Glossary

An agreement where payment is initiated by product consumption, such as with consignment stock based on the withdrawal of product from inventory.

The sum total of all compensation - such as wages, benefits, and profit sharing - a business must pay to its employees for a set period of time or on a given date.

See Profit Before Interest and Tax (PBIT).

See Personal Computer (PC).

Pickup and delivery.

See Plan-Do-Check-Action (PDCA).

In logistics, the time period when the desire by customers for goods or services is at the highest point.

A network of computers connected via the internet and that can share data directly without the need of a central server.

A DRP system technique that traces demand for a product by date, quantity, and warehouse location to help forecast future needs and optimize inventory levels.

Per day; a daily rate. In railroading, the rate that a railroad company pays to use another company’s freight cars.

Error free; delivered on-time, with the right quantity of items, without any quality issues, the correct paperwork, and to the customer's satisfaction.

Programs that track and report key measurements in the supply chain – inventory days of supply, on-time delivery, order cycle times, capacity utilization, etc.

A document that grants a business permission to do something, such as to operate as a contract carrier. Often needed for special moves (e.g., oversize shipments).

An accounting method where the record of inventory is kept continuously up to date by detailing entries for all incoming and outgoing items as they occur.

A single-user general purpose computer that uses microprocessor technology and is intended to be operated directly by an end user.

In logistics, when a company charges different rates to shippers with similar transportation characteristics or similar rates to shippers with differing characteristics.

All logistics related activities to get finished goods from the production line to the final user. See Distribution.

In logistics, the movement and storage of raw materials from supply sources to the manufacturing facility, including transportation, handling, and storage.

The process of retrieving products from storage locations to fill customer orders. Process may be automated, manual, or a combination of methods.

A method where all needed items in an aisle are picked regardless of the items’ ultimate destination and the items are later sorted by destination.

A method where all items going to a particular destination are successively picked regardless of the aisle in which each item is located.

A document displaying the items to be selected from stock to fill an order. While simple in output, the selection process can be sophisticated.

The process of selecting and gathering products within a warehouse and preparing them for shipment. Process may be automated, manual, or a combination.

A picking system that consist of lights and LED displays for each pick location. Software is used to light the next pick and display the quantity to pick.

A document that authorizes the designated party to pick up cargo or equipment from a specified location within a specified time frame.