Glossary

All expenses related to holding unsold goods, including warehousing, labor, transportation, taxes, insurance, depreciation, shrinkage, and opportunity costs.

Material moving between two or more locations, usually separated geographically, and in a carrier's possession.

The process of ordering, storing, using, and selling a company's inventory, including raw materials, components, finished products, and warehousing materials.

Software that assists in managing the process of determining the optimal quantity of inventory at each stage along with the timing of its distribution and delivery.

A ratio that divides the cost of goods sold by the average level of inventory on hand. Measures how quickly a company's inventory has been sold during a time period.

See Inventory Turnover.

The speed with which products move through a defined cycle (i.e., from receiving to shipping) and one indicator of operational efficiency.

The number of days of inventory on-hand at a specified time. Often expressed as the average days a company holds its inventory before using or selling it.

A document, prepared by the seller, that shows goods sold or shipped and the amounts for each. Documentation used to support payment for goods or services.

Systems that use the sensors on Iot (Internet of Things) devices to track cargo and store the data on a secured platform.

A motor carrier that may provide service utilizing any route rather than one limited to having operating authority only for specific routes.

The carrier whose name is printed on the bill of lading, with whom the contract of carriage exists, and who is responsible for ensuring the goods are delivered.

A manufactured or purchased part, material, sub-assembly, or product, typically tracked and managed individually from receipt to final delivery.

See Just In Time (JIT).

See Just in Time II (JIT II).

See Joint Supplier Agreement (JSA).

Lean manufacturing principle where machines automatically stop working upon detecting an abnormal condition & operators fix the defect to prevent recurrence.

In logistics, when the cost a company incurs to produce one product entails producing another. An example is the backhaul of an outbound shipment.

Combined rate over a route that requires two or more carriers to transport the shipment. Often used when shipping via multiple mode types, such as ship and truck.

A contract between two or more businesses that outlines the specific services that will be provided by each business, including objectives, targets, and incentives.

An inventory management strategy designed to minimize storage and improve efficiency by ensuring that materials are only delivered when they are needed.

An inventory management strategy where the vendor manages its own inventory within a customer’s facility, including tracking and ordering product when needed.

Seeks to optimize efficiency by minimizing the time required to source, handle, produce, transport, and deliver products in order to meet customer requirements.

See Key Performance Indicator (KPI).

A continuous improvement strategy that involves all employees and recognizes that small incremental changes can create significant impacts over time.