Driver Logistics

ABC Classification

ABC classification is a method of categorizing items in logistics based on their relative importance. The method is used to determine the value of an item in terms of its impact on the overall logistics operation. The method classifies items into three categories: A, B, and C, based on their importance. The classification is usually done based on the circulation, amount, value of the items, etc. with A items being the most important and C items being the least important.

Accounts Payable

Accounts Payable (AP) is a financial term used to refer to the amount of money a company owes to its vendors, suppliers, or other parties for goods or services that have been purchased but not yet paid for. It is a liability on the company's balance sheet and is recorded as a current liability because it represents a debt that must be paid within a short period, usually 30 to 90 days.

Accounts Receivable

Accounts Receivable (AR) is a financial term used to refer to the amount of money that a company is owed by its customers for goods or services that have been sold but not yet paid for. It is an asset on the company's balance sheet and is recorded as a current asset because it represents funds that are expected to be received within a short period, usually 30 to 90 days.

Acquisition Cost

Acquisition cost is a financial term that refers to the total cost incurred by a company to acquire a new asset, such as equipment, property, or inventory. The acquisition cost includes all direct and indirect expenses associated with the purchase of the asset, such as the purchase price, taxes, delivery fees, installation costs, and any other expenses necessary to get the asset up and running.

Active Inventory

Active inventory is a term used in logistics and supply chain management to describe the inventory of goods that are currently in use or available for sale. These are products that are currently being stored in a warehouse or other storage facility, and are available to be shipped out to customers or used in manufacturing processes.

Actual Cost

Actual cost is the total amount of money that is actually spent to produce or purchase a good or service. It includes all the direct and indirect costs incurred in the production or acquisition of a product or service, such as labor, materials, overhead costs, transportation costs, and taxes. Actual cost is often contrasted with standard cost, which is the estimated cost of producing or purchasing a product or service.

Actual Demand

Actual demand refers to the quantity of goods or services that customers actually purchase or consume, as opposed to the amount of goods or services that they may have indicated they would like to purchase or consume.

Actual to Theoretical Cycle Time

Actual to Theoretical Cycle Time (ATCT) is a performance metric used in manufacturing to measure the efficiency of a production process. It compares the actual cycle time of a process to the theoretical cycle time, which is the minimum amount of time required to produce one unit of output assuming optimal conditions.

Aggregate Inventory

Aggregate inventory refers to the total inventory of a company across all its locations and products. It is the sum of all inventory items, including raw materials, work-in-progress, and finished goods, that a company has in stock at any given time.

Aggregate Picking

Aggregate picking refers to the process of selecting multiple orders for picking simultaneously, rather than picking them one at a time. This approach is used in warehouses and distribution centers to increase the efficiency of the picking process and improve order fulfillment rates. With aggregate picking, instead of picking items for one order at a time, the picker selects items for multiple orders in a single pass through the warehouse.

Algorithm

An algorithm is a set of instructions or procedures used to solve a particular problem or perform a specific task. In computer science, algorithms are used to design and develop software programs and applications. An algorithm typically consists of a series of steps that take inputs and produce outputs, with the goal of solving a particular problem or achieving a specific outcome.

ANOVA

ANOVA stands for Analysis of Variance. It is a statistical method used to test the hypothesis that two or more groups of data have the same mean. ANOVA is used when there are three or more groups to compare, and is used to determine if there is a significant difference between the means of the groups.

API

API stands for "Application Programming Interface.", which is a set of programming instructions and standards for accessing a web-based software application or web tool. APIs allow different software systems to communicate with each other, enabling developers to create software applications that can interact with other systems and exchange data. An API connection between TMS and WMS can enable users to view real-time data and automate processes such as order creation, shipment tracking, etc.

APK

APK stands for Android Package Kit. It is the file format used to package and distribute applications for the Android operating system, which is used in smartphones, tablets, and other devices. APK files contain all the components of an Android app, including the code, resources, assets, and manifest file, and are used to install and run apps on Android devices.

Asset constraints

Asset constraints in the context of logistics and supply chain management refer to limitations or restrictions on the availability, capacity, or utilization of physical assets such as transportation vehicles, warehouses, distribution centers, or other facilities.

ATP

ATP stands for "Available to Promise" which refers to the process of determining the quantity of a product that is available to be promised to a customer at a particular time. ATP takes into account the current inventory levels, production schedule, pending orders, and lead time for delivery to calculate the quantity of a product that can be promised to a customer without affecting the delivery of other orders or causing stock-outs.

Audit

Audit is the inspection and examination of a process, financial results, or quality system to ensure compliance to requirements. An audit can apply to an entire organization or may be specific to a function, process or production step.

Audit Trail

Audit trail is the manual or computerized tracing of the transactions affecting the contents or origin of a record.

Automated Guided Vehicle System

An Automated Guided Vehicle (AGV) system is a material handling system that uses self-guided vehicles to transport materials and products around a warehouse or production facility. AGVs are typically guided by a combination of sensors, software, and magnetic or laser guidance systems that allow them to follow pre-determined paths. They can be programmed to follow specific routes, pick up and drop off loads at designated locations, and interact with other equipment such as conveyors and robots.

Available Inventory

Available inventory refers to the amount of inventory that is currently in stock and available for sale or distribution to customers. This includes finished goods that are ready to be shipped, as well as raw materials or components that are available for use in manufacturing or production.

Available to Promise

Available to Promise (ATP) refers to the ability of a company to deliver a specific quantity of a product to customers on a certain date based on the available inventory and production capacity. ATP takes into account the current inventory levels, production schedules, outstanding orders, and lead times to determine the amount of product that can be promised to customers.

Available to Sell

Available to Sell (ATS) typically refers to the inventory that a company has on hand that is available for sale to customers. This represents the portion of a company's inventory that is not committed to any specific customer order or already designated for internal use. The available to sell inventory is important for companies to track as it helps them ensure that they have enough product on hand to meet customer demand and fulfill orders.

Average Inventory

Average inventory refers to the average amount of inventory that a company holds over a given period of time, such as a month or a year.

AWB

AWB stands for Air Waybill, which is a legal document that serves as a contract between the shipper, the carrier, and the recipient of goods shipped by air. It provides information such as the origin and destination of the goods, the airline used, the shipping date, the type and quantity of goods, and any special instructions or requirements. The air waybill is a critical document in the air freight industry and is required for customs clearance and other legal purposes.

B2B

B2B stands for Business-to-Business. It refers to transactions that take place between businesses, as opposed to transactions between businesses and consumers (B2C). B2B transactions can involve the sale of goods or services, and can occur between manufacturers, wholesalers, retailers, or any other type of business. B2B transactions often involve larger volumes and higher prices than B2C transactions, and may require customized pricing, negotiated contracts, and other specialized arrangements.

B2C

B2C stands for Business-to-Consumer, which refers to a type of commerce transaction that involves selling products or services directly to individual consumers rather than to businesses or other organizations. In a B2C transaction, the consumer is the end user of the product or service and typically makes the purchase for personal use or consumption. Examples of B2C companies include retail stores, online marketplaces, and service providers such as hair salons and gyms.

Back Order

A backorder is an order for goods or services that cannot be fulfilled at the time the order is placed, either because the seller is out of stock or because the product is in production and has not yet been completed. When a customer places a backorder, the seller usually provides an estimated date for delivery of the product, although the delivery date may be subject to change based on factors such as manufacturing lead time or shipping delays.

Backhaul

Backhaul refers to the transportation of goods or cargo on a return trip that would otherwise be empty or not fully utilized. Backhaul is a common practice in the transportation industry where carriers, such as trucks or ships, try to maximize the efficiency of their trips by carrying freight both to and from their destination.

Bar Code

A bar code is a series of lines or bars of varying widths and spaces between them that represents numbers, letters, or symbols. It is a machine-readable code that can be easily scanned by a barcode scanner or reader to retrieve the encoded information. Barcodes are widely used in supply chain management and logistics for tracking and identifying products, inventory, and shipments.

Base Stock System

Base Stock System is a type of inventory management system that determines the inventory level to be maintained based on a predefined base stock level. The base stock level is the minimum amount of inventory that a company wants to keep in stock at all times to ensure that customer demand can be met without delay. When the inventory level falls below the base stock level, an order is placed to replenish the stock.

Batch Picking

Batch picking is a process in logistics and order fulfillment where multiple orders are picked simultaneously in one trip through a warehouse. In this method, a picker will collect items required for multiple orders from a specific area of the warehouse and then sort them into individual order containers at a packing station.

BHPT

BHPT stands for "Battery-powered Hand Pallet Truck", which refers to a type of material handling equipment that is similar to a Hand Pallet Trolley but is powered by a battery-powered motor instead of being manually operated. A BPHT, also known as an electric pallet jack or powered pallet truck, typically consists of a wheeled frame with forks for inserting under a pallet, along with an electric motor-powered lifting mechanism that allows the operator to raise and lower the pallet.

Bill Of Lading

A Bill of Lading is a legal document issued by a carrier or its agent to acknowledge receipt of cargo for shipment. The bill of lading provides information about the goods being transported, the parties involved in the transaction, and the terms of the contract. It contains details such as the type, quantity, and condition of the goods being shipped, the names of the shipper, the consignee, and the carrier, the port of origin and destination, the shipping date, and the mode of transportation.

Bill settlement

Bill settlement refers to the process of resolving financial transactions related to goods or services provided by a supplier or service provider. In the context of logistics, bill settlement typically involves the payment of invoices for transportation services, warehousing, customs clearance, freight forwarding, and other logistics-related activities.

Bin

A bin is a specific storage location for inventory items within a warehouse or distribution center. Bins can be shelves, racks, or other types of storage units that are used to organize and store products. The bin location is often used as a reference point for order picking and inventory management. Each bin is assigned a unique identifier or code that allows warehouse staff to easily locate and track inventory items.

Blanket Purchase Order

A Blanket Purchase Order (BPO) is a type of purchase order that enables a buyer to purchase goods or services multiple times over a specific period, typically one year, without creating a new purchase order for each transaction.

Bonded Warehouse

A bonded warehouse is a secured facility or warehouse where imported goods can be stored and held under the supervision of customs authorities, without payment of import duties and taxes.

Bottleneck

A bottleneck refers to any point or stage in a production process where the flow of materials, information, or products is impeded or slowed down. This can result in reduced efficiency, increased costs, and delayed delivery times. Identifying and addressing bottlenecks is an important part of supply chain optimization, as it can help to improve overall productivity and reduce lead times.

Break Even Point

The break-even point (BEP) is the point at which the total cost of producing a product or providing a service is equal to the total revenue generated by selling the product or service, resulting in zero profit or loss. In other words, the break-even point is the minimum level of sales required to cover all of the costs associated with producing and selling the product or service.

Budgeting

Budgeting is the process of creating a plan that specifies how an organization will allocate its financial resources over a particular period of time. It is an essential tool for financial planning and management that helps organizations to control their expenses and achieve their financial goals. Budgets are usually created on an annual basis and can be broken down into quarterly or monthly periods.

Buffer Stock

Buffer stock, also known as safety stock, refers to the inventory that is held by a company in excess of its immediate needs. The purpose of maintaining buffer stock is to guard against unforeseen events such as stockouts, unexpected surges in demand, or delays in the supply chain. By having buffer stock, a company can ensure that it has enough inventory to meet its customers' demands even when the supply chain experiences disruptions or delays.

Business Intelligence

Business intelligence (BI) refers to the processes, technologies, and tools that organizations use to collect, integrate, analyze, and present data in order to gain insights and make better-informed business decisions. BI solutions can include data warehousing, data mining, reporting, dashboarding, and other analytics tools that allow organizations to turn raw data into actionable insights that can inform strategic decision-making.

Business specific constraints

Business specific constraints refer to limitations or restrictions that are unique to a particular business or industry in the context of logistics and supply chain management. These constraints are specific to the nature of the business, its operations, and its supply chain, and may vary depending on the industry, sector, or market in which the business operates.

Capacity

Capacity in logistics refers to the amount of goods, materials, or people that can be transported by a particular mode of transportation or through a specific transportation. In other words, it is the maximum volume or weight that can be moved through a supply chain within a given period of time. Capacity can refer to various aspects of logistics operations, including transportation capacity and warehouse capacity.

Capacity Planning

Capacity planning in logistics is the process of determining the amount of resources that are required to meet demand for goods or services within a supply chain. This involves analyzing supply and demand patterns, predicting future demand, and ensuring that adequate transportation capacity is available to meet demand. Capacity planning is an important part of logistics management because it helps ensure that transportation resources are being used efficiently and effectively.

CAPEX

Capex stands for "capital expenditures". It refers to the funds used by a company to acquire, upgrade, and maintain its physical assets, such as property, buildings, equipment, and technology. Capex investments are typically long-term in nature and are expected to generate returns over several years. Capex is an important consideration for companies when making strategic decisions about investment, expansion, and growth.

Carton racks

Carton racks are storage systems used in warehouses or distribution centers to store and organize cartons or boxes of products. They are typically designed with shelves that can accommodate different sizes and weights of cartons, and are often made of steel or other durable materials to withstand the weight of the stored products. Carton racks can help maximize storage space, facilitate order picking, and improve inventory management.

Cash Flow

Cash flow refers to the movement of money in and out of a business over a period of time. It represents the inflow and outflow of cash and cash equivalents, including receipts from sales, payments to suppliers, salaries, rent, taxes, loan repayments, and other expenses. Positive cash flow means that a business has more cash coming in than going out. Negative cash flow, on the other hand, means that a business is spending more cash than it is generating.

CFR

Cost and Freight (CFR) is a term used in international trade and logistics to indicate that the seller is responsible for arranging and paying for the transportation of goods to a designated port of destination, as well as the cost of the goods themselves. Once the goods arrive at the port, the buyer is responsible for arranging and paying for any further transportation or insurance.

CFT Calculation

CFT stands for cubic feet, which is a unit of measurement used to quantify the volume of a shipment or cargo. CFT calculation is the process of determining the total cubic feet of a shipment, which is used to determine factors such as freight rates, storage requirements, and transportation capacity. To calculate CFT, the length, width, and height of the shipment are measured in feet, and then multiplied together to obtain the total volume in cubic feet.

CIF

Cost, Insurance and Freight (CIF) is a term used in international trade and logistics to indicate that the seller is responsible for arranging and paying for the transportation of goods to a designated port of destination, as well as the cost of the goods themselves and the cost of insurance to protect the goods against damage or loss during transport. Once the goods arrive at the port, the buyer is responsible for arranging and paying for any further transportation

Consignment

Consignment refers to a business arrangement in which goods are sent by one party (the consignor) to another party (the consignee) for the purpose of sale.

Constraints

Constraints, in the context of logistics and supply chain management, refer to limitations or restrictions that impact the operations, processes, or decisions within a logistics or supply chain system. Constraints can be internal or external factors that impose limitations on the ability to achieve desired outcomes or objectives.

Container Freight Station

A container freight station (CFS) is a warehouse or facility used in logistics for the consolidation and deconsolidation of shipping containers. CFS facilities are typically located near ports and are used to temporarily store and consolidate cargo from multiple containers into a single container or to break down cargo from a single container into multiple shipments.

Cross Docking

Cross docking is a logistics strategy in which goods are directly transferred from inbound trucks or trailers to outbound trucks or trailers with little or no storage time in between. The process typically involves sorting and consolidating products from different suppliers or origins and preparing them for immediate distribution to different destinations. It allows companies to reduce warehousing costs, inventory holding times, and transportation costs.

Database

A database is a collection of organized and structured data that is stored electronically on a computer system. It is designed to store and manage large amounts of data in an efficient and structured way, making it easy to retrieve, update, and manage information. Databases are typically composed of tables, which are made up of rows and columns. Each row in a table represents a record, while each column represents a field within that record.

Delivery Duty Paid

Delivery Duty Paid (DDP) is a trade term in logistics that indicates the seller is responsible for arranging and paying for the delivery of goods to a specified destination, including all costs associated with the transportation, import customs clearance, and any applicable taxes or duties.

Demand

Demand refers to the quantity of goods or services that consumers are willing to buy at a given price and time. It represents the needs and desires of consumers for a particular product or service. It can be influenced by various factors such as the price, availability of substitutes, consumer preferences, and economic conditions. Accurately forecasting demand is crucial as it helps to plan their production, inventory, and distribution strategies to meet customer needs while minimizing costs.

Diary Creation

In logistics, "diary creation" typically refers to the process of creating and managing a detailed schedule or timeline of activities or events related to logistics operations. Diary creation in logistics involves developing a structured schedule that outlines the sequence, timing, and coordination of various logistics activities, such as transportation, warehousing, inventory management, order processing, and other related tasks.

Docks

A dock is a platform or level area for loading and unloading goods from trucks, trailers, or other modes of transportation. It typically includes a raised platform and an opening in a building or structure for the loading and unloading of goods. Docks may also include equipment such as forklifts, pallet jacks, and loading ramps to facilitate the movement of goods between the transportation vehicle and the dock.

Dwell Time

Dwell time refers to the amount of time that a shipment, container, or vehicle spends at a particular location, such as a warehouse, port, or terminal, before it is either unloaded or dispatched to its next destination.Dwell time is an important metric that affects the efficiency and cost-effectiveness of supply chains. Longer dwell times can result in increased storage costs, delays in delivery, and reduced capacity utilization of vehicles or equipment.

E POD

Electronic Proof of Delivery is a digital document that confirms the delivery of goods or services to the intended recipient. The E-POD contains information such as the name and signature of the recipient, the time and date of delivery, the delivery address, and any special instructions or conditions of delivery.

E way bill

The e-way bill is an electronic document required for the movement of goods in India as part of the Goods and Services Tax (GST) system. It is generated by registered GST taxpayers for the movement of goods worth more than Rs. 50,000 within the country.

Eaches

Eaches refer to the individual units or items that are stored, handled, or shipped in a warehouse or distribution center. It can refer to any type of product or item, such as boxes, bags, bottles, or cans, that are considered as single units and not as cases or pallets. Eaches are often used in the context of order fulfillment, where individual items are picked and packed for shipment to customers.

EBIT

EBIT stands for "Earnings Before Interest and Taxes". It is a financial metric used to measure a company's operating profitability. EBIT is calculated by subtracting a company's operating expenses from its revenue, but before deducting interest and taxes. EBIT provides a measure of a company's ability to generate profits from its core business operations, independent of its capital structure and tax policies.

Economic Order Quantity

Economic Order Quantity (EOQ) is an inventory model that determines how much to order by determining the amount that will meet customer service levels while minimizing total ordering and holding costs.

Economic Value Added

Economic Value Added (EVA) is a financial metric that calculates the amount of value a company has created or destroyed during a given period. EVA is calculated by subtracting the cost of capital from a company's net operating profit after taxes (NOPAT)

Economy of Scale

Economy of scale refers to the cost advantage gained by a business when it increases its production scale and lowers its per-unit costs. This phenomenon occurs because as a company produces more units, it can spread its fixed costs, such as rent and equipment, over a larger production volume, resulting in lower average costs per unit. Additionally, an economy of scale can also arise from purchasing materials in larger quantities, which may reduce the cost per unit of those materials.

Electronic Data Interchange

EDI refers to the electronic exchange of business documents, such as purchase orders, invoices, and shipping notices, between trading partners using standardized formats and protocols. EDI is widely used in the logistics industry to facilitate the exchange of information between different companies and systems.

Encryption

Encryption is the process of encoding or scrambling information in a way that makes it unreadable and unusable by anyone who does not have the key or password to decode it. This technique is commonly used to protect sensitive information such as financial transactions, personal data, and confidential communications from being intercepted or accessed by unauthorized parties. Encryption can be applied to various forms of data, including text, images, and videos.

Environmental constraints

Environment constraints in logistics refer to limitations or restrictions related to the natural or external environment in which logistics operations take place. These constraints can impact various aspects of logistics and supply chain including transportation, warehousing, and distribution. Some examples of environment constraints include weather conditions, geographical features, infrastructure limitations, regulatory restrictions, environmental sustainability, natural disasters.

ERP

ERP stands for Enterprise Resource Planning. It is a software system that is used by organizations to manage and integrate various business processes such as finance, human resources, supply chain, manufacturing, and customer relationship management. The purpose of an ERP is to improve operational efficiency, streamline workflows, and provide real-time data to decision-makers. In logistics, ERP systems are often used to manage inventory, track shipments, and optimize supply chain operations.

Event Based Architecture

Event-based architecture (EBA), also known as event-driven architecture (EDA), is a software architecture approach that revolves around the concept of events, which are actions or occurrences that happen within a system or its external environment. In an event-based architecture, services or components within a system communicate with each other through events, which are typically asynchronous and loosely coupled.

Event streaming platform

An event streaming platform is a type of software platform that enables the processing, analysis, and management of real-time data streams generated by events or occurrences happening in various systems or applications. Events can be any meaningful changes or updates that occur within an organization's IT infrastructure, such as data updates, sensor readings, user interactions, or system events.

Execution

Execution refers to the process of implementing and carrying out plans, strategies, or actions to achieve desired objectives or goals. It involves putting plans into action, managing resources, coordinating activities, and monitoring progress to ensure that tasks are completed as intended and outcomes are achieved.

Export

Export refers to the process of selling goods or services produced in one country to another country.

Export License

An export license is a document issued by a government authority that permits the exportation of specific goods to a particular destination. It is an official authorization that ensures the compliance of exporters with all relevant export control regulations, including economic sanctions, embargoes, and other trade restrictions that might apply to the destination country.

External constraints

External constraints in the context of logistics refer to factors or limitations that are imposed by external entities or circumstances and may impact logistics operations. External constraints can vary depending on the specific situation or the operating environment. Some examples of external constraints in logistics include weather constraints, trade barriers and tariffs, geopolitical constraints, market demand fluctuations, supplier or customer constraints, regulatory or industry standards.

Face

In a warehouse or retail store this refers to the continuous row of racks and shelves on one side of an aisle.

Facings Deep

In a warehouse location or a retail store shelf space, this refers to the number of units which can be placed from front to back in a single position.

FEFO

FEFO stands for "First Expired, First Out", which is a stock control rule allowing the management of products having an eat-by date or short shelf life. FEFO can be used for any product but is most frequently used for food or cold storage.

Field Warehouse

A warehouse on the property of the owner of the goods that stores goods that are under the custody of a bona fide public warehouse manager. The public warehouse receipt is used as collateral for a loan.

FIFO

FIFO stands for First In- First out rule, usually used in warehousing and costing, stipulating that the first item to enter the warehouse is the first item to leave.

Fill Rate

Fill rate is the percentage of order items that the picking operation actually fills within a given period of time.

First Mover Advantage

First mover advantage is a term used in business to describe the competitive advantage a company gains by being the first to enter a new market or introduce a new product or service. Being the first to market can give a company several advantages over competitors who enter the market later.

Fixed Cost

Fixed costs are expenses that do not vary with changes in the level of production or sales. These costs are incurred regardless of the level of output and are considered to be ongoing, recurring costs that must be paid regardless of whether or not the business is generating revenue. Examples of fixed costs include rent or lease payments on a building, property taxes, salaries and wages of permanent employees, insurance premiums, and depreciation of equipment.

Fixed Interval Inventory Model

A setup wherein each time an order is placed for an item, the same (fixed) quantity is ordered.

Fixed Location Storage

Fixed location storage refers to a storage method in which products or materials are stored in a designated and permanent location within a warehouse or facility. This method involves storing items in a specific location that does not change, allowing for easy retrieval of items when needed.

Fixed Quantity Inventory Model

A setup wherein a company orders the same (fixed) quantity each time it places an order for an item.

Fixed Reorder Cycle Inventory Model

A re-ordering strategy where orders are placed on a fixed order schedule and the order quantity is adjusted from order to order to accommodate actual consumption or forecast requirements.

Fixed Reorder Quantity Inventory Model

A re-ordering strategy where orders are placed for a fixed order quantity whenever the quantity on hand plus on order reaches a pre-defined order point.

Flatbed

A flatbed is a type of truck trailer that consists of a floor and no enclosure. A flatbed may be used with “sideboards” or “tie downs” which keep loose cargo from falling off.

Fleet

A fleet refers to a group of vehicles that are owned, leased, or otherwise operated by a company or organization to transport goods, passengers, or equipment from one location to another.

Fleet management

Fleet management refers to the process of overseeing and controlling a group of vehicles that are owned, leased, or operated by a company or organization. The goal of fleet management is to ensure that vehicles are used efficiently, effectively, and safely to meet the organization's operational and strategic objectives. It involves activities such as vehicle acquisition, maintenance and repair, fuel management, driver training and safety, routing and scheduling, and performance monitoring.

Flow Rack

Flow rack is a storage rack that utilizes shelves (metal) that are equipped with rollers or wheels. Such an arrangement allows product and materials to "flow" from the back of the rack to the front and therein making the product more accessible. Flow racks are popular for small-quantity order-picking, but are also seen in warehouses which have high throughput of pallets on pallet flow racks.

FMEA

FMEA stands for Failure Mode and Effects Analysis. It is a structured approach to identify and evaluate potential failures in a product or process, and their effects on the customer or user. FMEA is widely used in manufacturing, engineering, and service industries to improve product quality, reduce defects, and enhance safety.

FMS

FMS stands for Fleet Management System, which is a software platform that helps businesses manage their vehicle fleets, including features such as vehicle tracking and monitoring, driver monitoring, maintenance management, fuel management, reporting and analytics. By providing real-time visibility into fleet operations, an FMS can help companies improve operational efficiency, reduce fuel consumption and costs, and improve safety and compliance.

Forecast

Forecast is an estimate of future customer demand. Forecasts are typically made using scientific techniques based on historical usage and adjusted to accommodate various factors such as life cycle, cyclical usage patterns, promotions and pricing actions.

Forecasting

Forecasting is the process of making predictions or estimates about future events or trends based on past and current data. In logistics, forecasting is used to predict future demand for goods, as well as to anticipate changes in supply chain processes, transportation networks, and other factors that may impact logistics operations.

Forklift Truck

Forklift truck is a machine-powered device that is used to raise and lower freight and to move freight to different warehouse locations.

Four Wall Inventory

The stock which is contained within a single facility or building.

Fourth party logistics

Fourth-party logistics is a type of logistics outsourcing that involves the use of an external organization to manage all aspects of a company's supply chain. A 4PL provider acts as a single point of contact and is responsible for managing the entire logistics process, including coordinating multiple logistics service providers. Unlike 3PL, which focus on specific logistics functions, 4PL providers take a more strategic approach and manage the entire supply chain on behalf of their clients.

Free on Board

Free on Board (FOB) in logistics is a shipping term that specifies the point at which ownership and responsibility of the goods being transported transfer from the seller to the buyer. FOB is often used in international trade, and it defines the obligations and responsibilities of both the seller and the buyer regarding the transportation of goods.

Freight

Freight refers to the goods or cargo that is transported from one place to another by any means of transportation such as trucks, trains, ships, or airplanes. Freight can include a wide range of items, including raw materials, finished products, and personal belongings.

Freight Charge

Freight charge is the rate established for transporting freight.

Freight Forwarder

A freight forwarder is a third-party logistics provider that arranges and coordinates the transportation of goods on behalf of their clients. Freight forwarders act as intermediaries between shippers and carriers, and they are responsible for managing the logistics of a shipment from the point of origin to the point of destination.

FTL

The FTL shipping method is suitable for businesses that have large shipments of goods that fill an entire truck or require exclusive use of a truck. In FTL shipping, a single shipment from a customer is loaded onto a truck and transported directly to its final destination. FTL carriers typically operate point-to-point transportation networks, where shipments are picked up at the origin and transported directly to their final destination.

Geo Codes

Geo codes, also known as geographic codes, are a type of code used in logistics to identify specific geographic locations. Geo codes can take different forms depending on the purpose and level of granularity required. By using geo codes, logistics professionals can more easily identify and locate specific items, shipments, or warehouse locations. This can help to streamline operations, reduce errors, and improve overall efficiency in the supply chain.

Geographical constraints

Geographical constraints refer to limitations or restrictions related to the physical geography of a location or region, which can impact logistics and supply chain operations. Geographical constraints can vary depending on the location and may impact transportation, warehousing, distribution, and other logistics activities. Some examples of geographical constraints include terrain and topography, distance and location, climate and weather, border and customs regulations.

GHG

GHG stands for "greenhouse gases", which are gases that trap heat in the Earth's atmosphere, leading to the greenhouse effect, which is responsible for global warming and climate change. Common greenhouse gases include carbon dioxide, methane, nitrous oxide, and fluorinated gases. In logistics, GHG refers to the emissions of these greenhouse gases associated with the transportation and movement of goods and services. This includes emissions from various modes of transportation.

GPS

GPS stands for Global Positioning System, which is a satellite-based navigation system that allows users to determine their precise location, speed, and time anywhere in the world. The GPS system consists of a network of satellites in orbit around the Earth, ground control stations, and GPS receivers. GPS receivers, which are found in many devices including smartphones, tablets, and vehicles, use signals from multiple satellites to calculate their exact location on the Earth's surface.

Gross Inventory

Gross inventory refers to the total amount of inventory that a business has on hand, without taking into account any adjustments for damaged, obsolete, or unsellable items. It includes all items in stock, whether they are finished goods, work-in-progress, or raw materials.

Gross Margin

Gross margin is a financial metric that represents the difference between a company's revenue and its cost of goods sold (COGS), expressed as a percentage of revenue. It's a measure of how much profit a company makes on each unit of its products or services sold, after accounting for the direct costs associated with producing and delivering them.

Gross Weight

Gross weight refers to the total weight of a product or shipment, including the weight of the product itself and any packaging or containers used to transport it. It is typically measured in pounds or kilograms. For example, if a company ships a crate of goods that weighs 100 pounds and the crate itself weighs 20 pounds, the gross weight of the shipment would be 120 pounds.

Ground storage

Ground storage refers to the storage of goods or products on the floor of a warehouse or storage facility, rather than on a pallet or other storage medium. It is typically used for oversized or irregularly shaped items that cannot be stored on pallets or in racks, or for items that need to be easily accessible for quick picking or staging.

Handling Costs

Handling costs are the expenses associated with moving and managing products throughout the supply chain. They include all the costs related to the physical handling of goods, such as loading and unloading, packing and unpacking, and moving and storing products. Handling costs can also include labor costs, equipment costs, and facility costs.

Hazardous Material

Hazardous materials, also known as hazardous substances, are any materials or chemicals that have the potential to cause harm to people, property, or the environment. These materials can be in the form of liquids, solids, gases, or any combination thereof. Examples of hazardous materials include flammable liquids, explosives, toxic substances, corrosive substances, infectious substances, etc.

Homogenous Quality of Goods

Homogeneous quality refers to a situation in which all products of a certain type are identical or very similar in terms of their quality and characteristics. In other words, products with homogeneous quality are essentially interchangeable and there is no discernible difference between them. Homogeneous quality can be important in transportation, where the use of standardized containers or packaging can help to simplify handling and reduce the risk of damage or loss.

Honeycomb Loss

When storing multiple SKUs in a single region, full utilization of all of the available space is not desirable because it could result in some items not being accessible. Honeycomb loss, the price paid for accessibility, is the unusable empty storage space in a lane or stack due to the storage of only a single SKU in each lane or stack since storing items from different SKUs would block access.

Honeycombing

Honeycombing in logistics refers to a situation where a shipment is not fully utilized, resulting in wasted space and increased costs. It occurs when products are not properly arranged or grouped together, leaving gaps or voids in the transportation container or warehouse.

HPT

Hand Pallet Trolley (HPT), also known as a pallet jack or pallet truck, is a manual material handling equipment commonly used in warehouses, distribution centers, and other logistics environments for moving and transporting palletized loads. An HPT consists of a wheeled frame with forks that are inserted under a pallet, along with a hydraulic lifting mechanism. The operator can then manually push or pull the loaded pallet using the handle and the wheels to transport it to another location.

HTML

HTML is the standard language for describing the contents and appearance of pages on the World Wide Web.

HTTP

HTTP is the Internet protocol that allows World Wide Web browsers to retrieve information from servers.

Hub

A hub refers to a central location where goods are consolidated, sorted, and distributed to their final destination. Hubs are typically located at strategic transportation nodes, such as airports, seaports, and major highways, and they play a critical role in the efficient movement of goods across a supply chain.

Human Factor Design

Incorporating scientific data on human physical capabilities into the design of equipment, products and systems.

Human machine Interface

Any point where data is communicated from a worker to a computer or from a computer to a worker. Data entry programs, inquire programs, reports, documents, LED displays, and voice commands are all examples of human-machine interfaces.

Hybrid Inventory System

A hybrid inventory system combines two or more different inventory management methods or systems to optimize inventory control and improve business operations. It is a customizable approach that allows businesses to tailor their inventory management practices to their specific needs and goals.

Hyperlink

A computer term. Also referred to as "link". The text you find on a website which can be "clicked on" with a mouse which, in turn, will take you to another web page or a different area of the same web page. Hyperlinks are created or "coded" in HTML.

Import

Import is a term used to describe goods or services that are brought into a country from another country.

Import Export License

An import-export license is a legal permit issued by a government authority that allows businesses or individuals to engage in the import or export of goods or services across international borders.

In transit

In logistics, "in-transit" refers to the status of goods or products that are currently in the process of being transported from one location to another, but have not yet reached their final destination. It represents the period of time during which goods are en route from the point of origin to the point of destination, and are typically being transported via various modes of transportation such as trucks, ships, airplanes, or trains.

Inbound Logistics

Inbound logistics refers to the process of receiving, storing, and distributing raw materials, parts, and other goods that a company needs to produce its products or services. Inbound logistics is the first stage in the overall logistics process, which also includes outbound logistics (the distribution of finished products to customers) and reverse logistics.

Incoterms

Incoterms, short for International Commercial Terms, are a set of standardized trade terms published by the International Chamber of Commerce (ICC) that define the responsibilities and obligations of buyers and sellers involved in international trade transactions.

Indirect Cost

Indirect costs, also known as overhead costs, are expenses that cannot be directly attributed to a specific product, service, or project, but are necessary for the operation of a business or organization. Examples of indirect costs include rent, utilities, insurance, salaries of support staff, office supplies, and equipment maintenance.

Information Systems

Information systems are a set of interconnected components that work together to collect, store, process, and communicate data and information within an organization or across organizations.

Insourcing

Insourcing refers to the practice of a company or organization performing a task or service in-house, rather than outsourcing it to an external supplier or contractor.

Integrated Logistics

Integrated logistics is a comprehensive approach to managing the movement and storage of goods and materials throughout the supply chain, from raw materials to finished products. It involves the coordination and integration of all logistics functions, including transportation, warehousing, inventory management, and order fulfillment, to optimize the flow of goods and minimize costs.

Intellectual Property

Intellectual property (IP) refers to intangible assets that are created through intellectual and creative efforts, such as inventions, designs, music, literature, and software. IP rights give the creators of these assets exclusive rights to use and profit from their creations for a certain period of time.

Intermodal Transport Unit

An intermodal transport unit (ITU) is a standard-sized container or trailer that can be transported using multiple modes of transportation, such as trucks, trains, and ships, without the need to transfer the contents of the container from one mode of transportation to another.

Intimation of Delivery

Intimation of delivery refers to the notification sent to the recipient or consignee of a shipment to inform them that their goods are ready for delivery. This notification may be sent via phone, email, or other electronic means and typically includes information such as the expected delivery date, time, and location.

Inventory

Inventory refers to the total amount of goods, materials, or products that a business holds in stock at any given time. This includes raw materials, work-in-progress, finished goods, and other supplies that are used in the production or delivery of goods or services.

Inventory Carrying Cost

Inventory carrying cost refers to the costs associated with holding inventory in stock, including the cost of storing, handling, and insuring inventory.

Inventory Days of Supply

Inventory Days of Supply is a financial metric used to measure the number of days a company's inventory is expected to last based on the current rate of sales. It is a measure of the efficiency of inventory management and helps businesses to assess their inventory levels and ensure that they are not holding excess inventory.

Inventory Management

Inventory Management is the process of efficiently and effectively managing a company's inventory of goods, materials, and products. The main goal of inventory management is to ensure that the right products are available in the right quantities at the right time, while minimizing inventory costs and maximizing profitability.

Inventory Turnover

Inventory turnover is a measure of how quickly a company is able to sell and replace its inventory over a specific period of time. The inventory turnover formula is calculated by dividing the cost of goods sold (COGS) by the average inventory value during the same period.

Invoice

An invoice is a commercial document that is sent by a seller to a buyer, detailing the goods or services that have been provided and the amount due for payment. An invoice serves as a request for payment, and it typically includes a description of the goods or services provided, the price and quantity of each item, any applicable taxes or fees, and the total amount due.

Just In Time Delivery

Just-in-time (JIT) delivery refers to a system where materials, components, or finished products are delivered to a manufacturing facility or distribution center at the exact moment they are needed, rather than being stored on-site. JIT delivery is designed to minimize inventory holding costs and improve efficiency in the production process.

Kaizen

Kaizen is a Japanese term that refers to the philosophy and practice of continuous improvement in all aspects of business and life. The term "Kaizen" comes from the Japanese words "kai" (change) and "zen" (good), which together mean "improvement" or "change for the better". Kaizen is based on the idea that small, incremental improvements can add up to significant gains over time.

Kanban

Kanban is a lean manufacturing methodology that originated in Japan, and is now widely used in many industries around the world. Kanban is based on the principles of just-in-time (JIT) production and continuous improvement, and involves the use of visual signals to manage workflow and inventory. The word "kanban" in Japanese means "signal" or "card", and the kanban system is built around the use of physical or virtual cards or boards that indicate the status of various tasks or inventory items.

Kg calculation

Kg calculation refers to the process of determining the weight of a shipment. It is used to determine the amount of weight that can be transported or stored and to calculate shipping rates and charges based on weight. The weight of a shipment can be calculated using various methods, depending on the type of cargo and the equipment used for weighing. For example, cargo can be weighed using a weighing scale, or the weight can be estimated based on the dimensions and density of the cargo.

Knowledge Management System

Generally an IT based system for managing knowledge in organizations for supporting creation, capture, storage and dissemination of information. A KMS can be a tool to provide common operating instructions to workers across large and even smaller organizations, improving the application of standards.

KPI

A measure which is of strategic importance to a company or department. For example, a supply chain flexibility metric is Supplier On-time Delivery Performance which indicates the percentage of orders that are fulfilled on or before the original requested date.

Lading

Lading is the cargo carried in a transportation vehicle.

Last mile delivery

Last mile delivery in logistics refers to the final stage of the delivery process, where goods are transported from a transportation hub or warehouse to the customer's doorstep. It is the last leg of the supply chain and often the most crucial part of the delivery process, as it can have a significant impact on customer satisfaction.

Law of Demand

The Law of Demand is a fundamental principle in economics that describes the inverse relationship between the price of a product and the quantity of the product that consumers are willing to buy. The law of demand states that, all other things being equal, the quantity demanded of a product will decrease as the price of the product increases, and the quantity demanded of a product will increase as the price of the product decreases.

Law of Supply

The Law of Supply is a fundamental principle in economics that describes the direct relationship between the price of a product and the quantity of the product that producers are willing to supply. The law of supply states that, all other things being equal, the quantity supplied of a product will increase as the price of the product increases, and the quantity supplied of a product will decrease as the price of the product decreases.

LCV Tyre Type

LCV stands for "Light Commercial Vehicle," and LCV tyres are specifically designed for use on small commercial vehicles such as vans, light trucks, and pickup trucks. These vehicles are typically used for local deliveries, service calls, and other light-duty commercial applications.

Lead time

Lead time refers to the amount of time it takes for a product or material to move through the supply chain from the initial order to the delivery of the final product. It includes the time required for order processing, production, transportation, and delivery.

Least Total Cost

Similar to the Economic Order Quantity method of lot sizing, Least Total Cost(LTC) is based on the idea that total cost will be least when the carrying cost and ordering cost are essentially equal.

Least Unit Cost

A lot-sizing method where a specified number of future periods requirements are consolidated in an effort to find a quantity where the total of ordering and carrying costs per unit ordered is at its lowest.

Lessee

A person or firm to whom a lease is granted.

Lessor

A person or firm that grants a lease.

LIFO

LIFO stands for Last In-First Out, which is a method of inventory management used in logistics that assumes that the most recently received goods are the first to be sold or used. In other words, under LIFO, the last items that are received into inventory are the first items to be removed, sold, or used. LIFO is often used in situations where inventory turnover is high and the cost of goods is rising over time.

Lift Truck

A lift truck, also known as a forklift, is a type of powered industrial truck used to lift and move heavy objects over short distances.

Link

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

Liquidity

Liquidity refers to the ability of an entity, such as a business or an individual, to convert assets into cash or cash equivalents quickly and easily without incurring significant losses in value. It represents the availability of cash or near-cash assets that can be used to meet financial obligations or invest in opportunities as they arise.

Load Tendering

Load tendering is the practice of providing a carrier with detailed information and negotiated pricing (the tender) prior to scheduling pickup. This practice can help assure contract compliance and facilitate automated payments (self billing).

Loading Allowance

A reduced rate offered to shippers and/or consignees who load and/or unload shipments.

Loading Norms

Loading norms refer to the standardized guidelines and practices that govern the loading of goods or cargo onto various modes of transportation such as trucks, ships, trains, and airplanes. These norms are designed to ensure efficient and safe loading practices, prevent damage to the goods, and comply with relevant regulations. Loading norms may vary depending on the type of cargo, the mode of transportation, and the specific requirements of the logistics operation.

Location Grid

A layout of the warehouse or storage yard used to enhance the management of efficient put away, pick, and inventory cycle counting. A high level view of warehouse locations or a general template used to map out a storage yard.

Lorry Receipt

A lorry receipt is a document used to acknowledge the receipt of goods by a carrier or a transport company. It is a written confirmation of the goods being loaded onto a truck or other vehicle for transportation. The lorry receipt is often used as legal proof of the delivery of the goods to the carrier and can be used as evidence in case of any disputes or claims that may arise during the transportation process.

LTL

LTL stands for Less Than Truckload, which refers to a shipping method used by carriers to transport smaller freight shipments that don't require a full truckload. In LTL shipping, multiple shipments from different customers are consolidated into a single trailer to maximize the use of the truck's capacity and reduce transportation costs. LTL use hub-and-spoke distribution networks, where shipments are transported to a central hub for consolidation and then delivered to their final destination.

Make or Buy Decision

A make or buy decision is a business strategy decision that involves choosing whether to produce goods or services internally (i.e., "make") or to outsource them from external suppliers or vendors (i.e., "buy"). The decision to make or buy is usually based on various factors, such as the company's core competencies, cost considerations, quality requirements, availability of suppliers, and strategic goals.

Manifest

A manifest is a document that lists the contents of a shipment or a load, usually in a standardized format. It provides important information about the items being transported, such as their quantity, weight, dimensions, and other relevant details. The manifest is used by logistics companies, shippers, and carriers to track and manage their inventory, monitor the movement of goods, and ensure compliance with regulatory requirements.

Market Demand

An estimated demand for a product/service within a given market demographic and time period.

Market Discovery Process

An evaluation and determination of attractive markets (by size and entry requirements).

Market Intelligence

The process of gathering and analyzing information about a company’s market to better understand customer’s wants and needs and to identify possible threats and opportunities to the company.

Market Positioned Warehouse

A Warehouse located in a geographic area containing a high population of customers, used to provide a ready source of products available the same day or next day to ordering customers in a manner more economical than overnight package shipments.

Market Segment

A market segment is a specific group of consumers within a larger market that share similar needs, characteristics, behaviors, or preferences. Market segmentation is the process of dividing a market into smaller segments to better understand and target specific groups of customers.

Market Share

Market share refers to the portion or percentage of a market's total sales or revenue that is earned by a particular company, product, or brand. It is a measure of a company's competitiveness and success in a particular market. For example, if a company's sales of a particular product represent $10 million out of a total market size of $100 million, the company's market share is 10%.

Market Strategy

Market strategy refers to a comprehensive plan developed by a company to reach its target customers and achieve its marketing objectives. It outlines the specific actions, tactics, and resources needed to effectively promote and sell a company's products or services in a competitive marketplace.

Materials Handling

Materials handling is the process of moving, controlling, and storing materials in a manufacturing, distribution, or logistics environment. It involves the physical movement of raw materials, components, and finished products from one location to another, as well as the management of storage facilities and equipment used in these processes.

Materials Management

Materials management is a critical component of supply chain management that focuses on the planning, procurement, storage, and control of raw materials, components, and finished products. It involves coordinating the movement of materials within and between organizations to ensure that the right materials are available at the right time and place, in the right quantity and quality, and at the lowest possible cost.

Materials Requirements Planning

Materials Requirements Planning (MRP) is a computer-based inventory management system that helps organizations to plan, schedule, and control the flow of materials required for manufacturing their products.

Maximum Inventory

Maximum inventory is the highest level of inventory that a company can hold without experiencing negative consequences. Maintaining too much inventory can tie up valuable resources, such as working capital, storage space, and labor, while too little inventory can result in stockouts and lost sales.

Maximum Order Quantity

The maximum order quantity refers to the largest amount of a product that a buyer can purchase from a seller in a single order. It is determined by the seller and can be influenced by various factors, such as production capacity, available inventory, and demand.

Merge in Transit

Merge in Transit (MIT) is a supply chain strategy that involves coordinating the delivery of components or products from multiple suppliers to a central location, where they are combined or merged into a single shipment and then delivered to the final destination. The objective of MIT is to streamline the supply chain and reduce transportation and inventory costs by consolidating shipments and reducing the number of shipments to the final destination.

MHE

MHE stands for "Material Handling Equipment." It refers to a range of tools, vehicles, and machinery used in logistics and supply chain operations to move, store, and handle materials and products. MHE includes equipment such as forklifts, pallet jacks, conveyors, cranes, and automated storage and retrieval systems. The right MHE can improve productivity, reduce operational costs, and enhance safety and accuracy in material handling processes.

Microservice arch

Microservice architecture, also known as microservices, is a modern software architecture approach that involves building applications as a collection of small, loosely coupled, and independently deployable services. Each service in a microservice architecture is responsible for a specific business functionality and communicates with other services over a network, typically using lightweight protocols such as HTTP or message queues.

Middleware

Middleware is software that acts as an intermediary between different applications or systems, allowing them to communicate and exchange data. It sits between the application and the operating system and provides a bridge that connects two or more applications, enabling them to share data and services.

Mixed Loads

Mixed loads refer to shipments that contain multiple products or items, often of different types, sizes, weights, or packaging. Mixed loads are common in logistics and transportation, where they are used to optimize the use of available space, reduce transportation costs, and improve supply chain efficiency.

MoM

Month on Month (MoM) refers to a comparison of data or performance between two consecutive months, typically used in business and financial analysis to track changes and trends over time. It involves comparing the data or performance of the current month with that of the previous month. MoM analysis is commonly used to assess changes in kPIs, such as sales, revenue, expenses, or other metrics, to identify patterns or trends and understand the month-to-month fluctuations in business performance.

Monolithic Arch

A monolithic architecture refers to a type of software architecture where an entire application or system is built as a single, self-contained unit, with all components tightly integrated and interconnected. In monolithic architecture, all the modules, components, and functionalities of the application are combined into a single codebase and deployed as a single deployable unit. This means that any changes to one part of the application may require modifications to other parts of the codebase.

MTD

Month till date (MTD) is often used as a reporting period in financial and accounting contexts to track performance or other metrics on a monthly basis. For example, if the current date is April 11th, the MTD period would be from April 1st to April 11th. It allows for monitoring and analysis of performance, trends, and progress during the current month. MTD reporting is commonly used in financial statements, budgeting, forecasting, and other performance tracking activities within organizations.

Multi leg shipment

A multi-leg shipment refers to a shipment that involves multiple transportation modes and/or multiple stops or destinations. For example, a multi-leg shipment may involve transporting goods by truck from a warehouse to a port, then by ship to another port, and finally by truck to a final destination. Multi-leg shipments can be complex to manage, as they require coordination and synchronization of different transportation modes and logistics operations.

Net Present Value

Net Present Value (NPV) is a financial metric used to calculate the value of an investment by comparing the present value of its expected future cash flows to the initial investment cost. NPV takes into account the time value of money, which is the principle that money available today is worth more than the same amount of money in the future due to the potential for earning interest or returns on investment.

Network

In logistics, a network refers to the interconnected system of transportation, distribution, and communication links that enable the movement of goods, services, and information between different locations. A logistics network typically consists of various components, such as transportation modes, distribution centers, warehouses, terminals, ports, hubs, and nodes, as well as the associated infrastructure, technology systems, and processes for managing the movement and storage of goods.

Network constraints

Network constraints in the context of logistics and supply chain management refer to limitations or restrictions that impact the design, configuration, or operation of logistics networks which consist of interconnected facilities, such as suppliers, manufacturers, distribution centers, warehouses, transportation hubs, and retail locations, as well as the transportation routes and flows that connect these facilities.

Nodes

In logistics, a node is a specific point in a supply chain where goods or materials are stored, processed, or transferred. Nodes can be physical locations such as warehouses, distribution centers, or ports, or they can be virtual points such as data exchange hubs or transaction processing centers. By strategically locating nodes in the supply chain, logistics companies can optimize the flow of goods, reduce transportation costs and lead times, and improve overall efficiency.

Non Conveyable

Materials which cannot be moved on a conveyor belt are called non conveyable materials or goods.

ODA Location

ODA location refers to an "Out of Delivery Area" location, which is a remote or difficult-to-reach location that is not easily accessible by regular delivery vehicles or carriers. This could include areas such as remote rural locations, mountainous regions, islands, or areas that are geographically isolated. ODA locations may require special handling, equipment, or additional resources to ensure that deliveries can be completed successfully.

ODC

ODC in logistics refers to "Over Dimensional Cargo", which is a type of cargo that exceeds the standard dimensional or weight limits for transportation. ODC cargo typically includes large, heavy, or oversized items such as machinery, equipment, industrial components, or construction materials. Due to their size, weight, and shape, ODC cargo requires specialized handling, equipment, and transportation services to ensure safe and efficient delivery.

Omni channel

Omni-channel is a distribution strategy that includes multiple methods of capture and delivery of merchandise to the customer. Channels covered typically include distribution to a DC, Retail Store, and direct to Consumer with order coming via traditional Purchase Orders, EDI, Web and Phone.

OMS

OMS stands for Order Management System, which is a software platform that helps businesses manage their order processing, from order entry to order fulfillment. An OMS can help companies track inventory levels, manage customer information, process orders, and track shipments. By providing real-time visibility into order and inventory data, an OMS can help companies improve operational efficiency, reduce errors, and improve customer satisfaction.

OPEX

Opex stands for operating expenses. It refers to the ongoing expenses a business incurs to keep its operations running, such as rent, salaries, utilities, and maintenance costs. These expenses are necessary to keep a business functioning but do not include one-time capital expenses such as purchasing a new building or equipment. In the logistics industry, examples of operating expenses include fuel costs, labor costs, maintenance costs, and administrative expenses.

Order

An order refers to a formal request made by a customer or a business entity to purchase goods or services from a supplier or vendor. An order typically includes details such as the quantity, type, and specifications of the goods or services, agreed-upon prices, delivery or shipment instructions, payment terms, and any other relevant terms and conditions.

Order Consolidation Profile

The activities associated with filling a customer order by bringing together in one physical place all of the line items ordered by the customer. Some of these may come directly from the production line others may be picked from stock.

Order Cycle

Order cycle is the time and process involved from the placement of an order to the receipt of the shipment.

Order Interval

Order interval is the set period of time which controls order placement in a fixed order point model.

Order Management

Order management is the process of managing activities involved in customer orders, manufacturing orders, and purchase orders. For customer orders this includes order entry, picking, packing, shipping, and billing.

Order Picking

Order picking is the function of gathering the items associated with an order from their storage locations in order to make them available to be included in production processes or to customers.

Order Processing

Order processing refers to the set of activities involved in managing and fulfilling customer orders, from the time an order is received to the time it is shipped to the customer. The order processing cycle includes several steps, including order entry, order confirmation, picking, packing, and shipping.

Order Promising

Order promising is the act of agreeing to a customer’s stated requirements for delivery of products or services to be provided in a given quantity on a given date.

Orientation Norms

Orientation norms refer to the standardized guidelines and practices for aligning goods in a specific manner to optimize space utilization, stability, and safety during storage or transportation based on their orientation. It may vary depending on the type of cargo, the mode of transportation, the storage facility, and other relevant factors. The purpose of orientation norms is to ensure efficient and safe utilization of space while minimizing the risk of damage or loss to the goods.

OTIF

OTIF stands for On-Time In-Full and is a performance metric used in logistics to measure the delivery performance of suppliers or logistics providers. The goal of OTIF is to ensure that shipments are delivered to customers on time and in the expected quantity and quality.

Out Of Stock

Out of Stock is the state of not having inventory at a location and available for distribution or for sell to the consumer (zero inventory).

Outbound Consolidation

Consolidation of a number of small shipments for various customers into a larger load. The large load is then shipped to a location near the customers where it is broken down and then the small shipments are distributed to the customers. This can reduce overall shipping charges where many small packet or parcel shipments are handled each day.

Outbound Logistics

Outbound logistics refers to the process of managing and transporting products and goods from a company's warehouse or manufacturing facility to the end customer or retail location. It involves all the activities that take place after a product is produced, including storage, transportation, and delivery.

Outlier

In statistics, an outlier is an observation or data point that lies an abnormal distance from other observations in a dataset. Outliers are typically identified by their deviation from the statistical norm or average, and they can have a significant impact on the overall analysis and interpretation of the data.

Outsource

Outsourcing is the practice of hiring an external company or individual to perform tasks or services that would normally be done in-house by the organization itself. The outsourced tasks or services can range from simple administrative tasks, such as data entry or customer service, to more complex functions such as accounting, IT, or manufacturing.

Overpack

Overpack is the practice of using a large box or carton to contain multiple smaller packages which are all going to the same destination in order to achieve a reduced overall shipping cost vs. the individual packages.

Pallet

A pallet is a flat transport structure made of wood, plastic, or other materials, designed to support goods in a stable manner during transportation and storage. Pallets are commonly used to move large quantities of goods, especially in warehousing, shipping, and distribution operations.

Pallet ground storage

Pallet ground storage refers to the practice of storing palletized goods directly on the ground, usually in an outdoor yard or storage area. This can be an inexpensive option for temporary or overflow storage, but it may also increase the risk of damage or theft to the goods. Pallets may be stored on a hard surface, such as concrete, or on a softer surface, such as gravel or dirt, depending on the availability and suitability of the storage area.

Pallet Jack

A pallet jack, also known as a pallet truck or pump truck, is a tool used in warehouses, distribution centers, and other logistics environments to move and transport pallets of goods. It is a manual or electrically powered piece of equipment designed to lift and move pallets from one location to another.

Pallet Racks

Pallet racks are a type of storage system used in warehouses, distribution centers, and other logistics facilities to store palletized goods. Pallet racks are typically made of steel and consist of upright frames, beams, and wire mesh decking. The frames are anchored to the floor and connected by horizontal and diagonal bracing to provide stability. The beams are mounted on the frames and support the pallets, while the wire mesh decking provides a flat surface for the pallets to rest on.

Parcel Case Strapping

Parcel case strapping, also known as box strapping or carton strapping, is a process used in logistics and shipping to secure and stabilize cartons or parcels for transport. The strapping is used to prevent the contents of the package from shifting or falling out during handling and transportation. The strapping material is usually made of plastic or steel and comes in rolls of varying widths and thicknesses.

Part Period Balancing

Part Period Balancing (PPB) is a technique used in inventory management to optimize the inventory levels of a particular item over a specific period. This technique involves adjusting the inventory levels of an item during the period to match the demand and supply of that item, with the goal of minimizing the costs associated with carrying excess inventory or stockouts.

Payables

In the context of accounting and finance, payables refer to the amount of money that a business owes to its suppliers or vendors for goods or services received but not yet paid for. Payables are a form of short-term liability for a business and are typically recorded in the accounts payable account on the balance sheet. Payables arise from the credit terms and payment arrangements negotiated with suppliers or vendors.

PCR Tyre Type

PCR stands for "Passenger Car Radial," and it refers to a type of tyre that is designed for use on passenger cars, SUVs, and light trucks. PCR tires are constructed with radial ply technology, which involves layers of steel or polyester cords that run perpendicular to the direction of travel, providing increased stability and durability.

Pegging

Pegging refers to the process of identifying the sources of supply and demand for a product within a production or distribution system. It involves tracing the flow of materials, components, and finished goods through the supply chain to determine where inventory is located, where it is needed, and how it is being used. It is often used in inventory management to help optimize the allocation of resources and to ensure that production and distribution activities are aligned with customer demand.

Percent of Fill

Percent of fill is a term commonly used to refer to the percentage of space or volume in a container, truck, or warehouse that is occupied by goods or products. It is a measure of how efficiently the available space is being utilized. For example, if a truck has a capacity of 10,000 cubic feet and is carrying 8,000 cubic feet of goods, the percent of fill would be 80%. This means that 80% of the available space is being utilized, and 20% is empty or unused.

Perfect Order

A perfect order is an order which satisfies criterias such as the order is delivered on time, the order is complete and accurate with no missing or incorrect items, the order is delivered in good condition with no damage to the product or packaging, the delivery is made to the correct location or address, the correct paperwork such as invoices and packing slips is included with the order.

Perfect Order Index

Perfect Order Index (POI) is a metric used to measure the overall performance of an organization's order fulfillment process. It is a calculation of the percentage of orders that meet all the criteria of a perfect order, which typically includes on-time delivery, complete and accurate order fulfillment, and damage-free delivery.

Performance constraints

Performance constraints in the context of logistics and supply chain management refer to limitations or restrictions that impact the performance or efficiency of logistics operations or processes. These constraints can affect the ability of a logistics system to meet desired performance metrics or achieve optimal operational outcomes. Performance constraints can arise from various sources and may include time constraints, cost constraints, resource constraints, capacity constraints, etc.

Period contract

In logistics, a "period contract" typically refers to a type of transportation contract or agreement between a shipper and a carrier that covers a specified period of time, typically months or years. It is a legal agreement that outlines the terms and conditions under which the transportation services will be provided during the agreed-upon period. It may include details such as the scope of services, rates, routes, responsibilities of each party, service level agreements, etc.

Perpetual Inventory

Perpetual inventory is a system of tracking inventory levels in real-time or near real-time, by continuously updating inventory records as transactions occur. It involves maintaining a running balance of inventory on hand by recording all movements of goods in and out of the inventory, such as purchases, sales, returns, and adjustments.

Perpetual Inventory Counting

Perpetual inventory counting (PIC), also known as continuous inventory counting, is a method of managing inventory where inventory levels are continuously and systematically tracked in real time. It involves regularly updating the inventory records to reflect the actual physical inventory levels through ongoing counts or scans, rather than relying on periodic physical inventory counts. When items are received into inventory, sold or otherwise consumed, the records are immediately updated.

Pick and Pack

Pick and pack is a fulfillment process that involves selecting and packing individual products or items from bulk quantities and preparing them for shipment to customers. This process typically occurs in a warehouse or distribution center, where orders are received, items are picked from inventory, and then packed for shipping.

Pick to Carton

Pick-to-carton logic uses item dimensions/weights to select the shipping carton prior to the order picking process. Items are then picked directly into the shipping carton.

Pick to Clear

A method often used in warehouse management systems that directs picking to the locations with the smallest quantities on hand.

Pick to Light

Pick-to light systems consist of lights and LED displays for each pick location. The system uses software to light the next pick and display the quantity to pick.

Pick to Trailer

Order-picking method where the order picker transports the materials directly from the pick location to the trailer without any interim checking or staging steps.

Picking

Picking is a process within the order fulfillment process in which items are selected from inventory to fulfill customer orders. It involves locating and selecting the correct items from storage locations, verifying the accuracy of the items selected, and preparing them for shipment.

Picking by Aisle

Picking by aisle is a method of order picking used in warehouse and distribution centers where orders are fulfilled by picking items from designated aisles or zones in the warehouse. In a picking by aisle system, the warehouse is divided into different zones or aisles, each containing specific products or product categories. When an order is received, the picker is assigned to a specific zone or aisle, where they pick the required items for the order.

Picking by Source

Picking by source is a method of order picking used in warehouse and distribution centers where orders are fulfilled by picking items from their original location or source within the warehouse. In a picking by source system, each item in the warehouse is assigned a unique location or source, and when an order is received, the picker is directed to the specific location or source of each item required for the order.

Picking list

A picking list is a document used in warehouse operations to indicate which items need to be picked from the inventory to fulfill a customer order or replenish stock. The picking list contains information such as the item name, location in the warehouse, and quantity required. Warehouse personnel uses the picking list to gather the necessary items from the storage location and prepare them for shipping or stocking.

Pigeon Holes racks

Pigeon hole racks are a type of storage system that consists of small compartments or cubbyholes arranged in a grid pattern. These cubbyholes are typically open at the front and can be used to store a wide variety of items such as papers, files, letters, documents, books, tools, or small parts. The name "pigeon hole" comes from the resemblance of the small compartments to the nesting spaces that pigeons use.

Piggyback

Piggybacking, in logistics and transportation, refers to the practice of loading one transportation vehicle onto another for more efficient transport. The term "piggyback" originally referred to the practice of loading trucks onto trains for long-distance transport, but it now encompasses a broader range of transport modes and methods.

Pin Lock

A hard piece of iron, formed to fit on a trailer's pin that locks in place with a key to prevent an unauthorized person from moving the trailer.

Planning

Planning is the process of determining in advance what goals or objectives to achieve, and how to achieve them. It involves analyzing current conditions, setting goals or targets, identifying potential courses of action, evaluating alternatives, making decisions, and establishing a roadmap for achieving desired outcomes. In logistics, planning activities may include demand planning, capacity planning, inventory planning, transportation planning, route planning, warehouse planning, etc.

Point of intersects

In logistics, the term "point of intersection" refer to a location where two or more transportation modes, such as roads, railways, or shipping lanes, intersect or converge. These points of intersection are typically critical points in the transportation network where goods or shipments may be transferred between different modes of transportation, such as from trucks to trains or from ships to trucks.

Pooling

A shipping term for the practice of combining shipment from multiple shippers into a truckload in order to reduce shipping charges.

Pro Forma Invoice

A pro forma invoice is a document that provides a preview or estimate of the total cost of a shipment, including the cost of goods, shipping, taxes, and other fees. It is not a legally binding document and does not demand payment. Instead, it serves as a preliminary invoice that outlines the details of a transaction, which may be subject to change based on the final shipment details.

Procurement

Procurement refers to the process of acquiring goods, services, or works from an external source, such as suppliers or vendors, for use in an organization's operations. The procurement process typically includes a range of activities, such as identifying requirements, supplier selection, negotiation, contracting, and purchase order processing.

Product constraints

Product constraints refer to limitations or restrictions related to the characteristics, nature, or properties of a specific product that can impact logistics and supply chain operations. Product constraints can vary widely depending on the type of product being transported or stored, and may include factors such as size and weight, fragility, hazardous materials, perishability, special handling requirements, shelf-life or expiration dates, and regulatory requirements.

Proof of Delivery

Proof of delivery (POD) is a document or electronic record that serves as evidence that a shipment or delivery has been received by the intended recipient. It confirms that the goods or services have been delivered to the customer and that they have accepted the delivery.

Pseudo code

Pseudocode is a simplified, high-level description of a computer program's logic or algorithm that uses natural language constructs to outline the steps of a solution without adhering to the syntax of any specific programming language. It is a way to plan, design, and communicate the logic of a program or algorithm in a human-readable format that can be easily understood by both technical and non-technical stakeholders.

Pull Ordering System

A Pull Ordering System, also known as a Pull System, is a method of inventory control and order fulfillment where orders are triggered based on customer demand. In a pull system, the inventory is replenished only when there is a demand for the product, rather than based on a predetermined schedule or forecast.

Push Back Rack

Push back rack is a type of pallet storage system used in warehouses and distribution centers. In a push back rack system, pallets are loaded onto a series of nested carts, which are placed on inclined rails within the rack. When a new pallet is loaded, it is pushed back into the rack, causing the pallets behind it to move back one position. This allows the next pallet to be loaded onto the cart in front, and the process is repeated until the rack is full.

Push Ordering System

A Push Ordering System, also known as a Push System, is a method of inventory control and order fulfillment where inventory is ordered and produced in advance of customer demand. In a push system, inventory is ordered and produced based on a predetermined schedule or forecast, regardless of the actual demand for the product.

Putaway

Putaway is the process of moving goods or products from a receiving area to their designated storage location within a warehouse or distribution center. During putaway, goods are typically received from a supplier, and then sorted and organized based on factors such as size, weight, fragility, and demand. The products are then moved to their designated storage location using equipment such as forklifts, pallet jacks, or conveyor systems.

Quality Assurance

Quality assurance (QA) in logistics is the process of ensuring that the products or goods being produced or delivered meet the required quality standards and customer expectations. Unlike quality control, which focuses on identifying and correcting defects and issues after they have occurred, quality assurance is a proactive approach that aims to prevent quality issues from occurring in the first place.

Quality Control

Quality control in logistics is the process of ensuring that products or goods meet the required quality standards throughout the supply chain. It involves the implementation of measures and procedures to monitor and manage the quality of products, starting from the raw materials used in production, through manufacturing and assembly, to final delivery to customers.

Quick Codes

Quick codes in logistics are a type of code used to identify specific items, locations, or processes in the supply chain. They are typically used to facilitate communication and data exchange between different stakeholders such as shippers, carriers, and warehouses. Quick codes are designed to be simple and easy to use, and they often consist of a short sequence of letters or numbers. Examples of quick codes used in logistics include product codes, location codes, and carrier codes.

Racks

Racks refer to structures or systems designed for storing goods in an organized and efficient manner. Racks are commonly used in warehouses, distribution centers, and other storage facilities to maximize space utilization, facilitate inventory management, and streamline the handling and retrieval of goods. Racks can come in various types and configurations, depending on the specific needs of the operation and the characteristics of the goods being stored.

Random Location Storage

Random Location Storage (RLS) is a storage method in which items are stored in any available space within a warehouse or storage facility based on its size and weight, rather than being assigned to specific, predetermined locations.

Reach Truck

Reach trucks are the class of lift trucks which have the ability to extend their forks to place or remove a pallet onto/from a rack.

Receivables

In the context of accounting and finance, receivables refer to the amount of money that a business is owed by its customers or clients for goods sold or services rendered, but not yet collected. Receivables are considered assets on the balance sheet of a business, as they represent the right to receive payment from customers in the future. When goods are delivered or services are rendered to customers on credit, the amount owed by the customers is recorded as accounts receivable.

Receiving Dock

A receiving dock is an area of a warehouse, distribution center, or manufacturing facility where incoming shipments are received and processed. It is typically located near the entrance of the facility and is designed to accommodate the arrival and unloading of trucks and other vehicles carrying goods.

Reconsignment

Reconsignment refers to the process of changing the destination of a shipment after it has already been dispatched from the original point of origin. It typically occurs when the initial shipping instructions need to be changed due to changes in the customer's needs or requirements. For example, if a customer's delivery address changes after the shipment has already been sent, the shipper may need to arrange for the shipment to be redirected to the new address.

Relay Terminal

Relay terminal is a motor carrier terminal designed to facilitate the substitution of one driver for another who has driven the maximum hours permitted.

Reorder point

A reorder point is a term used in inventory management to identify the minimum level of stock that needs to be on hand before new inventory is ordered. In other words, it is the point at which a company needs to reorder inventory to avoid stockouts or shortages. The reorder point is calculated based on factors such as the lead time for ordering and receiving inventory, the average rate of sales or consumption, and the desired level of safety stock.

Reserve Storage

Reserve storage is a type of warehousing strategy in which a portion of the inventory is held in storage for future use. Reserve storage is typically used for products or materials that have a lower turnover rate or are not in high demand, but are still necessary for business operations.

Return Disposal Costs

Return disposal costs refer to the expenses incurred by a company to dispose of returned or unsold products. These costs can include transportation, handling, and processing fees, as well as any costs associated with recycling or disposing of the product.

Return Goods Handling

Return goods handling refers to the process of managing products that have been returned by customers or are otherwise unsold.

Return Product Authorization

Return Product Authorization (RPA) is a process used by companies to manage returns of products from customers. It is typically initiated by a customer who wishes to return a product for various reasons. The RPA process involves obtaining authorization from the company to return the product. The company reviews the request and either approves or denies the RPA based on their return policy and the reason for the return.

Returns Inventory Costs

Returns inventory costs refer to the expenses incurred by a company related to managing and storing returned products that are not immediately resalable. When a product is returned, it must be inspected to determine its condition and whether it can be resold or if it needs to be disposed of or recycled. If the product is not immediately resalable, it must be stored in inventory until it can be processed or otherwise disposed of.

Returns Processing Cost

Returns processing cost refers to the expenses incurred by a company to process returned products from customers. When a customer returns a product, it must be inspected, tested, repaired, and/or repackaged before it can be resold. The cost of these processes can vary depending on the condition of the returned product and the policies of the company.

Reverse Logistics

Reverse logistics is the process of managing and handling the return, reuse, recycling, or disposal of products or goods that have been previously sold or delivered to customers. This can include managing the transportation, storage, and processing of products, as well as handling customer returns, repairs, and warranty claims.

RFI

RFI stands for Request for Information. It is a document or inquiry sent to potential suppliers or vendors by a company or organization to gather information about their products, services, capabilities, and pricing.

RFID

RFID stands for Radio Frequency Identification, which is a technology that uses radio waves to identify and track objects. It typically consists of a reader or scanner, and a tag or transponder. The tag contains an antenna and a small integrated circuit (IC) that can store information such as a unique identifier or product code. When the tag is within range of the reader, the radio waves transmitted by the reader power the tag and allow it to transmit its stored information back to the reader.

RFP

RFP stands for Request for Proposal. It is a document or formal invitation sent by a company or organization to potential suppliers or vendors, inviting them to submit a proposal to provide goods or services.

RFQ

RFQ stands for Request for Quotation. It is a document or formal invitation sent by a company or organization to potential suppliers or vendors, requesting a quote for the supply of goods or services.

Risk Management

Risk management is the process of identifying, assessing, and mitigating risks in order to minimize the impact of negative events on an organization. Risks can come from a wide variety of sources, including financial, operational, legal, regulatory, and environmental factors.

ROA

ROA stands for Return on Assets. It is a financial ratio that measures a company's profitability in relation to its total assets. The ROA formula is calculated by dividing a company's net income by its total assets. The result is a percentage that represents the amount of profit a company generates for each dollar of assets it owns.

ROI

ROI stands for Return on Investment. It is a financial metric used to measure the profitability of an investment or business venture. The ROI formula is calculated by dividing the net profit or gain from an investment by the total cost of the investment and expressing the result as a percentage. This allows investors to compare the potential return of different investment opportunities and to evaluate the efficiency of their investments.

Root Cause Analysis

Root cause analysis (RCA) is a systematic process used to identify the underlying causes of a problem or event, with the goal of addressing the root cause rather than just the symptoms. The process involves identifying the factors that led to an event, determining the contributing factors, and identifying the root cause.

Route planning

Route planning is the process of identifying and selecting the most efficient and cost-effective transportation routes for moving goods from one location to another. In logistics, route planning is critical, as it can significantly impact the cost, speed, and reliability of shipments. It typically involves analyzing a variety of factors, such as the distance between pickup and delivery locations, mode of transportation, traffic patterns, etc that can affect the time and cost of transportation.

Routing

Routing in logistics refers to the process of determining the optimal path for the movement of goods or products from one location to another. This involves selecting the most efficient and cost-effective route, based on factors such as distance, time, traffic patterns, road conditions, and shipping regulations.

Safety Stock

Safety stock is the additional inventory that a company holds as a buffer to mitigate the risk of stockouts or supply chain disruptions. Safety stock is typically used in conjunction with a demand forecast to determine the appropriate level of inventory needed to meet customer demand while minimizing the risk of stockouts.

Scalability

Scalability refers to the ability to efficiently and effectively handle increasing levels of demand or volume without sacrificing quality or increasing costs disproportionately. This means that an operation or process that is scalable can grow or shrink in response to changes in demand or other market conditions without requiring significant changes to its underlying structure or processes.

Scenario Forecasts

Scenario forecasting is a strategic planning method used to anticipate and prepare for possible future events or situations. It involves creating a range of plausible scenarios that depict different future outcomes based on a set of assumptions about the variables and factors that could affect the organization, industry, or economy.

Schedule

In logistics, a schedule refers to a pre-determined plan or timetable for the movement of goods from one location to another. A schedule is typically created by logistics planners to optimize the movement of goods, minimize costs, and ensure timely delivery. A logistics schedule can include a variety of information, such as the pickup and delivery locations, the mode of transportation, the expected arrival and departure times, and any special instructions or requirements for the shipment.

SCOR

The Supply Chain Operations Reference (SCOR) model is a widely recognized framework for supply chain management. It provides a comprehensive set of processes, metrics, and best practices for managing and optimizing the performance of a supply chain. Some of the key metrics include on-time delivery, inventory turns, perfect order fulfillment, and cash-to-cash cycle time. The SCOR model consists of five core processes: Plan, Source, Make, Deliver, Return.

Seasonality

Seasonality refers to the pattern of regular and predictable changes in a particular phenomenon, such as sales, demand, or weather, that occur over the course of a calendar year. These changes are often influenced by factors such as holidays, weather patterns, and cultural events.

Sequencing

In logistics, sequencing refers to the process of arranging goods in a specific order based on their destination, priority, etc. Sequencing is often used in order picking and order fulfillment, where goods must be collected from a warehouse and prepared for shipment. Sequencing may involve arranging goods on shelves in a specific order to facilitate picking and packing, or it may involve sequencing the order in which orders are processed to ensure that high-priority orders are handled first.

Serial Shipping Container Code

The Serial Shipping Container Code (SSCC) is a globally recognized identification number used to track and trace products as they move through the supply chain. It is a 18-digit code that is typically printed as a barcode on a shipping container or pallet, allowing for automated data capture and processing.

Service Level

Service level refers to the performance or quality targets that an organization sets for its customer service operations. It is a key metric used to measure how well a business is meeting the needs and expectations of its customers.

Shelf life

Shelf life refers to the period of time during which a product can be stored under appropriate conditions and remain safe to consume or use, while still meeting its intended quality standards. It is the length of time that a product can remain on a store shelf or in a warehouse before it becomes unsuitable for consumption or use.

Ship Points

Ship points, also known as shipping points, are specific locations in the logistics supply chain where products or materials are shipped from. The ship point is where the products or materials are loaded onto a carrier, such as a truck, train, or ship, and transported to the destination. By strategically choosing ship points, logistics companies can optimize their transportation routes and minimize transit times and costs.

Shipping barcodes

Shipping barcodes are unique codes that are used to identify and track packages as they move through the logistics network. The most common type of shipping barcode used today is the 1Dbarcode, also known as the Universal Product Code(UPC).

Short haul

Short-haul typically refers to transportation or travel over relatively short distances, such as within a local or regional area. It is the opposite of long-haul, which refers to transportation or travel over longer distances, such as between cities or across continents.

Short Shipment

Short shipment refers to a situation where a shipment or delivery of goods is incomplete or contains fewer items than what was originally ordered or expected. It can occur due to a variety of reasons, such as inventory errors, shipping mistakes, or damaged or lost items during transit.

Shrinkage

In business and retail contexts, shrinkage refers to the loss of inventory between the point of purchase from a supplier and the point of sale to a customer. It is the difference between the recorded inventory and the actual inventory that is available for sale.

Sigma

Sigma (σ) is a statistical measure used to quantify the variability or dispersion of a process or system. It is a standard deviation (SD) measure that represents the degree of variation in a set of data points relative to the mean or average value.

Single leg shipment

A single-leg shipment refers to a shipment that involves only one transportation mode and has a single origin and destination. For example, a single-leg shipment may involve transporting goods by truck from a warehouse to a retail store.

Single Period Inventory Models

Single-period inventory models, also known as newsboy models, are mathematical models used in inventory management to determine the optimal quantity of inventory to order or produce for a single selling season or period. In this model, the inventory decision is based on the probability distribution of demand for a particular product or item during the selling season or period. The goal is to find the optimal order quantity that maximizes the expected profit or minimizes the expected loss.

Single Source Leasing

Single-source leasing is a type of leasing arrangement where a company leases multiple types of equipment or assets from a single leasing provider or lessor. Instead of working with multiple lessors for different types of equipment, a company consolidates all of its leasing needs with a single provider.

Single Sourcing

Single sourcing is a procurement strategy where a company purchases all of its goods or services from a single supplier, rather than from multiple suppliers. This means that the company relies entirely on one supplier for a particular product or service, rather than having a diversified supplier base.

Six Sigma Quality

Six Sigma is a quality management methodology that seeks to improve the quality of processes, products, and services by reducing defects and minimizing variability. The goal of Six Sigma is to achieve a level of quality where there are no more than 3.4 defects per million opportunities, which is equivalent to a 99.99966% defect-free rate.

SKU

A Stock Keeping Unit (SKU) is a unique code or identifier assigned to each product or item in inventory. SKUs are used in logistics and supply chain management to track and manage inventory levels, as well as to facilitate efficient order fulfillment and replenishment processes. Each SKU typically includes information about the product or item, such as its size, color, style, or other attributes that distinguish it from other items in inventory.

SLA

SLA stands for Service Level Agreement. It is a contractual agreement between a service provider and a customer that specifies the level of service the provider is expected to deliver. SLAs are commonly used in various industries such as information technology, telecommunications, and logistics, to establish clear expectations for service quality and to ensure that both parties are aware of their rights and responsibilities.

Slip Seat Operation

Slip seat operation is a logistics practice that involves multiple drivers using the same vehicle for different shifts or routes. In a slip seat operation, a driver completes their assigned shift or route and then hands over the vehicle to another driver who takes over for the next shift or route.

Slip Sheet

A slip sheet is a thin, rigid sheet made of materials such as plastic or cardboard, that is used in material handling to move and transport goods. Slip sheets are typically used as an alternative to pallets, and are designed to fit underneath loads of goods in order to facilitate their movement and handling.

Slotting

In logistics and warehousing, slotting refers to the process of assigning optimal storage locations for items within a warehouse or distribution center. The goal of slotting is to increase efficiency in picking, replenishment, and restocking of inventory by placing items in the most appropriate location based on their characteristics and demand patterns.

Smart Label

A smart label is a type of label that includes an electronic component, such as a microchip or a radio frequency identification (RFID) tag, that can store and transmit information such as product information, expiration date, shipping and handling instructions, and tracking information about the product or item it is attached to. Smart labels can be used in a variety of applications, including supply chain management, inventory tracking, and product authentication.

Smart Locking

Smart locking in logistics refers to the use of technology-enabled locks and security systems to enhance the security and traceability of goods in transit. Smart locking systems typically incorporate a variety of sensors, GPS tracking, and wireless connectivity to enable real-time monitoring and control of cargo shipments.

Special Commodities Carrier

A special-commodities carrier is a type of transportation company that specializes in the handling and transportation of high-value or specialized goods that require special handling, equipment, and expertise. These may include items such as medical equipment, electronics, artwork, hazardous materials, and other valuable or sensitive items. Special-commodities carriers typically have specialized equipment and trained personnel to handle and transport these types of goods safely and securely.

Special Commodity Warehouses

Special-commodity warehouses are storage facilities that specialize in the handling and storage of high-value or specialized goods that require specific storage conditions, handling procedures, and security protocols. These may include items such as medical equipment, electronics, artwork, hazardous materials, and other valuable or sensitive items.

Split Case Order Picking

Split case order picking is a method of order fulfillment used in warehouses and distribution centers to pick individual items from cases or cartons in order to fulfill customer orders. This method is used when customers place orders for a variety of different products in small quantities, rather than ordering large quantities of a single product.

Spot Contract

In logistics, a "spot contract" refers to a type of transportation contract or agreement between a shipper and a carrier for transportation services that are arranged on an ad-hoc or as-needed basis, without a long-term commitment or contract in place. Spot contracts are typically used for short-term transportation needs, where the shipper requires immediate or temporary transportation services for a specific shipment or a limited period of time.

Spot Demand

Spot demand refers to the immediate or short-term need for a product or service in the marketplace. It is the demand for goods or services that arises unexpectedly or quickly, and is not part of a planned or ongoing purchase. In logistics and transportation, spot demand typically refers to the need for transportation services on short notice, such as when a company needs to move goods quickly due to unexpected changes in demand, production, or inventory levels.

Stable Demand

Stable demand refers to a situation where the demand for a product or service remains relatively consistent over time, with only minor fluctuations. This means that the level of demand does not change significantly in response to changes in market conditions, consumer behavior, or other factors.

Stackers

A stacker refers to a type of material handling equipment used for lifting, moving, and stacking goods in a vertical manner. Stackers are typically used in warehouses, distribution centers, and other logistics facilities to efficiently store and retrieve goods, especially in areas with limited space or height restrictions. Stackers are used for various tasks in logistics operations, including loading and unloading trucks, stacking goods in racks or shelves, and moving goods within a warehouse.

Stacking Norms

Stacking norms refer to the standardized guidelines and practices for stacking or arranging goods or cargo in a specific manner to optimize space utilization, stability, and safety during storage or transportation. Stacking norms may vary depending on the type of cargo, the mode of transportation, the storage facility, and other relevant factors. The purpose of stacking norms is to ensure efficient and safe utilization of space while minimizing the risk of damage or loss to the goods.

Staging

Staging refers to the process of preparing items, equipment, or resources for a specific task or operation. In a business or manufacturing context, staging typically involves assembling the necessary materials or components and organizing them in a way that makes them easily accessible for use.

Statutory constraints

Statutory constraints refer to legal or regulatory limitations which are imposed by government agencies or regulatory bodies and must be complied with to ensure legal compliance and avoid penalties or fines. It can vary depending on the country, region, industry, or type of goods being transported. Some examples of statutory constraints include customs regulations, transportation regulations, environmental regulations, labor regulations, licensing and permits, security regulations.

Stickering

Stickering refers to the process of applying labels or stickers to products, packages, or pallets in a warehouse or distribution center. Stickering is an important part of many supply chain operations, as it allows companies to track and identify products more easily, and to comply with labeling and regulatory requirements.

Stock Audits

Stock audit is a process of verifying and reconciling the physical stock or inventory of goods with the corresponding data in a company's inventory management system. The purpose of a stock audit is to ensure accuracy and integrity of inventory data, identify any discrepancies or discrepancies between physical stock and recorded stock, and provide an accurate and up-to-date picture of the company's inventory position. Stock audits may be conducted by internal audit teams or external auditors.

Stock Out

Stock out is a situation in which a company runs out of stock or inventory of a particular product, item, or SKU. This means that the product is no longer available for sale, and customers are unable to purchase it. Stockouts can occur due to various reasons such as unexpected spikes in demand, supply chain disruptions, production delays, or poor inventory management.

Stock Replinishment

Stock replenishment is the process of restocking inventory to maintain adequate levels of products or materials for sale or production. This process involves tracking inventory levels and ordering additional stock when levels fall below a predetermined threshold.

Stockless Inventory

Stockless inventory, also known as just-in-time (JIT) inventory, is a supply chain management strategy that aims to reduce inventory carrying costs and waste by relying on tight coordination between suppliers and customers. Under this strategy, suppliers deliver goods to customers as they are needed, often in small, frequent shipments, rather than storing large amounts of inventory on site.

Stockout Cost

Stockout cost refers to the cost or negative impact that occurs when a company runs out of inventory, and as a result, is unable to meet customer demand. The cost of a stockout can include lost sales, customer dissatisfaction, damage to brand reputation, increased shipping and handling costs, etc. Additionally, there may be costs associated with expediting production or purchasing additional inventory to meet demand, as well as the cost of holding excess inventory to avoid future stockouts.

Stop Sequence

Stop sequence refers to the specific order in which a delivery driver or courier visits multiple stops on a delivery route. The stop sequence is typically determined by a routing and scheduling algorithm that takes into account various factors such as the location of each stop, the estimated time required to complete each delivery, traffic patterns, and driver availability.

Straight Truck

A straight truck, also known as a box truck or cube truck, is a type of truck that has a cab for the driver and a cargo area that is permanently attached to the cab. Unlike tractor-trailers, straight trucks do not have a separate trailer, but instead have an integrated cargo area.

Stretch Hood

Stretch hood is a method of pallet packaging similar to stretch wrap. The stretch hood technique involves feeding a length of plastic sleeve over the pallet while simultaneously stretching it out to the proper size. The stretchers release the film, allowing it to shrink and contain the contents of the pallet after the sleeve has been fitted, cut, and sealed at the top to create a watertight enclosure.

Stretch Wrap

Stretch wrap, also known as stretch film, is a type of packaging material that is used to wrap and secure products onto pallets for transportation and storage. The film is made of plastic and can be stretched around the products, creating a tight and secure seal.

Sub SKU

Sub-SKU stands for Sub-Stock Keeping Unit. It refers to a variant of a product that is considered as a separate unit for inventory tracking purposes. For example, a clothing retailer may have a main SKU for a particular shirt style, but different Sub-SKUs for different sizes and colors of that same shirt. Each Sub-SKU would be assigned its own unique identifier for inventory tracking and management purposes, even though they all belong to the same main SKU.

Sub Tier Suppliers

Sub-tier suppliers are companies that provide goods or services to a company's primary suppliers. In other words, they are suppliers to suppliers. For example, if a car manufacturer buys parts from a Tier-1 supplier, the Tier-1 supplier may purchase components from a Tier-2 or even Tier-3 supplier. These lower-tier suppliers are known as sub-tier suppliers.

Supermarket Approach

The supermarket approach in logistics refers to a supply chain management strategy in which products are stocked and delivered based on consumer demand, similar to how supermarkets stock and replenish their shelves. This approach is also known as the pull system.

Supplier Cycle Time

Supplier cycle time refers to the length of time it takes for a supplier to fulfill an order or deliver a product or service to a customer. It is the total time from the moment the customer places an order until the supplier delivers the order, including order processing, production, packaging, and transportation time.

Supply

Supply refers to the availability of goods or services that can be offered to meet consumer demand. It represents the quantity of products or services that businesses are willing and able to provide to the market. It can be influenced by various factors such as production capacity, availability of raw materials, transportation capacity, and storage capacity. Managing the supply of goods or services is crucial, as it helps to meet customer demand while minimizing costs and optimizing resources.

Supply Chain

A supply chain refers to the network of companies, organizations, people, activities, information, and resources involved in the production and delivery of goods and services to customers. It encompasses all the stages and processes involved in the creation, procurement, transformation, and distribution of products or services, from raw materials to the end consumer.

Supply Chain Management

Supply chain management (SCM) is the coordination and management of all the activities and resources involved in the production and delivery of goods and services from the supplier to the end customer. SCM encompasses all the stages of the supply chain, from procurement of raw materials to delivery of finished products to the customer, and involves the management of the flow of goods, services, and information.

Supply Chain Network Design Systems

Supply chain network design systems refer to the software and tools used to optimize the design and configuration of a company's supply chain network. These systems typically use advanced analytics, simulation, and modeling techniques to help companies make strategic decisions about their supply chain infrastructure, such as the number and location of warehouses, production facilities, and distribution centers.

Tare Weight

Tare weight refers to the weight of a container or vehicle when it is empty or devoid of any cargo or contents. It is the weight of the container or vehicle itself, without including the weight of the goods or materials being transported or stored.

Target Costing

Target costing is a cost management approach used in product development and manufacturing that focuses on setting a target cost for a product or service based on market demand, customer requirements, and desired profit margins. It involves determining the maximum cost that can be incurred while still achieving the desired profit margin, and then designing and manufacturing the product or service to meet that target cost.

Tax Invoice

A tax invoice is an official document that is used to request payment from a customer for goods or services that have been provided by a seller. Tax invoices are required to be issued for all taxable transactions, and it include details such as the seller's name and address, the buyer's name and address, the date of the transaction, a unique invoice number, a description of the goods or services provided, the total price including taxes, and the tax registration number of the seller.

Tender

A tender refers to the process of inviting bids or proposals from potential transportation service providers for the transportation of goods or services. It is also known as a request for quotation (RFQ), request for proposal (RFP), or request for tender (RFT), depending on the specific industry and region.

Tendering

Tendering in logistics refers to the process of soliciting bids or proposals from potential suppliers or service providers to obtain the best available offer for a specific task, project, or contract. It is a formal process that involves inviting bids or proposals, evaluating them, and selecting the most suitable bidder to fulfill the logistics requirements of a company or organization.

Terminal Delivery Allowance

Terminal Delivery Allowance (TDA) is a term used in logistics and transportation to refer to a compensation or allowance provided to carriers or transportation providers for the costs associated with delivering goods or shipments to a terminal or depot, where the goods are transferred to another mode of transportation or consolidated with other shipments.

Theoretical Cycle Time

Theoretical Cycle Time refers to the minimum time required to complete one cycle or iteration of a process or operation under ideal or theoretical conditions, assuming no interruptions, delays, or constraints. It is a concept used in various industries and fields, including manufacturing, logistics, and project management, to determine the expected or theoretical time required to complete a task or process without considering any external factors.

Theory of Constraints

Theory of Constraints is a system thinking approach that focuses on identifying and managing constraints or bottlenecks in complex systems, such as manufacturing processes, supply chains, projects, and organizations, with the goal of improving overall performance and achieving strategic objectives. The core concept of the Theory of Constraints is that every complex system has at least one constraint that limits its ability to achieve its goals.

Third Party Logistics

Third party logistics (3PL) is a service provided by logistics companies that provide outsourced logistics services to other companies. 3PL providers typically offer a range of services, including transportation, warehousing, inventory management, order fulfillment, and other value-added services such as packaging, labeling, and customs clearance.

Throughput

A measure of warehousing output volume (weight, number of units). Also, the total amount of units received plus the total amount of units shipped, divided by two.

Time Definite Services

Time definite services refer to transportation or logistics services that are designed to provide guaranteed delivery within a specified timeframe. These services are typically offered by carriers or logistics providers who specialize in expedited or time-sensitive shipments, and they are often used when time is critical and strict delivery deadlines must be met.

Time To Market

Time-to-market refers to the duration of time it takes for a product or service to be developed, manufactured, and made available for sale or use in the market. It is a critical metric in business and product development, as it represents the speed and efficiency with which a company can bring new products or services to market.

Time Utility

Time utility is one of the types of utility in marketing and economics that refers to the value or benefit that a consumer derives from the availability of a product or service at a particular time. Time utility is created by making products or services available to consumers when and where they need them, in a convenient and timely manner. By reducing the time-to-market, a company can create time utility for its customers, as it enables them to access the product or service sooner.

TMS

TMS stands for Transportation Management System, which is a software platform that helps businesses manage and optimize their transportation operations, including route planning and optimization, carrier selection, shipment tracking and visibility, freight audit and payment. By providing real-time visibility into transportation data, a TMS can help logistics companies improve operational efficiency, reduce transportation costs, and improve customer service levels.

Total Average Inventory

Total Average Inventory is a key performance metric used in supply chain management and inventory management to measure the average value of inventory held by a company over a specific period of time. It is calculated by taking the sum of the beginning inventory value and ending inventory value for a given period, and dividing it by 2, to obtain the average inventory value.

Total Cost Analysis

Total Cost Analysis is a financial management technique used to determine the overall cost of a product or service by taking into account all of the direct and indirect costs associated with it. This includes the cost of materials, labor, overhead, transportation, and other expenses that are incurred throughout the production process.

Total Cost of Acquisition

Total Cost of Acquisition (TCA) is the total amount of money that a company spends to acquire a new customer or a new asset, such as equipment or software. TCA includes not only the direct costs of acquiring a customer or asset, such as advertising, sales commissions, and purchase price, but also indirect costs such as administrative expenses and the cost of managing the relationship with the customer or asset over time.

Total Cost of Ownership

Total Cost of Ownership (TCO) is a financial estimate that helps organizations determine the total cost of a product or service over its entire lifespan. TCO includes all direct and indirect costs associated with a product or service, such as acquisition costs, operational costs, maintenance costs, and disposal costs. By considering all costs associated with a product or service, TCO helps organizations make better decisions about purchasing and managing assets.

Total Cost of Quality

Total Cost of Quality (TCQ) is a management tool used to measure the costs associated with ensuring quality in a product or service. TCQ includes all the costs of quality control activities, including prevention, appraisal, and failure costs.

Total Inventory Days of Supply

Total Inventory Days of Supply (TIDS) is a metric used to measure the number of days of inventory supply that a company holds in stock. It is calculated by dividing the total inventory value by the average daily usage or demand rate for the item. A low TIDS value indicates that a company is managing its inventory well and has a good balance between inventory levels and customer demand. On the other hand, a high TIDS suggests that a company may be overstocking or facing supply chain disruptions.

Total Package and Label Cycle Time

Total Package and Label Cycle Time (TPLCT) is a metric used in supply chain management to measure the time it takes to package and label a product from the time it is produced until it is ready for shipment. This metric includes all activities related to the packaging and labeling of a product, such as labeling, inspection, packaging, and palletizing.

Total Productive Maintenance

Total Productive Maintenance (TPM) is a maintenance strategy aimed at maximizing equipment effectiveness and productivity by involving all employees in the maintenance process. The goal of TPM is to reduce equipment downtime, improve overall equipment efficiency, and increase the lifespan of equipment.

Total Quality Management

Total Quality Management (TQM) is a management philosophy and approach that focuses on continuously improving the quality of products, services, and processes within an organization. TQM emphasizes the involvement of all employees at all levels of an organization in quality improvement efforts and aims to create a culture of continuous improvement, customer satisfaction, and organizational excellence.

Total Sourcing Lead Time

Total Sourcing Lead Time is the cumulative lead time (total average combined inside-plant planning, supplier lead time [external or internal], receiving, handling, etc.) needed to source 95% of the dollar value (per unit) of raw materials from internal and external suppliers is measured from the time the demand is identified at the factory until the materials are available in the production facility.

Trailer

A trailer refers to a large, enclosed or open container that is designed to be pulled by a powered vehicle, such as a truck or tractor, to transport goods or cargo from one location to another.

Trailer Drops

"Trailer drops" refer to a practice where a shipping trailer is left at a designated location, such as a warehouse or distribution center, without being immediately unloaded or picked up by a transportation carrier.

Transit time

Transit time refers to the amount of time it takes for goods or cargo to be transported from one location to another. It is a crucial factor in logistics planning, as it can impact delivery schedules, inventory management, and overall supply chain efficiency.

Transit Time

Transit time, also known as shipping time or transport time, refers to the duration it takes for goods or cargo to be transported from one location to another, typically measured in hours, days, or weeks. Transit time is an important factor in logistics and transportation planning, as it affects the overall efficiency of supply chain operations and impacts customer satisfaction.

Transload Facility

A transload facility, also known as a transloading facility or transshipment facility, is a location or facility where goods or cargo are transferred from one mode of transportation to another. Transloading is the process of transferring goods from one type of transportation mode, such as rail or truck, to another mode, such as truck or ship, without the need for intermediate warehousing or storage.

Transportation Cycle Time

Transportation cycle time, also known as transit time or transportation lead time, refers to the duration it takes for goods or cargo to complete a full transportation cycle from the point of origin to the point of destination and back to the point of origin. It encompasses the time taken for transportation activities such as pick-up, transit, delivery, and return, if applicable, and is typically measured in hours, days, or weeks.

Transportation Management System

A Transportation Management System (TMS) is a software solution that helps organizations efficiently manage their transportation operations, including planning, execution, and optimization of freight movements. Some key features of a typical TMS may include transportation planning and optimization, shipment execution and tracking, carrier management, freight consolidation and optimization, documentation and compliance, reporting and analytics, integration with other systems.

Transportation Requirements Planning

Transportation Requirements Planning (TRP) is a process that involves planning and managing transportation requirements for shipping goods from one location to another. TRP is typically carried out using specialized software tools that help organizations optimize their transportation activities. It involves forecasting transportation requirements based on factors such as customer orders, production schedules, inventory levels, transportation capacities, and service level agreements.

Transshipment

Transshipment refers to the process of transferring goods or cargo from one mode of transportation to another at an intermediate location, such as a port or terminal, rather than directly transporting it to the final destination. Transshipment is typically used when the final destination is not directly accessible by the initial mode of transportation.

Trend

In the context of business, economics, or data analysis, a trend refers to the general direction or pattern of change in a particular variable or set of variables over time. It represents the overall movement or trajectory of a variable, indicating whether it is increasing, decreasing, or remaining relatively stable over time.

Truck

A truck is a large motor vehicle that is designed to transport goods and materials. Trucks are used for a wide range of transportation tasks, from hauling raw materials and finished goods to delivering products to businesses and customers. Trucks come in a variety of sizes and configurations, from small pickup trucks to large semi-trailer trucks. They are typically equipped with large, powerful engines and heavy-duty suspension systems that allow them to carry heavy loads over long distances.

Truckload Carriers

Truckload carriers, also known as TL carriers or simply truckload carriers, are transportation companies that specialize in transporting goods via full truckload shipments. A truckload shipment refers to a shipment that fills up an entire truck, either by weight or volume, and is typically transported from one point to another without being combined with other shipments.

Truckload Lot

A truckload lot, also known as a truckload shipment, refers to a shipment that fills up an entire truck, either by weight or volume, and is transported from one point to another without being combined with other shipments. It is a type of transportation arrangement where the shipper contracts a carrier to transport a full truckload of goods from one location to another.

Two Bin system

The two-bin system is a simple inventory management method used to control and replenish inventory levels in a warehouse. It involves using two bins or containers for each item in inventory: one bin contains the "active" stock, while the other bin holds the "reserve" stock. When the active bin is emptied or reaches a pre-determined minimum level, it signals that the item needs to be replenished. The reserve bin is then used to meet the immediate demand.

Two Way Scorecards

Two-way scorecards, also known as two-dimensional or dual-scorecard systems, are performance measurement tools that assess the performance of entities, such as individuals, teams, departments, or organizations, from two different perspectives. These scorecards typically include two sets of metrics or key performance indicators (KPIs) that are used to evaluate performance from different angles, providing a more comprehensive and balanced view of performance.

Uniform Product Code

The Uniform Product Code (UPC) is a standardized barcode symbology used for identifying products in the retail and grocery industry. It is widely used in North America and other countries for point-of-sale (POS) scanning, inventory management, and supply chain operations.

Unit Load Device

A Unit Load Device (ULD) is a standardized container or pallet used in air cargo transportation to efficiently load, transport, and unload cargo on aircraft. It is designed to maximize the use of available space in the aircraft cargo hold, protect the cargo during transportation, and facilitate handling and transportation operations. ULDs come in various sizes and types, such as containers, pallets, and nets, and are typically made of lightweight but durable materials such as aluminum.

Unit of Measure

A unit of measure, often abbreviated as UOM, is a standardized quantity or value that is used to express the quantity or magnitude of a particular item or product. Units of measure are used to quantify and describe various physical, numerical, or abstract quantities, such as length, weight, volume, time, temperature, currency, and many others.

Unitization

Unitization, in the context of supply chain management and logistics, refers to the process of consolidating individual items or products into a single unit for transportation or handling purposes. This involves combining multiple items or products into a single unit, typically in a container, pallet, or other specialized equipment, to streamline handling, transportation, and storage operations.

Upstream

In the context of supply chain management and logistics, "upstream" refers to the earlier stages or activities of the supply chain that occur before the final product or service reaches the end customer. Upstream activities typically involve the sourcing, procurement, production, and transportation of raw materials, components, and other inputs that are used in the manufacturing or production process.

Value Chain

The value chain is a concept that describes the series of activities and processes that a company goes through to create and deliver a product or service to customers, and how value is added at each step along the way. It is a framework that helps businesses understand and analyze the different stages of their operations and how they contribute to the overall value created for customers and ultimately to the company's competitive advantage.

Value Chain Analysis

Value chain analysis is a strategic management tool used to analyze the series of activities and processes that a company goes through to create and deliver a product or service, and to understand how value is added at each step along the way. It is a systematic approach to examining a company's internal operations and activities in order to identify opportunities for improving efficiency, reducing costs, enhancing differentiation, or creating competitive advantage.

Value Proposition

A value proposition is a concise statement that communicates the unique value and benefits that a product, service, or solution offers to customers or stakeholders. It outlines why a customer should choose a particular product or service over others available in the market, and how it addresses their needs or solves their problems in a distinctive and compelling way. A well-crafted value proposition clearly communicates the value that a company provides, and differentiates it from competitors.

Value Stream

Value stream refers to the series of activities and processes that are required to deliver a product or service to customers, from the initial creation of value to the final delivery of the product or service to the end customer. It encompasses all the steps and resources involved in transforming raw materials, information, or other inputs into a finished product or service that is valuable to customers.

Vehicle asset type

Vehicle asset type refers to the specific type of vehicle that is owned or leased by a logistics company or transportation provider. It is a term used in asset management, which involves tracking and maintaining physical assets like vehicles, equipment, and facilities to ensure optimal performance and utilization. In logistics, vehicle asset types can include trucks, vans, trailers, and other types of vehicles that are used to transport goods or materials from one location to another.

Vehicle Capacity

Vehicle capacity refers to the maximum amount of goods that a particular vehicle can carry in a single trip. It is an important consideration in logistics planning, as it can impact the efficiency, cost, and speed of transportation. Logistics companies must carefully consider the capacity of their vehicles when determining the best routes, modes of transportation, and shipping schedules in order to minimize transportation costs and ensure that goods are delivered on time and in good condition.

Vehicle Telemetric Systems

Vehicle telemetric systems refer to the use of technology to collect, transmit, and analyze data related to the operation, performance, and location of vehicles. These systems typically involve the use of sensors, communication devices, and data analytics to capture and process information from vehicles in real-time or near real-time. It is used in a wide range of applications, including fleet management, vehicle tracking, driver behavior monitoring, and usage-based insurance, among others.

Vehicle Type

Vehicle type refers to the specific kind of vehicle used to transport goods from one location to another. There are many different types of vehicles, each with its own advantages and disadvantages depending on the nature of the cargo being transported, the distance and route of the shipment, etc. Some common types of vehicles used in logistics are Trucks, Vans, Railcars, Ships, Airplanes, etc. Choosing the right vehicle type can impact the efficiency, cost, and speed of transportation.

Vendor

A vendor is a person, company, or entity that sells goods, products, or services to customers. Vendors are also known as suppliers or sellers. In a business context, vendors are typically external entities that provide goods or services to a company or organization in exchange for payment. Vendors can be individuals, sole proprietorships, partnerships, corporations, or other types of legal entities.

Vendor Managed Inventory

Vendor Managed Inventory (VMI) is a supply chain management practice in which a supplier takes responsibility for managing the inventory levels of their products or goods at a customer's location. In VMI, the supplier is responsible for monitoring, replenishing, and maintaining the inventory levels based on agreed-upon parameters, such as stock levels, demand forecasts, and reorder points, without the customer needing to place specific orders.

Vendor Owned Inventory

Vendor Owned Inventory (VOI) is a supply chain management practice where a supplier retains ownership of the inventory throughout the supply chain until it is sold or consumed by the end customer. Under VOI, the supplier is responsible for managing and controlling the inventory levels, replenishing stock, and maintaining inventory accuracy, even though the inventory may be stored at the customer's location.

Vertical Integration

Vertical integration is a business strategy in which a company expands its operations into different stages of the supply chain or value chain by owning or controlling different levels of production or distribution. In other words, vertical integration involves a company extending its operations to include activities that are either upstream (towards suppliers) or downstream (towards customers) in the supply chain.

Vol Calculation

Vol calculation refers to the process of determining the volume of a shipment in logistics. It is used to determine the amount of space required to transport or store goods and to calculate shipping rates and charges. For example, the volume of a rectangular box can be calculated by multiplying the length, width, and height of the box. Alternatively, the volume of a non-rectangular shape can be calculated by measuring its dimensions and then using mathematical formulas to determine the volume.

Volumetric Weight

Volumetric weight, also known as dimensional weight, is a calculation used in logistics to determine the weight of a package based on its dimensions rather than its actual weight. This calculation is used when the package is lightweight but takes up a lot of space, which can impact the cost of transportation.

Warehouse

A warehouse is a commercial building or facility used for the storage of goods, inventory, or merchandise. It is a central location where raw materials, finished products, or goods in transit are stored until they are needed for distribution, sale, or use.

Wave picking

Wave picking is a method of order fulfillment used in warehouse management where multiple orders are grouped or batched together based on certain criteria, and then processed as a single unit, or "wave," in order to optimize picking efficiency. This approach is designed to streamline the picking process and improve order fulfillment productivity by consolidating picking tasks, reducing travel time, and maximizing picker productivity.

Waving Logic

Waving logic refers to the method or algorithm used to group or wave orders together for processing in a warehouse or distribution center. It is used to determine how orders are grouped or "waved" together based on certain criteria or rules, such as product characteristics, order priority, picking locations, order quantities, or delivery deadlines.

Waybill

A waybill is a document that serves as a receipt and contract for the transportation of goods by a transportation provider. It contains important information related to the shipment, such as the names and addresses of the sender and receiver, a description of the goods being transported, the quantity or weight of the goods, the agreed-upon transportation charges, shipment origin and destination, tracking or reference numbers for identification and tracking purposes.

Web Services

Web services are a standardized way of communication and interoperability between different software applications over the internet. They enable software systems to interact and exchange data with each other in a distributed and platform-independent manner, making them a crucial technology for building distributed applications and enabling seamless integration between disparate systems.

What If Scenarios

"What-if" scenarios, are hypothetical situations or scenarios that are used in decision-making, planning, or forecasting to assess the potential outcomes or consequences of different choices or actions. These scenarios are typically created to explore different possibilities and understand the potential impacts of different choices or events, without actually implementing them in reality.

Will Call

Will call refers to a method of delivery where the customer or consignee picks up the goods or products directly from the supplier or distribution center, instead of the supplier or carrier delivering the goods to the customer's specified location. In a "will call" arrangement, the customer or consignee typically places an order with the supplier or distributor, and then arranges to pick up the goods at a designated location, such as the supplier's warehouse or distribution center.

WMS

WMS stands for Warehouse Management System, which is a software application used to manage and control the operations of a warehouse or distribution center. WMS is designed to support and optimize the day-to-day activities of a warehouse, including inventory management, order fulfillment, receiving and shipping, and other related tasks.

WYSIWYG

WYSIWYG stands for "What You See Is What You Get." It is a term used to describe a type of user interface or editing environment where the content being edited or created appears on the screen exactly as it will be displayed or printed, without additional formatting codes or markup language. In other words, with a WYSIWYG interface, the content being edited or created is displayed on the screen in a visually representative manner, closely resembling how it will be presented in the final output.

XML

XML stands for eXtensible Markup Language. It is a markup language that is used for storing and exchanging structured data in a format that is both human-readable and machine-readable. XML is a widely used standard for describing data formats and facilitating data interchange between different systems, regardless of the platform or programming language used.

Yield

Yield is the ratio of a process's useful output to its input.

Yield Management

A pricing and revenue optimization strategy used in transportation to maximize revenue by adjusting fares or rates based on factors such as demand, time, and capacity.

YoY

YoY stands for "Year on year", which is a term used in business and finance to describe the comparison of a certain measure, such as revenue or profit, between the same time period in different years. It is a way to measure the performance of a company or industry over time, taking into account seasonal or cyclical trends. For example, if a company reports a revenue growth of 10% YoY, it means that its revenue in the current year is 10% higher than in the same period in the previous year.

Zero Inventory

Zero inventory, also known as zero inventory management or zero inventory strategy, is a supply chain management approach where a company maintains little to no inventory on hand. The goal of zero inventory is to minimize or eliminate the costs associated with carrying inventory while ensuring that the company is still able to meet customer demand in a timely manner. Zero inventory is typically achieved through a combination of just-in-time (JIT) manufacturing or procurement practices.

Zone Skipping

Zone skipping is a logistics strategy that involves bypassing certain transportation zones or hubs to streamline the delivery process and reduce costs. This strategy is typically used for long-distance shipments and involves consolidating multiple orders or shipments from different origins into a single, larger shipment that is transported directly to the destination zone or hub.

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