Logistics - Definitions and Terms

Actual Time of Arrival (ATA)

The actual time of arrival of a vessel or other means of transportation is the time it is determined to arrive at its destination.

Actual Time of Departure is the inverse of ATA. ATD specifies the precise moment at which a vessel leaves from its place of origin.

Actual Time of Departure (ATD)

The precise moment a vessel or other mode of transportation departs from its place of origin is known as the Actual Time of Departure.

Actual Time of Arrival is the inverse of ATD. The precise moment a vessel arrives at its destination is referred to as ATA.

Advice Note

An advise note is a document that certifies that a client order has been received and delivered. A supplier sends this document to a client to notify him that the items he purchased have been sent. The purpose of this document is to keep the client up to date on the progress of his order.

Air Cargo

Air cargo is a synonym for air freight. It refers to the carrying or shipment of commodities through an air carrier. When it comes to transporting express goods across the world, air transport services are the most important, and they include air mail, air freight, and air express.

Air freight travels via the same airport as commercial or passenger aircraft.

Air Waybill (AWB)

An Air Waybill is a transportation document provided by an international air carrier that contains comprehensive information on the shipment of goods and how to trace it. The document includes, among other things, the shipment’s terms and conditions, the carrier’s limit of responsibility, a description of the products, and the process for filing claims.

An AWB is also known as an air consignment note. There is an established standard for issuing AWB documents, which is utilized globally in both international and domestic trade.

All-Cargo Aircraft

All-cargo airplanes are aircraft of different sizes that are exclusively intended to transport cargo. It is also known as a freighter, an airlifter, a cargo jet, or a cargo aircraft.

The characteristics of all-cargo aircraft are totally distinct from those of passenger aircraft, and the passenger plane design model is not integrated. Its travel time varies from short to long distance trips.

Allocated Stock

The term “allocated stock” refers to a number of products or raw materials that are in storage but have already been assigned to another use. When stock is allocated for a particular purpose, it becomes inaccessible, even though it is still visible or existent in the warehouse.

Backhaul

The return travel of a transport vehicle from its original destination to its original place of departure is referred to as backhaul. Carriers may use the same route to carry a full load, a half truckload, or less than a truckload. Because an empty backhaul is not economically feasible, most businesses will use this technique to compete on transportation costs.

Barcode

A code made of of printed bars that may be found on a variety of goods. A barcode is a kind of code that is used to label, scan, and track the provenance of a product.

Barge

A barge is a flat-bottomed watercraft designed to carry goods across rivers and canals that bigger boats cannot navigate. A barge is typically 195 by 35 feet in size and can carry up to 1,500 tons of cargo.

Before Breaking Bulk (BBB)

Making freight payment before a cargo is released is referred to as Before Breaking Bulk. In most cases, freight is paid after the products are delivered. However, in the event of BBB, freight must be paid before the vessel is permitted to depart the port.

BBB is a sensible method of guaranteeing that shipowners get payment for the goods they carry.

Benchmarking

Benchmarking is a tool that companies use to perform competitive analysis. Essentially, it is the process of comparing the goods, techniques, and services of other companies that are comparable to yours. It aids in gaining insights into rivals’ business operations in order to identify gaps in the company’s performance.

Businesses may use benchmarking to discover discrepancies, reduce performance gaps, and find opportunities for development. Benchmarking as a management technique aids in better assessing one’s own market position by finding best practices of the most successful businesses.

Bill of Lading (BOL)

A Bill of Lading is a necessary document given by a carrier to a shipper that details the kind of cargo, amount, and destination. The document serves three primary purposes. It acts as a contract, a shipping receipt, and defines the cargo’s title of ownership.

One of the most important functions of a BOL is to guarantee that products are delivered to the importer and that the exporter receives payment.

Blind Shipment

When a seller (distributor) conceals the identity of a shipping firm from a customer, this is referred to as a blind shipment. In essence, the customer has no idea who or where his products were sent from. The customer gets his purchased items and thinks the package was delivered straight from the vendor.

The shipper delivers the goods straight to the customer without revealing his name in this kind of shipping. Instead, the distributor’s information is printed on the products label.

This kind of shipment is often requested by a distributor who wishes to keep the shipper’s or manufacturing company’s identity hidden. As a result, the customer is totally “blind” and ignorant of who delivered the items.

The explanations behind blind shipment

The distributor has many motives for hiding the shipper’s identity. The primary causes are as follows:

In order to avoid direct interaction between the shipper and the customer,

To avoid having to inform the customer that the items are third-party products,

The distributor may utilize “double blind shipping” in certain circumstances. This implies that both the shipper and the buyer interact directly with the shipper without knowing each other. Essentially, neither the shipper nor the buyer knows the identity of the person to whom he is sending.

Block Pallet

A block pallet is a kind of pallet that has 9 solid wood blocks put in each of the pallet’s four corners. A block pallet is typically 100 x 120cm in size and can be lifted with a forklift on any of its four sides. It is considerably stronger and more durable than stringer pallets. A four-way pallet is another name for a block pallet.

Block Storage

A block storage warehouse is one in which stackable boxes, cartons, pallets, or wired mesh pallets are stacked directly on top of or next to each other in blocks without the use of shelves or other equipment.

Identical articles are often kept in the block storage section per storage line to provide easy access to each kind of product. Pallets without superstructures are sufficient for products that are stable and pressure-insensitive. Superstructures or box pallets, on the other hand, are needed for unstable and pressure-sensitive products.

Because of its flexibility, the block storage system is very cheap and may be modified at any moment. Furthermore, inventory management is very simple. Barrels, tyres, and beer crates are examples of items that are ideal for block storage.

Box Body

On a vehicle, a box body is a unique body with solid walls in the shape of a closed box. Typically, the box body is securely connected to the chassis. However, there are box bodies that can be removed. A detachable body is referred to as a swap body.

Box bodies are classified into many kinds based on its intended purpose. The box’s walls may be constructed of basic plywood, aluminum, or plastic. The box bodies are useful for a wide range of applications. As insulated thermo cases for temperature-controlled transportation, for example, or as garment cases in textile logistics. The body of a truck is spatially separated from the driver’s cab. Smaller vans with box bodies, on the other hand, have versions with access to the driver’s cab, such as package delivery trucks.

Bonded Terminal

A bonded terminal is a customs-approved warehouse or storage facility for the temporary storage of imported products. The items are held at the terminal until the customs tax is paid or the authority clears them.

Bonded Warehouse

A bonded warehouse is a secure location where dutiable products may be kept, manipulated, or manufactured without incurring duty. Duty will be charged, however, when the items are transferred from the warehouse for use or sale on the local market.

Typically, the bonded warehouse is overseen and controlled by customs officials. Any items entering the warehouse must have a customs entry made, and they may be kept for a certain amount of time.

Booking

A booking is an agreement established to reserve a room, event, or service for a certain period in the future. Booking in logistics refers to a customer’s request to reserve products, storage space, or services from different providers. It contains the agreement on transportation parameters including price, timing, and responsibility.

Branding

The connection of a name with a symbol, design, or abbreviation used to identify a certain brand is known as branding. It is the most efficient method to commercialize goods and services for any kind of company, whether business-to-business or business-to-consumer, whether a tiny firm or a big corporation.

Break Bulk

Break bulk is a method of carrying products in individual pieces rather than in a container. Break bulk cargoes are goods transported in crates, bags, cartons, drums, and barrels without the use of a container. These cargoes are often enormous in size and dimensions.

Oil and gas equipment, windmills, yachts, huge vehicles, boats, cranes, turbine blades, ship propellers, generators, big motors, construction equipment, and so on are examples of break bulk cargoes. These items are also referred to as Non-Containerised Cargo (NCC).

Broker

A broker is a person or organization who serves as a go-between between a selling and a buyer. Essentially, the broker serves as the seller’s representative to the client. In exchange for their services, the broker is compensated with a commission.

Bulk Cargo

Unpacked dry freight is referred to as bulk cargo. Grain, coal, and iron are a few examples. However, liquid bulk may be included in bulk cargo. As a result, specialized vehicles and containers are used.

Bulk Freight

Bulk freight refers to two things:

1. Bulk freight refers to goods that are not packaged and are loaded straight onto a vessel. Grains, petroleum products, iron ore, and other commodities fall into this category. Bulk freight refers to several types of commodities. It is also known as bulk freight.

2. Bulk freight, in other words, is the cost of transporting bulk goods.

Business to Business (B2B)

Business to Business, or B2B, is a kind of business transaction that occurs between two or more businesses. Companies sell to one other rather than to individual or family customers in B2B.

B2B firms provide products and services that other businesses need on a daily basis. They may work for government agencies or non-governmental organizations in certain circumstances.

B2B offers raw materials, semi-finished products, and components in the manufacturing industry. However, in the service sector, B2B provides consulting, marketing, legal, and other services.

Business to Consumer (B2C)

A business-to-consumer transaction, often known as a B2C transaction, is a commercial transaction that takes place between a company and its ultimate customer. Goods and services are sold directly to individual and household end customers in B2C.

The B2C industry is well-known, and its strategy is focused on market response. Furthermore, marketing messages are delivered emotionally rather than logically.

Cabotage

Cabotage is the right to operate and carry products by sea, air, or other modes of transportation inside a certain area. The temporary carrying of goods in a European country by non-resident carriers is regulated and exists to enhance road freight efficiency by eliminating empty trips. According to Article 8 (published by the European Commission), each carrier is allowed to carry three cargoes in seven days, beginning at the point of unloading international transport.

Cargo

Cargo, often known as freight, refers to products or produce that are carried from one location to another – whether by sea, air, or land. Originally, the word “cargo” referred to items put into a ship. Cargo, on the other hand, is now used for all kinds of products, including those transported by train, van, truck, or intermodal container.

Although cargo refers to all things aboard a transport vehicle, it excludes items such as personnel bags, goods in storage, equipment, or products used to assist the transport carried onboard. Cargo transport is primarily for business purposes, for which the carrier issues an air waybill, bill of lading, or other receipt.

Cargo Insurance

Cargo insurance is a way of safeguarding cargo against physical damage or theft. In reality, cargo insurance protects the value of products against possible losses that may occur during air, sea, or land transportation.

The transportation of commodities across the globe entails certain hazards. Because there is no assurance that harm or loss will not occur, these risks are minimized via insurance coverage.

Carrier

A carrier is a business or individual who has the legal authority to carry products by land, sea, or air. Typically, the carrier collaborates with shippers to transport products from one location to another.

There are two major kinds of carriers or means for delivering goods:

A common carrier is a transport provider that provides his services to any individual or business because he is authorized to do so by a regulatory authority. Because he is not constrained by any contract, the common carrier may deal with multiple shippers on the same day.

A contract carrier is a business or individual that offers long-term transportation services for a specific shipper. This implies that the contract carrier comes to an arrangement with the shipper and agrees to operate under certain terms for the duration of the contract.

Cash Against Documents

The cash against papers payment technique is utilized in international transactions between a seller and a buyer. In essence, it is a procedure in which an importer pays for the requested products before they arrive.

When an exporter (seller or vendor) orders his bank to deliver shipping papers to the importer upon full payment of the cargo, this is known as cash against document. The papers are delivered to the importer once payment is received.

The parties involved in this form of payment benefit from cash against papers. It ensures the payment of products for the exporter. It guarantees that the exact goods paid for are received in the case of the importer.

Certificate of Compliance

A Certificate of Compliance is a document that verifies that the products or services provided satisfy the necessary requirements. The document is intended to safeguard consumers in importing nations against hazardous or sub-standard goods.

Arriving products that do not match the importing country’s criteria may be refused entry. The carried items are sometimes seized.

This document is sometimes referred to as a Certificate of Conformity or a Certificate of Conformance.

Certificate of Origin

An international commerce document that verifies the provenance of a cargo is known as a certificate of origin. Essentially, the certificate verifies that the products being transported were fully acquired, produced, made, or processed in a certain nation.

Almost all nations need a certificate of origin when exporting products across borders, and it is required for customs clearing processes. Customs uses the certificate to assess if the items are restricted and the amount of tax to be paid.

Charterer

A charterer is a person or company that charters a ship, truck, or other mode of transportation to carry products from one location to another. In certain instances, a portion of the ship’s capacity is leased. The owner of the cargo being carried may be the charterer. In addition, the charterer may be an agent or a broker acting on behalf of the goods’ owner.

Clean Bill of Lading

To comprehend the meaning of a clean bill of landing, it is necessary to first comprehend the concept of a bill of lading. As a result, a bill of lading is a legal document that acts as a contract between a shipper and a carrier. The paperwork contains comprehensive information on the cargo being carried (number of items, kind, and destination).

A clean bill of lading is a document issued by the carrier after the cargo has been received in acceptable condition. Before issuing the paperwork, the carrier conducts a comprehensive inspection to verify that the items were delivered to the agreed-upon location as received.

Closing

Closing is the anticipated completion time for operations involving the loading or unloading of cargo. Closing is also known as the Estimated Time of Completion (ETC).

Commercial Invoice

In an international transaction, a commercial invoice is a legal document issued by a seller to a buyer. Between the two parties, the paper acts as a contract and evidence of sales. It specifies the quantity of items sold, their prices, and their monetary worth.

When exporting or importing products, a commercial invoice is required. A business invoice must be submitted to the customs authorities for the clearance of imported products, who utilizes the document to evaluate the amount owed on taxes.

Confirmation Order

A confirmation order is a document that verifies an order’s receipt and acceptance. The document certifies that a transport order has been made in the transportation sector. It verifies an online order placement of consumer products in other industries, particularly retail.

The confirmation order serves as an official written document that verifies and binds the carrier and the shipper’s agreement. It would be impossible to verify or confirm the delivery of items without a confirmation order.

Consignee

A consignee is the person or business to whom goods are to be delivered. The consignee, consignor, and carrier are all parties involved in the shipping process. The consignor sends goods to the consignee through the carrier, who is a delivery service provider. A freight forwarder is a kind of intermediary consignee.

Consignor

A consignor is the person or business in charge of initiating and organizing a shipment. A consignor may be a buyer or a seller (who ships goods from one country to the other).

The method of shipping and the number of parties involved in the transportation of goods varies depending on the seller. When items are ordered, the buyer’s contact information is sent to the consignor. When the order is received, the consignor selects a carrier, which then utilizes its carrier assets to transport the products from the site of origin to the receiver or the place of destination.

Consolidation

Consolidation is the process through which a carrier or shipping firm merges several smaller shipments into a single large container.

Consolidation should benefit both the carrier and the shipper. In the case of the carrier, it contributes to lower shipping costs and faster delivery of products. Furthermore, the shipper with a lesser cargo would not be required to pay for a full container shipping.

Container

A container is a sealed, rigid, reusable metal box used to carry products by vessel, truck, or rail. The container must be designed for repeated use, be simple to fill and empty, and be specifically designated to allow for the transport of products without the need for intermediate reloading.

All containers must have construction fittings that can resist the transport pressure that may be exerted in some circumstances during regular continuous transportation usage.

Container Load

A container load is a cargo that completely fills a container, either by volume or by weight. It is, in essence, the number of shipments that can be carried using a specified shipping container.

Cost and Freight (CFR)

Cost and Freight implies that the seller arranges and pays for freight to a specific port and provides the required papers for the buyer to receive the goods.

When the items are completely loaded on a vessel and approved for export, the seller’s duty is fulfilled. Once the products are put onto the ship, the expenses and hazards are passed on to the customer.

Cost, Insurance and Freight (CIF)

Cost, Insurance, and Freight are the expenses incurred by a seller to protect a buyer’s products from harm while being delivered to the port of shipping. The seller assumes all risks and expenses up to the point when the items are put onto a vessel for transportation.

When all items are with the buyer’s designated carrier at the departure port, the seller’s duty to deliver the goods is completed. Following then, the buyer pays the expenses and hazards of export.

Courier Service

A courier service is a postal or logistical business that transports packages from one location to another. In certain instances, the postal service may personally carry small packages and written notes from the sender to the receiver.

Crane

A crane is a piece of machinery used to lift and lower large objects. Cranes are often seen on construction sites. They are outfitted with at least cables, ropes, chains, and pulleys, allowing them to lift and move horizontally.

Customs

Customs is a government department or body responsible for regulating the movement of commodities into and out of a nation. Most significantly, customs is in charge of collecting taxes on imported products.

Customs refers to a location at a port, airport, or border where government authorities control entering products, persons (travelers), and other cargo.

Customs Agent

A customs agent is a law enforcement officer who works on behalf of the government to check goods and persons entering and exiting a nation.

Depending on the nation and area, the customs agent may be responsible for some of the following duties:

• safeguards the borders against smuggling
• tariffs and levies on imported products
• safeguards intellectual property rights
• safeguards the interests of the local market
• safeguards the interests of local consumers
• actions in order to meet international responsibilities

Customs Clearance

Customs clearance is the process of passing items through the customs authorities to enable the movement of cargo into and out of a nation (import and export) (export).

In addition, customs clearance refers to a document given by the customs authorities to a shipper stating that all tariffs have been paid and the shipper’s goods have been cleared for export.

Customs Declaration

A customs declaration is a document that contains a list of products and a comprehensive description of those items that are destined for import or export. Customs declarations are often made by travellers upon arrival or departure at a country’s border.

Customs officials regulate what kinds of commodities or items are imported or exported via customs declaration. The control, as is customary, performs two main functions:

Import: to safeguard the nation against hazardous or dangerous products that may damage the economy or the environment.

For export: to issue executive orders limiting the export of particular products and to implement monitoring measures.

Travellers who fail to properly declare the items they are importing or exporting may face a fine or have their products confiscated. However, in certain instances, hefty import taxes are imposed on specific products in order to dissuade people or companies from importing them.

Customs Duty

Customs duty is a tax or charge levied by a country’s customs administration on products imported and exported at the direction of the government. In terms of economics, the duty is levied to produce income for the government.

Customs duties are also levied to prevent imported goods from overwhelming the domestic market. As a consequence, it defends domestic goods against foreign product domination. Furthermore, taxes and levies are levied in order to penalize a nation via a punishment mechanism.

Debt Collection

The word debt collection is connected with the financial and banking industries. It refers to the recovery of receivables from a debtor that are still outstanding or have not been paid within the payment term.

The debt may be collected by the creditor, a lawyer, or a professional debt collection firm. Typically, the first stage in debt collection is to attempt to settle the outstanding amount outside of court. If this fails, the application for a court order for payment begins the judicial dunning process, which concludes with the issuance of an enforcement order or a legal conflict.

Declared Value

Declared value refers to two concepts:

1. Declared value is the price paid by the importer for imported items. The worth of the items is stated at the port of entry for clearance. It is also used to calculate the amount of duty to be paid on imported items.

2. Declared value is the amount declared by the shipper to the carrier as the value of his cargo. If the cargo is lost or damaged during transit, the carrier is obligated to pay the shipper based on the stated value.

Declared Value for Carriage

The worth of cargo disclosed by the shipper to the transport provider for the purpose of calculating costs and setting the limit of the transport provider’s responsibility for damage, loss, or delay.

Delivered at Frontier (DAF)

Delivered at Frontier is a contract or agreement that requires a seller to deliver a consignment at a certain border crossing. DAF is most often used in rail and road transportation. It may, however, be used for any kind of transportation system.

DAF is no longer used for international shipping contracts, having been superseded by Delivered at Place (DAP) and Delivered at Terminal (DAT) (DAT).

Delivered at Place (DAP)

DAP is an abbreviation for Delivered at Place. This implies that the seller is responsible for the expenses of packaging goods as well as arranging for the cargo to be delivered at a location agreed upon with the buyer. The seller must guarantee that the products reach securely at their ultimate destination, or he will be responsible for any delays. Local taxes and import charges are the buyer’s responsibility.

In essence, DAP stands for Delivered Duty Paid (DDP). Buyers profit from the delivery regulations since the seller bears the risks and is responsible for the delivery. As a result, purchasers no longer have to pay any costs upon delivery of products.

Delivered at Terminal (DAT)

DAT is an abbreviation for Delivered at Terminal. This implies that the seller is liable for all transportation expenses until the items are unloaded at the proper terminal. Furthermore, the vendor must clear items for export (where applicable).

If the seller is unable to discharge the items at the agreed-upon terminal for any reason, he might consider shipping under DAP. The buyer will be responsible for any costs incurred beyond the unloading point. As with DAP, the vendor is liable for any delays or demurrage costs.

Delivered Duty Paid (DDP)

DDP is an abbreviation for Delivered Duty Paid. It is a delivery contract in which the seller bears all possible risks and expenses involved with delivering goods until the customer receives the items at the destination. Shipping fees, export and import taxes, insurance, and other expenses must be borne by the seller.

In practice, DDP stands for Delivered at Place (DAP). Buyers profit from the delivery regulations since the seller bears the risks and is responsible for the delivery. As a result, purchasers no longer have to pay any costs upon delivery of products.

Delivered Duty Unpaid (DDU)

Delivered Duty Unpaid is an outmoded incoterms regulation that has been superseded by DAP and DAT. A DDU is a delivery agreement that requires a seller to deliver items to a buyer-specified location. The seller is responsible for securely delivering the items to the agreed-upon place.

However, the buyer is responsible for any expenses connected with the importation of the products (such as customs taxes, tariffs, and other payable levies). If the parties want for the seller to carry a portion of the payment fee, this must be explicitly specified in the terms of the agreement.

Delivered Ex Ship (DES)

Delivered Ex Ship is an out-of-date incoterms regulation that has been superseded by DAP and DAT. When items are delivered to the port designated by a customer, a seller has completed a delivery agreement. Only the risks and expenses associated with delivery from the place of origin to the specified port are borne by the seller.

When the products reach the buyer’s designated port, the risks and expenses are transferred to him. From then on, the buyer is responsible for paying all customs taxes and clearing the items.

Delivery Note

A Delivery Note is a written document that explains the contents of a shipment. The paperwork includes a list of the items as well as the total value of the shipment. In certain circumstances, the receiver of the goods may sign and return a copy of the delivery note to the seller.

Delivery Order

A delivery order is a document issued by the owner of freight, consignee, shipper, or carrier to another party to deliver goods. A delivery order must be distinguished from a bill of lading. The delivery order is not a negotiable document, nor does it serve as proof of delivery or receipt of goods.

Demurrage

Demurrage is a charge imposed by a consignor on a consignee if leased containers are not cleared at the port or terminal and returned to the consignor’s designated location.

Typically, the consignee is allowed laytime (free time). The consignee must clear and return the container within this time frame. Otherwise, he will be charged a fee for exceeding his time at the port.

Dispatcher

A dispatcher is a person who works in an organization’s communications department and is responsible for receiving and transmitting information. The dispatcher, in essence, organizes activities with truck drivers and stakeholders about cargo delivery. Furthermore, the dispatcher uses a transport management system to track the flow of products and optimize the fleet.

Distribution

In logistics, distribution refers to the entire administration that supervises the flow of products from development to point of sale. Transportation, packing, inventory, stock management, site and area inspection, and information processing are all examples of this. Distribution in logistics involves a number of procedures. The ultimate goal is to provide effective distribution and the seamless flow of completed goods to consumers.

Domestic Transport

Domestic transportation is the movement of commodities or persons inside a country’s boundaries. Within the nation, transportation by air or land takes place. International transport, on the other hand, refers to the movement of commodities and people across international boundaries.

Door-to-door

A shipping arrangement in which products are delivered from the sender to the consumer is known as door-to-door. Door-to-door service is sometimes referred to as house-to-house service.

Dry-bulk container

A dry-bulk container is a shipping container that transports raw commodities in big, unpackaged packages (such as grain, powder, or sand). The top of a dry-bulk container is loaded, and the bottom is emptied.

Dry-cargo container

A dry-cargo container is a kind of shipping container that is used to carry all sorts of products other than liquids. The dry-cargo container is available in a range of sizes. Depending on the service provider, the container may be 20′, 40′, or somewhat more than 45′ in length.

End-to-End Logistics

End-to-end logistics encompasses the whole logistics cycle, beginning with procurement and distribution and concluding with return logistics.

Estimated Time of Arrival (ETA)

The estimated time of arrival, also known as the anticipated time of arrival, is the time that a transportation system is expected to arrive at its destination. This word may be used in a variety of contexts.

During a trip/journey, it is used to inform passengers of how much time remains until the conveyance arrives at a certain location. In the event of goods delivery, it is used to notify the recipient of the anticipated arrival time of their products at their designated location.

Estimated Time of Completion (ETC)

The expected time of completion is the time required to complete the operations related to loading or unloading of items. ETC is also known as closure.

Estimated Time of Departure (ETD)

The projected time for a transportation system to leave its place of origin/location is known as the Estimated Time of Departure. It is also an indication of when to begin a certain trip/journey. This phrase is synonymous with Expected Time of Departure.

Export

The practice of transferring locally produced products from one nation to another for future sales is known as exporting. Export is recognized as one of the most important components of international commerce and is one of the factors used to determine a country’s economic worth.

Import refers to the process of bringing products in from other countries.

Ex Works (EXW)

EXW is an abbreviation for Ex Works. It implies that the seller is required to deliver products as soon as they are made accessible to the customer at the seller’s or another specified location (eg. factory, plant, warehouse, etc.). The seller is not required by this regulation to load the items into a collection vehicle or to clear the products for export.

Essentially, this implies that the vendor makes the goods accessible in the buyer’s preferred location. This kind of agreement benefits the vendor (at the expense of the consumer, who must pay transportation expenses). The seller’s duty under this regulation is to package the products and make them accessible at the specified place.

Overall, the buyer is liable for all transportation expenses and hazards associated with the delivery of products.

Express Delivery

Express delivery is the quickest method of shipment. The client pays an additional shipping fee for this kind of delivery, since the item will be delivered to him within 24 and 72 hours.

Express Freight

Express freight is anything that has to be moved quickly from one location to another. As a result, express freight is a critical component of the CEP sector, along with courier, express, and package services.

Express Shipping

Express shipping is a specialized service provided by various carrier firms to reduce the time it takes for an item to arrive, thus expediting the shipping process. When it comes to overseas shipment, express shipping is typically done via air.

Most shippers utilize express shipping for items that must be delivered quickly. Furthermore, the service is utilized when products are designated as time essential and/or have an urgent deadline set with little warning.

First In / First Out (FIFO)

FIFO implies that the oldest inventory goods (first in) are utilized, consumed, delivered, or sold (first out). It is a technique of accounting used to manage a company’s inventory.

First Party Logistics (1PL)

A company’s internal logistics are referred to as first-party logistics. The manufacturer in this instance does not outsource transportation or other logistical operations to other parties. The manufacturer has a facility where he keeps products and owns trucks that transport things to consumers. The company’s own departments handle all functions.

Flat Rack Container

A flat rack container is used to carry or store goods with irregular dimensions. The container is flat, as the name suggests, and goods may be loaded from the sides or the top.

Trucks, yachts, huge vehicles, boats, cranes, turbine blades, ship propellers, generators, massive motors, construction equipment, and so on are often transported in flat rack containers.

Flatbed Trailer

A flatbed trailer is a kind of open deck vehicle with no roof or sides. It is mostly used to carry large, enormous, broad, and fragile items such as machinery, construction materials, or equipment. The flat form of the body makes loading and unloading items considerably simpler.

Because of the open body of the flatbed truck, the items carried with it must be protected from weather. The trailer is one of the most often utilized because to its flexibility. The trailer’s length typically varies between 48 and 53 feet. In terms of functionality, a flatbed trailer is similar to a flatbed truck.

Flatbed Truck

A flatbed truck is a truck that has a sturdy construction. It features a flat-shaped rear body for convenient loading and unloading of items. Flatbed trucks are often used to carry large, enormous, broad, and fragile items such as machinery, construction materials, or equipment.

Because of the truck’s open body, the items carried with it must be protected from the weather. In terms of functioning, a flatbed truck is similar to a flatbed trailer.

Fleet Management

Fleet management is a service that enables a business to limit or minimize the risks associated with vehicle investment. This implies that by organizing and coordinating work vehicles, businesses may improve efficiency while still complying with regulatory requirements.

Fleet management is particularly useful for couriers, oil and gas transportation, and the service sector since it allows for real-time tracking and verifies safety.

Forklift

A forklift, also known as a fork truck, is a motorized industrial vehicle used to lift and move items on pallets inside the confines of a warehouse, storage facility, or distribution centre. Some Forklifts, depending on their design, enable the operators to sit while driving or controlling the equipment.

Forwarding Agent

A forwarding agent, often known as a freight forwarder, is a person or organization that specializes in organizing transportation for people or businesses.

Essentially, the forwarding agent is in charge of organizing the transportation of products from one location to another.

Fourth Party Logistics (4PL)

Fourth Party Logistical, or 4PL, is the practice of outsourcing logistics activities to a single partner. The partner will be in charge of evaluating, developing, constructing, operating, and monitoring integrated supply chain solutions for the customer.

The 4PL shifts logistics sourcing from Third Party Logistics (3PL) to 4PL. The single partner oversees and maintains the supply chain on behalf of the customer by supervising a network of warehouses, shipping firms, freight forwarders, and agents.

For the following reasons, the 4PL differs from the 3PL.

4PL is more suited to medium-to-large companies, while 3PL is better suited to small-to-medium firms.
4PL supervises and controls all activities inside the supply chain network, while 3PL is primarily concerned with logistical operations.
4PL’s activities are managed by a single point of contact.
Alongside Shipment Is Free (FAS)

In addition, it is free. A ship is a word used in the shipping of commodities by sea. The regulation states unequivocally that the vendor must bring items alongside a vessel and clear them for shipment. The products must also be delivered at a specified port, after which the customer assumes the risks and expenses of shipping.

Free Carrier (FCA)

The term “Free Carrier” denotes that the seller has already delivered the items to the buyer’s specified address. Following that, the items may be delivered to a carrier or another person designated by the customer.

Free on Board (FOB)

The phrase “Free on Board” refers to who pays the expenses of shipping between a buyer and a seller beginning at the point of departure. Once the cargo is on board a vessel, the buyer is responsible for the risks and expenses of transportation.

The FOB phrase is only used for products carried by sea or inland waterways.

Free on Truck (FOT)

The phrase “free on truck” refers to the shipment of products via truck. The seller is in charge of loading the items into the truck at a predetermined loading port or location. When the items are put into the truck, the buyer has responsibility for the transportation expenses and hazards.

Free Trade Zone

A free trade zone is a defined region within the authority of a nation. Goods may be landed, stored, handled, produced, re-configured, and re-exported in this zone without incurring any customs charges. However, if the products are transferred from the free trade zone into the nation where they have landed, they will be subject to customs duties.

Free trade zones are often found around large seaports and international airports. And the main purpose for establishing the zone is to eliminate trade barriers.

Freight Broker

A freight broker is a person or organization that helps shippers move goods from their place of origin to their final destination by using the services of carrier firms. Essentially, the freight broker assists the shipper in locating carriers for the transportation of goods.

Aside from arranging carriers for the shipper, the freight broker is responsible for enabling the delivery of goods to their destination and providing information on the shipment’s progress.

Full Container Load (FCL)

Full Container Load is a shipping type in which the cargo takes up the whole volume of a container. The container may not always be completely filled, however the cost is based on a full container.

FCL is the most common kind of shipping for big goods. The items in the container are owned by a single shipper and are accompanied by a single Bill of Lading (BOL).

Less Than Container Load (LTCL) refers to the procedure of loading a container with multiple cargoes from several shippers (LCL).

Full truckload (FTL)

FTL is an abbreviation for full truckload shipping. Normally, a shipper would choose this form of transportation if the items he wants to carry need the whole area of a truck.

If the shipper has to transport more than ten pallets, full truckload services are highly suggested. FTL goods are transported in the same vehicle from pick-up to delivery.

FTL shipment takes shorter time than LTL or PTL shipping. This makes it an excellent choice for businesses that need to carry big amounts of freight.

Global Logistics

The process of coordinating the movement of resources (goods) between companies and customers is known as global logistics. Furthermore, global logistics examines the purchase of products, the storage of goods, and the ways of moving items through a supply chain.

Groupage Freight

Groupage freight is a shipping technique in which individual units of products are carried in bundles to create a consolidated transport, i.e. the consolidation of many smaller shipments into one complete container. This technique of transport is appropriate for single pallets. Partial load shipping is usually the less expensive choice for greater pallet quantities.

The groupage procedure works as follows: general cargo is gathered from different shippers and merged into a groupage cargo in the forwarding agent’s warehouse. They are segregated again in the appropriate warehouses after delivery.

Transport as groupage freight is a commonly utilized method in logistics due to its cost-effectiveness since combining various consignments provides the added benefit of being especially cost-effective.

Handling Costs

Handling costs are the expenses incurred while preparing and moving goods. Generally, the costs include expenditures associated with order fulfilment, such as shipping and packing.

Haulage

The business act of carrying products by road or rail is known as haulage. It is, in essence, the transportation of containers from one location to another. There are two types of haulage: carrier haulage and merchant haulage.

Carrier haulage is when a shipping firm handles the transport of a container, while merchant haulage is when the container is moved by the consignee utilizing a specific haulage contractor.

HAWB

HAWB is an abbreviation for House Air Waybill, which is a document given by a freight forwarder to a shipper after the arrival of a cargo. HAWB is a certification that the forwarder will deliver the shipper’s goods to a specified location.

In general, the shipping procedure begins with the shipper and ends with the forwarder, who subsequently transfers the items to a carrier. The forwarder issues the HAWN upon receipt of the goods from the shipper. When the items are received from the forwarder, the carrier provides an MAWB – Master Air Waybill.

Hazardous Materials

Hazardous materials are flammable or toxic chemicals that, if discharged recklessly, endanger life, property, or the environment. These materials, which may be gases, liquids, or solids, include hazardous compounds, fuels, nuclear waste products, biological, chemical, and radiological materials having a high potential for damage.

Hazmat

The term “hazardous materials” is an abbreviation for “hazardous materials.” It refers to chemicals that are combustible or toxic that might endanger life, property, or the environment if discharged carelessly.

Hazmat may consist of gases, liquids, or solids. Toxic chemicals, fuels, nuclear waste products, biological, chemical, and radiological compounds with a high potential for damage are all included.

HS code

Harmonised Commodity Description and Coding System (HS code) is an abbreviation for Harmonised Commodity Description and Coding System. Essentially, it is a global defined method for categorizing or characterizing the kind of cargo.

When products are shipped abroad, an HS code is assigned depending on the shipment’s categorization. The customs authorities always need this code for inspections at border crossings. Furthermore, the code makes it simpler for authorities to check shipments based on the description on the HS code.

The World Customs Organization is in charge of the upkeep and development of the HS code (WCO).

Import

The process of receiving or bringing in products from another country for the purpose of commerce is known as importation. These commodities may be obtained by people, businesses, or the government and used to process other products or resold to end users.

However, if products are transported from one nation to another, this is referred to as export.

Import Duties

Import tariffs are charges levied by the customs authorities on products imported into a nation. Typically, the amount paid on imported products is determined by the value of the items. In certain cases, import duties are also referred to as customs duties, tariffs, or import taxes.

Economically, import tariffs are levied to produce income for the government and to safeguard domestic goods against foreign product domination. There are, however, additional grounds for levying taxes. One of them is to prevent imported goods from overwhelming the domestic market. Furthermore, import taxes are levied to penalize a nation via a punishment mechanism.

Inbound Logistics

Inbound logistics involves the transportation, storage, and receipt of products into a company. It is about purchasing products for the workplace or the manufacturing unit. The production unit of a manufacturing firm acquires raw materials or components from its suppliers for the manufacture of other products.

Inbound logistics refers to the process of bringing bought items inside the business. However, if the products are being moved from the manufacturing firm to its clients or other companies, this is referred to as “outbound logistics.” As a result, inbound logistics focuses on entering commodities, or the influx of items from suppliers into the warehouse.

Integrated Logistics

Integrated logistics is the process of planning and collaborating with different stakeholders to create effective and trouble-free company operations. Essentially, business operations are client-oriented and include acts that assist in moving goods from the source to the ultimate consumer.

Intermediate Bulk Container

A reusable, multi-use industrial-grade container placed on a pallet is known as an Intermediate Bulk Container. It is mostly used to store and transport pastes, liquids, and powders. The IBC is divided into three categories: stiff, foldable, and flexible.

International Air Transport Association (IATA)

The International Air Transport Association is a global organization of airline merchants that promotes collaboration in maintaining the safety, security, and dependability of air services.

Furthermore, with the collaboration of the airliners, a defined procedure for effective air transportation services is created.

The International Air Transport Association (IATA) was established in 1945. As of 2019, it has 290 airlines from 117 nations.

Inventory

Inventory is defined as completed products or raw materials kept on-site or in a company’s warehouse. Finished products are often immediately accessible for sale, while raw materials are easily available for processing in order to further create another product.

Inventory is a critical component of a company’s assets, as reflected on the balance sheet at the conclusion of each fiscal year.

Inventory Management

Inventory management is the full computerized tracking of all inventory movements and intralogistics modifications. It essentially refers to the operations of predicting and replacing goods in warehouses, distribution centers, and storage facilities.

Distributors must complete the tasks associated with inventory management in order to effectively manage inventory. Literally, it implies that inventory control should be enhanced. In practice, the inventory management process runs smoothly.

Inventory management allows for the creation of accurate data on the amount, quality, and storage location of all items. A warehouse management system that knows the precise stock level associated with each pallet and storage location is required for this purpose.

Invoice

An invoice is a document that lists the goods or services supplied, the method of delivery utilized (if applicable), and the payment conditions. A vendor sends an invoice to a buyer. In certain instances, the buyer has a specified number of days to complete the transaction. The buyer may have already paid for the specified goods or services, in which case the invoice serves as a receipt.

Lead Time

A lead time is the amount of time it takes to complete a procedure from beginning to finish. The planned time from pick-up to delivery in the context of logistics is referred to as the lead time.

Companies strive to shorten lead times in order to simplify operations and increase customer satisfaction. In the case of logistics, a shorter lead time allows for faster delivery of client orders.

Less Than Container Load (LCL)

Less Than Container Load, as the name suggests, is a phrase used to indicate a tiny cargo that cannot fill a whole container. In other words, a carrier or shipping firm combines several shipments to be carried in a container as a single cargo.

Typically, the contents in the container are owned by several shippers with separate Bills of Lading (BOL). In contrast to Full Container Load (FCL), all items in a container are owned by a single individual with a single BOL.

Less Than Truckload (LTL)

Less Than Truckload (LTL) refers to a shipping service for modest amounts of freight. Generally, the freight put onto a truck will not take up the whole area of the vehicle, allowing capacity for additional smaller shipments.

LTL service caters to the requirements of small companies that need the transportation of products in smaller quantities. Shipping firms do this by combining numerous shipments from different customers with multiple stops. Essentially, each client simply pays for the amount of space their freight takes up.

Letter of Credit

A letter of credit, also known as a documentary credit, is a payment mechanism that protects both the exporter and importer in a sales contract. In a nutshell, a letter of credit is used to demonstrate the importer’s creditworthiness and guarantees payment of goods upon delivery. In most cases, the exporter seeks the letter of credit.

Letter of Indemnity (LOI)

A letter of indemnity is a document that releases one party from responsibility for any claims made by the other party. When commodities are carried via a hazardous route in shipping, the carrier may provide a letter of indemnification against any harm to the shipper’s goods. If this occurs, the carrier will not be responsible for any damage to the cargo that occurs while traveling along the route.

LIFO

LIFO is an acronym that means:

1. Last In / First Out: a technique of accounting used to manage a company’s inventory. LIFO implies that the most recently purchased or produced goods are sold first.

2. Liner In / Free Out: This is the freight rate that includes the expenses of loading cargo onto a vessel at the departure port.

MAWB

MAWB is an abbreviation for Master Air Waybill. When a carrier receives a cargo to be delivered to a specified place as stipulated in the shipping conditions, the paperwork is given to a freight forwarder.

In most cases, the shipping process begins with a shipper delivering items to a forwarder. The items are subsequently delivered to the carrier business by the forwarding company. The forwarder issues the HAWB – House Air Waybill – upon receipt of the cargo from the shipper. MAWB is issued by the carrier on the opposite end of the procedure.

Net Weight

The net weight of an item/product is the weight of the item/product less the weight of the packaging or container. Net weight is the weight of all the items put into a container less the weight of the container.

Non-Containerised Cargo (NCC)

Non-Containerised Cargo is defined as items transported in parts without the use of a container. These items are transported in crates, bags, boxes, drums, and barrels, and their sizes/dimensions are very big. Break bulk is another name for NCC.

Order Management

Order management is the process of organizing the processing of client and purchasing orders. These clients may be both corporate clients and end consumers. In general, order management software is used by both small companies and big organizations since it can support the whole process from quote to billing.

Within a short period of time, the order management system delivers the essential information for a good judgment on the acceptance or rejection of a client order. It is linked to other business divisions via different interfaces, ensuring rigorous and cross-departmental processing of client orders and purchasing orders. This processing would not be feasible in a time- and cost-effective way without efficient order management.

Outbound Logistics

The transportation, storage, and delivery of products to consumers or other companies is referred to as outbound logistics. It is concerned with products sales (out of the business), i.e. the flow of goods from the manufacturing line to the end customer.

Outbound logistics is the process of packing and delivering client orders utilizing specialized or multimodal transportation. The influx of products from suppliers into the business, on the other hand, is referred to as “inbound logistics.”

Outsourcing

The transfer of entrepreneurial activities and structures to external service providers is known as outsourcing. In a nutshell, the word refers to a contract between two businesses in which one firm employs another to do specified duties on behalf of the hirer. It may also refer to the transfer of employment to lower-cost subsidiaries.

Outsourcing is mostly utilized by businesses to reduce costs, increase efficiency, and enhance the quality of products or services. Outsourcing may also help a company’s strategic placement in the market.

Outsourcing is now utilized in virtually every aspect of business. It is mostly used in marketing, accounting, customer service, and information technology. In general, any time-consuming activities may be delegated.

Overcarrier

An overcarrier is a shipping firm that participates in a pool arrangement and carries more goods than its legal, allocated amount. The undercarrier is the inverse. An overcarrier must pay an undercarrier in the pool arrangement.

Package

A package is the amount of items that will be delivered. The items are not carried separately, but rather as a unit on a pallet. Crates, pallets, wire mesh pallets, roller containers, and other loading equipment are examples of this. Each shipment requires its own shipping paperwork. During the shipping process, a cargo is often assigned a unique identity, allowing it to be monitored and traced.

In practice, a package is often known as a parcel or a packet. Several packing components are joined to create a completed product with the assistance of exterior packaging and loading aids. The package is the same as the shipping unit in this respect.

Pallet

A pallet is a flat (typically wooden) framework used for carrying products, storing items, or conveying freight.

Pallet Truck

A pallet truck is a tool used to lift and move pallets. It is often used in warehouses to transport items inside the boundaries of the facility. Pallet truck may also be referred to as a pallet pump, pump truck, or pallet jack.

Part Load

A portion load is defined as items that only partly fill a truck. In essence, the cargo is larger than a Less Than Truckload (LTL) shipment. Furthermore, the cargo cannot completely occupy a vehicle, thus its capacity is much smaller than that of a Full Truckload (FTL) shipment.

Partial Shipment

A partial shipment occurs when an order is delivered in more than one shipment. It implies that when a customer purchases products, they are not all delivered at once, but rather are given to the buyer in installments. A partial shipment must be agreed upon in a letter of credit by the customer.

Partial Pallet

A partial pallet is one from which a portion of the load has been removed. Partial pallets are units that have been broken off during order picking and are left behind when smaller units are purchased as full packages.

A partial pallet is one that does not include the typical goods, but rather a limited number of items of a certain kind. It is a picking amount that is less than the size of a packing or staging unit. Because the handling of partial pallets varies significantly from that of complete pallets, they are often kept in a separate storage facility, known as the picking warehouse.

Pick-up

When items are collected, they are picked up at a particular collecting location, transported, and then delivered.

POD

The acronym POD stands for:

1. Port of Discharge: a location where a ship discharges or unloads part or all of its cargo.

2. Proof of Delivery: a document signed by the receiver confirming the receipt of goods in good condition.

Port

1. A port is a facility for loading and unloading products that is usually located on the coastline. It is also used to pick up and drop off passengers.

2. A port is a nautical word. It denotes the whole left side of a vessel while standing at the back and facing the front. The location of the port remains constant regardless of which direction sailors are facing (always at the left side of the vessel). The opposite of port is starboard, which refers to the whole right side of a ship.

Port of Loading (POL)

A port of loading is a location where products are loaded onto a ship, secured, and prepared for shipment. POL is also known as the port of departure.

Prepaid Freight

Prepaid Freight refers to the transportation costs that the shipper must pay before to shipment. The money is non-refundable in the case of non-arrival. In the event of damage or loss, the shipper may be entitled to a reimbursement.

Refrigerated Trucks

Refrigerated trucks are specially built vehicles that carry perishable commodities such as fruits, vegetables, seafood, meat, and so on, as well as medicinal supplies. These goods are refrigerated or frozen to keep them fresh throughout shipping.

Reusable Pallet

A reusable pallet is a transport pallet that may be used many times to carry and secure products. The majority of reusable pallets are constructed of wood or plastic. The Euro-pallet is the most well-known and widely used reusable pallet.

A one-way pallet, as opposed to a reusable pallet, is designed for one-time usage while transporting products. Furthermore, since it is not regulated, the one way pallet comes in a variety of forms and sizes.

Road Freight

The physical process of carrying goods by road using motor vehicles is known as road freight. In this context, a road is a path or route that connects the point of departure with the point of destination.

The expense of maintaining roads is lower when compared to other modes of transportation such as sea and air. In certain instances, road freight is the sole method of transportation accessible in/to rural regions when other modes of transportation are unavailable.

Roll On / Roll Off (RO/RO)

Roll On / Roll Off boats are specially built vessels for carrying goods with wheels (e.g., automobiles, lorries, trailers, etc.). The distinct shape of these boats makes it considerably simpler for automobiles and trucks to drive in and out (loading and unloading) without the need of cranes.

Shipment

Shipment may refer to either the act of shipping products through all means of transportation or simply to the total amount of items shipped.

Shipper

A shipper (also known as a consignor) is a person or business that organizes and transports items from one location to another. Unless otherwise specified in the transport contract prior to shipping, the shipper is generally responsible for the cost of freight.

Storage

Storage is a charge imposed by the port authorities on a shipping line if their container remains in the port or terminal beyond the laytime allowed to clear them.

To put it simply, storage is a cost paid on every container that is not moved from the storage space/terminal when it is ready to be loaded onto a truck or a vessel.

Storage is not the same as detention or demurrage. The port authority charges a storage cost, while the shipping firm charges a detention and demurrage fee.

Supplier

A supplier is a person or business that sells or delivers products or services to another person or organization. Every commercial transaction involves two parties. The first party is a vendor, while the second is a buyer. The selling is often referred to as the provider, while the receiver is referred to as the customer.

The provider produces products and distributes them via a distribution channel. The products are then sold to a wholesaler until they reach the ultimate customer. In certain industries, the supplier is referred to as a vendor.

Supply Chain

A supply chain is a network of organizations, activities, procedures, dates, and resources that convey a product or service from the provider to the consumer. The supply chain for goods comprises production facilities, warehouses, distribution centers, computer systems, and software.

Supply Chain Management (SCM)

The effective integration of processes, facilities, and technology involved in the flow of products and services from the supplier to the customer is referred to as supply chain management. Modern supply chain management is the effective coordination and production of goods or services in the right location, at the right time, and at the lowest possible cost.

Tender

A tender is a formal proposal or request made to suppliers by a business or, in certain cases, the government. In general, a tender is a request for vendors to bid on the delivery of a particular project, product, or service.

The tender is often given to complete a project at the lowest feasible cost and in the shortest amount of time. The bidding procedure is governed by legislation to guarantee seamless and fair competition among bidders.

Terminal

A terminal is an area or place that acts as a route for transport processes (loading and/or unloading goods) or as a transition point for people.

Terminal Handling Charges (THC)

Terminal Handling Fees are the same as Container Service Fees (CSC). THC are costs paid by shipping terminals for the storage and placement of containers before to loading on a vessel. Charges often include cargo handling, container unloading, stacking, and crane service.

Third-Party Logistics (3PL)

Third-party logistics, or 3PL, is a system in which an organization (a third party) offers logistical services to businesses in need of inventory management and delivery. When a business (customer) lacks a logistics department, it typically seeks the assistance of a third-party logistics provider (3PL). In turn, the 3PL handles some or all logistics-related tasks for the customer.

The following are some of the activities performed by third-party logistics:

• Storage of inventory
• Inventory control
• Transportation of goods
• Distribution and shipping
• Clearance/declaration of customs
• Packaging and warehousing, among other things (depending on the arrangement)

Fourth Party Logistics (4PL) was developed to supplement the operations of 3PL businesses. The client’s supply chain operations are controlled and managed by the 4PL business.

Tracking and Tracing

Tracking and tracing is a method used by carriers or courier firms to track the movement of packages or objects while they are being transported. The items are recognized and data is sent to the central processing system at each processing site. This information is then utilized to provide shippers with a status/update on the whereabouts of the items.

Transhipment

Transhipment is the process of moving a cargo or container from one method of transport to another while it is on its way to its ultimate destination. A cargo transfer from a ship to a truck or rail is an example.

Transhipment may occur at many locations along the transportation chain, increasing the expenses for the business delivering the goods. Transhipment may also take place inside the business. As an example, consider how products are placed into a forklift from the production line.

Transit Time

Transit time is the amount of time it takes for a cargo to be delivered once it has been picked up from its place of origin. It is the amount of time spent transporting things from one location to another.

The travel time varies depending on the route and form of transportation utilized. The most precise time is measured in hours and days.

Two Party Logistics (2PL)

A Two-Party Logistical, often known as 2PL, is when a manufacturer hires a transport provider as a subcontractor to complete a logistics job. The manufacturer is responsible for the follow-up. They have a short-term and cost-driven relationship, with the transport provider working according to the client’s instructions.

Unit Cost

A unit cost is a cost spent by a business to assemble and/or manufacture, store, and sell one unit of a certain product. This simply refers to the amount of money spent by the business from the time a product is manufactured until it reaches the point of sale.

This cost is an accounting metric that incorporates both fixed and variable costs. The metric may be used to assess how efficient a company’s operations are.

Universal Product Code (UPC)

A Universal Product Code is a code that is labeled on a goods packaging to readily identify what kind of product is within. This code consists of a barcode (a sequence of machine-readable unique black bars) and a series of digits.

The UPC is used not just to identify goods, but also to monitor inventories inside a warehouse. Furthermore, the code is read at the point of sale in retail shops to provide product information.

Unloading Point

An unloading station is a location where products arrive at their destination and are unloaded from a truck or vessel. The unloading point may be a port, a warehouse, or a section of a business structure utilized for commodities processing.

In general, the majority of unloading points include various equipment for removing cargo from incoming trucks or ships. There may be two or more equipment available, such as a ramp, cranes, filling supports, or conveyor systems.

Value Added Logistics (VAL)

Value Added Logistics are modest but valuable services provided by a shipping business to its customers in addition to their regular services. To remain ahead of the logistics competition, carriers go above and beyond what they initially provide to guarantee that goods are delivered in the correct quantity and at the correct time.

Value-Added Services

Non-core services are referred to as Value Added Services in the industry. Examples of logistics include (but are not limited to) packing services and picking up items from the customer’s location.

Vendor

A vendor is a business or person who sells products or services. This word is also known as the provider.

Visibility

The word “visibility” is used in supply chain management. Visibility in this context refers to the ability to view comprehensive information on various processes within a supply chain. Real-time visibility happens. Transparency facilitates process analysis and improvement.

Waiver

A waiver is a shipping document required when moving products to or through nations in Central and Western Africa. Before any goods arrive at the port, the waiver must be submitted.

The waiver includes information on the exporter or importer, the amount of the cargo, the method and type of shipping, the freight cost, and the name of the vessel.

Warehouse

A warehouse is a specific location or place that is used for the administration and storage of products. These items may be raw materials, components, or completed things.

The warehouse is mostly used by manufacturers to keep completed products prior to distribution for sale. Retail and wholesale businesses store products in warehouses to rapidly replace empty shelves.

Warehouse Management

The control of day-to-day warehouse operations is referred to as warehouse management. Shipping, receiving, putting-away, and picking of products are all part of the activities. Warehouse management is, in essence, the interaction between goods receipt and goods issuance.

In general, warehouse management aids in the organization of space, the management of inventory, the improvement of warehouse performance, the use of appropriate warehouse logistics, the facilitation of products movement, and so on. As a consequence, it guarantees that all warehouse operations, including the recording of all changes in warehouse stock, operate as smoothly and cost-effectively as feasible.

On the software side, warehouse management is often performed with the assistance of a warehouse management system. This is a system that handles stock relationships such as batch, article, assortment, and storage location.

Warehouse Receipt

A warehouse receipt is a document that lists the items that have been placed at the warehouse. The warehouse receipt is given after the warehouse keeper acknowledges that the incoming items have been accepted/delivered for storage. In general, the warehouse keeper is in charge of commercial warehousing and storage of products.

Waybill

A waybill is a kind of document that is frequently used in consolidated consignment transportation. A Waybill not only identifies the specific goods, but it also notifies the person receiving the document about the costs that must be collected from the receivers. Waybills are often sent through remote data transfer.

Workflow

A workflow is a set of technically, functionally, and physically linked work operations or business activities that take place at a workstation and lead to a certain objective. It is essentially a methodical repeating pattern of an organization’s operations. In general, the process is divided into sub-areas such as job assignment and the development of transfer rules.

Workflow is not an industry word, although it is used across all businesses and fields. Whether in logistics, sales, or manufacturing, a well-organized, regulated, and meticulously planned workflow is essential for reducing mistakes and identifying their causes. A workflow management system generates work process coordination in bigger groups, ensuring better clarity in planning, resource needs, and cost computation.