LOGISTICS

TERMINOLOGY
 # accordance with the clients from the client to inform
contract. Nexus of the contents of
3PL - Describes businesses an inbound shipment prior
that provide one or many Accessorial Charge - to its arrival. The ASN is
of a variety of logistics- The amount charged to referred to in the Nexus
related services. Types of the client for providing Warehouse Management
services may include public accessorial service or System as an “In-transit”
warehousing, contract materials. (i.e. on its way). An ASN
warehousing, transportation can be communicated by
management, distribution Airbag - An inflatable bag telephone, fax, e-mail or EDI.
management, freight used to fill empty space on a It should include product
consolidation. load of product to keep the detail and preferably also
A 3PL provider may take product from shifting. includes inbound vehicle
over all receiving, storage, information (trailer number,
value added, shipping, Allocated Inventory - railcar number, etc.).
and transportation Inventory that is reserved for The advance shipping
responsibilities for a client a specific order, customer, notification provides details
and conduct them in the promotional event or other on the products being
3PL’s warehouse using purpose and is not to be shipped such as roll or
the 3PL’s equipment and used for standard order carton I.D. numbers.
employees, or may manage fulfillment purposes. Once
one or all of these functions allocated, this stock is no Assembly Area - Location
in the client’s facility using longer available as usable in the warehouse where
the client’s equipment, or inventory for new orders. products and loads are
any combination of the A sophisticated WMS collected and combined.
above. (Warehouse Management
Another term, 4PL, is System) will offer a variety Available Inventory - The
sometimes used to describe of ways to indicate a amount of shippable
businesses that manage a reserved or on hold status product in the warehouse;
variety of logistics related for specified inventory. does not include product
services for clients by using designated as damaged, on
3PLs. Apron - The area outside hold, or pending shipment.
the dock door which is
A used by delivery vehicles to B
park or position for loading
ABC, ABC Classification - and unloading. The Apron Bar Code - A UPC code that
A strategy for classifying is specifically designed identifies product. It consists
inventory or parts within to a depth that will allow of a series of black bars and
a warehouse or system. trailer floors to fit with the is scannable. The bar code
Typically fastest warehouse floor in a way represents an identification
that facilitates loading and number that is stored in the
Accessorial - A supplemental unloading. computer system along with
activity or material, outside other information about the
normal handling and ASN - An Advance Shipping product.
storage, that is billable in Notice (ASN) is received

2 | Logistics Terminology
Bar Code - A UPC code that bay for storage. the quantity of the item
identifies product. It consists found in the given locaiton
of a series of black bars and Beginning Inventory - without knowledge of the
is scannable. The bar code Inventory level and count at desired quantity according
represents an identification the beginning of a period. to the WMS (Warehouse
number that is stored in the Management System) or
computer system along with Bill of Lading - The Bill of inventory records.
other information about the Lading (BOL) is an official
product. document that accompanies Bonded Warehouse - A
every shipment. It serves bonded warehouse is one
Back Haul - When an as the contract between that has been approved
outbound shipment is the party that owns the by the U.S. Treasury
delivered, instead of coming freight and the carrier. Department who, due to
back empty, a load is picked The each driver prior to observance of revenue laws,
up from a destination close vehicle departure. When a has put the warehouse
to the final stop-off and then driver for an outside carrier under bond or guarantee. A
delivered either back to the signs the Bill of Lading, he/ bonded warehouse can also
warehouse or a Consignee she accepts responsibility be a warehouse utilized for
location near the warehouse. for the shipment. Upon the storage of merchandise
A Back Haul creates revenue arrival at the destination, that is on hold until duty is
as opposed to coming back the consignee or customer paid.
empty which would be an signs the Bill of Lading to
expense. indicate that the shipment Bottleneck - Traffic or
was received and all goods congestion in an area of
Banding - A type of plastic are present as itemized. the warehouse due to poor
or metal strapping that This customer-signed Bill planning or insufficient
helps support a load and of Lading then serves as resources.
hold it together. Can be a Proof of Delivery (POD) Bubble Wrap
used to strap and secure document. Sheet of plastic with air
product on a pallet or skid. bubbles that is used as a
Bin - A four-sided structure packing material.
Batch Picking - A picking that is mounted on a pallet. Bulkhead
method whereby one SKU A bin may or may not have A movable railcar partition
is picked one time for all a cover. Or, an area in the that is used to secure a load.
applicable orders and then warehouse used for storage
distributed across multiple of inventory that is being Bubble Wrap - Sheet of
orders in a staging or staged or at rest. plastic with air bubbles
packing location. that is used as a packing
Blind Counts - Blind counts material.
Bay - An area in the are used during physical
warehouse designated by inventories to prevent Bulkhead - A movable
markings on the columns or counter bias. The location railcar partition that is used
floor. and item code are provided to secure a load.
to the counter, but the
Bay Storage - Use of the counter must provide Bulk Storage - Storage of

3 | Logistics Terminology
large quantities of product Chock - To use a wood or but is still owned by the
in shipping containers. metal wedge to block the supplier. Consignment
May also be the storage of wheels of a truck while it is inventory is used as a
product that is not packed being loaded or unloaded. marketing tool to make it
(loose). easier for a customer to
Clamp - An attachment to stock a specific supplier’s
C a forklift that allows it to inventory. Read my article
encircle and grasp product. on Consignment Inventory.
Carousel - Material Handling
Equipment designed to Clear Height - The height Consolidate - Combine two
bring product to picker so pallets can be stacked or more shipments going in
that the picker can remain while leaving clearance the same direction or to the
stationed in a designated for product movement or same destination on a single
picking location without for lights, sprinklers, etc., trailer.
traveling. Ideally, order hanging from a ceiling.
information is loaded or Container - A container is a
automatically transferred Client - The stock that box that is used to transport
into the carousel system, arrives at our Distribution product, and is widely used
and multiple orders are Centers is owned by the for international shipments.
picked by multiple pickers at client, the companies that Marine containers or
one time. Types of carousels have made arrangements intermodal containers
include horizontal and with Nexus to store and can travel on ocean liners,
vertical. distribute their products. railroads, and on truck
frames (chassis).
Carrier - The carrier Commodity - Product
transports goods from the identified with specific Contract - A binding
client to Nexus and from clients (i.e. paper). agreement between Nexus
Nexus to the consignee. and a client stating terms of
The carrier can be Nexus Concealed Damage - the agreement, storage fees,
(Nexus owned truck), a Damage to product that transportation rates, and
transportation company, or is not obvious until the accessorial charges
the railroad. Responsibilities product is examined or the
include carrying the goods condition becomes apparent Contract Warehouse -
safely, in good condition and during storage or transfer. A warehouse operation
in a timely manner. managed by a third party
Consignee - The client’s logistics (3PL) provider
Carton - A unit of product, customers are referred to as for a specified period of
a protective casing around a the consignee. Just think of time. The 3PL manages
product. the consignee as the “end a client’s inventory and
user” or the company where order fulfillment processes.
Chassis - A frame with Nexus ships the stock. Pricing scenarios may vary
wheels that supports a and storage, labor and
container that is being Consignment inventory equipment resources are
transported over land. - Inventory that is in the typically dedicated to the
possession of the customer, client for the duration of the

4 | Logistics Terminology
contract. The client may takes to count all inventory Dock Face - Outer wall of
or may not share in the once. dock door.
building and equipment
expense. D Dock Leveler - A plate at
the dock door entrance that
Cross-Dock - Product or Dead Stock - Product that raised and lowered either
orders that are brought into has been in inventory for manually or hydraulically to
the warehouse but not put- an extended period of time accommodate trailer floor
away. Instead of the stock without being moved or heights.
arriving and being placed ordered.
into storage, the stock is Dock Light - A light used
temporarily stored at the Deep-Lane Storage - to illuminate the inside of
dock to be delivered or goes Product is stored more than a trailer in order to aid in
out immediately on another one unit deep in an aisle. the loading and unloading
vehicle to be shipped. This processes.
stock is usually shipped Distribution Center -
immediately or within a Nexus Distribution Centers Dock Plate - A moveable
day and does not go into are warehouse facilities metal plate that is placed
storage. that store, manage, and between the warehouse
ship inventory on behalf dock door and a trailer or
Cross-Training - Allowing of its clients. Inbound railcar and makes it easier/
employees to have carriers bring product smoother to access a trailer
experience in multiple tasks, into the Distribution or railcar with a forklift or
job functions, or across Center. Product can be similar equipment.
multiple accounts in order immediately allocated to
to increase productivity and existing orders, or it can Double-Deep Storage Lane
provide backup. be placed into storage for - Method of storing product
the purpose of filling future two loads deep in an aisle.
Cube Utilization - Space orders. Outbound carriers
utilized versus space transport stock from the Drayage - A container
available. Distribution Center to the or piggyback is moved
end user. Nexus Distribution from a rail yard to another
Customer Pick-Up - Load Centers are strategically location and then returning
that is picked up at the placed close to major that piggyback / container
warehouse by the customer transportation lanes (i.e. back to the initial pick-up
(usually within the same day highways, railroads). Nexus point, is known as a dray.
the order is placed). relies on outside carriers as It is important that these
well its own fleet of trucks containers get unloaded
Cycle Counting - The to transport product. quickly and returned back to
physical counting of the original point so not to
portions of inventory on Dock - A warehouse door incur detention charges.
an on-going basis. After a with an extending platform
period of time all products where trailers are loaded Drive-In Rack - Storage
have been counted. A cycle and unloaded. racking equipment that has
is then defined as the time it side rails to enable

5 | Logistics Terminology
warehouse operators to Emergency Order - Also ESFR heads detect fire
stack product high in deep known as an expedited faster and are reported to
rows. It provides access only order, this order is placed start spraying with more
from aisles. and processed to be picked speed than conventional
and shipped in an expedited sprinkler heads. They also
Drive-Through Rack - manner. output water at higher
Storage racking equipment volumes (approximately 100
with side rails to enable Ending Inventory - gallons per minute). Droplet
warehouse operators toe Inventory levels at the end size is typically bigger
stack product high in deep of a specified period. which delivers more water,
rows. Unlike Drive-In Rack, with greater speed, to the
Drive-Through Rack allows Enterprise Resource fire source. ESFR systems
access from either end of Planning (ERP) - Refers to reportedly extinguish fires
the row, as opposed to only a wide range of activities faster and more effectively
being accessible from the supported by software with less damage to product
aisle. with multiple modules than in-rack systems.
(accounting, purchasing,
Dunnage - Refers to packing inventory, manufacturing, Expiration Date
materials such as cardboard, etc.). Manufacturers and Date when merchandise
empty pallets, air bags, air other businesses utilize ERP is no longer able to be
pillows, packing peanuts, or systems to manage various shipped.
other materials utilized to aspects of their businesses,
protect freight. including: product planning, F
parts purchasing, inventory
E management, supplier Facility - The physical
management, customer warehouse or plant where
Electronic Data Interchange service management, and storage takes place.
(EDI) - Electronic Data order tracking. A relational
Interchange refers to a database system may be a First In, First Out (FIFO) -
computerized exchange of necessary component for Inventory allocation method
information with the client the effective use of an ERP whereby the first product
through the warehouse system. Implementation of stored is the first product
management system. It is an ERP system can involve that is utilized or allocated
a method of exchanging considerable business for the fulfillment of orders.
orders, invoices, shipping process analysis, user
forms and other documents training, and a significant FILO - First-in, last-out
over the computer. financial investment. system of inventory.
By eliminating the clerical,
mailing and other costs Early Suppression, Fast Finished Goods Inventory
associated with paper-based Response (ESFR)- Ceiling- - Products that are ready to
information, EDI reduces mounted sprinkler systems ship.
costs, time delays and that started being used in
errors. warehouses around 1990 Finished Product Inventory
as an alternative to rack- - Available products to ship
mounted sprinkler systems. to customers.

6 | Logistics Terminology
Floor Load - Refers to Freight Cost - This is the Handling - The labor
product stacked directly compensation paid to the involved in moving product
onto the floor of a trailer contracted carrier by Nexus received from the trailer
without pallets or slip for the transportation into the warehouse dock
sheets; product must be services performed. and then into the storage
unloaded manually without location on the “IN” and
the use of a forklift. Fulfillment - The picking moving the product out
and processing of orders for of the storage location
Flow Rack - Racking shipping from a distribution and into a staging location
equipment that allows for or warehouse. to then be loaded onto a
the product to be stocked trailer on the “OUT”. The
in through one side and Full Truckload - This Warehouse Forklift / Clamp
removed for order fulfillment term refers to a shipment Operator moves product
purposes from the other comprising a full or almost IN and OUT. If additional
side. Product stored in Flow full load on a truck. A handling is involved such as
Rack is naturally allocated full or almost full load is opening on days off, pick
via FIFO based on the considered to be 39,000 – packing etc., that are not the
racking equipment design. 44,000 pounds. normal handling as defined
in the warehouse contract,
Forklift - A warehouse G these would be defined
vehicle, also called a lift as additional accessorial
truck, which is used for Gaylord - Large corrugated charges for handling.
lifting and transporting carton that has the same
pallets of product. A length and width as a pallet. Handling Charge - Charge
forklift may have a special Gaylords are usually used to for normal warehouse
attachment on the front protect loose parts in bulk handling (inbound or
for specialized handling of and are frequently used in outbound, or both) to
product. manufacturing. customer.

Forks - Lift-truck Gravity Conveyor - Type Handling Costs - Cost to

attachment used to move of conveyor that uses warehouse or 3PL for all
stock on pallets. gravity to move materials. handling operations.
Skatewheel conveyer and
Freight Bill - An invoice roller conveyor are the most Hand Truck - Western hand
for transportation charges common types of gravity truck is a device used to
generated when a load is conveyor used, however, transport goods manually
delivered. even a simple steel chute with wheels within the side
is essentially a gravity rails. The Eastern hand-truck
Freight Charge - conveyor. is similar except the wheels
Compensation paid to are outside the side rails.
Nexus by the client for Gross Weight - The total
transportation services weight without deduction HazMat - Short for
performed. for tare (includes packaging “hazardous material.”
and container). Material is deemed
hazardous by the

7 | Logistics Terminology
government or a carrier. received; it is typically billed box, case, pallet, etc.).
HazMat may require special when product is received. Many labels contain bar-
handling or special facilities. coded information, to
Not all warehouses or Inner Packaging allow scanning devices to
carriers will handle HazMat. Also known as “dunnage,” quickly and automatically
includes materials such as transfer the information into
Hi-Lo - AKA Forklift. foam, paper, or wood used inventory systems. In some
References the ability of the to minimize movement cases, labels are pre-printed
truck to lift and put down within the container. and pre-affixed by the
freight. manufacturer. In other cases,
Inventory Turns labels must be created and
Honeycombing - The The number of times applied by the Distribution
situation that occurs when inventory turns is calculated Center prior to shipment of
a lot (see Lot) is partially using the following method: the product in accordance
depleted and the remaining a) Sum the Inventory In and with retailer or customer
space is wasted because it the Inventory Out, and then requirements.
cannot be utilized. divide by 2 to arrive at the
Throughput. Layout - Design and set-up
Housekeeping - Keeping b) The number of Inventory of warehouse storage.
the warehouse presentable, Turns is equal to the
organized, and safe for all Throughput divided by the Less Than Container
parties. Average Inventory. Load (LCL) - Shipments
weighing less than required
In-House Damage - Damage JIT, Just-in-Time for the application of a full
to product that occurred An inventory system that container rate. When the
while in the warehouse aims to coordinate the shipment is less than a full
(i.e. water leak, dropped arrival of materials or container load, the freight
product, etc.). supplies at a facility at may be calculated as an LCL
the moment that they shipment.
Intermodal - Intermodal are needed in an effort to
means using 2 or more, reduce storage and holding Less Than Truckload (LTL)
modes of transportation: costs. - Shipments weighing
rail, truck or ship. The stock less than required for the
can move over sea by ship, K application of a truckload
over land by rail and then, rate. A typical full truckload
at the main rail switch, the Kitting - Assembly of shipment is 39,000 –
container is removed and product or parts within the 44,000 pounds. Weight
put on truck chassis. The warehouse. breaks may vary across LTL
stock is then carried by classifications and in some
truck to our Distribution L instances it is less expensive
Centers. to apply a full truckload rate
Labels - Some clients even thought the shipment
Initial Storage - Warehouse require inventory or size may be less than
storage charge for the shipment labels to be 39,000 – 44,000 pounds.
month when product is attached to packaging (i.e.

8 | Logistics Terminology
Leveler - A dock plate that placement of product within Transportation term that
adjusts to the height of a the warehouse. describes shipments that are
trailer. less than a trailer load. LTL
Locator System - Locator also is used to describe the
License Plate Number - systems allow for more carriers that handle these
Otherwise known as an effective inventory-tracking. loads. LTL carriers generally
“LPN,” this is a number used Product can be stored in use strategically placed hubs
to identify products and a way that makes sense to sort and consolidate LTL
containers. for the warehouse, such as shipments into full-truck-
high demand product in load shipments.
Last In, First Out (LIFO) more accessible locations.
- Inventory allocation Locator systems assist Lumper - A contracted
method that selects newest in better accuracy with worker who assists in the
inventory first. inventory tracking and loading and unloading
control as well because it is process.
Lift Truck - A vehicle that all computerized.
is utilized to move and M
transfer product/freight Logistics - The processes
in a distribution center, and services associated with Manifest - A document
warehouse, terminal, planning and implementing that lists all of the products
manufacturing site, or flow of storage and being transported; used
dock. Often referred to as a shipments in a 3rd Party when loads are combined.
forklift. operation required to meet The Manifests (Loading and
the customers’ needs in an Driver) are generated by
Live Rack - Slanted rack that efficient manner. transportation in Phoenix.
allows for easier picking. A loading Manifest will be
Items are put into the high Loose - Product remainder printed to the Warehouse so
end of the rack and then in a specific location or layer. that they know who will be
picked from the low end. picking up the load and how
Desirable for FIFO picking Lot - A group of product to properly load the trailer.
procedures. with the same run or A Driver Manifest will be
manufacturing date. auto-faxed to the carrier so
Load - The product that is that they know the order of
picked and loaded onto a Lot Number - Identification the stop(s), the address and
truck and transported to a number assigned to specific shipping requirements of the
consignee. product for tracking client(s).
purposes that is usually tied
Location - Each product to a date or a production Master Carton - A large
has a specific location in the run. carton that is used to
warehouse. hold and protect smaller
Lot Number Traceability cartons or packages of
Location Audit - Routine The ability to trace items product. Using a master
audit of location records through their lot number. carton reduces handling as
to ensure that records are one larger piece instead of
compatible with actual LTL, Less-Than-Truckload - multiple small pieces.

9 | Logistics Terminology
Master Pack - A carton with materials or packaging. Order Cycle - Based on
containing a specific number The total weight of the demand and frequency
of product or multiple case product with deduction for orders of specific
quantities. for tare or packaging. For product, the order cycle is
example, the net weight on a a replenishment cycle that
Material Handling - The roll is the total weight of the determines how often a
services and processes the roll less the fiber core and product needs to sent as an
warehouse must utilize to wrap. inbound to the warehouse
move, store and otherwise in order to keep up with
handle materials. O demand.

Man-Up - Lift trucks that Obsolete Stock - Stock that Order Selector - Also known
raise the operator as well has no useable purpose that as an order picker, an order
as the load. Two types of remains in the warehouse. selector is a specialized lift
man-up lift trucks are turret truck that allows a person
trucks and order selectors. On-Hand Inventory - The to ride on it with the pallet
amount of product in the in order to pick from various
Motorized Pallet Truck warehouse. The product locations and levels.
- There are two different may be designated as
types of motorized pallet shippable, damaged, on O.S. & D. - Over, Short
trucks, the “Walkie” and hold, or pending shipment and Damage; it refers to
the “Rider.” The “Walkie” is (allocated to an order). the condition of a load of
built so that the operator product which arrives in
can walk alongside it. The On Hold - Refers to product a defective condition, or
“Rider” is built so that the that is designated as whose quantity does not
operator can stand and ride unable to be shipped; may match the bill of lading
on the truck. be product with damage, (cases over or short).
questionable quality, expired
N shelf life, etc. OSHA - Occupational Safety
& Health Administration,
Narrow aisle (NA) - Order - A directive, sent a branch of the US
Specialized lift trucks by the owner of the Department of Labor.
designed to be used in goods, to ship product
narrow aisles of 8 to 10 feet. out of the warehouse. An Overage - When more has
order specifies product, shipped on a load than was
Net Storage Area - Space quantity, shipping date, and intended or was indicated
in the warehouse (in square destination and may contain on the BOL.
feet or meters) that is special instructions.
actually used for storage. Over the Road Carrier -
This does not include aisles, Order Cost - The cost A truck or trailer used in
docks, offices and staging of labor, time, and other hauling freight by road to
areas. activities needed in an destinations outside a 70
instance that a product is mile radius of the Nexus
Net Weight - Product ordered. facility.
weight before being packed

10 | Logistics Terminology
 P small wheels that is used physical inventory.
in the warehouse to move
Packing List - The packing cases of product. It may be Pick/Pack - A warehouse
list is created in the a motorized unit guided by operation that involves
Distribution Center. The an operator who stands on picking individual items from
packing list identifies a platform; or it may be a cases and putting them
the quantity and weight motorized or manual unit together a carton or pack
of each product on the guided by an operator who for shipment.
order and each individual is walking behind or beside
item # (unit ID, serial it. Picker - The person in
number, etc.) if applicable. charge of picking specific
It is a comprehensive list Pallet Tag - Refers to the stock for orders.
identifying exactly what is bar code sticker placed on a
being shipped on the order. pallet of product. Picking - Picking is the
movement of stock from a
Pack Size - Describes how a Paper-Roll Clamp - storage area to a staging
product is packaged such as Designed specifically for area. The Fork Lift / Clamp
“20 cartons per pallet” or “6 the handling of large paper Operator will “pick” the
units per carton.” rolls, the paper roll clamp is stock which is assigned
a lift truck attachment that to a particular order. The
Pallet - A wooden or plastic clamps around the roll and Fork Lift / Clamp Operator
base upon which layers of also allows for a full 360 must pay close attention
product are stacked for degree rotation. and match the items listed
storage and transporting on the Pick Ticket to the
with a forklift or pallet jack. Partial - Less than a full information on the product.
pallet of product.
Pallet ID - The bar code tag Pick Ticket - The Pick Ticket
that is placed on a pallet for Perpetual Inventory is a document used by the
tracking purposes. System - A continuous Forklift / Clamp Operator
inventory tracking method or picker in the Distribution
Pallet inverter. - A machine where inventory taken Center who will be locating
that aids in the transfer of out is recorded with each the stock for the order.
product from one pallet to outbound order and new The Pick Ticket contains
another. The pallet inverter inventory is recorded with information such as, product
flips over the pallets and each inbound order. location, quantity, lot
product in order to put the numbers, serial numbers or
product on the new pallet Physical Inventory - A unit numbers.
and take off the old. physical count of everything
in the warehouse. Pick Time - The time it
Palletize - To put materials takes to pick and document
and product onto a pallet. Physical inventory - Refers specific stock for an order.
to the process of counting
Pallet Jack - Material all inventory in a warehouse Pick Slot - Location in
handling equipment or plant. Operations are warehouse where dedicated
consisting of pallet forks on usually shut down during a stock is stored. Also known

11 | Logistics Terminology
as a primary location. space in a vehicle, the client by the contract set by both
and Nexus can minimize parties.
Pick-to-Clear - Warehouse cost.
picks from locations with Putaway - Movement of
the least amount of product Private Warehouse - stock from the time it is
on hand in order to clear the Warehouse that is operated unloaded to the time it is
area. by the owner of what is put in its final location.
being stored inside of it.
Pick-to-Light - Used in Q
high volume piece picking, Product Code - A series of
technique where pickers characters assigned by the Quality Assurance, Quality
are directed to product by manufacturer to identify Control - The inspection of
lights. each of its products. This is product as it comes in or
usually the SKU. goes out of the warehouse
Piggy Back - The process in order to ensure quality.
of transporting a trailer on Pro Number - A number
a railroad flatbed; the trailer assigned to a shipment Queue Time - Amount
is then hauled to its final by the carrier for tracking of time before set-up or
destination by truck. purposes. processing of a job.

Pig - A type of trailer that Push-Back Rack - A rack R

can be transported on a rail system that pushes stored
car and also pulled by truck. product up an inclined ramp Rack -Metal framework in
in order to provide for deep the warehouse used to store
Pinwheel - Pinwheeling is a pallet storage. products several levels high.
process of arranging pallets
on a truck or product on a Push Sorter - Device used Radio frequency (RF). -
pallet to make the best use with conveyer systems, a A data system made up
of space when dealing with push sorter moves product of devices that use RF to
items of different sizes. on the conveyer using a transmit information into a
stationary device with an host system from different
Plugging - Plugging is arm that can push and sort. locations or from “on the
a method of switching job.”
direction, stopping, or Put-to-Light - Similar to
slowing down without using pick-to-light. Lights are used Ramp - Inclined area that
a break on electric industrial to guide which container the connects to the warehouse
vehicles. picked item is to be put into. to facilitate easier
movement in and out of the
P.O.D. - Proof Of Delivery; a Public Warehouse. - A warehouse by trucks and
signed bill of lading. business that provides the other equipment.
use of space for storage to a
Pool - A combination of less variety of clients. This space Random location storage
than truckload (LTL) freight can be leased for varying - A storage method where
built to form a full or almost amounts of time determined product is stored randomly.
full truckload. By sharing A benefit of random storage

12 | Logistics Terminology
is that it allows more Receiving Tally - A list of all of product from a consignee
productive utilization of the inbounds received in an to Nexus (i.e. RPC or RMA).
space, however, using this effort to ensure accuracy.
strategy may decrease Reverse Logistics - The
accuracy as like product is Recurring Storage - An logistics needed to plan
not necessarily together. amount charged to a client return of product or a load.
for monthly storage; it This may include a return
Rate Sheet - A schedule of is based on the amount order, transportation, and
warehouse or transportation of product stored in the put-away.
charges for a client. warehouse on the first day
of the month or specified by RF - Radio Frequency
RDC - Retail Distribution the contract. scanning and transmission
Center which replenishes to of data.
stores. Refrigerated Warehouse
- Temperature controlled RF Gun - A hand-held radio
Reach Truck - The reach warehouse that serves well frequency terminal with
truck is a narrow-aisle (8”- for storage of food and a screen, a keypad, and
10”) lift truck specially other perishable products. a scanner that is used by
designed for racked pallet warehouse personnel to
storage. It is also known as Release - Authorization to scan pallet tags and location
a stand-up reach, straddle ship. tags.
reach, or double-deep reach.
The reach truck is designed Re-order Point - Inventory Radio Frequency
with outriggers in front and reaches a specific point Identification (RFID) - An
telescoping forks controlled based on demand where it is alternative to barcodes,
by a hydraulic mechanism. set for replenishment. an RFID is a device on an
This mechanism allows you object used to transmit data
to pick up the load and pull Repack - Packaging material to an RFID receiver. RFIDs
it back over the outriggers in differently than how it vary in size depending on
order to reduce the overall arrived. Example: making a the object and hold more
truck and load length. It is pallet of 60 cartons into 3 data than the standard
helpful for turning down a pallets of 20 cartons. barcode. They are also
narrow aisle. The reach truck advantageous because the
has a mechanism that allows Replenishment - Refilling of data stored on the RFID can
for extended reach in order a picking location. be easily changed as they
to store pallets two-deep in do not require line-of-site in
a double deep rack. Return Authorization - order to transfer this data.
Permission given to a carrier
Real Time - Information or consignee to return Roller conveyor - A
is updated and saved product to Nexus. conveyer that uses rollers
instantaneously. to move product either by
Return Authorization gravity or automation.
Receiving Report - A record Number - This is usually
of the condition of all a number supplied by the S
inbound stock as it arrives. client authorizing the return

13 | Logistics Terminology
Safety Stock - Used to Shipment - Freight that Slotting - Approach used
ensure availability of stock is transported from one to determine the best
in case of deviations in location, such as a regional placement and locations for
supply or demand. These distribution center (RDC) products in the warehouse
are calculated by using past or manufacturing site, depending on its dimensions
deviations. To determine to another, such as a and how often the item is
the optimal safety stock consignee. picked.
level, a required service level
multiplier is needed. Ship To - Delivery address Soft Allocation - Initial
for the consignee. allocation of inventory to an
Standard Carrier Alpha Shrinkage order which will commit the
Code (SCAC) - a unique 2 Reduction in inventory inventory to the order but
to 4 letter code assigned to measurement (often referred not specifically pull it from a
transportation companies to as a result of loss or certain lot.
for identification purposes. theft).
SCAC codes are required Split Month Billing - Split
for EDI, and are printed on Shuttle - A load transported month billing is a variation
bills of lading and other from one customer-related on monthly billing. The client
transportation documents. facility to another; does not is charged:
include product shipped to a A “regular” rate for inbound
Scheduling - Logistics consignee. storage in the first half of
involves daily shipments the month, and
of stock into and out of Skatewheel Conveyor A “reduced” rate (i.e., 50%
the Nexus Distribution - Conveyer that moves discount) for inbound
Centers. There are a limited product using wheels. storage with a receipt date
number of docks / doors after the 15th of the month.
where outbound vehicles SKU - Stock Keeping Unit; This billing option can
can be loaded and inbound a product code assigned by address client resistance
vehicles unloaded. There the owner of the goods. to monthly billing (having
also may be limited people SKU (Stock Keeping Unit) to pay for a whole month’s
and equipment to handle A number (product code) storage for inbound stock
these tasks. Consequently, assigned to a single item or that arrives later in the
resources (people and items by the manufacturer. month).
equipment) and vehicle
traffic must be managed Slip Sheet - A sheet of Split Shipment - A partial
to avoid bottlenecks and cardboard on which product shipment where the
inactivity. This can be is stacked; used instead of a remainder of the order
achieved through the use of pallet. is on backorder and the
the Appointment Log in the warehouse cannot fulfill the
Phoenix System (RE.01). Slip Sheet Attachment - An entire request.
attachment to the front end
Serial Number - Number of a forklift that is used to Spot - To place a trailer in
assigned to a single item handle product on a slip a designated location or
in order to identify and sheet. warehouse door.
differentiate it from others.

14 | Logistics Terminology
Spot Check - Inspecting a Stencils - Stencils are Strap Loading - Product
sampling of containers in markings placed on is loaded onto a pallet and
a shipment to determine the product with the ID then secured with strapping.
if the quality of the entire information required by the
shipment. customer for the product Strapping - Used for
that they are receiving. This securing goods onto a
Spotter - A Nexus driver can be in different forms pallet. Can be metal or
who moves trailers in and dependent on the specifics plastic.
out of dock doors. for the customer. It can
be a label or just a chalk T
Spotting Horse - A inscription with the product
specialized tractor used only ID. Tag - A way to recognize a
to move trailers around the shipment or particular item.
warehouse facility and place Stretch Wrap - Clear plastic
them at doors where they film that is wrapped around Tally - A count performed
can be loaded or unloaded. a pallet of product to secure when shipments are
it. received in order to track
Stack Height - The number and record their condition.
of pallets rolls & skids that Stock - Inventory.
can be safely stacked on Tare - The weight of the
top of each other; the client Stock Allocation - When wrapping holding the goods.
supplies this information. the “computer looks for and For rolls, the tare consists of
allocates stock”, it checks fiber core and the wrap.
Stacking - Placing stock on to see if it is available. For pallets, the tare consists
top of other merchandise in Available stock can be used of the pallet and the wrap.
order to more efficiently use to fill the orders. When an The tare is the difference
space. order is input, the system between the net weight and
will automatically look for gross weight.
Staging - The process of available stock and allocate
getting product from its the stock to the particular Terminals - Break points
storage area and placing order. for carriers to strategically
it near the loading area reload freight for delivery to
for later shipment; or in Stock Rotation - Way of the final destination.
cross docking, the process prolonging shelf-life by
of unloading product and moving or replacing product Third Party Warehouse -
organizing it for immediate in a warehouse. Warehouse operated by a
shipment. 3PL Company that houses
Storage Charge - Charge to the products of their clients.
Staging Area - A designated client for holding stock that
area of the warehouse has not moved. Throughput - Method of
near the loading dock calculating average product
where product is placed or Storage Rate - Charge to movement.
arranged for shipment. client for all storage costs,
usually on a month-to- Tie - Units per Layer
month basis.

15 | Logistics Terminology
Trailer - An enclosed vehicle, and contains other terms Uprights - Vertical numbers
towed by a truck, which and conditions governing used in the storage rack for
is used for transporting the transportation activity. identification purposes.
product. There are a few
different types of trailers. Truck Door - Area in the V
These include tractor warehouse that is used to
trailers, semi-trailers, accommodate the loading Value-Added - Value is
flat beds and reefers and unloading of trailers. added to the distribution
(refrigerated trailers). Most process when there is a
trailers are 45’, 48’, or 53’ Turret Truck - Type of man- contribution made to the
long. up lifrt truck with a rotating functionality, value, or
fork that can turn 90 usefulness of a product.
Tractor - The truck that pulls degrees in either direction.
a trailer. Value Added Services
U - Extra services that a
Transaction Set - A group distribution center will
of data elements that Unitization - To take perform in order to meet the
represent the information on individual items and ship needs of their customers.
a business document, like a them as a single larger item. Typically refer to special
shipment order, and which assembly, packaging, or
are transmitted through EDI. Unit load - Otherwise known picking services.
as a unitized load, a unit
Transportation Management load is any arrangement of Vendor-Managed Inventory
System (TMS) materials that are moved - In a 3PL, this describes the
- System used by the by material handling instance of a client (vendor)
transportation department equipment, such as a controlling the inventory
which aids in such tasks lift truck, as a single unit at the 3PL warehouse.
as manifesting shipments, (example: palletized loads). This type of inventory
finding rate quotes, and control can be managed in
managing carriers. Unit of measure (U/M) - multiple ways including a
The type of measurement periodic physical check of
Traceability - Ability to track unit used to track inventory inventory by the vendor in
a shipment from the time it such as pallets or eaches order to determine what
leaves the warehouse until (individual units) in your needs to be supplied to the
the time it arrives at the system. warehouse. The vendor can
consignee. also have remote access to
Unit-of-Measure the warehouse’s inventory
Trackable - Total quantity of Conversions - Necessary control system (MRP) and
weight, space, and pallets. when working with multiple order based on the levels of
units of measures such as supply and demand visible
Transportation Tariff - A pallets and eaches. Requires electronically.
document published by a conversion such as eaches
a carrier that describes per pallet in order to make W
charges for transportation the load uniform.
between 2 or more points,

16 | Logistics Terminology
Warehouse Receipt - transferred on a conveyer
Receipt for product received system from one zone to the
into the warehouse. next.

Wave Picking - Method of

picking for multiple item
orders where all zones are
picked simultaneously and
the product is sorted later.
This method of picking is
often used when picking
shipments for specific
carriers so that the product
for each carrier is in the
same place and can be
sorted after it is picked.

Warehouse Management
System (WMS) - WMS is
a software designed to
function around three main
components: putaway,
replenishment, and picking.
By directing these three
components, the system
can logically manage the
movement and storage of
product in the warehouse.

Zone - Zones are locations

in the warehouse where
usage is determined by
the characteristics of the
product being stored
such as special handling,
or special inventory
management requirements.

Zone picking - Method of

order picking where the
warehouse is divided into
pick zones. Items are picked
from each zone and then

17 | Logistics Terminology