Third-Party Logistics (3PL), Third-Party Warehousing, Transit Inventory

 

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Detailed terminology list , in pdf form, will soon be available

 
 

Tender
The document which describes a business transaction to be performed

Terminal delivery allowance
A reduced rate offered in return for the shipper of consignee tendering or picking up the freight at the carrier’s terminal

Third-Party Logistics (3PL)
Outsourcing all or much of a company’s logistics operations to a specialized company

Third Party Logistics Provider
A firm which provides multiple logistics services for use by customers. Preferably, these services are integrated, or "bundled" together by the provider. These firms facilitate the movement of parts and materials from suppliers to manufacturers, and finished products from manufacturers to distributors and retailers. Among the services which they provide are transportation, warehousing, cross-docking, inventory management, packaging, and freight forwarding

Safety Stock is the inventory a company holds above normal needs as a buffer against delays in receipt of supply or changes in customer demand.

Throughput
A measure of warehousing output volume (weight, number of units). Also, the total amount of units received plus the total amount of units shipped, divided by two

Total Average Inventory
Average normal use stock, plus average lead stock, plus safety stock

Total Cost of Ownership (TCO)
Total cost of a computer asset throughout its lifecycle, from acquisition to disposal. TCO is the combined hard and soft costs of owning networked information assets. 'Hard' costs include items such as the purchase price of the asset, implementation fees, upgrades, maintenance contracts, support contracts, and disposal costs, license fees that may or may not be upfront or charged annually. These costs are considered 'hard costs' because they are tangible and easily accounted for

Total Sourcing Lead Time
(95% of Raw Material Dollar Value): Cumulative lead time (total average combined inside-plant planning, supplier lead time [external or internal], receiving, handling, etc., from demand identification at the factory until the materials are available in the production facility) required to source 95% of the dollar value (per unit) of raw materials from internal and external suppliers

Total Supply-Chain Management Cost (5 elements)
Total cost to manage order processing, acquire materials, manage inventory, and manage supply-chain finance, planning, and IT costs, as represented as a percent of revenue. Accurate assignment of IT-related cost is challenging. It can be done using Activity-Based-Costing methods, or based on more traditional approaches.
Allocation based on user counts, transaction counts, or departmental headcounts are reasonable approaches. The emphasis should be on capturing all costs, whether incurred in the entity completing the survey or incurred in a supporting organization on behalf of the entity. Reasonable estimates founded in data were accepted as a means to assess overall performance. All estimates reflected fully burdened actual inclusive of salary, benefits, space and facilities, and general and administrative allocations.

Calculation:

[Order Management Costs + Material Acquisition Costs + Inventory Carrying Costs + Supply-Chain-Related Finance and
Planning Costs + Total Supply-Chain-Related IT Costs] / [Total Product Revenue] (Please see individual component
categories for component detail and calculations)

Total Supply Chain Response Time
The time it takes to rebalance the entire supply chain after determining a change in market demand. Also, a measure of a supply chain’s ability to change rapidly in response to marketplace changes

Calculation:

[Forecast Cycle Time] + [Re-plan Cycle Time] + [Intra-Manufacturing Re-plan Cycle Time] + [Cumulative Source/Make
Cycle Time] + [Order Fulfillment Lead Time]

Trailer on a Flatcar (TOFC) A specialized form of containerization in which motor and rail transport coordinate. Synonym: Piggyback.

Transit Inventory
Inventory in transit between manufacturing and stocking locations, or between warehouses in a distributed warehousing model. Also see: In-transit Inventory

 
 
 


Truckload Lot

A truck shipment that qualifies for a lower freight rate because it meets a minimum weight and/or volume.

Two-bin system
An inventory ordering system in which the time to place an order for an item is indicated when the first bin is empty. The second bin contains sufficient supply until the order is received
 

telex release
What on earth is a Telex Release? It's a term used in international shipping where the goods are surrendered to the receiver at the discharge port without the need to display an original Bill of Lading.

tendering

Tendering is a process where a company puts out an invitational RFT (Request For Tender) for products/services they require. Potential suppliers submit their bids, in the hope of being chosen to supply their product/service.

The process can be performed either online (e-tendering), or the old-fashioned way of posting tenders.

One of the benefits to tendering is that it is a sure-fire way to ensure the contract is formed on your terms and conditions, because the bidders would need to accept your terms & conditions when submitting their offers.

3PL

Third-Party Logistics, aka 3PL, is the outsourcing of all or part of a company's supply chain functions. Examples of outsourced functions include warehousing, order-picking, inventory management, freighting, packing etc.

For example, a New Zealand company that has customers in China may wish to hold some stock nearer to their customers. With the assistance of a 3PL provider, the company can have stock held in a warehouse in China, and have it dispatched upon request.

3-Way Match

A 3-Way Match is when a Purchase Order, Supplier Invoice, & a system receipt match up, allowing authorization of payment to the supplier.

When one or more of these requirements don't match, it is called a mis-match, and the issue needs to be resolved before payment can be authorized.

For example, accounts receive an invoice for 3 pumps. The invoice details match up with the purchase order, but the quantity showing as receipted into the system doesn't match. Payment is not authorized for the pumps until the quantity-mismatch is sorted.

time is of the essence clause

The 'Time is of the Essence' Clause in a contract makes the due date of the products/services a Condition, and therefore if there is a delay, the 'injured' party has grounds to revoke their obligations under the contract

total quality management

Total Quality Management (TQM) in procurement is making sure every step of a process is correct before continuing onto the next

transactional purchasing

Transactional Purchasing is the administrative/processing side of purchasing, such as raising purchase orders, receipting invoices for payment etc, whether done manually by a purchasing officer, or automated (eg: an online catalogue ordering/invoicing system).

transhipment

A transhipment is the transfer of goods (under one Bill of Lading) from one vessel to another, with the purpose of continuing along to its destination.  This is similar in practice to a person unable to obtain a direct flight to his/her destination, and having to swap planes along the way. 

It is also worthy to note that a direct ocean shipment doesn't necessarily mean that the vessel goes directly to its destination without any stops.  A vessel can stop at many ports along the way, but as long as your goods have remained on the same vessel, this is still classed as a direct shipment. 

turnkey project

Turnkey is a term used to describe a product/project/operation that is handed over to its owner in a 'ready-to-use' state.  For example, a turnkey franchise would be a franchise that comes equipped with the necessary items and resources to 'hit the ground running', so to speak.

 

 

 

 
 

 

Get terms alphabetically:  A B C D E F G H I J K L M N O P Q R S T U V W X Y Z   

 
 
 

 

 
 

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