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
Articles or substances capable of posing significant health, safety, or environmental risks, and that ordinarily require special attention, including packaging and labeling, when stored or transported, are referred to as hazardous goods or hazardous materials (HazMat).
A performance measurement tool used to capture a summary of the key performance indicators (KPIs)/metrics of a company. Metrics dashboards/scorecards should be easy to read and feature 'red, yellow, green' indicators to flag when metric targets are not being met. Ideally, a dashboard/scorecard should be cross-functional in nature and include both financial and non-financial measures. In addition, scorecards should be reviewed regularly—at least on a monthly basis—and weekly for key functions—such as manufacturing and distribution—where activities are critical to the success of a company. The dashboard/scorecards philosophy can also be applied to external supply chain partners (such as suppliers) to ensure that supplier's objectives and practices align. Synonym: Scorecard.
Data is stored in a computer-readable form, typically indexed or sorted in a logical order, allowing users to easily find the specific data item they need.
The process of detecting and cleaning inaccurate, incomplete, incorrect, and irrelevant records in a dataset involves deleting, modifying, or replacing the records as needed.
The electronic transmission of data, usually in computer-readable form, using a variety of transmission vehicles and paths.
The parameters are placed on a column within a database or data entry form on a website. An example of a parameter would be the 8-character limitation for any text entered into a particular data field.
The process of integrating data residing in different sources and creating a unified view of the data for users.
Assurance that the data is 'whole' or complete, the data integrity perseveres during retrieval, storage, and transfer. In database management, it refers to the process of ensuring that the data accurately reflects the environment it is modeling or representing.
The secretariat provides clerical and administrative support to the ASC X12 Committee.
The process of extracting and analyzing data, typically from a computer database, to gather knowledge about hidden patterns or unknown relationships in order to achieve specific business objectives.
A repository of data within the Global Data Synchronization Network where trading partners can obtain, maintain, and exchange information on items and parties in a standard format through electronic means.
The person responsible for maintaining consistency and precision of data during exchanges between computer systems.
A storage architecture is designed to hold data extracted from transaction systems, operational data stores, and external sources. It is a repository of an organization's electronically stored data designed to facilitate reporting and analysis. The warehouse combines data in an aggregate, summary form suitable for enterprise-wide data analysis and reporting for predefined business needs.
An identification is applied to a product container or label, which provides the specific date of production of the contents. Sometimes it is an actual date, but frequently it is coded for internal purposes. Date codes are often used during product recalls.
A measure of the quantity of inventory on hand, in relation to the number of days for which usage will be covered. For example, if a component is consumed in sales or manufacturing at a rate of 100 per day, and there are 1,585 units available on hand, this represents 15.85 days' supply. The goal, in most cases, is to demonstrate efficiency by having a high turnover rate and therefore a low days' inventory. However, it should be realized that this ratio can be unfavorable if it is either too high or too low. A company must balance the cost of carrying inventory with its unit and acquisition costs, considering the potential for lost business and ultimately lost customers if shortages are pervasive.
A measure of the quantity of inventory on hand, in relation to the number of days for which usage will be covered. For example, if a component is consumed in sales or manufacturing at a rate of 100 per day, and there are 1,585 units available on hand, this represents 15.85 days' supply. The goal, in most cases, is to demonstrate efficiency by having a high turnover rate and therefore a low days' inventory. However, it should be realized that this ratio can be unfavorable if it is either too high or too low. A company must balance the cost of carrying inventory with its unit and acquisition costs, considering the potential for lost business and ultimately lost customers if shortages are pervasive.
DPO is an estimate of the length of time the company takes to pay its vendors after receiving inventory. If the firm receives favorable terms from suppliers, it has the net effect of providing the firm with free financing. If terms are reduced and the company is forced to pay at the time of receipt of goods, it reduces financing by the trade and increases the firm's working capital requirements. It is calculated as Days Payable Outstanding = 365 / Payables Turnover (Payables Turnover = Purchases / Payables).
DSO, also known as the Collection Period (period average), is a financial indicator that shows both the age, in terms of days, of a company's accounts receivable and the average time it takes to turn the receivables into cash. It is compared to company and industry averages, as well as company selling terms (e.g., Net 30), for determination of acceptability by the company. DSO is calculated as follows: DSO = (Total Receivables / Total Credit Sales in the Period Analyzed) x Number of Days in the Period Analyzed. Note that only credit sales should be used; cash sales are excluded.
A manufacturing execution methodology, named for its three components, is the drum, the work center or machine, or operation that limits the ability of the entire system to produce more. The rest of the plant follows the beat of the drum. They make sure the drum has work and that anything the drum has processed does not get wasted.
The warehouse facility holds inventory from manufacturing, pending distribution to the appropriate stores.
Also known as 'Direct to Store', this practice occurs when vendors ship goods directly to the retail store instead of to the retailer's distribution center (DC).
The return of an empty transportation container back to a transportation facility is commonly referred to as the empty backhaul. It is a commonly used description for backhauling.
A term used to describe products that are not functional when delivered. Synonym: Defective.
The total lifting capacity of a ship is expressed in tons of 2,240 lbs. It is the difference between the displacement light (without cargo, passengers, fuel, etc.) and the displacement when loaded.
A situation in which management decision-making authority is given to managers at many levels in the organizational hierarchy.
Software that speeds up access and simplifies data analysis, queries, etc., within a database management system.
To comply with U.S. regulations, exporters are required to provide special notices to inland and ocean transport companies when goods are hazardous.
The value of the goods, declared by the shipper on a bill of lading, is used for the purpose of determining a freight rate or the limit of the carrier's liability. It is also used by customs as the basis for calculation of duties, etc.
A forecasting practice which separates time series data is separated into two or more component series, each of which is forecasted individually and then re-composited to produce a final forecast. This method is useful when the individual components are subject to varying trends.
A third-party service that dedicates equipment (vehicles) and drivers to a single customer for exclusive use on a contractual basis.
A combination of flaw detection—so they may be removed from the product or process—and analysis of defects and errors received—to prevent future defects in the product or process.
Those items that have been returned have been delivered damaged and have a freight claim outstanding or have been damaged in some way during warehouse handling.
Funding for PBL programs.
1) ASCII characters are used to separate data elements within a data stream. 2) EDI has two levels of separators and a terminator that are integral parts of a transferred data stream. Delimiters are specified in the interchange header. From the highest to the lowest level, the separators and terminator are segment terminator, data element separator, and component element separator (used only in EDIFACT).
The time agreed upon between two enterprises for goods or transportation equipment to arrive at a selected location is typically used to help plan warehouse and receiving/inspection operations and to manage the backup of carriers at loading docks.
Supplier/manufacturer arrangement in which suppliers are responsible for the transport of the goods they have produced, which are being sent to a manufacturer. This responsibility includes tasks such as ensuring products get through customs.
The percentage of orders that are fulfilled on or before the internal commit date is used as a measure of the effectiveness of internal scheduling systems. Delivery measurements are based on the date a complete order is shipped or the ship-to date of a complete order. A complete order is one that has all items delivered in the requested quantities. An order must be complete to be considered fulfilled. Multiple line items on a single order with different planned delivery dates constitute multiple orders, and multiple planned delivery dates on a single line item also constitute multiple orders. The calculation is as follows: [Total number of orders delivered in full and on time to the scheduled commit date] / [Total number of orders delivered].
The percentage of orders that are fulfilled on or before the customer's requested date is used as a measure of responsiveness to market demand. Delivery measurements are based on the date a complete order is shipped or the ship-to date of a complete order. A complete order has all items on the order delivered in the quantities requested. An order must be complete to be considered fulfilled. Multiple line items on a single order with different planned delivery dates constitute multiple orders, and multiple planned delivery dates on a single line item also constitute multiple orders. Calculation: [Total number of orders delivered in full and on time to the customer's requested date] / [Total number of orders delivered].
A systematic forecasting method relies on a panel of independent experts providing answers to questionnaires in two or more rounds in an effort to gain a consensus opinion.
A professional association of transportation and traffic practitioners.
What customers or users actually want is typically associated with the consumption of products or services, as opposed to a prediction or forecast.
When inventory is 'pulled' through production, it is moved to a work center only when needed to satisfy a customer requirement.
Another name for the supply chain, but emphasizing customer or end-user demand pulling materials and products through the chain.
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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168 Terms
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168 terms
Dangerous Goods
Articles or substances capable of posing significant health, safety, or environmental risks, and that ordinarily require special attention, including packaging and labeling, when stored or transported, are referred to as hazardous goods or hazardous materials (HazMat).
Dashboard
A performance measurement tool used to capture a summary of the key performance indicators (KPIs)/metrics of a company. Metrics dashboards/scorecards should be easy to read and feature 'red, yellow, green' indicators to flag when metric targets are not being met. Ideally, a dashboard/scorecard should be cross-functional in nature and include both financial and non-financial measures. In addition, scorecards should be reviewed regularly—at least on a monthly basis—and weekly for key functions—such as manufacturing and distribution—where activities are critical to the success of a company. The dashboard/scorecards philosophy can also be applied to external supply chain partners (such as suppliers) to ensure that supplier's objectives and practices align. Synonym: Scorecard.
Database
Data is stored in a computer-readable form, typically indexed or sorted in a logical order, allowing users to easily find the specific data item they need.
Data Cleansing
The process of detecting and cleaning inaccurate, incomplete, incorrect, and irrelevant records in a dataset involves deleting, modifying, or replacing the records as needed.
Data Communications
The electronic transmission of data, usually in computer-readable form, using a variety of transmission vehicles and paths.
Data Field Formatting
The parameters are placed on a column within a database or data entry form on a website. An example of a parameter would be the 8-character limitation for any text entered into a particular data field.
Data Integration
The process of integrating data residing in different sources and creating a unified view of the data for users.
Data Integrity
Assurance that the data is 'whole' or complete, the data integrity perseveres during retrieval, storage, and transfer. In database management, it refers to the process of ensuring that the data accurately reflects the environment it is modeling or representing.
Data Interchange Standards Association (DISA)
The secretariat provides clerical and administrative support to the ASC X12 Committee.
Data Mining
The process of extracting and analyzing data, typically from a computer database, to gather knowledge about hidden patterns or unknown relationships in order to achieve specific business objectives.
Data Pool
A repository of data within the Global Data Synchronization Network where trading partners can obtain, maintain, and exchange information on items and parties in a standard format through electronic means.
Data Steward
The person responsible for maintaining consistency and precision of data during exchanges between computer systems.
Data Warehouse
A storage architecture is designed to hold data extracted from transaction systems, operational data stores, and external sources. It is a repository of an organization's electronically stored data designed to facilitate reporting and analysis. The warehouse combines data in an aggregate, summary form suitable for enterprise-wide data analysis and reporting for predefined business needs.
Date Code
An identification is applied to a product container or label, which provides the specific date of production of the contents. Sometimes it is an actual date, but frequently it is coded for internal purposes. Date codes are often used during product recalls.
Days' Inventory
A measure of the quantity of inventory on hand, in relation to the number of days for which usage will be covered. For example, if a component is consumed in sales or manufacturing at a rate of 100 per day, and there are 1,585 units available on hand, this represents 15.85 days' supply. The goal, in most cases, is to demonstrate efficiency by having a high turnover rate and therefore a low days' inventory. However, it should be realized that this ratio can be unfavorable if it is either too high or too low. A company must balance the cost of carrying inventory with its unit and acquisition costs, considering the potential for lost business and ultimately lost customers if shortages are pervasive.
Days of Supply
A measure of the quantity of inventory on hand, in relation to the number of days for which usage will be covered. For example, if a component is consumed in sales or manufacturing at a rate of 100 per day, and there are 1,585 units available on hand, this represents 15.85 days' supply. The goal, in most cases, is to demonstrate efficiency by having a high turnover rate and therefore a low days' inventory. However, it should be realized that this ratio can be unfavorable if it is either too high or too low. A company must balance the cost of carrying inventory with its unit and acquisition costs, considering the potential for lost business and ultimately lost customers if shortages are pervasive.
Days Payable Outstanding (DPO)
DPO is an estimate of the length of time the company takes to pay its vendors after receiving inventory. If the firm receives favorable terms from suppliers, it has the net effect of providing the firm with free financing. If terms are reduced and the company is forced to pay at the time of receipt of goods, it reduces financing by the trade and increases the firm's working capital requirements. It is calculated as Days Payable Outstanding = 365 / Payables Turnover (Payables Turnover = Purchases / Payables).
Days Sales Outstanding (DSO)
DSO, also known as the Collection Period (period average), is a financial indicator that shows both the age, in terms of days, of a company's accounts receivable and the average time it takes to turn the receivables into cash. It is compared to company and industry averages, as well as company selling terms (e.g., Net 30), for determination of acceptability by the company. DSO is calculated as follows: DSO = (Total Receivables / Total Credit Sales in the Period Analyzed) x Number of Days in the Period Analyzed. Note that only credit sales should be used; cash sales are excluded.
DBR
A manufacturing execution methodology, named for its three components, is the drum, the work center or machine, or operation that limits the ability of the entire system to produce more. The rest of the plant follows the beat of the drum. They make sure the drum has work and that anything the drum has processed does not get wasted.
DC
The warehouse facility holds inventory from manufacturing, pending distribution to the appropriate stores.
DC Bypass
Also known as 'Direct to Store', this practice occurs when vendors ship goods directly to the retail store instead of to the retailer's distribution center (DC).
Deadhead
The return of an empty transportation container back to a transportation facility is commonly referred to as the empty backhaul. It is a commonly used description for backhauling.
Dead on Arrival (DOA)
A term used to describe products that are not functional when delivered. Synonym: Defective.
Deadweight
The total lifting capacity of a ship is expressed in tons of 2,240 lbs. It is the difference between the displacement light (without cargo, passengers, fuel, etc.) and the displacement when loaded.
Decentralized Authority
A situation in which management decision-making authority is given to managers at many levels in the organizational hierarchy.
Decision Support System (DSS)
Software that speeds up access and simplifies data analysis, queries, etc., within a database management system.
Declaration of Dangerous Goods
To comply with U.S. regulations, exporters are required to provide special notices to inland and ocean transport companies when goods are hazardous.
Declared Value
The value of the goods, declared by the shipper on a bill of lading, is used for the purpose of determining a freight rate or the limit of the carrier's liability. It is also used by customs as the basis for calculation of duties, etc.
Decomposition
A forecasting practice which separates time series data is separated into two or more component series, each of which is forecasted individually and then re-composited to produce a final forecast. This method is useful when the individual components are subject to varying trends.
Dedicated Contract Carriage
A third-party service that dedicates equipment (vehicles) and drivers to a single customer for exclusive use on a contractual basis.
Defect Analysis
A combination of flaw detection—so they may be removed from the product or process—and analysis of defects and errors received—to prevent future defects in the product or process.
Defective Goods Inventory (DGI)
Those items that have been returned have been delivered damaged and have a freight claim outstanding or have been damaged in some way during warehouse handling.
Defense Acquisition Executive: DAE
Defense Automatic Addressing System: DAAS
Defense Federal Acquisition Regulation Supplement: DFARS
Defense Finance and Accounting Service: DFAS
Defense Logistics Agency(DLA): A possible source of supply
Defense Working Capital Fund(DWCF)
Funding for PBL programs.
Delimiters
1) ASCII characters are used to separate data elements within a data stream. 2) EDI has two levels of separators and a terminator that are integral parts of a transferred data stream. Delimiters are specified in the interchange header. From the highest to the lowest level, the separators and terminator are segment terminator, data element separator, and component element separator (used only in EDIFACT).
Delivery Appointment
The time agreed upon between two enterprises for goods or transportation equipment to arrive at a selected location is typically used to help plan warehouse and receiving/inspection operations and to manage the backup of carriers at loading docks.
Delivery-Duty-Paid
Supplier/manufacturer arrangement in which suppliers are responsible for the transport of the goods they have produced, which are being sent to a manufacturer. This responsibility includes tasks such as ensuring products get through customs.
Delivery Performance to Commit Date
The percentage of orders that are fulfilled on or before the internal commit date is used as a measure of the effectiveness of internal scheduling systems. Delivery measurements are based on the date a complete order is shipped or the ship-to date of a complete order. A complete order is one that has all items delivered in the requested quantities. An order must be complete to be considered fulfilled. Multiple line items on a single order with different planned delivery dates constitute multiple orders, and multiple planned delivery dates on a single line item also constitute multiple orders. The calculation is as follows: [Total number of orders delivered in full and on time to the scheduled commit date] / [Total number of orders delivered].
Delivery Performance to Request Date
The percentage of orders that are fulfilled on or before the customer's requested date is used as a measure of responsiveness to market demand. Delivery measurements are based on the date a complete order is shipped or the ship-to date of a complete order. A complete order has all items on the order delivered in the quantities requested. An order must be complete to be considered fulfilled. Multiple line items on a single order with different planned delivery dates constitute multiple orders, and multiple planned delivery dates on a single line item also constitute multiple orders. Calculation: [Total number of orders delivered in full and on time to the customer's requested date] / [Total number of orders delivered].
Delphi Method
A systematic forecasting method relies on a panel of independent experts providing answers to questionnaires in two or more rounds in an effort to gain a consensus opinion.
Delta Nu Alpha
A professional association of transportation and traffic practitioners.
Demand
What customers or users actually want is typically associated with the consumption of products or services, as opposed to a prediction or forecast.
Demand Based Production
When inventory is 'pulled' through production, it is moved to a work center only when needed to satisfy a customer requirement.
Demand Chain
Another name for the supply chain, but emphasizing customer or end-user demand pulling materials and products through the chain.