Supply Chain Logistics: Foundational Knowledge for Frontline Workers

Critical vocabulary and concepts for frontline supply chain logistics workers including inventory types, job roles, warehousing functions, and essential logistical terms.

Inventories

Controlled quantities of materials contained within storage, production, warehousing, and distribution facilities.

Raw materials

Materials that consist of items ready for use in the production process.

Work-in-Process (WIP)

A category of inventory that includes all materials currently being processed.

Finished goods

Finished products that are ready for storage or immediate shipment.

In-transit products

Products that are in the process of being transported from a supplier to a customer.

CLA and CLT

Industry certifications standing for Certified Logistics Associates and Technician.

Entry level pay for material movers

An expected starting salary of approximately $35,000$ and up.

Director of distribution annual pay

An expected salary level of approximately $150,000$.

Vice president of logistics annual pay

A salary level in the arena of $230,000$ per year.

Senior vice president of logistics annual pay

A salary level of $260,000$ and above.

Receiving

The function encompassing the physical receipt of material, identifying goods, inspecting for quantity and quality using binary criteria, and preparing reports with Stock Keeping Units (SKUs).

Stocking

The process of assigning products to the proper location within a warehouse or distribution center, such as rack, bulk, or repack areas.

Cross-docking

The process of moving items directly from an incoming trailer or container to an outgoing trailer or container with little or no storage time in between.

Order processing

The activity required to administratively process a customer's order and assemble products from various locations to make it ready for shipment.

Picking

A term associated with order processing that includes full case, repack, and bulk or pallet selection.

Packaging

Materials surrounding an item to protect it from damage during transportation, often involving stretch wrapping for pallets.

Shipping

A process determined by the customer that includes carrier selection, product labeling, palletization, and preparing documents like packing slips and bills of lading.

Order cycle time

The time it takes to process an order from the moment it is received from the customer until the moment the order is delivered.

Transportation lanes

Paths used to move inventory between facilities along a particular mode of transportation using a combination of vehicles and containers.

Five basic modes of transportation

The categories of carriers divided into truck, air, rail, water, and pipeline.

Supply chain

The global network used to deliver products and services from raw materials to end customers through an flow of information, physical distribution, and cash.

Warehouse

A facility specifically used to store inventory.

Distribution centers

A warehouse that specifically houses finished goods and/or service items.

Supply (Quantity)

The quantity of goods available for sale, or the actual or planned replenishment of a product created in response to or anticipation of demand.

Demand

A specific need for a particular product or component.

Stock

Items in inventory or stored products ready for sale, which are distinguished from 'stores' (components or raw materials).

Logistics satisfaction factor: Feeling of accomplishment

The top factor affecting job satisfaction, identified by $57\%$ of readers in a 2021 survey.