Also called gap seals, which help to close the gap between the tractor and the trailer
A federal law that requires coastal and inter-coastal traffic to be carried in U.S.-built and registered ships.
See Computer Aided Engineering
(1) A secure enclosed area for storing highly valuable items, (2) a pallet-sized platform with sides that can be secured to the tines of a forklift and in which a person may ride to inventory items stored will above the warehouse floor.
Referring to the practice of placing high-value or sensitive products in a fenced off area within a warehouse.
To convert from working days to calendar days: if work week = 4 days, multiply by 1.75 = 5 days, multiply by 1.4 = 6 days, multiply by 1.17
The critical path along the following elements: Total Sourcing Lead Time, Manufacturing Order Release to Start Manufacturing, Total Manufacture Cycle Time (Make-to-Order, Engineer-to-Order, Configure/Package-to-Order) or Manufacture Cycle Time (Make-to-Stock), Complete Manufacture to Ship Time Note: Determined separately for Make-to-Order, Configure/Package-to-Order, Engineer-to-Order, and Make-to-Stock product
A facility housing personnel who respond to customer phone queries. These personnel may provide customer service or technical support. Call center services may be in-house or outsourced. Synonym: Customer Interaction Center.
A code published by the International Telecommunication Union in its annual List of Ships’ Stations to be used for the information interchange between vessels, port authorities and other relevant participants in international trade.
CALS Test Network
The CALS Test Network (CTN) is a confederation of hundreds of industry and government organizations that have agreed to evaluate and demonstrate the interchange and functional use of digital technical information using CALS standards. This is accomplished through a collaborative multi-service effort.
An ordering system used when multiple items are ordered from one vendor. The can-order point is a point higher than the original order point. When any one of the items triggers an order by reaching the must-order point, all items below their can-order point are also ordered. The can-order point is set by considering the additional holding cost that would be incurred should the item be ordered early.
Capability maturity model (CMM)
A framework that describes the key elements of an effective software process. The CMM covers practices for planning, engineering and managing software development and maintenance. When followed, these key practices improve the ability of organizations to meet goals for cost, schedule, functionality and product quality.
Capable to Promise (CTP)
A technique used to determine if product can be assembled and shipped by a specific date. Component availability throughout the supply chain, as well as available materials, is checked to determine if delivery of a particular product can be made. Capable-to-promise is used to determine when a new or unscheduled customer order can be delivered. Capable-to-promise employs a finite-scheduling model of the manufacturing system to determine when an item can be delivered. It includes any constraints that might restrict the production, such as availability of resources, lead times for raw materials or purchased parts, and requirements for lower-level components or subassemblies. The resulting delivery date takes into consideration production capacity, the current manufacturing environment, and future order commitments. The objective is to reduce the time spent by production planners in expediting orders and adjusting plans because of inaccurate delivery-date promises.
The physical facilities, personnel and process available to meet the product or service needs of customers. Capacity generally refers to the maximum output or producing ability of a machine, a person, a process, a factory, a product, or a service. Also see: Capacity Management
The ability, in a given time, of a resource measured in quality and quantity. The quantity of goods which can be stored in or loaded into a warehouse, store and/or loaded into a means of transport at a particular time.
Process of registering and steering of capacity.
The concept that capacity should be understood, defined, and measured for each level in the organization to include market segments, products, processes, activities, and resources. In each of these applications, capacity is defined in a hierarchy of idle, non-productive, and productive views.
Assuring that needed resources (e.g., manufacturing capacity, distribution center capacity, transportation vehicles, etc.) will be available at the right time and place to meet logistics and supply chain needs.
A term used to describe the monetary requirements (Capital Expenditure) of an initial investment in new machines or equipment.
The resources, or money, available for investing in assets that produce output.
1) Computer-Aided Planned Stowage and Networking system.2) Nautical An apparatus used for hoisting weights, consisting of a vertical spool-shaped cylinder that is rotated manually or by machine and around which a cable is wound
Car supply charge
A railroad charge for a shipper’s exclusive use of special equipment.
Cargo Agents Reservation Air Waybill Issuance and Tracking.
A person, normally an agent accompanying a shipment that requires special attention while en route. An attendant
The freight carried by a ship, an aircraft, or another vehicle.
All procedures necessary to enable the physical handling of goods.
Cargo Restriction Code
A code indicating that the use of a certain container is restricted to particular cargo.
A document sent by the agent to all relevant parties, stating that certain cargo is either missing or overlanded.
A vehicle, container, pallet, flat, portable tank or any other entity or any part thereof which belongs to the ship but is not permanently attached to that ship.
1) Quantity of freight required to fill a railcar. 2) Specified quantity necessary to qualify a shipment for carload rate.
An Interstate Commerce Act amendment that delineates the liability of common carriers and the bill of lading provision.
A Customs document permitting the holder to carry or send special categories of goods temporarily into certain foreign countries without paying duties or posting bonds.
Carousels are a technology used to store items for eventual picking or retrieval. There are two primary types of carousels and one related technology, all of which operate under some form of computer control. Since the late 1990s, carousels have been placed under the more general category of AS/RS.
The process of transporting (conveying) cargo, from one point to another.
Carriage and Insurance Paid To (…named place of destination)
The buyer should note that under the CIP term the seller is only required to obtain insurance on minimum coverage. The CIP term requires the seller to clear the goods for export. This term may be used for any mode of transport including multimodal transport.
Carriage Paid To (…named place of destination)
“Carriage paid to… ” means that the seller pays the freight for the carriage of the goods to the named destination. The risk of loss of or damage to the goods, as well as any additional costs due to events occurring after the time the goods have been delivered to the carrier, is transferred from the seller to the buyer when the goods have been delivered into the custody of the carrier.
An individual or organization engaged in the business of transporting goods or passengers.
Items that a carrier owns (technically or outright) to facilitate the services they provide.
Carrier Certificate and Release Order:
Used to advise customs of the shipment’s details. By means of this document, the carrier certifies that the firm or individual named in the certificate is the owner or consignee of the cargo.
The inland transport service which is performed by the sea-carrier under the terms and conditions of the tariff and of the relevant transport document.
A common carrier is liable for all shipment loss, damage, and delay with the exception of that caused by act of God, act of a public enemy, act of a public authority, act of the shipper, and the goods’ inherent nature.
Carriers Bill of Lading Ports
Terminal, Pre-terminal port or Post-terminal Port as per tariff, indicated on the Bill of Lading and which is not the port physically called at by Carriers’ ocean vessels.
The carrier’s right to hold the shipper’s property as security until such time as a shipping debt is paid.
Required cargo temperature during transport and storage of perishable and sensitive cargo
1) Charge for pick-up and delivery of goods 2) Movement of goods locally (short distances).
A group of companies that agree to cooperate, rather than compete, in producing a product or service, thus limiting or regulating competition.
Carton Flow Rack
A storage rack consisting of multiple lines of gravity flow conveyors.
The UPC number for a case of product. The UPC case code is different from the UPC item code. This is sometimes referred to as the “Shipping Container Symbol” or ITF-14 code.
Information shown on the outside of a shipping carton, including destination and contents.
Cash Against Documents (CAD)
A method of payment for goods in which documents transferring title are given to the buyer upon payment of cash to an intermediary acting for the seller.
Cash Before Delivery
Seller assumes no risk and extends no credit because payment is received before shipment.
Cash Conversion Cycle
1) In retailing, the length of time between the sale of products and the cash payments for a company’s resources. 2) In manufacturing, the length of time from the purchase of raw materials to the collection of accounts receivable from customers for the sale of products or services.
Cash In Advance (CIA)
A method of payment for goods whereby the buyer pays the seller in advance of shipment of goods.
Cash on Delivery
A term of sale whereby a buyer pays the carrier the price of goods (and possibly the delivery/freight charges) before they are released. The seller assumes risk of purchaser refusing to accept goods.
Cash with Order (CWO)
A method of payment for goods where cash is paid at the time of order, and the transaction becomes binding on both buyer and seller.
Cash-to-Cash Cycle Time
The time it takes for cash to flow back into a company after it has been spent for raw materials.
Conference Affairs and Tariffs: Pricing term that relates to movement to inland points.
Normalizing product data from multiple vendors so it can be easily compared. Virtual distributors and content aggregators often provide this service to buyers. Most valuable when products are complex and have many attributes.
Making a decision on buying options by aggregating catalogs from multiple vendors with relatively static prices.
A call center or order processing facility that receives orders directly from the customer based on defined catalog offerings, and ships directly to the customer.
A double or treble-hulled vessel constructed in wood, aluminum or reinforced glass fibre and is also composed of two or three hulls diagonally joined together by various methods. Normally no ballast is needed to counteract the center buoyancy since it enjoys good stability at sea.
A method of selecting and evaluating suppliers that considers input from many departments and functions within the buyer’s organization and systematically categorizes that input. Engineering, production, quality assurance, and other functional areas evaluate all suppliers for critical factors within their scope of responsibility.
The management of product categories as strategic business units. This practice empowers a category manager with full responsibility for the assortment decisions, inventory levels, shelf-space allocation, promotions, and buying. With this authority and responsibility, the category manager is able to more accurately judge the consumer buying patterns, product sales, and market trends of that category.
An oceangoing integrated tug-barge vessels.
In forecasting, a type of forecasting that uses cause-and-effect associations to predict and explain relationships between the independent and dependent variables.
In quality management, a structured process used to organize ideas into logical groupings. Used in brainstorming and problem-solving exercises. Also known as Ishikawa or fish bone diagram.
A manufacturing or service unit consisting of a number of workstations, and the materials transport mechanisms and storage buffers that interconnect them.
The location of a cell on board of a container vessel identified by a code for the bay, the row and the tier, indicating the position of a container on that vessel.
Steel bars and rails used to steer containers during loading and discharging whilst sliding in the ship.
A manufacturing approach in which equipment and workstations are arranged to facilitate small-lot, continuous-flow production. In a manufacturing “cell,” all operations necessary to produce a component or subassembly are performed in close proximity, thus allowing for quick feedback between operators when quality problems and other issues arise. Workers in a manufacturing cell typically are cross-trained and, therefore, able to perform multiple tasks as needed.
Ship specially constructed for the stowage of containers in vertical stacks or cells. These stacks or cells are normally six to seven levels high when below decks, or three to four levels high when above decks.
A supply chain planning methodology for locating distribution centers at approximately the location representing the minimum transportation costs between the plants, the distribution centers, and the markets.
The organization of the dispatching function into one central location. This structure often involves the use of data collection devices for communication between the centralized dispatching function which usually reports to the production control department and the shop manufacturing departments.
A warehouse which performs centralised functions for a number of other warehouses. (e.g. keeping capacity stock).
Management authority to make decisions is restricted to few managers.
The organization of the dispatching function into one central location. This structure often involves the use of data collection devices for communication between the centralized dispatching function, which usually reports to the production control department, and the shop manufacturing departments.
Centralized Inventory Control
Inventory decision making (for all SKUs) exercised from one office or department for an entire company.
Certificate of Analysis (COA)
A certification of conformance to quality standards or specifications for products or materials. It may include a list or reference of analysis results and process information. It is often required for transfer of the custody/ownership/title of materials.
Certificate of Classification
A certificate, issued by the classification society and stating the class under which a vessel is registered.
Certificate of Compliance
A supplier’s certification that the supplies or services in question meet specified requirements.
Certificate of Delivery
A certificate indicating the condition of a vessel upon delivery for a charter including ballast, available bunkers and fresh water.
Certificate of Free Sale
A certificate, required by some countries as evidence that the goods are normally sold on the open market and approved by the regulatory authorities in the country of origin.
Certificate of inspection
A document certifying that merchandise (such as perishable goods) was in good condition immediately prior to its shipment.
Certificate of Insurance
A document stating that insurance is in effect.
Certificate of Insurance
A negotiable document indicating that insurance has been secured under an open policy to cover loss or damage to a shipment while in transit.
Certificate of Manufacture
Certificate stating that goods have been manufactured by a certain manufacturer and/or in a certain country.
Certificate of Origin (COI)
An international business document that certifies the country of origin of the shipment.
Certificate of public convenience and necessity
The grant of operating authority that is given to common carriers. A carrier must prove that a public need exists and that the carrier is fit, willing, and able to provide the needed service. The certificate may specify the commodities to be hauled, the area to be served, and the routes to be used.
Certificate of Redelivery
A certificate, indicating the condition of a vessel upon redelivery from a charter including ballast, available bunkers and fresh water.
A for-hire air carrier that is subject to economic regulation and requires an operating certification to provide service.
A status awarded to a supplier who consistently meets predetermined quality, cost, delivery, financial, and count objectives. Incoming inspection may not be required.
See Continuous Flow Distribution
See Current Good Manufacturing Practice.
Chain of Customers
The sequence of customers who, in turn, consume the output of each other, forming a chain. For example, individuals are customers of a department store which in turn is the customer of a producer who is the customer of a material supplier.
A chain of events described by W. Edwards Deming: improve quality, decrease costs, improve productivity, increase market with better quality and lower price, stay in business, provide jobs and provide more jobs.
Challenge and Response
A method of user authentication. The user enters an ID and password and, in return, is issued a challenge by the system. The system compares the user’s response to the challenge to a computed response. If the responses match, the user is allowed access to the system. The system issues a different challenge each time. In effect, it requires a new password for each logon.
A business leader or senior manager who ensures that resources are available for training and projects, and who is involved in project tollgate reviews; also an executive who supports and addresses Six Sigma organizational issues.
An individual from within or outside an organization who facilitates change within the organization. May or may not be the initiator of the change effort.
The business process that coordinates and monitors all changes to the business processes and applications operated by the business, as well as to their internal equipment, resources, operating systems, and procedures. The change management discipline is carried out in a way that minimizes the risk of problems that will affect the operating environment and service delivery to the users.
A formal notification that a purchase order or shop order must be modified in some way. This change can result from a revised quantity, date, or specification by the customer; an engineering change; a change in inventory requirement data; etc.
Process of making necessary adjustments to change or switchover the type of products produced on a manufacturing line. Changeovers usually lead to downtime and for the most part, companies try to minimize changeover time to help reduce costs.
A method whereby a business dispenses its product, such as a retail or distribution channel, call center or web based electronic storefront.
Channel Charging area
A warehouse area where a company maintains battery chargers and extra batteries to support a fleet of electrically powered materials handling equipment. The company must maintain this area in accordance with government safety regulations.
This occurs when various sales channels within a company’s supply chain compete with each other for the same business. An example is where a retail channel is in competition with a web-based channel set up by the company.
Members of a supply chain (i.e., suppliers, manufacturers, distributors, retailers, etc.) who work in conjunction with one another to manufacture, distribute, and sell a specific product.
Channels of Distribution
Any series of firms or individuals that participates in the flow of goods and services from the raw material supplier and producer to the final user or consumer.
An amount to be paid for carriage of goods based on the applicable rate of such carriage, or an amount to be paid for a special or incidental service in connection with the carriage of goods.
A separate, identifiable element of charges to be used in the pricing/rating of common services rendered to customers.
The weight used to determine airfreight charges. The chargeable weight may be the dimensional weight, or for container shipments, the gross weight of the shipment less the tare weight of the container.
The shipment weight used in determining freight charges. The chargeable weight may be the dimensional weight or, for container shipments, the gross weight of the shipment less the tare weight of the container.
A warehouse area where a company maintains battery chargers and extra batteries to support a fleet of electrically powered materials handling equipment. The company must maintain this area in accordance with government safety regulations.
A separate, identifiable element of charges to be used in the pricing/rating of common services rendered to customers.
A contract in which the ship owner agrees to place his vessel or a part of it at the disposal of a third party, the charterer, for the carriage of goods for which he receives a freight per ton cargo, or to let his vessel for a definite period or trip for which a hire is paid.
The legal person who has signed a charter party with the owner of a vessel or an aircraft and thus hires or leases a vessel or an aircraft or a part of the capacity thereof.
The undercarriage of a trailer on which van containers are placed for road movement.
Chemical & Biological Weapons
Weapons that contain biological or chemical properties.
A wedge, usually made of hard rubber or steel, that is firmly placed under the wheel of a trailer, truck, or boxcar to stop it from rolling.
The relentless cycle of acquiring new customers and losing others that characterizes consumer e-commerce and reduces lifetime customer value because switching is so easy.
See Continuous Improvement
See Cost, Insurance, Freight.
A motor carrier driver who drives a local route as opposed to a long-distance, intercity route.
Civil Aeronautics Board
A federal regulatory agency that implemented economic regulatory controls over air carriers.
Carload rail service requiring shipper to meet minimum weight.
A charge made against a carrier for loss, damage, delay, or overcharge.
An overseas representative of the insurance company.
Person or company filing a claim.
Class I carrier
A classification of regulated carriers based upon annual operating revenues–motor carriers of property: > or = $5 million; railroads: > or =$50 million; motor carriers of passengers: > or =$3 million.
Class II carrier
A classification of regulated carriers based upon annual operating revenues–motor carriers of property: $1-$5 million; railroads: $10-$50 million; motor carriers of passengers: < or = $3 million.
Class III carrier
A classification of regulated carriers based upon annual operating revenues–motor carriers of property: < or = $1 million; railroads: < or = $10 million.
Rate for commodities grouped according to similar shipping characteristics. Applies to groups of articles contained in the territorial rating column in classification schedules.
A rate constructed from a classification and a uniform distance system. A class rate is available for any product between any two points.
An alphabetical listing of commodities, the class or rating into which the commodity is placed, and the minimum weight necessary for the rate discount; used in the class rate structure.
The process of assigning the correct definition and category of imported merchandise within the Harmonized Tariff Schedule of the United States. Classification and valuation are the primary components to determining the amount of duty an importer owes on the merchandise.
A railroad terminal area where rail cars are grouped together to form train units.
Clean Bill of Lading
A Bill of Lading signed by the carrier for merchandise received in apparent good condition (no damage or missing pieces of freight).
1) Custom Learance certificate that states that all legal requirements having been met and a ship is free to leave port.2)A document stating that a shipment is free to be imported into the country after all legal requirements have been met.
Terminal where Customs facilities for the clearance of goods are available.
Cleared Without Examination
Cleared by customs without inspection.
A conventional or limited purpose entity generally restricted to providing specialized services, such as clearing funds or settling accounts.
A party with which a company has a commercial relationship concerning the transport of e.g. cargo or concerning certain services of the company concerned, either directly or through an agent.
Council of Logistics Management, now known as The Council of Supply Chain Management Professionals.
Closed Loop MRP
A system build around material requirements planning that includes the additional planning processes of production planning (sales and operations planning), master production scheduling, and capacity requirements planning.The term “closed loop implies not only that each of these processes is included in the overall system, but also that feedback is provided by the execution processes so that the planning can be kept valid at all times..
Closed Ventilated Container
A container of a closed type, similar to a general purpose container, but specially designed for carriage of cargo where ventilation, either natural or mechanical (forced), is necessary.
Closed-loop corrective action (CLCA)
A sophisticated engineering system designed to document, verify and diagnose failures, recommend and initiate corrective action, provide follow-up and maintain comprehensive statistical records.
See Certificate of Analysis
Water carriers that provide service along coastal serving ports on the Atlantic or Pacific Oceans or on the Gulf of Mexico.
A numeric, or alphanumeric, representation of text for exchanging commonly used information. For example: commodity codes, carrier codes,
CODE OF FEDERAL REGULATIONS
The codification of rules published in the Federal Register by the Executive departments and agencies of the U.S. Federal Government.
The evolution of a supply chain from intra-organizational management to inter-organizational management.
The process of detailing a new standard.
An empty space on board of a vessel between two bulkheads or two decks separating oil tanks from each other and/or the engine room or other compartments.
See Cost of Goods Sold
Joint work and communication among people and systems including business partners, suppliers, and customers to achieve a common business goal.
Collaborative Planning, Forecasting and Replenishment (CPFR)
A collaboration process whereby supply chain trading partners can jointly plan key supply chain activities from production and delivery of raw materials to production and delivery of final products to end customers.
Container which can be easily folded, disassembled and reassembled.
Two shipments from different terminals combined to ship as one load.
The long-term relationship between e.g. a supplier or a carrier and a customer, on the basis of mutual confidence.
Co-Managed Inventory (CMI)
A form of continuous replenishment in which the manufacturer is responsible for replenishment of standard merchandise, while the retailer manages the replenishment of promotional merchandise.
Aircraft specially designed to carry unitized cargo loads on the upper deck of the craft, toward or near the passenger area.
An amount which is obtained by combining two or more charges.
A chassis which can carry either one forty foot or thirty foot container or a combination of shorter containers e.g. 2 x 20 foot.
Combination Through Rate
A through rate determined by combining two or more rates published in different tariffs.
Combined Lead Time
See Cumulative Lead Time
Intermodal transport where the major part of the journey is by one mode such as rail, inland waterway or sea and any initial and/or final leg carried out by another mode such as road.
Itemized list issued by seller/exporter in foreign trade showing quantity, quality, description of goods, price, terms of sale, marks/numbers, weight, full name/address of purchaser, date, and sometimes other pertinent information.
The area surrounding a city or town to which rates quoted for the city or town also apply; the area is defined by the ICC.
A clause that prohibits railroads from hauling commodities that they produced, mined, owned, or had an interest in.
Committee of American Steamship Lines
An industry association representing subsidized U.S. Flag steamship firms.
Commodities are defined as marketable goods or wares, such as raw or partially processed materials, farm products, or jewelry
Commodity Box Rate
A rate classified by commodity and quoted per container.
Grouping like parts or materials under one buyer’s control for the procurement of all requirements to support production.
Any one of several coding systems used to identify and/or group commodities.
Request used to determine whether an item or service is subject to the export licensing authority of the Department of Commerce, Department of State, Office of Defense Trade Control, or other federal agency. (USA)
Commodity Procurement Strategy
The purchasing plan for a family of items. This would include the plan to manage the supplier base and solve problems.
A shipping rate, for a particular named commodity, usually to and from specific points.
A rate for a specific commodity and its origin-destination.
A tariff containing only commodity rates.
Common Access Reference
A key to relate all subsequent transfers of data to the same business case or file.
A carrier engaged in the business of transporting persons or goods at published rates.
Common carrier duties
Common carriers are a requirement to serve, deliver and charge reasonable rates.
A cost that cannot be directly assignable to particular segments of the business but that is incurred for the business as a whole.
A tariff published by and for the account of two or more transportation lines as issuing carriers.
An exempt for-hire air carrier that publishes a time schedule on specific routes; a special type of air taxi.
A system of values, beliefs, and behaviors inherent in a company. To optimize business performance, top management must define and create the necessary culture.
A principle based on the assumption that an area will specialize in the production of goods for which it has the greatest advantage or least comparative disadvantage.
Value created by a company for its customers that clearly distinguishes it from the competition, and provides its customers a reason to remain loyal.
Benchmarking a product or service against competitors. Also see: Benchmarking
A price/service offering by a supplier that must compete with offerings from other suppliers.
Complete & On-Time Delivery (COTD)
A measure of customer service. All items on any given order must be delivered on time for the order to be considered as complete and on time
Complete Manufacture to Ship Time
Average time from when a unit is declared shippable by manufacturing until the unit actually ships to a customer.
Meaning that products, services, processes and/or documents comply with requirements.
The function of EDI processing software that ensures that all transmissions contain the mandatory information demanded by the EDI standard.
A check done by the VAN/third party network or the translation software to ensure the data being exchanged is in the correct format for the standard being used.
A method by which two or more EDI trading partners periodically report conformity to agreed upon standards of control and audit. Management produces statements of compliance, which briefly note any exceptions, as well as corrective action planned or taken, in accordance with operating rules. Auditors produce an independent and objective statement of opinion on management statements.
Material that will contribute to a finished product but is not the finished product itself. Examples would include tires for an automobile, power supply for a personal computer etc. Note that what is a component to the manufacturer may be considered the finished product of their supplier.
A macro leg of transportation connecting three or more discrete stations.
COMPOUND DUTY RATE
A compound duty rate is an ad valorum rate plus a specific rate that is based on some unit of measure.
A local advisor or agent employed by a foreign party or company who acts as an intermediary in transactions with local inhabitants.
A valuation method whereby a profit value (based on margin) is added to the costs of production to determine the price of a good.
Computer Aided Engineering (CAE)
The use of computers to model design options to stimulate their performance.
A program that can infect other programs by modifying them to include a possibly evolved copy of itself.
Computer-aided design (CAD)
Computer-based systems for product design that may incorporate analytical and “what if” capabilities to optimize product designs. Many CAD systems capture geometric and other product characteristics for engineering data- management systems, producibility and cost analysis, and performance analysis.
Computer-aided manufacturing (CAM)
Computerized systems in which manufacturing instructions are downloaded to automated equipment or to operator workstations.
Computer-aided process planning (CAPP)
Software-based systems that aid manufacturing engineers in creating a process plan to manufacture a product who’s geometric, electronic, and other characteristics have been captured in a CAD database. CAPP systems address such manufacturing criteria as target costs, target lead times, anticipated production volumes, availability of
Computer-Based Training (CBT)
Training that is delivered via computer workstation and includes all training and testing materials.
Computer-integrated manufacturing (CIM)
A variety of approaches in which computer systems communicate or interoperate over a local-area network. Typically, CIM systems link management functions with engineering, manufacturing, and support operations. In the factory, CIM systems may control the sequencing of production operations, control operation of automated equipment and conveyor systems, transmit manufacturing instructions, capture data at various stages of the manufacturing or assembly process, facilitate tracking and analysis of test results and operating parameters, or a combination of these.
Computerized maintenance management systems (CMMS)
Software-based systems that analyze operating conditions of production equipment : vibration, oil analysis, heat, etc. : and equipment-failure data, and apply that data to the scheduling of maintenance and repair inventory orders and routine maintenance functions. A CMMS prevents unscheduled machine downtime and optimizes a plant’s ability to process product at optimum volumes and quality levels.
Computerized process simulation
Use of computer simulation to facilitate sequencing of production operations, analysis of production flows, and layout of manufacturing facilities.
See Statistical process control
Thermal container served by an external cooling system (e.g. a vessel’s or Clip On Unit), which regulates the temperature of cargo.
When goods in an apparently undamaged container are damaged. Claims are hard to settle because neither shipper nor carrier wants to accept responsibility.
Document signed by a carrier and filed with the Interstate Commerce Commission that verifies that the carrier participates in rates published in a tariff by a given agent.
A cross-functional, team-based approach in which the product and the manufacturing process are designed and configured within the same time frame, rather than sequentially.
Anything called for as requirements before the performance or completion of something else.
Devices for facilitating the loading, positioning and lashing of containers. The cones insert into the bottom castings of the container.
1) Independent/autonomous organization within the American Trucking Associations that represents a certain class/type of motor carrier. 2) Association of ship owners that service the same trade route(s) and operate under collective conditions of carriage and tariff rates.
A rate arrived at by the conference of carriers applicable to transportation.
The arrangement of components as specified to produce an assembly.
The lifecycle management of a product and/or process that includes design, ordering, shipping, customer usage and service or warranty repair history to ensure conformance to the desired configuration. It includes history and documentation on the materials, production facilities, manufacturing process and engineering changes over the product lifecycle.
A final item description tool used in assemble-to-order (ATO) environments that defines the available product options and accessories, and builds product cost and sales price information from the options chosen.
A process where the trigger to begin manufacture, final assembly or packaging of a product is an actual customer order or release, rather than a market forecast. In order to be considered a Configure-to-Order environment, less than 20% of the value-added takes place after the receipt of the order or release, and virtually all necessary design and process documentation is available at time of order receipt.
With regards to EDI, a formal notice (by message or code) from a electronic mailbox system or EDI server indicating that a message sent to a trading partner has reached its intended mailbox or been retrieved by the addressee.
Confirmed Letter of Credit
A letter of credit, issued by a foreign bank, with validity confirmed by confirming bank. When confirmed, the confirming bank undertakes responsibility for payment even if the foreign buyer or bank defaults.
A purchase order issued to a supplier, listing the goods or services and terms of an order placed orally or otherwise before the usual purchase document.
An affirmative indication or judgment that a product or service has met the requirements of a relevant specification, contract, or regulation. Synonym: Compliance.
Accumulation of vessels at a port to the extent that vessels arriving to load or discharge are obliged to wait for a vacant berth.
A carrier who has a direct connection with another carrier, under which people or freight are moved in joint-line service.
The Consolidated Rail Corporation established by the Regional Reorganization Act of 1973 to operate the bankrupt Penn Central Railroad and other bankrupt railroads in the Northeast; funding was provided by the 4-R Act of 1976.
A state in which all the members of a group support an action or decision, even if some of them don’t fully agree with it.
Furnishing goods to an agent to sell on the consignor’s behalf.
1) Person who receives goods shipped from a consignor. 2) The party to whom goods are shipped and delivered . The receiver of freight shipment
1) A shipment that is handled by a common carrier. 2) The process of a supplier placing goods at a customer location without receiving payment until after the goods are used or sold. Also see: Consignment Inventory
1) Goods or product that are paid for when they are sold by the reseller, not at the time they are shipped to the reseller. 2) Goods or products which are owned by the vendor until they are sold to the consumer.
The stock of goods with an external party (customer) which is still the property of the supplier. Payment for these goods is made to the supplier at the moment when they are sold (used) by this party.
1) The person or firm from whom the goods have been received for shipment, the seller, shipper, or exporter.2) The sender of a freight shipment
A number of small individual shipments, possibly by different shippers, combined into a single large load, to take advantage of economies of scale.
Combining less-than-carload or less-than-truckload shipments, to make carload/truckload movements.
1) Consortium is a form of cooperation between two or more carriers to operate in a particular trade. 2) A group of companies that work together to jointly produce a product,service or project
A bottleneck, obstacle or planned control that limits throughput or the utilization of capacity.
Commercial representative of one country residing officially in another country, whose duties are to facilitate business and represent the merchants of his nation.
The fees charged by a consul for his official certifications or notorial legislations.
A document required by some foreign countries that describes a shipment of goods and shows information, such as the consignor, consignee, and value of the shipment. Certified by a consular official of the foreign country, it is used by customs officials to verify the value, quantity, and nature of the shipment.
Consumer packaged goods (CPG)
Consumable goods such as food and beverages, footwear and apparel, tobacco, and cleaning products. In general, CPGs are things that get used up and have to be replaced frequently, in contrast to items that people usually keep for a long time, such as cars and furniture.
Database with information about a retailer’s individual consumers, used primarily for marketing and promotion.
Consuming the Forecast
The process of reducing the forecast by customer orders or other types of actual demands as they are received. The adjustments yield the value of the remaining forecast for each period.
1) A “box,” typically 10 to 40 feet long, which is primarily used for ocean freight shipments. For travel to and from ports, containers are loaded onto truck chassis or on railroad flatcars. 2) The packaging, such as a carton, case, box, bucket, drum, bin, bottle, bundle, or bag, that an item is packed and shipped in.
A container floor without sides or end walls which does not have the ISO corner fittings and is generally used for Ro/Ro operations.
Container Check Digit
The 7th digit of the serial number of a container used to check whether prefix and serial number are correct.
Container crane (onshore)
A specially designed land-based crane on tracks for loading or unloading containers from vessels.
Storage area for empty containers.
The internationally recognized standard conversions that serve as the basis for converting containers of various sizes into comparable units.
Container Freight Station
A carrier facility where less-than-container load shipments are consolidated for shipment, unloaded for shipment, or unloaded for final delivery. The term CFS Shipment indicates less than a container load.
The contract by which the owner of containers (lessor) gives the use of containers to a lessee for a specified period of time and for fixed payments.
Container Load Plan
A list of items loaded in a specific container and where appropriate their sequence of loading.
The document specifying the contents of particular freight containers or other transport units, prepared by the party responsible for their loading into the container or unit.
The number of actions performed by one container crane during a certain period.
Identification number of a container consisting of prefix and serial number and check digit. (e.g. KNLU 123456-7, see also container serial number and container prefix.)
A party who has a container at his disposal and who is entitled to lease or sell the container.
A container floor without sides or end walls which can be loaded by spreader directly and is generally used for Lo-Lo operations.
A certain stock of containers which is jointly used by several container carriers and/or leasing companies.
A four letter code that forms the first part of a container identification number indicating the owner of a container.
Container Safety Convention
International convention for safe containers.
Container Security Initiative (CSI)
The Container Security Initiative (CSI) is a Customs initiative designed to prevent the smuggling of terrorist weapons in ocean-going cargo containers. Launched in January 2002, CSI emphasizes pre-screening, as well as the stationing of U.S. Customs personnel at foreign ports
Container Serial Number
A seven digit serial number (6 plus 1 Check Digit) that forms the second part of a container identification number.
A ship specially constructed to handle containerized cargo.
Container Size Code
An indication of 2 digits of the nominal length and nominal height. See also Size/Type ISO6346.
Description of the size and type of a freight container or similar unit load device as specified in ISO6346.
Two or more containers, one placed above the other forming a vertical column.
Contract by which a carrier gives the use of containers to another carrier for a specified period of time and for fixed payments.
Place where loaded and/or empty containers are loaded or discharged into or from a means of transport.
Container Type Code
Two digits, the first of which indicates the category and the second of which indicates certain physical characteristics or other attributes.
A carrier facility where full containers are stored.
1) Using box-like device to store, protect and handle a number of packages as a unit of transit. 2) Shipping system based on large cargo-carrying containers that can be interchanged between trucks, trains, and ships without rehandling contents.
When a product is sold under terms that require the buyer to provide insurance coverage, the seller may elect to purchase backup insurance,in case the coverage provided by the buyer is not sufficient to cover the value of the shipment.
Preparing to deal with calamities (e.g., floods) and non-calamitous situations (e.g., strikes) before they occur
Continuous Flow Distribution (CFD)
The streamlined pull of products in response to customer requirements while minimizing the total costs of distribution.
Continuous Improvement (CI)
A structured measurement driven process that continually reviews and improves performance.
Continuous Process Improvement (CPI)
A never-ending effort to expose and eliminate root causes of problems; small-step improvement as opposed to big-step improvement. Synonym: Continuous Improvement. Also see: Kaizen
Continuous Replenishment is the practice of partnering between distribution channel members that changes the traditional replenishment process from distributor-generated purchase orders, based on economic order quantities, to the replenishment of products based on actual and forecasted product demand.
Continuous Replenishment Planning (CRP)
A program that triggers the manufacturing and movement of product through the supply chain when the identical product is purchased by an end user.
A term denoting that seals on a vehicle remained intact during the movement from origin to destination.
Continuous-flow, fixed-path equipment
Materials handling devices that include conveyors and drag lines.
Illegal or prohibited goods.
An agreement between two or more competent persons or companies to perform or not to perform specific acts or services or to deliver merchandise. A contract may be oral or written. A purchase order, when accepted by a supplier, becomes a legal contract. Acceptance may be in writing or by performance, unless the purchase order requires acceptance in writing.
Managing all aspects of a contract to guarantee that the contractor fulfills his obligations.
A carrier that does not serve the general public, but provides transportation for hire for one or a limited number of shippers under a specific contract.
Contractual Port of Loading
A port at which an ocean vessel does not call, but which is equalized with the actual port of call and upon which inland haulage services and inland tariffs are based.
The difference between sales price and variable costs. Contribution is used to cover fixed costs and profits.
An amount equal to the difference between sales revenue and variable costs.
Referring to an area within a warehouse or yard that is fenced and gated. These areas are typically used to store high-value items and may be monitored by security cameras
An auxiliary undercarriage assembly consisting of a chassis, fifth wheel and towbar used to convert a semitrailer or a container chassis to a full trailer.
A materials handling device that moves freight from one area to another in a warehouse. Roller conveyors make sue of gravity, whereas belt conveyors use motors.
A combination of cooperation and competition that offers the counter intuitive possibility for rivals to benefit from each other’s seemingly competitive activities.
Two or more carriers of different modes transporting a shipment.
A contract co-packer produces goods and/or services for other companies, usually under the other company’s label or name. Co-packers are more frequently seen in consumer packaged goods and foods.
The combination of individual skills and use of technologies that underlay the various products and or services of a business.
Bundles of skills or knowledge sets that enable a firm to provide the greatest level of value to its customers in a way that is difficult for competitors to emulate and that provides for future growth.
That unique capability that is central to a company’s competitive strategy.
The branch of accounting that is concerned with recording and reporting business operating costs. It includes the reporting of costs by departments, activities, and products.
In accounting, the assignment of costs that cannot be directly related to production activities via more measurable means, e.g., assigning corporate expenses to different products via direct labor costs or hours.
Cost and Freight
Shipper pays the ocean freight and other costs (Accessorial, Inland Transportation, etc.) associated with the movement of the cargo to a particular point of the consignee’s choosing. The consignee pays the Insurance.
Cost and Insurance
Shipper pays the for the insurance and shipping related costs other than ocean freight, associated with the movement of the cargo to a particular point of the consignee’s choosing. The consignee pays the Ocean freight.
In accounting, a sub-unit in an organization that is responsible for costs.
In accounting, any situation or event that causes a change in the consumption of a resource, or influences quality or cycle time.
Cost Driver Analysis
In cost accounting, the examination, quantification, and explanation of the effects of cost drivers. The results are often used for continuous improvement programs to reduce throughput times, improve quality, and reduce cost.
In cost accounting, the lowest level component of a resource, activity, or cost object.
The management and control of activities and drivers to calculate accurate product and service costs, improve business processes, eliminate waste, influence cost drivers, and plan operations. The resulting information will have utility in setting and evaluating an organization’s strategies.
Cost of Capital
The cost to borrow or invest capital.
Cost of Goods Sold (COGS)
The amount of direct materials, direct labor, and allocated overhead associated with products sold during a given period of time, determined in accordance with Generally Accepted Accounting Principles (GAAP)
Cost of lost sales
The forgone profit associated with a stockout.
The interrelationship among system variables indicates that a change in one variable has cost impact upon other variables. A cost reduction in one variable may be at the expense of increased cost for other variables, and vice versa.
In cost accounting, the difference between what has been budgeted for an activity and what it actually costs.
Cost, Insurance and Freight
A valuation basis whereby a shipper pays the freight and insurance charges associated with the movement of cargo to a particular destination.
Cost, Insurance, Freight (CIF)
A freight term indicating that the seller is responsible for cost, the marine insurance, and the freight charges on an ocean shipment of goods.
See Complete & On-Time Delivery
Council of Logistics Management (CLM)
See Council of Supply Chain Management Professionals.
Council of Supply Chain Management Professionals (CSCMP)
The CSCMP is a not-for-profit professional business organization consisting of individuals throughout the world who have interests and/or responsibilities in logistics and supply chain management, and the related functions that make up these professions. Its purpose is to enhance the development of the logistics and supply chain management professions by providing these individuals with educational opportunities and relevant information through a variety of programs, services, and activities.
Duties assessed by a country to remedy the unfair advantage that certain industries or manufacturer gain when they are unfairly subsidized by their governments.
A chart that contains certain licensing requirements based on destination and reason for control.
For export control purposes, foreign countries are separated into five country groups designated by the symbols A,B,C,D, and E. (USA)
Country of Export
The country where goods are shipped from.
Country of Manufacture
The country where the product is actually made or grown. If more than one country is involved, the country of manufacture is normally the country where the last major transformation took place.
Country of Origin
The country that produced the imported merchandise (see “marking”).
A fast, door-to-door service for high-valued goods and documents; firms usually limit service to shipments of 50 pounds or less.
See Collaborative Planning Forecasting and Replenishment
See Consumer Packaged Goods
See Continuous Process Improvement
The amount of purchasing credit a customer has available. Usually defined by the internal credit department and reduced by any existing unpaid bills or open orders.
Credir Risk Insurance
Insurance designed to cover risks of nonpayment for delivered goods.
This is what makes an idea, product, service or business model unique from its competitors
Critical Success Factor (CSF)
Those activities and/or processes that must be completed and/or controlled to enable a company to reach its goals.
Critical value analysis
A modified ABC analysis in which a subjective value of criticalness is assigned to each item in the inventory.
See Customer Relationship Management
A distribution system in which merchandise received at the warehouse or distribution center is not put away, but instead is readied for shipment to retail stores. Cross docking requires close synchronization of all inbound and outbound shipment movements. By eliminating the put-away, storage and selection operations, it can significantly reduce distribution costs.
A term used to describe a process or an activity that crosses the boundary between functions. A cross functional team consists of individuals from more than one organizational unit or function.
The practice of attempting to sell additional products to a customer during a sales call. For example, when the CSR presents a camera case and accessories to a customer that is ordering a camera
Term used in shipping for the services of a vessel between nations other than the nation in which the vessel is registered .
Material flow activity where materials are shipped to customers from a secondary shipping point rather than from a preferred shipping point.
In cost accounting, the inequitable assignment of costs to cost objects, which leads to over costing or under costing them relative to the amount of activities and resources actually consumed.
See Continuous Replenishment Program
See Council of Supply Chain Management Professionals.
See Critical Success Factor
See Container Security Initiative
See Customer Service Representative
See Capacity to Promise
See Customs-Trade Partnership against Terrorism
Cubic volume of space being used or available for shipping or storage.
The volume of the shipment or package (the product of the length x width x depth).
A dimensional shipping rate based on the amount of trailer space that is used, instead of weight. Used for light bulky loads.
In warehousing, a measurement of the utilization of the total storage capacity of a vehicle or warehouse.
When the cubic capacity of a container is reached before the weight capacity.
The carrying capacity of a vehicle expressed in cubic feet/meters.
In warehousing, a measurement of space available or required in transportation and warehousing.
A running sum for consecutive periods of capacity capabilities for a given resource that indicates total availability over those periods, and aids in determining whether rescheduling will resolve intermittent problems.
Cumulative Lead Time
The total time required to source components, manufacture and ship a product.
cumulative lead time
Total lead time for an end item, calculated by taking the individual lead times for all items on the critical path through all levels of the bill of material (BOM). The cumulative lead time describes the lead time required to finish an end item if no raw materials, components or intermediate levels were on hand and had to be ordered and produced to create the final item.
Cumulative Source/Make Cycle Time
The cumulative internal and external lead time to manufacture shippable product, assuming that there is no inventory on-hand, no materials or parts on order, and no prior forecasts existing with suppliers. (An element of Total Supply Chain Response Time)
A currency is a unit of exchange, facilitating the transfer of goods and services.
Currenct Adjustment Factor
A charge used to equalize fluctuating rates of exchange. An ancillary charge on some ocean freight shipments, expressed as a percentage of a base rate, to compensate ocean carriers for fluctuations in the value of the U.S. dollar against foreign currencies.
Currency adjustment factor (CAF)
An added charge assessed by water carriers for currency value changes.
Currency of Transaction
The currency used to pay for goods.
Current good manufacturing practices (CGMP)
Regulations enforced by the U.S. Food and Drug Administration for food and chemical manufacturers and packagers.
1) In distribution, the Trading Partner or reseller, i.e. Wal-Mart, Safeway, or CVS. 2) In Direct-to-Consumer, the end customer or user.
The end user, or customer, motivates what is produced or how it is delivered.
Those personnel whose jobs entail actual contact with the customer.
Customer Interaction Center
See Call Center
An order from a customer for a particular product or a number of products. It is often referred to as an actual demand to distinguish it from a forecasted demand.
The practice of placing a value on the profit generated by business done with a particular customer.
Customer Receipt of Order to Installation Complete
Average lead-time from receipt of goods at the customer to the time when installation (if applicable) is complete, including the following sub-elements: time to get product up and running, and product acceptance by customer. (An element of Order Fulfillment Lead Time)
Customer Relationship Management (CRM)
This refers to information systems that help sales and marketing functions, as opposed to the ERP (Enterprise Resource Planning), which is for back-end integration.
Dividing customers into groups based on specific criteria, such as products purchased, customer geographic location, etc.
Activities between the buyer and seller that enhance or facilitate the sale or use of the seller’s products or services.
Customer Service Ratio
See Percent of Fill
Customer Service Representative (CSR)
The individual who provides customer support via telephone in a call center environment.
Customer Signature/Authorization to Order Receipt
Average lead-time from when a customer authorizes an order to the time that that order is received and order entry can commence. (An element of Order Fulfillment Lead Time)
Customer/Order Fulfillment Process
A series of customers’ interactions with an organization through the order filling process, including product/service design, production and delivery, and order status reporting.
A long-term relationship between a buyer and a supplier characterized by teamwork and mutual confidence. The supplier is considered an extension of the buyer’s organization. The partnership is based on several mutually beneficial commitments.
Creating a product from existing components into an individual order. Synonym: Build to Order.
The importer’s agent licensed by the Customs Service to enter and clear goods through Customs.
CUSTOMS COOPERATION COUNCIL
An international Customs organization in Brussels that oversees, and strives to harmonize, tariff and regulatory matters worldwide.
Customs House Broker
A business firm that oversees the movement of international shipments through customs and ensures that the documentation accompanying a shipment is complete and accurate.
Schedule of charges assessed by the government on imports/exports.
A union of countries where there are no duties on products traded among member nations and common external tariffs levied on imported products from non-member states.
Customs-Trade Partnership against Terrorism (C-TPAT)
A joint government/business initiative to build cooperative relationships that strengthen overall supply chain and border security. The voluntary program is designed to share information that will protect against terrorists’ compromising the supply chain.
An inventory accuracy audit technique where inventory is counted on a cyclic schedule rather than once a year. A cycle inventory count is usually taken on a regular, defined basis (often more frequently for high-value or fast-moving items and less frequently for low-value or slow-moving items). Most effective cycle counting systems require the counting of a certain number of items every workday with each item counted at a prescribed frequency. The key purpose of cycle counting is to identify items in error, thus triggering research, identification, and elimination of the cause of the errors.
An inventory system where counts are performed continuously, often eliminating the need for an annual overall inventory. It is usually set up so that A items are counted regularly (i.e., every month), B items are counted semiregularly (every quarter or six months), and C items are counted perhaps only once a year.
The amount of time it takes to complete a business process.
Cycle Time to Process Excess Product Returns for Resale
The total time to process goods returned as Excess by customer or distribution centers, in preparation for resale. This cycle time includes the time a Return Product Authorization (RPA) is created to the time the RPA is approved, from Product Availablability for Pick-up to Product Received and from Product Receipt to Product Available for use.
Cycle Time to Process Obsolete and End-of-Life Product Returns for Disposal
The total time to process goods returned as Obsolete & End of Life to actual Disposal. This cycle time includes the time a Return Product Authorization (RPA) is created to the time the RPA is approved, from Product Available for Pick-up to Product Received and from Product Receipt to Product Disposal/Recycle.
Cycle Time to Repair or Refurbish Returns for Use
The total time to process goods returned for repair or refurbishing. This cycle time includes the time a Return Product Authorization (RPA) is created to the time the RPA is approved, from Product Available for Pick-up to Product Received, from Product Receipt to Product Repair/Refurbish begin, and from Product Repair/Refurbish begin to Product Available for use.
A situation where demand patterns for a product run in cycles driven by seasonality,festivities ,natural calamities etc.