Line Scrap

Value of raw materials and work-in-process inventory scrapped as a result of improper processing or assembly, as a percentage of the total value of production at standard cost.

Link

The transportation method used to connect the nodes (plants, warehouses) in a logistics system.

Linked Distributed Systems

Independent computer systems, owned by independent organizations, are linked in a manner that allows direct updates to be made to one system by another. For example, a customer's computer system is linked to a supplier's system, and the customer can create orders or releases directly in the supplier's system.

Little Inch

A federally-built pipeline, constructed during World War II, connected Corpus Christi and Houston, Texas.

Live

A situation in which the equipment operator stays with the trailer or boxcar while it is being loaded or unloaded.

LLP

Lead Logistics Partner

LMS

Labor Management System

Load Factor

A measure of operating efficiency used by air carriers to determine the percentage of a plane's capacity that is utilized, or the number of passengers divided by the total number of seats.

Loading Allowance

A reduced rate is offered to shippers and/or consignees who load and/or unload LTL or AQ shipments.

Loading Port

The port where the cargo is loaded onto the exporting vessel must be reported on the Shipper's Export Declaration, Schedule D. This information is used by U.S. companies to determine which tariff is used to freight rate the cargo for carriers with more than one tariff.

Load Tender (Pick-Up Request)

An offer of cargo for transport by a shipper, load tender terminology is primarily used in the motor industry. Load tendering is the practice of providing a carrier with detailed information and negotiated pricing (the tender) prior to scheduling pickup. This practice can help assure contract compliance and facilitate automated payments (self-billing).

LOC

Letter of Credit

Local Area Network (LAN)

A data communications network spans a limited geographical area, usually a few miles at most, providing communications between computers and peripheral devices.

Local Rate

A rate published between two points served by one carrier.

Local Service Carriers

An air carrier classification refers to carriers that operate between areas of lesser and major population centers. These carriers feed passengers into the major cities.

Locational Determinant

The factors that determine the location of a facility are logistics. For industrial facilities, the determinants include logistics.

Location Grid

A layout of the warehouse or storage yard is used to enhance the management of efficient put away, pick, and inventory cycle counting. It provides a high-level view of warehouse locations or a general template used to map out a storage yard.

Location Tag

A barcoded sign that hangs above or on a warehouse location. The location number can be read from the tag or scanned with an RF gun.

Locator System

Inventory-tracking systems allow you to assign specific physical locations to your inventory to facilitate better tracking and the ability to store products randomly. The location functionality in software can range from a simple text field attached to an item that notes a single location to systems that allow multiple locations per item and track inventory quantities by location. Warehouse management systems (WMS) take locator systems to the next level by adding functionality to direct the movement between locations.

Lockbox

A method for receiving payments is when customers make their remittance directly to a bank or other financial institution, rather than to the invoicing company. The bank then applies the funds received directly to the company's account and provides the company with a listing (printed or electronic) of all the payments received.

Logbook

A daily record of the hours an interstate driver spends driving, off duty, sleeping in the berth, or on duty but not driving.

Logistics

The process of planning, implementing, and controlling procedures for the efficient and effective transportation and storage of goods, including services and related information, from the point of origin to the point of consumption for the purpose of conforming to customer requirements. This definition includes inbound, outbound, internal, and external movements.

Logistics Chain Manager

Plans the allocation of logistics chain resources to meet logistics chain requirements.

Logistics Channel

The network of supply chain participants is engaged in the storage, handling, transfer, transportation, and communication functions that contribute to the efficient flow of goods.

Logistics Data Interchange (LDI)

A computerized system for electronically transmitting logistics information.

Logistics Management

As defined by the Council of Supply Chain Management Professionals (CSCMP), logistics management is that part of supply chain management that plans, implements, and controls the efficient and effective forward and reverse flow and storage of goods, services, and related information between the point of origin and the point of consumption in order to meet customers' requirements. Logistics management activities typically include inbound and outbound transportation management, fleet management, warehousing, materials handling, order fulfillment, logistics network design, inventory management, supply/demand planning, and management of third-party logistics service providers.

Logistics Service Provider (LSP)

Any business that provides logistics services includes those businesses typically referred to as 3PL, 4PL, LLP, etc. Services may include provisioning, transportation, warehousing, packaging, etc.

LO-LO

Lift On/Lift Off

Long Ton

Equals 2,240 pounds.

Lost Sale

The potential sale (usually a customer order) was not completed, usually due to availability.

Lot Control

A method of tracking production lots primarily used to manage potential recalls.

Lot-for-Lot

A method used in lot-sizing where production orders are created in quantities that match the net requirements for the manufacturing cycle.

Lot Number

Batch Number

Lot Size

The predetermined quantity of goods to be purchased or produced at one time in anticipation of future use or sale.

Lot Sized System

Fixed Reorder Quantity Inventory Model

LSP

Logistics Service Provider

LTL

Less-than-truckload Carriers

Lumping

A term applied to a person who assists a motor carrier owner-operator in the loading and unloading of property.

Lumpy Demand

Discontinuous Demand

M2M

Machine-to-Machine interface.

Machine Downtimes

Time during which a machine cannot be utilized.

Machine-to-Machine interface (M2M)

A term describing the process whereby machines are remotely monitored for status and problems, reported and resolved automatically, or maintenance scheduled by the monitoring systems.

Macro Environment

Major external and uncontrollable factors influence an organization's decision-making and affect its performance and strategies. These factors include economic, demographic, legal, political, and social conditions, technological changes, and natural forces.

Mail Shop

A service provider that specializes in preparing materials for mailing by affixing labels, sorting for bulk rates, preparing bag tags, bagging, etc.

Mainframe

A term sometimes generically used to refer to an organization's central computer system.

Maintenance, Repair, and Operating supplies (MRO)

Any activity – such as tests, measurements, replacements, adjustments, and repairs – intended to retain or restore a functional unit to a specified state in which the unit can perform its required functions. This is a category of software designed to support asset maintenance and management, also sometimes referred to as Computerized Maintenance Management Systems (CMMS).

Major Carrier

A for-hire certificated air carrier that has annual operating revenues of $1 billion or more.

Make-or-Buy Decision

A business decision that compares the costs and benefits of manufacturing a product or product component against purchasing it.