CLT key terms

The planning and coordination of moving, storing, and handling goods from where they are made to where they are needed, including the information and paperwork that supports those movements.

Coordinating the network of suppliers, producers, warehouses, carriers, and customers so products flow smoothly from raw materials to end users at acceptable cost and service levels.

The part of logistics concerned with getting finished goods from production or storage points out to customers, wholesalers, or retail locations through a planned channel structure.

The business process of identifying needs, selecting suppliers, negotiating terms, and purchasing the goods and services an organization requires to operate.

Standard international trade terms that define which party pays freight, insurance, and duties, and where risk of loss transfers from seller to buyer.

A transport document issued by a carrier that serves as a receipt for goods, evidence of the shipping contract, and sometimes a document of title.

An intermediary that arranges transportation, documentation, and customs formalities on behalf of shippers, often consolidating smaller shipments into larger ones.

The formal process of declaring imported or exported goods to customs authorities, paying applicable duties and taxes, and obtaining permission to release the goods.

The function of storing goods in a facility and performing activities such as receiving, put-away, picking, packing, and shipping to support downstream demand.

The stock of raw materials, work-in-process, and finished goods held by an organization to buffer against demand variability and supply uncertainty.

Extra inventory kept on hand beyond expected demand to protect against forecast errors, supplier delays, and other unpredictable variations in supply or demand.

The inventory level at which a new order should be placed so that stock arrives before existing supply is exhausted, accounting for lead time and expected usage.

The total elapsed time between initiating an activity, such as placing an order, and completing it, such as receiving the goods into inventory.

The tendency for small changes in customer demand to cause increasingly large swings in orders and inventory as you move upstream through the supply chain.

Estimating future customer demand using historical data, market intelligence, and statistical methods so that supply, inventory, and staffing can be planned accordingly.

The final leg of the delivery journey, moving goods from a local hub or store to the end customer's location, often the costliest and most complex segment.

A flow-through technique where incoming shipments are unloaded, sorted, and reloaded onto outbound vehicles with little or no storage time in between.

An outside company that performs logistics services such as transportation, warehousing, and fulfillment for shippers under a contractual arrangement.

An organization or individual that provides goods, materials, or services to a buyer as part of a commercial relationship.

Managing the flow of goods backward from the customer, including returns, repairs, recalls, recycling, and disposal, along with the associated information and funds.

A company that physically transports freight by road, rail, air, or water under a contract with a shipper or forwarder.

Choosing among truck, rail, air, ocean, pipeline, or intermodal options based on cost, speed, capacity, reliability, and the nature of the cargo.

Moving freight in a single loading unit, such as a container, across two or more transportation modes without handling the cargo itself during transfers.

Packing freight into standardized steel boxes that can be moved efficiently between ships, trains, and trucks with minimal rehandling of the goods.

A trucking service where multiple shippers' smaller shipments share one trailer, with each paying for the space and weight it uses.

A trucking arrangement in which one shipper uses the entire capacity of a trailer, typically for larger volumes moving point to point.

Combining several small shipments into a single larger load to reduce transportation cost and improve vehicle utilization.

The price charged for transporting goods, usually based on weight, volume, distance, class, and service level, sometimes with fuel and accessorial surcharges.

The total weight or volume of cargo moved, used for capacity planning, rate calculation, and measuring transportation activity.

Using algorithms and mapping data to determine the most efficient sequence and path for vehicles making multiple stops, balancing distance, time, and cost.

A measure of how productively a company's vehicles are used, considering loaded miles, idle time, capacity filled, and number of trips completed.

A method of auditing inventory by counting a small subset of items on a rotating schedule rather than shutting down for a full physical count.

The degree to which recorded inventory quantities and locations match what is physically present in the warehouse, usually expressed as a percentage.

Software that directs and tracks warehouse activities such as receiving, put-away, picking, and shipping, and maintains real-time visibility of inventory and labor.

The warehouse process of retrieving ordered items from storage locations and packing them into shipping containers for dispatch to customers.

The amount of time required to complete one full round of an operational process, from start to finish, such as filling an order.

The rate at which a system produces or handles units over a given period, such as orders shipped per hour or containers moved per day.