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Logistics Dictionary
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01.01.2010 23:12

 

A

Absorption Costing

Applying variable and fixed costs to the value of inventory.

Activity-Based Costing

An accounting system that measures cost and performance of specific logistics activities.

Ad Hoc Order

Urgent order that needs to be fulfilled in a short time and without prior notice

AGR (Arrival Goods Notice)

A report that contains detail arrival goods information.

Aisle

A passageway between racks or blocks of inventory.

ALES (Axapta Logistics Execution System)

A logistics management system that combines features of ERP & SCM.

Ambient area

Warehouse with normal room temperature =<32 0C & relative humidity =<80%

APS (Advanced Planning and Scheduling)

A subcomponent of supply chain planning, typically contextually describing manufacturing planning and scheduling.

ASN (Advanced Ship Notice)

Electronic message, including electronic data interchange (EDI) or Extensible Markup Language (XML), giving notification of product due prior to receipt.

ATO (Assemble-to-Order)

Strategy allowing a product or service to be made to specific order, where a large number of products can be assembled in various forms from common components. This requires sophisticated planning processes to anticipate changing demand for internal components or accessories while focusing on mass customization of the final products to individual customers.

ATP (Available-to-Promise)

Uncommitted inventory and planned production in master scheduling to support customer order promises.

Automated Storage and Retrieval System (AS/RS)

Computer-driven highrise system used to store and select cases or items automatically. A system typically consists of highrise shelving, multi-level conveyors, and highrise industrial truck equipment.

Automatic Replenishment

An extension of QR and CR where suppliers assume responsibility for retail inventories and replenishment

Automation

The combination of hardware (computer), software (programs and design), and machines (conveyors, etc.) to accomplish a series of decisions and interrelated physical tasks in a logical sequence (e.g., storage and replenishment, case selection, and automatic sorting).

Average Inventory

The average inventory level over a period of time.

 


 

 

B

B/O/H

Balance-On-Hand - an inventory of product in the warehouse shown as warehouse total, reserve total, and pick location total.

B2B (Business-to-Business)

e-commerce term for communications between companies and their suppliers

B2C (Business-to-Consumer)

e-commerce term for communications between companies and their customers

B2G (Business-to-Government)

Business activity between business entity and government

Back Order

The automatic addition of the out-of-stocks listed on one order to another shipment being delivered to a retail store. There are two types of back orders: 1) receiving - coming from a supplier or vendor (the back order is sent with the next order), and 2) shipping - going to a customer (send the back order with the next order).

Backhaul

In a distribution center operation, a merchandise shipment (usually from a supplier) brought back to the wholesale facility on the return trip of a truck that has made deliveries to retail stores.

Barge

A flat-bottomed vessel towed or pushed by another craft for transporting freight in rivers.

Batch Picking (Batch Selection)

A method of order selection in which several orders for different customers, or a "batch" of them, are picked together. Generally, a number of selectors work at the same time in different sections of the facility to pick the batch.

Benchmarking

The comparison of performance against practices of leading companies for the purpose of improving performance.

Best Practice

State-of-industry performance or application.

Bill of Lading

A document issued by a carrier that records the receipt of goods for shipment and the contract terms. It is not an invoice.

Block Stack

Goods on a pallet and are stacked up one by one without racks.

Break-Bulk

The separation of consolidated bulk load into smaller individual shipments.

Broker

A person or agency that acts as the agent for another.

Build-to-Order

Product or service to be made upon receiving order.

 


 

 

C

Call Center

A service center with customer service staff in responding to customer's day-to-day inquiries.

Capable-to-Promise (CTP)

Refers to a system that allows an enterprise to commit orders against available capacity, as well as inventory. These systems are evolving to include multiple sites, as well as the entire distribution network.

Capacity Planning

Capacity planning specifies the level of resources (e.g., facilities, equipment and labor force size) that best supports the enterprise's competitive strategy for production.

Cargo

The freight carred by a ship, aircraft, truck or other vessel or vehicle.

Carrier

Any individual, company, or corporation engaged in transporting goods.

Carrousel

A type of equipment used for selection with trays that rotate in a circular motion and bring the product directly to the selector.

Cart

A manually pushed or pulled platform that has a handle and four wheels. It is used to move merchandise in the facility.

Case

The storage case that is taken in at receiving. This can vary from a vendor case when it is split during receiving. The column in a table represents the number of retail units in a case.

Case Cube

The cubic size (usually in cubic feet) of a case computed by multiply-ing the length times the width times the height of the case (L x W x H).

Case Cube Arrangement

An approach to merchandise layout in which case dimensions are the criteria. All products packaged in the same-size shipping containers are grouped and stored near one another. This arrangement helps selectors build solid pallet loads.

Case Lot

A complete, unopened case of goods. Case lot also refers to a group of cases of goods purchased at one price, instead of being priced by the case.

Case Pack

The number of selling units in a shipping case.

CBM (Cube Meter)

The cubic size of goods computed by Length x Width X Height in the unit of meter.

C-Commerce

Refers to collaborative, electronically enabled business interactions among an enterprise's internal personnel, business partners and customers throughout a trading community. The trading community could be an industry, industry segment, supply chain or supply chain segment (see Research Note SPA-08-5311).

Central Warehouse

A warehouse that all goods are gathered at one place and then distribute to different points.

Claim

A document that provides evidence needed to prove loss due to damage, shortage, or overcharge.

Clear Height (Stacking Height)

The functional height of the facility - the maximum height to which pallets of merchandise can be safely and conveniently stacked. A three-foot open space must always be maintained above the clear height.

Code-Dated

Merchandise bearing a date code indicating when a product was pack-aged, placed on display, or should be sold. Code dates facilitate rotation and help prevent the sale of off-quality items.

Collaborative Commerce

suppliers, retailers and logistics companies sharing information for optimum supply chain efficiency

Collaborative Planning Forecasting and Replenishment (CPFR)

Data and process model standards developed for collaboration between suppliers and an enterprise with proscribed methods for planning (agreement between the trading partners to conduct business in a certain way); forecasting (agreed-to methods, technology and timing for sales, promotions, and order forecasting); and replenishment (order generation and order fulfillment). The Voluntary Inter-Industry Commerce Standards (VICS) committee, a group dedicated to the adoption of bar-coding and EDI in the department store/mass merchandise industries, has established CPFR standards for the consumer goods industry that are published by the Uniform Code Council (UCC).

Commodities

Basic food items, many of which are raw materials from which processed foods are made. These are the speculative items of the food industry (e.g., wheat, corn).

Commodity Grouping (Family Grouping)

Collection of merchandise, similar in nature and arranged together in a retail store (e.g., pet foods in the dry grocery category).

Common Carrier

A for-hire carrier that serve general public at reasonable rates.

Compartmentalized Trailer

A trailer divided into three sections to accommodate combination loads. There is one section for frozen foods, another for refrigerated perishables, and a third for non-refrigerated products (e.g., dry groceries).

Component

A part of a system or mechanism.

Consignee

The receiver of a freight shipment.

Consignor

The sender of a freight shipment, usually the seller.

Consolidation

The act of assembling less-than-truckload (LTL) shipments into truck-load (TL) shipments.

Continuous Moves

Normally used in conjunction with private truck fleets in process industries to keep the trucks moving with different loads and driver crews on regular routes with just-in-time materials. This concept is being adopted by public fleets to utilize their assets more effectively.

Conveyor

A flexible band or belt used to transport cases or products from one place in a facility to another.

Conveyor Pick-To-Belt System

A pick method used by selectors to move cases or items out of storage. The merchandise may move to sorting and consolidation areas or go directly into trailers for delivery to retail stores.

Coordinates (X,Y,Z)

The distance (in inches) from the warehouse origin point (0,0,0) along the X-, Y-, or Z-axis, identifying a specific location.

Core Competency

A company's primary functions which is essential to its success.

Cost and Freight(CNF)

price includes goods and transport.

Counterbalanced Forklift

A type of industrial lift truck that can carry heavy loads on forks extending in front of the unit. The truck's weight, plus the weight at the back end of the machine, counter-balances the weight of the pallet it picks up. Because this equipment has a wide turning radius, it requires aisles 10 to 12 feet (3 - 3.7 meters) wide.

CRM (Customer Relationship Management)

The management of maintaining long-term business relationship between business and customers.

Cross Aisle Passage

An access aisle used by selectors to avoid going to the end of a long aisle. This aisle crosses perpendicular to the selection aisles.

Cross Aisle Pick Pattern

A selection method where the selector works back and forth on alternate sides of an aisle.

Cross Docking

Product (usually in pallet quantities) is designated for certain customers before or at the time of delivery. The product is taken directly from the inbound dock to the outbound dock. Note: The received quantity is not added into the inventory.

Cube

The total capacity of a warehouse, truck, back room, re-pack room, pal-let, shelf, or product, including vertical and horizontal dimensions.

Customization

A product or service is modified according to customer's requirement.

Customs

The process of inspecting imported or exported goods to determine if and how much duty is required.

Customs Duties

Taxes collected by states upon imports to their territory.

Cycle Count

Periodical stock check to ensure the accuracy between physical inventory and book record.

Cycle Time

The amount of time it takes to complete a business process.

 


 

 

D

Date Code

A code attached to merchandise to show when it was packaged, placed on display, should be removed from display, or should be used. Codes facilitate rotation and help prevent the sale of off-quality items. See Code-Dated.

Deadhead

A truck returning empty to the distribution center.

Dead-Pile Loading

Manual stacking of cases on the floor of trucks or rail cars.

Dedicated Carriage

A third-party service that dedicates equipment and drivers to a single customer for its exclusive use.

Demand Chain

It emphasis on customer or end-user demand pulling materials and product through the chain.

Demand Management

The process of matching future demand with (sometimes constrained) projected available supply.

Demand Planning (DP)

The process of forecasting and managing the demand for products and services by end users, as well as by intermediate supply chain members.

Deployment Planning and Scheduling

Specifications on how to deploy available supplies to satisfy demand requirements.

Detention Charge

A penalty charge against shippers or receivers for delaying trucks beyond an allotted time.

Devanning

Goods are moved out of the container.

Direct Labor

Labor that is used to handle merchandise physically. It is used as the traditional basis for comparison of performance.

Distribution

The movement of products from where they are made to where they are used. There are four levels of food store distribution: manufacturing, wholesaling, retailing, and consuming.

Distribution Center

Wholesale facility of a chain-store company or distributor.

Distribution Channel

The selling channels supported by an enterprise. These may include retail sales, distribution partner (e.g., wholesale) sales, original equipment manufacturer (OEM) sales, Internet exchange or marketplace sales, and Internet auction or reverse auctions sales.

Distribution Planning

The ability to assess where products and services should be deployed and determine the stock-keeping unit/location-level replenishment plan.

Distributor

Generally refers to a wholesaler. However, it also refers to a specialized wholesaler who handles one brand or category of product (e.g., appliances, automotives, and glassware).

Dock

A collection of dock doors where trucks or rail cars are loaded (shipping) or unloaded (receiving).

Dock Door

Used to load or unload trailers or vans. Each dock door is identified individually within the system.

Documentary Credit

Many types of documents used between buyers and sellers and their respective banks to support payment and transfer title for goods shipped. May be in the form of letters of credit (LOC or L/C), bank guarantees, or forwarder cargo receipts (FCR).

Double-Deep Storage

A location with pallets placed two deep into a rack or floor slot.

Double-Length Pallet Jack

A pallet jack that can accommodate two pallets per trip. See also Pallet Jack.

Drayage

A service offered by motor carrier for cartage of rail or ocean containers from a dock to an intermediate or final destination.

Drive-In Rack

See Rack.

Drive-Through Rack

See Rack.

Drops

The action of goods to be delivered to customer.

Dry Grocery

Non-perishable, unrefrigerated packaged products found in food stores.

Dry Grocery Nonfoods

Nonfood products that are bought by the grocery buyer, handled in the main grocery warehouse, ordered by stores in full cases, and displayed in stores on standard shelving. Examples include household cleaning products, paper napkins, laundry detergents, and insect repellents.

Dunnage

Loose material used around cargo to prevent damage.

Duty Drawback

The process of obtaining refunds of duty from customs when exporting an article in the same condition as imported, or when imported parts are included in a manufactured article. Similar to European outward processing and inward processing regimes.

 


 

 

E

E-Commerce

The simplest meaning can be conducting business online. http://www.netlingo.com/lookup.cfm?term=e-commerce

ECR (Efficient Consumer Response)

A consumer goods (primarily grocery) initiative aimed at reducing inefficient practices and waste in the supply chain.

EDI (Electronic Data Interchange)

A computer system developed in 1982 that enables companies to communicate electronically using Uniform Communications Standards (UCS). EDI can be used for order entry, invoices, and correspondence which eliminates the need for typewritten documents.

EFR (Efficient Food Service Response)

A food service initiative aimed at reducing inefficient practices and waste in the supply chain.

Electronic Ordering

Ordering merchandise from suppliers through a computer hook up.

EOQ (Economic Order Quantity)

An inventory model that determines order quantity that meet customer service levels while minimizing total holding costs.

 


 

 

F

4PL (Fourth Party Logistics)

A supply chain co-ordination and management by an entity that does not supply (operate) underlying logistical services.

FCL (Full-Container Load)

The merchandise loaded in the container is all from the same customer.

FGI (Finished Goods Inventory)

Products completely manufactured, packaged, stored, and ready for distribution.

FIFO (First-In, First-Out)

Using the first-in, first-out (FIFO) method to stock and sell merchan-dise; the oldest is sold first to ensure quality and freshness. Rotation is often guided by code-dating.

Fill Rate

The percentage of order items that picking operation fills within a given time.

Fixed Costs

Costs which do not fluctuate with business volume in the short run.

Fixed Slot

A preassigned and permanent location on the selection line for a particular item or case(s) of merchandise. See also Floating Slot.

Fixed-Measure Trade Item

An item always produced in the same predefined version (e.g., type, size, weight, content and design) that may be sold at any point in the supply chain.

Floating Slot

A random location on the selection line for a particular item or case of merchandise. Inbound pallets are placed in the first available open slot (or in several different, non-adjoining slots). See also Fixed Slot.

Floor Chain Towveyor

An in-floor, motor-driven, endless chain to which four-wheel flatbed trucks are attached and then towed around the facility in a fixed pattern.

Floor Slot

A location on the selection line that consists of floor space for the stacking of merchandise.

Flow Thru

Generates shipping instructions at the point of receipt, which eliminates the need for product to be put-away in the warehouse. Instead, the product can be directly transferred from an inbound trailer directly to an outbound trailer.

FMCG (Fast Moving Consumer Product)

General consumer merchandises with short storage time in warehouse.

FOB (Free on Board)

Contractual terms between buyer and seller which define where title is transferred.

FOB Destination

Title passes at destination, seller has total responsibility until shipment is delivered.

FOB Origin

Title passes at origin, buyer has total responsibility over the goods while in shipment.

Forklift

A mechanical device used to transport pallet loads to or from storage.

Forward Location

The primary location from which the specified product is selected.

Free Trade Zone

An area designated by the government of a country for free trade

Freezer Box

A heavily insulated corrugated container that maintains temperatures of products.

Freight Charge

The cost of transporting goods from the seller's warehouse to the buyer's warehouse or store. Prepaid usually means freight costs are paid by the seller who forwards no bill to the customer. Full Freight Allowed usually means that the seller will ultimately pay freight costs; however the seller may ship goods collect and require the buyer to pay the freight bill. The buyer may then either invoice the seller or deduct the freight charges from the remittance to the seller for goods received. FOB (Free on Board) specifies payment of freight charges one of two ways. FOB Destination means a shipment is moved free on board to a destination; the seller pays the freight. FOB Factory (the point of ori-gin) means a shipment is loaded free on board at the point of origin; the buyer pays for the freight. Collect on Delivery (COD) means the buyer pays for the freight at the time of receipt.

From Location

The type of location or location ID from which the product is currently being moved.

FTZ (Foreign Trade Zone)

A zone set aside near a port, controlled by Customs Service for holding goods duty-free pending customs clearance.

Fulfillment

The process of completing transactions.

Full Pallet Select

A full pallet select occurs when the ordered quantity is the same as the quantity on a full pallet. The selection is usually performed by a fork-lift.

 


 

 

G

General Merchandise (GM)

Merchandise not considered a part of the regular grocery line, such as books, housewares, records, and clothing. This excludes soap, paper towels, light bulbs, shoe polish, and other products known as nonfoods.

Geo-Coding

Identifying narrow locations by the use of three-, four- or five-digit ZIP Codes or other identifiers (depending on country) to allow mapping, planning and execution of deliveries.

Globalization

The process of making business worldwide in scope or application.

Glocalization

Compound word of Globalization & Localization, means a product go global but modified to meet the market's preference.

GOH

Abbreviation of Garment On Hang, versus garment flat pack.

GPS

The abbreviation of Global Positioning System used to keep track object's movement.

Gravity-Flow Rack

A series of inclined shelves with rollers replenished from the rear. As one unit is selected, another automatically moves forward.

 


 

 

H

Handling Costs

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

Handling In

The process of goods receiving from customer's supplier

Handling Out

The process of goods picking & packing in the warehouse before delivery.

Handling Unit

Goods or aggregation of goods bundled together for distribution and logistics purposes. May include an individual item in a carton, combined items on pallets and skids, or items transferred in independently identified containers, such as ocean containers, rail cars or trucking trailers.

Harmonized Tariff Code

A code to numerically describe all articles in international trade managed by the World Customs Organization.

Hazardous Class/Indicator

Indicates whether the product is a hazard or source of danger. This prevents non-hazardous product from being mixed with hazardous products. The class indicates the category of hazardous material.

Hub

A center of activity or interest; a focal point.

Hundredweight (cwt)

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

 


 

 

I

IGR (Incoming Goods Report)

The report that records details of goods received.

In Transit

A term to descript the goods is being delivered.

Inbound

The flow of products into a distribution center prior to order selection.

Indirect Labor

Labor that does not handle merchandise physically (i.e., supervision, record handling, inbound checking, stock control, and housekeeping).

Information Infrastructure

A structured collection of information system components and organization processes enabling flow of information to effect enterprise integration.

Information Oscillation

A concept that identifies the need to manage information in the supply chain, taking into account such factors as time zones, shipping and receiving schedules, and open and closed days. As near-real-time event information is provided in collaborative environments, work process rules must account for escalation processes to allow for human intervention in continuous operations.

Inland

A term used to differentiate between land and water segments of a transshipment.

Inner Pack

A unit that is a multiple of a storage case. Normally this is some shrink-wrapped or bundled quantity of retail units within a case. The inner pack is made up of one or many retail units. This quantity is not required to equal the number of retail units in a shipping unit.

Integrated Logistics

A comprehensive supply chain as a single process, from raw materials supply to finished goods distribution.

Intelligent Transportation Systems (ITS)

Blanket term for wide array of technologies used in transportation process.

Intermodal Transportation

Transporting freight by using two or more transportation modes.

International Terms of Sale (INCOTERMS)

Established international terms of sale, published by the International Chambers of Commerce, that describe the responsibilities between buyers and sellers when transferring title to goods. These are significantly different from the American terms of sale commonly used in the United States.

International Trade Systems (ITS)

Execution systems designed to automate the import/export business process. The basic functional components are trade documentation generation and transmission, and regulatory compliance validation.

Inventory

All stock on hand at any given time, either visibly displayed or in stockrooms and other secured areas. Inventory also refers to compiling an itemized list of all such items.

Inventory Adjustment

Adjustments made to the inventory created by the physical inventory and cycle counting processes.

Inventory Carrying Costs

A financial measurement that calculates all costs associated with holding goods in storage.

Inventory Control

Control of current stock (shelf, back room, warehouse, on order, etc.) so that merchandise received conforms to sales demands, and out-of-stocks or over-stocks are avoided.

Inventory Detail

A pallet of a single product located in a warehouse location. When a pallet is put away, the information from the receipt detail is transferred to the inventory detail. The inventory detail is then associated with the location.

Inventory Management

The process of ensuring the availability of products through inventory administration.

Inventory Reduction

When inventory is reduced by the allocation of orders (through the BOMB process).

Inventory Turns

The cost of goods sold divided by the average level of inventory on hand.

Inventory Velocity

The speed with which inventory moves through a defined cycle.

Invoice

A bill for goods showing the amount owed to a creditor.

 


 

 

J

JIT (Just-In-Time)

An inventory management system in which warehouse inventory is maintained at minimum levels because replenishment stock is immedi-ately available from suppliers.

 


 

 

K

Kitting

Light assembly of components or parts into defined units.

 


 

 

L

Label

A pressure-sensitive, adhesive-backed paper (containing product, pricing, and other information) affixed to cases or pallets to identify and track them through the distribution process.

Labor Standards

Performance norms for operational tasks in a food distribution center. Labor standards can be communicated to workers either via electronic devices or in writing, and become the basis for measuring productivity and providing feedback to workers. They are frequently tied to worker incentive programs.

LCL (Less-Than-Container Load)

The quantity of freight which is less than that required for the application of a container load rate.

Lead Time

Total time from receipt of store order to the scheduled delivery time of the product at the store.

Less-Than-Case-Lot

Less than the quantity in one case of a particular item of merchandise.

Let Down (Replenishment)

The moving of inventory from reserve storage to the active picking slots below.

License Plate

Normally a bar code identifying a pallet or quantity of product; can be generic or system-generated.

LIFO (Last-In-First-Out)

The newest goods are sold first to ensure quality and freshness.

Loading

The process of moving goods up or down the container or carrier.

Localization

A product is adapted for market culture.

Logistics

The management of a facility's traffic and transportation functions.

Lot Number

The process of tracking production where units are produced in a batch.

LSP

A general term for Logistics Service Provider

LTL (Less-Than-Truckload)

A shipment weighing less than the weight required for a truckload rate.

 


 

 

M

Malfunction

A failure or state of operation outside of specified parameters.

Manifest

An itemized list of all passengers and cargo onboard a ship or aircraft.

Manufacturing Planning

Definition of the weekly or daily production and machine schedules across multiple plants or lines to meet orders and forecast demand. Some manufacturing planning modules also incorporate materials planning.

Manufacturing Scheduling

Generation of plant-level execution schedules by product and resource (e.g., line and machine) and resolution of day-to-day capacity bottlenecks. Scheduling applications normally include a more granular level of resource information, and will provide such functionality as sequence dependent set up, tank scheduling and point-of-use material availability.

Marginal Cost

The cost to produce one additional unit of output.

Markout

When the item ordered shows quantity on hand, but the selector is not able to find the expected quantity.

Material Flow

The way in which material is moved from one location to another during a process.

Materials Handling System

The system for moving materials throughout a facility, which was cho-sen from among many types of equipment, both conventional and auto-mated.

M-Commerce

Mobile Commerce is a form of e-commerce that deals in the fees a company collects and the content or services offered on mobile devices.

Method Study Review

Engineers audit the time standards established (from the time study) for the job description to make sure the standards are fair and accurate.

Mezzanine

A partial second floor, larger than a balcony, where the re-pack room, selection area, and offices are often located in a distribution facility.

Minimum Order Requirements

A minimum quantity of goods (set by the manufacturer or supplier) that the retailer or wholesaler must order at one time in order to qualify for a discount.

Mixed Load

A trailer load that includes more than one product line (i.e., dry groceries, produce, meat, and dairy products).

Modification

A change from an original design, plan, or configuration.

Move In

The process that goods are first moved into a new warehouse facility.

Move Out

The process that all goods are moved out from the warehouse facility where it used to store at.

Moving Time

The time zone of goods in transit to the time that is received by customer.

MRP (Materials Requirements Planning)

A decision-making methodology used to determine the timing and quantities of materials to purchase.

Multi-Modal Transportation

The process of goods delivery involves more than one kind of transportation vehicle.

 


 

 

N

Narrow Aisle

An aisle that requires special equipment to pick or stock, normally 5 - 6 feet in width.

Narrow-Aisle Straddle Forklift

A lift truck designed to work in aisles narrower than 10 feet. It can stack palletized merchandise 30 feet (9 meters) high.

Network Planning

Used to determine the overall physical channel (e.g., plants, distribution centers and warehouses) by which materials are turned into finished goods and delivered to customers. More recently, network planning tools have been enhanced for use in strategic business planning scenarios (e.g., to answer such questions as what should the company's channel strategies be or what is the impact of switching suppliers). These tools are usually used for long-term decisions, although enterprises in more-dynamic environments are employing them on a more-frequent basis.

Numbering System

A guide to all the slot locations in the facility, that is essential for efficient storage, replenishment, and selection. The system chosen depends on the facility's unique needs. Up to ten characters (alphanumeric) are used to designate aisle, bay, level, and position. A section ID before the aisle number may also be included.

 


 

 

O

On-Line Monitoring

A web-based system that enables customer to remote monitors its goods related information via internet.

On-Line Receiving

A computerized system designed to permit direct and immediate trans-mission of all receiving data from the warehouse dock to the computer.

Operation

An activity or event; the manner in which something works; a procedure or process

Operational Audit

An evaluation of the performance levels of each function within the distribution center, from receiving through shipping. It aids in assessing the center's ability to respond to corporate and market needs.

Optimization

The process of making something as effective as possible with given resources and constraints.

Optimization Routines

Routines used to determine the optimal solution for a particular problem. Included in supply chain execution and supply chain planning applications to reduce costs or time in the supply chain. Usually tactically focused for use in current operations.

Order Cycle

The time and process involved from the placement of an order to the receipt of the shipment.

Order Processing

Activities associated with filling customer orders.

Order Selection (Order Picking)

One of the basic operating functions of any distribution center. Products are selected (picked) from warehouse inventory to fill retail store orders.

Order Tracking

The action that order status is keep tracked along the process.

Outbound

The flow of products out of a warehouse after order selection.

Outbound Logistics

The movement of products from the end production line to end user.

Out-Of-Stock

Product not in supply in a warehouse or store. Warehouse "outs" are expressed as detail items of an order placed that cannot be filled.

Outsource

To utilize a third-party provider to provide services previously performed in-house.

 


 

 

P

Packaging

The wrapping, dunnage, or container in which something is packed for storage or shipment

Pallet

A wooden platform used for stacking unit loads of merchandise. Stan-dard size is 40" x 48."

Pallet Cube

The amount of cubic feet of product that is allowed to be shipped or stored on a pallet.

Pallet Facings

The side of the pallet facing the aisle from which the stock is picked or the pallet is handled by a forklift.

Pallet Jack

A multipurpose handling machine that can move unit loads. There are two basic designs: the single pallet jack, capable of selecting or moving one pallet per trip, and the double pallet jack, which can accommodate two pallets per trip.

Palletizing

The loading and securing of products in pallet loads.

Paperless

The use of RF equipment or terminals to perform functions that normally require paper or labels.

Physical Inventory

An actual count of all items on-hand at a given time in a facility.

Pick & Pack

Picking of product from inventory and packing into shipment containers.

Pick Label

A document used for selection that is applied to the product.

Pick List

An itemized list of products used in order selection.

Pick Rate

The amount of time it takes a selector to pick a determined amount of merchandise. For example, a pick rate might be 170 pieces per hour.

Piggyback

Semitrailer built with reinforcements to withstand transport by a railroad flatcar.

Pilferage

The amount of shortages from customer, employee, or vendor theft within the facility (as opposed to shortages caused by burglaries or robberies).

Planned Item Retrieval System (PIR)

A method of multilevel order selection used primarily for slow-moving full-case, and less-than-case-lot products. Based on demand and item cube, the computer assigns a floating slot to merchandise received. Order selection is completed using a manually operated cherry picker.

POD (Proof of Delivery)

Information supplied by carrier containing detail shipment related information.

POS (Point of Sales)

The retail locations where sales transactions occur.

Postponement

The delay of final activities until the latest possible time.

Prepaid

A freight term which indicates charges are to be paid by the shipper.

Primary Location (Pick Location, Select Location)

The primary location from which selection takes place.

Principal

The merchandise's owner-of-origin

Process Improvement

Process which is improved in quality or reduce costs through elimination of waste or non-value-added tasks.

Procurement

Same meaning as purchase.

Product Detail

Specific information about the product, such as a product description, size, pack, units on order, etc. Note: A product ID may have multiple product details. The product detail represents a unique pack for a product. The system treats each product detail as though it were a unique product. The different details for a single product are kept in different locations and primary selections, ensuring that the product will not mix and will be selected separately.

Product ID

A unique code identifying a specific product.

Product Life

The number of days before a product will lose its flavor, taste, or color appeal.

Product Line

A group of products with similar uses and characteristics.

Productivity

The rate of production, often measured in cases per labor hour. Whole-salers measure productivity to assess labor and operating expenses.

Protocol

A set of procedures for establishing and controlling data transmission.

"Pull" Order System

Allows stores (usually grocery) to order what they want.

Purchase Order

A document giving a vendor authority to ship specified merchandise in designated quantities at an agreed-upon time and price.

"Push" Order System

The stores (usually retail) are notified as to what items they are getting, instead of allowing them to order what they want (as in the "Pull" Order System described above).

Put-Away

Determines the best reserve or select location to store each pallet received. Put-away takes into account the stackability of the item, the height from the floor of a reserve location, whether the product is code- dated, etc.

 


 

 

Q

Quick Response

A business strategy for reducing inventory and shortening cycle time for production, distribution and sales.

 


 

 

R

Rack

A structure used for the optimum storage of palletized loads. A drive-in rack has horizontal beams running perpendicular to the aisle (so the rack can be driven partway into). A drive-through rack is similar to a drive-in rack, except that it can be driven through.

Rack Bay

A section of rack separated by the upright supports, usually two pallets in width.

Reach Truck

A mechanical device used to transport pallet loads to or from storage.

Real-Time

An operating system responds to external event within a short and predictable time frame

Receipt

A number assigned automatically by the system to a purchase order receipt, when part or all of the order is received.

Receipt Detail

Represents a pallet of a single product that is being received. Receipts details are produced by data entry (determined by TIxHI calculating the number of pallets) or by RF receiving where pallets are entered by the user.

Receiving

One of the basic operating functions of the food distribution center where incoming merchandise is unloaded from trucks or rail cars and checked for condition and completeness.

Reefer

Refrigeration equipment for transporting frozen or perishable products.

Reengineering

A redesign of business processes to achieve improvements in performance.

Re-packing

The action that goods are un-wrapped the packaging material then packed again in a required way.

Replenishment

The moving of inventory from reserve storage to the active picking slots below.

Replenishment Level

When the number of units drops below this specified amount, the inventory level is refilled.

Reserve Slot

A location where the product is stored until it is needed in selection aisles. Reserve slots may contain one or multiple pallet loads, as well as multiple items within them.

Retail Unit

The piece that is sold to a retail customer at the cash register.

 

Example:

 

Product: 12 oz. Cola cans

 

Case: 24 cans in a master case

 

Inner Pack: 6 cans tied together with plastic (a six-pack)

 

Retail Unit: A single can

 

In this example, if the customer orders by six-packs, the shipping unit would be set to 6. If the customer orders by the case, the shipping unit would be set to 24. If the customer orders by the retail unit, the shipping unit would be set to 1. Note: This is only one example of the many different ways that a product can be set up. A single product's shipping unit can be set differently on different product details.

Retrieval System (RS)

A system typically consists of high-rise shelving, multi-level conveyors, and high-rise industrial truck equipment.

Reverse Logistics

The logistics focusing on movement and management of products after sale and delivery to customer.

RF Unit

A radio frequency communications device that is mounted on a forklift, carried, or worn on a selector.

Rush Order

An order that is called in by a store/customer in which the item(s) are to be shipped the same day.

 


 

 

S

Safety Stock

A stock reserve to protect against unexpected increases in product movement and to prevent out-of-stocks.

Sales and Operations Planning (S&OP)

A formal planning process used to determine the sales and operations strategy that best meets all aspects of the enterprise's objectives. The SOP process mediates sales, marketing, finance, operations and logistics objectives to formulate a single, achievable plan for the near-term - usually under one year.

Satellite Facility

A facility that is used to store merchandise which is not accommodated in the base facility due to lack of space or equipment.

Scan Gun

This is used with an RF unit or terminal to scan (read) bar codes.

SCE (Supply Chain Execution)

A subset of supply chain management, this is a framework of execution-oriented applications that enables the efficient procurement and supply of goods, services and information across enterprise boundaries to meet customer-specific demand. In its broadest sense, SCE includes the manufacturing execution system (MES), warehouse management system and other execution systems within the enterprise, as well as throughout the supply chain. The logistics-oriented elements of SCE include the transportation management system, warehouse management system, international trade systems (ITSs), real-time decision support systems (e.g., dynamic routing and dynamic sourcing systems), and supply chain inventory visibility systems.

SCIV (Supply Chain Inventory Visibility)

Applications that allow enterprises to monitor and manage events across the supply chain to plan their activities more effectively and pre-empt problems. SCIV systems enable enterprises not only to track and trace inventory globally on a line-item level, but also submit plans and receive alerts when events deviate from expectations. This visibility into orders and shipments on a real-time basis gives enterprises reliable advance knowledge of when goods will arrive.

SCM (Supply Chain Management)

A business strategy to improve shareholder and customer value by optimizing the flow of products, services and related information from source to customer. SCM encompasses the processes of creating and fulfilling the market's demand for goods and services. It is a set of business processes that encompasses a trading partner community engaged in a common goal of satisfying the end customer. Thus, a supply chain process can stretch from a supplier's supplier to a customer's customer. Functionally, SCM encompasses both transactional execution systems (e.g., enterprise resource planning, warehouse management system, MES, transportation management system and ITS); planning; optimization systems e.g., supply chain planning); and supply chain analytics (e.g., data warehousing).

SCP (Supply Chain Planning)

A subset of SCM, this is the process of coordinating assets to optimize the delivery of goods, services and information from supplier to customer, balancing supply and demand. An SCP suite sits on top of a transactional system to provide planning, what-if scenario analysis capabilities and real-time demand commitments. Typical modules include network planning, capacity planning, demand planning, manufacturing planning and scheduling, distribution and deployment planning, and transportation planning and scheduling.

Scratch (Markout)

When the item ordered shows quantity on hand, but the selector is not able to find the expected quantity.

Seal

Small metal or plastic strip and lead fastener used for locking totes, freight car, or truck doors. Seals are numbered for record purposes.

Selection Line

The arrangement of warehouse inventory in an orderly system to facilitate selecting (picking) units to fill orders.

Service Level

The in-stock position of a warehouse expressed as the percentage of retail orders that can be filled (99% is a good level of service).

Shipper

The party which tenders goods for transportation.

Shipping

The loading and delivery (usually on trucks) of orders from the grocery distribution center to the retailer.

Shipping Unit/Shiping Case

Represents the single unit that a warehouse selects for a store. The column in a table represents the number of retail units in a shipping unit. The number of retail units in a shipping case must be evenly divisible into the number of retail units in a case. If the two numbers are equal, then the warehouse is receiving and shipping in master cases. If the numbers are not equal, then the warehouse is re-packing (breaking down) the master cases into smaller units before shipping.

Shipyard

A facility for building or repairing ships.

Shrink Wrap

A layer of plastic film encasing a palletized load of merchandise. The film is subjected to heat, causing it to shrink and conform to the shape of the load.

Shrinkage

Inventory or profit loss caused by faulty inventory counts, incorrect records, checkout errors, spoilage, or pilferage.

Simulation Routines

Various routines using historical information to simulate future alternatives for supply chain operations design. Usually strategically focused for use in future operations, these may then be optimized and/or prioritized.

SKU (Stockkeeping Unit)

A multi-character item that must be stored and accounted for separately. A single stockkeeping unit may have to be stored in different lots for quality control or maintaining stock rotation. It may also be necessary to split units between reserve storage and pick line when the entire stock cannot be maintained in the selection area.

Slot (Location)

The position occupied by pallets or cases of products. There are two types of slots: primary (select) and reserve (storage).

Slow Moving

Goods are stored in warehouse for relative long period without any moving out.

Solution

Imply a product or service which will "meet the needs" and "solve the problems" of the customer.

SOP (Standard Operation Procedure)

A set of goods handling procedure which is set in accordance with customer's instruction.

Sorting

The process of grouping products by grade (see also Grading). This may refer to separating batch-picked merchandise for shipping to various retail stores.

Spares/Service Parts Planning (SPP)

Planning that supports the optimal stock quantities and location of items used to service internal assets or customer equipment.

Split-Case (Broken-Case)

Less than a full case of merchandise. The picking method using individual units that are selected.

Staging Area

A space on which the receiving and shipping docks used to gather and check inbound and outbound loads.

Standard Pallet Rack

A one-deep, self-style rack originally designed for pallets, but also used for shelf storage of large units (usually one or two of a kind). It consists of uprights and beams that may be fixed or adjustable. Racks are secured to the floor, or rows are positioned back to back and secured to each other.

Storage and Replenishment

A basic operation of the grocery distribution center in which merchandise is moved to assigned storage or reserve locations until needed to replenish the selection line.

Straddle-Lift Truck

A narrow-aisle lift truck.

Straight Load

Merchandise delivered to retail stores in trucks carrying only one product group, or a whole trailer carrying different products for one customer.

Stretch Pallet Wrap

Bands of plastic film applied by an associate used to encase palletized loads prior to shipment. Depending on fragility or shape of the merchandise, the number of bands can be varied to protect against product damage.

Sub-Optimization

Decisions or activities in a part made at the expense of the whole.

Supplier (Vendor)

Any person or company who sells goods of any nature to a store. This term can refer to a wholesaler, jobber, wholesale agent, or manufacturer.

Supply Warehouse

A warehouse that stores raw materials or components.

System Markout

When the host shows a quantity on hand for a product, but the inven-tory system shows a quantity of zero, the item ordered is marked out within the system.

 


 

 

T

3PL (Third Party Logistics Service Provider)

The company provide Logistics related services that were previously performed in-house by the client.

Tariff

Refers to transportation in reference to fees and rules applied by carrier for its services.

Three-Level Slots (Three-Level Pallet Racks)

A rack designed for items stored in less-than-full-pallet quantities, or for pallets that do not require a full slot height. This rack can also be used for handstacking items from partially filled pallets into slot locations.

Throughput

A measure of warehousing output volume.

TI x HI

The number of cases on a single tier (layer), and the number of tiers high on a pallet.

Tier (TI)

A single layer of units forming part of a unit load.

Time Sensitive

Any time delay of the product sold to market may lead its value decrease.

Time Study

A technique to develop standard time periods for performing various tasks.

Time-Definite Services

Delivery is guaranteed on a specific day or at a certain time of the day.

To Location

A code identifying the type of location and location ID to which the product is currently being moved.

TOFC

Trailer-on-flat car (piggyback).

Tonnage

The displacement of a vessel in tons of water.

Total Average Inventory

Average normal use stock, plus average lead stock, plus safety stock.

Total Cost Analysis

An approach that considers total costs minimization and recognizes interrelationship among system variables.

Total Quality Management

The Juran total quality management trilogy is quality control, quality planning, and quality projects.

Tote

A smooth, seamless, plastic or fiberglass container with a lid for trans-porting small items (e.g., candy, HBA, and general merchandise) from the distribution center to the retail store. It is a lightweight container used to separate and protect high value items.

Tracking and Tracing

Monitoring and recording shipment movements from origin to destination.

Traffic Management

The management and controlling of transportation modes, carriers and services.

Transit Time

The total time that elapses between a shipment's pickup and delivery.

Transportation Management

System used to plan freight movements, do freight rating and shopping across all modes, select the appropriate route and carrier, and manage freight bills and payments.

Transportation Planning and Scheduling

Specifies how, when and where to transport goods. Transportation planning and scheduling applications may provide weight/size restrictions, merge-in-transit, continuous move, mode or carrier selection, and less than truckload (LTL)/full truckload (FTL) planning functionality.

Transshipment

The transfer of cargo from one conveyance to another.

Truckload Carriers (TL)

Trucking companies which move full truckloads of freight directly from point of origin to destination.

Turnover (Turns)

The rate at which products must be restocked due to customer sales. Turnover may also refer to the number of employees hired to replace those who have left an establishment.

Turret Truck

A type of lift truck that is counterbalanced with a long wheel base to stabilize it when heavy loads are lifted to high levels. It can lift and rotate loads left or right, and move loads sideways for storing and retrieving merchandise in pallet racks.

 


 

 

U

Unicart

A means of handling a unit load from the selection aisles to the retail store aisles. It moves on four wheels and has strong sides that prevent product damage. Note: Using carts to ship merchandise lowers the cube capacity of a trailer. Carts are normally off-loaded into the trailer.

Unit Cost

The cost associated with a single unit of product.

Unloading

The action that goods are move out of the vehicle / container.

UOM (Unit Of Measurement)

A pre-defined and mutually agreed unit of measurement.

UPC (Universal Product Code)

A computer code identifying a product. An electronic scanner reads the code and sends the information to a central computer. Also known as bar code.

U-Pick Selection (Perimeter, Horseshoe, or Quad Selection)

A selecting (picking) pattern in which selectors move up one side of the aisle and down the other, returning to the point where the selection cart or truck is placed.

User Acceptance Testing

User performed test to determine a system for a specific task performs according to specification.

Utilization Rate

A fleet productivity measurement that tracks % of time that vehicle is being used.

 


 

 

V

Value Added

Increased or improved value, worth, functionality or usefulness.

Variable Cost

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

Variable-Measure Trade Item

An item always produced in the same predefined version (e.g., type, design and packaging) that may be sold at any point in the supply chain. However, it may vary in weight and size by its nature, or it may be traded without a predefined weight/size/length.

Visibility

The ability to access pertinent data as it relates to logistics and supply chain.

VMI (Vendor-Managed Inventory)

In the VMI process, the vendor assumes responsibility for managing the replenishment of stock. Rather than a customer submitting orders, the vendor will replenish stock as needed. This is sometimes referred to as supplier-managed inventory (SMI) or co-managed inventory.

Volume

The rate of movement or flow of goods, services, money, or people.

 


 

 

W

Warehouse

A physical facility in which the primary purpose is storage of merchandise.

Warehouse Point

The ID for a place in the warehouse. The first three characters are the point's type; the last three digits identify the point. For example, DOR003 identifies dock door number 3. Types of points are: assignment, dock, door, haul, office, passage, P-N-D, stage, and twilight zone.

WIP (Work-in-Process)

Parts and subassemblies in process of becoming finished goods.

WMS (Warehouse Management System)

A software application that manages the operations of a warehouse or distribution center. Application functionality includes receiving, putaway, inventory management, cycle counting, task interleaving, wave planning, order allocation, order picking, replenishment, packing, shipping, labor management and automated material-handling equipment interfaces. The use of radio frequency technology in conjunction with bar codes provides the foundation of a WMS, delivering accurate information in real time.

 


 

 

Z

Zero Latency

A goal of to keep moving goods or information in the supply chain to provide near-real-time information management and reduce in-transit inventory costs.

Zone Picking

A system in which the facility is divided into areas that are determined by physical characteristics of the products, order types, or balancing of volume. Order selectors pick only in their assigned zone and move the merchandise to a staging area for assembly prior to loading for shipment.

Z-Pick Selection (Zigzag or Pivot Selection)

A selection pattern in which selectors pick back and forth on alternate sides of the aisle.

 

Source: http://hksunlogistics.com/

 


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