Logistics terms
ABC analysis
Universal method for classifying items. ABC analysis is often used in materials management to classify inventory items. A classification of items is usually determined, based on the annual turnover value per item. The results of the ABC analysis are displayed in tabular or graphical form, with the aid of a Lorenz curve (concentration curve), in which the cumulative number of items is plotted on the X-axis and the cumulative annual turnover of the items on the Y-axis. The highest annual turnover items are classified as A items and the lowest turnover items as C items.
Procurement logistics
This is a generic term covering all the logistics activities that are conducted to supply an organisation with materials, services, operating and working resources from external sources (both from the goods and services sectors).
B2B
Abbr. for Business to Business. Refers to commercial transactions (such as, sales, quotations or auctions) between commercial players that are handled either through service providers or as a direct connection via the Internet.
B2C
Abbr. for Business to Consumer. Refers to business transactions (such as, sales, quotations or auctions) emanating from commercial users and targeted at private customers, which are often conducted using service providers over the Internet.
Batch
A specific amount of material or items. Despite standard production parameters, batches produced at different times may have slightly different production conditions that lead to qualitative differences.
Cross docking
This is generally taken to mean a distribution logistics activity, which aims at a quick turnaround and the release of consignments based on needs, within a specific transfer station.
DESADV
Abbr. for Dispatch Advice
Distribution logistics
This covers all the physical and administrative processes for distributing goods from an industrial or commercial enterprise to the downstream businesses or consumers. While taking into account the requirements of the delivery service, it is important to deliver the right goods, in the right quality and quantity, to the right place at the right time.
EAN
Abbr. for European Article Number
EDI
Abbr. for Electronic Data Interchange: Electronic data exchange of structured data such as orders, invoices or inventories between the information systems of at least two companies.
EDIFACT
Abbr. for Electronic Data Interchange for Administration, Commerce and Transport. Standardised electronic data exchange programs for contract and order processing in business and industry.
FCL traffic
Full container load; door-to-door container traffic where the shipment goes by a shipper to a consignee.
FIFO
Abbr., for first in, first out (outsourcing principle, which is usually only feasible in rack storage)
FTP
File Transfer Protocol; Internet FTP connection protocol used for remote data transmission of files
Fulfilment order processing
Order processing is a complex sequence of activities required to complete a sales order. This extends from order submission, by the customer to the company, through to the payment of the service fees after the fulfilment of the order.
Inventory
A differentiation needs to be made between the inventory at stock taking (periodic inventory) and the on-going (or perpetual) inventory. At stock taking, the warehouse is closed at that time and each item is counted. Each item of the on-going inventory must be counted once a year.
INSDES
Instruction to dispatch (delivery instruction). A message from one transport partner to another who has control over ordered goods. It contains instructions to deliver or pick up a shipment in accordance with the conditions contained in the message.
INVRPT
Inventory report message. The message is used to exchange information about stocks and planned or target stocks. The message inventory report can be passed between trading partners in any direction.
INVOICE (invoice message)
This type of message is a request for payment of goods and services according to the agreement between the seller and the buyer.
Just in Time (JIT)
It means literally “just in time”, i.e. neither “too early” nor “too late”. However, this literal meaning is far from sufficient to convey the conceptual content generally attributed to the JIT principle. JIT refers to a specific way of thinking, or organisational philosophy, focused on materials flow, the avoidance of waste, continuous improvement and the simplification of logistical processes.
CEP
Courier, express and parcel services. Providers of CEP services mainly carry consignments of relatively low weight (up to about 31 kg) and volumes, such as letters, small parcels and small general cargo, within clocked transport periods (24-hour, 48-hour services).
Contract logistics
Logistics services taken over and provided over the long term. The term contract logistics refers to the process of bidding for and taking over complex service provider packages for freight forwarders, parcel services and other logistics service providers. Typically, several basic services such as transport, storage, handling or simple assembly and packaging operations are provided to the external partner.
Inventory coverage
The period of time for that inventory in the warehouse will cover the customer demand.
Inventory turnover ratio (ITR)
Evaluation of the number of times the warehouse inventory turns over completely during one year.
LCL traffic
Less than container load: Term used in worldwide container traffic (mainly shipping), referring to the loading or unloading of smaller consignments into/from containers in distribution centres (particularly seaports) by one or several consignors along the transport chain.
LIFO
Abbreviation for last in, first out (outsourcing principle, only feasible in block stacking warehouses)
Mailbox
Virtual mailbox within e-mail systems
BBD
Best before date
Odette
Pan-European EDI user group of the European automotive industry and its suppliers with the aim of developing industry specific message types based on the EDIFACT syntax.
Out of stock
No inventory available for the item required
Outsourcing Sourcing of services, that were previously provided in-house using the companies own resources, to “outside” third-party suppliers or service providers.
Perpetual inventory
On-going inventory tracking allowing the quantity and value of the assets and debts to be determined at a specific time, without a physical inventory check (stock take). It is based on warehouse accounting. A physical inventory (stock take) can be made at any time within a financial year.
Picking
Physical order picking
Reverse logistics
Reverse logistics deals with returns management and must fulfil extremely time critical requirements: 1. The credit to the customer account must be made very quickly; 2 The returned goods must be inspected very quickly, and if necessary refurbished, repackaged and fed back into the available stock.
SET KIT display
Compilation of multiple items into a new item (e.g., a toolbox or various wines in over packaging).
SPOC
Single point of contact for the customer. Stock take, or physical inventory of all assets and debts at a specific date.
Supply chain
Also called value chain. A value chain of a product includes all stages of production and sales, from the extraction of raw materials on to production and sales and after sales service to the consumer.
Supply chain management
Is the active design and ongoing mobilisation of the supply chain within the economy, with the objective of securing and increasing the success of the companies involved along the supply chain.
SSCC
The serial shipping container number is the number of the shipping unit: Internationally standardised number for clear identification of goods in transit. The number consists of 20 digits and is structured as follows: The first two digits serve as identifiers (qualifiers) and identify this number as the number of the shipping unit. The third digit classifies the transport unit used. This is followed by a 7 digit international identifying company number of the consignor. Numbers 11-19 are available for the continuous marking of goods in transit. The last number is a check digit over the last 17 digits.
General cargo
Packaged or unpackaged goods weighing up to 3 tonnes, which can be treated as a handling unit during transport, storage and transshipment operations. A general cargo consignment does not fully utilise the means of transport, and it is often transported in interrupted traffic. The exact definition of a general cargo shipment differs according to the mode of transport.
SVS/RVS
Forwarder’s and Carrier’s Insurance Certificate
Partial load
Refers to a consignment in road haulage and rail freight traffic, which does not fully utilise the means of transport but also should not be transshipped. In contrast to groupage transport, pick-up is by the shipper. The same applies to the delivery to the recipient.
Tracking and Tracing
System for tracking the shipment, where tracking refers to the determination of the current status (state, location). Tracing, or establishing a shipment history, is referred to when the exact shipment history with all important events can be traced and reconstructed.
Transshipping point (TSP)
A point, used in the distribution logistics of trading companies for transferring goods, which does not manage inventory but functions purely as a collection, transshipment and distribution point. A TSP has the task of converting deliveries, related to the supplier, into deliveries related to sales outlets.
Third party logistics provider (3PL)
In addition to traditional operational logistics services such as transport and storage, a 3PL offers additional services such as order processing and customer service, the implementation and operation of information and communication systems or logistics planning support.
Fourth party logistics provider (4PL)
As a network integrator, the 4PL takes over the overall control of the technology and human resources distributed in the network. By incorporating the resources, technologies, and expertise of other complementary service providers, such as 3PL or IT solution providers, it establishes the business process management.