Glossary

See Federal Transit Administration (FTA).

See Full Truckload (FTL).

See Free Trade Zone (FTZ).

A manufacturer that uses raw materials to make other products, such as steel rods into nuts and bolts or paper into bags and boxes.

Physical buildings, manufacuring plants, distribution centers, service centers, and related equipment.

A step-by-step process analysis tool to identify possible failures in a design, a manufacturing or assembly process, or a product or service.

The profit level that allows a carrier to realize a rate of return on investment or property value that regulatory agencies deem acceptable for that level of risk.

In logistics, the estimated market value of a carrier’s property. The calculation includes the original cost minus depreciation, replacement cost, and current value.

The federal agency that administers U.S. safety regulations governing air transportation, including the safety of air shipments and regulating air traffic.

Guidelines developed for use by the federal government but also used by many in the private sector voluntarily.

The federal agency responsible for regulating the U.S. international ocean transportation system for the benefit of U.S. exporters, importers, and consumers.

An agency that provides financial and technical assistance to local public transit systems, including safety and technology research. https://www.transit.dot.gov/

Inventory that is kept at locations outside of the manufacturing plant.

Parts that are kept at locations outside of the manufacturing plant.

See After-Sale Service.

Public warehouse on the property of the goods’ owner but under the custody of a bona fide public warehouse manager. Typically used for storing perishable goods.

The percentage of order items found by the picking operation. Result indicates how well the inventory management system is keeping track of stock levels.

Measures the percentage of orders that are shipped within 24 hours of being released. Helps businesses compare make-to-stock schedules with customer demand.

The highest level of an assembled product that is shipped to customers. Typically used when products consist of many possible features and options.

A schedule of end items to finish the product for specific purchasers' orders in a make or assemble-to-order environment. Sometimes called a finishing schedule.

The last stopping point for a particular shipment. Used most often in relation to freight shipments.

Provide service for the final leg of a shipment. Usually applied to deliveries made to homes and sometimes includes set-up type services for the product delivered.

In logistics, an equipment-leasing arrangement that provides the lessee with the financing for leased equipment such as trailers and tractors.

For U.S. motor carriers, required insurance to cover bodily injury and property damage (not cargo). Minimum is $500,000 per incident but higher for some cargo.

Products that have completed the manufacturing process, been packaged, stored, and are ready for distribution.