Supply Chain Glossary & Logistics Terminology

A term referring to ships designed to fit within the dimensions of the Panama Canal, optimizing their capacity for transporting goods between oceans.

A package or shipment of goods sent through a carrier, often smaller than freight shipments, used in both domestic and international shipping.

The process of transporting packages to customers, typically involving small to medium-sized shipments, managed by courier or delivery services.

The period of increased demand for goods and services, often occurring during holidays or special events, requiring logistics companies to enhance capacity and efficiency.

A daily fee charged by carriers or service providers for the use of equipment or for delays incurred, commonly applied to trucking and freight services.

The process of tracking and analyzing logistics performance metrics, such as delivery times and costs, to evaluate efficiency and identify areas for improvement.

A logistics process that involves selecting items from inventory to fulfill customer orders and packing them for shipment, ensuring accuracy and efficiency.

A program implemented at ports to manage congestion and improve cargo flow by charging fees for certain hours of operation, encouraging off-peak deliveries.

A sign or label displayed on vehicles transporting hazardous materials, providing essential information about the type of material and safety precautions.

The situation where ships and cargo experience delays due to limited space, staffing, or equipment at ports, impacting logistics and supply chain efficiency.

A designated location where goods are legally allowed to enter a country, subject to customs inspection and clearance before distribution.

The transportation of goods from the shipper's location to the main transportation hub, often before they are loaded onto the primary mode of transport.

Advanced analytics system using AI/ML to forecast supply chain events and optimize operations.

The use of data analysis and statistical algorithms to forecast future logistics trends and customer demands, enabling better planning and decision-making.

A shipping arrangement where the shipping costs are paid by the sender in advance, often reflected in the terms of sale or shipping agreement.

The process of sourcing and purchasing goods and services needed for business operations.

Blockchain-based system for tracking the complete history and origin of products in the supply chain.

The process of ensuring that products meet specified standards and requirements, involving systematic inspections and tests to detect defects and maintain quality throughout production and logistics.

Application of quantum computing for complex supply chain optimization and risk analysis.

A controlled period during which goods are held to prevent the spread of pests or diseases, typically applied to food, plants, and animals entering a country, ensuring compliance with health regulations.

The duration goods spend waiting in line for processing or transportation, impacting overall efficiency in logistics and supply chain operations due to delays in movement.

A technology that uses radio waves to automatically identify and track tags attached to objects, improving inventory management and logistics efficiency.

The transportation of goods using trains, offering a cost-effective and efficient method for moving large volumes of cargo over long distances, especially in bulk.

The process of comparing transportation rates and service levels against industry standards or competitors, helping shippers evaluate their costs and make informed decisions.

A document provided by a carrier confirming the agreed-upon freight rate for a shipment, detailing terms and conditions to avoid misunderstandings during transportation.

The use of technology to monitor the location and status of shipments throughout the logistics process, providing visibility and allowing for timely updates to stakeholders.

A refrigerated container or truck used to transport perishable goods, maintaining specific temperature conditions to ensure the integrity of products during transit.

An electrical connection used to power refrigerated containers while they are stationary at a port or facility, maintaining the required temperature for sensitive cargo.

A transportation company that operates within a specific geographic area, offering services tailored to local markets and providing an alternative to national carriers.

The process of managing the flow of products returned from customers back to the manufacturer or retailer, focusing on return processing, recycling, and waste management.

The strategic approach to overseeing reverse logistics processes, including returns, repairs, and recycling, to enhance efficiency and minimize costs in handling returns.

The process of repairing or modifying products that do not meet quality standards, ensuring they are brought up to specifications before being sold or distributed.

The systematic identification, assessment, and mitigation of risks in the supply chain, ensuring business continuity and minimizing disruptions to operations.

A shipping method for vehicles and heavy equipment that are driven onto and off vessels, facilitating efficient loading and unloading without the need for cranes.

Software robots that automate repetitive supply chain tasks and processes.

The use of automated robots for warehouse operations, including picking, packing, and sorting.

The process of determining the most efficient paths for transporting goods, taking into account factors like distance, traffic, and delivery schedules to minimize costs and time.

A document that outlines preferred transportation routes, carriers, and service requirements for shipping goods, aiding in consistency and efficiency in logistics operations.

The coordination and management of all activities involved in sourcing, procurement, production, and logistics to optimize efficiency and meet customer demands.

A process reference model that provides a standardized framework for evaluating and improving enterprise-wide supply chain performance.

A unique identifier assigned to each product or item in inventory, allowing for effective tracking, management, and sales analysis within the supply chain.

A contract between a service provider and a customer that outlines expected service levels, including quality, availability, and responsibilities for logistics services.

A cloud-based software delivery model that allows users to access applications via the internet, offering scalable logistics solutions without the need for extensive IT infrastructure.

Additional inventory held to mitigate the risk of stockouts due to uncertainties in supply and demand, ensuring availability of products for customers.

Direct greenhouse gas emissions from sources owned or controlled by the organization, such as company vehicles and facilities.

Indirect greenhouse gas emissions from purchased electricity, steam, heating, and cooling consumed by the organization.

All indirect emissions (not included in Scope 2) that occur in the value chain, including both upstream and downstream emissions.

A device or material used to secure containers, trailers, or packages, ensuring that they remain tamper-proof and providing assurance of the integrity of the contents.

A document issued by a carrier for the transportation of goods via sea, serving as a receipt and evidence of the contract of carriage, but not as a title to the goods.

The ability to track and monitor shipments throughout the logistics process, providing real-time information on the location and status of goods in transit.

An individual or company that sends goods or cargo, responsible for arranging transportation and ensuring compliance with shipping regulations.

A document required by customs for exporting goods, providing details about the shipment, its value, and the recipient, ensuring compliance with export regulations.

A standardized reusable container used for transporting goods by sea, rail, or truck, designed for easy handling and stacking during logistics operations.

A detailed list of all cargo aboard a vessel or vehicle, serving as a receipt and used for customs and regulatory purposes during transportation.

A term used to describe transportation of goods over relatively short distances, often requiring different logistics strategies compared to long-haul shipping.

The movement of cargo by sea over short distances, often used to bypass congested land routes, enhancing efficiency in regional logistics networks.

A shipping arrangement where a shipper rents a specific amount of space or time on a vessel, providing flexibility for transporting goods based on demand.

The process of organizing inventory in a warehouse or distribution center for optimal accessibility and efficiency, enhancing order fulfillment speed and accuracy.

Self-executing contracts with terms directly written into code on blockchain, automating supply chain agreements and transactions.

A warehouse that uses advanced technologies like IoT, AI, and automation to optimize operations.

A method of transporting intermodal containers stacked on railcars, maximizing space and efficiency in rail freight operations, particularly for long-distance shipping.

The process of identifying and selecting suppliers to meet long-term business objectives, focusing on cost, quality, and reliability in procurement.

A systematic method of evaluating and rating suppliers based on various risk factors, including financial stability, operational capability, and compliance.

The network of all entities involved in producing, handling, and distributing a product, from raw materials to end customers, encompassing all logistics activities.

The examination and evaluation of a supply chain’s efficiency and effectiveness, identifying areas for improvement to optimize performance and reduce costs.

Professional services that provide expertise in optimizing supply chain processes, strategies, and operations, helping businesses enhance efficiency and competitiveness.

A centralized platform that provides real-time visibility and control over supply chain operations.

The practice of protecting supply chain information systems, networks, and data from digital attacks, including measures to secure both internal operations and external partner connections.

Centralized repositories that can store large amounts of structured and unstructured supply chain data in its native format, enabling advanced analytics and machine learning applications.

Digital credentials and authentication systems for secure supply chain transactions and partner verification.

The application of engineering principles to design, optimize, and improve supply chain processes, focusing on efficiency, cost reduction, and service quality.

Financial solutions that help optimize working capital and reduce financing costs across the supply chain, often leveraging the credit rating of large buyers.

The coordination of all supply chain components and activities to work together seamlessly, enhancing efficiency, communication, and responsiveness across the network.

The process of improving supply chain performance by reducing costs, enhancing service levels, and maximizing efficiency through strategic planning and analysis.

Digital platform that coordinates and manages end-to-end supply chain processes across multiple stakeholders and systems.

The ability of a supply chain to prepare for and adapt to unexpected disruptions.

The process of evaluating how well a supply chain performs under various scenarios of disruption, helping identify vulnerabilities and improve resilience.

The ability to track and monitor the flow of goods throughout the supply chain, providing real-time data to improve decision-making and responsiveness.

A cloud-based business model where supply chain processes and technologies are provided as a service on a subscription basis, allowing companies to access advanced capabilities without large upfront investments.

Practices and strategies aimed at reducing environmental impact in logistics operations.

The development and use of packaging solutions that minimize environmental impact and ecological footprint while maintaining product protection and quality.

A standard measurement used in shipping to describe container capacity, based on the size of a standard 20-foot shipping container.

A shipping method where a single shipment occupies an entire truck, often used for larger shipments that require dedicated transport.

The weight of an empty shipping container or vehicle, used to determine the net weight of cargo by subtracting it from the total weight during transportation.

A type of trailer with flexible side curtains that can be opened to facilitate loading and unloading, offering versatility for transporting various types of cargo.

The process of introducing and integrating new technologies into logistics operations, aimed at enhancing efficiency, data management, and overall performance.

A fee charged by terminal operators for services related to loading and unloading containers, handling cargo, and managing operations at shipping terminals.

A service provider that manages logistics operations on behalf of a client, offering services such as transportation, warehousing, and inventory management.

The amount of goods or cargo moved through a supply chain or logistics network over a specific period, measuring efficiency and operational capacity.

The process of converting physical assets or documents into digital tokens on blockchain for easier tracking and trading.

A comprehensive assessment of all direct and indirect costs associated with acquiring and operating assets or systems throughout their lifecycle.

The process of monitoring the movement and status of shipments throughout the logistics process, providing visibility and updates to stakeholders.

A non-motorized vehicle designed to be towed by a truck or tractor, used for transporting cargo, with various configurations to accommodate different types of goods.

The transfer of cargo from one mode of transportation to another, such as from a truck to a train, optimizing logistics for efficiency and cost savings.

The study of how transportation impacts economic efficiency, focusing on costs, demand, and the role of logistics in trade and commerce.

Software that helps businesses plan, execute, and optimize their logistics operations, improving efficiency and visibility throughout the supply chain.

The process of sourcing and acquiring transportation services, involving negotiations with carriers and optimizing costs and service levels for logistics.

The process of transferring cargo from one vessel to another at an intermediate port, facilitating the movement of goods across different shipping routes.

A term used in freight transport to describe shipments that fill an entire truck, typically involving larger volumes of cargo and direct delivery to customers.

A container or pallet used in air freight to consolidate cargo for efficient loading and unloading, maximizing space and protecting goods during transport.