Glossary

A company whose goods are used as components in the products of another company (a value-added reseller) which then sells the finished item to users.

See Over, Short, and Damaged (OS&D).

The movement and storage of products from the end of the production line to the end user, including packaging, warehousing, and shipping.

A data point that differs significantly, being either very high or very low, relative to the rest of the other data.

In shipping, the costs directly assignable to a particular unit of traffic and which a company would not have incurred if it had not performed the movement.

Involving the supplier in a close partnership with high levels of trust, mutual respect, and emphasis on joint problem solving and cooperation.

To contract with a third party provider to perform functions previously performed in house, such as manufacturing products or support services.

Encompasses the value of all outsourced activities that roll up as cost-of-goods sold. Examples include assembly, testing, and metal finishing or painting.

Shipping variances for the condition of the cargo and/or the final quantity of goods received by the consignee. Also, the process to resolve the discrepancies.

Motor carrier transportation that is longer in distance than local operations. Often use different equipment and subject to different regulations than local moves.

A truck driver who owns and operates his or her tractor and trailer.

See Path to Profitability (P2P) or Peer to Peer (P2P).

Document that contains information - such as the product name, description, quantity and weight - of each item being shipped.

A platform, usually made from wood or composite materials, on which cartons are stacked and then used for shipment. Designed to be moved by forklifts.

A device used to wrap a pallet’s contents in stretch wrap to assist in minimizing movement and protecting contents during the shipment of the goods.

A small package that is typically handled by providers such as UPS and FedEx.

The pareto principle is an observation, not scientific, that 80% of consequences come from 20% of the causes. It helps to focus on those things with the most impact.

See Marine Cargo Insurance - Average.

Also called particulate polution. A mixture of solid particles and liquid droplets found in the air. Subject to regulations in most countries.

Purposely eliminating small differences between similar items to minimize part proliferation, minimize costs, and improve inventory management.

Measures output and efficiency for passenger transportation. It represents the number of passengers transported and the distance traveled.

A string of characters, verbal command, or biometric feature used to authenticate an identity or to verify access authorization.

A clearly defined route to profitability, a business plan that includes forecasted or projected figures and milestone markers that the firm is aiming to achieve.

The transfer of one form of good, service or financial asset in exchange for another form of good, service or financial asset. Example: money exchanged for goods.

Obtaining the good, service or financial asset due from another. Includes the process of billing for, receiving, and accounting for the assets due.