Logistics related terms

 

A B C D E F G H I J K L M N O P Q R S T U V W Y Z

 

AAR
abbreviation for Against All Risks (insurance clause).
(source: www.atlantic-pacific.us)
abandon
A proceeding wherein a shipper/consignee seeks authority to abandon all or parts of their cargo.
(source: www.atlantic-pacific.us)
A-channel
Primary distribution channel through which only first quality goods are sold.
(source: www.businessdictionary.com)
act of God
An act beyond human control, such as lightning, flood or earthquake.
(source: www.atlantic-pacific.us)
Ad Valorem
A term from Latin meaning, “according to value”.
(source: www.atlantic-pacific.us)
advice of shipment
A notice sent to a local or foreign buyer advising that shipment has gone forward and containing details of packing, routing, etc. A copy of the invoice is often enclosed and, if desired, a copy of the bill of lading.
(source: www.atlantic-pacific.us)
advising bank
A bank operating in the seller’s country, that handles letters of credit in behalf of a foreign bank.
(source: www.atlantic-pacific.us)
affiliated chains
Non-competing, independent retail stores that pool their purchases as a single entity to avail of volume discounts.
(source: www.businessdictionary.com)
affreightment
Contract of an agreement by an ocean carrier to provide cargo space on a vessel at a specified time and for a specified price to accommodate an exporter or importer.
(source: www.atlantic-pacific.us)
afloat
Commodities or goods that are on the transporting vessel at a point between the port of origin and the port of destination and, therefore, command prices that are between their spot prices at destination and spot prices at the origin.
(source: www.businessdictionary.com)
after-marketing
Steps which a firm takes after a sale is completed, to retain loyalty of the customer for repeat sales.
(source: www.businessdictionary.com)
aftermarket
Secondary market that supplies accessories, spare parts, second-hand equipment, and other goods and services used in repair and maintenance. Some aftermarkets, such as those for automobile add-ons, parts, tires, wheels, are very large. Also called replacement market or secondary market.
(source: www.businessdictionary.com)
air mile
Alternative term for standard nautical mile (6,080 feet or 1,852 meters).
(source: www.businessdictionary.com)
air portable
Cargo (such as equipment or machinery) that can be transported in an aircraft with only minor disassembly and reassembly.
(source: www.businessdictionary.com)
airport access fee
Charges levied by an airport’s management on a car rental company for the privilege of using airport grounds, passed on by the company to its customers under one name or the other. See also airport tax.
(source: www.businessdictionary.com)
airport tax
Charge levied by an airport’s management on the passengers passing through the airport, and often included in the price of the airline ticket.
(source: www.businessdictionary.com)
airport to airport
Freight that only covers transportation of a cargo from one airport to another, and does not include any pickup or delivery service.
(source: www.businessdictionary.com)
assembly line
A manufacturing tool, first made popular by Henry Ford in his manufacturing of automobiles. The principle of an assembly line is that each worker is assigned one very specific task, which he or she simply repeats, and then the process moves to the next worker who does his or her task, until the task is completed and the product is made. It is a way to mass produce goods quickly and efficiently. All workers do not have to be human; robotic workers can make up an assembly line as well.
(source: www.businessdictionary.com)
autoship
Method employed generally in network marketing, it is a regular shipment of a product on the basis of a standing order supported by some form of automatic payment (with a credit card, for example). It is through autoship that a network marketing representative can ensure his or her commission level by meeting qualifying sales criteria during each qualifying period (usually a quarter).
(source: www.businessdictionary.com)

 

B channel
Distribution channel through which usually second quality goods are sold, but may also include first-quality goods that had been returned.
(source: www.businessdictionary.com)
bill of lading
A document issued by a carrier for the receipt of goods for shipment, and which describes the terms of shipment. Acronym: BL, B/L
(source: www.logisticsworld.com)
business logistics
Coordination of projected requirement, procurement, physical movement, and storage of components, parts, raw materials, and semi-finished and finished goods, to achieve optimum demand-service level at minimal cost. It includes both inbound and outbound movements, and is a larger concept than distribution management which does not include activities such as forecasting and procurement.
(source: www.businessdictionary.com)
business-to-business (B2B)
Trading between firms (and not between businesses and consumers), characterized by (1) relatively large volumes, (2) competitive and stable prices, (3) fast delivery times and, often, (4) on deferred payment basis. In general, wholesaling is B2B and retailing is B2C.
(source: www.businessdictionary.com)
business-to-consumer (B2C)
Selling individual products to individual buyers, usually on cash payment basis; retailing.
(source: www.businessdictionary.com)
buying distribution
Paying the distribution channel members (such as wholesalers) for not handling the competitors’ products, in addition to compensating them for their marketing efforts. This practice is more common where goods from several producers or suppliers are non-differentiated, and can be easily substituted for one another.
(source: www.businessdictionary.com)

 

Capability Maturity Model Integration (CMMI)
A process improvement technique for evaluating how efficiently a company is able to deliver technology products to its customers. Capability Maturity Model Integration is often associated with software development, and seeks to integrate the various steps in the development process.
(source: www.businessdictionary.com)
carriage
Carrying, conveyance, transportation of goods and/or people.
(source: www.businessdictionary.com)
chain stores
Group of retail outlets owned by one firm and spread nationwide or worldwide, such as Body Shop, K-Mart, Wal-Mart. Chain stores usually have (1) similar architecture, (2) store design and layout, and (3) choice of products.
(source: www.businessdictionary.com)
chain-style business
Franchise in which a franchisee operates under the franchisor’s brand or trade name and becomes a unit of the franchisor’s business.
(source: www.businessdictionary.com)
channel
General: Conduit for delivering goods, services, or information.
Communications: Path an electrical signal (such as a telephone conversation) or electromagnetic signal (such as radio or TV broadcast) follows.
Internet: Website which broadcasts (pushes) requested content to subscribers.
Marketing: Means employed to distribute goods or services from producers to consumers.
(source: www.businessdictionary.com)
channel conflict
Situation when a producer or supplier bypasses the normal channel of distribution and sells directly to the end user. Selling over the internet while maintaining a physical distribution network is an example of channel conflict. See also disintermediation.
(source: www.businessdictionary.com)
channel length
Number of individual entities comprising the channel of distribution between the producer and the consumer.
(source: www.businessdictionary.com)
channel management
Process by which a producer or supplier directs marketing activity by involving and motivating the entities comprising its channel of distribution.
(source: www.businessdictionary.com)
channel marketing
Directing specific promotional efforts at specific links or levels (distributor, wholesaler, retailer) in a channel of distribution.
(source: www.businessdictionary.com)
channel stuffing
A deceptive and illegal retail business practice in which a company sends more inventory than could be sold to stores along its distribution channel. Channel stuffing temporarily boosts the accounts receivable for the distributing company since more product is pushed out than normal, but can also result in more items ultimately being sent back to the distributor. Stores with excess inventory are more likely to send excess inventory back to the distributor instead of sending cash payments, which will ultimately deflate the value of the distributor’s sales.
(source: www.businessdictionary.com)
channel width
Number of different entities available for providing the same distribution function (as a distributor, wholesaler, or retailer) at different stages in a distribution channel.
(source: www.businessdictionary.com)
channel-based pricing
Method in which the price depends on the means of delivery of a good or service. Merchants usually offer lower than the store prices for items sold through internet, for example.
(source: www.businessdictionary.com)
classification of buyers
Differentiation of buyers into categories (distributor, wholesaler, retailer, end user, etc.) based on their level in the distribution chain, for setting prices and discounts.
(source: www.businessdictionary.com)
co-managed inventory
Arrangement under which a specific quantity of a consumable item is stored at a customer’s premises. Upon its consumption or depletion, the item is replaced by the seller, with the consent and knowledge of the customer. See also vendor managed inventory.
(source: www.businessdictionary.com)
collaborative planning, forecasting, and replenishment (CPFR)
Vendor managed inventory (VMI) arrangement in which both buyer and supplier share internal information to integrate their plans, forecasts, and delivery schedules to ensure a smooth flow of goods and services as they are needed.
(source: www.businessdictionary.com)
consolidated shipment
Cargo shipping method in which a freight forwarder at the port of origin combines several individual consignments to make up a full container load. This arrangement allows the goods to be shipped as containerized-cargo that offers greater security at lower shipping rates. At the port of destination, the consolidated shipment is separated (deconsolidated or degrouped) back into the original individual consignments for delivery to their respective consignees. Also called grouped shipment.
(source: www.businessdictionary.com)
consolidation service
Cargo consolidation service provided by a freight forwarder in which several smaller shipments are assembled and shipped together to avail of better freight rates and security of cargo. Also called assembly service, cargo consolidation, or freight consolidation.
(source: www.businessdictionary.com)
continuous replenishment program (CRP)
Vendor managed inventory (VMI) arrangement in which either the vendor continuously monitors a customer’s inventory or customer supplies current inventory data, so that the vendor can make timely shipments to maintain the customer’s inventory at agreed upon levels.
(source: www.businessdictionary.com)
contract logistics
Planning, implementation, and control of a logistics system provided through a third party under a contract.
(source: www.businessdictionary.com)
cooperative advertising
Agreement between a manufacturer and a member of distribution chain (distributor, wholesaler, or retailer) under which the manufacturer shares a certain percentage of the member’s advertising and promotion costs, or contributes a fixed sum.
(source: www.businessdictionary.com)
Cradle-to-Grave
Logistics planning, design, and support which takes in to account logistics support throughout the entire system life cycle.
(source: www.logisticsworld.com)
crossdocking
Distribution method in which the goods flow in an unbroken sequence from receiving to shipping (dispatching), thus eliminating storage. Also called flow through distribution.
(source: www.businessdictionary.com)
crossdocking facility
Building with receiving docks and shipping (dispatching) docks. Incoming goods enter from one side, are separated and mixed as required, and sent out from the other side without being held in storage.
(source: www.businessdictionary.com)

 

dealer
Individual or firm that buys goods from a producer or distributor for wholesale and/or retail reselling. Unlike a distributor, a dealer is a principal and not an agent.
(source: www.businessdictionary.com)
dealer principal
Firm controlling two or more dealerships.
(source: www.businessdictionary.com)
deconsolidation
Separating a ‘consolidated’ (usually containerized) shipment into its original constituent shipments, for delivery to their respective consignees. Also called degroupage. See also consolidated shipment and consolidation.
(source: www.businessdictionary.com)
dekitting
Breaking up of kitted components or parts and their return to the stores.
(source: www.businessdictionary.com)
demand chain
Supply chain as seen from the viewpoint of the customer, the entity who chooses among competing products and services and, thus, controls the demand.
(source: www.businessdictionary.com)
depot
Facility for the receipt, segregation, inspection, storage, issue and/or distribution of goods. Equipment depots provide the additional services of maintenance, repair, assembly, disassembly, etc.
(source: www.businessdictionary.com)
direct channel
Distribution channel in which a producer supplies or serves directly to an ultimate user or consumer, without any middleman (agent, distributor, wholesaler, retailer).
(source: www.businessdictionary.com)
direct selling
Face to face presentation, demonstration, and sale of products or services, usually at the home or office of a prospect by the independent direct sales representatives. Employed by firms such as Avon, Mary Kay, and Tupperware, direct selling differs from network marketing in that it offers little or no incentives for recruiting ever increasing number of sales representatives.
(source: www.businessdictionary.com)
distribution
Commerce: Movement of goods and services from the source through the distribution channel, right up to the final customer, consumer, or user—and the movement of payment in the opposite direction, right up to the original producer or supplier.
(source: www.businessdictionary.com)
distribution channel
Path or ‘pipeline’ through which goods and services flow in one direction (from vendor to the consumer), and the payments generated by them flow in the opposite direction (from consumer to the vendor). A distribution channel can be as short as being direct from the vendor to the consumer or may include several inter-connected (usually independent but mutually dependent) intermediaries such as wholesalers, distributors, agents, retailers. Each intermediary receives the item at one pricing point and moves it to the next higher pricing point until it reaches the final buyer. Also called channel of distribution or marketing channel.
(source: www.businessdictionary.com)
distribution cost
Cost or expense incurred in moving goods from the point of production to the point of consumption. Also called distribution expense.
(source: www.businessdictionary.com)
distribution intermediary
Individual or firm (such as an agent, distributor, wholesaler, retailer) that links producers to other intermediaries or the ultimate buyer. Distribution intermediaries help a firm to promote, sell, and make-available a good or service through contractual arrangements or purchase and resale of the item. Each intermediary receives the item at one pricing point and moves it to the next higher pricing point until the item reaches the final buyer. Also called marketing intermediary.
(source: www.businessdictionary.com)
distribution mix
Combination of five major components of effective distribution of goods, namely (1) inventory, (2) warehousing, (3) communications, (4) packaging, and (5) transport.
(source: www.businessdictionary.com)
distribution model
Mathematical simulation of the key decisions associated with a distribution channel to compute the optimal solutions regarding inventory, warehousing, routing, transportation, and other such factors.
(source: www.businessdictionary.com)
distribution network
Entire chain of distribution intermediaries from the supplier to the consumer. A strong and efficient distribution network is one of the most important assets a manufacturer can have, and is the biggest deterrent that faces the new competitors.
(source: www.businessdictionary.com)
distribution pack
Secondary packaging for an item to facilitate its distribution and/or protect it during the distribution process.
(source: www.businessdictionary.com)
distribution requirement planning (DRP-I)
Systematic process for determining which goods, in what quantity, at which location, and when are required in meeting anticipated demand. This inventory related information is then entered into a manufacturing requirements planning (MRP-I) system as gross requirements for estimating input flows and production schedules.
(source: www.businessdictionary.com)
distribution resource planning (DRP-II)
Extended version of distribution requirement planning (DRP-I) process which includes provision for key non-inventory resources such as labor, material handling facilities, and storage space. This information is then entered into a manufacturing resources planning (MRP-II) system as gross requirements for estimating input flows and production schedules.
(source: www.businessdictionary.com)
distribution system
Entire set-up consisting of procedures, methods, equipment, and facilities, designed and interconnected to facilitate and monitor the flow of goods or services from the source to the end user.
(source: www.businessdictionary.com)
distribution warehouse
Facility that is usually smaller than a firm’s main warehouse and is used for receipt, temporary storage, and redistribution of goods according to the customer orders as they are received. Also called branch warehouse or distribution center.
(source: www.businessdictionary.com)
distributor
Entity that buys non-competing products or product-lines, warehouses them, and resells them to retailers or direct to the end users or customers. Most distributors provide strong manpower and cash support to the supplier or manufacturer’s promotional efforts. They usually also provide a range of services (such as product information, estimates, technical support, after-sales services, credit) to their customers.
(source: www.businessdictionary.com)
door to door service
Through transport or shipping arrangement to ensure direct flow of goods from the exporter to the importer (or from the point-of-origin to the point-of-sale) with a minimum of interruption and delay. Also called house to house service.
(source: www.businessdictionary.com)
drop shipment
Delivery of merchandise from a manufacturer or original supplier direct to a buyer, without passing through the warehouse of a distributor or retailer (who generated and processed the sale). It is the most common form of fulfilling orders taken by most network marketing firms and internet-based retailers.
(source: www.businessdictionary.com)
drop shipper
Agent, distributor, or retailer who carries little or no inventory but earns commission on orders passed on to the manufacturer or original supplier. The ordered goods are ‘drop shipped’ (see drop shipment) directly from the source to the customer. Most of the network marketing firms and internet based merchants of books, drugs, supplements, toys, etc., are drop shippers.
(source: www.businessdictionary.com)
dual distribution
Wholesale or retain resale through more than one distribution channel, such as via dealers to smaller customers and direct to the large customers.
(source: www.businessdictionary.com)

EDI for Administration, Commerce and Transport
United Nations rules for Electronic Data Interchange for Administration, Commerce and Transport. They comprise a set of internationally agreed upon standards, directories and guidelines for the electronic interchange of structured data related to trade in goods and services between independent computerized information systems.
(source: www.logisticsworld.com)
Enterprise Resource Planning (ERP)
Accounting oriented, relational database based, multi-module but integrated, software system for identifying and planning the resource needs of an enterprise. ERP provides one user-interface for the entire organization to manage product planning, materials and parts purchasing, inventory control, distribution and logistics, production scheduling, capacity utilization, order tracking, as well as planning for finance and human resources. It is an extension of the manufacturing resource planning (MRP-II). Also called enterprise requirement planning.
(source: www.businessdictionary.com)
entry
Customs documents required to clear an import shipment for entry into the general commerce of a country.
(source: www.atlantic-pacific.us)
Ex
“from” – when used in pricing terms such as “Ex Factory” or “Ex Dock,” it signifies that the price quoted applies only at the point of origin indicated.
(source: www.atlantic-pacific.us)
exception
Notations made when the cargo is received at the carrier’s terminal or loaded aboard a vessel. They show any irregularities in packaging or actual or suspected damage to the cargo. Exceptions are then noted on the bill of lading.
(source: www.atlantic-pacific.us)
expiry date
Issued in connection with documents such as letters of credit, tariffs etc. to advise that stated provisions will expire at a certain time.
(source: www.atlantic-pacific.us)
export declaration
A government document declaring designated goods to be shipped out of the country. To be completed by the exporter and filed with the U.S. Government.
(source: www.atlantic-pacific.us)
export license
A government document which permits the “Licensee” to engage in the export of designated goods to certain destinations.
(source: www.atlantic-pacific.us)

facilitating agent
Person or firm that provides facilitating services such as transporting, warehousing, and distribution. A facilitating agent generally does not handle tasks that require transfer of title, such as buying or selling.
(source: www.businessdictionary.com)
financial supply chain
Integral component of a supply chain, connecting trading partners from order placement to receipt of payment. It carries the flow of financial information and money in the direction opposite to the flow of goods and services.
(source: www.businessdictionary.com)
forward linkages
Distribution chain connecting a producer or supplier with the customers.
(source: www.businessdictionary.com)
fourth party logistics (4PL)
Arrangement in which a firm contracts out (outsources) its logistical operations to two or more specialist firms (the third party logistics) and hires another specialist firm (the fourth party) to coordinate the activities of the third parties.
(source: www.businessdictionary.com)
fulfillment
Process of taking an order and executing it by making it ready for delivery to its intended customer. It may involve warehouse pickup, packaging, labeling, etc.
(source: www.businessdictionary.com)
full container load (FCL)
A shipment in which the freight completely fills a container.
(source: www.logisticsworld.com)
full line forcing
Producer or supplier insistence that the dealer must carry the full range of products in the line. This policy may not be illegal if it can be established that it serves a legitimate business need.
(source: www.businessdictionary.com)
full service merchant wholesaler
Firm that (1) offers cash and credit card retailing, (2) merchandising and promotion support to its suppliers, (3) has own sales force, (4) does its own market research, and (5) provides pre-sale, installation, and post-sale services.
(source: www.businessdictionary.com)

gateway
Industry-related: A point at which freight moving from one territory to another is interchanged between transportation lines.
(source: www.atlantic-pacific.us)
general merchandise warehouse
Warehouse suitable for merchandise not requiring controlled (hot or cold) environment.
(source: www.businessdictionary.com)
goods in transit
Goods that have departed from the dispatch, loading, or shipping point but have not yet arrived at the receipt, offloading, or delivery point. Also called in transit inventory or stock in transit.
(source: www.businessdictionary.com)
GRI
Abbreviation for “General Rate Increase.” Used to describe an across-the-board tariff rate increase implemented by conference members and applied to base rates.
(source: www.atlantic-pacific.us)
groupage
A consolidation service, putting small shipments into containers for shipment.
(source: www.atlantic-pacific.us)
guaranteed price
Arrangement under which a manufacturer or supplier promises to refund the difference if it lowers the prices while an agent or dealer still has goods bought at the previous (higher) prices. This arrangement serves to encourage the agents or dealers to order goods in large quantities, without worrying about the loss from any subsequent drop in prices.
(source: www.businessdictionary.com)

inbound logistics
Receiving, storing, and disseminating incoming goods or material for use.
(source: www.businessdictionary.com)
integrated logistics
System-wide management of entire logistics chain as a single entity, instead of separate management of individual logistical functions.
(source: www.businessdictionary.com)
intensive distribution
Marketing strategy under which a firm sells through as many outlets as possible, so that the consumers encounter the product virtually everywhere they go: supermarkets, drug stores, gas stations, etc. Soft drinks are generally made available through intensive distribution.
(source: www.businessdictionary.com)
interchange
Transfer of cargo and equipment (aircraft or ships) from one carrier to another.
(source: www.businessdictionary.com)
interchannel competition
Market situation where the members of the same distribution channel have to compete with each other for the same customer. For example, independent retailers having to compete with a manufacturer’s own outlets.
(source: www.businessdictionary.com)
In-Transit Visibility (ITV)
An information system which tells shippers, carriers, and consignees at any time where and when shipments are picked up, present location, and where and when shipments will be delivered.
(source: www.logisticsworld.com)

Just-in-Time (JIT)
Order placement and delivery that is synchronized with production schedules to reduce or minimize inventory costs.
(source: www.logisticsworld.com)

kit
In inventory management, a separate stock keeping unit (SKU) supplied or used as one item under its own part number.
(source: www.businessdictionary.com)
kitting
Process in which individually separate but related items are grouped, packaged, and supplied together as one unit. For example, in ordering a PC online, a customer may select memory, drives, peripherals, and software from several alternatives. The supplier then creates a customized kit that is assembled and shipped as one unit.
(source: www.businessdictionary.com)
knocked down (KD)
Articles (such as bicycles, fans, furniture) supplied unassembled, but with all components and assembly instructions, to avail of preferred shipping rates and reduced import duties. To qualify as KD, an article must be taken apart, folded, or telescoped in a manner that its overall bulk or size is reduced by at least one third (33 1/3 percent) of the assembled bulk or size.
(source: www.businessdictionary.com)
known loss
A loss discovered before or at the time of delivery of a shipment.
(source: www.atlantic-pacific.us)

Lean Logistics (LL, L2)
Logistics systems which use the most direct and efficient means to supply, transport, distribute, maintain, and repair resources.
(source: www.logisticsworld.com)
less than truck load (LTL)
Cargo weight between partial and full truckload.
(source: www.businessdictionary.com)
loading bay
Warehouse area where goods are loaded on/off a vehicle, the point where warehouse meets the outside world.
(source: www.businessdictionary.com)
logistics
Planning, execution, and control of the procurement, movement, and stationing of personnel, material, and other resources to achieve the objectives of a campaign, plan, project, or strategy. It may be defined as the ‘management of inventory in motion and at rest.’
(source: www.businessdictionary.com)
…the process of planning, implementing, and controlling the efficient, effective flow and storage of goods, services, and related information from point of origin to point of consumption for the purpose of conforming to customer requirements.” Note that this definition includes inbound, outbound, internal, and external movements, and return of materials for environmental purposes.
(source: Council of Logistics Management)
logistics chain
All successive steps comprising a logistic process in a particular environment or industry.
(source: www.businessdictionary.com)
logistics channel
Network of all participants in a supply chain engaged in the receiving, handling, storage, transportation, and communications functions.
(source: www.businessdictionary.com)
logistics management
Application of management principles to logistics operations for efficient and cost effective movement of goods and personnel.
(source: www.businessdictionary.com)
logistics support
Procurement and distribution of equipment, facilities, spares, technical information, and trained personnel, essential to the proper operation of a campaign, plan, or project.
(source: www.businessdictionary.com)
LTL carrier
Trucking company which consolidates less-than-truckload cargo for multiple destinations on one vehicle.
(source: www.logisticsworld.com)

machine readable
Data or instructions (such as that stored as a bar code, written in magnetic ink, or recorded digitally on a disk), that can be read through an electronic device (such as a laser scanner, magnetic stripe reader, or disk drive) for interpretation and manipulation by a computer.
(source: www.businessdictionary.com)
markup
Distribution: Difference in prices at different stages (price points) between a producer and the ultimate buyer.
(source: www.businessdictionary.com)
master distributorship
Arrangement under which a manufacturer grants a distributor the right to appoint sub-distributors within a specified geographical area.
(source: www.businessdictionary.com)
master franchise
Arrangement under which a franchiser grants a franchisee the right to appoint sub-franchisees within a specified geographical area.
(source: www.businessdictionary.com)
materials handling
Short distance movement of goods or materials within a storage area, involving loading, unloading, palletizing, de-palletizing, etc.
(source: www.businessdictionary.com)
merchandising allowance
Sales promotion incentive scheme under which a manufacturer or distributor reduces the wholesale price of a good as a compensation for a retailer’s special promotional efforts.
(source: www.businessdictionary.com)
milk run
Delivery method for mixed loads from different suppliers. Instead of each of several (say 5) suppliers sending a vehicle every week to meet the weekly needs of a customer, one vehicle visits each supplier on a daily basis and picks up deliveries for that customer. This way, while still five vehicle loads are shipped every week, each vehicle load delivers the full daily requirements of the customer from each supplier. This method gets its name from the dairy industry practice where one tanker collects milk every day from several dairy farmers for delivery to a milk processing firm.
(source: www.businessdictionary.com)
mini landbridge
An intermodal system for transporting containers by ocean and then by rail or motor to a port previously served as an all water move (e.g., Hong Kong to New York over Seattle).
(source: www.atlantic-pacific.us)
minimum charge
The lowest charge that can be assessed to transport a shipment.
(source: www.atlantic-pacific.us)

node
Place in a distribution channel where goods come to a rest, such as transfer points and warehouses.
(source: www.businessdictionary.com)
Non-Vessel Operating Common Carrier (NVOCC)
A cargo consolidator in ocean trades who will buy space from a carrier and sub sell it to smaller shippers. The NVOCC issues bills of lading, publishes tariffs and otherwise conducts itself as an ocean common carrier, except that it will not provide the actual ocean or intermodal service.
(source: www.atlantic-pacific.us)

ocean bill of lading (ocean B/L)
A contract for transportation between a shipper and a carrier. It also evidences receipt of the cargo by the carrier. A bill of lading shows ownership of the cargo and, if made negotiable, can be bought, sold or traded while the goods are in-transit.
(source: www.atlantic-pacific.us)
on board
A notation on a bill of lading that cargo has been loaded on board a vessel. Used to satisfy the requirements of a letter of credit, in the absence of an express requirement to the contrary.
(source: www.atlantic-pacific.us)
on deck
A notation on a bill of lading that the cargo has been stowed on the open deck of the ship.
(source: www.atlantic-pacific.us)
open insurance policy
A marine insurance policy that applies to all shipments made by an exporter over a period of time rather than to one shipment only.
(source: www.atlantic-pacific.us)
open top container
A container fitted with a solid removable roof, or with a tarpaulin roof so the container can be loaded or unloaded from the top.
(source: www.atlantic-pacific.us)
order-notify (O/N)
A bill of lading term to provide surrender of the original bill of lading before freight is released; usually associated with a shipment covered under a letter of credit.
(source: www.atlantic-pacific.us)
original bill of lading (OBL)
A document which requires proper signatures for consummating carriage of contract. Must be marked as “original” by the issuing carrier.
(source: www.atlantic-pacific.us)
outbound logistics
Movement of material associated with storing, transporting, and distribution a firm’s goods to its customers.
(source: www.businessdictionary.com)
overhead
General: Resource consumed or lost in completing a process, but which does not contribute directly to the end-product. Also called burden cost.
(source: www.businessdictionary.com)

pallet
Piece of equipment that facilitates mechanical handling of stacked (palletized) goods for fork-lift trucks. Made usually of rough (undressed) wood and commonly 4 x 4 feet (1.2 x 1 meter in Europe) in dimensions, it can carry a typical load of one metric ton (1,000 kilograms or about 2,200 pounds), and serves as a base for assembling, handling, sorting, storing, and transporting goods as a unit load. Job specific pallets come in different designs, dimensions, and materials; such as a two-way entry pallet, four-way entry pallet, box pallet, post pallet, steel pallet, etc. Also called a skid.
(source: www.businessdictionary.com)
palletization
Method of storing and transporting goods stacked on a pallet, and shipped as a unit load. It permits standardized ways of handling loads with common mechanical equipment such as fork-lift trucks.
(source: www.businessdictionary.com)
Pareto principle
Observation that where a large number of factors or agents contribute to a result, the majority (about 80 percent) of the result is due to the contributions of a minority (about 20 percent) of factors or agents. Investigations suggest, for example, that some 80 percent of the sales of a firm are generated by 20 percent of its customers, 80 percent of the inventory value is tied up in 20 percent of the items, 80 percent of problems are caused by 20 percent of reasons. It is however a heuristics principle, and has not been proved as a scientific law. Named after its proposer Vilfredo Federico Damaso Pareto (1848-1923), French-born Italian engineer and a founder of welfare economics. Also called 80/20 principle, Pareto’s Law, or principle of imbalance.
(source: www.businessdictionary.com)
physical distribution
Handling, movement, and storage of goods from the point of origin to the point of consumption or use, via various channels of distribution. See also business logistics.
(source: www.businessdictionary.com)
piggyback
Semitrailer built with reinforcements to withstand transport by a railroad flatcar.
(source: www.logisticsworld.com)
price maintenance
Agreement under which a manufacturer fixes the minimum price below which a trademarked or brand name article may not be sold to the ultimate consumer or user. These agreements are usually binding not only on the contracting parties, but also on all those who know of the agreement although they did not sign it.
(source: www.businessdictionary.com)
private warehouse
Storage facility owned by the firm whose goods are stored in it.
(source: www.businessdictionary.com)
protected territory
Provision in an agency, distributorship, or franchise agreement whereby the principal guarantees that (for a specified period) no additional agent, distributor, or franchisee will be appointed in the specified geographical area.
(source: www.businessdictionary.com)
public warehouse
Storage facility that offers its services to all firms and persons.
(source: www.businessdictionary.com)

radio frequency identification (RFID)
Automatic identification of packages, products, machinery, etc., through attached transponders. RFID provides ‘out of line of sight’ identification, and at distances much greater than that can be scanned by barcode readers.
(source: www.businessdictionary.com)
reverse distribution
Collection of damaged, outdated, or unsold goods and bringing them back to the supplier or manufacturer. Also called reverse logistics.
(source: www.businessdictionary.com)
reverse logistics
Flow of surplus or unwanted material, goods, or equipment back to the firm, through its logistics chain, for reuse, recycling, or disposal.
(source: www.businessdictionary.com)
route
Established or possible path between two points or nodes, from source to destination, or from point of departure to point of termination.
(source: www.businessdictionary.com)
route planning
Computing the most cost-effective route involving several nodes or stopovers by minimizing the distance traveled and/or time taken.
(source: www.businessdictionary.com)
routing
Selecting the minimum cost, distance, and/or time path from several alternatives for a good or message to reach its destination.
(source: www.businessdictionary.com)

selective distribution
Type of product distribution that lies between intensive distribution and exclusive distribution, and in which only a few retail outlets cover a specific geographical area. Considered more suitable for high-end items such as ‘designer’ or prestige goods.
(source: www.businessdictionary.com)
siding
Short-distance railroad track serving a factory or warehouse, and connected to the main track via a switch.
(source: www.businessdictionary.com)
stock keeping unit (SKU)
Warehousing item that is unique because of some characteristic (such as brand, size, color, model) and must be stored and accounted for separate from other items. Every SKU is assigned a unique identification number (inventory or stock number) which is often the same as (or is tied to) the item’s EAN or UPC.
(source: www.businessdictionary.com)
streamline
To improve the efficiency of a process, business or organization by simplifying or eliminating unnecessary steps, using modernizing techniques, or taking other approaches.
(source: www.businessdictionary.com)
supply chain
Entire network of entities, directly or indirectly interlinked and interdependent in serving the same consumer or customer. It comprises of vendors that supply raw material, producers who convert the material into products, warehouses that store, distribution centers that deliver to the retailers, and retailers who bring the product to the ultimate user. Supply chains underlie value-chains because, without them, no producer has the ability to give customers what they want, when and where they want, at the price they want. Producers compete with each other only through their supply chains, and no degree of improvement at the producer’s end can make up for the deficiencies in a supply chain which reduce the producer’s ability to compete.
(source: www.businessdictionary.com)
supply chain management (SCM)
Management of material and information flow in a supply chain to provide the highest degree of customer satisfaction at the lowest possible cost. SCM requires commitment of supply chain partners to work closely to coordinate order generation, order taking, and order fulfillment—thus, creating an ‘extended enterprise’ spreading far beyond the producer’s location.
(source: www.businessdictionary.com)
supply support
Management methods, practices and procedures employed in determining requirements of goods and services and their acquisition, receipt, storage, issuance, and final disposal. Supply support is an important element of integrated logistics support.
(source: www.businessdictionary.com)
supply system
Equipment, facilities, methods, and personnel employed in accurate and timely provision of items required in a process, program, or project.
(source: www.businessdictionary.com)

terminal charge
A charge made for a service performed in a carrier’s terminal area.
(source: www.atlantic-pacific.us)
TEU
Abbreviation for “Twenty foot Equivalent Unit”.
(source: www.atlantic-pacific.us)
third party logistics (3PL)
Arrangement in which a firm with long and varied supply chains outsources it logistical operations to one or more specialist firms, the third party logistics providers. See also fourth party logistics.
(source: www.businessdictionary.com)
TIR
“Transport International par la Route.” Road transport operating agreement among European governments and the United States for the international movement of cargo by road. Display of the TIR carnet allows sealed containerloads to cross national frontiers without inspection.
(source: www.atlantic-pacific.us)
trade allowance
Discount offered by producers or marketers to distribution channel members (distributors, wholesalers, retailers) usually as a short-term promotional incentive. Its objective is to effect a lower retail price to stimulate sales. Not to be confused with trade discount.
(source: www.businessdictionary.com)
trade promotion
Marketing campaign aimed at building demand at the middleman (distribution channel) level. In a trade promotion, wholesalers and/or retailers are offered special price discounts (often in addition to a trade allowance), subsidized or free display racks or stands, gifts, or other incentives.
(source: www.businessdictionary.com)
transship
To transfer goods from one transportation line to another, or from one ship to another.
(source: www.atlantic-pacific.us)

UCP
Abbreviation for the “Uniform Customs and Practice for Documentary Credits,” published by the International Chamber of Commerce. This is the most frequently used standard for making payments in international trade; e.g., paying on a Letter of Credit. It is most frequently referred to by its shorthand title: UCP No. 500. This revised publication reflects recent changes in the transportation and banking industries, such as electronic transfer of funds.
(source: www.atlantic-pacific.us)
unit load device (ULD)
Standardized cargo container for air, land, or sea transportation.
(source: www.businessdictionary.com)
unitized load
Load of several articles or containers bound together, with plastic or steel strapping and/or shrink or stretch films, for handling or transportation as one unit. Also called unit load.
(source: www.businessdictionary.com)

value chain
Interlinked value-adding activities that convert inputs into outputs which, in turn, add to the bottom line and help create competitive advantage. A value chain typically consists of (1) inbound distribution or logistics, (2) manufacturing operations, (3) outbound distribution or logistics, (4) marketing and selling, and (5) after-sales service. These activities are supported by (6) purchasing or procurement, (7) research and development, (8) human resource development, (9) and corporate infrastructure.
(source: www.businessdictionary.com)
vertical market system (VMS)
Formally or informally coordinated distribution channel where its independent members work together to achieve greater efficiency and economies of scale, and to eliminate channel-conflict arising out of disparate individual objectives. Three common types of VMS are: (1) Administered: coordination between production and distribution firms is achieved by the size and influence of the dominant firm, without a formal agreement or ownership. (2) Contractual: independent production and distribution firms formally agree to integrate their resources. Franchising is an example of this type. (3) Corporate: production firm owns a retail chain (forward integration) or a retail chain owns a production firm (backward integration).
(source: www.businessdictionary.com)

war risk
Insurance coverage for loss of goods resulting from any act of war.
(source: www.atlantic-pacific.us)
warehouse
Facility designed for temporary storage.
(source: www.businessdictionary.com)
warehouse retailing
Mass retailing of merchandise such as groceries, hardware, home furnishing, over-the-counter drugs, toiletries, etc., through a super store that offers very low prices and little or no customer service.
(source: www.businessdictionary.com)
waybill (WB)
A document prepared by a transportation line at the point of a shipment; shows the point of the origin, destination, route, consignor, consignee, description of shipment and amount charged for the transportation service. It is forwarded with the shipment or sent by mail to the agent at the transfer point or waybill destination.
Abbreviation is WB. Unlike a bill of lading, a waybill is NOT a document of title.
(source: www.atlantic-pacific.us)
without recourse
A phrase preceding the signature of a drawer or endorser of a negotiable instrument; signifies that the instrument is passed onto subsequent holders without any liability to the endorser in the event of nonpayment or nondelivery.
(source: www.atlantic-pacific.us)
W.M. (W/M)
Abbreviation for “Weight or Measurement;” the basis for assessing freight charges. Also known as “worm.” The rate charged under W/M will be whichever produces the highest revenue between the weight of the shipment and the measure of the shipment.
(source: www.atlantic-pacific.us)

York-Antwerp rules of 1974
Established the standard basis for adjusting general average and stated the rules for adjusting claims.
(source: www.atlantic-pacific.us)

Zulu time
Time based on Greenwich Mean Time.
(source: www.atlantic-pacific.us)
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