or delivery terms, are a set of conditions agreed upon between a buyer and a seller for the transportation of goods. These terms specify who is responsible for the cost and risks associated with the transportation of goods, as well as the point at which ownership of the goods transfers from the seller to the buyer.
Fronthaul
Fronthaul in logistics refers to the transportation of goods from the point of origin to a centralized hub or distribution center. This can include the movement of goods from a manufacturer or supplier to a warehouse or distribution center, where the goods are then sorted and processed for delivery to their final destination.
Fulfillment
Fulfillment in logistics refers to the process of receiving, processing, and delivering orders to customers. This involves a range of activities, including inventory management, order processing, picking and packing, and shipping. The ultimate goal of fulfillment is to ensure that customers receive their orders accurately, on time, and in good condition.
Fulfillment Location
Fulfillment location in logistics refers to the physical location from which orders are processed, picked, packed, and shipped to customers. This can include warehouses, distribution centers, or fulfillment centers. The choice of fulfillment location depends on factors such as proximity to customers, shipping costs, and inventory management needs.
Full Container Load
Full Container Load (FCL) is a term used in logistics to describe a mode of ocean freight transportation where an entire shipping container is leased by a single consignee, typically an importer or exporter. In FCL shipments, the container is filled with cargo belonging to one party, which means that the entire container is dedicated to a single shipment
Full Container Load (FCL)
Full Container Load (FCL) is a term used in logistics to describe a mode of ocean freight transportation where an entire shipping container is leased by a single consignee, typically a importer or exporter. In FCL shipments, the container is filled with cargo belonging to one party, which means that the entire container is dedicated to a single shipment.
Full-Service Leasing
Full-service leasing is a type of logistics service where a company leases a complete transportation solution from a third-party provider. This includes the use of vehicles, maintenance, insurance, and administrative services. In a full-service leasing agreement, the third-party provider takes care of all aspects of the vehicle's ownership and operation, allowing the lessee to focus on their core business activities.
G
Goods Receipt/Goods Received Note
Goods receipt or goods received note in logistics is a document that confirms the receipt of goods or products from a supplier. It is typically generated by the receiver of the goods and provides information about the quantity, quality, and condition of the received goods.
Government Bill of Lading (GB/L)
A Government Bill of Lading (GB/L) is a transportation document used by the United States government to facilitate the shipment of goods and materials for official purposes.
Grandfather Clause
In logistics and transportation, a grandfather clause is a provision that allows existing carriers or shippers to continue operating under previous regulations or requirements, even if new regulations or requirements have been established.
GST
GST stands for Goods and Services Tax and is a value-added tax that is levied on the supply of goods and services in many countries, including India.
GTIN
GTIN stands for Global Trade Item Number, which is a unique identifier used to identify and track products in the supply chain. The GTIN is a barcode that is assigned to a specific product and contains information such as the manufacturer's code, the product code, and a check digit.
H
Harmonized System (HS) / HS Code
The Harmonized System (HS) is an international standard for classifying and coding goods for customs and trade purposes. The HS is a standardized system that is used by customs authorities worldwide to facilitate the classification and identification of products for import and export
Hazardous Material
Hazardous materials, also known as hazardous goods or dangerous goods, are substances or materials that pose a risk to health, safety, or property during transportation.
HAZMAT
HAZMAT is an abbreviation for "hazardous materials" or "hazardous substances." In logistics and transportation, HAZMAT refers to materials or substances that pose a risk to health, safety, or property during transportation.
Heijunka
Heijunka is a lean manufacturing technique that is used to balance production output and improve efficiency in the supply chain.
High-value Item
A high-value item refers to a product or shipment that has a significant monetary value, often exceeding a predetermined threshold.
Hundredweight (CWT)
Hundredweight (CWT) is a unit of measurement used in logistics and transportation to express the weight or pricing of goods.
I
IMEI
IMEI stands for International Mobile Equipment Identity. In logistics, the IMEI is a unique 15-digit number assigned to a mobile device to identify it in the cellular network.
In transit
In transit refers to the stage of a shipment where the goods are in the process of being transported from the point of origin to the final destination.
Inbound
Inbound refers to the movement of goods or materials from a supplier or vendor into a warehouse or distribution center. The inbound process includes activities such as receiving, inspecting, and storing incoming shipments.
International Maritime Dangerous Goods (IMDG) Code
The International Maritime Dangerous Goods (IMDG) Code is a set of guidelines and regulations developed by the International Maritime Organization (IMO) to ensure the safe transportation of dangerous goods by sea.
Inventory Cost
Inventory cost refers to the expenses incurred by a company to hold and maintain its inventory. In logistics, inventory cost can include expenses such as the cost of goods, storage, handling, insurance, and taxes associated with inventory.
Inventory Management System (IMS)
An Inventory Management System (IMS) is a software application that helps companies manage their inventory levels, orders, and related processes.
Inventory Master File
An Inventory Master File (IMF) is a database that contains detailed information about a company's inventory, such as item descriptions, SKU numbers, pricing, and other relevant data
Inventory Planning Systems
Inventory Planning Systems are software applications that help companies plan and manage their inventory levels. These systems use advanced algorithms and data analysis techniques to predict demand, forecast future inventory needs, and optimize supply chain operations.
Inventory Turns
Inventory turns, also known as inventory turnover, is a measure of how quickly a company is selling and replenishing its inventory. It is calculated by dividing the cost of goods sold by the average inventory level during a specified period of time.
Inventory, Days of
Days of inventory is a metric that measures the number of days it takes for a company to sell its inventory. It is calculated by dividing the average inventory level by the average daily cost of goods sold.
Invoice
An invoice is a document sent by a supplier or vendor to a customer that details the products or services provided and the amount due for those products or services. The invoice typically includes information such as the quantity and price of the goods or services provided, any applicable taxes or discounts, and the total amount due.
ISO 9000
ISO 9000 is a series of international standards that provide guidelines for quality management systems (QMS). Developed by the International Organization for Standardization (ISO), the ISO 9000 standards are used by organizations worldwide to establish and maintain effective quality management systems.
Item Master
An Item Master is a database or system that contains information about the items or products that a company carries in its inventory. The Item Master typically includes information such as the item description, SKU or product code, pricing, and other relevant data.
J
Just-In-Time
Just-in-time (JIT) is a logistics and supply chain management strategy that focuses on minimizing inventory levels and reducing waste by only producing or ordering goods as they are needed in the production process or as orders are received.
L
Landbridge
Landbridge in logistics refers to a transportation route that connects two different geographic areas via land transportation. It is a logistics strategy that involves the use of a combination of land, sea, and air transportation modes to move goods between two points.
Landed Cost
Landed cost in logistics refers to the total cost incurred to bring a product from its point of origin to its final destination, including all associated costs such as transportation, customs duties, taxes, insurance, handling fees, and other charges.
LASH Vessel
A LASH vessel in logistics refers to a type of cargo ship that is designed to transport barges or lighter containers. "LASH" stands for "Lighter Aboard Ship".
Last Mile
The "last mile" in logistics refers to the final stage of the delivery process, which involves transporting goods from a transportation hub or distribution center to their final destination, usually a residential or commercial address.
Lead Logistics Provider (LLP)
A lean strategy in logistics involves applying lean principles to optimize supply chain operations and reduce waste.
Lean Strategy
Less Than Container Load (LCL) is a type of shipment in logistics where the cargo from multiple shippers is consolidated into a single container for transportation.
Less Than Container Load
A lessee is a party who leases or rents equipment, space, or other assets from another party, known as the lessor.
Less-Than-Truckload (LTL) Carriers
Less-Than-Truckload (LTL) Carriers are transportation companies that specialize in transporting small shipments of freight that do not require a full truckload.
Lessee
A lessee is a party who leases or rents equipment, space, or other assets from another party, known as the lessor.
Letter of Credit (LOC)
A Letter of Credit (LOC) in logistics is a financial instrument that is commonly used in international trade to facilitate the movement of goods between buyers and sellers in different countries.
License Plate Number (LPN)
a license plate number (LPN) is a unique identification number that is assigned to a container, pallet, or other unit of inventory.
Life Cycle Cost
Life cycle cost in logistics refers to the total cost of owning and operating a product or system throughout its entire life cycle, from its initial acquisition to its disposal.
LIFO
LIFO stands for "last in, first out" and it is a method of inventory valuation used in logistics. Under LIFO, the last items received or produced are assumed to be the first items sold or consumed.
Lighterage
Lighterage in logistics refers to the process of transferring cargo or goods from one vessel to another, usually when a large vessel is unable to dock at a port or when the port is not deep enough to accommodate the vessel's draft.
Link
a link refers to a connection between two or more points in the supply chain, such as the movement of products or materials between suppliers, manufacturers, distributors, and retailers.
Local Area Network (LAN)
Location Based Picking
Location-based picking in logistics is a method of order fulfillment where products or materials are picked and assembled based on their physical location within the warehouse or storage facility.
Locator System
A locator system in logistics is a method of identifying and tracking the location of products or inventory within a warehouse or storage facility.
Logistics Channel
Logistics channel, also known as a supply chain, refers to the network of activities, organizations, people, and resources involved in the movement and storage of products or materials from the point of origin to the point of consumption.
Lot Management
Lot management in logistics refers to the process of tracking and managing inventory or products based on their specific lot or batch number, including their origin, expiration date, quality, and other attributes.
Lot Sizing
Lot sizing in logistics refers to the process of determining the appropriate quantity of products or materials to order or produce in a given time period, based on factors such as demand, lead time, production capacity, and inventory costs.
Lot Tracking
Lot tracking in logistics refers to the process of tracking and managing inventory or products based on their specific lot or batch number. A lot or batch number is a unique identifier assigned to a group of products that have been manufactured or received at the same time, under the same conditions, and with the same specifications.
Lot-for-lot
Lot-for-lot in logistics is a method of inventory management where products or materials are ordered in quantities that match the demand or production requirements for a specific period. Under this method, the inventory is purchased or produced in smaller quantities more frequently, rather than in large batches.
Low Stocks
Low stocks in logistics refer to a situation where the quantity of products or inventory falls below the minimum required level for operations.
LTL shipment
LTL shipment in logistics stands for "Less Than Truckload" shipment. It is a type of freight shipping where the amount of goods being shipped does not require a full truckload.
M
Manifest
A manifest is a document that lists the details of the cargo, passengers, or goods being transported. It serves as a record of the contents of a shipment, including their type, quantity, weight, and destination.
Manufacturer’s Representative
A Manufacturer's Representative in logistics is a sales agent who represents a manufacturer in a specific territory or region. They act as an intermediary between the manufacturer and potential buyers, promoting the manufacturer's products, negotiating sales, and managing relationships with customers.
Market Dominance
Market dominance in logistics refers to a situation where a single company or a group of companies control a large portion of the market share within a specific sector of the logistics industry. Market dominance is typically achieved through a combination of factors such as pricing, product quality, customer service, brand recognition, and strategic alliances.
Marketplace
A marketplace is an online platform that connects buyers and sellers of logistics services or products. It serves as a digital marketplace where logistics companies can offer their services to shippers, freight forwarders, and other customers. The marketplace provides a central location where buyers can find and compare logistics services and solutions from multiple providers, and where sellers can showcase their offerings to a broader audience.
Material Index
The Material Index in logistics is a measure used to determine the efficiency of a company's inventory management. It is calculated by dividing the value of a company's annual sales by the value of its inventory. The resulting number provides an indication of how well a company is managing its inventory levels.
Materials Handling
Materials Management
Materials management in logistics refers to the process of managing the flow of materials from the initial raw material stage to the finished goods stage, to ensure that the materials are available in the right quantity, quality, and location, at the right time, and at the lowest cost possible.
Materials Planning
Materials planning is a critical component of logistics management that involves the process of determining the requirements for materials and ensuring that they are available at the right time, in the right quantity, and at the right location to meet production or customer demand.
Maximum Order Quantity
Maximum order quantity (MOQ) in logistics refers to the highest amount of a product or material that can be ordered at one time, as specified by the supplier or manufacturer. It is a limit set by the supplier or manufacturer to ensure that they can efficiently fulfill orders and maintain their production and distribution capabilities.
Mean Absolute Deviation
Mean absolute deviation (MAD) is a statistical measure used in logistics to determine the average difference between the actual demand for a product or material and the forecasted demand. It measures the variability of a set of data by calculating the average of the absolute deviations from the mean.
Modal Split
Modal split in logistics refers to the distribution of freight or passenger traffic among different transportation modes, such as road, rail, air, sea, or inland waterways. It is a key concept in transportation planning and logistics management, as it helps to optimize the use of different modes of transport and reduce the overall cost and environmental impact of transportation.
Mode of Transport
Mode of transport refers to the method used to move goods or people from one place to another, such as by road, rail, air, sea, or inland waterways. The choice of mode of transport depends on several factors, including the type and quantity of goods, the distance of the journey, the urgency of the delivery, the cost, and the accessibility of the destination.
Multi-language E-commerce
Multi-language e-commerce in logistics refers to the process of enabling customers to shop and make purchases on an e-commerce platform in multiple languages, beyond the default language of the platform. This is important for businesses that want to expand their customer base and reach new markets in different countries or regions, where customers may speak different languages.
O
Ocean Carrier
An ocean carrier refers to a shipping company that provides maritime transportation services for cargo. Ocean carriers operate large cargo ships, also known as container ships, that transport goods across the world's oceans.
Offshore
Offshore refers to any activity or service that is located or performed outside of a company's home country or the country where the goods or services are ultimately destined for. The term "offshore" typically refers to countries or territories that offer cost advantages, such as lower labor costs or tax incentives.
On-Time Delivery
On-Time Delivery refers to the timely delivery of goods or services to their intended destination, meeting the agreed-upon delivery time or date. On-Time Delivery is a key performance indicator (KPI) used to measure the effectiveness of logistics operations.
Operating Ratio
Operating Ratio is a financial performance metric that measures a company's operating expenses as a percentage of its revenue. The Operating Ratio indicates how much of a company's revenue is being used to cover its operating expenses and is used to evaluate the efficiency of a company's operations.
Order Cycle
Order cycle refers to the time it takes for a customer's order to be placedprocessedand delivered. The order cycle can include various stepssuch as order entryorder processinginventory allocationorder picking and packingshippingand delivery.
Order Entry and Scheduling
Order entry and scheduling refers to the process of capturing customer orders and determining the appropriate schedule for fulfilling those orders. This process typically involves several stepssuch as order validationorder entryorder confirmationand scheduling.
Order Management Costs
Order management costs refer to the expenses associated with managing customer orders throughout the order cyclefrom order entry to delivery. These costs can include labor costssoftware and technology coststransportation costsand other overheads.
Omni-Channel
Omni-channel refers to a multichannel approach to sales that seeks to provide customers with a seamless and consistent shopping experience across all channelsincluding brick-and-mortar storesonline marketplacessocial media platformsand mobile apps. The goal of omni-channel logistics is to create a unified and integrated customer experienceregardless of how or where the customer interacts with the brand.
On-demand
On-demand refers to a business model that allows customers to request and receive goods or services immediatelyas neededrather than having to wait for a scheduled delivery or service appointment. On-demand logistics typically relies on technology platforms and networks that connect customers with service providers in real-timeenabling rapid response and delivery.
On-hold Status
On-hold Status refers to a temporary status assigned to a shipment or order that prevents it from being processed further until certain issues or requirements are resolved. This status can be assigned by a warehouse or logistics provider if there is an issue with the shipment, such as a missing or incorrect item, incorrect shipping address, or payment issues.
Order Drop
Order drop typically refers to the process of delivering goods to a customer's location without requiring a signature or acknowledgement of receipt. This approach is often used when the customer has authorized the delivery company to leave the package at a designated location, such as a front porch or a building's mailroom, without the need for a person to sign for it.
Order Line
An order line refers to a specific item or product that a customer has ordered. An order can have multiple order lines, each specifying a different item or product along with its corresponding quantity and other relevant details such as size, color, etc.
Order Management
Order management refers to the process of receiving and fulfilling customer orders. This process can include various activities, such as order entry, inventory allocation, order processing, order picking and packing, shipping, and delivery.
Order Picking
Order picking in logistics is the process of selecting items from inventory to fulfill customer orders. It is a critical part of the order fulfillment process and involves retrieving the correct items from the warehouse or storage facility and preparing them for shipment.
Order Processing
Order processing refers to the activities involved in receiving and fulfilling customer orders, from the time the order is placed until the product is delivered to the customer. Order processing typically includes several steps, such as order entry, order verification, inventory allocation, picking and packing, and shipping.
Ordering Cost
Ordering cost refers to the cost associated with placing and processing an order for goods or materials, including activities such as creating purchase orders, communicating with suppliers, and verifying order accuracy. Ordering cost is one of the components of inventory carrying cost, which represents the cost of holding inventory in stock.
Original Equipment Manufacturer (OEM)
Original Equipment Manufacturer (OEM) refers to a company that designs and manufactures components or products that are used in the production of other companies' products. OEMs typically specialize in specific types of components, such as engines, electrical systems, or mechanical parts, and supply them to manufacturers that assemble them into finished products.
Out for Delivery
Out for delivery refers to a status update provided by a carrier or logistics provider that indicates that a shipment has been loaded onto a delivery vehicle and is en route to its final destination. This status is typically provided to the shipper, recipient, or other interested parties to track the progress of the shipment and estimate the expected delivery time.
Out of Stock
Out of stock refers to a situation where a product or material is not available in inventory or stock when it is requested or ordered by a customer or a downstream partner in the supply chain. This can occur due to various reasons such as inaccurate demand forecasting, supply chain disruptions, production delays, or inventory management issues.
Outlier
An outlier refers to a data point or observation that falls outside the normal range or pattern of the rest of the data. It is a value that is significantly different or unusual compared to the other values in a dataset.
Outsource
Outsourcing in logistics refers to the practice of contracting out certain logistics activities or functions to a third-party service provider, rather than handling them in-house. This can include activities such as transportation, warehousing, inventory management, and order fulfillment.
Overhead
Overhead in logistics refers to the indirect costs associated with the operations and management of a logistics system, such as rent, utilities, salaries of administrative staff, insurance, and taxes. These costs are not directly related to the production or delivery of goods or services, but are necessary for the overall functioning of the logistics system.
P
Picking by Aisle
Picking by Aisle is a method of order picking where a picker is assigned a specific aisle or zone within a warehouse to pick items for an order. This method is commonly used in warehouses with a large number of SKUs (stock-keeping units) and a high volume of orders.
Picking By Source
Picking by source is a process in logistics where items are picked or selected from their original source location, such as a warehouse or storage area, for further processing or shipment. This process involves identifying the location of the item and physically retrieving it for use in the order fulfillment process.
Picking Method
Picking method in logistics refers to the process of selecting and retrieving items from a warehouse or storage location to fulfill an order. There are various picking methods, and the selection of the appropriate method depends on several factors, such as the size and nature of the products, the order volume, and the required order accuracy
Procurement Cycle
The procurement cycle in logistics refers to the entire process of acquiring goods or services from external sources for use in the organization. The procurement cycle typically includes the following stages:
Product Characteristics
Product characteristics in logistics refer to the specific attributes or features of a product that impact how it is transported, stored, and distributed within the supply chain. Understanding product characteristics is essential in logistics to ensure that products are handled and transported in a way that maintains their quality and integrity.
Product
A product refers to a physical item that is produced, transported, and distributed through the supply chain to the end-user or consumer. Products can include anything from raw materials to finished goods.
Production Capacity
Production capacity in logistics refers to the maximum amount of products that a company or facility can produce within a given period of time. This capacity is influenced by several factors, including the available resources, production process efficiency, and workforce productivity.
Profit Ratio
Profit ratio in logistics refers to the ratio of profit to revenue earned in the logistics operations of a company. This ratio is a key performance indicator (KPI) that helps to measure the effectiveness and efficiency of logistics operations.
Package Material
Package materials in logistics refer to the materials used to package and protect goods during transport and storage. These materials can be made of various materials, such as paper, cardboard, plastic, or metal, and can be in the form of boxes, bags, containers, or pallets.
Packed
Packed refers to the act of placing goods or products into packaging materials such as boxes, bags, or containers, for the purpose of transport or storage. The packing process is an essential part of the logistics chain as it ensures that the goods being transported are protected from damage, theft, and other forms of loss during transit.
Packing Inserts
Packing inserts are materials used in logistics to fill the void spaces within packages to prevent products from shifting during transit. These inserts can be made of a variety of materials, such as foam, cardboard, plastic, or paper
Packing List
A packing list is a document used in logistics to itemize the contents of a shipment. It typically accompanies the shipment and is attached to the outside of the packaging for easy identification and reference.
Packing Station/Packing Table
An iPacking station, also known as a packing table, is a specialized workstation used in logistics for packing and preparing products for shipment. It is typically equipped with all the necessary tools and materials to efficiently pack products, such as packing tape, labels, scissors, packing inserts, and packaging materials like boxes or envelopes.
Packing Peanuts
Packing peanuts, also known as foam peanuts, are small, lightweight pieces of foam used in logistics as a packing material. They are used to fill empty spaces in shipping boxes or containers to prevent products from shifting during transportation.
Padded Envelope
A padded envelope, also known as a bubble mailer, is a type of envelope used in logistics to ship small items that require some extra protection during transit. It is typically made of a lightweight paper or plastic exterior, with an interior layer of bubble wrap or other padding material.
Pallet
A pallet is a flat, portable platform used for the transportation and storage of goods. Pallets are typically made of wood, plastic, or metal and are designed to be lifted by a forklift, pallet jack, or other lifting device.
Pallet Racking
Pallet racking, also known as pallet storage racks or warehouse racking systems, is a type of shelving system used in logistics for the storage of goods on pallets. Pallet racking systems are designed to maximize warehouse storage space by allowing pallets to be stacked vertically.
Pallet Storage
Pallet storage is a type of warehousing solution used in logistics for the storage of goods on pallets. It involves storing pallets on shelves, racks, or other storage systems, with each pallet containing a quantity of goods.
Pallet Wrapping Machine
A pallet wrapping machine, also known as a stretch wrapping machine, is a piece of equipment used in logistics for the wrapping of pallets with stretch film. The machine automatically wraps the pallet with a layer or layers of stretch film, which helps to secure the load during transportation and storage.
Parcel Manifest System
A parcel manifest system is a software application used in logistics for the management of parcel shipments. It is designed to streamline the parcel shipping process by providing real-time tracking and monitoring of shipments.
Parcel Shipment
A parcel shipment is a type of shipment in logistics that involves the transportation of individual packages or parcels. Parcels are typically small to medium-sized packages, which are shipped using a variety of modes of transportation, including air, sea, or land.
Part Standardization
Part standardization is a practice in logistics that involves the use of standard parts or components across different products or systems. This practice helps to simplify the logistics process by reducing the number of parts that need to be managed and tracked.
Parts List
A parts list is a document that contains a list of parts or components that are required to manufacture or assemble a product. The parts list typically includes the name and quantity of each part, along with any additional information that is necessary for the manufacturing or assembly process.
Pay on Use
Pay on Use is a pricing model in logistics that allows customers to pay for services only when they are used or consumed. This model is commonly used in warehousing and transportation services.
Payment Terms
Payment terms in logistics refer to the agreed-upon conditions between a buyer and seller for the payment of goods or services. These terms specify when and how the payment for the goods or services will be made.
Peak Demand
Peak demand in logistics refers to a period of time when there is a significant increase in demand for products or services. This can occur during certain times of the year, such as holidays or special events, or during a specific time of day when demand is highest.
Pending Pickup
Pending pickup in logistics refers to a status or condition of a shipment or parcel that is waiting to be picked up by a carrier or delivery service. This status usually indicates that the package has been processed and is ready for transportation, but has not yet been collected by the carrier.
Performance and Event Management Systems
Performance and Event Management Systems (PEMS) in logistics refer to a set of tools, technologies, and processes used to monitor and analyze logistics operations and events in real-time. PEMS are used to capture data on key performance indicators (KPIs) and events that occur throughout the supply chain and provide insights to help optimize operations and improve efficiency.
Performance Measurement Program
Performance measurement program in logistics is a process of evaluating and analyzing the performance of a logistics operation to identify areas of improvement and make data-driven decisions. The goal of a performance measurement program is to improve the efficiency and effectiveness of the logistics system, reduce costs, and enhance customer satisfaction.
Pick Ticket/ Pick Instruction
A pick ticket, also known as a pick instruction, is a document or electronic file that provides detailed instructions to warehouse staff on which products to pick from inventory and pack for shipment. It is a critical component of the order fulfillment process in logistics.
Pick to Light
Pick to Light is a technology-based order picking system used in logistics and warehousing. It involves the use of light displays and sensors to guide workers to the location of specific items in a warehouse or distribution center, reducing the time and errors associated with manual picking methods.
Pick/Pack
Pick/pack is a process in logistics that involves selecting items from inventory (picking) and packing them into containers for shipment (packing). The pick/pack process is a critical part of the order fulfillment process and is used in warehouses, distribution centers, and other logistics operations.
Picking
Picking in logistics refers to the process of selecting items from inventory to fulfill an order or shipment. It is a critical part of the order fulfillment process and can involve various methods, such as scanning barcodes, using pick lists or pick tickets, or using automated technologies such as Pick to Light or Voice-directed picking.
Picking Basket
A picking basket in logistics is a container or bin used by warehouse or distribution center workers to collect items during the picking process. Picking baskets are typically made of plastic or metal and are designed to be lightweight and durable. They may have handles for easy carrying and may be stackable for efficient storage
Picking Cart
A picking cart in logistics is a type of cart or trolley that is used by warehouse or distribution center workers to collect items during the picking process. Picking carts are designed to be maneuverable and efficient for workers to use as they move through the warehouse, selecting items to fulfill orders
Picking Strategy
A picking strategy in logistics refers to the approach or method used to select items from inventory to fulfill an order or shipment. Different picking strategies are used in logistics operations depending on factors such as the size of the warehouse or distribution center, the types of products being handled, and the volume of orders being processed.
Pickup Location
The pickup location is usually specified by the shipper or sender of the goods when they make a booking with a carrier or shipping company. The carrier then arranges for a pickup at the designated location and transports the goods to the intended destination, whether it's a warehouse, retail store, or directly to the end customer.
Piece Count
Piece count in logistics refers to the number of individual items or pieces included in a shipment or order. This can include any type of item, from small parts or components to larger products or packages.
Piece Picking
Piece picking in logistics refers to the process of selecting individual items or pieces from inventory to fulfill an order or shipment. This is in contrast to case picking, which involves selecting full cases or cartons of products.
Pipeline Stock
Pipeline stock in logistics refers to inventory that is in transit between different locations within the supply chain. This can include raw materials, work-in-progress items, and finished goods that are being transported between suppliers, manufacturers, distributors, and retailers.
Place Utility
Place utility in logistics refers to the value that is added to a product or service by making it available at the right time and location. This is achieved through effective supply chain management and logistics operations, which ensure that products are delivered to the right place at the right time.
Planned Date
Planned date in logistics refers to a pre-determined date on which a specific logistics operation or activity is planned to occur. This can include a planned shipment date, delivery date, production date, or any other date associated with a logistics process.
Planned Order
A planned order in logistics refers to a request for a certain quantity of goods or materials to be produced or procured at a specific time in the future. This request is typically generated by the materials requirement planning (MRP) system, which calculates the required quantities of materials and schedules production activities accordingly.
Planned Order Receipt
Planned order receipt in logistics refers to the scheduled date on which a planned order is expected to be received into inventory. This date is typically determined by the materials requirement planning (MRP) system, which calculates the required quantities of materials and schedules production activities accordingly
Poka Yoke (Mistake Proof)
Poka yoke, which translates to "mistake proof" in Japanese, is a technique used in logistics and manufacturing to prevent errors or defects from occurring during production or assembly. The goal of poka yoke is to design processes and systems that are so simple and foolproof that it is impossible for mistakes to occur.
Poly bag
Poly bag is a type of plastic bag used in logistics and shipping for packaging and protecting items during transport. They are made from polyethylene, a lightweight and durable plastic material that is resistant to tearing, punctures, and moisture
Port of Loading
The port of loading plays a critical role in the logistics and supply chain process, as it determines the route, transportation mode, and shipping costs for the goods. The choice of port depends on a variety of factors, including the type of goods being shipped, the destination, the shipping time, and the cost.
Postponement
Postponement in logistics refers to the practice of delaying final product differentiation or customization until the last possible moment in the supply chain. This means that products are manufactured or assembled in a more generic or standard form, and then customized or configured based on specific customer orders or demand signals.
Pre-Expediting
Pre-expediting is not a commonly used term in logistics. However, "expediting" refers to the process of accelerating the delivery of goods or services to meet a particular deadline.
Price
Price generally refers to the amount charged by a service provider for the transportation, storage, handling, or other services related to the movement of goods from one point to another. The price can include various charges such as freight charges, fuel surcharges, handling charges, customs fees, and taxes, depending on the specific services required and the location of the shipment.
Price Discounts
Price discounts refer to a reduction in the cost of logistics services that a company receives based on various factors. These discounts can be given to customers for a variety of reasons such as loyalty, high-volume shipments, early payment, or bundling services.
Private Carrier
private carrier" refers to a company that operates its own transportation equipment and uses it to move its own products or materials. Unlike common carriers, which offer transportation services to the public, private carriers only transport goods for their own business.
Private Label
Private label refers to products manufactured by one company (usually a contract manufacturer) but sold under the brand name of another company. Private label products are typically produced to the specifications and quality standards of the company that owns the brand
Private Trucking Fleets
Private trucking fleets refers to a company's own fleet of trucks and drivers that are used for the transportation of goods. These trucks and drivers are owned and operated by the company itself, rather than being contracted out to a third-party carrier.
Process Improvement
Process improvement refers to the ongoing effort to identify, analyze, and improve the various processes involved in the supply chain. This involves examining every step of the process, from procurement and production to transportation and delivery, and looking for ways to streamline and optimize these processes to increase efficiency, reduce costs, and improve customer satisfaction.
Process Manufacturing
Process manufacturing is a process in which finished goods are made using raw material by following different chemical and biological processes. This is used for producing kind of goods which cannot be easily broken into smaller components or parts, such as beverages ,chemical and food products.
Procure-to-stock
Procure-to-stock is a type of procurement process in logistics where a company purchases and holds inventory with the intention of selling it to customers. This process involves ordering products or materials from suppliers in order to maintain a sufficient level of inventory to meet customer demand.
Production Line
A production line is a series of connected workstations, machines, or processes arranged in a specific sequence to transform raw materials or components into finished products. The production line is a critical component of the manufacturing process, and it is designed to optimize efficiency and minimize waste.
Production Planning and Scheduling
Production planning and scheduling in logistics is the process of organizing and coordinating the activities required to produce goods or services, ensuring that they are delivered on time, within budget, and meet customer requirements. It involves identifying the resources required, such as raw materials, equipment, and labor, and planning their use to ensure that production runs smoothly and efficiently.
Proof of Delivery
Proof of Delivery (POD) is a document or electronic record that confirms that the recipient has received the items or services in good order and condition, as well as evidence of the time and date of delivery. In logistics, POD is an essential part of the delivery process and provides confirmation to the shipper or carrier that the delivery has been completed.
Proportional Rate
Proportional rate in logistics refers to a type of pricing where the transportation costs are directly proportional to the weight or volume of the goods being shipped. The rate is calculated based on the size and weight of the shipment and is charged per unit of weight or volume.
Public Warehouse
A public warehouse in logistics is a type of storage facility that provides warehousing and storage services to companies on a contract or rental basis. Public warehouses are owned and operated by third-party logistics (3PL) companies, which offer their customers various warehousing and distribution services, including receiving, storing, handling, and shipping of goods.
Pull Strategy
A pull strategy refers to a supply chain strategy in which production and inventory decisions are based on actual customer demand rather than forecasts or predictions.
Purchase Order
A Purchase Order (PO) is a document issued by a buyer to a seller indicating the type, quantity, and agreed-upon price for goods or services that the buyer wishes to purchase. It is a legally binding agreement between the two parties that outlines the terms and conditions of the transaction.
Putaway
Putaway in logistics refers to the process of moving and placing goods in their designated storage location within a warehouse or distribution center. It involves unloading items from incoming trucks, sorting them based on their characteristics such as size, weight, fragility, and product type, and then transporting them to their assigned storage area.
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QR Code
A QR code (short for Quick Response code) is a two-dimensional barcode that can be read quickly by a smartphone or other scanning device. It consists of a matrix of black and white squares, with a unique pattern that represents data such as a web address, product information, or tracking information.
Quality
Quality in logistics refers to the level of excellence or degree of conformance of logistics processes, services, and products to meet the expectations and requirements of customers. In logistics, quality can be defined as the ability to consistently deliver goods or services that meet or exceed customer expectations and needs, while optimizing operational performance and cost efficiency.
Quality Check
Quality checks in logistics refer to the process of ensuring that products and services meet the required quality standards before they are shipped or delivered to customers. Quality checks can be conducted at various stages of the logistics process, including during procurement, production, packaging, and shipping.
Quality Function Deployment (QFD)
Quality Function Deployment (QFD) is a systematic approach to quality management that is often used in logistics to ensure that products and services meet customer needs and requirements. QFD helps to translate customer needs and preferences into specific product or service characteristics, and to ensure that these characteristics are incorporated into the design and development process.
Queue Time
Queue time in logistics refers to the amount of time that a shipment spends waiting in a queue or line to be processed or moved to its next destination. Queue time can occur at various points in the logistics process, such as at a loading dock, in a customs clearance line, or during transportation.
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Return Order Management Costs
Return order management costs refer to the expenses incurred by a company when processing and managing product returns. This can include costs associated with inspecting, restocking, and processing returned goods, as well as any shipping costs or fees associated with returns.
Racking
Racking refers to a system of storage racks or shelves used in warehouses and distribution centers to store goods or materials. Racking systems are designed to maximize the use of available vertical space while also providing easy access to stored items.
Radio Frequency Tracking
Radio Frequency Identification (RFID) tracking is a technology used in logistics to track and manage inventory and shipments. It involves the use of small radio transponders or tags, which are attached to or embedded in products, pallets, or containers, and can be read by RFID readers or scanners.
Ramp Up
Ramp up typically refers to the process of increasing the volume or rate of production, transportation, or delivery activities in response to changing demand or market conditions. This can involve adding new resources, such as labor, equipment, or infrastructure, to a logistics operation in order to accommodate increased volume or capacity.
Re-ship
Re-ship generally refers to the process of resending or shipping an item that was previously shipped but for some reason was returned to the sender. This may occur if the initial shipment was refused or returned due to an incorrect address, missing information, or a problem with the product or packaging.
Ready for Dispatched
Ready for dispatch typically means that a shipment or order has been processed, packed, and is awaiting pickup or delivery to the carrier for transportation to its final destination. At this stage, the logistics company has completed all necessary preparations for the shipment to be sent out, including verifying the contents of the shipment, labeling and packaging the items, and generating any necessary documentation.
Reorder level
Reorder level refers to the minimum quantity of inventory that a company should maintain in stock in order to avoid running out of a particular item or product. The reorder level is calculated based on factors such as historical sales data, lead times for restocking, and desired safety stock levels.
Replenishment
Replenishment refers to the process of restocking or resupplying inventory in order to meet demand or maintain adequate stock levels. Replenishment can involve a variety of activities, such as ordering new products from suppliers, transferring items from one location to another within a warehouse or distribution center, or restocking shelves or displays in a retail environment.
Replenishment rate
Replenishment rate refers to the frequency at which inventory is restocked or resupplied. It is typically measured in units of time, such as days or weeks, and can vary depending on factors such as lead times for ordering and shipping, demand forecasting, and desired safety stock levels.
Resources
Resources refer to the physical, human, and financial assets that are necessary to manage the flow of goods and services from one location to another. This can include vehicles such as trucks, ships, and airplanes, as well as warehouses, distribution centers, and other facilities.
Resource Requirements Planning (RRP)
Resource Requirements Planning (RRP) in logistics is a planning process that involves identifying the resources required to meet demand and ensure smooth operations. This includes identifying the human, financial, and physical resources required to meet production goals, maintain inventory levels, and fulfill orders.
Retailer
a Retailer is a business that sells goods directly to consumers. Retailers can operate in a variety of settings, such as physical stores, online marketplaces, or through a combination of both. Retailers typically purchase products from wholesalers or manufacturers and then sell them to consumers at a markup.
Return Merchandise Authorization (RMA)
Return Merchandise Authorization (RMA) in logistics refers to the process of obtaining authorization from a seller or manufacturer to return a defective or unwanted product for replacement or refund. It is a formal process that typically involves the use of an RMA number or code, which helps to ensure that the returned product is properly tracked and processed.
Return on Assets (ROA)
Return on Assets (ROA) is a financial metric that measures the profitability of a company's assets. It is calculated by dividing a company's net income by its total assets, expressed as a percentage. The ROA metric is commonly used to evaluate a company's efficiency in generating profits from its assets.
Return on Sales (ROS)
Return on Sales (ROS) is a financial metric that measures a company's profitability as a percentage of its sales revenue. It is calculated by dividing a company's net income by its total sales revenue, expressed as a percentage. The ROS metric is commonly used to evaluate a company's ability to generate profits from its sales.
Returns
Returns refers to the process of sending back goods or products to the manufacturer, distributor, or retailer due to various reasons such as customer dissatisfaction, product defects, incorrect orders, or damaged goods. The returns process involves several steps, including obtaining return authorization, packaging the product, arranging for shipping, and issuing a refund or replacement.
Returns Material Acquisition
Returns Material Acquisition, Finance, Planning, and IT Costs, also known as RMAFPI costs, are logistics costs associated with managing and processing product returns.
Reverse Engineering
Reverse engineering in logistics refers to the process of taking apart a product or component to understand its design and functionality. This process is often used in logistics to analyze and improve the design of a product, particularly in the case of a faulty or damaged component.
Reverse logistics
Reverse logistics refers to the process of managing the flow of goods or products from the point of consumption or use back to the point of origin, such as a manufacturer or distributor. This process includes activities such as product returns, refurbishment, recycling, or disposal.
Routing
Routing in logistics refers to the process of determining the most efficient and cost-effective path for goods or products to travel from one point to another. This involves considering factors such as distance, time, mode of transportation, cost, and any specific requirements of the shipment
Routing accuracy
Routing accuracy refers to the degree of precision or correctness in the routing process of logistics. It measures how accurately the route planned for the transportation of goods matches the actual route taken by the shipment.
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Sales And Operations Planning (S&OP)
Sales and Operations Planning (S&OP) is a strategic planning process that aligns sales and operations activities to ensure that a company's supply chain is able to meet demand while optimizing resources and minimizing costs. The S&OP process involves forecasting demand, planning production and inventory levels, and coordinating activities across all functions of the supply chain, from procurement to delivery.
Sales Velocity
Sales Velocity is a metric that measures the rate at which a company's inventory is being sold over a period of time. This metric is often used to evaluate the efficiency of a company's sales and logistics operations.
Scorecard
A Scorecard is a performance measurement tool that is used to evaluate the effectiveness and efficiency of a company's supply chain operations. The Scorecard typically includes a set of key performance indicators (KPIs) that are used to track progress against specific goals and objectives.
Scrap Rate
Scrap Rate refers to the amount of waste or rejected products that are produced during the manufacturing or transportation process. This can include products that are damaged, defective, or otherwise unusable.
Seal Number
A Seal Number refers to a unique identification number that is affixed to a shipping container or trailer to ensure that it remains secure during transportation. The Seal Number is typically a combination of letters and numbers that are engraved, stamped, or printed on the seal itself.
Self Correcting
Self Correcting refers to a system or process that is designed to automatically detect and correct errors or inefficiencies without the need for human intervention. This can include automated systems that monitor inventory levels, transportation schedules, or manufacturing processes, and make adjustments as needed to ensure that everything is running smoothly.
Semi-Processed Materials
Semi-processed materials refer to raw materials that have undergone some level of processing, but are not yet finished products. Semi-processed materials are often used as inputs in manufacturing processes, where they are further processed to create finished products.
Serial Number
A Serial Number refers to a unique identification number assigned to a specific product, component, or shipment. The Serial Number is typically a combination of letters and numbers that are used to track the movement and status of the item throughout the supply chain.
Serial Shipping Container Code (SSCC)
The Serial Shipping Container Code (SSCC) is a globally recognized identification code used to track and trace shipping containers as they move through the supply chain. The SSCC is typically a 18-digit code that is encoded in a barcode, and it includes information about the company, product, and individual container.
Shelving
Shelving refers to the storage equipment used for storing and organizing products, components, or materials in a warehouse or distribution center. Shelving can come in many different forms, including free-standing shelves, wall-mounted shelves, and pallet racking systems.
Shipping Carriers
Shipping Carriers refer to companies that transport goods and materials from one location to another. Shipping carriers can include various modes of transportation, such as air freight, ocean freight, rail freight, and trucking.
Shipping Label/Air Waybill (AWB)/Sea Waybill/Bill of Lading
A shipping label, air waybill (AWB), sea waybill, and bill of lading are all important documents used to identify and track shipments during transportation.
Shipping Lane
A shipping lane refers to a defined route that a carrier or transportation company uses to move goods and materials from one location to another. Shipping lanes are often determined by factors such as geography, available transportation infrastructure, and shipping regulations.
Shipping Manifest
A shipping manifest is a document that lists the cargo or goods that are being shipped on a particular vessel or transportation mode. The shipping manifest contains information such as the name and address of the shipper and receiver, the type and quantity of goods being shipped, and the weight and volume of the cargo.
Tab Title
Shop Floor Production control systems (also known as shop floor control or manufacturing execution systems) are software systems used in logistics and manufacturing to manage and monitor the production process on the shop floor. These systems help to ensure that the production process runs smoothly and efficiently by providing real-time data and analysis to operators and managers.
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TAX
TAX refers to the taxes that are applicable to various logistics activities, such as transportation, storage, and other related services. The specific taxes that apply may vary depending on the country or region, and can include a range of different taxes such as value-added tax (VAT), customs duties, excise taxes, and other fees.
Temperature-controlled Storage
Temperature-controlled storage refers to the storage of goods in a controlled environment where temperature and humidity are maintained within a specific range. Temperature-controlled storage is commonly used for goods that are sensitive to temperature, such as food and pharmaceuticals, to ensure their quality and safety.
Tissue Paper
Tissue Paper refers to a lightweight and delicate paper product that is used for a variety of purposes, such as wrapping delicate items, cleaning surfaces, and personal hygiene. Tissue paper is typically made from virgin or recycled paper pulp and is available in a range of colors, sizes, and qualities.
Total Make Cycle Time
Total Make Cycle Time refers to the total time required to manufacture and deliver a product to the customer. Total Make Cycle Time includes all of the processes and activities involved in manufacturing, such as design, production, quality control, packaging, and transportation.
Total Supply Chain Management Cost (Five Elements)
Total Supply Chain Management Cost refers to the total cost of managing all the activities involved in the supply chain, from sourcing raw materials to delivering finished products to customers.
Track
Track refers to the process of monitoring the movement of goods and shipments throughout the supply chain. This can include tracking the location, status, and condition of goods as they move from one location to another, such as from a warehouse to a distribution center or from a port to a final destination.
Tracking Number
a Tracking Number is a unique identifier assigned to a shipment or package that allows the sender and receiver to track its movement and location throughout the supply chain. The tracking number is usually provided by the carrier or logistics provider and can be used to track the status and location of the package using a tracking system or online platform.
Transaction
A Transaction refers to any exchange of goods, services, or information between two or more parties within the supply chain. Transactions in logistics can include the purchase of raw materials, the sale of finished goods, the movement of inventory between locations, and the exchange of information between suppliers, carriers, and customers.
Transaction Set ID
A Transaction Set ID (TSID) is a unique identifier assigned to a specific type of electronic transaction within the supply chain. The TSID is used to differentiate between different types of transactions, such as purchase orders, invoices, and shipping notices.
Transport Equipment
Transport Equipment refers to the vehicles and equipment used to move goods and products from one location to another within the supply chain. This can include a wide range of equipment, such as trucks, trailers, ships, trains, airplanes, and containers.
Transport Management System (TMS)
A Transport Management System (TMS) is a software platform that helps businesses manage the transportation and logistics aspects of their supply chain. A TMS is designed to help companies optimize their transportation operations by providing real-time visibility into shipment status, carrier performance, and transportation costs.
Transportation Inventory
Transportation Inventory refers to the inventory of goods that are in transit between different locations within the supply chain. This inventory can include raw materials being transported from suppliers to manufacturers, finished products being transported from production facilities to distribution centers, and products being transported from distribution centers to retailers or customers.
Transportation Management System
A Transportation Management System (TMS) is a software platform that is used to manage, optimize, and execute transportation operations. A TMS can provide a range of functionalities, including shipment planning, carrier selection, load building, route optimization, freight audit, and payment.
Transportation Planning Systems
Transportation Planning Systems (TPS) are software systems that help companies plan, optimize, and manage their transportation operations. TPS software can provide a range of functionalities, including shipment planning, route optimization, carrier selection, load building, and real-time visibility of shipments.
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Understanding volumetric weight in e-commerce
Volumetric weight is a concept used in logistics and e-commerce to determine the cost of shipping based on the size of a package, rather than its actual weight. It is also known as dimensional weight or dim weight.
Unique Item Number
A Unique Item Number (UIN) is a unique identifier assigned to a specific item or product in logistics. The UIN is used to track the movement of the item throughout the supply chain and can be used to identify the item at any point in time.
Unit Load Device
A Unit Load Device (ULD) is a container or pallet used to transport cargo on aircraft. ULDs are designed to be loaded and unloaded quickly and efficiently, and they are used to streamline the loading and unloading process for cargo.
UPC
UPC stands for Universal Product Code, which is a standardized barcode system used in logistics and retail to identify and track products. The UPC system consists of a series of black and white vertical bars of varying widths, with a 12-digit code printed below the bars.
V
Value-Added Network (VAN)
Variable Costs are costs that vary based on the level of production or the amount of goods being transported or stored. These costs fluctuate depending on the volume of activity, and are not fixed, meaning they increase or decrease depending on the level of business activity.
Value-Added Services (VAS)
Value-Added Services (VAS) refer to additional services that go beyond the basic transportation or storage of goods. These services add value to the customer by providing extra features, customization, or specialized handling of the goods.
Variable Cost
Variable Costs are costs that vary based on the level of production or the amount of goods being transported or stored. These costs fluctuate depending on the volume of activity, and are not fixed, meaning they increase or decrease depending on the level of business activity.
VAT
VAT stands for Value-Added Tax, which is a tax on the value added to goods or services at each stage of production or distribution. In logistics, VAT is a tax that is applied to various services related to the transportation and storage of goods.
Vision
Vision refers to a company's long-term goals and objectives. It describes where the company wants to be in the future and what it wants to achieve. A company's logistics vision is typically part of its overall business strategy and is often used to guide decision-making and resource allocation.
Voucher
A voucher refers to a document or a coupon that serves as proof of a transaction between a buyer and a seller. It can be used as a form of payment, as a receipt of payment, or as a record of a particular transaction.
W
Warranty Costs
Warranty costs in logistics refer to the expenses incurred by a company to repair or replace defective products that are still covered under a warranty. When a customer purchases a product, the manufacturer often provides a warranty that guarantees that the product will function as expected for a specific period of time. If the product fails during this warranty period, the manufacturer is typically responsible for repairing or replacing the product at no additional cost to the customer.
Warehouse
A warehouse is a facility used for the storage and management of goods and materials that are awaiting distribution, sale, or use. It is a key component of the logistics and supply chain management process.
Warehouse Control System
A Warehouse Control System (WCS) is a software system that manages and controls the physical material handling equipment and automation within a warehouse or distribution center.
Warehouse Execution System
A Warehouse Execution System (WES) is a software platform that manages the real-time flow of goods in a warehouse or distribution center. A WES bridges the gap between Warehouse Management Systems (WMS) and Material Handling Systems (MHS) to optimize warehouse operations.
Warehouse Management System
A Warehouse Management System (WMS) is a software application that is used to manage warehouse operations and logistics activities. The system typically integrates with other supply chain management systems, such as transportation management systems (TMS) and enterprise resource planning (ERP) systems.
Wave Picking
Wave picking is a popular method used in logistics and warehouse management to fulfill orders efficiently. It involves grouping orders into waves and picking items in the warehouse during specific time intervals or "waves."
Waybill
A waybill in logistics is a document used in transportation to provide details about a shipment, such as its origin, destination, and contents. It is also sometimes referred to as a bill of lading. The waybill serves as a contract between the shipper and the carrier, outlining the terms and conditions of the transportation agreement.
Weight Break
Weight Break in logistics refers to the point at which a carrier's shipping rates change based on the weight of the shipment.
Wood Packaging
Wood Packaging in logistics refers to the use of wooden pallets, crates, and other wooden materials for packaging and transporting goods.
Z
Zone Picking
Zone Picking is a method of order picking in logistics where a warehouse is divided into multiple zones, and each zone is assigned to a specific picker or group of pickers.