Logistics Glossary Page 3

Know your Logistics Industry better

List of Key Terminology

Supplier: A company that provides goods and services.


Supply Chain: All of the operations that encompass supplier-to-customer movements and involve operations regarding organizations, people, technology, and so on. It is a chain that connects a multitude of companies.


Supply: All research, selection, planning, stock control, purchasing, shipping, receiving, assessing, and similar operations that are required to acquire the needed machinery, equipment, raw materials, materials, parts, semi-finished products, products and services from the suitable supplier.


Sustainable Warehouse: Areas that can provide services for an extended period of time by carrying out activities with awareness towards the environment and society.


Tare Weight: The weight of packing and containers without the goods to be shipped.


Tariff: A general term for any listing of rates or charges for the movement of goods.


Temporary Importation: The process of bringing raw materials, semi-finished products or products from abroad and turning them into semi-finished products or products and sending them abroad by adding/not adding different materials in them, or by performing/not performing value-added operations (workmanship, etc.) on them.


Terminal Handling Charges (THC): Handling fee at the port.


Third Party Logistics (3PL): Expert companies that undertake to carry out customers’ logistics operations, primarily transportation and warehousing. First, second, and third parties mean the seller, buyer, and the company that handles some of the services between the buyer and seller, respectively.


TIR Carnet: A customs transit document that allows transportation under a procedure from the customs office at the departure location to the one at the arrival location. It has four, six, 14 and 20-sheet versions according to its number of pages.


Traceability: The process of obtaining and reporting on the path a product follows from manufacturing to consumption in the whole supply chain.


Trade Facilitation: The simplification, modernization and harmonization of export and import processes. Trade facilitation looks at how procedures and controls governing the movement of goods across national borders can be improved to reduce associated cost burdens and maximise efficiency while safeguarding legitimate regulatory objectives.


Trailer: A load-carrying road transportation vehicle, which is driven by a tow-truck and is built according to the load it will haul, and can park on its own tires.


Transit: A journey from one location to another.


Transfer: The process of unloading the load that arrives on a vehicle and loading it onto another vehicle for shipment shortly without requiring any other special operation.


Transportation: Transporting people and loads between certain points.


Transportation Security Administration (TSA): On November 19, 2001 Congress enacted the Aviation and Transportation Security Act (ATSA) creating the Transportation Security Administration. The ATSA transferred all FAA rules governing civil aviation security, including IAC’s to the TSA. The TSA deals with all modes of transportation: air, highway, rail, & sea.


Truck Load (TL): A shipment of freight that is loaded to a trailers maximum capacity either by bulk or maximum weight.


Tugboat: A motorized sea vessel that assists large ships to manoeuvre fast and safely on port areas.


Ultimate Consignee: The individual who is the one receiving goods for the designated end use. A customs broker cannot be listed as the ultimate consignee unless they own the merchandise or there is not U.S. buyer and the document shows the brokers premises as the location to which the merchandise is to be delivered.


Unit Load Device (ULD): Any type of container or pallets used to consolidate packages of freight for mechanical handling.


Upper Deck: The higher or highest deck on a ship or airplane.


Value Added Operations: Operations such as labelling, packaging, folding, temperature measurement, transfer, mixing, combining, sorting, palletizing, light assembly, returns, destruction, adding user guide, barcode transactions, maintenance and repair, and so on that are performed upon customer demand at the warehouses.

Value Added: A value (labour, depreciation, profit, tax and liability total)


Value-Added Tax (VAT): A fee levied on all goods and services as goods and services go through the production chain, from the raw material to final consumption. The amount taxed is the amount of value a particular step in the production chain added to the value of the goods or service. Volume Rate – A freight rate assessed with a specific volume of freight based upon the presumption it will increase over a period of time.


Vertical Storage System: Mechatronics system that contains an elevator scheme and trays in each module. It allows for storage with vertical transportation on the elevator system by placing the goods or transportation cases (basket, parcel, etc.) on trays. It makes efficient vertical storage possible by minimizing the space between the trays, as it uses the sensors within to determine the height of the goods placed on the trays.


Volumetric Weight: The value that is used to calculate the cargo shipping fee by multiplying the three dimensions (width, length and height) of the cargo such as package, case and parcel, and then dividing that number by 3,000.


Warehouse Management System: A system that records and reports on the entire process, from the receiving of goods to shipment at the warehouse (including yard management), in computers by using automatic recognition technologies; provides guidance to employees by making decisions within the process on matters such as address determination and making allocations by using its internal algorithms; and allows resource tracking and planning.


Warehouse: Secure indoor or outdoor area in which products are placed for a certain time according to need.


Written Report: Documents (receiving report, count report, missing/excess report) signed by officers to establish a certain incident or case.


Yard Management: Facilitating and monitoring compliance with defined processes and rules (traffic flow, use of parking areas, preserving the security chain, etc.) by all vehicles and persons entering the boundaries of the logistics facility.