Absolute Minimum Charge
A carrier's ability to provide service between an origin and a destination.
Accessorial Charges
 A carrier's charge for accessorial services such as loading, unloading, pickup, and delivery, or any other charge deemed appropriate.
Actual Gross Weight (Actual Weight)
The full weight of a shipment, including goods and packaging.
Address Corrections
If UPS is unable to deliver any package as addressed by the shipper, or if the package has an incorrect or incomplete address, UPS will determine and make reasonable efforts, to be determined in its sole discretion, to secure the correct or complete address.
Adjustment (ADJ)
Couriers weigh and measure all packages in transit. Any variation in weight and or dimension will be charged at a premium by the carrier
Air Cargo
 Freight that is moved by air transportation.
Air Cargo Containers
Containers designed to conform to the inside of an aircraft. There are many shapes and sizes of containers. Air cargo containers fall into three categories: 1) air cargo pallets 2) lower deck containers 3) box type containers.
Air Carrier
An enterprise that offers transportation service via air
Air Waybill (AWB)
A bill of lading for air transport that serves as a receipt for the shipper, indicates that the carrier has accepted the goods listed, obligates the carrier to carry the consignment to the airport of destination according to specified conditions.
American Society of Transportation & Logistics
 A professional organization in the field of logistics
Anti-Dumping Duty
An additional import duty imposed in instances where imported goods are priced at less than the "normal" price charged in the exporter's domestic market and cause material injury to domestic industry in the importing country.
Arrival Notice
 A notice from the delivering carrier to the Notify Party indicating the shipment's arrival date at a specific location (normally the destination).
Assessment of Duties and Taxes
Determining the amount of duties and taxes payable.
Actual time of departure.
 In reference to freight bills, the term audit is used to determine the accuracy of freight bills
Determining the correct transportation charges due the carrier; auditing involves checking the freight bill for errors, correct rate, and weight.
Audited Dimensions
Audited Dimensions are actual dimensions (length, width, height, weight) as measurd (audited) in transit by the courier.


The process of a transportation vehicle returning from the original destination point to the point of origin. The 1980 Motor Carrier Act deregulated interstate commercial trucking, thereby allowing carriers to contract for the return trip. The backhaul can be with a full, partial, or empty load. An empty backhaul is called deadheading. Also see: Deadhead
Balanced Scorecard
A structured measurement system based on a mix of financial and non-financial measures of business performance. A list of financial and operational measurements used to evaluate organizational or supply chain performance. The dimensions of the balanced scorecard might include customer perspective, business process perspective, financial perspective, and innovation and learning perspectives. It formally connects overall objectives, strategies, and measurements. Each dimension has goals and measurements. Also see: Scorecard.
Bar Code
A symbol consisting of a series of printed bars representing values. A system of optical character reading, scanning, tracking of units by reading a series of printed bars for translation into a numeric or alphanumeric identification code. A popular example is the UPC code used on retail packaging.
Bar Code Scanner
A device to read bar codes and communicate data to computer systems.
Bar Coding
 A method of encoding data for fast and accurate readability. Bar codes are a series of alternating bars and spaces printed or stamped on products, labels, or other media, representing encoded information which can be read by electronic readers called bar.
Basing-Point Pricing
A pricing system that includes a transportation cost from a particular city or town in a zone or region even though the shipment does not originate at the basing point
The process of comparing performance against the practices of other leading companies for the purpose of improving performance. Companies also benchmark internally by tracking and comparing current performance with past performance.
Best in Class
An organization, usually within a specific industry, recognized for excellence in a specific process area
Best Practice
A specific process or group of processes which have been recognized as the best method for conducting an action. Best practices may vary by industry or geography depending on the environment being used. Best-practices methodology may be applied with respect to resources, activities, cost object, or processes.
Billed Charge
The amount charged on the invoice for a shipment
Billed Weight
The weight shown on a freight bill
 A carrier terminal activity that determines the proper rate and total charges for a shipment and issues a freight bill.
Billing Information Received/BIR
Courier has received the electronic transmission of shipment details from the shipper and a label has been created for your shipment.
Billing Information Voided/BIV
Courier has acknowledged the electronic transmission of the voiding of shipment details from the shipper for a label that was created for a shipment.
Billing Option
Flexibility to choose the payment option the best suits the shipper or the shipper's client
Bill of Lading (BOL)
 A transportation document that is the contract of carriage containing the terms and conditions between the shipper and carrier.
Bill of Lading Number
The number assigned by the carrier to identify the bill of lading.
Bill of Lading, Through
A bill of lading to cover goods from point of origin to final destination when interchange or transfer from one carrier to another is necessary to complete the journey.
Bin Center
A drop off facility that is smaller than a public warehouse.
Blanket Order
* See Blanket Purchase Order
Blanker Purchase Order
A long-term commitment to a supplier for material against which short-term releases will be generated to satisfy requirements. Oftentimes, blanket orders cover only one item with predetermined delivery dates. Synonyms: Blanket Order, Standing Order
Blanker Release
The authorization to ship and/or produce against a blanket agreement or contract
A business or individual purchases a guarantee of payment from a bonding/surety company for possible mistakes the individual or business might make.
Bonded Warehouse
 Warehouse approved by the Treasury Department and under bond/guarantee for observance of revenue laws. Used for storing goods until duty is paid or goods are released in some other proper manner.
The act of requesting space and equipment aboard a vessel for cargo which is to be transported.
 A constraint, obstacle, or planned control that limits throughput or the utilization of capacity.
An enclosed railcar used to transport freight
To secure a shipment inside a carrier's vehicle to prevent damage
There are 3 definitions for the term "broker": 1) an enterprise that owns and leases equipment2) an enterprise that arranges the buying & selling of transportation of, goods, or services 3) a ship agent who acts for the ship owner or charterer in arranging charters.
Business Performance Measurement (BPM)
A technique that uses a system of goals and metrics to monitor performance. Analysis of these measurements can help businesses periodically set business goals, then provide feedback to managers on progress towards those goals. A specific measure can be compared to itself over time, compared with a present target, or evaluated along with other measures.
Business-to-Business (B2B)
As opposed to business-to-consumer (B2C). Many companies are now focusing on this strategy, and their web sites are aimed at businesses (think wholesale) and only other businesses can access or buy products on the site. Internet analysts predict this will be the biggest sector on the web.
Business-to-Consumer (B2C)
The hundreds of e-commerce web sites that sell goods directly to consumers are considered B2C. This distinction is important when comparing web sites that are B2B as the entire business model, strategy, execution, and fulfillment is different.


 A federal law that requires coastal and inter-coastal traffic to be carried in U.S.-built and registered ships.
Calendar Days
The conversion of working days to calendar days is based on the number of regularly scheduled workdays per week in your manufacturing calendar. Calculation: To convert from working days to calendar days: if work week = 4 days, multiply by 1.75; = 5 days, multiply by 1.4; = 6 days, multiply by 1.17
The physical facilities, personnel, and processes available to meet the product or service needs of customers. Capacity generally refers to the maximum output or producing ability of a machine, a person, a process, a factory, a product, or a service. Also see: Capacity Management
Cargo Agents Reservation Air Waybill Issuance and Tracking
Carmack Amendment
An Interstate Commerce Act amendment that delineates the liability of common carriers and the bill of lading provisions.
A Customs document permitting the holder to carry or send special categories of goods temporarily into certain foreign countries without paying duties or posting bonds.
the transporting of items or merchandise from one place to another
Carriage and Insurance Paid To (CIP)
 The seller is responsible for arranging carriage to the named place, and also for insuring the goods. As with CPT, delivery of the goods takes place, and risk transfers from seller to buyer, at the point where the goods are taken in charge by a carrier
Carriage Paid To (CPT)
The seller is responsible for arranging carriage to the named place, but not for insuring the goods to the named place.  However delivery of the goods takes place, and risk transfers from seller to buyer, at the point where the goods are taken in charge by a carrier
 A firm that transports goods or people via land, sea, or air.
Carrier Certificate and Relaease Order
 Used to advise customs of the shipment's details. By means of this document, the carrier certifies that the firm or individual named in the certificate is the owner or consignee of the cargo.
Carrier Liability
 A common carrier is liable for all shipment loss, damage, and delay with the exception of that caused by act of God, act of a public enemy, act of a public authority, act of the shipper, and the goods' inherent nature.
 There are two definitions for this term: 1) charge for pick-up and delivery of goods 2) movement of goods locally (short distances).
Cash In Advance (CIA)
 A method of payment for goods whereby the buyer pays the seller in advance of shipment of goods.
Cash with Order (CWO)
A method of payment for goods where cash is paid at the time of order, and the transaction becomes binding on both buyer and seller.
Central Dispatching
The organization of the dispatching function into one central location. This structure often involves the use of data collection devices for communication between the centralized dispatching function which usually reports to the production control department and the shop manufacturing departments.
Certificate of Compliance
 A supplier's certification that the supplies or services in question meet specified requirements.
Certificate of Insurance
 A negotiable document indicating that insurance has been secured under an open policy to cover loss or damage to a shipment while in transit.
Certificate of Origin
A document containing an affidavit to prove the origin of imported goods. Used for customs and foreign exchange purposes.
Certificate of Public Convenience and Necessity
The grant of operating authority that common carriers receive. A carrier must prove that a public need exists and that the carrier is fit, willing, and able to provide the needed service. The certificate may specify the commodities the carrier may haul, and the routes it may use.
Certificated Carrier
A for-hire air carrier that is subject to economic regulation and requires an operating certification to provide service
Channels of Distribution
Any series of firms or individuals that participates in the flow of goods and services from the raw material supplier and producer to the final user or consumer. Also see:  Distribution Channel.
Chargeable Weight
The shipment weight used in determining freight charges. The chargeable weight may be the dimensional weight or, for container shipments, the gross weight of the shipment less the tare weight of the container.
When a buyer disputes a purchase and gets refunded the amount.
A specialized framework that carries a rail or marine container
City Driver
A motor carrier driver who drives a local route as opposed to a long-distance, intercity route.
Carload rail service requiring shipper to meet minimum weight.
 A charge made against a carrier for loss, damage, delay, or overcharge.
Class I Carrier
A classification of regulated carriers based upon annual operating revenues -- motor carriers of property; $5 million; railroads; $50 million; motor carriers of passengers; $3 million.
Class II Carrier
A classification of regulated carriers based upon annual operating revenues -- motor carriers of property: $1-$5 million; railroads: $10-$50 million; motor carriers of passengers: $3 million.
Class III Carrier
A classification of regulated carriers based upon annual operating revenues -- motor carriers of property: $1 million; railroads $10 million.
Class Rates
A grouping of goods or commodities under one general heading. All the items in the group make up a class. The freight rates that apply to all items in the class are called "class rates."
A document stating that a shipment is free to be imported into the country after all legal requirements have been met.
Council of Logistics Management, now known as The Council of Supply Chain Management Professionals.
Coastal Carriers
 Water carriers that provide service along coasts serving ports on the Atlantic or Pacific Oceans or on the Gulf of Mexico.
A numeric, or alphanumeric representation of text for exchanging commonly-used information. For example: commodity codes, carrier codes.
See Container on Flat Car
Collect Freight
Freight payable to the carrier at the port of discharge or ultimate destination. The consignee does not pay the freight charge if the cargo does not arrive at the destination.
Collective Paper
All documents (commercial invoices, bills of lading, etc.) submitted to a buyer for the purpose of receiving payment for a shipment.
Commercial Invoice
A document created by the seller. It is an official document which is used to indicate, among other things, the name and address of the buyer and seller, the product(s) being shipped, and their value for customs, insurance, or other purposes.
Common Carrier
Transportation available to the public that does not provide special treatment to any one party and is regulated as to the rates charged, the liability assumed, and the service provided. A common carrier must obtain a certificate of public convenience and necessity from the Federal Trade Commission for interstate traffic. Antonym: Private Carrier.
Common Carrier Duties
Any series of firms or individuals that participates in the flow of goods and services from the raw material supplier and producer to the final user or consumer. Also see:  Distribution Channel.
Competitive Bid
A price/service offering by a supplier that must compete with offerings from other suppliers.
With regards to EDI, a formal notice (by message or code) from a electronic mailbox system or EDI server indicating that a message sent to a trading partner has reached its intended mailbox or has been retrieved by the addressee.
The party to whom goods are shipped and delivered. The receiver of a freight shipment.
(1) A shipment that is handled by a common carrier. (2) The process of a supplier placing goods at a customer location without receiving payment until after the goods are used or sold. Also see: Consignment Inventory
Consignment Inventory
(1) Goods or products that are paid for when they are sold by the reseller, not at the time they are shipped to the reseller. (2) Goods or products which are owned by the vendor until they are sold to the consumer.
The party who originates a shipment of goods (shipper). The sender of a freight shipment, usually the seller.
An enterprise that provides services to group shipments, orders, and/or goods to facilitate movement.
(1) A box, typically 10 to 40 feet long, which is primarily used for ocean freight shipments. For travel to and from ports, containers are loaded onto truck chassis or on railroad flatcars. (2) The packaging, such as a carton, case, box, bucket, drum, bin, bottle, bundle, or bag, that an item is packed and shipped in.
Container Chassis
 A vehicle built for the purpose of transporting a container so that, when a container and chassis are assembled, the produced unit serves as a road trailer.
 An agreement between two or more competent persons or companies to perform or not to perform specific acts or services or to deliver merchandise. A contract may be oral or written. A purchase order, when accepted by a supplier, becomes a contract. Acceptance may be in writing or by performance, unless the purchase order requires acceptance in writing.
Contract Carrier
A for-hire carrier that does not serve the general public but serves shippers with whom the carrier has a continuing contract. The contract carrier must secure a permit to operate.
Container Terminal
a docking, unloading and loading area within a port designed to suit the sizes and needs of container ships.
Contract of Affreightment
A contract between a cargo shipper and carrier for the transport of multiple cargoes over a period of time. Contracts are individually negotiated and usually include cargo description, quantities per shipment and in total, load and discharge ports, freight rates and duration of the contract.
The application used to describe the function of a vehicle of transfer.
Coordinated Transportation
Two or more carriers of different modes transporting a shipment.
Cost and Freight (CAF
In practice it should be used for situations where the seller has direct access to the vessel for loading, e.g. bulk cargos or non-containerised goods. Seller arranges and pays for transport to named port. Seller delivers goods, cleared for export, loaded on board the vessel.However risk transfers from seller to buyer once the goods have been loaded on board, i.e. before the main carriage takes place. Note seller is not responsible for insuring the goods for the main carriage. For containerised goods, consider ‘Carriage Paid To CPT’ instead.
A materials handling device that lifts heavy items. There are two types: bridge and stacker.
Cross Docking
A distribution system in which merchandise received at the warehouse or distribution center is not put away, but instead is readied for shipment to retail stores. Cross docking requires close synchronization of all inbound and outbound shipment movements. By eliminating the put-away, storage, and selection operations, it can significantly reduce distribution costs.
Crosss Shipment
Material flow activity where materials are shipped to customers from a secondary shipping point rather than from a preferred shipping point.
Cube Out
The situation when a piece of equipment has reached its volumetric capacity before reaching the permitted weight limit.
Cube Utilization
 In warehousing, a measurement of the utilization of the total storage capacity of a vehicle or warehouse.
Cubic Capacity
a minimum linehaul rate for shipments based on the space they occupy
Cubic Pace
In warehousing, a measurement of space available, or required, in transportation and warehousing.
Customer Entered Dimensions
The length, width, height and weight of the shipment entered by the customer when creating a shipping label
The authorities designated to collect duties levied by a country on imports and exports.
Customs Automated Data Exchange Sysdem (CADEX)
A Canada Customs system that allows for the electronic transmission of import data for goods that have already been released. Additional information such as accounting data and release notifications are also accessible.
Customs Broker
A firm that represents importers/exporters in dealings with customs. Normally responsible for obtaining and submitting all documents for clearing merchandise through customs, arranging inland transport, and paying all charges related to these functions.
Customs Clearance
The act of obtaining permission to import merchandise from another country into the importing nation.
Customs Invoice
A document that contains a declaration by the seller, the shipper, or the agent as to the value of the shipment.
Customs Value
The value of the imported goods on which duties will be assessed.
The abbreviation for hundredweight, which is the equivalent of 100 pounds. See Hundredweight.


Dangerous Goods
Articles or substances capable of posing a significant risk to health, safety, or property, and that ordinarily require special attention when transported. See also Hazardous Goods.
Daily Rates
Dead on Arrival (DOA)
A term used to describe products which are not functional when delivered. Synonym: Defective.
Declaration of Dangerous Goods
To comply with the U.S. regulations, exporters are required to provide special notices to inland and ocean transport companies when goods are hazardous.
Declared Value for Carriage
The value of the goods, declared by the shipper on a bill of lading, for the purpose of determining a freight rate or the limit of the carrier's liability.
An enterprise that provides services to un-group shipments, orders, goods, etc., to facilitate distribution.
Delivered at Place (DAP)
The seller is responsible for arranging carriage and for delivering the goods, ready for unloading from the arriving conveyance, at the named place.   (An important difference from Delivered At Terminal DAT, where the seller is responsible for unloading.) Risk transfers from seller to buyer when the goods are available for unloading; so unloading is at the buyer’s risk. The buyer is responsible for import clearance and any applicable local taxes or import duties
Delivered at Terminal (DAT)/Delivered at Place Unloaded (DPU)
The seller is responsible for arranging carriage and for delivering the goods, unloaded from the arriving conveyance, at the named place. Risk transfers from seller to buyer when the goods have been unloaded.‘Terminal’ can be any place – a quay, container yard, warehouse or transport hub. The buyer is responsible for import clearance and any applicable local taxes or import duties
Delievered Duty Paid (DDP)
The seller is responsible for arranging carriage and delivering the goods at the named place, cleared for import and all applicable taxes and duties paid (e.g. VAT, GST). Risk transfers from seller to buyer when the goods are made available to the buyer, ready for unloading from the arriving conveyance. This rule places the maximum obligation on the seller, and is the only rule that requires the seller to take responsibility for import clearance and payment of taxes and/or import duty.
Delivery Appointment
The time agreed upon between two enterprises for goods or transportation equipment to arrive at a selected location.
Delivery Area Surcharge/DAS
DAS or Delivery Area Surcharge is a per carton fee charged by our small parcel carriers for deliveries to higher cost-to-serve zip codes. (Service to and from less populated or less accessible domestic areas carries higher operating costs.) ... The charge applies to both small parcel ground and air shipments. There are 23,529 Domestic DAS and DAS Extended zip codes affected by this surcharge.
Delivery Area Surcharge Residential/DAS Resi
DAS or Delivery Area Surcharge is a per carton fee charged by our small parcel carriers for deliveries to higher cost-to-serve zip codes. (Service to and from less populated or less accessible domestic areas carries higher operating costs.) The actual per carton charge is based on whether the delivery is going to a commercial or residential destination and varies by carrier.
Delivery Commitment
The delivery commitment for the carrier for that shipment, taking into account the commodity being shipped, date of shipment, destination,
Delivery Instructions
A document issued to a carrier to pick up goods at a location anddeliver them to another location. See also Delivery Order
Delivery Order
A document issued by the customs broker to the ocean carrier as authority to release the cargo to the appropriate party.
Delivery Scan
Carriers use a handheld Mobile Delivery Device (MDD) to scan and transmit package tracking data. MDDs use a cellular network and Global Positioning System (GPS) technology to obtain real-time delivery tracking and location information.
De Minimis
In international shipping, de minimis is the threshold set by countries under which no customs duties or taxes are applied to goods.How small is too small? When it comes to international trade, the answer will differ from country to country.
The carrier charges and fees applied when rail freight cars and ships are retained beyond a specified loading or unloading time. Also see: Detention, Express.
A physical characteristic measuring a commodity's mass per unit volume or pounds per cubic foot; an important factor in ratemaking, since density affects the utilization of a carrier's vehicle.
Density Rate
Single, integrated agency focused on protecting the American people and their homeland.
The location designated as a receipt point for goods/shipment.
The carrier charges and fees applied when rail freight cars and ships are retained beyond a specified loading or unloading time. Also see: Demurrage.
The unloading of cargo from a container or other piece of equipment. See Stripping.
* See Duty Free Zone
A discount offered by a carrier that faces a service time disadvantage over a route.
Dimensional Weight
Dimensional Weight is a calculation of the shipment's weight based on its volumetric standard instead of it acutal weight. Dimensional Weight is calcualted by multiplying the length by width by height of each package in inches or centimeters and dividing by a dimensional weight divisor. The Dimensional Weight Divisor varies by service offering and unit of measure (Inches or centimeters).
Enter the length, width, and height of the package. Package dimensions must be at least 1 inch/cm for Length, 1 inch/cm for Width, 1 inch/cm for Height.
Discharge Port
The name of the port where the cargo is unloaded from the export vessel. This is the port reported to the U.S. Census on the Shipper's Export Declaration, Schedule K, which is used by U.S. companies when exporting. This can also be considered the first discharge port.
Shipping services offered at a reduced price.
Shipper, Carrier disputes show-up as differences in invoices, weight and or classification of shipment(s).
Distance Based Pricing
Distance-Based Pricing (also called Pay-As-You-Drive, Mileage-Based and Per-Mile pricing) means that vehicle charges are based on the amount a vehicle is driven during a time period
Distribution Center (DC)
The warehouse facility which holds inventory from manufacturing pending distribution to the appropriate stores.
The papers attached or pertaining to goods requiring transportation and/or transfer of ownership.
Door to Door
The through-transport of goods from consignor to consignee.
Door to Port
The through transport service from consignor to port of importation.
Double Bottoms
A motor carrier operation that involves one tractor pulling two trailers.
Double trucks are two 28-foot trailers that are pulled by one tractor. Doubles also are known as "double bottoms."
The service offered by a motor carrier for pick-up and delivery of ocean containers or rail containers. Drayage agents usually handle full-load containers for ocean and rail carriers.
Drop Shipping
a supply chain method in which the seller does not own or stock the goods for sale. Instead, the goods are stored and shipped to the buyer by someone else. This may be the manufacturer, a wholesaler, or a distributor. It may even be another retailer.
Driving Time Regulations
U.S. Department of Transportation rules that limit the maximum time a driver may drive in interstate commerce; the rules prescribe both daily and weekly maximums.
Dual Operation
A motor carrier that has both common and contract carrier operating authority.
The packing material used to protect a product from damage during transport.
A tax imposed by a government on merchandise imported from another country.
Duty Drawback
A refund of duty paid on imported merchandise when it is exported later, whether in the same or a different form.
Duty Free Zone (DFZ)
An area where goods or cargo can be stored without paying import customs duties while awaiting manufacturing or future transport.


Earned Discount
 Revenue-based incentives were established to incentivize shippers to increase their shipping spend with a particular carrier. These discounts are built on top of a shipper’s “base discounts”, pre-established fixed discounts that stay the same regardless of how much you spend with the carrier.
EDI Interchange
Communication between partners in the form of a structured set of messages and service segments starting with an interchange control header and ending with an interchange control trailer. In the context of X.400 EDI messaging, the contents of the primary body of an EDI message.
Electronic Data Interchange (EDI)
Intercompany, computer-to-computer transmission of business information in a standard format. For EDI purists, computer to computer means direct transmission from the originating application program to the receiving or processing application program. An EDI transmission consists only of business data, not any accompanying verbiage or free-form messages. Purists might also contend that a standard format is one that is approved by a national or international standards organization, as opposed to formats developed by industry groups or companies.
A prohibition upon exports or imports, either with specific products or specific countries.
Exempt Carrier
A for-hire carrier that is free from economic regulation. Trucks hauling certain commodities are exempt from Interstate Commerce Commission economic regulation. By far, the largest portion of exempt carriers transports agricultural commodities or seafood.
(1) Moving shipments through regular channels at an accelerated rate. (2) To take extraordinary action because of an increase in relative priority. Synonym: Stock chase
To send goods and services to another country.
Export Declaration
A document required by the U.S. Treasury department and completed by the exporter to show the value, weight, consignee, destination, etc., pertinent to the export shipment. The document serves two purposes: to gather trade statistics and to provide a control document if the goods require a valid export license.
Export License
A document secured from a government authorizing an exporter to export a specific quantity of a controlled commodity to a certain country. An export license is often required if a government has placed embargoes or other restrictions upon exports.
(1) Carrier payment to its customers when ships, rail cars, or trailers are unloaded or loaded in less than the time allowed by contract and returned to the carrier for use. See Demurrage, Detention. . (2) The use of priority package delivery to achieve overnight or second-day delivery.
Ex Works (EXW)
This rule places minimum responsibility on the seller, who merely has to make the goods available, suitably packaged, at the specified place, usually the seller’s factory or depot. The buyer is responsible for loading the goods onto a vehicle (even though the seller may be better placed to do this); for all export procedures; for onward transport and for all costs arising after collection of the goods.


* See Forth Party Logistics (4PL)
5-S Program
A program for organizing work areas. Sometimes referred to as elements, each of the five components of the program begins with the letter "S." They include sort, systemize, shine or sweep, standardize, and sustain. In the UK, the concept is converted to the 5-C program comprising five comparable components: clear out, configure, clean and check, conformity, and custom and practice. * Sort - get rid of clutter; separate out what is needed for the operations. * Systemize/Set in Order - organize the work area; make it easy to find what is needed. * Shine - clean the work area; make it shine.* Standardize - establish schedules and methods of performing the cleaning and sorting. * Sustain - implement mechanisms to sustain the gains through involvement of people, integration into the performance measurement system, discipline, and recognition. The 5-S program is frequently combines with precepts of the Lean Manufacturing Initiative. Even when used separately, however, the 5-S (or 5-C) program is said to yield excellent results. Implementation of the program involves introducing each of the five elements in order, which reportedly generates multiple benefits, including product diversification, higher quality, lower costs, reliable deliveries, improved safety, and higher availability rate.
The physical plant, distribution centers, service centers, and related equipment.
Federal Aviation Administration
The federal agency that administers federal safety regulations governing air transportation.
Federal Maritime Commission
Regulatory agency responsible for rates and practices of ocean carriers shipping to and from the United States.
Forty-foot equivalent unit, a standard size intermodal container.
* See First In First Out.
Final Destination
The last stopping point for a shipment.
First In First Out (FIFO)
In inventory control and financial accounting, this refers to the practice of using stock from inventory on the basis of what was received first and is consumed first. Antonym: Last In First Out.
A flatbed, also called a haul brite, is a type of trailer on a truck that consists of a floor and no enclosure.
Flexible-Path Equipment
Materials handling devices that include hand trucks and forklifts.
Flight Number
An identifier associated with the air equipment (plane). Typically a combination of two letters, indicating the airline, and three or four digits indicating the number of the voyage.
The time required for documents, payments, etc. to get from one trading partner to another.
Flow Rack
A storage method where product is presented to picking operations at one end of a rack and replenished from the opposite end.
A term of sale defining who is to incur transportation charges for the shipment, who is to control the shipment movement, or where title to the goods passes to the buyer; originally meant "free on board ship." See Free on Board.
FOB Destination
Title passes at destination, and seller has total responsibility until shipment is delivered.
FOB Origin
Title passes at origin, and buyer has total responsibility over the goods while in shipment.
Food and Drug Administration (FDA)
U.S. agency responsible for protecting the public health by assuring the safety, efficacy, and security of human and veterinary drugs, biological products, the U.S.’s food supply, medical devices, cosmetics, and products that emit radiation.
An estimate of future demand. A forecast can be constructed using quantitative methods, qualitative methods, or a combination of methods, and can be based on extrinsic (external) or intrinsic (internal) factors. Various forecasting techniques attempt to predict one or more of the four components of demand: cyclical, random, seasonal, and trend.
A carrier that provides transportation service to the public on a fee basis.
Forklift Truck
A machine-powered device used to raise and lower freight and to move freight to different warehouse locations.
Forwarder's Bill of Lading
Free Along Side (FAS)
The seller agrees to deliver the goods to the dock alongside the overseas vessel that is to carry the shipment. The seller pays the cost of getting the shipment to the dock; the buyer contracts the carrier, obtains documentation, and assumes all responsibility from that point forward.
Free Alongside Ship
A term of sale indicating that the seller is liable for all changes and risks until the goods sold are delivered to the port on a dock that will be used by the vessel. Title passes to the buyer when the seller has secured a clean dock or ship's receipt of goods.
Free Carrier (FCA)
A very flexible rule that is suitable for all situations where the buyer arranges the main carriage. In all cases, the seller is responsible for export clearance; the buyer assumes all risks and costs after the goods have been delivered at the named place. FCA is the rule of choice for containerised goods where the buyer arranges for the main carriage.
Free on Board (FOB)
Contractual terms between a buyer and a seller that define where title transfer takes place.
Free Time
The period of time allowed for the removal or accumulation of cargo before charges become applicable.
Goods being transported from one place to another.
Freight Bill
The carrier's invoice for payment of transport services rendered.
Freight Carriers
Companies that haul freight, also called "for-hire" carriers. Methods of transportation include trucking, railroads, airlines, and sea borne shipping.
Freight Charge
The rate established for transporting freight.
Freight Collect
The freight and charges to be paid by the consignee.
Freight Consolidation
The grouping of shipments to obtain reduced costs or improved utilization of the transportation function. Consolidation can occur by market area grouping, grouping according to scheduled deliveries, or using third party pooling services such as public warehouses and freight forwarders.
Freight Forwarder
An organization which provides logistics services as an intermediary between the shipper and the carrier, typically on international shipments. Freight forwarders provide the ability to respond quickly and efficiently to changing customer and consumer demands and international shipping (import/export) requirements.
Freight Forwarders Institute
The freight forwarder industry association.
Freight Prepaid
The freight and charges to be paid by the consignor.
Freight Quotation
A quotation from a carrier or forwarder covering the cost of transport between two specified locations.
Freight Rates
The charge made by a shipping line for the transportation of freight aboard one of its ships from one place to another.
The first leg of the truck trip that involves hauling a load or several loads to targeted destinations.
Fuel Surcharge/FSC
A fuel surcharge (FSC) is a fee assessed by a carrier to account for regional / seasonal variations in fuel costs. A fuel surcharge is most often seen in trucking, but an ocean or air carrier may also assess a fuel surcharge. A fuel surcharge helps protect the carrier from the volatility of fuel prices
The act of fulfilling a customer order. Fulfillment includes order management, picking, packaging, and shipping.
Full Containerload (FCL)
A term used when goods occupy a whole container.
Full Truckload (FTL)
Same as Full Containerload, but in reference to motor carriage instead of containers.


General Agrteement on Tariffs and Trade (GATT)
A multilateral trade agreement aimed at expanding international trade as a means of raising world welfare.
General -Commodities Carrier
A common motor carrier that has operating authority to transport general commodities, or all commodities not listed as special commodities.
General Order (GO)
A customs term referring to a warehouse where merchandise not entered within five working days after the carrier's arrival is stored at the risk and expense of the importer.
Globbal Positioning Systems (GPS)
A system which uses satellites to precisely locate an object on earth. Used by trucking companies to locate over-the-road equipment.
A railcar with a flat platform and sides three to five feet high, used for top loading long, heavy items.
A term associated with more than one definition: 1) Common term indicating movable property, merchandise, or wares. 2) All materials which are used to satisfy demands. 3) Whole or part of the cargo received from the shipper, including any equipment supplied by the shipper.
Governmenr Bill of Ladinig (GB/L)
The bill of lading used for shipments made by U.S. Government agencies.
* See Global Positioning System
Grandfather Clause
A provision that enabled motor carriers engaged in lawful trucking operations before the passage of the Motor Carrier Act of 1935 to secure common carrier authority w/o proving public convenience and necessity; a similar provision exists for other modes.
Granger Laws
State laws passed before 1870 in Midwestern states to control rail transportation.
Great Lakes Carriers
Water carriers that operate on the five Great Lakes.
Gross Margin
The difference between total revenue and the cost-of-goods sold. Synonym: Gross Profit Margin.
Gross Weight
The total weight of the vehicle and the payload of freight or passengers.
Guaranteed Service Refund/GSR
Guaranteed service refunds are a normal part of the parcel industry. Just like you have insurance on your phone or your car, a guaranteed service refund is essentially insurance on your parcel shipments with FedEx and UPS. A guaranteed service refund is essentially a money back guarantee for parcel shipping
European Guidelines for Trade Data Interchange.
Global Tracking Identification Number or Global Trade Item Number. GTIN is the globally-unique EAN.UCC System identification number, or key, used for trade items (products and services). It's used for uniquely identifying trade items (products and services) sold, delivered, warehoused, and billed throughout the retail and commercial distribution channels. Unlike a UPC number, which only provides information specific to a group of products, the GTIN gives each product its own specific identifying number, giving greater accuracy in tracking. Also see: EPC.


Handling Costs
The cost involved in moving, transferring, preparing, and otherwise handling inventory.
Harmonized Commodity Description & Coding Systme (Harmonnized Code)
An international classification system that assigns identification numbers to specific products. The coding system ensures that all parties in int'l. trade use a consistent classification for the purposes of documentation, statistical control, and duty assessment.
The inland transport service which is offered by the carrier under the terms and conditions of the tariff and of the relative transport document.
Hawthorne Effect
From a study conducted at the Hawthorne Plant of Western Electric Company from 1927-1932 which found that the act of showing people that you are concerned usually results in better job performance. Studying and monitoring of activities are typically seen as being concerned and results in improved productivity.
Hazardous Goods
Articles or substances capable of posing a significant risk to health, safety, or property, and that ordinarily require special attention when transported. Also called Dangerous Goods.
Hazardous Material
A substance or material which the Department of Transportation has determined to be capable of posing a risk to health, safety, and property when stored or transported in commerce.
Usually refers to a forklift truck on which the operator must stand rather than sit.
Highway Trust Fund
A fund into which highway users (carriers and automobile operators) pay; the fund pays for federal government's highway construction share.
Highway Use Tazes
Taxes that federal and state governments assess against highway users (the fuel tax is an example). The government uses the use tax money to pay for the construction, maintenance, and policing of highways.
Hopper Cars
Railcars that permit top loading and bottom unloading of bulk commodities; some hopper cars have permanent tops with hatches to provide protection against the elements.
An individual employed to move trucks and trailers within a terminal or warehouse yard area.
House Air Waybill (HAWB)
A bill of lading issued by a forwarder to a shipper as a receipt for goods that the forwarder will consolidate with cargo from other shippers for transport.
1) A large retailer or manufacturer having many trading partners. 2) A reference for a transportation network as a "hub and spoke" which is common in the airline and trucking industry. For example, a hub airport serves as the focal point for the origin and termination of long-distance flights where flights from outlying areas are fed into the hub airport for connecting flights. 3) A common connection point for devices in a network. 4) A web "hub" is one of the initial names for what is now known as a "portal." It came from the creative idea of producing a web site which would contain many different "portal spots" (small boxes that looked like ads with links to different, yet related content). This content, combined with Internet technology, made the idea a milestone in the development and appearance of web sites, primarily due to the ability to display a lot of useful content and store one's preferred information on a secured server. The web term "hub" was replaced with portal. 5) An Internet web site that provides a central repository for data or a central planning capability in an industry or supply network.
Hub Airport
An airport that serves as the focal point for the origin and termination of long-distance flights; flights from outlying areas meet connecting flights at the hub airport.
Hundredweight (CWT)
A pricing unit used in transportation (equal to 100 pounds).


Interstate Commerce Commission (U.S.).
Pallets and containers used in air transportation; the igloo shape fits the internal wall contours of a narrow-body airplane.
* See International Maritime Bureau (IMB)
* See International Maritime Organization (IMO)
Movement of products from one country into another. The import of automobiles from Germany into the US is an example.
Importation Point
The location where goods will be cleared for importation into a country.
Importer of Record (IOR)
The owner or purchaser of the goods; or when designated by the owner, purchaser, or consignee, a licensed broker
Import/Export License
Official authorization issued by a government allowing the shipping or delivery of a product across national boundaries.
In Bond
Goods are held or transported In-Bond under customs control either until import duties or other charges are paid, or to avoid paying the duties or charges until a later date.
Incentive Credit
A percentage discount from the applicable carrier ates in effect at the time of shipping
Incentive Rate
A rate that induces the shipper to ship heavier volumes per shipment.
International terms of sale developed by the International Chamber of Commerce to define sellers' and buyers' responsibilities.
Inland Bill of Ladinig
The carriage contract used in transport from a shipping point overland to the exporter's international carrier location.
Inland Carrier
An enterprise that offers overland service to or from a point of export.
A system of protection against loss under which a number of parties agree to pay certain sums (premiums) for a guarantee that they will be compensated under certain conditions for specified loss and damage.
Insurance Certificate
A document issued to the consignee to certify that insurance is provided to cover loss of or damage to the cargo while in transit.
Integrated Carrier
An airfreight company that offers a blend of transportation services such as air carriage, freight forwarding, and ground handling.
Intercoastal Carriers
Water carriers that transport freight between East and West Coast ports, usually by way of the Panama Canal.
Two or more motor carriers working together to haul a shipment to a destination. Carriers may interchange equipment but usually they rehandle the shipment without transferring the equipment.
Intermediate Destination
A stopping point for a shipment prior to the final destination.
a system whereby standard-sized cargo containers can be moved seamlessly between different 'modes' of transport, typically specially adapted ships known as containerships, barges, trucks and trains. Because the cargo does not need to be unloaded from the container every time it is moved from one mode to the other it is a very efficient and fast system of transportation
Intermodal Container Transfer Facility
A facility where cargo is transferred from one mode of transportation to another, usually from ship or truck to rail.
Intermodal Transportation
Transporting freight by using two or more transportation modes, such as by truck and rail or truck and oceangoing vessel.
Internal Water Carriers
Water carriers that operate over internal, navigable rivers such as the Mississippi, Ohio, and Missouri.
Internation Air Transport Association
An international air carrier rate bureau for passenger and freight movements.
Internation Standards Organization (ISO)
An organization within the United Nations to which all national and other standard-setting bodies (should) defer. Develops and monitors international standards, including OSI, EDIFACT, and X.400.
Interstate Commerce
The transportation of persons or property between states; in the course of the movement, the shipment crosses a state boundary.
Interstate Commerce Commission (ICC)
An independent regulatory agency that implements federal economic regulations controlling railroads, motor carriers, pipelines, domestic water carriers, domestic surface freight forwarders, and brokers.
Interstate System
The National System of Interstate and Defense Highways, 42,000 miles of four-lane, limited-access roads connecting major population centers.
Intrastate Commerce
The transportation of persons or property between points within a state. A shipment between two points within a state may be interstate if the shipment had a prior or subsequent move outside of the state and the shipper intended an interstate shipment at time of shipment.
Inventory in Transit
Inventory in a carrier's possession, being transported to the buyer.
A detailed statement showing goods sold or shipped and amounts for each. The invoice is prepared by the seller and acts as the document that the buyer will use to make payment.
Irregular Route Carrrier
A motor carrier that may provide service utilizing any route.
ISO 9000
A series of quality assurance standards compiled by the Geneva, Switzerland-based International Standards Organization. In the United States, ISO is represented by the American National Standards Institute based in Washington, DC.
Issuting Carrier
The carrier whose name is printed on the bill of lading and with whom the contract of carriage exists.
Any unique manufactured or purchased part, material, intermediate, sub-assembly, or product.


The concept of adding an element of human judgment to automated equipment. In doing this, the equipment becomes capable of discriminating against unacceptable quality, and the automated process becomes more reliable.
Just In Tiime (JIT)
An inventory control system that controls material flow into assembly and manufacturing plants by coordinating demand and supply to the point where desired materials arrive just in time for use. An inventory reduction strategy that feeds production lines with products delivered just in time. Developed by the auto industry, it refers to shipping goods in smaller, more frequent lots.
Just-in-Time Logistics (or Quick Response)
The process of minimizing the times required to source, handle, produce, transport, and deliver products in order to meet customer requirements.


A Japanese term for improvement - continuing improvement involving everyone - managers and workers. In manufacturing, kaizen relates to finding and eliminating waste in machinery, labor, or production methods. Also see: Continuous Process Improvement.
Japanese word for visible record, loosely translated means card, billboard, or sign. Popularized by Toyota Corporation, it uses standard containers or lot sizes to deliver needed parts to the assembly line just in time for use.
Key Performance Indicatory (KPI)
A measure which is of strategic importance to a company or department. For example, a supply chain flexibility metric is Supplier On-Time Delivery Performance which indicates the percentage of orders that fulfilled on or before the original requested date. Also see: Scorecard.


The cargo carried in a transportation vehicle.
Land Bridge
The movement of containers by ship-rail-ship on Japan-to-Europe moves; ships move containers to the U.S. Pacific Coast, rails move containers to an East Coast port, and ships deliver containers to Europe.
Landed Cost
Cost of product plus relevant logistics costs, such as transportation, warehousing, handling, etc. Also called Total Landed Cost of Net Landed Costs.
Large Package Surcharge (LPS)
Lash Barges
Covered barges that carriers load on board oceangoing ships for movement to foreign destinations.
LASH Vessel
A ship measuring at least 820 feet long with a deck crane able to load and unload barges through a stern section that projects over the water. The acronym LASH stands for Lighter (barge) Aboard Ship.
Last In First Out (LIFO)
In inventory control and financial accounting, this refers to the practice of using stock from inventory on the basis of what was received last is consumed first. This has limited use in stock keeping and is primarily a cost-accounting method.
Last Mile Delivery
Last mile delivery is the movement of goods from a transportation hub to its final delivery destination, whether a residential or commercial address. The mode of transportation will largely depend on the delivery area—what works for densely populated cities may not work well for remote locations.
Lead Logistics Provider (LLP)
An organization that organizes other third party logistics partners for outsourcing of logistics functions. Also see: Fourth Party Logistics.
Lead Shipment
Lead Time
The total time that elapses between an order's placement and its receipt. It includes the time required for order transmittal, order processing, order preparation, and transit.
A leg has an origin, destination, and carrier and is composed of all consecutive segments of a route booked through the same carrier. Also called Bookable Leg.
Less-Than-Carload (LCL)
Shipment that is less than a complete rail car load (lot shipment).
Less-Than Truckload (LTL)
Trucking companies that consolidate and transport smaller (less than truckload) shipments of freight utilizing a network of terminals and relay points.
Letter of Credit (LOC)
A method of payment for goods in which the buyer established his credit with a local bank, clearly describing the goods to be purchased, the price, the documentation required, and a time limit for completion of the transaction. Upon receipt of documentation, the bank is either paid by the buyer or takes title to the goods themselves and proceeds to transfer funds to the seller.
Lift on, Lft Off (LO/LO0
A method by which cargo is loaded onto and unloaded from an ocean vessel, which in this case is with a crane.
A barge-type vessel used to carry cargo between shore and cargo ship. While the terms barge and lighter are used interchangeably, a barge usually refers to a vessel used for a long haul, while a lighter is used for a short haul.
The cost of loading or unloading a vessel by means of barges.
Liner Service
International water carriers that ply fixed routes on published schedules.
List Rates
A rate that you would get if you did not have established pricing with a parcel carrier, or if you are a very small shipper. Published rates are non-discounted rates.
A situation in which the equipment operator stays with the trailer or boxcar while it is being loaded or unloaded.
Load Tender (Pick-Up Request)
An offer of cargo for transport by a shipper. Load tender terminology is primarily used in the motor industry.
Load Tendering
The practice of providing a carrier with detailed information and negotiated pricing (the tender) prior to scheduling pickup. This practice can help assure contract compliance and facilitate automated payments (self billing).
Lading Allowance
A reduced rate that carriers offer to shippers and/or consignees who load and/or unload LTL or Any Quantity shipments.
Loading Port
The port where the cargo is loaded onto the exporting vessel. This port must be reported on the Shipper's Export Declaration, Schedule D. Schedule D is used by U.S. companies when exporting to determine which tariff is used to freight rate the cargo for carriers with more than one tariff.
A daily record of the hours an interstate driver spends driving, off duty, sleeping in the berth, or on duty but not driving.
The process of planning, implementing, and controlling procedures for the efficient and effective storage of goods, services, and related information from the point of origin to the point of consumption for the purpose of conforming to customer requirements. This definition includes inbound, outbound, internal, and external movements.
Logistics Channel
The network of supply chain participants engaged in storage, handling, transfer, transportation, and communications functions that contribute to the efficient flow of goods.
Logistics Costs
The factors associated with the acquisition, storage, movement, and disposition of goods.
Lomé Convention
An agreement, first signed in 1975 and since updated, between the European Community, now the European Union (EU), and 70 African, Caribbean, and Pacific states (mostly former colonies of the EU members). The agreement covers some aid provisions as well as trade and tariff preferences for the African, Caribbean and Pacific countries/territories (ACP) when shipping to the EU. The most recent agreement expired in 2000, and is currently being renewed. Lomé grew out of the 1958 Treaty of Rome's "association" with the 18 African colonies/countries/territories that had ties with Belgium and France.
Long Ton
2,240 pounds.
LTL Shipment
A less-than-truckload shipment, one weighing less than the minimum weight a company needs to use the lower truckload rate.
When a driver assists with loading and unloading the trailer contents.


Major Carrier
A for-hire certificated air carrier that has annual operating revenues of $1 billion or more; the carrier usually operates between major population centers.
A document which describes individual orders contained within a shipment.
Manifested But Not Shipped Packages
When a packages need to be shipped, someone logs the request with the parcel carrier. A manifest document is created and included with the shipment. This document outlines all of the orders to be included in the shipment. The manifest includes the quantity, weight, and reference number of each box. What can and does happen quite often is that orders change after the manifest is created and billed.
Master Air Waybill (MAWB)
The bill of lading issued by air carriers to their customers.
Measurement Ton
Forty cubic feet; used in water transportation ratemaking.
Memorandum of Understanding (MOU)
A legal document describing an agreement between parties.
Micro-Land Bridge
An intermodal movement in which the shipment is moved from a foreign country to the U.S. by water and then moved across the U.S. by railroad to an interior, non-port city, or vice versa for exports from a non-port city.
Mileage Allowance
An allowance, based upon distance, that railroads give to shippers using private railcars.
Mini-Land Bridge
An intermodal movement in which the shipment is moved from a foreign country to the U.S. by water and then moved across the U.S. by railroad to a destination that is a port city, or vice versa for exports from a U.S. port city.
Minimum Average Package Weight Applied
This is the lowest per parcel weight applied to a shippers volume per the contracted agreement
Minimum Net Shipment Charge
The least charge for which a shipment will be handled
Minimum Weight
The shipment weight the carrier's tariff specifies as the minimum weight required to use the TL or CL rate; the rate discount volume.
Money Back Guarantee
 If a shipper's package was delayed and no delivery attempted on the promised date, you can get a full refund.
Motor Carrier
An enterprise that offers service via motor carriage.
Movement of Goods
The transfer of goods from one location to another.
Multiple Package Shipments
Multiple package shipments consist of Individual packages that may have different weights, dimensions and declared value but can be accepted on one waybill if the shipment destined to a single address.
Multipackage Shipment
A shipment that contains more than one package.
Multiweight Shipment
Combine multiple packages for the same destination in one shipment.


National Carrier
A for-hire certificated air carrier that has annual operating revenues of $75 million to $1 billion; the carrier usually operates between major population centers and areas of lesser population.
National Industrial Transportation League
An association representing shippers' and receivers' interests in matters of transportation policy and regulation.
National Motor Freight Classification (NMFC)
A tariff, which contains descriptions and classifications of commodities and rules for domestic movement by motor carriers in the US.
Negotiable BOL
Provides for the delivery of goods to a named enterprise or to their order (anyone they may designate), but only upon surrender of proper endorsement and the bill of lading to the carrier or the carrier's agents. Also known as an order bill of lading.
Nnet Weight
The weight of the merchandise, unpacked, exclusive of any containers.
No Delivery Scan
It usually means that the item is out for delivery but has not been delivered yet. When the driver reaches a location they scan the item and upon successful delivery confirm it as delivered and that is the delivery scan.
Non-Certified Carrier
A for-hire air carrier that is exempt from economic regulation.
Non-Negotiable BOL
Provides for the delivery of goods to a named enterprise and to no one else. Also known as a straight bill of lading.
Non Vessell Operatin Common Carrier (NVOCC)
A firm that offers the same services as an ocean carrier, but which does not own or operate a vessel. NVOCCs usually act as consolidators, accepting small shipments (LCL) and consolidating them into full container loads. They also consolidate and disperse international containers that originate at or are bound for inland ports. They then act as a shipper, tendering the containers to ocean common carriers. They are required to file tariffs with the Federal Maritime Commission and are subject to the same laws and statutes that apply to primary common carriers.
Notify Party
The name of an organization, or individual, that should be notified when a shipment reaches its destination.
Not Otherwise Specified/Not Elsewhere Specified
This term often appears in ocean or airfreight tariffs respectively. If no rate for the specific commodity shipped appears in the tariff, then a general class rate (for example: printed matter NES) will apply. Such rates usually are higher than rates for specific commodities.


Ocean Bill of Lading
The bill of lading issued by the ocean carrier to its customer.
Ocean Carrier
An enterprise that offers service via ocean (water) transport.
Utilizing an outsourcing service provider located in a country other than where the client is located.
Operating Differential Subsidy (ODS)
A payment to an American-flag carrier by the U.S. government to offset the difference in operating costs between U.S. and foreign vessels.
The process of making something as good or as effective as possible with given resources and constraints.
Order Picking
Assembling a customer's order from items in storage.
Order Processing
Activities associated with filling customer orders.
The place where a shipment begins its movement.
Origin Scan
Under most circumstance, it just tells us that the parcel info is received by the carrier but not the parcel itself
Outboud Logistics
The process related to the movement and storage of products from the end of the production line to the end user.
A data point that differs significantly from other data for a similar phenomenon. For example, if the average sales for a product were ten units per month, and one month the product had sales of 500 units, this sales point might be considered an outlier.
Over Maximum Limit Charge
Carriers have established specific weight and size limits for the packages sent through their delivery network. The limits pertain to individual packages. There are no limits to the total weight of your shipment or the total number of packages in your shipment. Packages that exceed the carrier's weight and size limits are subject to an Over Maximum Limits charge.
A motor carrier operation that reflects long-distance moves; the opposite of local operations.
A truck driver who owns and operates his/her tractor/trailer.


Pickup and delivery.
Packin List
A document containing information about the location of each Product ID in each package. It allows the recipient to quickly find the item he or she is looking for without a broad search of all packages. It also confirms the actual shipment of goods on a line item basis.
The platform which cartons are stacked on and then used for shipment or movement as a group. Pallets may be made of wood or composite materials.
Paller Wrapping Machine
A machine that wraps a pallet's contents in stretch-wrap to ensure safe shipment.
Parcel Shipment
Parcels include small packages like those typically handled by providers such as UPS and FedEx.
The transfer of money, or other agreed upon medium, for provision of goods or services.
Peak Season (in shipping)
A period of high demand for products, services and shipping capacity. Peak seasons vary among industries and geographies. Other variables include whether a company is positioned upstream or downstream in a manufacturing supply chain, and whether it sells to customers who buy for a business or for personal use. Ocean freight carriers typically experience demand peaks earlier than ground freight or parcel shipping.
Per Diem
A payment rate one railroad makes to use another's cars.
Performance Measures
Indicators of the work performed and the results achieved in an activity, process, or organizational unit. Performance measures should be both non-financial and financial. Performance measures enable periodic comparison and benchmarking. Also see: Performance Measurement Program.
Performance Pricing
A grant of authority to operate as a contract carrier.
A grant of authority to operate as a contract carrier.
The phrase “pick and pack” refers to a specific part of the supply chain management process during which the products a consumer ordered are taken down from warehouse or storage shelves and packed into a box for shipment alongside a packing slip, invoice, flyer, advertisement, and any other packing materials requested by the merchant.
The operations involved in pulling products from storage areas to complete a customer order.
Terminology used to describe a truck trailer being transported on a railroad flatcar.
A shipping term for the practice of combining shipment from multiple shippers into a truckload in order to reduce shipping charges.
A harbor where ships will anchor.
Port Authoriity
A state or local government that owns, operates, or otherwise provides wharf, dock, and other terminal investments at ports.
Port of Discharge
Port where vessel is off loaded.
Port of Entry
A port at which foreign goods are admitted into the receiving country.
Post of Loading
Port where cargo is loaded aboard the vessel.
Point of Shipment, or Point of Sale
A freight term which indicates that charges are to be paid by the shipper. Prepaid shipping charges may be added to the customer invoice, or the cost may be bundled into the pricing for the product.
Prepaid Freight
Freight paid by the shipper to the carrier when merchandise is tendered for shipment that is not refundable if the merchandise does not arrive at the intended destination.
Prior Notice (PN)
Prior Notice requirements include a set of data elements on food imports that must be filed electronically, using either the FDA website  or Automated Broker Interface (ABI).
Private Carrier
A carrier that provides transportation service to the firm that owns or leases the vehicles and does not charge a fee. Private motor carriers may haul at a fee for wholly owned subsidiaries.
Private Trucking Fleets
Private fleets serve the needs of their owners, and do not ordinarily offer commercial trucking services to other customers. Private fleets typically perform distribution or service functions.
A measure of resource utilization efficiency defined as the sum of the outputs divided by the sum of the inputs.
A type of quotation or offer that may be used when first negotiating the sales of goods or services. If the pro-forma is accepted, then the terms and conditions of the pro-forma may become the request.
Pro Number
Any progressive or serialized number applied for identification of freight bills, bills of lading, etc.
Proof of Delivery (POD)
Information supplied by the carrier containing the name of the person who signed for the shipment, the time and date of delivery and other shipment delivery-related information. POD is also sometimes used to refer to the process of printing materials just prior to shipment (Print on Demand).
Published Charge
The standard carrier billed shipping charges for services.
Purchase Order (PO)
The purchaser's authorization used to formalize a purchase transaction with a supplier. The physical form or electronic transaction a buyer uses when placing an order for merchandise.


Quality Control
The management function that attempts to ensure that the goods or services in a firm manufacturers or purchases meet the product or service specifications.
Quantitative Restrictions (QR)
Explicit limits, usually by volume, on the amount of a specified commodity that may be imported into a country/territory, sometimes also indicating the amounts that may be imported from each supplying country/territory. Compared to tariffs, the protection afforded by QRs tends to be more predictable, being less affected by changes in competitive factors. Quotas have been used at times to favor preferred sources of supply.
The quantity of goods that may be imported without restriction or additional duties or taxes.
An offer to sell goods at stated price and under stated terms.


Radio Frequency (RF)
A form of wireless communications that lets users relay information via electromagnetic energy waves from a terminal to a base station which is linked, in turn, to a host computer. The terminal can be placed at a fixed station, mounted on a forklift truck, or carried in a worker's hand. The base station contains a transmitter and receiver for communication with the terminal. RF systems use either narrow-band or spread-spectrum transmissions. Narrow-band data transmissions move along a single limited radio frequency, while spread-spectrum transmissions move across several different frequencies. When combines with a bar code system of identifying inventory items, a radio frequency system can relay data instantly, thus updating inventory records in so-called real time.
Radio Frequency Identification (RFID)
The use of radio frequency technology such as RFID tags and tag readers to identify objects. Objects may include virtually anything physical, such as equipment, pallets of stock, or even individual units of product.
Rated Weight
For a small package, the weight (higher of actual vs. dimensional), typically rounding up fractional pounds to the next higher pound, that a package's shipping charge is based upon.
Real Time
The processing of data in a business application as it happens, as contrasted with storing data for input at a later time (batch processing).
The function encompassing the physical receipt of material, the inspection of the shipment for conformance with the purchase order (quantity and damage), the identification and delivery to destination, and the preparation of receiving reports.
Receiving Dock
Distribution center location where the actual physical receipt of the purchased material from the carrier occurs.
Refrigerated Carriers
Truckload carriers designed to keep perishables good refrigerated. The food industry typically uses this type of carrier.
Request For Information (RFI)
A document used to solicit information about vendors, products, and services prior to a formal RFQ/RFP process.
Request for Proposal (RFP)
A document which provides information concerning needs and requirements for a manufacturer. This document is created in order to solicit proposals from potential suppliers. For example, a computer manufacturer may use an RFP to solicit proposals from suppliers of third party logistics services.
Request for Quote (RFQ)
A document used to solicit vendor responses when a product has been selected and price quotations are needed from several vendors.
Residential/Commercial Adjustments
The fact that a business is being operated from a location does not qualify it as a commercial address. Any business being operated from a home, apartment, or other dwelling where people live on the premises is considered to be a residential address. Commercial addresses are zoned as commercial real estate. Most commercial sites have tractor-trailer access and a loading dock. Carriers will adjust billing for inaccurate addressing.
Residential Surcharge
 “A residential delivery is one made to a home, including a business operating out of a home, which does not have an entrance that is open to the public. For each residential delivery, an additional charge per shipment applies.”
A business that takes title to products and resells them to final consumers. Examples include Wal-Mart, Best Buy, and Safeway, but also include the many smaller independent stores.
Return Goods Handling
Processes involved with returning goods from the customer to the manufacturer. Products may be returned because of performance problems or simply because the customer doesn't like the product.
Return Material Authorization or Return Merchandise Authorization (RMA)
A number usually produced to recognize and give authority for a faulty (perhaps) good to be returned to a distribution center or manufacturer. A form generally required with a warranty/return which helps the company identify the original product and the reason for the return. The RMA number often acts as an order form for the work required in repair situations, or as a reference for credit approval.
Return Product Authorization (RPA)
Also called Return Material or Goods Authorization (RMA or RGA). A form generally required with a warranty/return which helps the company identify the original product and the reason for the return. The RPA number often acts as an order form for the work required in repair situations or as a reference for credit approval.
Revenue Threshold
Shipping volume translates to revenue for the carriers. Carrieres incent shippers based on the revenue thresholds that they achieve.
Reverse Logistics
A specialized segment of logistics focusing on the movement and management of products and resources after the sale and after delivery to the customer. Includes product returns for repair and/or credit.
Routing or Routing Guide
(1) Process of determining how shipment will move between origin and destination. Routing information includes designation of carrier(s) involved, actual route of carrier, and estimate time en route. (2) Right of shipper to determine carriers, routes, and points for transfer shipments. (3) In manufacturing, this is the document which defines a process of steps used to manufacture and/or assemble a product.
Documented definitions of how work is to be performed.


1) How quickly and efficiently a company can ramp up to meet demand. 2) How well a solution to a problem will work when the size of the problem increases. The economies of scale don't really kick in until your reach the critical mass, then revenues start to increase exponentially.
A computer term referring to the action of scanning bar codes or RF tags.
Scenario Plannning
A form of planning in which likely sets of relevant circumstances are identified in advance, and used to assess the impact of alternative actions.
A performance measurement tool used to capture a summary of the key performance indicators (KPIs)/metrics of a company. Metrics dashboards/scorecards should be easy to read and usually have red, yellow, green indicators to flag when the company is not meeting its metrics targets. Ideally, a dashboard/scorecard should be cross functional in nature and include both financial and non-financial measures. In addition, scorecards should be reviewed regularly - at least on a monthly basis and weekly in key functions, such as manufacturing and distribution where activities are critical to the success of a company. The dashboard/scorecards philosophy can also be applied to external supply chain partners like suppliers to ensure that their objectives and practices align. Synonym: Dashboard
A repetitive pattern of demand from year to year (or other repeating time interval), with some periods considerably higher than others. Seasonality explains the fluctuation in demand for various recreational products which are used during different seasons.
Self Billing
A transportation industry strategy which prescribes that a carrier will accept payment based on the tender document provided by the shipper.
Self Correcting
A computer term for an online process that validates data and won't allow the data to enter the system unless all errors are corrected.
Service Level
A measure (usually expressed as a percentage) of satisfying demand through inventory or by the current production schedule in time to satisfy the customer's requested delivery dates and quantities.
Service Refund
Shippers are entitled for refunds when the carrier does not perform the delivery service as promised.
The party that tenders goods for transportation.
Shipper-carriers (also called private carriers) are companies with goods to be shipped that own or manage their own vehicle fleets. Many large retailers, particularly groceries and "big box" stores, are shipper-carriers.
The function that performs the tasks for the outgoing shipment of parts, components, and products. It includes packaging, marking, weighing, and loading for shipment.
Shipping Charge Correction/SCC
Carriers reserve the right to audit all parcels for accuracy in dimensions and weight. The carriers will "correctly bill the shipper which will be presented on the shipper's bill.
Shipping Lane
A predetermined, mapped route on the ocean that commercial vessels tend to follow between ports. This helps ships avoid hazardous areas. In general transportation, the logical route between the point of shipment and the point of delivery used to analyze the volume of shipment between two points.
Shipping Manifest
A document that lists the pieces in a shipment. A manifest usually covers an entire load regardless of whether the load is to be delivered to a single destination or many destinations. Manifests usually list the items, piece count, total weight, and the destination name and address for each destination in the load.
Ship's Manifest
An instrument in writing, signed by the captain of the ship, that lists the individual shipments constituting the ship's cargo
Shipping Weight:
Represents the gross weight in kilograms (kg) of shipments, including the weight of moisture content, wrappings, crates, boxes, and containers (other than cargo vans and similar substantial outer containers).
Short Shipment
Piece of freight missing from shipment as stipulated by documents on hand.
Reductions of actual quantities of items in stock, in process, or in transit. The loss may be caused by scrap, theft, deterioration, evaporation, etc.
Warehouse slotting is defined as the placement of products within a warehouse facility. Its objective is to increase picking efficiency and reduce warehouse handling costs through optimizing product location and balancing the workload.
Specific, Measurable, Achievable, Realistic, Time Based. Specific, Measurable, Achievable, Realistic, Time Based (SMART): A shorthand description of a way of setting goals and targets for individuals and teams.
Standard Operating Procedure.
A computer industry term referring to the act of sending identical and irrelevant postings to many different newsgroups or mailing lists. Usually this posting is something that has nothing to do with the particular topic of a newsgroup or of no real interest to the person on the mailing list.
Split Delviery
A method by which a larger quantity is ordered on a purchase order to secure a lower price, but delivery is divided into smaller quantities and is spread out over several dates to control inventory investment, save storage space, etc.
Pulling material for an order from inventory before the material is required. This action is often taken to identify shortages, but it can lead to increased problems in availability and inventory accuracy. Also see: Accumulation Bin
People with a vested interest in a company, including manager, employees, stockholders, customers, suppliers, and others.
Standing Order
* See Blanket Purchase Order.
Straight Truch
Straight trucks do not have a separate tractor and trailer. The driving compartment, engine and trailer are one unit.
Decisions or activities in part made at the expense of the whole. An example of sub-optimization is where a manufacturing unit schedules production to benefit its cost structure without regard to customer requirements or the effect on other business units.
A subhauler drives a tractor under contract for a company. Usually a subhauler is an owner/operator or a small company.
Sunk Cost
1) The unrecovered balance of an investment. It's a cost already paid that is not relevant to the decision concerning the future that is being made. Capital already invested that for some reason cannot be retrieved.2) A past cost that has no relevance with respect to future receipts and disbursements of a facility undergoing an economic study. This concept implies that since a past outlay is the same regardless of the alternative selected, it should not influence the choice between alternatives.
SWOT Analysis
An analysis of the strengths, weaknesses, opportunities, and threats of and to an organization. SWOT analysis is useful in developing strategy.
3D Loading
3D loading is a method of space optimizing designed to help quickly and easily plan the best compact arrangement of any 3D rectangular object set (boxes) within one or more larger rectangular enclosures (containers). It's based on three-dimensional, most-dense packing algorithms.


Tare Weight
The weight of a substance obtained by deducting the weight of the empty container from the gross weight of the full container.
A tax assessed by a government on goods entering or leaving a country. The term is also used in transportation in reference to the fees and rules applied by a carrier for its services.
The breakdown of the work in an activity into smaller elements.
Terms and Conditioins (T's & C's)
All the provisions and agreements of a contract.
Terms of sale
The point at which sellers have fulfilled their obligations so the goods are said to have been delivered to the buyer. They are shorthand expressions that set out the rights and obligations of each party when transporting the goods.
'Twenty-foot Equivalent Unit'. This is the industry standard to measure containers. A 20-foot container's dimensions are twenty feet long (6.09 meters), 8 feet wide (2.4 meters) and 8 feet six inches high (2.6 meters). These dimensions have been set by the International Organization for Standardization (ISO)
Third Party Billing
Billing of shipping charges to a party that is neither the shipper (consignor) nor the receiver (consignee)
Third Party Logistics
Outsourcing all or much of a company's logistics operations to a specialized company.
Third Pary Logistics Provider (3PL)
A firm which provides multiple logistics services for use by customers. Preferably, these services are integrated or bundled together, by the provider. These firms facilitate the movement of parts and materials from suppliers to manufacturers, and finished products from manufacturers, and finished products from manufacturers to distributors and retailers. Among the services they provide are transportation, warehousing, cross docking, inventory management, packaging, and freight forwarding.
Third Party Warehousing
The outsourcing of the warehousing function by the seller of the goods.
A measure of warehousing output volume (weight, number of units). Also, the total amount of units received, plus the total amount of units shipped divided by two.
Tier Discounts
Incentives provided to shippers based upon increases in volume shipped
Tier Plus Pricing
Incentive based pricing based on both the volume and type of parcels shipped
Time In Transit
The amount of time it takes a parcel/package/shipment to travel from point of origin to point of destination
* See Transportation Management System
* See trailer on a Flat Car, Piggyback
Total Declared value
The declared value for carriage of any shipment represents a carrier's maximum liability in connection with that shipment, including, but not limited to, any loss, damage, delay, misdelivery, non-delivery, misinformation, any failure to provide information, or misdelivery of information relating to the shipment. Exposure to and risk of loss in excess of the declared value is assumed by the shipper.
Provides the shipper with the ability to locate your parcel/package/shipment while it is in transit
Tracking number
The number assigned to a shipment by a carrier.
The tractor is the driver compartment and engine of the truck. It has two or three axles.
The part of the truck that carries the goods.
Trailer Drops
When a driver drops off a full truck at a warehouse and picks up an empty one.
Trailer on a Flat Car (TOFC)
A specialized form of containerization in which motor and rail transport coordinate. Synonym: Piggyback.
A single completed transmission, e.g., transmission of an invoice over an EDI network. Analogous to usage of the term in data processing in which a transaction can be an inquiry or a range of updates and trading transactions. The definition is important for EDI service operators who must interpret invoices and other documents.
Transaction Set
Commonly used business transactions (e.g., purchase order, invoice, etc.) organized in a formal, structured manner consisting of a transaction set header control segment, one or more data segments, and a transaction set trailer control data segment.
Transaction Set ID
A three digit numerical representation that identifies a transaction set.
The ability to gain access to information without regard to the system's landscape or architecture. An example would be where an online customer could access a vendor's web site to place an order and receive availability information supplied by a third party outsource manufacturer or shipment information from a third party logistics provider. Also see: Visibility.
Transportation Management System
A computer system designed to provide optimized transportation management in various modes along with associated activities, including managing shipping units, labor planning and building, shipment scheduling through inbound, outbound, intra-company shipments, documentation management (especially when international shipping is involved), and third party logistics management.
Transportation Mode
The method of transportation: land, sea, or air shipment.
General upward or downward movement of a variable over time such as demand for a product. Trends are used in forecasting to help anticipate changes in consumption over time.
Truckload Carriers (TL)
Trucking companies which move full truckloads of freight directly from the point of origin to destination.
Truckload Lot
A truck shipment that qualifies for a lower freight rate because it meets a minimum weight and/or volume.


Uniform Product Code
A standard product numbering and bar coding system used by the retail industry. UPC codes are administered by the Uniform Code Council. They identify the manufacturer as well as the item, and are included on virtually all retail packaging. Also see: Uniform Code Council.
Principal direction of movement for customer orders which originate at point of demand or use, as well as other flows, such as return product movements, payments for purchases, etc. Opposite of downstream.
 See Uniform Resource Locator (URL).


Valuation Charges:
Transportation charges to shippers who declare a value of goods higher than the value of the carriers' limits of liability.
Value Added: 
Increased or improved value, worth, functionality, or usefulness.
Value Chain: 
A series of activities, when combined, define a business process; the series of activities from manufacturers to the retail stores that define the industry supply chain.
Value Proposition: 
What the hub offers to members. To be truly effective, the value proposition has to be two-sided - a benefit to both buyers and sellers.
Variable Cost:
 A cost that fluctuates with the volume or activity level of business.
The manufacturer or distributor of an item or porduct line. Also see: Supplier.
Vertical Integration: 
The degree to which a firm has decided to directly produce multiple value-adding stages, from raw material to the sale of the product to the ultimate consumer. The more steps in the sequence, the greater the vertical integration. A manufacturer that decides to begin producing parts, components, and materials that it normally purchases is said to be backward integrated. Likewise, a manufacturer that decides to take over distribution and perhaps sale to the ultimate consumer is said to be forward integrated.
A floating structure designed for transport.
Vessel Manifest:
A list of all cargoes on a vessel.
The ability to access or view pertinent data or information as it relates to logistics and the supply chain, regardless of the point in the chain where the data exists.
Void Credit
Voiding a shipping label not shipped should result in a credit to the shippers billing as long as this action is completed in alignment with the shipper/carrier service contract
The trip designation (trade route and origin/destination) identifier, usually numerically sequential.
Vessel Sharing Agreement.


Storage place for products. Principal warehouse activities include receipt of product, storage, shipment, and order picking.
Waterway Use Tax
A per-gallon tax assessed barge carriers for waterway
Document containing description of goods that are part of common carrier freight shipment. Shows origin, destination, consignee/consignor, and amount charged. Copies travel with goods and are retained by originating/delivering agents. Used by carrier for internal record and control, especially during transit. Not a transportation contract.
Weight Break
The shipment volume at which the LTL charges equal the TL charges at the minimum weight.
Weight Confirmation
The practice of confirming or validating receipts or shipments based on the weight.
What You See Is What You Get (WYSIWYG)
An editing interface in which a file created is displayed as it will appear to an end user.
A charge assessed by a pier or dock owner against the cargo or a steamship company for use of the pier or dock for the handling of incoming or outgoing cargo.
World Trade Organization (WTO)
An organization established on January 1, 1995 replacing the previous General Agreement on Tariffs and Trade GATT that forms the cornerstone of the world trading system.


Zone of Rate Flexibility
 Railroads may raise rates by a percentage increase in the railroad cost index that the ICC determines; the railroads could raise rates by 6 percent per year through 1984 and 4 percent thereafter.
Zone of Rate Freedom
 Motor carriers may raise or lower rates by 10 percent in one year without ICC interference; if the rate change is within the zone of freedom, the rate is presumed to be reasonable.
Zone of Reasonableness
 A zone or limit within which air carriers may change rates without regulatory scrutiny; if the rate change is within the zone, the new rate is presumed to be reasonable.
Zone Price
 The constant price of a product at all geographic locations within a zone.