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| C & F
|
|
Please refer Cost and Freight
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| Cab Extenders
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Also called gap seals, which help to close the gap between the tractor and the trailer
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| Cabotage
|
|
A federal law that requires coastal and inter-coastal traffic to be carried in U.S.-built and registered ships.
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| CAD
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|
Please refer Cash Against Documents.
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| CADEX
|
|
Please refer Customs Automated Data Exchange System
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| CAE
|
|
Please refer Computer-Aided Engineering.
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| CAF
|
|
Please refer Currency Adjustment Factor
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| Caged
|
|
Referring to the practice of placing high-value or sensitive products in a fenced off area within a warehouse.
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| Calculation
|
|
Cost of Capital x Average Net Value of Inventory
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| Calculation
|
|
Total Product Revenue-External Direct Material/[FTEs]
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| Calculation
|
|
To convert from working days to calendar days if work week = 4 days, multiply by 1.75; = 5 days, multiply by 1.4; = 6 days, multiply by 1.17
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| Calculation
|
|
Total Inventory Days of Supply + Days of Sales Outstanding - Average Payment Period for Material in Days.
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| Calendar Days
|
|
The conversion of working days to calendar days is based on the number of regularly scheduled workdays per week in your manufacturing calendar.
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| Call Center
|
|
A facility housing personnel who respond to customer phone queries. These personnel may provide customer service or technical support. Call center services may be in house or outsourced. Synonym Customer Interaction Center.
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| Can-Order Point
|
|
An ordering system used when multiple items are ordered from one vendor. The can-order point is a point higher than the original order point. When any one of the items triggers an order by reaching the must-order point, all items below their can-order point are also ordered. The can-order point is set by considering is set by considering the additional holding cost that would be incurred if the item were ordered early.
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| Cantilever Rack
|
|
Racking system in which the shelving supports are connected to vertical supports at the rear of the rack. There are no vertical supports on the face of the rack allowing for storage of very long pieces of material such as piping and lumber. Also see racking pics page.
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| Capacity
|
|
The physical facilities, personnel, and processes available to meet the product or service needs of customers. Capacity generally refers to the maximum output or producing ability of a machine, a person, a process, a factory, a product, or a service.
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| Capacity Management
|
|
The concept that capacity should be understood, defined, and measured for each level in the organization to include market segments, products, processes, activities, and resources. In each of these applications, capacity is defined in a hierarchy of idle, non-productive, and productive views.
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| Capacity Planning
|
|
Assuring that needed resources (e.g., manufacturing capacity, distribution center capacity, transportation vehicles, etc.) will be available at the right time and place to meet logistics and supply chain needs.
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| Capacity requirements planning
|
|
Process for determining amount of machine and labor resources required to meet production.
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| CAPEX
|
|
A term used to describe the monetary requirements (CAPital EXpenditure) of an initial investment in new machines or equipment.
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| Capital
|
|
The resources, or money, available for investing in assets that produce output.
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| CAPSTAN
|
|
Computer-Aided Planned Stowage and Networking system.
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|
| CARAT
|
|
Cargo Agents Reservation Air Waybill Issuance and Tracking.
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| Cargo
|
|
Merchandise carried by a means of transportation.
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| Carmack Amendment
|
|
An Interstate Commerce Act amendment that delineates the liability of common carriers and the bill of lading provisions.
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| Carnet
|
|
A Customs document permitting the holder to carry or send special categories of goods temporarily into certain foreign countries without paying duties or posting bonds.
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| Carousel
|
|
A rotating system of layers of bins and/or drawers that can store many small items using relatively little floor space.
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| Carousel
|
|
Type of automated material handling equipment generally used for high-volume small-parts order-picking operations. Horizontal carousels are a version of the same equipment used by dry cleaners to store and retrieve clothing. They have racks hanging from them that can be configured to accommodate various size storage bins. Vertical carousels consist of a series of horizontal trays on a vertical carousel. Vertical carousels are frequently used in laboratories and specialty manufacturing operations. More info on carousels on automated equipment pics page. See article on order picking.
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| Carriage
|
|
Please refer Transportation.
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|
|
| Carrier
|
|
A firm that transports goods or people via land, sea, or air.
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|
| Carrier Assets
|
|
Items that a carrier owns (technically or outright) to facilitate the services they provide.
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|
| Carrier Certificate and Release Order
|
|
Used to advise customs of the shipment's details. By means of this document, the carrier certifies that the firm or individual named in the certificate is the owner or consignee of the cargo.
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|
| Carrier Liability
|
|
A common carrier is liable for all shipment loss, damage, and delay with the exception of that caused by act of God, act of a public enemy, act of a public authority, act of the shipper, and the goods' inherent nature.
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| Carrying cost
|
|
Also called holding cost, carrying cost is the cost associated with having inventory on hand. It is primarily made up of the costs associated with the inventory investment and storage cost. For the purpose of eoq calculations, if the cost does not change based upon the quantity of inventory on hand it should not be included in carrying cost. Carrying cost is represented as the annual cost per average on-hand inventory unit. See article on eoq for more detailed info on carrying cost.
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|
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| Cartage
|
|
There are two definitions for this term
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| Cartel
|
|
A group of companies that agree to cooperate rather than compete, in producing a product or service. Thus limiting or regulating competition.
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| Carton clamp
|
|
Lift truck attachment that operates like a paper roll clamp except the clamping surface is flat rather than circular.
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| Carton Flow Rack
|
|
A storage rack consisting of multiple lines of gravity flow conveyors.
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|
|
| Cash Against Documents (CAD)
|
|
A method of payment for goods in which documents transferring title are given to the buyer upon payment of cash to an intermediary acting for the seller.
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|
|
| Cash Conversion Cycle
|
|
1) In retailing, the length of time between the sale of products and the cash payments for a company's resources. 2) In manufacturing, the length of time from the purchase of raw materials to the collection of accounts receivable from customers for the sale of products or services.
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|
|
| Cash In Advance (CIA)
|
|
A method of payment for goods whereby the buyer pays the seller in advance of shipment of goods.
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|
| Cash with Order (CWO)
|
|
A method of payment for goods where cash is paid at the time of order, and the transaction becomes binding on both buyer and seller.
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|
|
| Cash-to-Cash Cycle Time
|
|
The time it takes for cash to flow back into a company after it has been spent for raw materials.
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|
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| Casting
|
|
Generally describes an unfinished item made of metal that is produced through pouring molten metal into a mold. A casting is later machined into a finished or semi-finished item. Also describes the process used to produce castings.
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|
|
| Catalog Channel
|
|
A call center or order processing facility that receives orders directly from the customer based on defined catalog offerings, and ships directly to the customer.
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|
|
| Catch weight
|
|
Used primarily in the food industry for products such as seafood, meats, and cheeses; catch weights refer to the actual weight of variable-weight items that use weight as the sales unit of measure. Catch weights are generally recorded during the order picking or shipping process. Systems using catch weights must be able to correctly process sales order line items based on the catch weights being within specific tolerances of the "order quantity".
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| Category Management
|
|
The management of product categories as strategic business units. This practice empowers a category manager with full responsibility for the assortment decisions, inventory levels, shelf-space allocation, promotions, and buying. With this authority and responsibility, the category manager is able to more accurately judge the consumer buying patterns, product sales, and market trends of that category.
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|
|
| Cause-and-Effect Diagram
|
|
In quality management, a structured process used to organize ideas into logical groupings. Used in brainstorming and problem-solving exercises. Also known as Ishikawa or fish bone diagram.
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|
|
| CBT
|
|
Please refer Computer-Based Training
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|
|
| CCD
|
|
Please refer Charged Coupled Device
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|
|
| CELL
|
|
A manufacturing or service unit consisting of a number of workstations, and the materials transport mechanisms and storage buffers that interconnect them.
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|
|
| Center-of-Gravity Approach
|
|
A supply chain planning methodology for locating distribution centers at approximately the location representing the minimum transportation costs between the plants, the distribution centers, and the markets.
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|
|
| Central Dispatching
|
|
The organization of the dispatching function into one central location. This structure often involves the use of data collection devices for communication between the centralized dispatching function which usually reports to the production control department and the shop manufacturing departments.
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|
|
| Centralized Authority
|
|
The restriction of authority to make decisions to few managers.
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|
|
| Centralized Inventory Control
|
|
Inventory decision-making (for all SKUs) exercised from one office or department for an entire company.
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|
|
| Certificate of Compliance
|
|
A supplier's certification that the supplies or services in question meet specified requirements.
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|
|
| Certificate of Insurance
|
|
A negotiable document indicating that insurance has been secured under an open policy to cover loss or damage to a shipment while in transit.
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|
|
| Certificate of Origin
|
|
A document containing an affidavit to prove the origin of imported goods. Used for customs and foreign exchange purposes.
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|
|
| Certificate of Public Convenience and Necessity
|
|
The grant of operating authority that common carriers receive. A carrier must prove that a public need exists and that the carrier is fit, willing, and able to provide the needed service. The certificate may specify the commodities the carrier may haul, and the routes it may use.
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|
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| Certificated Carrier
|
|
A for-hire air carrier that is subject to economic regulation and requires an operating certification to provide service.
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|
|
| Certified Supplier
|
|
A status awarded to a supplier who consistently meets predetermined quality, cost, delivery, financial, and count objectives. Incoming inspection may not be required.
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|
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| CFS
|
|
Please refer Container Freight Station.
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|
|
| CFS/CFS
|
|
Please refer Container Freight Station to Container Freight Station.
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|
|
| Chain of Customers
|
|
The sequence of customers who, in turn, consume the output of each other, forming a chain. For example, individuals are customers of a department store which in turn is the customer of a producer who is the customer of a material supplier.
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|
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| Change Management
|
|
The business process that coordinates and monitors all changes to the business processes and applications operated by the business, as well as to their internal equipment, resources, operating systems, and procedures. The change management discipline is carried out in a way that minimizes the risk of problems that will affect the operating environment and service delivery to the users.
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| Change Order
|
|
A formal notification that a purchase order or shop order must be modified in some way. This change can result from a revised quantity, date, or specification by the customer; an engineering change; a change in inventory requirement data; etc.
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| Changeover
|
|
Process of making necessary adjustments to change or switchover the type of products produced on a manufacturing line. Changeovers usually lead to downtime and for the most part, companies try to minimize changeover time to help reduce costs.
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|
|
| Channel
|
|
1. A method whereby a business dispenses its product, such as a retail or distribution channel, call center, or a web-based electronic storefront. 2. A push technology that allows users to subscribe to a web site to browse offline, automatically display updated pages on their screen savers, and download or receive notifications when pages in the web site are modified. Channels are available only in browsers that support channel definitions such as Microsoft Internet Explorer version 4.0.
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|
|
| Channel Conflict
|
|
This occurs when various sales channels within a company's supply chain compete with each other for the same business. An example is where a retail channel is in competition with a web-based channel set up by the company.
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|
|
| Channel Partners
|
|
Members of a supply chain (i.e., suppliers, manufacturers, distributors, retailers, etc.) who work in conjunction with one another to manufacture, distribute, and sell a specific product.
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|
|
| Channels of Distribution
|
|
Any series of firms or individuals that participates in the flow of goods and services from the raw material supplier and producer to the final user or consumer.
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|
|
| Chargeable Weight
|
|
The shipment weight used in determining freight charges. The chargeable weight may be the dimensional weight or, for container shipments, the gross weight of the shipment less the tare weight of the container.
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|
|
| Chargeback
|
|
Chargebacks are becoming more common these days as customers become more specific with their agreements with suppliers. A chargeback is basically a financial penalty placed against a supplier by a customer when a shipment to the customer does not meet the agreed upon terms and conditions. Examples of where suppliers may be charged back would include late shipments, lack of proper packaging and labeling (compliance labels), incorrect shipping terms (shipping collect instead of prepaid or not using the correct carrier or account).
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|
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| Charged coupled device
|
|
Used to describe a type of barcode scanner that acts like a small digital camera taking a digital image of the barcode as opposed to the standard barcode scanner that uses a laser. Ccd scanners are a low cost option for scanning barcodes at a short distance (usually within a few inches).
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|
|
| Charging Area
|
|
A warehouse area where a company maintains battery chargers and extra batteries to support a fleet of electrically powered materials handling equipment. The company must maintain this area in accordance with government safety regulations.
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|
|
| Chassis
|
|
A specialized framework that carries a rail or marine container
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|
|
| Chock
|
|
A wedge, usually made of hard rubber or steel, that is firmly placed under the wheel of a trailer, truck, or boxcar to stop it from rolling.
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|
|
| CI
|
|
Please refer Continuous Improvement.
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|
|
| CI
|
|
Please refer Continuous Improvement.
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|
|
| CIA
|
|
Please refer Cash In Advance
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|
|
| CIF
|
|
Please refer Cost, Insurance, and Freight
|
|
|
| CIF
|
|
Please refer Cost, Insurance, Freight
|
|
|
| City Driver
|
|
A motor carrier driver who drives a local route as opposed to a long-distance, intercity route.
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|
|
| Civil Aeronautics Board
|
|
A federal regulatory agency that implemented economic regulatory controls over air carriers.
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|
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| CL
|
|
Carload rail service requiring shipper to meet minimum weight.
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|
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| Claim
|
|
A charge made against a carrier for loss, damage, delay, or overcharge.
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|
|
| Class 1 Railroad
|
|
A line haul freight railroad of US ownership with operating revenue in excess of 272.0 million. There are seven (7) Class 1 Railroads in the United States. Two Mexican and two Canadian railroads would also qualify, if they were US companies.
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|
|
| Class I Carrier
|
|
A classification of regulated carriers based upon annual operating revenues -- motor carriers of property; 5 million; railroads; 50 million; motor carriers of passengers; 3 million.
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|
|
| Class II Carrier
|
|
A classification of regulated carriers based upon annual operating revenues -- motor carriers of property 1-5 million; railroads 10-50 million; motor carriers of passengers 3 million.
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|
|
| Class III Carrier
|
|
A classification of regulated carriers based upon annual operating revenues -- motor carriers of property 1 million; railroads 10 million.
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|
|
| Class Rates
|
|
A grouping of goods or commodities under one general heading. All the items in the group make up a class. The freight rates that apply to all items in the class are called "class rates."
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|
|
| Classification
|
|
An alphabetical listing of commodities, the class or rating into which the commodity is placed, and the minimum weight necessary for the rate discount; used in the class rate structure.
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|
|
| Classification yard
|
|
A railroad terminal area where railcars are grouped together to form train units.
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|
|
| Clear height
|
|
Distance measured from the floor to the bottom of the lowest hanging overhead obstruction. Sometimes realtors will use the distance to the bottom of the roof trusses to calculate clear height even though portions of the building may have lower clear heights due to hvac units or other equipment suspended from the roof.
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|
|
| Clearance
|
|
A document stating that a shipment is free to be imported into the country after all legal requirements have been met.
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|
|
| Clearinghouse
|
|
A conventional or limited-purpose entity generally restricted to providing specialized services, such as clearing funds or settling accounts.
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|
|
| CLM
|
|
Council of Logistics Management, now known as The Council of Supply Chain Management Professionals.
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|
|
| Closed Loop MRP
|
|
A system build around material requirements planning that includes the additional planning processes of production planning (sales and operations planning), master production scheduling, and capacity requirements planning. Once this planning phase is complete and the plans have been accepted as realistic and attainable, the execution processes come into play. These processes include the manufacturing control process of input-output (capacity) measurement, detailed scheduling and dispatching, as well as anticipated delay reports from both the plant and suppliers, supplier scheduling, and so on. The term "closed loop implies not only that each of these processes is included in the overall system, but also that feedback is provided by the execution processes so that the planning can be kept valid at all times..
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|
|
| CMI
|
|
Please refer Co-Managed Inventory
|
|
|
| CO
|
|
Carbon monoxide
|
|
|
| CO2
|
|
Carbon dioxide
|
|
|
| Coastal Carriers
|
|
Water carriers that provide service along coasts serving ports on the Atlantic or Pacific Oceans or on the Gulf of Mexico.
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|
|
| Code
|
|
A numeric, or alphanumeric representation of text for exchanging commonly-used information. For example commodity codes, carrier codes.
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|
|
| Co-Destiny
|
|
The evolution of a supply chain from intra-organizational management to inter-organizational management.
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|
|
| Codifying
|
|
The process of detailing a new standard.
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|
|
| COFC
|
|
Please refer Container on Flat Car
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|
|
| COGS
|
|
Cost of Goods Sold (see separate listing)
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|
|
| COGS
|
|
Please refer Cost-of-Goods Sold.
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|
|
| Collect Freight
|
|
Freight payable to the carrier at the port of discharge or ultimate destination. The consignee does not pay the freight charge if the cargo does not arrive at the destination.
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|
|
| Collective Paper
|
|
All documents (commercial invoices, bills of lading, etc.) submitted to a buyer for the purpose of receiving payment for a shipment.
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|
|
| Co-Managed Inventory (CMI)
|
|
A form of continuous replenishment in which the manufacturer is responsible for replenishment of standard merchandise, while the retailer manages the replenishment of promotional merchandise.
|
|
|
| Combi Aircraft
|
|
An aircraft specially designed to carry unitized cargo loads on the upper deck of the craft, forward of the passenger area.
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|
|
| Combined Lead Time
|
|
Please refer Cumulative Lead Time
|
|
|
| Commercial Invoice
|
|
A document created by the seller. It is an official document which is used to indicate, among other things, the name and address of the buyer and seller, the product(s) being shipped, and their value for customs, insurance, or other purposes.
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|
|
| Commercial zone
|
|
The area surrounding a city or town to which rate carriers quote for the city or town also apply; the ICC defines the area.
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|
|
| Committed Capability
|
|
The portion of the production capability that is currently in use, or is scheduled for use.
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|
|
| Committee of American Steamship Lines
|
|
An industry association representing subsidized U.S. flag steamship firms.
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|
|
| Commodities
|
|
Any article exchanged in trade, most commonly used to refer to raw materials and agricultural products.
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|
|
| Commodities Clause
|
|
A clause that prohibits railroads from hauling commodities that they produced, mined, owned, or had an interest in.
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|
|
| Commodity
|
|
In inventory management, the term Commodity has a couple of definitions. Standard products commonly available from various sources are often called "commodity items". Specialized or custom products not widely available or proprietary products only available from a small number of sources would not be considered commodity items. The term Commodity is also used to describe classifications of inventory. In this case, "commodity codes" are used to distinguish groups of inventory items to be used for reporting and analysis. Note that commodity classifications can be used to describe any inventory item and are not limited to items that fall under the previous definition of commodity items.
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|
|
| Commodity Buying
|
|
Grouping like parts or materials under one buyer's control for the procurement of all requirements to support production.
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|
|
| Commodity Code
|
|
A code describing a commodity or a group of commodities pertaining to goods classification. This code can be carrier tariff or regulating in nature.
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|
|
| Commodity Procurement Strategy
|
|
The purchasing plan for a family of items. This would include the plan to manage the supplier base and solve problems.
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|
|
| Commodity Rate
|
|
A rate for a specific commodity and its origin-destination.
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|
|
| Common Carrier
|
|
Transportation available to the public that does not provide special treatment to any one party and is regulated as to the rates charged, the liability assumed, and the service provided. A common carrier must obtain a certificate of public convenience and necessity from the Federal Trade Commission for interstate traffic. Antonym Private Carrier.
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|
|
| Common Carrier Duties
|
|
Common carriers must serve, deliver, charge reasonable rates, and not discriminate.
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|
|
| Common Cost
|
|
A cost that a company cannot directly assign to particular segments of the business; a cost that the company incurs for the business as a whole.
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|
|
| Commuter
|
|
An exempt for-hire air carrier that publishes a time schedule on specific routes; a special type of air taxi.
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|
|
| Company Culture
|
|
A system of values, beliefs, and behaviors inherent in a company. To optimize business performance, top management must define and create the necessary culture.
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|
|
| Comparative Advantage
|
|
A principle based on the assumption that an area will specialize in producing goods for which it has the greatest advantage or the least comparative disadvantage.
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|
|
| Competitive Advantage
|
|
Value created by a company for its customers that clearly distinguishes it from the competition, provides its customers a reason to remain loyal.
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|
|
| Competitive Benchmarking
|
|
Benchmarking a product or service against competitors.
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|
|
| Competitive Bid
|
|
A price/service offering by a supplier that must compete with offerings from other suppliers.
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|
|
| Complete and On-Time Delivery (COTD)
|
|
A measure of customer service. All items on any given order must be delivered on time for the order to be considered as complete and on time.
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|
|
| Complete Manufacture to Ship Time
|
|
Average time from when a unit is declared shippable by manufacturing until the unit actually ships to a customer.
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|
|
| Compliance
|
|
Meaning that products, services, processes, and/or documents comply with requirements.
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|
|
| Compliance labels
|
|
Standardized label formats used by trading partners. Compliance labels are used as shipping labels, container/pallet labels, carton labels, or piece labels, and usually contain bar codes. Many bar-code labeling software products now have the more common compliance label standards set up as templates.
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|
|
| Component
|
|
Material that will contribute to a finished product but is not the finished product itself. Examples include tires for an automobile, power supply for a personal computer, or a zipper for a ski parka.
|
|
|
| Computer-Aided Engineering (CAE)
|
|
The use of computers to model design options to stimulate their performance.
|
|
|
| Computer-Based Training
|
|
Training that is delivered via computer workstation and includes all training and testing materials.
|
|
|
| Conference
|
|
A group of vessel operators joined for the purpose of establishing freight rates.
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|
|
| Conference Carrier
|
|
An ocean carrier who is a member of an association known as a "conference." The purpose of the conference is to standardize shipping practices, eliminate freight rate competition, and provide regularly scheduled service between specific ports.
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|
|
| Configuration
|
|
The arrangement of components as specified to produce an assembly.
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|
|
| Configuration processing
|
|
Software functionality that allows a product to be defined by a selecting various pre-defined options, rather than having every possible combination of options pre-defined as specific skus. Placing an order for a computer and specifying hard drive, processor, memory, graphics card, sound card, etc. Would be an example of configuration processing.
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|
|
| Configure/Package to Order
|
|
A process where the trigger to begin to manufacture, final assembly, or packaging of a product is an actual customer order or release rather than a market forecast. In order to be considered a configure-to-order environment, less than 20% of the value added takes place after the receipt of the order or release, and virtually all necessary design and process documentation is available at time of order receipt.
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|
|
| Confirmation
|
|
With regards to EDI, a formal notice (by message or code) from a electronic mailbox system or EDI server indicating that a message sent to a trading partner has reached its intended mailbox or has been retrieved by the addressee.
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|
|
| Confirming Order
|
|
A purchase order issued to a supplier listing the goods or services and terms of an order placed orally or otherwise before the usual purchase document.
|
|
|
| Conformance
|
|
An affirmative indication or judgment that a product or service has met the requirements of a relevant specification, contract, or regulation.
|
|
|
| Conrail
|
|
The Consolidated Rail Corporation established by the Regional Reorganization Act of 1973 to operate the bankrupt Penn Central Railroad and other bankrupt railroads in the Northeast; the 4-R Act of 1976 provided funding.
|
|
|
| Consignee
|
|
The party to whom goods are shipped and delivered. The receiver of a freight shipment.
|
|
|
| Consignment
|
|
Also see Consignment Inventory.
|
|
|
| Consignment inventory
|
|
Inventory that is in the possession of the customer, but is still owned by the supplier. Consignment inventory is used as a marketing tool to make it easier for a customer to stock a specific supplier's inventory. Read my article on consignment inventory.
|
|
|
| Consignor
|
|
The party who originates a shipment of goods (shipper). The sender of a freight shipment, usually the seller.
|
|
|
| Consolidation
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Combining two or more shipments in order to realize lower transportation rates. Inbound consolidation from vendors is called make-bulk consolidation; outbound consolidation to customers is called break-bulk consolidation.
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| Consolidation Point
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The location where consolidation takes place.
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| Consolidator
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An enterprise that provides services to group shipments, orders, and/or goods to facilitate movement.
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| Consolidator's Bill of Lading
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A bill of lading issued by a consolidator as a receipt for merchandise that will be grouped with cargo obtained from other shippers. See also House Air Waybill.
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| Consortium
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A group of companies that works together to jointly produce a product, service, or project.
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| Constraint
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A bottleneck, obstacle, or planned control that limits throughput or the utilization of capacity.
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| Consul
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A government official residing in a foreign country, charged with representing the interests of his or her country and its nationals.
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| Consular Declaration
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A formal statement made to the consul of a country describing merchandise to be shipped to that consul's country. Approval must be obtained prior to shipment.
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| Consular Documents
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Special forms signed by the consul of a country to which cargo is destined.
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| Consular Invoice
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A document, required by some foreign countries, describing a shipment of goods and showing information such as the consignor, consignee, and value of the shipment. Certified by a consular official of the foreign country, it is used by the country's custom.
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| Consumer goods
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Products sold to non-business end users. Clothing, food, music cds, are examples of consumer goods.
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| Consumer Packaged Goods
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Describes inventory that is in such a form that is ready for sale to consumers (end-users).
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| Consumer-Centric Database
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Database with information about a retailer's individual consumers used primarily for marketing and promotion.
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| Consumption Entry
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An official Customs form used for declaration of reported goods, also showing the total duty due on such transaction.
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| Container
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Although a container can be anything designed to hold (contain) materials for storage or transport, the most common definition for Container in logistics refers to the specific types of containers used for intermodal transportation, often referred to as "Ocean Containers". Standard external dimensions for containers are width of 8', height of 8' 6" or 9' 6" (High Cube), and lengths of 20', 40', 45' (deduct 4" from width, 9" from height and 7" to 9" from length to determine inside demensions). More specs and info on containers at Seaboard Marine, Maersk Sealand, and a nice independent site The Intermodal Container FAQ put out by a commercial photographer.
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| Container Chassis
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A vehicle built for the purpose of transporting a container so that, when a container and chassis are assembled, the produced unit serves as a road trailer.
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| Container Depot
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The storage area for empty containers.
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| Container Freight Station (CFS)
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The location designated by carriers for receipt of cargo to be packed into containers/equipment by the carrier. At destination, CFS is the location designated by the carrier for unpacking of cargo from equipment/containers.
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| Container Freight Station Charge
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The charge assessed for services performed at the loading or discharge location.
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| Container Freight Station to Container Freight Station (CFS/CFS)
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A type of steamship-line service in which cargo is transported between container freight stations, where containers may be stuffed, stripped, or consolidated. Usually used for less-than-container load shipments.
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| Container I.D.
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An identifier assigned to a container by a carrier.
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| Container on Flat Car (COFC)
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A container that is transported on a rail flatcar. It can be shipped via tractor/trailer using a chassis as the wheel section.
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| Container Terminal
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An area designated to be used for the stowage of cargo in containers that may be accessed by truck, rail, or ocean transportation.
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| Container Vessel
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A vessel specifically designed for the carriage of containers.
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| Container Yard
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The location designated by the carrier for receiving, assembling, holding, storing, and delivering containers, and where containers may be picked up by shippers or redelivered by consignees.
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| Container Yard to Container Yard (CY/CY)
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A type of steamship-line service in which freight is transported from origin container yard to destination container yard.
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| Containerization
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A shipment method in which commodities are placed in containers, and after initial loading, the commodities, per se, are not rehandled in shipment until they are unloaded at the destination.
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| Containerization
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From the JIT movement in manufacturing, containerization refers to using standardized containers for the storage and transport of materials within a manufacturing facility as well as between vendors and manufacturers. Materials are ordered in multiples of the container quantity often using Kanban. The benefits of containerization include reduced product damage, reduced waste (by using reusable containers), less handling, and greater levels of inventory accuracy by simplifying counting processes.
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| Contingency Planning
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Preparing to deal with calamities (e.g., floods) and noncalamitous situations (e.g., strikes) before they occur.
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| Continuous Flow Distribution (CFD)
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The streamlined pull of products in response to customer requirements while minimizing the total costs of distribution.
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| Continuous Improvement (CI)
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A structured, measurement-driven process that continually reviews and improves performance.
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| Continuous Process Improvement (CPI)
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A never-ending effort to expose and eliminate root causes of problems; small-step improvement as opposed to big-step improvement.
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| Continuous Replenishment
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Continuous replenishment is the practice of partnering between distribution channel members that changes the traditional replenishment process from distributor-generated purchase orders based on economic order quantities to the replenishment of products based on actual and forecasted product demand.
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| Continuous Replenishment Planning (CRP)
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A program that triggers the manufacturing and movement of product through the supply chain when the identical product is purchased by an end user.
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| Continuous-Flow, Fixed-Path Equipment
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Materials handling devices that include conveyors and drag lines.
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| Contract
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An agreement between two or more competent persons or companies to perform or not to perform specific acts or services or to deliver merchandise. A contract may be oral or written. A purchase order, when accepted by a supplier, becomes a contract. Acceptance may be in writing or by performance, unless the purchase order requires acceptance in writing.
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| Contract Administration
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Managing all aspects of a contract to guarantee that the contractor fulfills his obligations.
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| Contract Carrier
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A for-hire carrier that does not serve the general public but serves shippers with whom the carrier has a continuing contract. The contract carrier must secure a permit to operate.
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| Contract of Affreightment
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A contract between a cargo shipper and carrier for the transport of multiple cargoes over a period of time. Contracts are individually negotiated and usually include cargo description, quantities per shipment and in total, load and discharge ports, freight rates and duration of the contract.
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| Contract warehouse
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A contract warehouse is a business that handles shipping, receiving, and storage of products on a contract basis. Contract warehouses will generally require a client to commit to a specific period of time (generally in years) for the services. Contracts may or may not require clients to purchase or subsidize storage and material-handling equipment. Fees for contract warehouses may be transaction and storage based, fixed, cost plus, or any combination. Also see public warehouse and 3pl.
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| Contribution
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The difference between sales price and various costs. Contribution is used to cover fixed costs and profits.
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| Contribution Margin
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An amount equal to the difference between sales revenue and variable costs.
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| Controlled Access
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Referring to an area within a warehouse or yard that is fenced and gated. These areas are typically used to store high-value items and may be monitored by security cameras.
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| Conveyance
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The application used to describe the function of a vehicle of transfer.
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| Conveyor
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A materials handling device that moves freight from one warehouse area to another. Roller conveyors utilize gravity, whereas belt conveyors use motors.
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| Cooperative Associations
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Groups of firms or individuals having common interests; agricultural cooperative associations may haul up to 25 percent of their total interstate non-farm, nonmember goods tonnage in movements incidental and necessary to their primary business.
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| Coordinated Transportation
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Two or more carriers of different modes transporting a shipment.
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| Co-Packer
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A contract co-packer produces goods and/or services for other companies, usually under the other company's label or name. Co-packers are more frequently seen in consumer packaged goods and foods.
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| Coproduct
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The term coproduct is used to describe multiple items that are produced simultaneously during a production run. Coproducts are often used to increase yields in cutting operations, such as die cutting or sawing, when it is found that scrap can be reduced by combining multiple sized products in a single production run. Coproducts are also used to reduce the frequency of machine setups required in these same types of operations. Coproducts, also known as byproducts, are also common in process manufacturing such as in chemical plants. Although the concept of coproducts is fairly simple, the programming logic required to provide for planning and processing of coproducts is very complicated and most off-the-shelf manufacturing software will have problems with coproduct processing.
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| CORBA
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Common Object Request Broker Architecture.
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| Core Competency
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Bundles of skills or knowledge sets that enable a firm to provide the greatest level of value to its customers in a way that's difficult for competitors to emulate and that provides for future growth. Core competencies are embodied in the skills of the workers and in the organization. They are developed through collective learning, communication, and commitment to work across levels and functions in the organization and with the customers and suppliers. A core competency could be the capability of a firm to coordinate and harmonize diverse production skills and multiple technologies.
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| Core Process
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That unique capability that is central to a company's competitive strategy.
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| Cost Accounting
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The branch of accounting that is concerned with recording and reporting business operating costs. It includes the reporting of costs by departments, activities, and products.
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| Cost Allocation
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In accounting, the assignment of costs that cannot be directly related to production activities via more measurable means, e.g., assigning corporate expenses to different products via direct labor costs or hours.
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| Cost and Freight (C & F)
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The seller quotes a price that includes the cost of transportation to a specific point. The buyer assumes responsibility for loss and damage and pays for the insurance of the shipment.
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| Cost Center
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In accounting, a sub-unit in an organization that is responsible for costs.
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| Cost Driver
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In accounting, any situation or event that causes a change in the consumption of a resource, or influences quality or cycle time. An activity may have multiple cost drivers. Cost drivers do not necessarily need to be quantified; however, they strongly influence the selection and magnitude of resource drivers and activity drivers.
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| Cost Driver Analysis
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In cost accounting, the examination, quantification, and explanation of the effects of cost drivers. The results are often used for continuous improvement programs to reduce throughput times, improve quality, and reduce cost.
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| Cost Element
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In cost accounting, the lowest level component of a resource activity, or cost object.
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| Cost Management
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The management and control of activities and drivers to calculate accurate product and service costs, improve business processes, eliminate waste, influence cost drivers, and plan operations. The resulting information can be very useful in setting and evaluating an organization's strategies.
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| Cost of Capital
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The cost to borrow or invest capital.
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| Cost of goods sold
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Accounting term used to describe the total value (cost) of products sold during a specific time period. Since inventory is an asset, it is not expensed when it is purchased or produced. It instead goes into an asset account (usually called inventory). When product is sold, the value of the product (the cost, not the sell price) is moved form the asset account to an expense account called cost of goods sold or cogs. Cogs appears on the profit-and-loss statement and is also used for calculating inventory turns.
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| Cost of Lost Sales
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The forgone profit companies associate with a stockout.
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| Cost Trade-Off
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The interrelationship among system variables in which a change in one variable affects other variables' costs. A cost reduction in one variable may increase costs for other variables, and vice versa.
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| Cost Variance
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In cost accounting the difference between what has been budgeted for an activity and what it actually costs.
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| Cost, Insurance, Freight
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A freight term indicating that the seller is responsible for cost, the marine insurance, and the freight charges on an ocean shipment of goods.
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| Costing method
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Refers to the calculations used to determine inventory cost. See also average cost, current cost, standard cost, actual cost, landed cost, first-in-first-out, last-in-last-out.
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| Cost-of-Goods Sold (COGS)
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The amount of direct materials, direct labor, and allocated overhead associated with products sold during a given period of time, determined in accordance with Generally Accepted Accounting Principles (GAAP).
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| COTD
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Please refer Complete and On-Time Delivery.
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| Council of Supply Chain Management Professionals (CSCMP)
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The CSCMP is a not-for-profit professional business organization consisting of individuals throughout the world who have interests and/or responsibilities in logistics and supply chain management, and the related functions that make up these professions. Its purpose is to enhance the development of the logistics and supply chain management professions by providing these individuals with educational opportunities and relevant information through a variety of programs, services, and activities.
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| Countertrade
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A reciprocal trading agreement that includes a variety of transactions involving two or more parties.
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| Countervailing Duties
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An additional import duty imposed to offset Government subsidies in the exporting country, when the subsidized imports cause material injury to domestic industry in the importing country.
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| Country of Destination
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The country that will be the ultimate or final destination for goods.
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| Country of Origin
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The country where the goods were manufactured.
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| Courier Service
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A fast, door-to-door service for high-valued goods and documents; firms usually limit service to shipments weighing fifty pounds or less.
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| CPFR
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Please refer Collaborative Planning, Forecasting and Replenishment.
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| CPG
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Consumer Packaged Goods (see separate listing)
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| CPI
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Please refer Continuous Process Improvement.
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| Crane
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A materials handling device that lifts heavy items. There are two types bridge and stacker.
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| Credit Level
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The amount of purchasing credit a customer has available. Usually defined by the internal credit department and reduced by any existing unpaid bills or open orders.
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| Credit Terms
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The agreement between two or more enterprises concerning the amount and timing of payment for goods or services.
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| Critical Differentiators
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This is what makes an idea, product, service, or business model unique.
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| Critical Success Factor (CSF)
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Those activities and/or processes that must be completed and/or controlled to enable a company to reach its goals.
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| Critical Success Factor (CSF)
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Those activities and/or processes that must be completed and/or controlled to enable a company to reach its goals.
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| Critical Value Analysis
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A modified ABC analysis in which a company assigns a subjective critical value to each item in an inventory.
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| CRM
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Please refer Customer Relationship Management.
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| Cross Docking
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A distribution system in which merchandise received at the warehouse or distribution center is not put away, but instead is readied for shipment to retail stores. Cross docking requires close synchronization of all inbound and outbound shipment movements. By eliminating the put-away, storage, and selection operations, it can significantly reduce distribution costs.
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| Cross Sell
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The practice of attempting to sell additional products to a customer during a sales call. For example, when the CSR presents a camera case and accessories to a customer that is ordering a camera.
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| Cross Shipment
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Material flow activity where materials are shipped to customers from a secondary shipping point rather than from a preferred shipping point.
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| Cross-belt sorter
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Conveyor sorting system that uses a series of devices (carriers) mounted on a conveyor to sort materials. Each device has a small belt conveyor mounted on top of it that runs perpendicular to the direction of the main conveyor. When it arrives at a sort point, the conveyor on the carrier will spin, moving the materials to the side of the main conveyor (usually onto another conveyor, dropping down a chute, or into a container).
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| Crossdock
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Crossdock operations in a warehouse involve moving goods between different trucks to consolidate loads without intermediate storage.
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| Cross-docking
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In its purest form cross-docking is the action of unloading materials from an incoming trailer or rail car and immediately loading these materials in outbound trailers or rail cars, thus eliminating the need for warehousing (storage). In reality, pure cross-docking is rare outside of transportation hubs and hub-and-spoke type distribution networks. Many "cross-docking" operations require large staging areas where inbound materials are sorted, consolidated, and stored until the outbound shipment is complete and ready to ship. This staging may take hours, days, or even weeks in which case the "staging area" is essentially a "warehouse".
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| CRP
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Capacity requirements planning (see separate listing)
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| CRP
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Please refer Continuous Replenishment Planning.
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| CSCMP
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Please refer Council of Supply Chain Management Professionals.
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| CSF
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Please refer Critical Success Factor.
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| CSG
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Communications Support Group.
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| CSR
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Please refer Customer Service Representative.
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