Logistics Glossary Page 2

Know your Logistics Industry better

List of Key Terminology

Permit: A trailer truck transit permit that countries use between each other. Trailer Trucks mutually pay an annual Transit Permit fee. Trailer trucks that obtain the permit are allowed to carry transit cargo between countries.


Picking Area: A pre-determined place for each item to be used in picking, placing and replenishment operations.


Pick-to-Light: An electronic system with an LED screen that shows the personnel the number of items to collect from certain addresses during product picking process. It sends the collection result to the warehouse management system by the use of the buttons on it.


Port: A harbour where ships may anchor and unload or receive cargo.


Priority Air Freight: Reserved Air Freight or air express service where shipments have a priority after mail and small packages. The shipper pays a premium charge for this service.


Product Picking: Collecting the products from their address at the warehouse according to customer request.


Purchasing: Transfer of ownership of goods or services from the seller to the buyer with the required quality, time and amount, at a suitable price, and appropriate delivery and payment plan, as well as additional conditions if necessary.


Put Away: Operations that involve receiving goods at the warehouse, physically moving them to their stock locations in the warehouse, and then matching identifications of the shipping case and address in the system.


Put-to-Light: An electronic system with an LED screen that shows employees the number of items to drop at certain addresses during the product sorting process. It sends the sorting results to the warehouse management system.


R2 Document: A type of authorization document that international logistics operator organizers must possess pursuant to the Law on Road Transportation. They remain valid for five years, provided the provisions of the Law have not been violated.


Rack: A stable or adjustable storage equipment made of metal, wood or plastic that is used to achieve order in the warehouse, put products on, or utilize the height.


Rack-Supported Warehouse: A type of building in which the rack system is used to store goods, as well as the warehouse building’s bearing system. After the rack system is built, it is covered with facade and roof panels, and mechanical and electrical systems are built integrated to the rack system. Thus, in contrast to classic warehouse shelves, rack-supported warehouse shelves cannot be dismantled and moved or placed somewhere else without affecting the building.


Rail Consignment Note: A receipt document that is used in transportation on trains. It does not serve as a negotiable instrument.


Receiving Dock: The area where receiving operations are conducted for the goods that arrive at the warehouse.


Receiving: Receiving the goods that arrive at the warehouse. It involves the process of unloading the goods and taking to the goods receiving area, comparing the recorded and physical information, taking the goods into the warehouse, and taking record.


Replenishment: In-warehouse transfer that is performed to ensure availability of materials in different packing forms and/or storage locations during the storage process.


Reserved Locations: Special locations such as a cross-docking area that is pre-determined to be used for placing, collection or other purposes.


Return to Origin: Return of the imported good to the country of origin when they do not meet the qualifications.


RFID: An automated recognition system, which consists of a microchip with an antenna and a reader; is integrated with a software-hardware system; and for which data communication between the label and reader is provided through radio waves.


Road Transportation: Transportation model consisting of transportation of the goods by using a road route in the whole process from the departure location to the destination.


Roller Conveyor: An equipment that moves products or shipping cases (pallets, baskets, etc.) placed on it through the rolling motion of cylindrical casts.


Route: The path that people, goods, vehicles, services or information will follow between the predetermined start and end points.


Routing: Establishing the order and route from the starting point to the destination points for the transportation operation.


Second Day Air Freight: Air Freight shipments that are not overnight or time sensitive and can be delivered at an economic cost. Delivery service is as a rule, delivery on the second business days.


Seal: A type of locking system that is put in place on containers after the vehicle has been cleared of customs and shows that it has not been opened without permission.


Shipment: Taking orders out of the warehouse to be delivered to required locations along with official documents by sorting them according to certain criteria such as delivery date, location, loading vehicle, route, amount, etc.


Shipper: The party or company requesting goods to be transported.


Shipper’s Letter of Instruction: A form used by the shipper authorizing a carrier to issue an air waybill or (BOL) bill of lading on the shipper’s behalf. It contains all details of the shipment and authorizes the carrier to transport the cargo on behalf of the shipper specific instructions.


Single Window: Single Windows are platforms that are government mandated and allow for the submission of information to fulfil regulatory requirements between economic operators and government authorities. A Single Window is a single-entry point for data, and data should only be submitted once.


Storage: A place in which products/materials are stored and kept; or storage/holding service and the fee paid for this service.


Storeroom: The place that is allocated to store special materials.


Supplementary Policy: A document that is drawn up to state the changes that occur during the term of the insurance policy.