Reference
Warehouse & logistics glossary
The terms you'll see on rate cards, contracts, and shipping documents — defined plainly, no jargon-for-jargon's-sake.
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48 Terms
Delivery is guaranteed on a specific day or at a certain time of the day.
A specific reference date is used as a boundary for policy changes in planning or other systems. A policy that seeks to stabilize the master production schedule may prohibit changes to the existing schedule inside the time fence (which is based on lead time) and allow changes under certain circumstances after that date. Another example is the reaction to demand based on customer orders only inside the lead time fence and based on forecast thereafter.
A rail rate that is based on transit time.
Time schedules of departures and arrivals by origin and destination are typically used for passenger transportation by air, bus, and rail.
The time interval between product concept development and introduction to the marketplace includes specification development, product development, and release to production.
A value is created in a product by having the product available at the desired time. Transportation and warehousing create time utility.
Truckload Carrier
Transportation Management System.
Theory of Constraints
Trailer-on-Flatcar, Piggyback.
A measure of output for freight transportation: it reflects the weight of the shipment and the distance it is hauled. It is calculated by multiplying the tons hauled by the distance traveled.
The dollar amount associated with all direct materials received from January 1 to December 31.
Total annual sales are the sum of total product revenue and post-delivery revenues (e.g., maintenance and repair of equipment, system integration), royalties, sales of other services, spare parts revenue, and rental/lease revenues.
Average normal use stock, plus average lead stock, plus safety stock.
A decision-making approach that considers the minimization of total costs and recognizes the interrelationship among system variables, such as transportation, warehousing, inventory, and customer service.
A curve that graphically represents the relation between the total cost incurred by a firm in the short-run production of a good or service and the quantity produced.
Acquisition Cost
Total cost of a computer asset throughout its lifecycle, from acquisition to disposal: TCO is the combined hard and soft costs of owning networked information assets.
A measure that sums all costs associated with poor quality or product failure, including rework, scrap, warranty costs, and other costs incurred in preventing or resolving quality problems.
The average time between the commencement of upstream processing and the completion of final packaging for shipment operations, as well as the release approval for shipment, should be calculated. WIP storage time should not be included in this calculation. The formula for calculating this time is as follows: [Average number of units in WIP] divided by [Average daily output in units], minus the WIP days of supply.
Total gross value of inventory at standard cost before reserves for excess and obsolescence includes only inventory that is on the books and currently owned by the business entity. Future liabilities, such as consignments from suppliers, are not included in this calculation. The calculation is as follows: [5 Point Annual Average Gross Inventory] divided by [Cost of Goods Sold/365].
Usually referred to as the total cost of a landed shipment, it includes the purchase price, freight, insurance, and other costs up to the port of destination. In some instances, it may also include the customs duties and other taxes levied on the shipment.
The average total processing time between the commencement of upstream processing and the completion of all manufacturing process steps, up to but not including packaging and labeling operations (i.e., from the start of manufacturing to the final formulated product ready for primary packaging), should be calculated. Please do not include hold or test and release times in the calculation. The formula for calculation is as follows: [Average number of units in active manufacturing] divided by [Average daily output in units].
The average total processing time between the commencement of the primary packaging and labeling steps to completion of the final packaging steps for shipment is calculated as follows: [Average number of units in packaging and labeling work in progress] divided by [Average daily output in units].
Team-based maintenance process designed to maximize machine availability, performance, and product quality.
The total value of sales made to external customers, plus the transfer price valuation of intra-company shipments, net of all discounts, coupons, allowances, and rebates, includes only the intra-company revenue for products transferring out of an entity. It also includes installation services if these services are sold bundled with end products. It recognizes leases to customers initiated during the same period as revenue shipments, with revenue credited at the average selling price. Note: Total Product Revenue excludes post-delivery revenues (maintenance and repair of equipment, system integration), royalties, sales of other services, spare parts revenue, and rental/lease revenues.
A management approach in which managers constantly communicate with organizational stakeholders to emphasize the importance of continuous quality improvement.
Cumulative lead time refers to the total average time required for various processes such as inside-plant planning, supplier lead time (whether external or internal), receiving, handling, etc., starting from the identification of demand at the factory until the materials are made available in the production facility. This lead time is necessary to source 95% of the dollar value (per unit) of raw materials from both internal and external suppliers.
Total cost to manage order processing, acquire materials, manage inventory, and manage supply chain finance, planning, and IT costs, represented as a percentage of revenue. Accurate assignment of IT-related costs is challenging. It can be done using Activity-Based Costing methods or based on more traditional approaches. Allocation based on user counts, transaction counts, or departmental headcounts is a reasonable approach. The emphasis should be on capturing all costs, whether incurred in the entity completing the survey or incurred in a supporting organization on behalf of the entity. Reasonable estimates founded in data are accepted as a means to assess overall performance. All estimates reflect fully burdened actuals, inclusive of salary, benefits, space and facilities, and general and administrative allocations. Calculation: [Order Management Costs + Material Acquisition Costs + Inventory Carrying Costs + Supply Chain-Related Finance and Planning Costs + Total Supply Chain-Related IT Costs] / [Total Product Revenue] (Please see individual component categories for component detail and calculations)
The time it takes to rebalance the entire supply chain after determining a change in market demand is also a measure of a supply chain's ability to change rapidly in response to marketplace changes. The calculation is as follows: [Forecast Cycle Time] + [Re-plan Cycle Time] + [Intra-Manufacturing Re-plan Cycle Time] + [Cumulative Source/Make Cycle Time] + [Order Fulfillment Lead Time].
The average total test and release time for all tests, documentation reviews, and batch approval processes performed from the start of manufacturing to the release of the final packaged product for shipment is calculated as follows: [Average number of units in test and release] divided by [Average daily output in units].
A private motor carrier receives operating authority as a common carrier to haul freight for the public over the private carrier's backhaul. This type of authority was granted to the Toto Company in 1978.
The number of times a labor action is taken during a manufacturing or assembly process. Touches are typically used to measure efficiency or for costing and pricing purposes.
The labor that adds value to the product includes assemblers, welders, etc. This does not include indirect resources such as material handlers (who move and stage the product) or mechanical and electrical technicians responsible for maintaining equipment.
Total Productive Maintenance
Total Quality Management
1) The ability to track the location of a shipment as it moves through the shipping process to the customer. 2) The ability to determine the source of individual lot-numbered or serial-numbered products.
1) Determining where a shipment is during the course of a move. 2) The practice of relating resources, activities, and cost objects using the drivers underlying their cost causal relationships. The purpose of tracing is to observe and understand how costs are arising in the normal course of business operations. Synonym Assignment.
Monitoring and recording shipment movements from origin to destination.
A statistic that reveals instances where parameter estimates in a forecasting model are not optimal. For example, a tracking signal might be based on a graph of the ratio of the cumulative sum of the differences between the actual and forecast values to the mean absolute deviation. If the tracking signal exceeds a certain value, the series can then be flagged for examination. This concept has been used successfully in quality control. It seems sensible also for forecasting, although little research supports its use. An alternative is to use successive re-estimation.
The tractor is the driver's compartment and engine of the truck. It has two or three axles.
Companies that do business with each other via EDI (e.g., send and receive business documents, such as purchase orders) are
The written contract that spells out the agreed-upon terms between EDI trading partners.
A department is responsible for the process of determining timely and economic delivery methods, arranging internal or external transportation, and tracking shipment status and logistics network issues.
The management and control of transportation modes, carriers, and services.
The part of the truck that carries the goods.
When a driver drops off a full truck at a warehouse and picks up an empty one
Transport of truck trailers with their loads on specially designed rail cars. Synonym: Piggyback.
Reference
Warehouse & logistics glossary
The terms you'll see on rate cards, contracts, and shipping documents — defined plainly, no jargon-for-jargon's-sake.
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2279 Terms
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48 terms
Time-Definite Services
Delivery is guaranteed on a specific day or at a certain time of the day.
Time Fence
A specific reference date is used as a boundary for policy changes in planning or other systems. A policy that seeks to stabilize the master production schedule may prohibit changes to the existing schedule inside the time fence (which is based on lead time) and allow changes under certain circumstances after that date. Another example is the reaction to demand based on customer orders only inside the lead time fence and based on forecast thereafter.
Time/Service Rate
A rail rate that is based on transit time.
Timetables
Time schedules of departures and arrivals by origin and destination are typically used for passenger transportation by air, bus, and rail.
Time-To-Market
The time interval between product concept development and introduction to the marketplace includes specification development, product development, and release to production.
Time Utility
A value is created in a product by having the product available at the desired time. Transportation and warehousing create time utility.
TL
Truckload Carrier
TMS
Transportation Management System.
TOC
Theory of Constraints
TOFC
Trailer-on-Flatcar, Piggyback.
Ton-Mile
A measure of output for freight transportation: it reflects the weight of the shipment and the distance it is hauled. It is calculated by multiplying the tons hauled by the distance traveled.
Total Annual Material Receipts
The dollar amount associated with all direct materials received from January 1 to December 31.
Total Annual Sales
Total annual sales are the sum of total product revenue and post-delivery revenues (e.g., maintenance and repair of equipment, system integration), royalties, sales of other services, spare parts revenue, and rental/lease revenues.
Total Average Inventory
Average normal use stock, plus average lead stock, plus safety stock.
Total Cost Analysis
A decision-making approach that considers the minimization of total costs and recognizes the interrelationship among system variables, such as transportation, warehousing, inventory, and customer service.
Total Cost Curve
A curve that graphically represents the relation between the total cost incurred by a firm in the short-run production of a good or service and the quantity produced.
Total Cost of Acquisition
Acquisition Cost
Total Cost of Ownership (TCO)
Total cost of a computer asset throughout its lifecycle, from acquisition to disposal: TCO is the combined hard and soft costs of owning networked information assets.
Total Cost of Quality
A measure that sums all costs associated with poor quality or product failure, including rework, scrap, warranty costs, and other costs incurred in preventing or resolving quality problems.
TotalCumulative Manufacture Cycle Time
The average time between the commencement of upstream processing and the completion of final packaging for shipment operations, as well as the release approval for shipment, should be calculated. WIP storage time should not be included in this calculation. The formula for calculating this time is as follows: [Average number of units in WIP] divided by [Average daily output in units], minus the WIP days of supply.
Total Inventory Days of Supply
Total gross value of inventory at standard cost before reserves for excess and obsolescence includes only inventory that is on the books and currently owned by the business entity. Future liabilities, such as consignments from suppliers, are not included in this calculation. The calculation is as follows: [5 Point Annual Average Gross Inventory] divided by [Cost of Goods Sold/365].
Total Landed Costs
Usually referred to as the total cost of a landed shipment, it includes the purchase price, freight, insurance, and other costs up to the port of destination. In some instances, it may also include the customs duties and other taxes levied on the shipment.
Total Make Cycle Time
The average total processing time between the commencement of upstream processing and the completion of all manufacturing process steps, up to but not including packaging and labeling operations (i.e., from the start of manufacturing to the final formulated product ready for primary packaging), should be calculated. Please do not include hold or test and release times in the calculation. The formula for calculation is as follows: [Average number of units in active manufacturing] divided by [Average daily output in units].
Total Package and Label Cycle Time
The average total processing time between the commencement of the primary packaging and labeling steps to completion of the final packaging steps for shipment is calculated as follows: [Average number of units in packaging and labeling work in progress] divided by [Average daily output in units].
Total Productive Maintenance (TPM)
Team-based maintenance process designed to maximize machine availability, performance, and product quality.
Total Product Revenue
The total value of sales made to external customers, plus the transfer price valuation of intra-company shipments, net of all discounts, coupons, allowances, and rebates, includes only the intra-company revenue for products transferring out of an entity. It also includes installation services if these services are sold bundled with end products. It recognizes leases to customers initiated during the same period as revenue shipments, with revenue credited at the average selling price. Note: Total Product Revenue excludes post-delivery revenues (maintenance and repair of equipment, system integration), royalties, sales of other services, spare parts revenue, and rental/lease revenues.
Total Quality Management (TQM)
A management approach in which managers constantly communicate with organizational stakeholders to emphasize the importance of continuous quality improvement.
Total Sourcing Lead Time (95% of Raw Material Dollar Value)
Cumulative lead time refers to the total average time required for various processes such as inside-plant planning, supplier lead time (whether external or internal), receiving, handling, etc., starting from the identification of demand at the factory until the materials are made available in the production facility. This lead time is necessary to source 95% of the dollar value (per unit) of raw materials from both internal and external suppliers.
Total Supply-Chain Management Cost (5 elements)
Total cost to manage order processing, acquire materials, manage inventory, and manage supply chain finance, planning, and IT costs, represented as a percentage of revenue. Accurate assignment of IT-related costs is challenging. It can be done using Activity-Based Costing methods or based on more traditional approaches. Allocation based on user counts, transaction counts, or departmental headcounts is a reasonable approach. The emphasis should be on capturing all costs, whether incurred in the entity completing the survey or incurred in a supporting organization on behalf of the entity. Reasonable estimates founded in data are accepted as a means to assess overall performance. All estimates reflect fully burdened actuals, inclusive of salary, benefits, space and facilities, and general and administrative allocations. Calculation: [Order Management Costs + Material Acquisition Costs + Inventory Carrying Costs + Supply Chain-Related Finance and Planning Costs + Total Supply Chain-Related IT Costs] / [Total Product Revenue] (Please see individual component categories for component detail and calculations)
Total Supply Chain Response Time
The time it takes to rebalance the entire supply chain after determining a change in market demand is also a measure of a supply chain's ability to change rapidly in response to marketplace changes. The calculation is as follows: [Forecast Cycle Time] + [Re-plan Cycle Time] + [Intra-Manufacturing Re-plan Cycle Time] + [Cumulative Source/Make Cycle Time] + [Order Fulfillment Lead Time].
Total Test and Release Cycle Time
The average total test and release time for all tests, documentation reviews, and batch approval processes performed from the start of manufacturing to the release of the final packaged product for shipment is calculated as follows: [Average number of units in test and release] divided by [Average daily output in units].
Toto authority
A private motor carrier receives operating authority as a common carrier to haul freight for the public over the private carrier's backhaul. This type of authority was granted to the Toto Company in 1978.
Touches
The number of times a labor action is taken during a manufacturing or assembly process. Touches are typically used to measure efficiency or for costing and pricing purposes.
Touch Labor
The labor that adds value to the product includes assemblers, welders, etc. This does not include indirect resources such as material handlers (who move and stage the product) or mechanical and electrical technicians responsible for maintaining equipment.
TPM
Total Productive Maintenance
TQM
Total Quality Management
Traceability
1) The ability to track the location of a shipment as it moves through the shipping process to the customer. 2) The ability to determine the source of individual lot-numbered or serial-numbered products.
Tracing
1) Determining where a shipment is during the course of a move. 2) The practice of relating resources, activities, and cost objects using the drivers underlying their cost causal relationships. The purpose of tracing is to observe and understand how costs are arising in the normal course of business operations. Synonym Assignment.
TrackingandTracing
Monitoring and recording shipment movements from origin to destination.
Tracking Signal
A statistic that reveals instances where parameter estimates in a forecasting model are not optimal. For example, a tracking signal might be based on a graph of the ratio of the cumulative sum of the differences between the actual and forecast values to the mean absolute deviation. If the tracking signal exceeds a certain value, the series can then be flagged for examination. This concept has been used successfully in quality control. It seems sensible also for forecasting, although little research supports its use. An alternative is to use successive re-estimation.
Tractor
The tractor is the driver's compartment and engine of the truck. It has two or three axles.
Trading Partner
Companies that do business with each other via EDI (e.g., send and receive business documents, such as purchase orders) are
Trading Partner Agreement
The written contract that spells out the agreed-upon terms between EDI trading partners.
Traffic
A department is responsible for the process of determining timely and economic delivery methods, arranging internal or external transportation, and tracking shipment status and logistics network issues.
Traffic Management
The management and control of transportation modes, carriers, and services.
Trailer
The part of the truck that carries the goods.
Trailer Drops
When a driver drops off a full truck at a warehouse and picks up an empty one
Trailer on a Flatcar (TOFC)
Transport of truck trailers with their loads on specially designed rail cars. Synonym: Piggyback.