Logistic term definition
In simple terms, logistics is generally the procedure of handling how resources are attaining, storing, and transporting to their endpoints. This term is similarly widespread in the business sector nowadays, mainly by companies dealing with manufacturers. This term also refers to the management of capitals and progression along the supply chain.Supply Chain Terms.
In basic terms, logistics management’s objective is to have the proper sum of a resource or input at the correct time, getting it to the appropriate location in legitimate condition, and delivering it to the right inside or outside client.
For instance, within the regular gas industry, logistics includes managing the pipelines, trucks, storage facilities, and distribution centers that handle oil because it changes along the Supply Chain Terms. A productive supply chain and effective logistical procedures are fundamental to decrease costs and preserve and increase productivity. Poor logistics lead to awkward deliveries, disappointment to meet clientele’ requirements, and finally causes the trade to endure. So, to get a clear knowledge, we will discuss the glossary of supply chain terms.
Glossary of supply chain terms – Supply chain terminology
The “supply chain” means a method that permits a manufactured product to reach a customer in one or several steps. Consequently, a usual Supply Chain Terms network for a product consists of a resource supplier, a manufacturer, a trader, a retailer, and a customer. In brief, depending on where you are in this chain, you will possibly have an upstream or a downstream. In the same way, this chain represents taking a product from its original state to the consumer.
A few most critical logistic terms are as below.
Aircraft Pallet is a platform of standard proportions for bringing goods together, whereas protecting by nets and straps before loading as an entity onto an airplane.
All-Cargo Aircraft is an airplane for the only purpose of shipping load, instead of the combination of travelers and cargo.
Air Freight is a facility that offers for the air transportation of goods. Accordingly, this allows for declined shipping time, low damage ratios, and lower shipping charges for certain supplies.
Aviation and Transportation Security Act (ATSA) is an official bill to expand air travel security in all means of transportation. It got the approval in November 2001.
Air Freight Forwarder affords pickup and transport facility to and from the shippers’ dock.
Bonded Terminal is a famous airline station to store merchandise until Customs duties get paid or until goods get free (release the goods). To illustrate, this station has the approval of the U.S. Treasury Department.
All-Risk Insurance is the complete form of coverage existing, providing safety in contrast to all threats of physical damage or loss from any outside source, for example, fire crash, pilferage, etc.
A broker is a person or a firm that acts as a mediator for others, frequently among a purchaser and a vendor, in response to payment or commission.
Air Waybill is a document issued by transporter to a shipper that provides in-print proof. Specifically, this document concerns the delivery of goods, the transportation mode, and the procedure to carry goods at the demanding endpoint to the bill’s legal owner landing.
Cargo means the goods or products transported by aircraft, ship, or vehicle.
Cargo Manifest is a list of transporting or warehousing goods, deprived of citing the reasonable charges.
Some other commonly used logistic Supply Chain Terms
Carrier is any person or firm with whom a deal of carriage commences to perform or acquire carriage performance by combining transporting modes.
Charter Service is an impermanent transportation facility on an as-needed instance for the movement of cargo or customers.
Clearance is accomplishing customs entrance requirements, ensuring the discharge of goods from customs authority to the shipper.
Customs means the selected government authority that controls the movement of goods to/from a state and collects duties charged by a state/country on imports and exports.
Customs Duty is a tax charge and government collection by custom officers of compulsory duties by edict on imports.
Dangerous Goods are objects or materials that can cause significant danger to health, safety, or stuff when transported by air and need special care when transported.
Demurrage is a result of exceeding free time permitted for stocking or dropping at a dock or cargo terminal.
ETA is the abbreviation for the Estimated Time of Arrival of a shipper.
Export is the transportation of goods away from a state for the transaction to a different country.
FAK denotes Freight (cargo) All Kinds.
Gross Weight is the total weight of cargo, counting containers, and wrapping materials.
Igloo is a container to the extent of the full primary deck measurement of carrying aircraft.
The importer is the individual firm or lawful entity that carries goods from a foreign basis into a customs zone during the trade.
Carrier is a money-making business for the transportation of multiple cargo deliveries to and from clients and suppliers.
Cube denotes the amount of space inside a trailer or delivery container, which represents the capacity.
Net Weight is the weight of a load delivery without any wrapping or pallets.
Here are some common Supply Chain Terms acronyms, their long-form, and definitions
TL & FTL (Truckload & Full-Truckload) deliver cargo loaded to a trailer’s determined capacity or stubborn weight.
LTL (Less-Than-Truckload) means delivery of a small load that doesn’t need the use of a whole trailer.
INT (Intermodal) means the involvement of two or more diverse modes of transportation. The most common method of intermodal delivery is a cargo train.
OTR (Over-The-Road) refers to a transport method for freight supplies over long distances, as different to local paths.
DOT (Department of Transportation) is the central department accountable for the national highways, train tracks, and airline security.
FMCSA (Federal Motor Carrier Safety Administration) depicts the DOT’s centralized agency that controls the United States’ trucking business.
3PL (Third-Party-Logistics) contracts out logistics facilities surrounding managing one or more aspects of gaining, shipping, and fulfillment actions.
TMS (Transportation Management System) is a structure or software in Supply Chain Terms and warehousing processes to excuse inventory, fill client orders, and reserve transportation.
ETA (Estimated Time of Arrival) is the approximate time a truck, train, or delivery is predictable to arrive at a site.
POD (Proof of Delivery) is a manuscript to create a supply that they receive in full.
BOL (Bill of Lading) is a legal deed that lists the freight facts in a receipt procedure. Here the transporter gives legal action to the party offering the goods.
SKU (Stock Keeping Unit) is a product proof identity code to track a list of items, frequently demonstrating as a barcode.