Vocabulary

3PL (Third Party Logistic Service Provider)
Fornitore di servizi logistici integrati. Si distingue dal fornitore di servizi semplice (o LSP, logistic service provider) perché offre un insieme integrato di attività, di solito contigue fra loro come ricevimento, magazzinaggio, preparazione ordini, confezionamento, trasporto e consegna finale. Un 3PL si avvale di solito di uno o più subfornitori (LSP) per le attività elementari (es. aziende di trasporto, cooperative di facchinaggio, ecc.) ma risponde direttamente al cliente del risultato complessivo anche per le attività svolte dai subfornitori.

4PL (Fourth Party Logistic Service Provider)
Fornitore di servizi logistici integrati in modalità di partnership con l’azienda cliente. Si tratta di un 3PL evoluto, con capacità superiori di tecnologia e di integrazione, che prende in mano tutta la logistica del cliente, la ristruttura ed affida poi l’esecuzione delle attività operative a subfornitori (LSP o 3PL). Risponde al cliente dei risultati complessivi ad alto livello (es. costo totale delle logistica aziendale, capitale investito in logistica, scorte incluse, ecc.).

ABC Analysis
ABC methodology, not to be confused with Activity Based Costing, is used to measure the concentration of a given phenomenon (turnover, inventory, etc.). For example, ABC analysis performed on the value of sales shows how turnover is distributed over the items handled by classifying them according to their different importance. Included in class A are materials that weigh the most on the total value of inventory and require assiduous control, class B are items that need periodic control, and class C are those that can be managed with simpler procedures.

ABC Costing (Activity Based Costing)
Costing method used to measure and allocate indirect costs to products, services, and customers. ABC is based on the idea that products or services do not consume resources, other than those that are directly attributable (materials, external processing, direct labor), but rather consume activities (scheduling, set-up, quality control, physical and accounting movements, etc.); instead, it is activities that consume resources. Therefore, the ABC technique first assigns resource costs to the activities performed by the firm; then activity costs are assigned to the products, customers, and services that benefit from or generate demand for those activities. Acting on improving the company’s income statement by reducing costs will be easier.

Access Index (AI)
In the case of allocation by dedicated spaces, it is equal to the ratio of the handling index to the pallet spaces allocated to the particular item; while in the case of allocation by shared zones, it is given by the ratio of the handling index to the average pallet spaces occupied.

ACR (All-Commodity Rate).
Single rate for all commodities handled (e.g., for a port operation, transportation, etc.).

ADR
European Agreement concerning the International Carriage of Dangerous Goods by Road. By extension, we speak of “ADR product,” “ADR transport,” “ADR storage,” etc., when dealing with products that fall under the regulations of the mentioned ADR agreement.

AGVS
Automated guided vehicle transport system. Driverless vehicles equipped with automatic driving devices that follow a defined route, stopping at each processing or assembly station for automatic or manual loading and unloading of parts.

Air Way Bill (AWB)
Air way bill

Airtruck
Airport-to-airport road transportation of unitized cargo on air cargo units (pallets and containers).

All Risk
All-risk policies cover all types of risks not expressly excluded from the policy itself.

Amplification of Effects (Bull Whip Effect)
The scheduled instability that is generated in a supply chain due to the amplification of demand fluctuations at the time of order processing.

Areas used for Transportation Activities
Operational pertinences and other assets needed for the transportation activity.

ASRS (Automatic Storage and Retrieval System)
Automated system of storage and retrieval of goods, the system involves high initial investment, on the other hand the handling potential increases considerably.

Assigned Port
Clause in the contract of sale and purchase that assigns to the consignee the burden of payment of transportation costs to the carrier.

Assortment
Set of references managed in a given warehouse, the composition of which is the result of precise market choices.

ATO (Assembly To Order)
Type of manufacturing in which components or subassemblies are assembled and customized only upon receipt of the customer’s order.

Auto ID (Automatic Identification)
Mode of identifying a code by a machine (and entering the data automatically into a computer). The most widely used technology at present is the bar code.

Balanced Scorecard
A measurement and management system that interprets a company’s performance from four different perspectives: economic-financial, customer satisfaction, internal business process performance, and organizational learning and skills growth.

Barcode
A barcode is a symbology or alphabet for encoding information in a format that can be automatically acquired by appropriate readers.

Batch Picking
Mode of picking in which the mission of individual pickers is to fulfill a batch of complete orders or a batch of fractions of orders.

Bay
A horizontal platform, minimum height compatible with pallet trucks and/or forklifts and/or handling equipment. Used as a support for assembling, handling and transporting goods and loads.

Belt Loading Floor
This is a type of conveyor belt built into the loading floor with which pallets and other heavy objects are moved within the vehicle’s cargo area.

Bill of Entry
Document prepared in-house, on paper or digital, used as a control medium by receivers and serving as evidence that goods have been loaded, in the quality and quantity actually delivered by the supplier.

Bill of Lading
Document certifying the entry of a given quantity of goods into a warehouse.

Bill of Materials (BOM)
List of all parts, subassemblies, and raw materials that make up a particular assembly, indicating the quantities required by each.

Blank Loading List
A loading list that contains no specification as to the apparent order and condition of the goods to be transported (Hague Rules).

Bonded Warehouse
A warehouse that operates on behalf of a third party and is capable of holding a consignment of goods left as collateral by the owner in exchange for financing or delivered while waiting for the buyer to produce the necessary documentation.

Booking Notes
Confirm reserved space on ship.

Broken Stock
Absence of the product at the desired time (in time and place), from the production stage (stock breakage in raw materials) to distribution to the final customer (stock breakage on the shelf).

Buffer Stock
Quantity of raw materials, semi-finished or finished goods kept available in case of discontinuity in supply.

Bulk
Term used to describe unpackaged goods such as commodities (e.g., coal, grain, kaolin, oil, etc.) that may be solid (dry-bulk) or liquid (liquid-bulk).

Bulk Carrier
Ship for solid remelts, for liquid remelts the term tanker is preferred.

Business to Business (B2B)
Set of online business transactions between companies. Electronic commerce that is concerned with transactions between companies, and not those between a company and an end consumer (e.g., sending, processing, and fulfilling orders between a manufacturer and its distributors).

Business to Consumer (B2C)
Set of online business transactions between businesses and final consumers. Electronic Commerce concerned with transactions between a business and its end consumers (e.g., the ability to purchase consumer products from a “virtual supermarket”).

Caged
Metal structure, consisting of a base and two “shoulders,” which is applied to pallets to better ensure load stability during picking and shipping.

Cargo Aircraft
Aircraft intended for the exclusive transport of cargo and mail.

Cargo Building
Building where an air cargo handler operates.

Cargo Capacity
Total volume of a vehicle’s cargo area. It’s expressed in cubic meters or liters. The indication of the three linear measurements (height, length and width) is useful for its better understanding and evaluation.

Carousel
Mode of picking used in automated warehouses, which involves sliding pallets containing goods on rollers in front of pickers.

Carriage and Insurance Paid To (CIP)
The seller has the same obligations under the CPT term with the added burden of having to provide insurance against the buyer’s risk of loss or damage to the goods during transportation.

Carriage Paid To (CPT)
The seller must pay the price (freight/port) related to the carriage of the goods to the agreed destination. The risk of loss or damage to the goods, transfers from the seller to the buyer at the time the goods have been delivered.

Cash on Delivery
Payment of goods on delivery.

Central Purchasing Center
Grouping of signs that negotiates with suppliers the purchasing conditions that will be applied to all its members.

Clean Bill of Lading
Bill of lading that contains no pejorative notations about the condition of the cargo.

Clean on Board
Occurs when the goods have been loaded on board the ship and the document issued is clean (without additional pejorative notations on the condition of the cargo).

Clearing House
Service provider that operates in the same manner as a mail container: uploads data and stores it until the recipient is ready to receive it.

Co-Loading
The loading of goods on the same vehicle-container together with other goods having the same destination.

Co-Packing
Activities such as packaging, wrapping, labeling, performed on behalf of a principal, food industry or large retailer.

Cold Chain
Set of steps (production, storage, transport and marketing) that frozen products must go through in order to reach their final destination intact without suffering irreparable changes in quality. Provides for and ensures that the level of cold is maintained and preserved throughout all stages of the distribution process, from transport to storage, as well as allocation at the point of sale or at the facilities for which the product is intended until consumption. The temperature at which the product should be maintained should not exceed 20 degrees Celsius. This chain includes all products subject to refrigeration with a predetermined temperature (livestock and agricultural products).

Collect Freight
Freight payable at destination (generally used for ocean freight).

Collective Shipment
Goods of different types transported on behalf of multiple customers in a single vehicle.

Combi
An aircraft used to transport passengers and cargo.

Combined Transport
Intermodal transport where most of the journey is by rail or sea, while the initial and/or terminal routes are by road.

Combined Transport Bill of Lading
Bill of lading issued when the total transport is carried out, not only by ship, but also by other means such as rail and truck.

Combined Transport Document (CTD)
Negotiable or nonnegotiable document evidencing a contract for the performance and/or supply of combined transportation services of goods.

Commodity Box Rate
Freight rate classified by commodity type, but charged per full container.

Community Customs Territory
Territory underlying the application of the Community Customs Code, not coinciding with the sum of the territories on which the sovereignty of the Member States, being in fact provided for exclusions of zones belonging to the various national territories and, on the other hand, inclusion of territories which are not part of the Member States. Community customs legislation shall be applied compulsorily and uniformly.

Consignment Stock
Quantity of goods, maintained by a customer, still owned by the supplier, for which payment will occur only when those goods are sold or used.

Container
Stackable cargo unit for intermodal transportation of goods. The Institute of Standardization Organization (ISO) has established four main sizes (10, 20, 30 and 40 feet) that differ in length. There are various types of containers: air, sea, land, large and very large capacity.

Container List
Document specifying the contents of particular cargo containers or other transport units, prepared by the party responsible for loading in the container for the unit.

Continuous Replenishment
System of supplying a store directly from the manufacturer, with the objective of maintaining the distributor`s stock at a minimum safe level.

Contractor
Company or individual person who performs a service on behalf of third parties, upon payment of a certain fee, such as hourly cost for the person, kilometre cost for vehicles, cost per square meter for storage etc.

Conventional Ship
Ship that can load any cargo.

Cost and Freight (CFR)
The seller fulfills his obligation to deliver at the time the goods have passed the ship’s broadside at the agreed port of embarkation. The seller shall bear all expenses necessary to transport the goods to the named port of destination, but the risk of loss of or damage to the goods, as well as any additional expenses due to events occurring after the goods have been delivered on board the ship, shall be transferred from the seller to the buyer from the time the goods have passed the ship’s broadside at the port of embarkation. In the CFR term, customs clearance of export goods is the responsibility of the seller. This term can only be used in the case of sea or inland waterway transportation.

Cost-Benefit Analysis (CBA)
A method of economic analysis of the feasibility of investments in land intervention projects and works whose implementation entails significant impacts on the economic and social system affected by it.

Cost Driver
Term meaning “cost determinant,” i.e., cause of cost or its behavior. One of the best known cost drivers is production volume, but complexity or variety can be equally important determinants of cost.

Cost Insurance Freight (CIF)
A commodity return clause that includes the costs of transportation and insurance to the port of destination. The following return clauses are assimilated to the CIF category: D.D.P. (Delivered Duty Paid at agreed destination); D.D.U. (Delivered Duty Unpaid at agreed destination); D.E.Q. (Delivered dock cleared at the agreed port of destination); D.E.S. (Delivered ex ship at the agreed port of destination); D.A.F. (Delivered frontier, if border of importing country is meant); C.I.P. (Carriage and insurance paid to the agreed place of destination); C.P.T. (Carriage paid to the agreed place of destination); C.F.R. (Cost and freight paid to the agreed port of destination).

Courier
Operator engaged in groupage transportation of goods on fixed routes regionally or nationally.

Cross Docking
Point in the logistics chain where goods arrive to be ventilated (breaking of the loading unit). In cross docking, no storage takes place. Cross docking is a very frequent case, typical in the distribution of food products and especially perishable products (dairy products, vegetables, fruits).

Customer Relationship Management (CRM)
Organization for managing customer and potential relationships, both in pre-sales and during delivery or fulfillment of services.

Customer Service
Business function that performs activities to satisfy the customer: handling orders, invoicing, handling returns, complaints, and communicating with the customer. Responsibility for this is typically assigned to a dedicated business function.

Customs Agent
Natural person, registered in a register, authorized to represent third parties in customs matters.

Customs Areas
All premises in which any customs service operates and all areas in which customs permanently or temporarily supervises and controls (also industrial establishments, freight forwarders’ warehouses where customs officials are located to carry out customs operations).

Customs Regime
Term indicating the outcome of goods. The types are: release for free circulation, transit customs warehouse, inward processing, processing under customs control, temporary admission, outward processing, export.

Dangerous Goods Declaration
A document issued by a shipper in accordance with the application of conventions and regulations, describing goods or materials that are hazardous for the purposes of transportation, and establishing that they have been packaged and labeled in accordance with the regulations.

Database Management System (DBMS)
Software set up to store and manage data.

Days of Coverage
Ratio of average stock to average daily consumption. Indicates the autonomy time of the warehouse and the average time the goods are in stock, i.e., crossing time.

Dedicated Zones (Class Based Storage)
Logic of physical allocation of the U.d.C. according to which the storage area is divided into zones, each area is dedicated a predetermined class of items.

Degree of Stock Coverage
Probability that a stock-out will not occur during the replenishment lead time.

Dégroupage
Logistical operation of dispersing packages in the direction of multiple delivery points.

Delivered at Frontier (DAF)
The seller fulfills the delivery obligation by making the goods available to the buyer at the agreed place and point at the frontier, but before the customs border of the neighboring country. The seller has the obligation to clear the goods for export, but not for import.

Delivered Duty Unpaid (DDU)
The seller fulfills the obligation to deliver by making the goods available to the buyer at the agreed place in the country of destination. The seller must bear the risks and expenses of having the goods agreed upon at that place. Not to be borne by the seller are customs “practices,” and thus the duties and other charges to which the goods are subject for importation into the country of destination, the expenses and risks of carrying out customs formalities. All customs paperwork is the responsibility of the buyer, who must also bear the additional expenses of the risks if he fails to clear the goods for import in due time.

Delivering Carrier
The carrier that physically transports the goods.

Delivery Date
The date on which delivery to a customer takes place, the date on which the procured goods are received.

Delivery Duty Paid (DDP)
The seller makes available the goods, cleared for import and not unloaded from the vehicle, at the place of destination. The seller must bear all risks and expenses related to transportation to the agreed place and also all charges and risks associated with the completion of customs formalities at import. The seller does not bear the burden of unloading the goods from the means by which they were transported to the agreed place of destination.

Delivery Instructions
A document issued by a buyer giving instructions regarding the details of delivery of goods ordered.

Delivery Time
All conditions agreed between freight forwarder and customer regarding the delivery of goods and/or services.

Dependent System
Logic of safety stock (SS) allocation in a two-tier distribution network according to which SS is all stored in peripheral warehouses.

Depositary Trust
Title representing ownership of goods stored at general warehouses.

Direct Delivery
The transportation of goods directly from the seller to the buyer. Frequently used if a third party acts as an intermediary between seller and buyer.

Direct Shipment
Direct shipment from the supplier to the end customer, without passing from platform, own or logistics provider.

Dispatch
Identifiable quantity of goods (ready to be) sent by a consignor to a consignee via one or more modes of transport and specified in a single transport document.

Distribution Center
Varied facility of varying capacity for receiving, storing and delivering goods to stores.

Dock
Space around entry or exit doors in which packages or pallets of goods are placed, either arriving, awaiting allocation, or departing, awaiting loading onto the transport vehicle.

Double-Sided Forklift
Forklifts used for pallet handling, the special feature of which is the ability to handle pallets perpendicular to the direction of travel (both left and right).

E.T.A.
Expected time arrival

E.T.D.
Expected time departure

E-commerce
Electronic commerce. Type of transaction tending to sell or buy a product or service, in which the parties interact electronically through the Internet.

E-logistics
Includes management and fulfillment activities concerning the management of the entire order cycle, supply management, stock and warehouse management, shipment management, payment management, and returns management.

Economic Order Quantity (EOQ)
It is an inventory management model that defines the optimal purchase quantity so as to minimize the sum of procurement costs (buying and ordering) and inventory holding costs.

EDI
Transfer of information between computers using a computer connection. It is based on international communication standards but does not use Web technologies. It allows the sender to generate documents according to its own requirements and formats, and the recipient to use them according to its own, without having to re-enter data into the information system.

EDIFACT
Electronic Data Interchange For Administration Commerce and Transportation, it defines the syntax for electronic data transmission.

Efficient Consumer Response (ECR)
Efficient Consumer Response. Method for seeking efficiency in responding to consumer needs, used by manufacturers and distributors and based on sharing information on cost structure. It is based on computer-based data exchanges (EDI) and is part of the logic of partnership among supply chain actors.

Enterprise Resource Planning (ERP)
Enterprise management information system that integrates all aspects of the business, from planning to production, from sales to marketing.

Equal Time Supply (ETS)
Picking area replenishment logic in which the same frequency is adopted for all items. Each item is assigned a picking volume proportional to its flow expressed in cubic meters.

ESS (Equal Space Supply)
Picking area replenishment logic according to which each item is assigned the same picking volume. The replenishment frequency results proportional to the flow of each item expressed in cubic meters.

Excise Tax
Indirect tax imposed by the state on certain products (alcohol, fuel, etc.). It takes the form of a manufacturing or consumption tax and is paid to the state by the producer or marketer, who recharges it on the selling price of the product.

Express Courier (express courier or integrator)
Large transportation company, usually operating continent-wide or worldwide, whose typical service is door-to-door transportation of parcels and small packages. Recent developments in the activities of such companies have extended their operations into increasingly important areas of universal postal services and integrated logistics services, where it is essential to have, sometimes in real time, information on the location of goods, especially for JIT management. The activity is normally carried out by integrating local services, carried out by road, with international and intercontinental services, carried out by air, usually with owned aircraft.

EXW (Ex Work)
In the term “ex work,” the seller fulfills his delivery obligation by making the goods available to the buyer at his premises. Unless otherwise agreed, the seller is not required to clear the goods for export or to load them onto the means of transport provided by the buyer. Therefore, the buyer must bear all expenses and risks in bringing the goods from the seller’s premises to the desired destination.

FCA (Free Carrier)
The FCA notation must be supplemented by the specific indication of a location. It binds the seller to prepare goods on the agreed date, providing the appropriate documentation for export from the nation of origin, delivery at the warehouse of the freight forwarder (or other entity chosen by the buyer), and payment of the costs related to the export customs operation. The buyer, for his part, will arrange the transportation and pay all the costs, while also taking all the risks up to the final destination.

Feeder Vessel
Attribute of those container ships, having limited tonnage, that carry out transportation between large transhipment ports (hubs) and inland distribution ports.

First-In First-Out (FIFO)
Method of inventory valuation based on the concept that the oldest materials are the first to be used.

FMCG (Fast Moving Consumer Goods)
These are consumer goods, these products have a high turnover and a relatively low cost.

Forklift
Frame, stand or device mounted on wheels, driven by hand or motor or towed by trailer, used to transport materials.

Forward Reserve Problem (FRP)
Problem concerning the identification of items to be placed in the picking area, the determination of the receptive potential of this area, and the allocation of the available volume of the picking area among the different items.

Forwarder
Operator who organises the loading and dispatch in his own name and on behalf of third parties. In some cases it owns means and also carries out carrier activities without this being its main activity.

FPO (Fast Perfect Order)
Orders fulfilled complete and on time with respect to the delivery date.

Fractionation (in transportation
Part of the transportation capacity allocated to one party, e.g., shipper or agent, for booking a carrier for a specific trip.

Free Arrival (Free Destination)
Contractual clause in the transport documents regarding delivery conditions. Shipping risks and costs are borne by the supplier until destination.

Free Departure (Ex Works)
Contractual clause in the transport documents concerning delivery conditions. Risks and shipping costs are borne by the customer from departure.

Free On Track (FOT)
Free On Truck. Contractual clause in international transportation documents regarding delivery terms. The risks and costs of shipment are borne by the supplier until the goods are loaded onto the truck.

Free Port
Clause in the contract of sale and purchase that exempts the consignee from the carrier’s freight charges.

Free Zone
Area where goods can be stored without payment of taxes until shipment.

Freight Center
Point infrastructure usually comprising a rail junction, facilities for haulers and forwarders, and warehouses for handling and storing goods. Multiple operators are concentrated in the freight center to take advantage of proximity and integrate activities. These are facilities designed for intermodal transport, operated by private individuals and tend to change their names by borrowing those of other higher-ranking facilities.

Freight Elevator
Hydraulically or electrically operated loading platform, usually mounted on the rear of a vehicle, that makes loading and unloading easier. Lift platforms are also currently mounted on the side and inside the cargo area.

Front-Mounted Trolley
Crane truck with front equipment that allows lifting and stacking containers and swap bodies.

Full Container Load (FCL)
Definition of transportation performed through the use of a full container.

General Order Warehouse
Customs warehouse where goods, if not claimed within five days, are shipped back at the owner’s expense.

Groupage
Logistical operation that allows goods having the same destination but coming from different places/transporters to be brought together in one transport.

Half container
Low-sided container loadable up to 1.10 m.

Handling
Set of operations and services auxiliary to freight transport related to the handling of goods; loading and unloading of goods are always part of this category.

Haul
Distance traveled in transportation (Long Haul = long distance; Short Haul = short distance).

Haulage/Paper Transport
The road transport of a load between defined points.

Hub
Central point for collection, sorting and distribution for a particular region or geographic area. Usually has an international character.

Hub port
Ocean traffic terminal that does not require direct connections to the land system because it operates transshipment (transhipment or sea-to-sea traffic) from mother container ships to feeder shuttles bound for various local destinations.

Huckepack
Rail service that allows the trailer and possibly the tractor to be loaded onto special low-floor cars.

Import-Export
Activities of companies involved in importing and exporting batches of goods.

Inbound logistics
Logistics process involving the flow of products from supplier to manufacturing plant.

Incoterms
Set of international rules, issued by the International Chamber of Commerce, for the interpretation of shipping terms used in foreign trade contracts. Incoterms define the rights and obligations of the supplier and the customer.

Independent System
Logic of allocation of the emergency supplyes in a distributive net to two levels second according to which the SS they are all stored partly in the peripheral warehouses and in the central warehouse.

Industrial Logistics
Process of planning, implementing and controlling the efficient and effective flow and storage of raw materials, semi-finished and finished products and related information from the point of origin to the point of consumption, with the aim of meeting customer needs (Council of Logistics Management definition). Logistics includes both the area of material management and physical distribution.

Industrial Port
It is related to the production activity of an industry.

Integrated Logistics
The term indicates the evolution of industrial logistics, where the concept of integration is intended to emphasize that we are not referring to the sum total of traditional activities (order management, transportation, warehousing, etc.), but to a managerial approach aimed at systemically optimizing the entire logistics chain.

Intermodal Terminal
It has the function of transferring the loading units between the means of transport and must present adequate areas, sized and structured for the parking of the vehicles and for the handling of both vehicles and cargo units (semi-trailers, swap bodies, containers).

Intermodal Transport
Transfer of goods using several modes of transport (rail, road, air, water) but with the same unit of load, be it a road vehicle or an intermodal transport unit, without breaking the load.

Interporto
Large infrastructure that, in addition to concretely enabling combined and intermodal transport, offers a quantity of services related to the handling and processing of goods. It must be equipped with a rail yard, a customs office, warehouses and facilities to connect with the road network, ports and airports in a given geographical area.

Inventory
Simple operation designed to ensure that goods in the warehouse are kept in good condition.

Inventory Holding Costs
The total cost associated with inventory holding. These costs consist of unit cost, reorder cost, management cost, and stock-out cost.

Inventory Management
Planning and control of inventories, in relation to their quantity, quality and placement.

Inventory Value
Inventory value at cost or market value. Inventory value is usually calculated on a First In First Out (FIFO), a Last In First Out (LIFO) or an average cost basis or an average value of inventory present.

Item
Single stock item that is distinguished from other similar products by at least one character (weight, shape, price, etc.), distinguished by its own name or code. It has a specific “record” in the master file containing all related characteristics.

ITU
Intermodal transport units, namely containers, swap bodies and semi-trailers

Just in Time
Industrial organization of production methods whereby components are produced and delivered following immediate assembly needs. Tends toward maximum reduction of inventory. In practice, it translates into the organizational ability of the upstream enterprise to hold a safety stock in order to be able to have a product available at the time desired by the downstream user.

Kitting
It is the process of kit preparation.

KPI (Key Performance Indicator)
Performance indicators are numbers or ratios that indicate the effectiveness and/or efficiency of part or all of a process compared with a predetermined objective. They measure the state of a process over time and help verify the current condition of the activity, change the trend, and find the starting point for subsequent improvements.

Landbridge Service
Transport of containers from one port to another, located in a different nation, and from there by rail to another port in the same nation where it is finally loaded onto a container ship for final destination.

Lash Ship (Lighter abroad ship)
Vessels used to transport sea barges that can be disembarked or embarked from the ship by means of gantry cranes installed on the ship, thus without the use of port equipment.

Last-In First-Out (LIFO)
Inventory valuation system. The concept is that the last merchandise to arrive is the first to leave.

Layout
A term used to refer to the display sequence of products, within a warehouse or store.

LCL (Less than Container Load)
A container filled for the account and risk of the carrier. For operational tasks, an LCL is considered a container in which multiple deliveries or parts are loaded.

Lead Time
Is the required period of time to obtain the ordered goods. Several configurations of lead time can be identified: cumulative, purchasing, procurement, assembly, production, replenishment, and safety. Lurking in lead time are downtime (the waiting), dysfunctions (misinterpretations of orders given by management), internal conflicts between company organs, failures not repaired in a timely manner: negative factors to be discovered and eliminated.

Lean Production
Concept based on the goal of reducing the complexities of production processes.

Legal Weight
Weight of the good including packaging.

Load
Can be of three types: full, drop (partial), groupage (some pallets).

Load Unit (UDC)
Generic term for loading modules used for transport. Three levels are identified: single neck (first level), pallet and similar supports (second level), container, mobile case and semi-trailer (third level).

Loading Platform
Possibly made with a particularly low loading level and/or with side rails. In this type of set-up there is always a partition panel immediately behind the cab that prevents the load from sliding forward; the rear and side rails are usually foldable to facilitate loading and unloading.

Logistics
Global management of flows, both physical and information. Physical flows can be of raw materials (supply logistics), semi-finished goods (industrial logistics) and finished goods (distribution logistics).

Logistics Channel
Set of resources and facilities suitable for enabling the physical flow of goods and information from manufacturers to customers and vice versa (recovery of packaging and discarded products, after-sales technical support).

Logistics District
Concentration of enterprises and infrastructure for the provision of integrated, multimodal logistics services oriented to different sectors.

Logistics Flow
Set of materials and information exchanged within the Supply Chain, from suppliers to end customers, through procurement, production and distribution activities.

Logistics Manager
New professional figure who possesses skills in logistics, production and sales, and is responsible for managing and optimizing the physical and information flows in and out of the company. He or she therefore performs coordination activities, with managerial, organizational, financial and management functions. For those working in small companies, an industrial expert diploma may be sufficient; in larger companies, the logistics manager is usually an engineer or an economics and business graduate.

Logistics Operator
The logistics operator is able to propose solutions for managing the flow of goods from origin to destination, choosing the most suitable forms of warehousing and combining means of transport appropriately.

Logistics Platforms
Infrastructure where advanced logistics services are implemented. Located in catchment areas where demand for logistics services is concentrated, they are designed to meet the needs of operators offering outsourced logistics services, as well as companies that produce or market goods and perform these services themselves. They are therefore places of processing (quasi-manufacturing) and handling capable of generating high added value to goods.

Logistics Provider
A firm that offers a set of services, combining simple transportation with warehousing and flow management services, both physical and informational.

Logistics Service Center
A public or private facility, equipped with networked computer and telematic tools and technologies, which is established to meet the specific logistics-information and training needs of a community, business, district, or geographic area.

Low Order Wagon
Low-order rail wagon, compared to the standard height d1 1175 mm on the rail level, suitable for loading the highest intermodal transport units while equally respecting the rail line gabarit.

LTL (Less than Truck Load)
Term used if the quantity (weight or volume) of one or more lots of goods does not saturate the capacity of the standard means of transport (truck).

Make to Order
Production to customer order and order fulfillment directly from the factory.

Make to Stock
Production for warehouse and fulfillment of customer orders from stock availability of products.

Manpower
Set of people used in handling operations within distribution centers or stores. It is defined as direct when its size is directly proportional to the volumes of goods to be handled.

Miniload
Automated warehouse served by stacker cranes for small unit loads.

Mobile ramp
Equipment that allows a road vehicle to get on or off a wagon or ship by its own means.

Multi-Criteria Analysis
Extension of cost-benefit analysis useful for assessing all relevant impacts of a project and in particular those that are difficult to monetize (e.g., social equity and environmental impacts).

Multimodal Transport Operator (MTO)
Multimodal transport operator, i.e., a company under whose responsibility transportation is carried out using different modes and means.

Net Tare Weight
The weight of an empty container excluding the weight of the goods in it.

Open Top Container
A container equipped with a solid removable roof or canvas top so it can be loaded or unloaded from above.

Order
Disposition addressed to a supplier, by means of paper or electronic medium, for the request of a specific quantity of one or more products on which the previously agreed commercial terms are recalled.

Order Form
This is a form to be filled out on the Web to place a purchase order.

Order Picking
Mode of picking in which the mission of individual operators is to fulfill a complete order or a fraction of an order.

Outsourcing Logistic
Process through which companies assign to outside suppliers, for a contractually defined period, the management of one or more logistics functions or sets of logistics activities. Such an arrangement may provide, for example, that an outside company (3PL) picks up the goods produced from the customer’s plants, stores them and sends them directly to the points of sale or to the end customers specified by the customer, taking care of all administrative, customs, transportation and storage aspects.

Outward Handling (Handling-out)
Operations performed on outgoing goods, accounting or physical, which may be carried out from the time of order placement to the actual time of goods departure.

Package
Top-level cargo unit below which, that is, it is not convenient to go down in the logistics environment, in both storage and handling. It corresponds to objects of various kinds.

Packaging
Set of elements and materials used to package a product in order to make it more attractive, more recognizable, or to facilitate its transport and use.

Packing List
List indicating the contents of a container.

Padroncini
Term defining very small trucking companies, usually consisting of the driver-owner of a vehicle.

Pallet
Wooden base (usually) on which packages are stacked to facilitate loading, unloading, and storage. May be two-way or four-way, depending on whether it can be forked on two sides or all four. dimensions vary widely: the official ones are those of the Europallet (120 x 80cm) and those of the ISO pallet (100 x 120 cm).

Pallet Template
Structure placed astride a roller conveyor as it enters an automated warehouse to check the dimensions of incoming pallets for correctness. If the dimensions exceed the prescribed limits, the pallets are discarded.

Pallet Truck
Means of internal handling with or without electric motor used for picking, which can simultaneously transport one or two cages or two or three roll containers, depending on whether it is equipped with “short fork” or “long fork”.

Payload Capacity
Maximum load that can be carried by the vehicle, expressed either in kilograms or in number of passengers. Established at type approval on the basis of dimensional and safety considerations, it is indicated on the registration certificate.

Physical Allocation of ULD (Unit Load Device)
See Dedicated Zones, Picking Zones, Dedicated Places and Shared Places.

Picking
Physical composition of the order (preparation).

Picking List
Picking list of parcels of goods aimed at the preparation of an order.

Picking Sector
Set of aisles contiguous to a depot, within which seamless picking is carried out for the main purpose of making it possible in parallel for individual or group outlets.

Picking Zone
Picking system divided into areas manned by different operators whose primary objective is the physical preparation of the order

Pickup
The process of taking from stock finished goods to be shipped to customers or components to manufacture products.

Piggyback
Transport of semi-trailers loaded on railroad flatbeds (combined road-rail).

Place of Acceptance
The place where a delivery is received by the carrier.

Place of Boarding
Place where a traveler takes a seat in a vehicle to be transported by it.

Place of Disembarkation
Place where a traveler leaves the vehicle from which he or she was transported.

Place of Loading
Place where animals or things are loaded onto a vehicle to be transported.

Place of Unloading
Place where animals or things are unloaded from the vehicle in which they were transported.

Platform
Surface where goods transit to be organized for delivery. Here you can change the transport carrier, the size of the exchange unit, add tangible and intangible services. In the platform there is no stock, its purpose is to allow groupage and dégroupage operations.

Port
Transportation infrastructure intended for the fulfillment of operations inherent in the conduct of maritime traffic.

Primary Packaging
Packaging designed to constitute, at the point of sale, a sales unit for the end customer or consumer. Possible examples include: boxes, cases, bags, blisters, jars, bottles, bottles, jars, cans, and drums.

Procurement
Activity that ensures the availability of materials to the user, in the desired quantity, quality, place and time.

Production Allocation
The allocation to different plants of the types and quantities to be produced of a range of products.

Production Lead Time
The time required to produce a good from the time the order is received until the item is available to be packaged.

Quarantine
A restriction placed on an operation to protect the public from a health hazard. A vessel can be quarantined so that it cannot leave a protected point. During the quarantine period the Q indicator is raised.

Quarantine Stock
Stock available for sanitary needs.

Reach Truck
Carts used for handling pallets, the special feature of which is the retractable mast, this gives it the ability to handle pallets in aisles at least 2.7 meters wide.

Recipient
The party described in the transport document to whom the goods are to be delivered.

Reorder Level
Level of quantity in stock that is controlled by the issuance of an order. The reorder level is usually calculated by considering demand during lead time and safety stock.

Repackaging/Reconditioning
All activities for the purpose of restoring and/or modifying the packaging of a product: the packaging is to be adjusted so that it can be delivered to the customer in the proper form (the removal of labels and tags, re-packing into smaller packages).

Return (Route)
Mode of travel through the picking area according to which the operator enters the aisles in which he is to make picks and travels through each aisle to the furthest pick position, returns and exits on the same connecting aisle from which he entered.

Return Receipt
Transportation document drawn up for a defined person, to order or bearer, signed by the carrier and delivered to the sender after receipt of the goods.

Reverse Logistics
Managing the return flow of materials (returns, packaging, hazardous waste) from customers to suppliers or to appropriately arranged collection centers in a way that simultaneously achieves economies and respect for the environment.

RFID (Radio Frequency Identification Device)
Technological evolution of the bar code, as it does not require physical contact. Using radio waves, data not visible to the human eye can be read and written on an RF Tag. In addition, in some cases the tags can be read from a considerable distance.

Roller Table
Supporting support for a series of rollers, either idle or motorized, on which pallets slide in or out of an automated warehouse.

Saturation
Level of occupancy of a facility or equipment, usually expressed as a percentage, which must tend to the maximum in order to optimize its use.

Scope
Complex of weights that a vehicle can carry; expressed in metric tons. With reference to a ship, it is called gross carrying capacity when it includes all moving weights, none excluded, that the ship can take on board, and net carrying capacity when it includes only paying weights (cargo and passengers).

Secondary Packaging
Packaging designed in such a way as to constitute, at the point of sale, the grouping of a certain number of sales units, regardless of whether it is sold as such to the end user, or only serves to facilitate shelf replenishment at the point of sale, can be removed from the product without altering its characteristics. Possible examples are: cartons, bundles, trays, baskets and crates.

Shelf Life
The maximum time for which an item can be stored before use.

Shipper
Shipper Individual or company that prepares a loading list on the basis of which a carrier transports goods from one place to another.

Shipping Costs
Costs incurred by the shipper in moving goods, from one place to another under the terms of the transportation contract. In addition to transportation costs, this may include items such as packing, documentation, loading, unloading, etc.

Shipping Document
A document prepared by the shipper and including a contract of carriage. It contains details of the goods to be transported and is signed by the land carrier as an acknowledgement of receipt.

Shipping Time
All conditions agreed (or to be agreed) between a carrier and a freight forwarder/recipient regarding the type of shipment and the charges due to the carrier and whether they are prepaid or collected.

Shrinkage
The decline in inventory quantities over time due to loss or theft.

Shuttle
Freight shuttle trains that travel without intermediate stops between two stops at a speed of 120 km/h.

Slot (Cell)
The cell of a ship designed for the loading of containers, swap bodies and semi-trailers. In airport language, however, a slot, also called slot, is the scheduled time of arrival or departure, on an assigned date, of an air movement at a given airport.

Slot Charter
Allocation of the capacity of the hold of a vessel between appropriately agreed companies.

Sorting
System of preparation of the goods, used in the warehouses to transit that it previews the immediate distribution of the goods delivered from the suppliers in appropriate plots or “places market” and its shipment to the interested points of sale.

Stack
A method of stocking goods that does not involve the use of racking; in fact, ULD are simply stacked on the ground.

Stock Differences or Discrepancies
The difference between the actual stock held and the calculated or recorded stock.

Stock Keeping Unit (SKU)
Indivisible minimum unit of stock.

Stock Level
Amount of stock present at the warehouse, which may be expressed by quantity, by parcels, by weight, by pallets or by value, or in weeks of sale, dividing the relative amount by the average weekly output.

Stock Location System (SLS)
System where all locations in a warehouse are identified so as to facilitate storage and tracking of stock.

Stock Rotation Index
Expresses the degree and time of inventory immobilization; it is a tool to solve the problem of stock sizing (optimal stock). The “value-based” inventory turnover ratio is derived from the following ratio: cost of sales/ inventories. The “quantity-based” inventory turnover ratio arises from the following ratio: quantity exited/average stock.

Stopover
A marshalling yard or part of a facility mostly dedicated to freight service, shunting activities, parking and storage of rail vehicles.

Stowage
Loading/unloading of goods in/from an intermodal transport loading unit

Swap Body
Used in intermodal transportation. Transport unit similar to a container but with different dimensions (width 2.50 m; height 2.62; length 7.15, 12.50, 13.60 m).

Tarpaulin Sides
Plastic tarps placed on tractor or trailer, with strong but soft water-proof sides that can be retracted, or raised, to allow side access.

TC
Combined road-rail transport.

TCPC (Transport Combined Position Container)
Land positioning of containers using rail.

TCSM (Transport Combined Sea Means)
Combined road-sea transport.

Tertiary
Provision of logistics services by a third party organisation.

Three-Sided Forklift
Carts used for pallet handling, the special feature of which is the ability to handle pallets perpendicularly and vertically to the direction of travel.

Traceability
Identification of the goods and materials used in the manufacture or production process in order to highlight the link of the materials with the production batch and to trace in case of subsequent defects.

Track and Tracing
Logistics traceability and monitoring of goods.

Tracing: tracking, intended as a continuous or on-demand verification of the location of a vehicle, transport unit or goods in general.

Tracking: indication of a route for a vehicle, a transport unit or for goods in general.

Tractor-Trailer
Vehicle consisting of tractor and semitrailer. The maximum length allowed in most European countries is 16.50 m, height 4 m and weight 40 t for the 4-axle type, 44 for the 5-axle type and above.

Trailer
Vehicle without an engine (excluding a semi-trailer) intended to be hitched to a motor vehicle.

Trailer truck
Truck with a trailer intended for the transport of goods.

Trainship
Combined sea-iron transport.

Transit Point
Areas and warehouses where flows of goods from different origins transit, without deposit, to be addressed to different destinations.

Transport Declaration
Transport declaration Document used for road transport, showing the loading list on the vehicle, and referring to attached copies of the delivery note.

Transportation Center
Buildings and facilities related to goods transportation services, for example, transshipment equipment serving a number of transportation companies. A transportation center is often owned and operated by several companies that use it.

Transportation Contract
Contract by which one party, called a carrier, undertakes to transfer things from one place to another, within a specified time stipulated in the contract and for a fee. The carrier performs the transportation on behalf of one person (sender) and undertakes to deliver the things to another person (consignee).

Transportation Document
Transportation or delivery document. Replaces the bill of lading and may be omitted if the goods travel together with the relevant invoices.

Transportation Service
Activity of carrying out transportation. This includes service provided to oneself (private vehicular movement).

ULD (Unit Load Device)
In air transport, the goods are almost always united in containers called ULD, some of these are chargeable, but they are exceptions, so the ULD must be handled with special equipment.

Uncontainerized Cargo
Goods that cannot be transported in containers are stowed on container ships in the traditional way.

Unit of Traffic (UT)
Units of measurement of transport (vehicles-kilometers, passengers-kilometers, travelers-kilometers, tons-kilometers).

Upright
Upright metal support that holds shelves in shelving units.

Urban Disribution Center
These are the “terminals” of the freight transport networks responsible for distributing them within a city or urban area.

Vain
Space that exists between two uprights of a shelving, within which one or more pallets can be allocated.

Vector
Operator who physically carries out the shipment with means of property or managed by him (it is the case of the carrier in the traditional sense, of the courier – collective or express). Means any person who is contractually committed to the operation of rail, road, air, sea, inland waterway or combined transport.

VLM (Vertical Lift Module)
Automatic vertical warehouse.

Warehouse
Storage area that prepares orders and delivers directly to customers. Generally has regional location characteristics, able to control a specific distribution area.

Warehousing
Activities related to receiving, storing, and handling materials in a warehouse.

Warrant
Deposit faith; pledge note.