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Letter of credit, Logistics Management, Last In, First Out (LIFO) |
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Detailed terminology
list , in pdf form, will soon be available |
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Lading
The cargo carried in a transportation vehicle
Laid-down cost
The sum of the product and transportation costs. The laid-down
cost is useful in comparing the total cost of a product
shipped from different supply sources to a customer’s point of
use.
Landed Cost
Cost of product plus relevant logistics costs such as
transportation, warehousing, handling, etc. Also called Total
Landed Cost or Net Landed Costs
Last In, First Out (LIFO)
Accounting method of valuing inventory that assumes latest
goods purchased are first goods used during accounting period
Lead Logistics Partner (LLP)
An organization that organizes other 3rd party logistics
partners for outsourcing of logistics functions. Also see:
Fourth Party Logistics
Lead Time
The total time that elapses between an order's placement and
its receipt. It includes the time required for order
transmittal, order processing, order preparation, and transit.
Less-Than-Carload (LCL)
Shipment that is less than a complete rail car load (lot
shipment).
Less-Than-Truckload (LTL) Carriers
Trucking companies that consolidate and transport smaller
(less than truckload) shipments of freight by utilizing a
network of terminals and relay points.
Letter of credit
An international business document that assures the seller
that payment will be made by the bank issuing the letter of
credit upon fulfillment of the sales agreement
Life Cycle Cost
In cost accounting, a product’s life cycle is the period that
starts with the initial product conceptualization and ends
with the withdrawal of the product from the marketplace and
final disposition. A product life cycle is characterized by
certain defined stages, including research, development,
introduction, maturity, decline, and abandonment. Life cycle
cost is the accumulated costs incurred by a product during
these stages.
Logistics Channel
The network of supply chain participants engaged in storage,
handling, transfer, transportation, and communications
functions that contribute to the efficient flow of goods.
Logistics data interchange (LDI)
A computerized system to electronically transmit logistics
information.
Logistics Management
As defined by the Council of Supply Chain Management
Professionals (CSCMP): “Logistics management is that part of
supply chain management that plans, implements, and controls
the efficient, effective forward and reverse flow and storage
of goods, services, and related information between the point
of origin and the point of consumption in order to meet
customers’ requirements.
Logistics management activities
typically include inbound and outbound transportation
management, fleet management, warehousing, materials handling,
order fulfillment, logistics network design, inventory
management, supply/demand planning, and management of third
party logistics services providers.
To varying degrees, the logistics function also includes
sourcing and procurement, production planning and scheduling,
packaging and assembly, and customer service.
It is involved in all levels of planning and
execution—strategic, |
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operational, and tactical. Logistics
management is an integrating function which coordinates
and optimizes all logistics activities, as well as
integrates logistics activities with other functions,
including marketing, sales, manufacturing, finance, and
information technology.”
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lean manufacturing
Lean Manufacturing is a methodology that focuses on
the elimination of waste, and therefore increasing value
for the end user.
letter of credit
In international trade, a Letter of Credit
document is an irrevocable promise of payment, and its
purpose is to lower the transaction risk between the
buyer and the seller, by the exchanging of approved
documents.
As an example of the process:
An Australian company orders $80000 of computer cable
from China. After agreeing on terms and conditions, the
Australian company applies to their bank for an
irrevocable letter of credit, who then send the approved
credit documents to the seller's bank.
The seller's bank then advises the seller of the
approved letter of credit. The goods are shipped in
exchange for a bill of lading, which the seller presents
to their bank.
Upon receiving the bill of lading, the seller's bank
pays the seller; the buyer's bank reimburses the
seller's bank; and the buyer's bank debits the buyer.
The buyer then receives the original documents
(including the original bill of lading), so they can
collect their cable.
Lien
A company can put a contractual Lien on a
debtor's property that is in their possession, which
means they have the right to hold/sell the goods in the
event of an unsatisfied debt.
For example, a shipping company may include a lien
clause in their contract to the effect of the following:
'The Company will have a general lien on the
property of the debtor which are in, or come into
possession of the company. The Company has the right to
sell the property at auction if the debt has not been
satisfied within 14 days notice of exercising of the
lien....."
life cycle costing
When looking to procure a Capital Item, Life-Cycle
Costing helps determine the total cost of
acquiring, operating, maintaining, and disposing the
item.
liquidated damages
'Liquidated Damages' is a pre-estimated rate that is
enforced when a breach of contract occurs (eg: $5000
liquidated damages for each day over the deadline of a
building project). This is displayed in a contract
as a liquidated damages clause.
If the claim for damages is challenged in a legal
process, the rate needs to hold up as a genuine
estimation of loss/damages, otherwise it will be classed
as a 'penalty'.
logistics
In the Supply Chain field, Logistics is the
transporting, tracking, warehousing, and managing of
goods from its manufacturing source through to the end
user.
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