Logistics Acronyms

Logistics Acronyms

By Mohammed Ahmed GainFull container load (FCL)full container load (FCL) is anISO standardcontainer that is loaded and unloaded under the risk and account of one shipper and only one consignee. In practice, it means that the whole container is intended for one consignee.FCL is intended to designate a container loaded to its allowable maximum weight or volume, but FCL in practice onocean freightdoes not always mean a full payload or capacity.

Athird-party logistics providerAthird-party logistics provider(abbreviated3PL, or sometimesTPL) is a firm that provides service to itscustomersof outsourced (or "third party")logisticsservices for part, or all of theirsupply chain managementfunctions. Third party logistics providers typically specialize in integrated operation,warehousingandtransportationservices that can be scaled and customized to customers' needs based on market conditions and the demands and delivery service requirements for their products and materials.

heavy goods vehicleAheavy goods vehicle(also large goods vehicle,medium goods vehicle,LGVandHGV), is theEuropean Unionterm for anytruckwith agross combination mass(GCM) of over 3,500kilograms.

Distribution CenterAdistribution centerfor a set ofproductsis awarehouseor other specializedbuilding, often withrefrigerationorair conditioning, which is stocked with products (goods) to be redistributed toretailers, towholesalers, or directly to consumers.

Less-than-container loadLess-than-container load (LCL) is ashipmentthat is not large enough to fill a standardcargo container.It can also be defined as "a consignment of cargo which is inefficient to fill a shipping container. It is grouped with other consignments for the same destination in a container at a container freight station.

Electronic data interchange(EDI)Electronic data interchange(EDI) is an electronic communication method that provides standards for exchanging data via any electronic means. By adhering to the same standard, two different companies, even in two different countries, can electronically exchange documents (such as purchase orders, invoices, shipping notices, and many others).

value-added service(VAS)Avalue-added service(VAS) is a populartelecommunicationsindustry term for non-core services, or in short, all services beyond standard voice calls and fax transmissions.

Radio-frequency identification(RFID)Radio-frequency identification(RFID) is the wireless use ofelectromagnetic fieldsto transfer data, for the purposes of automatically identifying and tracking tags attached to objects.The tags contain electronically stored information.

TheInternational Standards OrganizationTheInternational Organization for Standardizationknown asISO, is aninternational standard-setting body composed of representatives from various nationalstandards organizations.Founded on 23 February 1947, the organization promotes worldwide proprietary, industrial and commercialstandards. It is headquartered inGeneva.

Global Positioning System(GPS)TheGlobal Positioning System(GPS) is a space-basedsatellite navigationsystem that provides location and time information in all weather conditions

Transshipment

Transferof ashipmentfrom onecarrier, or more commonly, from one vessel to another whereasin transit. Transshipments are usually made (1) where there is no direct air,land, or sealinkbetween theconsignor'sandconsignee'scountries, (2) where the intendedport of entryis blocked, or (3) to hide theidentityof theportorcountry of origin. Because transshipment exposes the shipment to a higherprobabilityofdamageor loss, somepurchase ordersorlettersofcreditspecificallyprohibitit. Also spelled astranshipment.Break-bulkdenoting a system of transporting cargo as separate pieces rather than in containers.

Cross-docking

Cross-dockingis a practice in the logistics of unloading materials from an incoming semi-trailer truck or railroad car and loading these materials directly into outbound trucks, trailers, or rail cars, with little or no storage in between.Order picking

Theorder pickingor order preparation operation is one of a logistic warehouse's process. It consists in taking and collecting articles in a specified quantity before shipment to satisfy customers' ordersReverse logistics

Warehousing

Awarehouseis acommercial buildingfor storage ofgoods. Warehouses are used bymanufacturers,importers,exporters,wholesalers, transportbusinesses,customs, etc. They are usually large plain buildings in industrial areas of cities, towns and villages.DWT

Deadweight tonnage(also known asdeadweight; abbreviated toDWT,D.W.T.,d.w.t., ordwt) ortons deadweight(TDW) is a measure of how muchmassa ship iscarryingor can safely carry;it does not include the weight of the ship. DWT is the sum of the weights ofcargo, fuel,fresh water,ballast water, provisions, passengers, andcrew.ULC C vs. VLCCUltra Large Crude Carriers (ULCC) are super tankers with a DWT of more than 300,000, for the transport of crude oil.Very Large Crude Carriers (VLCC) are super tankers with a DWT between 250,000 and 300,000, for the transport of crude oil.crude: raw

JIT'Just In Time - JIT'Aninventorystrategy companies employ to increase efficiency and decrease waste by receiving goods only as they are needed in the production process, thereby reducing inventory costs.