Glossary Of Terms

Efficient, Fast and Affordable Global Fulfillment Solutions for Your E-commerce Store.
Give us a try to make your e-commerce supply chain management seamless, swift and efficient!

Understanding the different elements of the supply chain can seem difficult. This glossary of common terms used in our industry will help you get started.

# · A · B · C · D · E · F · G · H · I · K · L · M · N · O · P · R · S · T · U · V · W

#

3PL: Third-Party Logistics. A 3PL is an outsourced logistics provider, which handles aspects of shipping ranging from warehousing and fulfillment to freight bills and transportation.

 

A

Active Stock: Active stocks refer to stocks that have been traded the most on an exchange by actively buying and selling in large numbers.

ATA: Actual Time of Arrival. The time when vessel/ship/plane is determined to arrive at its destination.

ATD: Actual time of departure. The exact time a shipment is dispatched from a point of origin.

Advanced Shipping Notice (ASN): A pending Delivery document that include shipment information about the products, quantities, and nature the of shipment.

Application Programming Interface (API): A software intermediary that enables two applications or more to interact with each other.

B

Bale: A large Compressed bound which often used to warp goods such as hay, paper, wool, or cotton.

Bar Code: An identifier consisting of a series of printed parallel bars representing values.

Break-Bulk: When the goods are transported by container ship, it is called break bulk shipping.

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

Base Currency: A.k.a the transaction currency which is assigned the value of 1 when calculating exchange rates.

Bill of Lading (BOL): A document that provides all the details needed to process the freight shipment.

Back Order: A request to a supplier or wholesaler for an additional stock of a sold-out item to satisfy an outstanding customer order.

C

Customer Returns: Items that were once sold from the store (or website) and are then returned by the customer in varying conditions.

Customs: The authorities or the official department that collects duties levied by a country on imports and exports of goods.

Customs Clearance: The act of getting permission for taking or importing goods/merchandise from another country into the importing nation.

Customer integration: The component of customer relationship management which puts technology in place that allows customers to process their own transactions and to have direct contact with the organization.

Cross Docking: Involves supplying products from a manufacturing plant straight to customers with little or no material handling in between. A facility that operates without storage in supply chains.

Cargo: Merchandise being carried by a means of transportation.

Channel: A method that a business distributes its products, such as a retail or distribution channel, call center, or a web-based electronic storefront.

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

Commercial zone: Any part of a city or town which contains land that is used for commercial activities( building central business, shopping centers, etc..)

Consolidation: Combines two or more shipments to have lower transportation rates.

Carrier: A company or a person who legally transports goods by land, water or air, and they usually work with shippers to ship goods from one place to another.

Carrier Liability: A carrier that is responsible for all shipment loss, damage, and delay that comes with exceptions ( e.g: Act of Public Authority, Act of Shipper, and the Goods’ Inherent Nature)

Commodity Code: A code that describes a commodity (product/raw material) or a group of commodities that deals with standard classifications of goods. It could be carrier tariff or regulating in nature. 

Chargeable Weight: Used by airlines to determine the cost of shipment. It may be either volumetric weight or grass weight.

Countertrade: International trade by exchange of goods rather than by currency purchase.

Consignee: A party or person to whom goods or merchandises are being shipped and delivered.

Cubage: Cubic volume or capacity of scape that is being used or available for shipping or storage.

Cumulative Lead Time: The total time required to source components, build, and ship a product.

Currency Adjustment Factor (CAF): A surcharge imposed by a carrier on ocean freight charges to offset foreign currency fluctuations.

CWT: An abbreviation for Hundredweight, which is equivalent to 100 pounds.

D

Dashboard: A tool board to capture a summary of key performance, could also be a monitoring system for eCommerce fulfillment business.

Data synchronization: A data transfer process between a handled device and a desktop computer.

DDP: Delivered Duty Paid are fees/taxes/duties that are paid by The shipper of the order.

DDU: Delivered Duty Unpaid are taxes or duty charges that have to be paid for by the recipient of the shipment on delivery. 

Destination: The designated location as a receipt point for goods/shipment.

Delivery Order: A Delivery Order is a document from a shipper or an owner of a freight carrier that orders the release of the transportation of cargo to another party.

Demand Chain Management: The same as supply chain management, but with an emphasis on consumer pull versus supplier push. 

Demurrage: Charges are applied when rail freight cars and ships are retained beyond a specified loading or unloading time.

Deregulation: Revisions or complete elimination of economic regulations controlling transportation.

Dispatch: To send off a shipment to a certain destination.

Destock: Reduce the quantity of stock held.

Differential: A discount offered by a carrier that faces a service time disadvantage over a route.

Direct Cost: A price directly associated with the production of services or goods.

Distributed Inventory: The splitting of goods across different fulfillment centers that is geographically dispersed. 

Dock receipt: A document used to accept materials or equipment. It is also a proof of delivery that ocean carrier carries.

Dunnage: A packing material used to protect a product from damage during transport.

Duty Free zone: An area where goods or cargo can be stored without paying import customs duties while awaiting future transport.

Drop shipping: To sell brand name on your website (e.g: is to have one supplier ship directly to the buyer’s customer.)

E

Emergency Stock: A particular quantity of product to be stocked and used in an emergency. For example: an unplanned catastrophic event.

End Item: A completed item or product sold.

Expediting: Moving shipments through regular channels at an accelerated rate.

Expiration Date: The last date that a product, as food, medicine, or beauty products that should be used before it is considered spoiled or ineffective, usually specified on the label or package.

Export: To send goods and services to another country.

Export Borker: An agent who acts as an intermediary between buyer and seller for a fee.

F

Fulfillment: Refers to the process of preparing and delivering a customer’s order.

First in First out (FIFO): A method of inventory accounting in which the cost of the first units to enter are the first units sold.

Finished Goods Inventory ( FG or FGI): Products completely manufactured, packaged, stored, and ready for distribution.

Facilities: The physical plant, distribution centers, service centers, and related equipment.

FEU: Forty-foot equivalent unit, a standard size intermodal container.

Fixed costs: A fixed cost that does not change with an increase or decrease in the number of goods or services produced or sold.

Fixed order quantity: The inventory control system, wherein the maximum and minimum inventory levels are fixed(1). Or inventory management that cause planned or a actual orders to be generated for pre-determined fixed quantity. (2)

Freight: Goods being transported from one place to another.

Fulfillment Services Provider: Third-party company that provides order fulfillment services on behalf of another party ( e.g: online sellers).

Flow Rack: A storage method where product is presented to picking operations at one end of a rack and replenished from the opposite end.

Forecast: An estimation of future demand for products using quantitative or qualitative methods.

Foreign Trade Zone (FTZ): An area that is close to a port airport under control of a local customs service, for holding goods duty-free pending customs clearance.

Forward picking: A storage area designed for picking where inventory replenished from reserve storage.

Fourth Party Logistics (4PL): Differs from 3PL from organization is more about long-term partnerships where quality of the service will play a primary role, and which involves shared risks and benefits.

Full Truckload (FTL): Full truckload or Full Container Load is a type of shipping mode whereby a truck carries one dedicated shipment.

G

General Agreement on Tariffs and Trade (GATT):A legal agreement between many countries, aimed at expanding international trade and eliminating trade barriers.

General-Merchandise Warehouse: A warehouse that is used to store goods that are readily handled, are packaged, and do not require a controlled environment.

General Order (GO): A customs term referring to a warehouse where merchandise not entered within five working days after the carrier’s arrival is stored at the risk and expense of the importer. 

GTIN: Global Trade Item Number: All-numeric system for assigning globally unique codes to trade items (products and services).

Goods: A merchandise or materials which are used to satisfy demands.

Gross Margin: The difference between total revenue and the cost-of-goods sold.

Gross Weight: The total weight of the vehicle and the payload of freight or passengers.

H

Hazardous Material: Substance or material could be capable of posing a risk to health, safety, and property when stored or transported in commerce.

Holding cost: Cost of holding a unit of an item in stock for a unit time.

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

Hundredweight: A pricing unit used in transportation (equal to 100 pounds).

Hub: A large retailer or manufacturer having many trading partners.

I

Import: The movement of products from one country into another.

In bound: Goods are held or transported in-bound under customs control, import duties or charges are paid.

Inbound logistics: The material management that starts from suppliers and vendors into production process to storage facilities.

Incentive rate: A rate that convinces the shipper to ship heavier volumes per shipment.

Insurance certificate: A document issued to the consignee to certify that insurance is provided to cover loss of or damage to the cargo while in transit.

Integrated logistics: A comprehensive view of the entire supply chain as a single process from raw material to finished goods distribution.

Inventory: A place where you store your products.

Item coding: An arrangement for giving every package of material moved an identifying tag, that contains bar code. 

J

Joint Cost: A common cost in cases where a company produces products in fixed proportions.

Joint rate: A rate over a route that requires two or more carries to transport the shipment.

Just-in-Time Logistics: The process of minimizing the times required to source, handle, produce, transport, and deliver products in order to meet customer requirements.

K

Kitting: A Light assembly of components or parts to defined units.

L

Logistics: Where implementing and controlling procedures for efficient and effective storage of goods and services. It includes inbound, outbound, internal and external movement.

Logistic Channel: The network of supply chain participants engaged in storage, handling transfer, transportation and communications functions.

Lot: A production run or batch that can be isolated from other runs and identified with specific set of material, production facility and process characteristics.

Logistics Data Interchange (LDI) : An automatic system that electronically transmits logistics information.

Locator system: Inventory tracking system enables you to assign locations to your inventory, facilitating the ability to store your goods. Everything is stored in number sequence, by vendor, by product …

Last Mile: The description of the last process delivery, where carrier, courier (delivery agent) is responsible for the final handover to the customer.

Landed Cost: Cost of a product that includes the logistics costs ( transportation, warehousing, handling costs, etc..)

M

Management information system (MIS) : A system that controls the flow of information throughout an organization to make sure everyone has to work properly.

Multi-sales channel: The practice of selling merchandise on more than one sales channel.

Minimum Weight: The shipment weight the carrier’s tariff mentions is the minimum weight required to use.

Multi-Currency: The ability to process an order using a variety of currencies for pricing and billing.

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

Marks and Numbers: Marks and numbers are placed on goods used to identify a shipment or parts of a shipment.

Maximum Order Quantity: An order quantity modifier applied after the lot size has been calculated that limits the order quantity.

Merge in Transit: The process of ” merging” shipments from suppliers and going to the buyer or the store, bypassing the seller.

N

Net Weight: The weight of the merchandise, unpacked, exclusive of any containers.

Non-stock inventory : Inventory that is not tracked within your inventory system. It does not have an item-master record or internal SKU number (stock keeping unit number).

Node: A fixed point in a firm’s logistics system where goods come to rest ( includes plants, warehouses, supply sources, and markets.)

O

Order: A request to ship, receive or transport material as indicated in a customer order, purchase order, or shop order.

Order Tracking: An online tool that gives the buyer information about the product and the status of the purchased item. this system aims to show transparency of the distribution process.

Order Fulfillment: Defined as the steps or process of receiving goods, then processing and delivering orders to customers.

Order Management : The process of taking orders and making sure that your customer receives them on time and in good order.

Optimization: The process of making the best or most effective use of something or situation. It would be a value that you would like to optimize the aim is to look for the best practical solution.

Outsourcing: Utilize a third-party provider to perform services performed in house. (manufacturing of products and call center/ customer support included)

Outbound Logistics: A process that is associated with the movement and storage of products from end-line production to end-user.

On-Demand: Work performed when demand is present. It is used to describe products that are manufactured or assembled parts through a process in batches of one.

Omni-Channel: The way a customer interacts with a retailer across multiple channels (such as stores or web)

P

Product catalog: A type of marketing collateral that lists essential product details to help the buyers make a purchase decision.

Parcel insurance :A third party shipping insurance provider covering packages in the event that they lost or damaged while in transit.

Parcel Shipment: Parcel include small packages like those handled by providers such as UPS and FedEx.

Peak Demand: The time period during which customers demand the greatest quantity.

Pick/Pack: Picking and packing immediately into shipment containers. 

Product ID:A method of identifying a product without using full description. it contains item Code or number, the SKU.

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.

Port: A harbor where ships will anchor.

Purchase order: A document that is created by a buyer indicating the items they wish to purchase from a seller.

Prepaid Freight: Freight paid by the shipper to the carrier when merchandise is tendered for shipment that is not refundable if the merchandise does not arrive at the intended destination.

Q

Quality Control: A process through which a company strives to ensure that product quality is maintained or improved.

Queue time: The amount of time inventory is staged before processing.

R

Re-stocking: An act of replenishing stock. The act of restocking the shelves once all the products are sold.

Receiving dock: Distribution area where the physical receipt of the purchased material from the carrier occurs.

Returns: A customer returning goods to the manufacturer. Goods may have performance problems or simply because the customer did not like the product.

Reserve Storage: An area intended for storage of material full pallet load sizes from which both forward picking.

Re-Order Point ( ROP): The minimum unit quantity that a business should have in available inventory before they need to reorder more product.

Reverse Logistics: A specialized segment of logistics focusing on the movement and management of products and resources after the sale and delivery to the customer.

Return Merchandise Authorization (RMA): A numbered authorizations provided to allow your receive a refund, replacement, or repair during the product’s warranty period.

S

Sales Support: A system was developed to assist the sales force in improving productivity through continuous communication.

Supply Chain: A network between a company and its suppliers to produce and distribute a specific product to the final buyer.

Shipping: The transport of goods by sea, air or some other means from one location to another location.

Safety Stock: Also called “emergency stock”. A level of additional stock that is preserved to prevent risk of stock outs.

SCOR: A Supply chain reference model built around six major processes. SCOR aims to provide a standardized method of measuring supply chain performance.

Serial Number: A unique number for identification to a single piece that will never be repeated for similar pieces. It is used too to support traceability and warranty programs.

SSCC (Serial Shipping Container Code): A global serial number for identifying a movable unit (e.g: pallet)

Split-case picking: Variation of case picking where the inner pack of items from cartons is retrieved.

Stock: All the goods or merchandise are stored in a warehouse and available for sale.

Stock-Keeping Unit (SKU): A scannable bar code, most often seen printed on product labels. It is used to identify and track the inventory or stock.

Slotting: The categorization and organization of different products within a warehouse facility.

Stock out (out of stock): A situation in which an item is out of stock.

Shortage: The inability of fulfilling customer needs due to material shortages, stop production, or delivery delays from suppliers.

T

Tracking shipment :The process of localizing shipping containers or parcel post at anytime during production, storing, and delivering to ascertain their provenance and to foreknow and aid delivery.

Tariff: A tax assessed by a government on goods entering or leaving a country.

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

Tariff code: A product-specific code as a document in a Harmonized System maintained by the (World Customs Organization). The more digits in a tariff code string, the more specific the product it identifies.

Third Party Logistics: The outsourcing of all company’s logistics operations to a specialized agency.

Transaction: A single completed transmission ( e.g: transmission of an invoice over an EDI network where a range of updates, documents are interpreted)

Total Cost analysis: A decision-making approach that considers minimization of total costs of variables system as transportation, warehousing, inventory, and customer service.

Throughput: The amount of products a company can produce and deliver to a client within a set of a frame time.

U

Unit Cost: The total cost of producing an item or a service divided by the total number of units.

Unit load: A single unit of an item or multiple units being moved at a time, instead of moving each item separately.

Upsell: The practice of attempting to sell a higher-value product to the customer.

Uniform Product Code (UPC): Also known as the Universal Product Code. Usually, the code is displayed on a Package to help identify the product. The code includes a barcode with a 12 digit-number right under it.

V

Value Added: The increased or improved value/ worth of the products or services.

Value Added: The increased or improved value/ worth of the products or services.

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

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

Visibility: The ability to access data or information related to logistics and supply chain.

Vertical integration: When a firm decides to produce multiple value-adding stages, from raw material to the sale product to the ultimate consumer.

W

Warehouse: Place where you store products which include receipt of the product, storage, shipment, and order picking.

Warehouse Management System (WMS): Used system for managing warehouse business processes (including receiving, put away, picking, shipping, and inventory cycle counts..)

Warranty Costs: Includes materials, labor, and problem diagnosis for products returned for repair or refurbishment.

Web Portal: It serves as the single point of access for information. it helps in search navigation, personalization, notification. but it requires one to register into a network to have access to information.

Weight Confirmation: The practice of confirming or validating receipts or shipments based on the weight.

Waybill: A document containing goods description that shows the origin, destination, consignee/consignor, and the amount charged. it’s used by the carrier for internal record and control during transit.

Z

Zone-batch picking: A combination of zone and batch picking, where multiple pickers pick portions of multiple orders.

Zone Price: The price of a product at all geographic locations within a zone.

References :

https://www.datexcorp.com/wp-content/uploads/PDF-Datex-Warehouse-DictionaryV1.1.pdf

 

Reach Us

[contact-form-7 id=”5″ title=”Contact form”]