The Logistics and Trade industry
Common Terms
3PL
Third Party Logistics provider for outsourced logistics services that uses its own assets and resources.
A
Air Freight
Transit of merchandise by air
Arrival Notice
Notification by the carrier of the arrival
Asset-based carrier
B
Bill of Lading
The written terms and conditions of a contract between the shipper and the transportation company and also serves as the invoice for merchandise and as a document of title.
Border X-Dock Activities
The process of unloading cargo from one container and loading it into a different container. This process usually is done by little to no storage in between.
Box
A freight car
Brokerage
Fee paid to the freight forwarder by the carrier for the services performed.
C
Certificate of Origin
Required formal document for destination, stating the information of origin of cargo and relevant cargo details
Commodity
Commercial Invoice
A bill used for the merchandise from the seller to the final buyer. Also used by the government to determine the true value of the goods, in regards to proper customs duties.
Consolidation
The combination of two or more shipments in one container to provide a more economical freight solution
Container
The large reusable box used to carry shipments from origin to destination, by road, rail or ocean.
Customs
Destination Government agency that enforces the rules of the country to protect the country’s import and export revenues.
Customs Broker
Agent that is used to handle the customs formalities of the import and export of goods
Cycle Time
The duration of time it takes to transport goods from origin to final destination
D
Days in inventory (DSI)
The number of days that a specific shipment is in holding before distribution to destination
Distribution
The process of sending out merchandise to the recipient
E
End-of-life
Goods that have reached their final life stage and have no operational use. Typical items are non-repairable goods or obsolete items.
Express OTR Shipments
Shipments that are expedited in order to arrive faster
F
Foreign Regulations
Rules and laws in a foreign country that must be followed in order to import products
Free Trade Zone
An area near a port of entry where goods are not charged for customs fees or duties
Freight Forwarders
3rd party logistics providers that handle the collection, consolidation, shipping and distribution of goods, while clearing though customs, preparing documents and booking for shipping, warehousing and delivery.
Fulfillment Schedule
Process of receiving an order, then shipping the order to the buyer to complete the transaction
FTL
Shipments with a full truckload
G
H
I
Importer of Records
An individual that helps move freight on the carriers name on behalf of the customer while making sure that the imported goods comply with the local laws and regulations, provide proper documentation and pay the proper duties and various fees on the goods.
In Bond
The process of transporting a shipment to an inland point for customs clearance rather than filing an entry to clear goods at the port of arrival
Intermodal
The combination of two different forms of transportation for a shipment
J
K
L
Landing Cost
The actual cost associated with goods once they arrive to a destination
Lead Time
The time it takes for a given shipment to arrive at its destination
Lean operational process
Doing more with less without disrupting any other services offered
Logistics Management
The project management role of logistic operations for cost effective movement of goods and services
Logistics Consulting
The process of providing expert knowledge to provide a third party with the best solutions and practices for their supply chain needs.
Low Customer Touch
Providing clients with an easy solution to reducing unnecessary contact
LTL
Shipments less than a truckload
M
Merchant Invoices
Multi-Modal
Using two different forms of transportation methods
Multi-User
A warehouse that is used by a variety of non-related users
N
Non-asset based carrier
O
OTR Freight
Over the road freight
Ocean freight
Transporting goods by ocean
P
Pallet
A flat wooden crate that is used by forklifts in order to carry goods into their transportation source or store in inventory
Proactive v. Reactive
Proactive is handling issues before they happen or preparing a solution before a possible problem can arise, on the other hand reactive procedures are handled at the point a situation arises.
Port of Entry
The port in which a shipment arrives at before final destination
Q
R
Rail Freight
Transportation of goods by rail
Reverse Logistics
The process of receiving products from its destination and transporting them back to its origin
Routing
The process of determining and arranging the best route for transporting the goods
S
Single Point of Contact
The solution of becoming the single reference for a customer, rather than having a customer deal with different people in different organizations
Shipper letter of instructions
A letter stating the important cargo instructions before shipping to destination
Supply Chain
The entire process of supplying goods to customers. The process includes supplying a product and delivering it to the end-user.
Supply Chain Management
The management control and direction of the entire supply chain process. Involves analyzing, planning, executing and measuring performance
Stuck Cargo
A problem that arises at the border due to improper documentation for goods, the result is unmovable cargo until cleared
T
Tariffs
The duties that must be paid once a product enters foreign commerce boundaries
Theft
An issue that arises when products lack security during the supply chain process
Third Party Logistics
Third Party Logistics provider for outsourced logistics services that uses its own assets and resources. (also see 3PL)
U
Upstream Process
A coined term by TMS that helps customers become more cost efficient and reduces cycle time though out the supply chain process
V
W
Warehousing
The process of storing/holding shipments and merchandise until distribution and transporting of goods
X
Y
Z
Zero border crossing time
Eliminating the amount of time at the border when importing goods, this process is possible with the use of an upstream model procedure
