Logistics Glossary



H I J K L M N

H (top)
Handling Unit
Goods or aggregation of goods bundled together for distribution and logistics purposes. May include an individual item in a carton, combined items on pallets and skids, or items transferred in independently identified containers, such as ocean containers, rail cars or trucking trailers.
 
Harmonized Tariff Code
A code to numerically describe all articles in international trade managed by the World Customs Organization.
 
Hazardous Class/Indicator
Indicates whether the product is a hazard or source of danger. This prevents non-hazardous product from being mixed with hazardous products. The class indicates the category of hazardous material.
 
I (top)
Inbound
The flow of products into a distribution center prior to order selection.
 
Indirect Labor
Labor that does not handle merchandise physically (i.e., supervision, record handling, inbound checking, stock control, and housekeeping).
 
Information Oscillation
A concept that identifies the need to manage information in the supply chain, taking into account such factors as time zones, shipping and receiving schedules, and open and closed days. As near-real-time event information is provided in collaborative environments, work process rules must account for escalation processes to allow for human intervention in continuous operations.
 
Inner Pack
A unit that is a multiple of a storage case. Normally this is some shrink-wrapped or bundled quantity of retail units within a case. The inner pack is made up of one or many retail units. This quantity is not required to equal the number of retail units in a shipping unit.

Example:
Product: 12 oz. Cola cans
Case: 24 cans in a master case
Inner Pack: 6 cans tied together with plastic (a six-pack)
Retail Unit: A single can

In this example, if the customer orders by six-packs, the shipping unit would be set to 6. If the customer orders by the case, the shipping unit would be set to 24. If the customer orders by the retail unit, the shipping unit would be set to 1. Note: This is only one example of the many different ways that a product can be set up. A single product's shipping unit can be set differently on different product details.

   
International Trade Systems (ITS)
Execution systems designed to automate the import/export business process. The basic functional components are trade documentation generation and transmission, and regulatory compliance validation.
 
International Terms of Sale (INCOTERMS)
Established international terms of sale, published by the International Chambers of Commerce, that describe the responsibilities between buyers and sellers when transferring title to goods. These are significantly different from the American terms of sale commonly used in the United States.
 
Inventory
All stock on hand at any given time, either visibly displayed or in stockrooms and other secured areas. Inventory also refers to compiling an itemized list of all such items.
 
Inventory Adjustment
Adjustments made to the inventory created by the physical inventory and cycle counting processes.
 
Inventory Control
Control of current stock (shelf, back room, warehouse, on order, etc.) so that merchandise received conforms to sales demands, and out-of-stocks or over-stocks are avoided.
 
Inventory Detail
A pallet of a single product located in a warehouse location. When a pallet is put away, the information from the receipt detail is transferred to the inventory detail. The inventory detail is then associated with the location.
 
Inventory Reduction
When inventory is reduced by the allocation of orders (through the BOMB process).
 
Invoice
A bill for goods showing the amount owed to a creditor.
 
J (top)
Just-In-Time (JIT)
Delivery System
An inventory management system in which warehouse inventory is maintained at minimum levels because replenishment stock is immedi-ately available from suppliers.
 
K (top)
(none)
 
L (top)
Label
A pressure-sensitive, adhesive-backed paper (containing product, pric-ing, and other information) affixed to cases or pallets to identify and track them through the distribution process.
 
Labor Standards
Performance norms for operational tasks in a food distribution center. Labor standards can be communicated to workers either via electronic devices or in writing, and become the basis for measuring productivity and providing feedback to workers. They are frequently tied to worker incentive programs.
 
Lead Time
Total time from receipt of store order to the scheduled delivery time of the product at the store.
 
Less-Than-Case-Lot
Less than the quantity in one case of a particular item of merchandise.
 
Less-Than-Truckload (LTL)
A shipment weighing less than the weight required for a truckload rate.
 
Let Down (Replenishment)
The moving of inventory from reserve storage to the active picking slots below.
 
License Plate
Normally a bar code identifying a pallet or quantity of product; can be generic or system-generated.
 
Logistics
The management of a facility's traffic and transportation functions.
 
Lot Number
The process of tracking production where units are produced in a batch.
 
M (top)
Manufacturing Planning
Definition of the weekly or daily production and machine schedules across multiple plants or lines to meet orders and forecast demand. Some manufacturing planning modules also incorporate materials planning.
 
Manufacturing Scheduling
Generation of plant-level execution schedules by product and resource (e.g., line and machine) and resolution of day-to-day capacity bottlenecks. Scheduling applications normally include a more granular level of resource information, and will provide such functionality as sequence dependent set up, tank scheduling and point-of-use material availability.
 
Markout
When the item ordered shows quantity on hand, but the selector is not able to find the expected quantity.
 
Materials Handling System
The system for moving materials throughout a facility, which was cho-sen from among many types of equipment, both conventional and auto-mated.
 
Method Study Review
Engineers audit the time standards established (from the time study) for the job description to make sure the standards are fair and accurate.
 
Mezzanine
A partial second floor, larger than a balcony, where the re-pack room, selection area, and offices are often located in a distribution facility.
 
Minimum Order Requirements
A minimum quantity of goods (set by the manufacturer or supplier) that the retailer or wholesaler must order at one time in order to qualify for a discount.
 
Mixed Load
A trailer load that includes more than one product line (i.e., dry grocer-ies, produce, meat, and dairy products).
 
N (top)
Narrow Aisle
An aisle that requires special equipment to pick or stock, normally 5¨C6 feet in width.
 
Narrow-Aisle Straddle Forklift
A lift truck designed to work in aisles narrower than 10 feet. It can stack palletized merchandise 30 feet (9 meters) high.
 
Network Planning
Used to determine the overall physical channel (e.g., plants, distribution centers and warehouses) by which materials are turned into finished goods and delivered to customers. More recently, network planning tools have been enhanced for use in strategic business planning scenarios (e.g., to answer such questions as what should the company's channel strategies be or what is the impact of switching suppliers). These tools are usually used for long-term decisions, although enterprises in more-dynamic environments are employing them on a more-frequent basis.
 
Numbering System
A guide to all the slot locations in the facility, that is essential for effi-cient storage, replenishment, and selection. The system chosen depends on the facility's unique needs. Up to ten characters (alphanumeric) are used to designate aisle, bay, level, and position. A section ID before the aisle number may also be included.