Glossary

In logistics, supply chain members (i.e., suppliers, manufacturers, distributors, retailers) who work together to manufacture, distribute, and sell a specific product.

Companies and individuals that participate in the flow of goods and services from the raw material supplier and producer to the final user or consumer.

The shipment weight used to determine freight charges. It may be the dimensional weight, gross weight, or net weight of the shipment.

An area, in or near a warehouse, where battery chargers and extra batteries are kept to support a fleet of electrically powered materials handling equipment.

Trailer or a frame with wheels and container locking devices on which a container is placed in order to move the container over the road.

A truck or van driver who drives a local route as opposed to a long-distance or intercity route. Usually delivers goods within a metropolitan area.

A demand made upon a carrier for a loss, damage, delay, or overcharge due to the carrier's alleged negligence.

Per US CFR part 369.2 Classification of motor carriers: Class I. Annual carrier operating revenues (including interstate and intrastate) of $10 million or more.

Per 49 CFR part 1201.1-1, a railway carrier having annual carrier operating revenues of $900 million or more. In 2022 there were seven Class I railroads in the U.S.

Per US CFR part 369.2 Classification of motor carriers: Class II. Annual carrier operating revenues (including interstate and intrastate) of $3 to $10 million.

Per US CFR part 369.2 Classification of motor carriers: Class III. Annual carrier operating revenues (including interstate and intrastate) of less than $3 million.

Freight classes are based on shipment density, ease of handling, value and liability. Generally, the lower the NMFC class number, the lower the freight charge.

The ratings assigned to cargo based on publications such as the Uniform Freight Classification (railroad) or the National Motor Freight Classification (motor carrier).

A railroad yard with multiple tracks used for assembling freight trains and where railcars are grouped together to form train units.

A document that verifies a shipment can be imported after all legal requirements have been met. Also, the max height allowed to tranverse bridges, tunnels, etc.

A mediator between any two entities or parties engaged in a financial transaction. Designed to ensure that the transaction goes smoothly for buyer and seller.

A Manufacturing Resource Planning system used for production planning and inventory control with a feedback feature for dynamic adjustments during processes.

A strategic relationship where the organizations involved choose to share common aspects of their business, such as supply chain coordination, for mutual benefit.

See Vendor-Managed Inventory (VMI).

Produces or packages goods for other companies, usually under the other company’s label or name. Often used in the consumer packaged goods and food areas.

Water carriers that provide service along coasts serving ports on the Atlantic Ocean, Pacific Ocean, and the Gulf of Mexico.

Numeric or alphanumeric text for exchanging commonly used information such as commodity codes and carrier codes.

The process of establishing a new standard. Also, to reduce to a code.

A business practice where multiple trading partners work together in supply chain (and other) planning to improve customer service and reduce logistics costs.

In trucking, specifies the carrier to be paid upon delivery by the consignee. Is not applicable for ocean freight - not an Incoterm and should not be used.