Logistics Competency Exam Terms I-S

Supply Chain

1) starting with unprocessed raw materials and ending with the final customer using the finished goods, the supply chain links many companies together. 2) the material and informational interchanges in the logistical process stretching from acquisition of raw materials to delivery of finished products to the end user. All vendors, service providers and customers are links in the supply chain.

Reconsignment

A carrier service that permits changing the destination and/or consignee after the shipment has reached its originally billed destination and paying the through rate from origin to final destination.

Special-Commodities Carrier

A common carrier trucking company that has authority to haul a special commodity; there are 16 special commodities, such as household goods, petroleum products, and hazardous materials.

Integrated Carrier

A company that offers a blend of transportation services such as land, sea and air carriage, freight forwarding, and ground handling.

Integrated Logistics

A comprehensive, system-wide view of the entire supply chain as a single process, from raw materials supply through finished goods distribution. All functions that make up the supply chain are managed as a single entity, rather than managing individual functions separately.

Request for Quote (RFQ)

A document used to solicit vendor responses when a product has been selected and price quotations are needed from several vendors.

Manifest

A document which describes individual orders contained within a shipment.

Request for Proposal (RFP)

A document, which provides information concerning needs and requirements for a manufacturer. This document is created in order to solicit proposals from potential suppliers. For, example, a computer manufacturer may use a RFP to solicit proposals from suppliers of third party logistics services.

Maritime Administration

A federal agency that promotes the merchant marine, determines ocean ship routes and services, and awards maritime subsidies.

Non-Vessel-Owning Common Carrier (NVOCC)

A firm that offers the same services as an ocean carrier, but which does not own or operate a vessel. NVOCCs usually act as consolidators, accepting small shipments (LCL) and consolidating them into full container loads. They also consolidate and disperse international containers that originate at or are bound for inland ports. They then act as a shipper, tendering the containers to ocean common carriers. They are required to file tariffs with the Federal Maritime Commission and are subject to the same laws and statutes that apply to primary common carriers.

Ship Broker

A firm that serves as a go-between for the tramp ship owner and the chartering consignor or consignees.

Lighter

A flat-bottomed boat designed for cross-harbor or inland waterway freight transfer. While the terms barge and lighter are used interchangeably, a barge usually refers to a vessel used for a long haul, while a lighter is used for a short haul.

Major Carrier

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

Ship Agent

A liner company or tramp ship operator representative who facilitates ship arrival, clearance, loading and unloading, and fee payment while at a specific port.

Relay Terminal

A motor carrier terminal designed to facilitate the substitution of one driver for another who has driven the maximum hours permitted.

License Plate

A pallet tag; refers to a uniquely numbered bar code sticker placed on a pallet of product. Typically contains information about product on the pallet.

Line-Haul Shipment

A shipment that moves between cities and distances over 100 to 150 miles.

Port Authority

A state or local government that owns, operates, or otherwise provides wharf, dock, and other terminal investments at ports.

Self-Billing

A transportation industry strategy which prescribes that a carrier will accept payment based on the tender document provided by the shipper.

Standard Carrier Alpha Code (SCAC/SCAC Code)

A unique 2 to 4-letter code assigned to transportation companies for identification purposes. SCAC codes are required for EDI, and are printed on bills of lading and other transportation documents.

Special-Commodity Warehouses

A warehouse that is used to store products that require unique types of facilities, such as grain (elevator), liquid (tank), and tobacco (barn).

Sustaining Activity

An activity that benefits an organizational unit as a whole, but not any specific cost object.

Mileage Allowance

An allowance based upon distance and given by railroads to shippers using private rail cars.

Load Tender (Pick-Up Request)

An offer of cargo for transport by a shipper. Load tender terminology is primarily used in the motor industry.

Lead Logistics Partner (LLP)

An organization that organizes other 3rd party logistics partners for outsourcing of logistics functions. An LLP serves as the client's primary supply chain management provider, defining processes and managing the provision and integration of logistics services through its own organization and those of its subcontractors.

Pro Number

Any progressive or serialized number applied for identification of freight bills, bills of lading, etc.

Short-Haul Discrimination

Charging more for a shorter haul than for a longer haul over the same route, in the same direction, and for the same commodity.

Landed Cost

Cost of product plus relevant logistics costs such as transportation, warehousing, handling, etc. Also called Total Landed Cost or Net Landed Costs

Lash Barges

Covered barges that are loaded on board oceangoing ships for movement to foreign destinations.

Long Ton

Equals 2,240 pounds.

Measurement Ton

Equals 40 cubic feet; used in water transportation rate making.

Inbound Freight and Duties

Freight costs associated with the movement of material from a vendor to the buyer and the associated administrative tasks. Duties are those fees and taxes levied by government for moving purchased material across international borders. Customs broker fees should also be considered in this category.

In Bond

Goods are held or transported In-Bond under customs control either until import duties or other charges are paid, or to avoid paying the duties or charges until a later date.

INCOTERMS

International terms of sale developed by the International Chamber of Commerce to define sellers' and buyers' responsibilities.

Liner Service

International water carriers that ply fixed routes on published schedules.

Maritime Transportation Security Act (MTSA)

Law passed in 2002 to create a comprehensive national system of transportation security enhancements. The MTSA designated the U.S. Coast Guard as the lead federal agency for maritime homeland security and requires federal agencies, ports, and vessel owners to take numerous steps to upgrade security.

MIFFA

MINERVA INTERNATIONAL FREIGHT FORWARDERS ASSOCIATION

In-transit Inventory

Material moving between two or more locations, usually separated geographically; for example, finished goods being shipped from a plant to a distribution center.

Non-Intrusive Inspection technology (NII)

Originally developed to address the threat of smugglers using increasingly sophisticated techniques to conceal narcotics deep in commercial cargo and conveyances, NII systems, in many cases, give Customs inspectors the capability to perform thorough examinations of cargo without having to resort to the costly, time consuming process of unloading cargo for manual searches, or intrusive examinations of conveyances by methods such as drilling and dismantling.

Port of Loading (POL)

Port where cargo is loaded aboard the vessel.

Port of Discharge (POD)

Port where vessel is off loaded.

Smart and Secure Trade Lanes (SST)

Private initiative of the Strategic Council on Security Technology, an assembly of executives from port operators, major logistics technology providers, transportation consultancies, and former generals and public officials. Aims to enhance the safety, security and efficiency of cargo containers and their contents moving through the global supply chain into U.S. ports.

Piggyback

Terminology used to describe a truck trailer being transported on a railroad flatcar.

Lading

The cargo carried in a transportation vehicle.

Inland Bill of Lading

The carriage contract used in transport from a shipping point overland to the exporter's international carrier location.

Logistics Channel

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

Load Tendering

The practice of providing a carrier with detailed information and negotiated pricing (the tender) prior to scheduling pickup. This practice can help assure contract compliance and facilitate automated payments (self-billing).

Outbound Logistics

The process related to the movement and storage of products from the end of the production line to the end user.

Laid-Down Cost

The sum of the product and transportation costs. The laid-down cost is useful in comparing the total cost of a product shipped from different supply sources to a customer's point of use.

Net Weight

The weight of the merchandise, unpacked, exclusive of any containers.

Marshaller or Marshalling Agent

This is a service unique to international trade and relates to an individual or firm that specializes in one or more of the activities preceding Main Carriage, such as consolidation, packing, marking, sorting of merchandise, inspection, storage, etc. References state that Marshaling Agent, Consolidation Agent and Freight Forwarder all have the same meaning.

On-Carriage

Transporting a container after it has been off-loaded from a vessel (also see pre-carriage)

Pre-Carriage

Transporting a container before it is loaded onto a vessel. (see on-carriage)

Interline

Two or more motor carriers working together to haul the shipment to a destination. Carrier equipment may be interchanged from one carrier to the next, but usually the shipment is rehandled without the equipment.