An affiliated wholesaler refers to a wholesaler who sponsors or owns a group of affiliated retailers, or a wholesaler who affiliates with other wholesalers under a common trade name for merchandising purposes.
Air freight refers to the use of air transportation for sending cargo. It offers the advantages of speed and reliability, making it ideal for shipping urgent, high-value, or perishable goods.
A back haul refers to the shipper's movement when returning over a route previously used, often optimizing logistical efficiency by having cargo for both legs of the journey.
A broken lot refers to an incomplete set of merchandise, often resulting from damage or improper packaging.
Cargo refers to freight or merchandise transported on a transportation vehicle, such as a ship, airplane, truck, or train, excluding passengers. It covers a broad range of goods, from raw materials to finished products, playing a crucial role in global trade and logistics.
Central buying, a widely used chain store practice, involves consolidating all purchasing through a central or main office. This strategy ensures that shipments of merchandise are usually directed to the various branches of the store.
A consignor is any person or organization that sends goods to a consignee or a principal who sells goods on consignment through an agent, usually in a foreign country.
A type of inflation caused by increasing prices, typically resulting from rising costs of production inputs such as raw materials and wages.
Dead stock refers to inventory that remains unsold for an extended period. This unsold inventory can result from factors such as changing consumer preferences, overstocking, or product obsolescence. Businesses often seek to identify and manage dead stock effectively to minimize storage costs and free up capital for more profitable inventory.
A warehouse facility specializing in the collection and shipment of merchandise, ensuring efficient movement and storage of goods within a supply chain.
A distribution centre is a specialized warehouse typically operated by manufacturers to handle the bulk receipt and dispatch of goods to retailers.
The network of firms essential for distributing goods or services from producers to consumers. This setup primarily includes wholesalers and retailers.
A distributor is an intermediary or one of a chain of intermediaries that specializes in transferring a manufacturer's goods or services to consumers, often aiding in the efficient management of supply chains.
Electronic Data Interchange (EDI) refers to the use of electronic data-transmission networks to move information from one computer system to another, typically without human intervention. This technology is widely used for automating orders, invoices, and payments between suppliers, customers, and banks, among other applications.
Final goods, also known as consumer goods, are goods that are not used as inputs in the production of other goods but are intended for consumption by the end consumer.
Finished goods are products that have completed the manufacturing process and are ready for distribution to customers.
In the context of shipping, 'forward' refers to the act of sending a package or goods from one location to another. This often involves redirecting items to a new address when the original address is not suitable for delivery.
A forwarding company, also known as a freight forwarder, is a business entity that arranges the shipment of goods on behalf of individuals or companies. They handle the logistics of transporting goods, including documentation and customs clearance.
Indirect production refers to the creation of goods or services that are not directly consumed but are essential for the production of final products or services.
An industrial distributor is a wholesaler who sells products to industrial customers rather than to retailers, providing a vital link in the supply chain.
In transportation, an inland carrier is a company responsible for moving goods from a port of entry to an inland point within the continent. These carriers play a crucial role in the supply chain by ensuring that goods reach their final destinations efficiently.
Intermediate goods are materials or components that are transformed by production processes into another form, often used to create final goods. For example, steel is an intermediate good that can be transformed into automobiles or ships.
Inventory control, or stock control, is a control system designed to ensure adequate but not excessive levels of stock are maintained by an organization. It takes into account consumption levels, delivery lead times, reorder levels, and reorder quantities for each commodity.
Inventory turnover, also known as stock turnover, is a ratio that measures the frequency with which items of stock are used or sold annually.
Just-In-Time (JIT) inventory control is a methodology designed to improve efficiency by reducing in-process inventory and its associated costs. It involves close coordination with suppliers to align production schedules with sales levels and often integrates computerized systems for optimal inventory management.
The comprehensive plan for scheduling the delivery of required supplies and materials at destinations as needed.
Material control is the management term referring to the process of ensuring that the necessary materials for production are available at the required place, time, and quantity while maintaining proper accountability and avoiding overstocking.
Materials Management is the administration of all activities concerned with the ordering, storage, and movement of materials, with a focus on optimizing the storage of raw materials, parts, and the manning of production operation centers.
On order refers to goods or services that have been requested through a purchase order but have not yet been received or paid for.
The Order-Point System is an inventory management method wherein inventory is replenished automatically once it reaches a predetermined threshold, ensuring sufficient stock to meet demand and avoid stockouts.
Physical distribution involves the process of moving finished products from the producer to the consumer, including all activities concerned with the efficient movement and storage of goods.
Pier to house shipping refers to the transportation of goods from the storage location at the shipping port directly to the consignee's specified location, typically their home or business.
A pipeline refers to a method or system used for the consistent and controlled delivery of goods, services, or information.
Pre-financing refers to an arrangement where a buyer, often an importer, finances the activities of a supplier by making an advance payment against future delivery. This practice is sometimes employed as a fair trade policy to support farmers in developing nations.
A private carrier is a transportation system owned and operated by a company for its own shipping requirements, specifically transporting goods or passengers exclusively for that company's business purposes.
The term 'produce' refers to both the act of creating or manufacturing goods and the classification of agricultural products like fruits and vegetables.
Raw materials are the basic materials that are used at the very beginning of a production process, essential for manufacturing final products.
A receiving clerk plays a crucial role in a firm's logistics by inspecting, verifying, and recording all incoming goods to ensure accurate inventory management and quality control.
A comprehensive document created for each shipment received by a company, containing detailed information used for verification and accounting purposes.
A standing order is an instruction to make repeated shipments of goods without requiring individual reorder confirmations. These orders are continuous, adhering to predefined quantity and time specifications.
A stevedore is a company or individual responsible for unloading and loading cargo from ships, ensuring smooth and efficient movement of goods at ports. The terms 'longshoreman' and 'docker' are often used interchangeably with stevedore.
A stock-out occurs when the inventory of a particular item is depleted, leading to a situation where no stock remains in store available for sale or use.
A stockpile is a reserve supply of raw materials or goods accumulated to meet continuous or future demands and overcome potential shortages. Businesses often maintain stockpiles to ensure smooth operations during unforeseen disruptions in supply chains.
A stockroom is an area or room where stock of goods, materials, and other supplies are maintained, often used in commercial and industrial settings for inventory management, storage, and organization.
A supplier is an individual or entity that provides goods, materials, or services to another organization, typically in a commercial context.
Understanding how making a product available at a convenient time enhances its marketability.
United Parcel Service (UPS) is a freight company that specializes in the transportation of letters, packages, and freight. It is one of the leading providers in the logistics and transportation industry globally.
A warehouse is a structure designed for the storage of commercial inventory, used primarily by manufacturers, importers, exporters, wholesalers, and transport businesses.
A wholesaler acts as a middleman by purchasing large quantities of products from manufacturers and reselling them to retailers or other businesses rather than to the final consumers, enabling the distribution process in the supply chain.
