SCM 301 Final

breakbulk

These shipments are broken down into smaller quantities and either added to other shipments of delivered to customers using less-than-truckload (LTL) services. There are special facilities designed for this purpose that receive large truckload (TL) shipments that are destined for several customers.

cross-dock

A situation where materials from multiple suppliers are unloaded, sorted, and shipped to different destinations. Materials flow through the facility with little or no storage. Cross docking improves shipping efficiencies, enabling you to ship in full truckload quantities—both inbound and outbound.

custom brokers

3PL that specializes in international shipments. A customs broker is responsible for knowing all of the relevant rules and regulations from the point of origin through to the destination and ensuring compliance. Customs brokers know the right people at the right government agencies to help resolve shipping problems.

distribution channel

A set of independent organizations involved in making the product available for purchase

e-commerce

Business that is conducted over the internet, referring to orders that are placed online

FOB destination

Shipping term that indicates that the seller is responsible for choosing and paying for the transportation and bears all the risk from the time the shipment leaves the supplier.

FOB Origin

Shipping term that indicates that the buyer is responsible for choosing and paying for the transportation and bears all the risk from the time the shipment leaves the supplier.

Freight Forwarder or NVOCC

Arrange for transportation across different modes and sell insurance for international shipments. They also sell expertise—especially regarding export regulations and documentation. You'll sometimes hear people refer to these firms as NVOCCs (Non-Vessel Operating Common Carriers).

incoterms

Standardized international commercial terms that define obligations, costs, and risks in the delivery of goods from the seller to the buyer. The use of incoterms is strongly encouraged to provide greater clarity in responsibilities associated with international shipping.

infastructure

The processes, equipment, people and flows that support a particular industry or activity. For example, logistics infrastructure includes information systems, roadways, airports, truck drivers, distribution centers and much more to make logistics operations possible.

intermodal transportation

The practice of combining transportation modes while moving products.

last-mile

Physically delivering an item the last bit of distance to a customer's home.

Less-than-truckload (LTL)

Carriers that consolidate smaller loads from multiple customers to fill a trailer and achieve shipping economies.

Parcel Carriers

Integrators such as DHL, FedEx, and UPS, which carry very small loads from shippers to individual customers.

Place Utility

Involves delivering an item exactly where it is needed, for example the exact dock assigned for drop off, not just at the correct distribution center.

Seven Rights of Logistics

Effective logistics management is about getting the right product to the right customer, at the right time, in the right condition, in the right quantity, at the right place and for the right cost.

slow steaming

Reducing the speed of a ship dramatically (often by 1/3 or more) in order to reduce fuel consumption and environmental damage.

time utility

Occurs when a product arrives when it is needed, not earlier or later.

tradeoffs

Giving up something in order to get something else. In logistics, there is often the trade-off of paying more to get product moved faster

truckload

Refers to situations in which a trailer is filled with freight and travels from origin to destination without intermediate stops for loading, unloading, or consolidation of loads.

Twenty-Equivalent Units

The standard measure for ship capacity, referring to a container that measures 20 feet in length. The largest containerships in operation today have capacity for 18,000 TEUs.

Bulk Freighter

Ships that carry unpacked cargo, such as coal or grain.

Collaborative Transportation Management (CTM)

A process that gets supply chain members and third-party service providers to work together to eliminate transportation inefficiencies. It is an extension of the collaborative planning, forecasting, and replenishment (CPFR) process established by the VICS organization.

FOB (free on board)

Back
Shipping term that indicates which party is responsible for the transportation arrangements, the ownership of goods and risks until a given point in the shipment. The term is usually used with a location to specify the FOB type. (see also FOB Destination and FOB Origin).

Fronthauls and Backhauls

Terms that indicate the freight flows back and forth between two points. A move from A to B is the fronthaul. A move from B to A is the backhaul.

Incoterms

Standardized international commercial terms that define obligations, costs, and risks in the delivery of goods from the seller to the buyer. The use of incoterms is strongly encouraged to provide greater clarity in responsibilities associated with international shipping.

Less-than-truckload carriers

Carriers that consolidate smaller loads from multiple customers to fill a trailer and achieve shipping economies.

Longer-combination Vehicles or LCVs

Trucks that haul multiple trailers in order to improve transportation economies of scale. LCVs require special clearance to operate on most roadways.

Roll On/Roll Off (Ro-Ro)

Ships that have built-in ramps so that cargo, like cars or construction equipment, can be rolled on and off efficiently.

Tanker

"Ships that move liquids like chemicals, oil, and natural gas."

Total Landed Cost

the total price of a product once it has arrived at a buyer's door. The landed cost includes the original price of the product, all transportation fees (both inland and ocean), customs, duties, taxes, insurance, currency conversion, crating, handling and payment fees.

Trailer On Flatcar (TOFC) or Piggyback

Combining the operating characteristics of truck and rail by placing a trailer on a flatcar. This method allows shippers to take advantage of the low cost of rail for the long-haul and the reach of a truck for the final delivery.

Truckload Carriers

Carriers that offer direct door-to-door service between two locations for a single shipper, carrying large enough loads so that the weight and volume capacity of a trailer is used as much as possible.

Unit trains

Dedicated trains that move from a single origin to a single destination

Automated Storage and Retrieval System (AS/RS)

Computer controlled equipment system that stores and retrieves cases or pallets from specified storage racks.

Bonded Warehouses

Facilities where imported or exported materials can be stored in order to delay the payment of duties (taxes).

Breakbulk Warehouses

Facilities that receive large truckload (TL) shipments that are destined for several customers. These shipments are broken down into smaller quantities and delivered to customers using less-than-truckload (LTL) services.

Case Pick Warehouse

Facilities where cases of items are stored and picked for customer orders. The picked cases are arranged on pallets before shipment.

Center-of-Gravity Model

An approach used to compute the geographic center for a set of demand/supply volumes. The goal is to minimize the weighted distance/cost to ship goods from suppliers to the distribution facility as well as to ship goods from the distribution facility to customers.

Cross Dock Facility

"A warehouse where materials from multiple suppliers are unloaded, sorted, and shipped to different destinations. Materials flow through the facility with little or no storage. Cross docking improves shipping efficiencies, enabling you to ship in full truckload quantities--both inbound and outbound."

Customs Warehouse

Facilities where you can store imported or exported materials in order to delay the payment of duties (taxes).

DMAIC Methodology—define, Measure, Analyze, Improve, and Control

A data-driven approach to improving processes that is a key component of a Six Sigma initiative.

Depalletizer

A machine that uses vacuum force to remove the cases layer by layer from the pallet.

Direct Ship

A method that involves delivering goods directly from a supplier to the customer.

Distribution Centers (DC)

A warehouse that holds inventory pending distribution to stores.

Duties (Taxes)

A tax charged by the government for imported goods.

Finished Goods Warehouse

Facilities where finished products are stored. Finished goods warehouses are often used to pre-position inventory to assure faster, more responsive delivery to customers.

First-In, First-Out (FIFO)

Items, cases, or pallets that are received first are the first to be shipped for the purpose of rotating inventory, minimizing the risk of owning out of fashion merchandise.

Form Postponement

A strategy that involves delaying giving a product its final form until the exact order comes in.

Forward, Active, Storage

The act of picking individual cases-or items-to fill specific orders

Frustrated Freight

Inventory that is left overnight in a cross-dock.

Lean Warehousing

Warehouse facility management that employs lean principles in order to streamline day to day operations.

menu pricing

The application that allows a customer to pay for only the services received and the space used when working with an outside expert (a public warehouse or 3PL) for warehousing needs.

Omni-channel Fulfillment Centers

Facilities that are designed to handle both retail store and home delivery efficiently and effectively.

open-air storage

The storage method of storing items outside in the open-air.

pickers

Warehouse workers that pick individual cases or items from the warehouse shelves to fill orders.

picking list

A list that documents all the cases or items that need to be picked from the warehouse shelves for specific orders.

Poka-yoke

"Any mechanism that assists in avoiding, correcting or drawing attention to errors done by the users of the system."

portfolia effect

A situation when some customers order less than expected, and other customers order more than expected, and they cancel each other out.

private warehousing

The act of running one's own warehousing operations, regardless of the ownership status of the warehouse facilities (company owned or rented).

process variability

The random unsteadiness of processes that is measured by its standard deviation.

product availability

A performance indicator that looks at the availability of products that are required for purposes of picking and filling customer orders, in a warehouse.

production economies

Producing in large lots and storing product until customers want to use it.

public warehouse

Facilities that provide long-term or short-term warehousing services to companies.

Radio-frequency-enabled (RF) Scanner

A hand-held device used by pickers to scan cases or items while taking them off a rack.

random storage slots

The method of storing less-frequently moved items in random locations within a warehouse to avoid dedicating space for these items.

Red Tag Initiative

A method that aims to eliminate waste in the workplace. Red tags are placed on items that are suspected to be redundant in the work area, and then after some time, if it is seen by the users that these items are truly not used, they are discarded or moved to an appropriate storage area, for future need.

reserve storage

An area in a warehouse that holds caseloads of product in reserve until they are needed for picking to fill daily orders.

shrink wrapping

Packaging cases or pallets of items in a transparent plastic film that shrinks and clings tightly around the contents.

silos

Tall circular towers that are used to store grains after harvest until they are ready for use.

throughput

The total volume that a facility can process in a specific period of time (day, week, month, or year).

Total Cost Analysis for Warehousing

The analysis that involves identifying all relevant costs of going through with a decision

total quality management programs

An approach to long-term success through customer satisfaction that relies on engaging all members of an organization to improve processes, products, and organizational culture

transportation economies

Taking advantage of full truckloads in both inbound and outbound shipments. Inbound shipments are broken down and stored at the warehouse; outbound shipments are consolidated and shipped at the warehouse.

value-added manufacturing

Process(es) that a product goes through that changes its form, creating added value for the product.

visual management

Refers to efforts for "seeing" and making sense of an activity or process. See "Poka Yoke" for an example.

the Square root of N Rule

The rule that states that the system-wide safety stock is directly related to the square root of the number of warehouses in the network.

Auxiliary Power Unit (APU)

A separate power unit used to heat or cool the cab and/or trailer when the engine is turned off—prevents excess idling.

Corporate Social Responsibility (CSR)

organizations have responsibility to consider the environmental, social and the financial implications of their activities. (See triple bottom line)

Cradle to Cradle

An approach that looks at the entire lifecycle of a product (i.e., cradle to grave) and extends the analysis to include return, re-use, and recycle issues. The goal is to re-use or recycle as much as possible when the product's original useful life is complete

cradle to grave

Considering a products environmental impact from its earliest stages to disposal.

Design for Environment

Encourages companies to take a big-picture view of environmental impact, evaluating tradeoffs to find the best product and supply chain design to minimize environmental impact.

Design for Recyclability

Design products that are easier to upgrade and/or recycle.

ecolgoical footprint

The amount of of land and natural resources required to produce the goods and services necessary to support a particular lifestyle.

empty miles

Same as empty backhaul.

geothermal

A form of energy which draws on the heat beneath the surface of the earth to provide energy.

governors

Piece of equipment that limits the speed of a vehicle, generally for safety and/or fuel efficiency reasons.

greenhouse gases

Carbon dioxide and other harmful gases such as methane and nitrous that trap heat in the atmosphere and contribute to global climate change.

Lifecycle Analysis

To design products that minimize their impact over their cradle-to-cradle product lifecycle, understanding the impact at each stage, how the impact at one stage affects other stages, and the total impact.

Materials Innovation

To reduce the amount of materials used in products by developing materials that have less environmental impact and more value at end-of-life.

Product Lifestyle

considers how demand for a product changes from the time it is introduced until it is discontinued.

reduce

Make better quality, longer lasting products so that companies don't have to replace them as often.

Scope 1

Emissions a company directly produces.

Social Responsibility Bias

When people have the tendency to say that they will do the socially responsible thing but fails to actually perform the socially responsible behavior.

energy efficiency

Reduce the energy needed to manufacture and use products.

triple bottom line

Social, environmental, and financial implications of an action or decision

Clockspeed

The rate of change in an industry.

Failure Mode and Effect Analysis (FMEA)

An approach in which every possible malfunction or defect is thought about, what may have caused it, what its impact may be, how likely we are going to notice that something is wrong (or than a risk is impeding), and how we can prevent it from happening.

heat map

A visual tool for differentiating risks that can help you decide which risks to focus on. Risks are generally positioned on the map based on two dimensions: the likelihood of the risk and the severity of the risk (shout it materialize).

hedging

The purchase of future contracts that ensure you to buy fuel to a specific price