Supply Chain Glossary

A company that provides outsourced logistics services including warehousing, fulfillment, and transportation.

A lead logistics provider that manages an entire supply chain on behalf of a shipper, including multiple 3PLs.

An inventory categorization method that ranks items by their consumption value into A, B, and C classes.

An electronic notification of shipment contents and timing sent ahead of delivery, usually via EDI 856.

The return trip of a transport vehicle from its delivery destination back to its point of origin, ideally loaded with revenue freight.

An order for a product that is currently out of stock and will be fulfilled when inventory is replenished.

A legal document issued by a carrier that serves as a receipt, contract, and title for shipped goods.

A legal document between shipper and carrier detailing the goods, quantities, and destination of a shipment.

A secured warehouse where imported goods can be stored without paying customs duties until they are released.

The slowest step in a process that limits the overall throughput of the system.

Non-containerized cargo that is loaded individually onto a vessel rather than in shipping containers.

The amplification of demand variability as orders move upstream in a supply chain.

The process of determining the production, storage, or transportation capacity needed to meet expected demand.

A document listing all cargo carried on a vessel, aircraft, or truck on a specific voyage or trip.

A company that physically transports freight by truck, rail, ocean, or air.

The standard unit of volume measurement used in international ocean and air freight.

A facility where LCL shipments are consolidated into or deconsolidated from ocean containers.

A wheeled frame used to transport an intermodal shipping container by truck.

An Incoterm where the seller pays the cost, insurance, and freight to bring goods to the destination port.

The direct cost of producing goods sold by a company, including materials and direct labor.

The party named in a shipping document as the receiver of the goods.

The party that ships the goods, also known as the shipper.

A logistics practice where incoming shipments are unloaded and reloaded directly to outbound trucks with little or no storage.

A licensed professional who arranges customs clearance for imported goods on behalf of an importer.

A perpetual inventory audit where a subset of SKUs is counted on a rolling schedule rather than a full physical count.

An Incoterm where the seller delivers goods cleared for import and pays all duties and taxes.

Miles a transport vehicle travels empty, without revenue-generating freight.

The process of predicting future customer demand using historical data, market signals, and statistical methods.

The cross-functional process of producing a consensus forecast that drives supply and inventory plans.

Charges assessed by a carrier when containers or rail cars are held beyond free time at a port or terminal.

Carrier fees for holding a truck or driver beyond the free loading or unloading window.

A warehouse focused on rapid receipt, storage, and shipment of finished goods to downstream customers or stores.

Short-distance trucking, typically between a port or rail yard and a nearby warehouse.

A fulfillment model where a retailer sells products that are shipped directly from the supplier to the end customer.

Packing material used to protect, brace, or separate cargo during transport.

The time freight or equipment sits idle at a facility waiting to be moved.

A measure of how much weight a vessel can safely carry, including cargo, fuel, crew, and supplies.

A standard format for exchanging business documents like purchase orders and ASNs between trading partners.

The order quantity that minimizes the total cost of ordering and holding inventory.

The expected date and time a shipment or vehicle will arrive at its destination.

The expected date and time a shipment or vehicle will depart its origin.

An Incoterm where the buyer is responsible for collecting goods from the seller's premises and all downstream costs and risks.

An Incoterm where the seller delivers goods alongside the vessel at the named port of shipment.

An ocean freight shipment that fills an entire container booked by a single shipper.

An inventory rotation policy where items with the earliest expiration date are shipped first.

An inventory method where the oldest stock is sold or used first.

The percentage of customer demand met from on-hand inventory without backorders.

An Incoterm where the seller delivers goods on board the vessel; risk transfers at the ship rail.

A standardized NMFC rating system (50–500) used to price LTL shipments based on density.

A shipping arrangement where one shipper's cargo fills an entire truck trailer.

Hazardous materials regulated by DOT or IMO requiring special packaging, labels, and documentation.

Movement and storage of materials from suppliers into a business.

International Chamber of Commerce rules defining seller and buyer responsibilities in trade transactions.

Freight that moves in the same container across multiple modes such as truck, rail, and ship.

A pull-based inventory strategy that schedules supply to arrive exactly when needed to minimize stock.

A visual signaling system that controls the flow of materials based on actual consumption.

A measurable value that shows how effectively an organization is achieving key objectives.

The final leg of a shipment's journey from a transportation hub to the end customer's door.

Ocean freight shared with other shippers in a single container; charged by volume or weight.

Total elapsed time from placing an order until receipt of goods, including processing and transit.

A management approach focused on eliminating waste and maximizing value across the supply chain.

An inventory accounting method where the most recently acquired stock is treated as sold first.

A freight shipping method where multiple shippers share space on a single truck.

A routing strategy where one vehicle picks up or delivers at multiple stops on a planned route.

The smallest order quantity a supplier will accept for a given SKU.

A planning method that calculates the materials and components needed to produce finished goods on schedule.

A standard published by NMFTA assigning items to one of 18 freight classes for LTL pricing.

A company that manufactures products or components that are sold by another company under its own brand.

A fulfillment strategy that delivers a seamless customer experience across stores, web, mobile, and marketplaces.

A KPI measuring the percent of orders delivered complete and on the requested date.

The total time from when a customer places an order to when they receive it.

Movement of finished goods from a business to customers.

A flat platform used to move and stack goods; standard US size is 48x40 in (GMA).

An order that is delivered complete, on time, damage-free, and with accurate documentation.

The warehouse process of selecting items from inventory and packing them into shipments for customers.

The act of retrieving items from storage locations to fulfill customer orders.

A buyer-issued document authorizing the purchase of goods or services at agreed terms.

The end-to-end process of sourcing, negotiating, and purchasing goods and services from suppliers.

Two opposing approaches to inventory replenishment: push is forecast-driven, pull is demand-driven.

The inventory level that triggers a new purchase order to replenish stock.

The process of moving goods back from customers for returns, repair, refurbishment, or recycling.

A technology that uses radio waves to automatically identify and track tags attached to objects.

A cross-functional process that aligns demand, supply, and financial plans on a regular cadence.

Extra inventory maintained to protect against demand variability and supply disruptions.

Standard Carrier Alpha Code - a unique 2–4 letter identifier for transportation companies.

The end-to-end management of the flow of goods, information, and finances from raw material to end customer.

A standardized steel box used to move freight across ocean, rail, and truck modes without rehandling the cargo.

A data-driven methodology for reducing defects and process variation.

A unique identifier assigned to each distinct product in inventory.

A contractual commitment between provider and customer defining expected service levels and remedies for shortfalls.

A thin sheet of cardboard or plastic used in place of a pallet to save weight and cube.

A situation where an item is not available in inventory when a customer or production line needs it.

An organization that provides goods or services to another organization.

The interconnected network of organizations, people, activities, and resources that produce and deliver a product to the end customer.

The weight of an empty container, vehicle, or packaging, excluding the cargo.

A standard unit of container capacity equal to one 20-foot ISO shipping container.

The rate at which a system produces or processes output over a given period.

Software for planning, executing, and optimizing freight movements.

A unique identifier assigned to a shipment that allows it to be located throughout transit.

The process of transferring a shipment from one mode of transport to another.

A 12-digit barcode standard used at retail point of sale.

The full set of activities a company performs to create and deliver a valuable product or service to customers.

A program where the supplier monitors and replenishes buyer inventory based on shared data.

A building used to store goods before they are distributed or sold.

A warehouse strategy that groups orders into time-bound batches (waves) for picking, packing, and shipping.

Software for managing receiving, putaway, picking, and shipping in a warehouse.

The discipline of tracking and orchestrating trailers, containers, and vehicles in a facility's yard and dock area.