GLOSSARY OF TERMS
Acceptance – Receipt by the consignee of a shipment. This terminates the common carrier contract for transportation.
Accessorial Charges – An extra fee for services over and above transportation charges, which can include making extra stops in transit, unloading or handling.
Asset-based – A transportation company that owns its own equipment, usually trucks or containers.
Act of God – An irresistible superhuman cause, such as no reasonable human foresight, prudence, diligence and care can anticipate and/or prevent.
Aggregated Shipments – Several shipments from one or more different shippers to one consignee that are consolidated and treated as single consignment.
Accountability – Being answerable for, but not necessarily personally charged with, doing specific work. The principle which individuals, organizations and the community are responsible for their actions.
Accounts Payable (A/P) – The value of goods and services acquired for which payment has not yet been made.
Accounts Receivable (A/R) – The value of goods shipped or services rendered to a customer on whom payment has not been received.
Acknowledgement – A communication by a supplier to notify a purchaser that a purchase order has been received. It usually implies acceptance of the order by the supplier.
Arrival Notice – A notice furnished to a shipper, consignee or broker of the arrival of freight or a notification with the projected arrival and availability of freight for pickup.
Assign – To transfer of property to another party.
Audit – A methodical examination and review, often of an organization’s accounts or financial situation; a quality audit is the on-site verification activity, such as inspection or examination, of a process or quality system, to ensure compliance to requirements. A quality audit can apply to an entire organization or might be specific to a function, process or production step.
Back Haul – Back Haul refers to traffic moving along a route with lower than average volume. It applies in situations when there is a greater volume of traffic in one direction (Head Haul) than the opposite direction (Back Haul).
Back Order – The portion of an order that cannot be delivered at the scheduled time, but will be delivered at a later date.
Basing Point – A point upon which through rates to another destination are computed: For example, a rate from Louisville, Ky. to a point near Jacksonville, Fla. is computed as follows: The rate from Louisville to Jacksonville, plus the local rate from Jacksonville to the nearby point. Jacksonville, in this case, is a basing point.
Bill of Lading (BOL) – The written transportation contract between shipper and carrier (or their agents). It identifies the freight, the receiver, the delivery location and the terms of the agreement. All goods going to a receiver at one destination in a single shipment or on one truck must be on a single bill of lading.
Blanket Rate – A rate applicable from and/or to a group of points; a special rate applicable on several different articles in a single shipment.
Bond of Indemnity – An agreement made with a transportation company relieving it from liability for which it would otherwise be liable.
Booking – The act of recording arrangements for the movement of goods.
Bracing – Securing a shipment to prevent shifting during transport.
Break Bulk – To separate a composite load into individual shipments and route to different destinations.
Break Bulk Point – A place where a composite load is separated into individual shipments and routed to different destinations.
Breakdown – The height of the pallet is reduced to meet the receiver’s specifications. This normally applies to pallet loads of single items.
Brokerage – A person or business, authorized by the Federal Motor Carrier Safety Administration, that arranges the transportation of persons or property in interstate commerce by motor carrier.
Bulk Freight – Freight not in packages or containers.
Burden of Proof – The obligation to prove disputed facts at issue in a legal proceeding. For instance, the Interstate Commerce Act provides that the burden of proof is upon the carriers to show that change in rates, rules, etc., are reasonable.
Business Planning & Review – A regularly scheduled review of information to ensure continuing suitability, adequacy, and effectiveness and to assess opportunities for improvement.
Business Process Outsourcing (BPO) – The practice of outsourcing non-core internal functions to third parties. Functions typically outsourced include logistics, accounts payable, accounts receivable, payroll, and human resources. Other areas can include IT development or complete management of the IT functions of the enterprise.
Carmack Amendment – An amendment to the Interstate Commerce Act, which specifies carrier legal liability in connection with the bill of lading.
Carrier – An individual, partnership, or corporation engaged in the business of transporting goods or persons.
Carrier's Lien – Carrier's claim on property if has transported as security for charges.
Cartage (Local) – Hauling between locations in the same town, city or commercial zone.
Certificate of Weight – An authoritative statement of the weight of a shipment.
Change Order – A formal notification that a purchase order must be modified in some way.
Chassis – A special trailer or undercarriage on which containers are moved over the road.
Chimney Block – The process of loading pallets by putting one in straight and one in turned, and altering that, to make the most of the space.
Claim – A demand made upon a transportation company for payment on account of loss or damage alleged to have occurred or for a refund of an overcharge.
Class and Commodity Tariff – A tariff containing both class and commodity rates.
Class Rate – A transportation charge set for a group of commodities. Unless an article is given a special freight rate, it is grouped with others of a similar nature into a class. A transportation charge is set for the class.
Classification – A publication containing a list of articles and the classes to which they are assigned for the purpose of applying class rates, together with governing rules and regulations.
Classification Rating – A rate based on classification and distance.
Clearing House – An organization set up to process and collect bills for participating trucking companies.
Collect Shipment – A shipment where the payment of freight charges is made at the destination either by the buyer, their agent or the receiver.
Commercial zone – The area surrounding a city or town to which rates quoted for the city or town also apply; the ICC defines the area.
Commodity – Any article of commerce, commonly used to refer to raw materials and agricultural products.
Commodity Rate – A special rate on a specific type of goods. A commodity rate replaces a class rate for the goods, except when the tariff specifies the alternative use of class and commodity rates.
Common Carrier – A transportation business that offers service to the general public.
Compliance – The fact that products, services, processes, and/or documents meet with rules or standards.
Confirmation – With regards to EDI, a formal notice (by message or code) from a electronic mailbox system or EDI server indicating that a message sent to a trading partner has reached its intended mailbox or has been retrieved by the addressee.
Consignee – The party to whom goods are shipped and delivered; the receiver.
Consignment – A shipment that is handled by a common carrier.
Consignor – The party who originates a shipment of goods (shipper).
Consolidation – Combining two or more shipments in order to realize lower transportation rates. Inbound consolidation from vendors is called make-bulk consolidation; outbound consolidation to customers is called break-bulk consolidation.
Container – Anything in which articles are packed.
Container Yard – A location for parking trailers awaiting further movement.
Continuous Improvement (CI) – A structured, measurement-driven process that continually reviews and improves performance.
Continuous Service – An ongoing series of movements under a dedicated service agreement.
Contract – An agreement between two or more entities to perform specific acts. A purchase order, when accepted by a vendor, becomes a contract.
Council of Supply Chain Management Professionals (CSCMP) – A professional association dedicated to the advancement of the logistics and supply chain industries.
Critical Success Factors – Those activities and/or processes that are required of a company considered necessary to reach its goals.
Crossdock – Refers to the movement of goods through a terminal or warehouse facility while in transit.
Cubic Capacity – The carrying capacity of a piece of equipment according to measurement in cubic feet.
Cubic Foot – A common measure of capacity in length, breadth and height.
Customer – The businesses and people a company serves; shippers and receivers who purchase services.
Customer Relationship Management (CRM) – This refers to an information system that helps sales and marketing functions.
Data – Factual information used as a basis for analysis, discussion, or validation. Data is recorded on forms, both paper and digital, which then become records. Data from a set of records is compiled on a report for analysis.
Dead Head – A trip with an empty vehicle.
Delivery Appointment – The time agreed upon between two enterprises for goods or transportation equipment to arrive at a selected location.
Demurrage – The carrier charges and fees applied when rail freight cars and ships are retained beyond a specified loading or unloading time
Density – The weight of an article per cubic foot.
Destination – The place to which a shipment is to be delivered.
Detention – A penalty charge assessed by a carrier if they must wait beyond the specified loading and unloading times.
Dispatch – The scheduling and control of traffic during pickup, movement and delivery.
Distribution – The process of storing, shipping and transporting good. The activities associated with the movement of material, usually finished goods or service parts, from the manufacturer to the customer. These activities encompass the functions of transportation, warehousing, inventory control, material handling, order administration, site and location analysis, industrial packaging, data processing, and the communications network necessary for effective management. It includes all activities related to physical distribution, as well as the return of goods to the manufacturer.
Distribution Center (DC) – The warehouse facility which holds inventory from manufacturing pending distribution to the appropriate stores.
Diversion – A change made in the route of a shipment in transit.
Document – A form, such as an invoice or purchase order, that trading partners have agreed to exchange.
Documentation – The papers attached or pertaining to goods requiring transportation and/or transfer of ownership.
Driving Time Regulations – U.S. Department of Transportation rules that limit the maximum time a driver may drive in interstate commerce; the rules prescribe both daily and weekly maximums.
Duty – A tax levied by a government on the import, export and consumption of goods.
Electronic Data Interchange (EDI) – Electronic Data Interchange the transmission of documents electronically using standardized formatting.
Electronic Commerce (EC) – Also written as e-commerce. Conducting business electronically via traditional EDI technologies, or online via the Internet.
Embargo – An order prohibiting the acceptance and/or handling of freight at certain points or via certain routes due to emergencies, congestion, strikes, etc.
En Route – On the way.
ETD – The Estimated Time of Departure
Expediting – To accelerate a process. Expedited freight service is usually superior to normal service.
Extranet – A computer term describing a private network (or a secured link on the public Internet) that links separate organizations and uses the same software and protocols as the Internet. Used for improving supply chain management. For example, extranets are used to provide access to a supply chain partner's internal inventory data, which is not available to unrelated parties.
Federal Motor Carrier Safety Administration (FMCSA) – A federal organization whose primary mission is to reduce crashes, injuries and fatalities involving large trucks and buses.
Final Destination – The last stopping point for a shipment.
Fixed Costs – Carrier costs that do not vary with an increase or decrease in traffic. An accounting classification, sometimes called fixed operating costs.
Flat bed – A semi-trailer with no sides.
Flat Rate – An all-inclusive, set amount to be paid for a service, as opposed to itemized charges for service.
Flexibility – Ability to respond quickly and efficiently to changing customer and consumer demands.
Food Safety Modernization Act (FSMA) – The FSMA gives the Food and Drug Administration (FDA) new authorities to regulate the way foods are grown, harvested and processed. The law grants the FDA a number of new powers, including mandatory recall authority. It shifts the focus from responding to foodborne illness to preventing it.
Forecasting – Predicting how much of a product will be purchased by customers. Relies upon both quantitative and qualitative methods.
Foreign Trade Zone (FTZ) – An area or zone set aside at or near a port or airport under the control of the US Customs Service, for holding goods duty-free pending Customs clearance.
Free on Board (FOB) – Contractual terms between a buyer and a seller that define where the title transfer takes place.
Free Time – The period of time allowed for the removal or accumulation of cargo before charges become applicable.
Freight – Goods being transported.
Freight Bill – The carrier's invoice for payment of transport services rendered.
Freight Consolidation – The grouping of shipments to obtain reduced costs or improved utilization of the transportation function. Consolidation can occur by market area grouping, grouping according to scheduled deliveries, or using third party pooling services such as public warehouses and freight forwarders.
Freight Forwarder – An organization that provides logistics services as an intermediary between the shipper and the carrier. Freight forwarders provide the ability to respond quickly and efficiently to changing customer and consumer demands.
Freight Quote – An estimate covering the cost of transport between two specified locations.
Fronthaul – The first leg of the truck trip that involves hauling a load or several loads to targeted destinations.
Full Truckload (FTL) – A term used when good occupy the entire motor carrier.
Fuel Surcharge – An additional charge assessed for the excessive cost in diesel fuel. The surcharge is based upon the US National Average Diesel Fuel Index.
Goods – Merchandise
Gross Weight – The total weight of an article together with the weight of its container and the material used in packing. The weight of a truck together with the weight of its entire contents.
Gross Margin – The difference between total revenue and the cost-of-goods sold.
Handling – Movement of freight beyond normal loading or unloading, normally more of an issue at the receiving end. This could include breaking down pallets, moving freight from the shipper’s pallets to the receiver’s pallets or sorting and
Icing Charge – A charge made for icing perishable freight.
Import – To bring in goods from a foreign country.
In Bond – Goods on which a duty or tax is due are "in bond" when placed in the custody of government or bonded warehouse or are traveling by a bonded carrier. Bonding guarantees that the duty will be paid.
Inbound Freight – The collection, receiving, handing and storing of goods moving inwards from suppliers and vendors into production processes or storage facilities.
Information – The data, plus the interpretation necessary to understand it. Information is dynamic and changes with time and circumstances.
Information System (I/S) – Managing the flow of data in an organization in a systematic, structured way to assist in planning, implementing, and controlling.
Interchange – The exchange information between companies.
Interline – Two or more motor carriers working together to haul a shipment to a destination.
Intermediate Destination – A stopping point for a shipment prior to the final destination.
Internal Customer – The recipient of a good, service, or information from another department within an organization.
Interstate Commerce – The transportation of persons or property between states. In the course of the movement, the shipment crosses a state boundary.
Intrastate Commerce – The transportation of persons or property between points within a state. Traffic having origin, destination and entire transportation within the same state.
Inventory – Raw materials, work in process, finished goods, and supplies required for creation of a company's goods and services; Stored goods, or an itemized list of such goods.
Invoice – A detailed statement showing services rendered and stating prices and payment terms. The invoice is prepared by the seller and acts as the document that the buyer will use to make payment.
Joint Rate – A rate over a route that requires two or more carriers to transport the shipment.
Joint Route – Established by two or more connecting carriers for the continuous through movement of traffic over their lines.
Just-in-Time Logistics (or Quick Response) – The process of minimizing the times required to source, handle, produce, transport, and deliver products in order to meet customer requirements. Products are delivered only when they are needed to cut down on required storage space.
Key Performance Indicator (KPI) – A quantifiable measure used to evaluate the success of an organization, employee, etc. in meeting objectives for performance.
Knock down – A term denoting that an article is partially or entirely taken apart.
Lading – The freight or cargo carried in a transportation vehicle.
Landed Price – A supplier's price that includes all his costs related to the sale.
Landed Cost – Cost of product plus relevant logistics costs, such as transportation, warehousing, handling, etc. Also called Total Landed Cost of Net Landed Costs.
Lane – The commercial route between the origin and the destination of your shipment.
Lead Logistics Provider (LLP) – An organization that organizes other third party logistics partners for outsourcing of logistics functions.
Lead Time – The total time that elapses between an order's placement and its receipt. It includes the time required for order transmittal, order processing, order preparation, and transit.
Leg – All consecutive segments of a route booked through the same carrier.
Legal weight – The weight of the goods and interior packing but not the container.
Less-Than-Truckload (LTL) Carriers – Trucking companies that consolidate and transport smaller (less than truckload) shipments of freight utilizing a network of terminals and relay points.
Letter of Credit (LOC) – A form letter issued by a bank indicating that a purchaser has established credit in a specified amount in the seller's favor and that payment will be made upon presentation of draft together with certain specified documents.
Liftgate – A mechanical platform on the back of a vehicle that can be raised during loading and unloading of heavy cargo. This is used when the shipper or consignee do not have a loading dock on site to load or unload the freight.
Line-Haul Shipment – A shipment that moves between cities and over distances more than 100 to 150 miles in length. Line haul generally does not include pickup and delivery service.
Link – The transportation method a company uses to connect nodes (plants, warehouses) in a logistics system.
Load – Refers to a truckload and/or any number of shipments that are combined to move on a single truck between set points, over a certain route, to meet a specified timetable.
Local Cartage Carrier – A company that transports property entirely within the commercial zone of a municipality (or contiguous cities). This may be pickup and delivery service for a line haul carrier.
Local Rate – A rate published between two points served by one carrier.
Logbook – A daily record of the hours an interstate driver spends driving, off duty, sleeping, or on duty but not driving. They are required by Interstate Commerce Commission regulations.
Logistics – The process of planning, implementing, and controlling procedures for the efficient and effective storage of goods, services, and related information from the point of origin to the point of consumption for the purpose of conforming to customer requirements. This definition includes inbound, outbound, internal, and external movements.
Logistics Costs – The factors associated with the acquisition, storage, movement, and disposition of goods.
Logistics Data Interchange (LDI) – A computerized system that electronically transmits logistics information.
Logistics Outsourcing – The sub-contracting to an external organization of logistics planning and execution.
LTL – Less-than-truckload
LTL shipment – A less-than-truckload shipment, one weighing less than the minimum weight a company needs to use the lower truckload rate.
Lumping – When a driver assists with loading and unloading the trailer contents.
Manifest – A document describing a shipment or the contents of a vehicle or shipment.
Market Segment – A group of potential customers sharing some measurable characteristics based on demographics, psychographics, lifestyle, geography, benefits, etc.
Marks and Numbers – Letters, numbers and characters placed on goods used to identify a shipment or parts of a shipment.
Materials Management – The movement and management of materials and products from procurement through production.
Message – Typically, a message is an electronic version of a document associated with a common business transaction, such as a purchase order or shipping notice.
Mileage Rate – A rate based upon the number of miles the commodity is shipped.
Minimum Weight – The shipment weight the carrier's tariff specifies as the minimum weight required to use the truckload rate; the rate discount volume.
Mixed Loads – The movement of both regulated and exempt commodities in the same vehicle at the same time.
Mode – A term used to refer to the basic divisions of the transportation industry. The principal modes of transportation are truck, rail, air and water.
Motor carrier – A private company that provides the transportation of goods by means of a commercial motor vehicle.
National Motor Freight Transportation Association – The organization that puts together the NMFC (National Motor Freight Classification) guidelines.
National Motor Freight Classification – The guidelines that determine the freight class of your shipment.
National Carrier – A for-hire certificated carrier that usually operates between major population centers and areas of lesser population.
Nonconformity – Anything that does not meet specifications or requirements.
Nested – A term used in less than truckload (LTL freight) shipping in which materials are stacked so that one item goes inside another. Nested freight reduces the amount of space taken up by the combined freight and makes LTL shipping more efficient as a result.
Net Weight – The weight of the merchandise, unpacked, exclusive of any containers.
NMFC number – Different from freight class, this is a very specific number that corresponds to a commodity and how it is packaged. This number is used to determine freight class.
On-Demand – Pertaining to work performed when demand is present. Typically used to describe products that are manufactured or assembled only when a customer order is placed.
Operating Ratio – The relationship of total expenses to total operating revenue.
Optimization – The process of making something as good or as effective as possible with given resources and constraints.
Order Management – The planning, directing, monitoring, and controlling of the processes related to customer orders, manufacturing orders, and purchase orders.
Origin – The place where a shipment begins its movement.
Outbound Logistics – The process related to the movement and storage of products from the end of the production line to the end user.
Out-of-Pocket Cost – The cost directly assignable to a particular unit of traffic and which a company would not have incurred if it had not performed the movement
Outsource – To utilize a third party provider to perform services previously performed in house.
Over, Short, and damaged (OS&D) – This is typically a report issued at the warehouse when goods are damaged. Used to file a claim with a carrier.
Over-the-Road – A motor carrier operation that reflects long-distance moves; the opposite of local operations.
Packing List – A document containing information about the location of each Product ID in each package. It allows the recipient to quickly find the item he or she is looking for without a broad search of all packages. It also confirms the actual shipment of goods on a line item basis.
Pallet – The platform which cartons are stacked on and then used for shipment or movement as a group. Pallets may be made of wood or composite materials.
Permit – Authority granted by Interstate Commerce Commission to allow motor carriers to operate in interstate commerce.
Physical Distribution – The movement and storage of finished goods from manufacturing plants to warehouses to customers; used synonymously with business logistics.
PO – Purchase Order
POD – Proof of Delivery
Pooling – A term for the practice of combining shipments from multiple shippers into a truckload in order to reduce shipping charges.
Portal – A web site that serves as a starting point to other destinations or activities on the Internet. Initially thought of as a home base-type of web page, portals attempt to provide all Internet needs in one location.
Prepaid – A freight term that charges are to be paid in advance. Prepaid shipping charges may be added to the customer invoice, or the cost may be bundled into the pricing for the product.
Prepaid shipment – A shipment where the payment of freight charges is made at the point of origin either by the shipper, seller or their agent.
Process – A series of time-based activities linked to complete a specific output.
A process is a functional component of a given business system. For example, the Customer Service Process, a part of the Marketing System, is separate and distinct from Sales.
Product ID – A method of identifying a product without using a full description (also known as SKU, Item Code or Number, or other such name).
Product Protection – A set of safeguards to ensure cargo maintains the proper temperature.
Pro Number – Any progressive or serialized number applied for identification of freight bills, bills of lading, etc.
Process Improvement – A design or activity that improves quality or reduces costs, often through the elimination of waste on non-value-added tasks.
Procurement – The process of selecting vendors, establishing payment terms, strategic vetting, the negotiation of contracts and the actual purchasing of goods and services that are vital to an organization.
Procurement lead time – The time required by the buyer to select a supplier and to place and obtain a commitment for specific quantities of material at specified times.
Proof of Delivery (POD) – Information supplied by the carrier containing the name of the person who signed for the shipment, the time and date of delivery and other shipment delivery-related information. POD is also sometimes used to refer to the process of printing materials just prior to shipment (Print on Demand).
Proportional Rate – A rate lower than the regular rate for shipments that have prior or subsequent moves; used to overcome combination rates' competitive disadvantages.
Purchase Order (PO) – The purchaser's authorization used to formalize a purchase transaction with a supplier. The physical form or electronic transaction a buyer uses when placing an order for merchandise.
Quality – The standard of something as measured against other things of a similar kind; the degree of excellence of something.
Quality Control – A procedure or set of procedures intended to ensure that a product or service meets a defined set of criteria or meets the requirements of the customer.
Quick Response (QR) – A strategy for reducing inventory and shortening cycle time for production, distribution and sale. Systems that attempt to provide quick turnaround evaluate changes in customer requirements based on usage and point of sale data.
Rate – The charge for transporting freight.
Real Time – The processing of data in a business application as it happens, as contrasted with storing data for input at a later time.
Reefer – A refrigerated or temperature-controlled trailer.
Refrigerated Carriers – Carriers designed to keep perishables good refrigerated.
Request for Information (RFI) – A document used to solicit information about vendors, products, and services prior to a formal RFQ/RFP process.
Request for Proposal (RFP) – An invitation to suppliers to bid on supplying products or services. For example, a computer manufacturer may use an RFP to solicit proposals from suppliers of third party logistics services.
Requirement – Something essential to the existence or occurrence of something else. Supplier requirements include specifications of goods, service details, and timing of delivery.
Resources – A source of supply or support or an available means, used in the performance of activities. They include people, materials, supplies, equipment, technologies, and facilities.
Retailer – A business that sells goods to consumers rather than for resale. Examples include Wal-Mart, Best Buy, and Kroger but also include the many smaller independent stores.
Reverse Engineering – A process whereby products are disassembled and analyzed for evidence of the use of better processes, components, and techniques.
Reverse Logistics – A specialized segment of logistics focusing on the movement and management of products and resources after the sale and after delivery to the customer. Includes product returns for repair and/or credit.
Root Cause Analysis – Analytical methods to determine the core problem(s) of an organization, process, products, market, etc.
Route – A route is a shipping lane. They are representative of typical inbound and outbound movements, to and from terminals.
Routing or Routing Guide – The process of determining how a shipment will move between origin and destination. Routing information includes designation of carrier(s) involved, actual route of carrier, and estimated time en route.
Routing Accuracy – When specified activities conform to administrative specifications, and specified resource consumptions (both man and machine) are detailed according to administrative specifications and are within 10% of actual requirement.
Scalability – How quickly and efficiently a company can ramp up to meet demand. How well a solution to a problem will work when the size of the problem increases.
Seasonality – A repetitive pattern of demand from year to year (or other repeating time interval), with some periods considerably higher than others.
Service Level – A measure of performance of a system. Certain goals are defined and service level gives the percentage to which those goals should be achieved.
Shipper – The party that tenders goods for transportation.
Shipper-Carriers – Shipper-carriers (also called private carriers) are companies with goods to be shipped that own or manage their own vehicle fleets. Many large retailers, particularly groceries and "big box" stores, are shipper-carriers.
Shipping – The function that performs the tasks for the outgoing shipment of parts, components, and products. It includes packaging, marking, weighing, and loading for shipment.
Shipping Manifest – A document that lists the pieces in a shipment. Manifests usually list the items, piece count, total weight, and the destination name and address for each destination in the load.
Short Shipment – Piece of freight missing from shipment as stipulated by documents on hand.
Split Delivery – A service in which a larger quantity is ordered to secure a lower price, but delivery is divided into smaller quantities and is spread out over several locations.
Spot Demand – Demand with a short lead-time that's difficult to estimate. Usually supply for this demand is provided at a premium price. An example of spot demand would be when there's a spiked demand for building materials as a result of a hurricane.
Staging – Refers to the process of pulling goods from inventory or storing goods before shipping. The designated area is known as the ‘staging area.’
Store Door Delivery – Movement of goods to an outside, ground floor entryway to a consignee's place of business.
Supplier – A provider of goods or services. A seller with whom the buyer does business, as opposed to vendor, which is a generic term referring to all sellers in the marketplace.
Supply Chain – A network of facilities and transportation links that perform the functions of procurement of raw materials, transforming materials from suppliers into intermediate and finished products by an organization and distribution of these finished products to the user or customer. All vendors, service providers, and customers are links in the supply chain.
Supply Chain Management (SCM) – Supply chain management encompasses the planning and management of all activities involved in sourcing and procurement, conversion, and all logistics management activities. This includes the synchronization and movement of materials, information, funds, and resources within and among organizations.
Synchronization – The concept that all supply chain functions are integrated and interact in real time; when changes are made to one area, the effect is automatically reflected throughout the supply chain.
Tactical Planning – Specific, key steps and actions to achieve departmental initiatives, process and procedural results
Tare Weight – The weight of material obtained by deducting the weight of the empty container from the gross weight of the full container.
Tariff – A tax assessed by a government on goods entering or leaving a country. The term is also used in transportation in reference to the fees and rules applied by a carrier for its services.
Temperature-controlled – A trailer capable of maintaining a specific temperature range as to not damage a product.
Tender – The document that describes a business transaction to be performed.
Third Party Logistics – Outsourcing all or much of a company's logistics operations to a specialized company.
Third Party Logistics Provider (3PL) – A business that provides multiple logistics services for use by customers. Preferably, these services are integrated or bundled together, by the provider. These firms facilitate the movement of parts and materials from suppliers to manufacturers, and finished products from manufacturers, and finished products from manufacturers to distributors and retailers. Third-party logistics providers typically specialize in integrated operations that can be scaled and customized to customers’ needs to meet the demands and delivery service requirements of their products.
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.
Through rate – A rate applicable for transportation all the way from point of origin to destination. A through rate may be either a joint rate or a combination of two or more rates.
TL – Truckload
Total Supply Chain Management Cost – Total cost to manage order processing, acquire materials, manage inventory, and manage supply chain finance, planning, and IT costs as represented as a percent of revenue.
Tracing – To check the movement of a shipment. A tracer is a request upon a transportation company to trace a shipment for the purpose of expediting its movement or establishing delivery .
Traceability – The attribute allowing the ongoing location of a shipment to be determined.
Tracking and Tracing – Monitoring and recording shipment movements from origin to destination.
Tractor – The tractor is the driver compartment and engine of the truck. It has two or three axles.
Traffic – A department or function charged with the responsibility of arranging the most economic classification and method of shipment for both incoming and outgoing materials and products.
Traffic Management – The management and controlling of transportation modes, carriers, and services.
Trailer – The part of the truck that carries the goods. The container on a chassis pulled by a motor vehicle to transport freight.
Transit Time – The total time that elapses between a shipment's pickup and delivery.
Transparency – The ability to gain access to information without regard to the system's landscape or architecture. An example would be where an online customer could access a vendor's web site to place an order and receive availability information supplied by a third party outsource manufacturer or shipment information from a third party logistics provider.
Transportation Management System – A computer system designed to provide optimized transportation management in various modes along with associated activities.
Truckload Carriers (TL) – Trucking companies that move full truckloads of freight directly from the point of origin to destination.
Uniform Product Code (UPC) – A standard product numbering and bar coding system used by the retail industry. UPC codes are administered by the Uniform Code Council. They identify the manufacturer as well as the item, and are included on virtually all retail packaging.
Unit Cost – The cost associated with a single unit of product. Unit cost measurement must be used with caution, as it may not always be practical or relevant in all aspects of cost management.
Unplanned Order – Orders that are received that do not fit into the volumes prescribed by the plans developed from forecasts.
Valuation Charges – Actual value of goods required to be shown on bill of lading by shipper, when rate to be applied is dependent on that fact.
Value Chain – A series of activities, when combined, define a business process; the series of activities from manufacturers to the retail stores that define the industry supply chain.
Visibility – The ability to access or view pertinent data or information as it relates to logistics and the supply chain, regardless of the point in the chain where the data exists.
Volume LTL – A larger LTL shipment that takes up part of a trailer, but not all of it.
Warehouse – A storage place for products. Principal warehouse activities include receipt of product, storage, shipment, and order picking.
Warehousing: The storage or holding of goods.
Warehouse Management System (WMS – The systems used in effectively managing warehouse business processes and direct warehouse activities, including receiving, putaway, picking, shipping, and inventory cycle counts.
Weight Break – The shipment volume at which the LTL charges equal the TL charges at the minimum weight.
Zone – An area or district extending around a certain point defined for transport and or pricing purposes.
Zone Price – The constant price of a product at all geographic locations within a zone.