Glossary

GLOSSARY

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 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 as a tracking document for the shipment.

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.

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.

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.

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 Requirements Planning (DRP)

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 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

A dock in logistics is a designated area within a warehouse, distribution center, or transportation hub where goods are loaded and unloaded from trucks, containers, or other transportation vehicles.

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-Command Operations in logistics refer to warehouse systems where a single material handling device, like a forklift, is designed to complete two separate tasks in one cycle. This is a common approach to increase efficiency in inventory management and reduce travel time for equipment and operators.

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

In 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 (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 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-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.

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 lead logistics provider (LLP) is a logistics company that takes responsibility for managing and coordinating a client’s entire supply chain, often acting as a single point of contact for all logistics services.

Lean Strategy

A lean strategy in logistics involves applying lean principles to optimize supply chain operations and reduce waste.

Less Than Container Load

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-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.

Lesse

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)

A Local Area Network (LAN) in logistics refers to a network of computers and devices within a warehouse or distribution center that are interconnected for communication and data sharing.

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/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 placed, processed, and delivered. The order cycle can include various steps such as order entry, order processing, inventory allocation, order picking and packing, shipping, and delivery.

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.

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

A packing 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

A 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 refer 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 kinds of goods which cannot be easily broken into smaller components or parts, such as beverages, chemicals, 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.

Q

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.

R

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.

S

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 an 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.

T

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.

U

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)

Value-Added Networks (VAN) are private networks used to facilitate electronic data interchange (EDI) between businesses in a secure and reliable manner.

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.

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