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| FA
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Please refer Functional Acknowledgement
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| Fabricator
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A manufacturer that turns the product of a raw materials supplier into a larger variety of products. A fabricator may turn steel rods into nuts, bolts, and twist drills, or may turn paper into bags and boxes.
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| Facilities
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The physical plant, distribution centers, service centers, and related equipment.
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| Failure Modes Effects Analysis (FMEA)
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A pro-active method of predicting faults and failures so that preventive action can be taken.
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| Fair Return
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A profit level that enables a carrier to realize a rate of return on investment or property value that the regulatory agencies deem acceptable for that level of risk.
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| Fair Value
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The value of the carrier's property; the calculation basis has included original cost minus depreciation, replacement cost, and market value.
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| FAS
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Please refer Final Assembly Schedule
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| FAS
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Please refer Free Along Side.
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| Fast Charging
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Method for quickly recharging lift truck batteries on the vehicle during short periods where the vehicle is not being used (lunches, breaks, shift changes, etc). This process for "opportunity charging" eliminates the need to change batteries in multi-shift operations. Fast charging requires special chargers (called fast chargers). Fast chargers are significantly more expensive than standard battery chargers and there is still debate as to whether or not fast charging causes any harm to the batteries. The cost of the fast chargers can be offset by labor and equipment savings related to the elimination of changing batteries.
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| Fast Moving Consumer Goods
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(FMCG) description of common high volume products such as food, hygiene product, or cleaning supplies. These would be products that the average consumer would frequently purchase such as soda, toothpaste, or dish soap.
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| FCL
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Please refer Full Container Load.
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| Federal Aviation Administration
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The federal agency that administers federal safety regulations governing air transportation.
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| Federal Maritime Commission
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Regulatory agency responsible for rates and practices of ocean carriers shipping to and from the United States.
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| FEU
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Forty-foot equivalent unit, a standard size intermodal container.
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| FG
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Please refer Finished Goods Inventory.
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| FGI
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Please refer Finished Goods Inventory.
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| Field Finished Goods
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Inventory which is kept at locations outside the four walls of the manufacturing plant (i.e., distribution center or warehouse).
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| Field Service Parts
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Parts inventory kept at locations outside the four walls of the manufacturing plant (i.e., distribution center or warehouse.
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| Field Services
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Please refer After-Sale Service.
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| Field Warehouse
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A warehouse that stores goods on the goods' owner's property while the goods are under a bona fide public warehouse manager's custody. The owner uses the public warehouse receipts as collateral for a loan.
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| FIFO
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First-in-first-out. In warehousing describes the method of rotating inventory to used oldest product first. Actually an accounting term used to describe an inventory costing method. See LIFO
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| FIFO
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Please refer First In First Out.
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| Fill rate
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Sales order processing measurement that quantifies the ability to fill orders.There are various ways of measuring fill rate. Line fill compares the number of line items shipped complete to the total number of lines ordered ( 95 line items shipped complete out of 100 lines ordered would result in a 95% line fill rate). Order fill compares the number of orders shipped complete to the total number of orders shipped. Other examples of fill rates would include dollar fill rate (comparing dollars shipped to dollars ordered), unit fill rate (comparing units shipped to units ordered). In fulfillment operations and some distribution operations where orders are generally shipped within 24 hours of receipt of order, fill rates reflect the ability to immediately ship from stock. In manufacturing operations and distribution operations that have lead-times for products, fill rates reflect the ability to ship to an agreed-to date. In these environments fill rate measurements are sometimes called On-time-and-Complete (OTC) measurement. Tolerances are sometimes used in fill rate measurements to allow lines or orders that are not shipped complete but are within the tolerance to be considered as "shipped complete". The tolerances may be based on units, dollars, lines, or dates (shipped within certain tolerance of required date).
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| Fill Rate
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The percentage of order items that the picking operation actually found.
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| Fill Rates by Order
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Whether orders are received and released consistently, or released from a blanket purchase order, this metric measures the percentage of ship-from-stock orders shipped within 24 hours of order "release." Make-to-stock schedules attempt to time the availability of finished goods to match forecasted customer orders or releases. Orders that were not shipped within 24 hours due to consolidation but were available for shipment within 24 hours are reported separately. In calculating elapsed time for order fill rates, the interval begins at ship release and ends when material is consigned for shipment.
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| Final Assembly
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The highest level assembled product, as it is shipped to customers. This terminology is typically used when products consist of many possible features and options that may only be combined when an actual order is received.
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| Final Assembly Schedule (FAS)
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A schedule of end items to finish the product for specific customers' orders in a make-to-order or assemble-to-order environment. It's also referred to as the finishing schedule because it may involve operations other than just the final assembly; also, it may not involve assembly, but simply final mixing, cutting, packaging, etc. The FAS is prepared after receipt of a customer order as constrained by the availability of material and capacity, and it schedules the operations required to complete the product from the level where it is stocked (or master scheduled) to the end-item level.
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| Final Destination
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The last stopping point for a shipment.
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| Finance Lease
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An equipment-leasing arrangement that provides the lessee with a means of financing for the leased equipment; a common method for leasing motor carrier trailers.
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| Financial Responsibility
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Motor carriers must have bodily injury and property damage (not cargo) insurance of not less than 500,000 per incident per vehicle; higher financial responsibility limits apply for motor carriers transporting oil or hazardous materials.
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| Finished Goods Inventory (FG or FGI)
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Products completely manufactured, packaged, stored, and ready for distribution.
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| FIPS
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Federal Information Processing Standards.
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| Firewall
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A computer term for a method of protecting the files and programs on one network from users on another network. A firewall blocks unwanted access to a protected network while giving the protected network access to networks outside of the firewall. a company will typically install a firewall to give users access to the Internet while protecting their internal information.
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| Firm Planned Order
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In a DRP or MRP system, a planned order whose status has been updated to a fixed order.
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| First In First Out (FIFO)
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In inventory control and financial accounting, this refers to the practice of using stock from inventory on the basis of what was received first and is consumed first.
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| First Mover Advantage
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Market innovator, putting the company in the leadership position.
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| Fixed Costs
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Costs which do not fluctuate with business volume in the short run. Fixed costs include items such as depreciation on buildings and fixtures.
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| Fixed Order Quantity
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A lot-sizing technique in MRP or inventory management that will always cause planned or actual orders to be generated for a pre-determined fixed quantity, or multiples thereof, if net requirements for the period exceed the fixed order quantity.
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| Fixed Overhead
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Traditionally, all manufacturing costs, other than direct labor and direct materials, that continue even if products are not produced. Although fixed overhead is necessary to produce the product, it cannot be directly traced to the final product.
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| Fixed Quantity Inventory Model
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A setup wherein a company orders the same (fixed) quantity each time it places an order for an item.
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| Flatbed
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A flatbed, also called a haul brite, is a type of trailer on a truck that consists of a floor and no enclosure.
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| Flatcar
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A railcar without sides, used for hauling machinery.
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| Flex conveyor
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Portable conveyor that can be expanded, contracted, and flexed around curves. See conveyer pics.
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| Flexibility
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Ability to respond quickly and efficiently to changing customer and consumer demands.
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| Flexible Specialization
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A strategy based on multi-use equipment, skilled workers, innovative senior management to accommodate the continuous change that occurs in the marketplace.
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| Flexible-Path Equipment
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Materials handling devices that include hand trucks and forklifts.
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| Flight Number
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An identifier associated with the air equipment (plane). Typically a combination of two letters, indicating the airline, and three or four digits indicating the number of the voyage.
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| Float
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The time required for documents, payments, etc. to get from one trading partner to another.
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| Floor-Ready Merchandise (FRM)
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Goods shipped by suppliers to retailers with all necessary tags, prices, security devices, etc. already attached so goods can be cross docked rapidly through retail DCs, or received directly at stores.
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| Flow Rack
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A storage method where product is presented to picking operations at one end of a rack and replenished from the opposite end.
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| Flow rack
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Racking system that incorporates sections of conveyor to allow the cartons or pallets to flow to the face of the rack. Stocking is performed from the rear of the rack. Also see racking pics page.
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| Flow-Through Distribution
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A process in a distribution center in which products from multiple locations are brought in to the D.C. and are re-sorted by delivery destination and shipped in the same day. Also known as a "cross-dock" process in the transportation business.
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| Flue space
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Please refer Longitudinal flue space and Transverse flue space.
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| FMCG
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Fast Moving Consumer Goods (see separate listing)
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| FOB
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A term of sale defining who is to incur transportation charges for the shipment, who is to control the shipment movement, or where title to the goods passes to the buyer; originally meant "free on board ship." See Free on Board.
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| FOB Destination
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Title passes at destination, and seller has total responsibility until shipment is delivered.
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| FOB Origin
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Title passes at origin, and buyer has total responsibility over the goods while in shipment.
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| Forecast
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An estimate of future demand. A forecast can be constructed using quantitative methods, qualitative methods, or a combination of methods, and can be based on extrinsic (external) or intrinsic (internal) factors. Various forecasting techniques attempt to predict one or more of the four components of demand cyclical, random, seasonal, and trend.
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| Forecast consumption
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Describes the method(s) your inventory management software uses to reduce forecasted demand by the actual demand that occurs during the forecast period. Incorrectly set up forecast consumption parameters or lack of functionality related to forecast consumption can often create serious problems with planning systems.
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| Forecast error
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The difference between the forecast quantity for a period and the actual demand experienced during that period. Forecast error is calculated after the period has passed and is used to evaluate the forecast and make adjustments.
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| Forecasting
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Predictions of how much of a product will be purchased by customers. Relies upon both quantitative and qualitative methods. Also see Forecast.
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| Foreign Trade Zone (FTZ)
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An area or zone set aside at or near a port or airport under the control of the US Customs Service, for holding goods duty-free pending Customs clearance.
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| Forging
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Generally describes an unfinished item made of metal that is produced through a process that heats the metal (not to melting point) then uses pressure or hammering to change the shape of the metal into a shape that closely resembles the finished item that will ultimately be made (through machining processes) from the forging.
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| For-Hire Carrier
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A carrier that provides transportation service to the public on a fee basis.
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| Fork positioner
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Lift truck attachments that allow the operator to adjust the distance between the forks without getting off of the truck. Used primarily in high volume operations where there is a great variety of pallet and crate sizes handled.
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| Forklift
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A.k.a Fork Lift. See Lift Trucks.
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| Forklift Truck
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A machine-powered device used to raise and lower freight and to move freight to different warehouse locations.
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| Forklift-free plants
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A strategy to eliminate or reduce forklift use in operations. Used mainly in manufacturing operations, forklift-free usually involves finding ways to eliminate forklift use in specific areas (mainly the production areas). A key benefit is the safety of workers, but other benefits such as better space utilization and reduction of costs associated with lift trucks may also be factors.
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| Form Utility
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The value the production process creates in a good by changing the item's form.
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| Forwarder's Bill of Lading
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Please refer Consolidator's Bill of Lading.
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| Four P's
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A set of marketing tools to direct the business offering to the customer. The four P's are product, price, place, and promotion.
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| Fourth Party Logistics (4PL)
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Differs from third party logistics in the following ways
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| Four-Wall Inventory
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The stock which is contained within a single facility or building.
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| FPA
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Free of Particular Average. See Marine Cargo Insurance.
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| Free Along Side (FAS)
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The seller agrees to deliver the goods to the dock alongside the overseas vessel that is to carry the shipment. The seller pays the cost of getting the shipment to the dock; the buyer contracts the carrier, obtains documentation, and assumes all responsibility from that point forward.
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| Free Alongside Ship
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A term of sale indicating that the seller is liable for all changes and risks until the goods sold are delivered to the port on a dock that will be used by the vessel. Title passes to the buyer when the seller has secured a clean dock or ship's receipt of goods.
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| Free of Particular Average
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Please refer Marine Cargo Insurance.
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| Free on Board (FOB)
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Contractual terms between a buyer and a seller that define where title transfer takes place.
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| Free Time
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The period of time allowed for the removal or accumulation of cargo before charges become applicable.
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| Free Trade Zone (FTZ)
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Please refer Foreign Trade Zone.
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| Freight
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Goods being transported from one place to another.
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| Freight Bill
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The carrier's invoice for payment of transport services rendered.
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| Freight Carriers
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Companies that haul freight, also called "for-hire" carriers. Methods of transportation include trucking, railroads, airlines, and sea borne shipping.
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| Freight Charge
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The rate established for transporting freight.
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| Freight Collect
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The freight and charges to be paid by the consignee.
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| Freight Consolidation
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The grouping of shipments to obtain reduced costs or improved utilization of the transportation function. Consolidation can occur by market area grouping, grouping according to scheduled deliveries, or using third party pooling services such as public warehouses and freight forwarders.
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| Freight Forwarder
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An organization which provides logistics services as an intermediary between the shipper and the carrier, typically on international shipments. Freight forwarders provide the ability to respond quickly and efficiently to changing customer and consumer demands and international shipping (import/export) requirements.
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| Freight Forwarders Institute
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The freight forwarder industry association.
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| Freight Prepaid
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The freight and charges to be paid by the consignor.
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| Freight Quotation
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A quotation from a carrier or forwarder covering the cost of transport between two specified locations.
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| Freight-All-Kinds (FAK)
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An approach to rate making whereby the ante is based only upon the shipment weight and distance; widely used in TOFC service.
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| Fronthaul
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The first leg of the truck trip that involves hauling a load or several loads to targeted destinations.
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| FTL
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Please refer Full Truck Load.
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| FTZ
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Please refer Foreign Trade Zone and Free Trade Zone.
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| Fulfillment
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The act of fulfilling a customer order. Fulfillment includes order management, picking, packaging, and shipping.
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| Fulfillment
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The activity of processing customer shipments. Though most manufacturig and warehouse operations will process customer shipments, this term usually refers to operations that ship many small orders (usually parcels) to end users as opposed to operations that process larger shipments to other manufacturers, wholesalers, or resellers. Examples of fulfillment operations would include operations that process shipments for mail-order catalogs, internet stores, or repair parts.
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| Full Containerload (FCL)
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A term used when goods occupy a whole container.
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| Full Truckload (FTL)
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Same as Full Containerload, but in reference to motor carriage instead of containers.
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| Full-Service Leasing
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An equipment-leasing arrangement that includes a variety of services to support the leased equipment; a common method for leasing motor carrier tractors.
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| Full-time Connection
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A communication link between two (or more) entities which is normally maintained continuously.
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| Fully Allocated Cost
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The variable cost associated with a particular output unit plus a common cost allocation.
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| Functional Acknowledgement (FA)
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A specific EDI Transaction Set (997) sent by the recipient of an EDI message to confirm the receipt of data but with no indication as to the recipient application's response to the message. The FA will confirm that the message contained the correct number of lines, etc., via control summaries, but does not report on the validity of the data.
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| Functional Group
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Part of the hierarchical structure of EDI transmissions, a functional group contains one or more related transaction sets preceded by a functional group header and followed by a functional group trailer.
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| Functional Silo
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A view of an organization where each department or functional group is operated independently of other groups within the organization. Each group is referred to as a "Silo." This is the opposite of an integrated structure.
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