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200+ terms defined in plain language for freight brokers, 3PLs, shippers, carriers, importers, exporters, and supply chain professionals. Updated 2026.
A method of classifying inventory into three groups by value and usage. Group A covers 10-20% of items but 50-70% of total dollar value. Group B is about 20% of items and value. Group C is 50-70% of items but only 10-30% of value. Helps prioritize inventory control efforts.
InventoryAdditional fees charged by a carrier for services beyond standard pickup and delivery. Examples include liftgate, inside delivery, residential surcharge, redelivery, and detention. Can significantly increase total shipment cost if not anticipated during quoting.
FreightA customs duty calculated as a percentage of the declared value of imported goods. Most customs duties worldwide are assessed on an ad valorem basis. The declared value must match commercial invoice values and can be verified by customs authorities.
CustomsA document sent by a supplier before a shipment arrives, detailing contents, carrier, and expected delivery time. Allows receiving teams to plan labor and dock space in advance. In EDI, the ASN is transmitted as transaction set 856 and is required by most major retailers.
DocumentationA supply chain designed to respond quickly to unpredictable demand or market changes. Prioritizes flexibility and speed over pure efficiency, using responsive sourcing, flexible manufacturing, and real-time visibility to adapt rapidly to disruption.
PlanningThe shipping document issued by an airline or air freight forwarder for air cargo. Serves as a receipt, contract of carriage, and customs declaration. Unlike an ocean bill of lading, the AWB is non-negotiable and does not represent title to the goods.
Air FreightThe assignment of available inventory to specific customer orders, production runs, or distribution channels. Once allocated, inventory is reserved and unavailable for other purposes. Critical in supply-constrained environments and peak demand periods.
InventoryAn additional import duty imposed when foreign goods are sold in a domestic market below their normal value, causing injury to domestic producers. Investigated and imposed by government trade authorities following formal complaints from domestic industry.
CustomsA notification from the delivering carrier to the consignee that a shipment has arrived or is expected at a specific location. Gives consignees time to arrange customs clearance, drayage, and receiving labor in advance of delivery.
DocumentationA manufacturing strategy where products are assembled from standard components only after a customer order is received. Reduces finished goods inventory while enabling fast fulfillment. Common in industries with many configurations such as electronics and machinery.
PlanningA transportation company that owns and operates its own trucks, containers, or vessels. Has direct control over capacity and service reliability, contrasted with non-asset brokers who arrange transportation using third-party equipment.
TransportationA U.S. CBP program allowing brokers, importers, and carriers to submit import entry data electronically. The primary channel through which customs entries are filed in the United States, enabling faster release of shipments.
CustomsA robotic vehicle used in warehouses to move inventory autonomously along defined paths. Navigates using magnetic strips, laser guidance, or vision systems. Reduces labor costs and improves picking accuracy in high-volume operations.
TechnologyA U.S. Customs system requiring carriers to submit electronic cargo manifest data before a shipment arrives. Allows advance risk assessment and faster customs release for ocean and air shipments inbound to the United States.
CustomsA high-density warehouse system using computer-controlled robotic cranes to store and retrieve inventory automatically. Maximizes vertical storage space, improves accuracy, and reduces labor costs in high-volume distribution operations.
WarehousingThe uncommitted portion of a company's inventory or planned production available to fulfill new orders. ATP calculations allow order teams to provide accurate delivery dates without overselling. Recalculated continuously as orders are placed and inventory is consumed.
PlanningThe return leg of a delivery route where a truck carries cargo back toward its origin. Reduces empty miles, cuts fuel costs, and improves asset utilization. Load boards and TMS platforms help carriers find backhaul freight.
TransportationA customer order that cannot be fulfilled because the item is out of stock. Held open and filled when inventory becomes available. High backorder rates signal demand forecasting errors, supplier delays, or inadequate safety stock levels.
InventoryThe difference in monetary value between a country's exports and imports. A trade surplus means exports exceed imports. A trade deficit means imports exceed exports. Trade balance data influences tariff policy and currency exchange rates.
InternationalA strategic performance framework tracking financial and non-financial metrics across four dimensions: financial, customer, internal processes, and learning and growth. Aligns operational KPIs with broader business objectives.
OperationsA warehouse picking method where multiple orders are picked simultaneously in a single pass. Orders are grouped by zone or product location to reduce travel time and improve throughput in high-volume fulfillment operations.
WarehousingA legally binding document between a shipper and carrier detailing the type, quantity, and destination of freight. A contract of carriage, a receipt of goods, and in some cases a document of title. The single most important document in freight logistics.
DocumentationA structured list of all raw materials, components, subassemblies, and quantities needed to produce a finished product. Central to production planning, procurement, and inventory management. BOM accuracy directly affects order fulfillment and cost control.
PlanningA warehouse storage method where pallets are stacked directly on the floor without racking. Maximizes floor space and is cost-effective for high-volume uniform products. FIFO rotation is difficult due to limited access to older stock at the back.
WarehousingA government-licensed facility where imported goods can be stored without paying customs duties until released for domestic sale or re-export. Lets importers defer duty payments, manage cash flow, and inspect goods before deciding to import or re-export.
CustomsCargo individually packaged and loaded piece by piece rather than in containers. Requires more handling time and labor. Common for heavy machinery, steel, and oversized items that cannot be containerized.
Ocean FreightExtra inventory held to absorb unexpected variations in demand or supply. Also called safety stock. The right buffer level is calculated using lead time variability, demand variability, and target service level.
InventoryUnpackaged goods loaded directly into a vessel's hold. Common commodities include grain, iron ore, coal, and crude oil. Offers the lowest cost per ton for homogeneous commodities moved in large volumes.
Ocean FreightThe phenomenon where small fluctuations in end-consumer demand cause progressively larger swings in orders upstream through the supply chain. Caused by demand signal distortion, batch ordering, and lack of real-time visibility across supply chain partners.
PlanningA fuel surcharge applied by ocean carriers to offset fluctuating fuel oil costs. Quoted separately from base ocean freight rates and adjusted periodically. Also called Bunker Adjustment Factor or Fuel Adjustment Factor.
Ocean FreightA company or individual that physically transports goods using trucks, ships, aircraft, or trains. Legally responsible for freight from pickup to delivery. In the U.S., motor carriers must hold FMCSA operating authority and required insurance minimums.
TransportationThe legal obligation of a carrier to compensate a shipper for freight lost or damaged while in its custody. Limited by law and tariff. In the U.S., motor carrier liability is governed by the Carmack Amendment.
TransportationThe time from when a company pays for inventory to when it receives customer payment. A shorter cycle reduces working capital requirements. Calculated as Days Inventory Outstanding plus Days Sales Outstanding minus Days Payable Outstanding.
FinanceA document certifying the country where goods were manufactured. Required by customs to determine duty rates and verify FTA eligibility. Some free trade agreements require a specific COO format to qualify for preferential tariff treatment.
DocumentationA documented record of every party that has had custody of a shipment from origin to destination. Critical for pharmaceuticals, food, cannabis, and hazardous materials. Breaks in chain of custody can trigger regulatory penalties or product rejection.
ComplianceA penalty fee from a retailer against a supplier for failing to comply with routing guides, labeling specs, or delivery windows. Common in retail supply chains and can significantly erode supplier margins if compliance issues go unaddressed.
Retail LogisticsA supply chain model designed to minimize waste by reusing, recycling, or remanufacturing materials at end of life. Reduces reliance on virgin raw materials and is increasingly required by EU and North American sustainability regulations.
SustainabilityA temperature-controlled supply chain preserving perishable goods such as fresh food, pharmaceuticals, and biologics. An unbroken cold chain requires refrigerated storage, temperature-monitored transport, and real-time visibility to prevent spoilage or regulatory non-compliance.
SpecializedA document issued by the seller describing goods sold, quantities, prices, and sale terms. One of the primary documents used by customs to assess import duties and verify declared value. Must match the packing list and bill of lading exactly.
DocumentationThe individual or company receiving a shipment. Accepts delivery, inspects goods, and notes any damage on the delivery receipt. In international trade, typically also the importer of record responsible for customs clearance.
DocumentationCombining multiple smaller shipments into a single larger load. Reduces per-unit freight costs and is the core principle behind LTL and ocean LCL shipping. Deconsolidation separates shipments at the destination for individual delivery.
TransportationA standardized metal box for transporting freight by ship, rail, or truck. Standard sizes are 20-foot (TEU) and 40-foot (FEU). Enables seamless transfer between transport modes without unloading cargo and carries approximately 90% of global non-bulk trade.
Ocean FreightThe time a container sits at a port or terminal without moving. Excessive dwell contributes to congestion and demurrage charges. High dwell typically signals documentation delays, customs holds, or poor coordination among shipper, carrier, and terminal.
Ocean FreightA negotiated freight rate between a shipper and carrier for a defined period, typically 12 months. Offers price predictability and capacity assurance in exchange for volume commitments. Generally lower than spot rates in tight markets.
FreightA centralized supply chain visibility platform providing real-time monitoring of shipments, inventory, and supplier performance. Uses data integration, automated alerts, and analytics to enable faster exception management and proactive decision-making.
TechnologyThe total cost of fulfilling an order for a specific customer, including order processing, picking, packing, transportation, and returns. Reveals which customers, channels, or order types are truly profitable after all logistics costs are factored in.
FinanceAn additional import duty imposed to offset subsidies provided by a foreign government to its exporters. Protects domestic producers who cannot benefit from equivalent government support and levels the competitive playing field.
CustomsA logistics process where incoming freight is transferred directly from receiving docks to outbound trucks with minimal or no warehousing. Speeds delivery times, reduces storage costs, and is widely used by large retailers and distribution networks.
WarehousingCustoms-Trade Partnership Against Terrorism. A voluntary U.S. CBP program where importers, carriers, and logistics providers become certified partners in exchange for expedited cargo processing. Members must validate security standards throughout their supply chains.
CustomsA licensed professional helping importers and exporters comply with customs regulations. Prepares and files documentation, calculates duties and taxes, and facilitates clearance of goods through customs on behalf of clients.
CustomsAn inventory accuracy method counting a rotating subset of items on a regular schedule rather than a full physical count. Catches discrepancies early and maintains accuracy without shutting down warehouse operations.
WarehousingInventory that has not moved for an extended period and is unlikely to be sold or used. Ties up capital and warehouse space. Regular inventory reviews, clearance pricing, and supplier returns are common disposal strategies.
InventoryA measure of the total weight a ship can carry, including cargo, fuel, crew, and supplies. The standard measure of vessel carrying capacity in bulk and tanker shipping markets worldwide.
Ocean FreightA transportation arrangement where a carrier provides trucks, drivers, and management exclusively for a single shipper. Offers the control of a private fleet without the capital investment or management burden of owning equipment.
TransportationThe process of estimating future customer demand using historical data, market trends, seasonality, and statistical models. Accurate forecasting reduces inventory carrying costs, prevents stockouts, and aligns production and procurement with expected needs.
PlanningA charge applied when a container or vessel is held beyond the allotted free time at a port or terminal. Incentivizes faster cargo handling and compensates carriers for delayed equipment return. Distinct from detention, which applies to trucks at shipper facilities.
Ocean FreightA fee charged when a carrier's truck is held at a shipper or receiver's facility beyond agreed free time. Reducing detention requires better dock appointment systems and shipper accountability. A major source of friction between carriers and shippers.
FreightA virtual replica of a supply chain or warehouse using real-time data to simulate scenarios and predict outcomes. Allows teams to model disruptions, test optimization strategies, and make faster decisions without affecting live operations.
TechnologyA pricing method charging based on space a package occupies when it is large but light. Calculated by multiplying length by width by height and dividing by a carrier DIM factor. The higher of actual or DIM weight is billed.
FreightA warehouse facility used to receive, store, sort, and ship products to stores, wholesalers, or end customers. The core node of most large retail and ecommerce supply chain networks.
WarehousingA document issued by an ocean terminal acknowledging cargo delivered by an inland carrier. A precursor to the bill of lading that documents the condition and quantity of goods at the time of delivery to the terminal.
DocumentationShort-distance movement of containers between a port, rail terminal, or intermodal facility and a nearby warehouse or DC. A critical and often bottlenecked link in intermodal supply chains, dependent on chassis availability and port turn times.
TransportationA fulfillment model where the seller holds no inventory. Orders are forwarded to the manufacturer or supplier who ships directly to the customer. Reduces capital requirements but limits control over delivery times, packaging, and returns.
EcommerceThe most common type of enclosed truck trailer in North American freight. Fully enclosed, protecting cargo from weather and theft. Used for general freight including consumer goods, electronics, packaged food, and industrial products.
TransportationMaterials used to protect and secure cargo within a truck, container, or railcar during transit. Common dunnage includes airbags, foam pads, wood blocks, and cardboard. Prevents product damage from shifting, vibration, and impact.
TransportationThe computer-to-computer exchange of standardized business documents between trading partners. Common logistics EDI transactions include purchase orders (850), ASNs (856), invoices (810), and freight status updates (214). Eliminates paper and reduces manual data entry errors.
TechnologyA device in commercial trucks that automatically records driver hours of service. Mandatory for most commercial drivers in the U.S. and Canada. Replaced paper logbooks and is used for compliance audits, fleet management, and safety monitoring.
ComplianceIntegrated software managing core business processes including finance, procurement, inventory, manufacturing, and order management in a unified system. Major logistics ERP platforms include SAP, Oracle, and Microsoft Dynamics.
TechnologyThe predicted time a shipment or vehicle is expected to reach its destination. Tracked in real time by TMS and visibility platforms and shared with customers to manage delivery expectations. Predictive ETA tools use historical data and live signals to improve accuracy.
TransportationThe process of identifying, escalating, and resolving supply chain events that deviate from plan. Requires real-time visibility, automated alerts, and escalation workflows to minimize the impact of delays, damages, and disruptions before they become major problems.
TechnologyShipping services prioritizing speed over cost. Used when standard delivery cannot meet the required timeline. Common solutions include dedicated trucks, team drivers, and air freight. Widely used in automotive, healthcare, and retail replenishment.
TransportationA government-required document filed by an exporter describing goods being exported, their value, quantity, and destination. In the U.S., filed electronically through the Automated Export System as Electronic Export Information (EEI).
CustomsA government authorization required to export certain controlled goods such as defense equipment, dual-use technology, or sanctioned commodities. Exporters classify products under the ECCN to determine if a license is required.
CustomsThe entity legally responsible for export compliance, documentation, and filing. May be the seller, a customs broker, or a designated third party. Ensures the export complies with all regulations and accurate export declarations are filed on time.
CustomsThe percentage of customer demand satisfied from available stock without backorders or lost sales. Calculated as units shipped divided by units ordered. A 98% fill rate means 2% of demand resulted in a shortage.
InventoryAn inventory rotation method ensuring the oldest stock is consumed or shipped first. Essential for perishables and products with expiry dates. Prevents inventory from aging and reduces waste in food, pharma, and chemical warehouses.
WarehousingAn open trailer with no sides or roof used for oversized or irregularly shaped cargo including steel, lumber, machinery, and construction materials. Freight is secured with straps, chains, and tarps. Oversized loads often require special permits.
TransportationThe administration of a company's vehicles including trucks, trailers, and other assets. Covers maintenance scheduling, driver management, fuel tracking, compliance, and asset utilization. Integrates with GPS and ELD data for real-time visibility.
TransportationA supply chain model where a single provider manages and orchestrates an entire supply chain including multiple 3PLs, technology systems, and carrier networks. Adds strategic oversight and optimization rather than direct operational execution.
3PLAn Incoterm where the seller delivers goods to a named carrier at a specified location and risk transfers to the buyer at that point. Works for any transport mode and is commonly used for containerized goods.
IncotermsA widely used Incoterm defining when risk transfers from seller to buyer. FOB Origin means the buyer takes risk once goods leave the seller's dock. FOB Destination means the seller retains responsibility until delivery at the buyer's location.
IncotermsA treaty between countries reducing or eliminating tariffs and trade barriers. Major FTAs include USMCA, CPTPP, and the EU Single Market. Can significantly reduce import duty costs for qualifying goods traded between signatory countries.
InternationalA designated area where goods can be imported, stored, and re-exported without paying customs duties. Lets importers defer duty payments, reduce duty exposure, and simplify customs processes for distribution hubs near major ports.
CustomsThe review of carrier invoices against contracted rates and shipment details. Catches billing errors, duplicate charges, and discrepancies. Studies show 2-5% of freight invoices contain errors. Many shippers outsource freight audit to specialized providers.
FinanceA licensed intermediary connecting shippers with carriers. Arranges transportation without taking possession of goods and earns a margin between the shipper rate and the carrier rate. In the U.S., brokers must hold FMCSA authority and a $75,000 surety bond.
BrokerageA standardized LTL rating system with 18 classes (50 to 500) based on density, stowability, handling, and liability. Higher classes command higher rates per hundredweight. Determined using the NMFC classification system.
FreightA company organizing international shipments on behalf of exporters and importers. Handles carrier booking, documentation, customs clearance, insurance, and multi-leg coordination. They are agents, not carriers, operating under their own or master bills of lading.
InternationalAn ocean freight booking where a shipper uses an entire container exclusively. More cost-effective than LCL for larger shipments and offers faster transit as the container goes directly to the destination without consolidation stops.
Ocean FreightA shipment filling an entire trailer by weight or volume. Travels directly from origin to destination with no stops, resulting in faster transit and lower damage risk than LTL. The shipper pays for the full trailer regardless of actual fill level.
TransportationAn additional carrier fee offsetting fluctuating fuel costs. Calculated as a percentage of the base freight rate and adjusted periodically. Applies across trucking, air, and ocean freight modes.
FreightThe entry and exit point of a port, terminal, or DC where vehicles and containers are checked in and out. Gate operations include document verification, container inspection, appointment scheduling, and driver check-in. Gate efficiency directly impacts yard and dock throughput.
WarehousingProcesses and systems for managing international trade compliance, documentation, and financial obligations. GTM software helps companies navigate tariffs, export controls, trade sanctions, restricted party screening, and customs requirements across multiple countries.
TechnologyThe use of satellite technology to monitor real-time locations of trucks, containers, or shipments. Improves visibility, helps dispatchers manage exceptions, and provides customers with accurate delivery updates. Modern platforms combine GPS with ELD and telematics data.
TechnologySupply chain practices designed to minimize environmental impact. Includes route optimization to reduce emissions, electric vehicle adoption, sustainable packaging, carbon offsetting, and load optimization to improve trailer fill and reduce unnecessary trips.
SustainabilityThe total weight of a shipment including all goods, packaging, pallets, and containers. Must not exceed vehicle or vessel legal limits. Used to calculate freight charges and for customs declarations.
FreightAn internationally standardized numeric classification system for traded products. HS codes determine applicable duties and taxes. The first six digits are universal; countries add additional digits for national specificity. Ubico's supply chain data includes HS codes from real import and export records.
CustomsSubstances posing a risk to health, safety, or the environment during transport. Regulated under DOT rules in the U.S. HazMat shipments require special packaging, labeling, placarding, documentation, and drivers with HazMat CDL endorsements.
ComplianceFederal regulations limiting commercial truck driver working hours to prevent fatigue. In the U.S., drivers are limited to 11 hours of driving in a 14-hour window. Recorded by ELDs and enforced by the FMCSA through roadside inspections and audits.
ComplianceA distribution model where freight consolidates at a central hub and is dispatched to destinations via spokes. Used by LTL carriers, parcel companies, and airlines. Achieves economies of scale through consolidation but adds transit time versus direct routing.
TransportationA supply chain combining lean efficiency and agile responsiveness at different points in the network. The decoupling point separates where inventory is held to balance cost and service responsiveness based on demand variability and product characteristics.
PlanningRecords of goods crossing international borders, including shipper names, consignee details, HS codes, quantities, ports, and carrier information. Used by freight brokers, 3PLs, and sales teams to identify prospects and understand trade lanes. Ubico provides 70M+ global shipment records.
DataThe entity legally responsible for import compliance, duty payment, and customs entry filing. May be the buyer, a broker, or a designated third party. Liable for any customs violations, underpayments of duty, or import compliance failures.
CustomsThe processes of receiving, storing, and distributing raw materials or goods coming into a business from suppliers. Efficient inbound logistics reduces receiving costs, prevents production stoppages, and ensures inventory is properly managed from arrival through putaway.
Operations11 internationally recognized trade terms published by the ICC defining buyer and seller responsibilities. Specify who pays for freight, insurance, and customs clearance, and when risk transfers from seller to buyer. Current version is Incoterms 2020.
InternationalA dry port or inland terminal providing container storage, customs clearance, and intermodal transfer services away from a seaport. Allows importers and exporters to clear customs closer to their facilities, reducing port congestion and total drayage costs.
Ocean FreightA holistic approach managing all logistics activities as a unified system. Improves coordination across functions, reduces total costs, and delivers better service levels than managing transportation, warehousing, and inventory as separate siloed functions.
OperationsMovement of goods using two or more transport modes within a single journey. Containers transfer seamlessly between ship, rail, and truck without unloading cargo. More cost-effective than all-truck for long distances and produces lower carbon emissions per ton-mile.
TransportationThe process of ordering, storing, tracking, and controlling inventory to meet demand while minimizing carrying costs. Key metrics include inventory turnover, days on hand, fill rate, and carrying cost as a percentage of inventory value.
InventoryA measure of how many times inventory is sold and replaced in a given period. Calculated by dividing cost of goods sold by average inventory value. Higher turnover indicates efficient management. Low turnover signals overstocking or poor demand forecasting.
InventoryAlso called 10+2. Requires U.S. importers to submit specific cargo data to CBP at least 24 hours before loading at a foreign port. Helps CBP identify high-risk shipments before arrival. Penalties for late or inaccurate filings can reach $10,000 per violation.
CustomsAn inventory strategy holding additional buffer stock to protect against supply chain disruptions. The opposite of JIT. Many companies shifted toward JIC after production stoppages during the COVID-19 pandemic and subsequent global supply chain disruptions.
PlanningAn inventory strategy where materials are ordered and received only when needed for production, minimizing on-hand inventory. Reduces warehouse costs and waste but requires highly reliable suppliers and carriers. Disruptions can quickly halt production.
PlanningA visual scheduling system from lean manufacturing that triggers replenishment only when inventory reaches a defined minimum. Kanban cards or digital signals authorize production or purchasing of exactly the quantity needed, preventing overproduction and excess stock.
PlanningA measurable metric used to evaluate supply chain or logistics performance. Common KPIs include on-time delivery, order accuracy, perfect order rate, inventory turnover, freight cost per unit, and cash-to-cash cycle time.
OperationsThe assembly of individual components into a ready-to-ship kit in a warehouse or fulfillment center. Speeds downstream assembly, simplifies order picking, and supports subscription box and ecommerce bundle strategies. A common value-added service offered by 3PLs.
WarehousingA defined origin-destination corridor for freight movement. High-density lanes attract more carrier competition and lower rates. Thin or irregular lanes often require spot pricing or dedicated capacity arrangements to ensure reliable coverage.
TransportationThe final stage of delivery from a DC or transit hub to the end customer. Accounts for up to 53% of total shipping cost in some ecommerce operations and is the most complex part of the supply chain to optimize for both speed and cost.
TransportationThe total elapsed time between placing a purchase order and receiving the goods. Includes order processing, production or picking time, and transit. Shorter lead times reduce safety stock requirements and improve customer responsiveness.
PlanningThe application of lean principles to logistics operations to eliminate waste, reduce cost, and improve flow. Identifies and removes non-value-adding activities such as excess handling, waiting time, overproduction, and unnecessary inventory accumulation.
PlanningAn ocean freight option where a shipper's cargo shares container space with other shippers. Cost-effective for small international shipments but involves additional handling, longer transit times, and higher damage risk than FCL.
Ocean FreightA shipping method for loads that do not fill a full trailer. Multiple shippers share truck space, reducing per-unit costs. Involves longer transit times than FTL due to terminal consolidation and multiple stops along delivery routes.
TransportationA carrier accessorial using a hydraulic platform to raise or lower freight between ground level and the truck bed. Required at locations without a loading dock such as residences and small businesses. One of the most common accessorial charges in LTL billing.
FreightAn online marketplace where freight is posted by brokers and shippers, and carriers search for available loads. Matches truck capacity with shipping demand in real time. Major platforms include DAT Freight, Truckstop.com, and 123Loadboard.
BrokerageThe process of optimally arranging freight within a trailer, container, or vessel to maximize space, maintain weight limits, and protect cargo. Load planning software considers weight distribution, stackability, and delivery sequence to improve efficiency.
TransportationThe process of planning, implementing, and controlling the efficient movement and storage of goods, services, and information from origin to consumption to meet customer requirements. Encompasses transportation, warehousing, inventory management, order fulfillment, and reverse logistics.
OperationsA company providing outsourced logistics services. LSPs include 3PLs, freight brokers, freight forwarders, customs brokers, and warehouse operators. The term is broader than 3PL and covers any external provider of logistics capabilities.
3PLA manufacturing strategy where production begins only after a customer order is received. Eliminates finished goods inventory risk but results in longer lead times. Common for customized or high-value products where holding finished inventory is impractical.
PlanningA manufacturing strategy where goods are produced based on demand forecasts and held in finished goods inventory. Enables fast order fulfillment but carries the risk of overproduction if forecasts are inaccurate. Common for high-volume standardized consumer products.
PlanningA document listing all cargo aboard a vessel, aircraft, or truck. Required by customs and used by carriers to account for all freight in transit. Electronic manifests are submitted in advance to customs systems for pre-arrival risk assessment.
DocumentationThe bill of lading issued by an ocean carrier to a freight forwarder for a consolidated shipment. The forwarder then issues individual house bills of lading to each shipper. The master BOL covers the entire consolidated container.
DocumentationA production planning system calculating what materials are needed, in what quantities, and when, based on production schedules and bill of material data. Drives purchasing and production orders to ensure materials are available without excess stock.
PlanningThe method used to move freight. Primary modes are road, rail, ocean, and air. Each offers different trade-offs in cost, speed, and capacity. Mode selection is driven by shipment size, distance, urgency, and commodity characteristics.
TransportationA company or individual transporting freight by road. In the U.S., must hold FMCSA operating authority and maintain required insurance minimums. Classified as common carriers, contract carriers, or private carriers depending on who they serve.
TransportationThe use of more than one transport mode within a single shipment, potentially with different carriers and separate contracts for each leg. A freight forwarder typically manages multimodal shipments end to end under a combined transport document.
TransportationRelocating manufacturing or supply chain operations to a nearby country. U.S. companies nearshoring to Mexico or Canada benefit from shorter transit times, lower freight costs, and USMCA trade benefits compared to offshore manufacturing in Asia.
InternationalThe weight of goods excluding all packaging, pallets, and containers. Used for customs declarations and duty calculations. Contrasted with gross weight, which includes all outer packaging and container tare weight.
FreightA freight forwarder that issues its own ocean bills of lading without owning or operating vessels. Consolidates cargo from multiple shippers, negotiates space with ocean carriers, and takes responsibility for cargo under its own BOLs.
Ocean FreightTransportation of goods by sea. The most cost-effective mode for large international shipments, handling approximately 80% of global trade by volume. Uses container ships, bulk vessels, tankers, and roll-on/roll-off ships.
Ocean FreightA KPI measuring the percentage of shipments delivered on or before the agreed date. Measured from the customer's requested date, not the carrier's estimated date. A core metric of carrier reliability and supply chain execution quality.
KPIA retail compliance metric measuring whether a supplier delivered the correct quantity on or before the required date. Retailers including Walmart impose financial penalties for OTIF non-compliance. Combines on-time delivery and order completeness into one demanding metric.
Retail LogisticsThe total time from when a customer places an order to when it is delivered. Encompasses order processing, picking, packing, carrier transit, and last mile delivery. Reducing order cycle time is a top priority in ecommerce fulfillment operations.
PlanningThe complete process from receiving a customer order through delivery. Includes order processing, pick and pack, carrier handoff, and delivery confirmation. Fulfillment accuracy and speed are primary drivers of customer satisfaction in B2B and B2C logistics.
OperationsSoftware managing the lifecycle of customer orders from placement through fulfillment and returns. Tracks inventory availability, routes orders to the optimal fulfillment location, and provides order status visibility to customers and internal teams.
TechnologyThe processes of moving finished goods from a manufacturer or warehouse to the end customer. Includes order processing, packing, carrier selection, transportation management, and last mile delivery management.
OperationsInventory held in excess of demand plus safety stock. Ties up working capital, increases carrying costs, and risks obsolescence. Regular analysis helps identify and liquidate overstocked items before they become dead stock.
InventoryA document accompanying a shipment itemizing each package's contents, weight, and dimensions. Helps receivers verify contents, assists customs inspections, and is used to resolve discrepancy and damage claims.
DocumentationA flat portable platform for stacking, storing, and transporting goods. Standard North American dimensions are 48x40 inches. Enables forklifts and pallet jacks to move large quantities efficiently in warehouses and during loading and unloading operations.
WarehousingA shipment larger than LTL but smaller than FTL, typically 5 to 18 pallets. Moves more directly than LTL with fewer stops, offering better transit times and lower damage risk at pricing between LTL and FTL rates.
TransportationAn additional carrier fee during high-demand periods such as the retail holiday season. Reflects tighter capacity and higher operating costs. Can significantly increase total freight costs if not anticipated during budget and contract planning.
FreightA KPI measuring orders delivered complete, on time, undamaged, and with correct documentation. A 95% rate means 5% of orders had at least one failure across all four dimensions. One of the most comprehensive supply chain performance indicators.
KPIThe warehouse process of selecting items from inventory (picking) and assembling them into a shipment-ready package (packing). Pick and pack efficiency directly impacts order fulfillment speed, accuracy, and cost per order.
WarehousingA situation at a seaport where vessel arrivals exceed handling capacity, causing vessels to anchor and wait. Creates ripple effects including container shortages, higher freight rates, and delivery delays across global supply chains.
Ocean FreightA designated location where goods are authorized to enter a country. Includes seaports, airports, and land border crossings. Customs inspections and import duties are processed before goods are released for domestic distribution.
CustomsDocumentation confirming a shipment was received by the correct recipient. Includes signature, delivery time, and condition of goods. Used to resolve disputes, confirm billing, and trigger payment in freight workflows.
DocumentationA formal document authorizing a supplier to deliver specific goods at an agreed price, quantity, and delivery date. Once accepted by the supplier, the PO is a legally binding contract between buyer and seller.
DocumentationThe warehouse process of moving received inventory from the dock to its designated storage location. Efficient putaway uses directed logic in a WMS to assign optimal locations based on product velocity, weight, and pick frequency.
WarehousingInspection and testing of products to ensure they meet standards before shipment. In logistics, QC may occur at the supplier, warehouse, or port of entry. Failed QC can trigger returns, rework, quarantine holds, or customs delays.
OperationsDetention of goods by customs or agricultural authorities pending inspection. Agricultural products and live animals are commonly subject to quarantine on arrival. Goods cannot be moved or sold until cleared by the relevant authority.
CustomsA price estimate from a carrier or broker for transporting a specific shipment. Based on origin, destination, weight, dimensions, freight class, and market conditions. Spot quotes are one-time; contract rates are negotiated for ongoing volume.
BrokerageA document confirming the agreed freight rate between a broker and carrier for a specific load. Includes pickup and delivery details, commodity, agreed pay, and payment terms. Both parties sign before the load is dispatched.
BrokerageThe warehouse process of accepting inbound freight from a carrier. Includes verifying the shipment against the PO and packing list, inspecting for damage, scanning items into the WMS, and preparing goods for putaway or cross-docking.
WarehousingA refrigerated trailer or container maintaining a controlled temperature for perishables, pharmaceuticals, and chemicals. Reefer rates are higher than dry van due to equipment cost, fuel, and continuous temperature monitoring requirements.
TransportationThe process of restocking inventory to a target level. In warehousing, moves product from bulk storage to active pick locations. In procurement, triggers purchase orders when stock falls below reorder points.
InventoryReturning manufacturing from overseas back to the home country. Driven by rising offshore costs, resilience concerns, government incentives, and geopolitical risk. Reduces lead times and transportation costs but may increase unit production costs.
InternationalMoving goods from the customer back through the supply chain to the seller, manufacturer, or recycler. Covers returns, repairs, recalls, recycling, and disposal. Increasingly important as ecommerce return volumes grow and sustainability requirements tighten.
EcommerceTechnology using radio waves to identify and track objects without line-of-sight scanning. RFID tags on pallets or cases transmit data automatically, improving inventory accuracy, accelerating receiving, and reducing manual scanning labor.
TechnologyThe identification, assessment, and mitigation of risks that could disrupt supply chain operations. Risks include supplier failures, natural disasters, geopolitical events, port congestion, and demand volatility. Strategies include supplier diversification and contingency planning.
PlanningOcean freight service where wheeled cargo such as cars, trucks, and heavy machinery is driven on and off vessels via ramps. The standard shipping method for automotive manufacturers and equipment exporters, eliminating the need for cranes or containers.
Ocean FreightDetermining the most efficient delivery routes considering distance, traffic, time windows, vehicle capacity, and driver hours. Reduces fuel costs, improves on-time performance, and increases stops per vehicle per shift.
TechnologyA document from a retailer specifying which carriers to use, labeling requirements, and delivery windows. Non-compliance results in chargeback penalties. Compliance is a major operational focus for CPG and retail suppliers.
Retail LogisticsExtra inventory held to absorb unexpected demand spikes or supply disruptions. Prevents stockouts but increases carrying costs. Optimal safety stock is calculated using demand variability, lead time variability, and the target service level.
InventoryAn integrated planning process aligning sales forecasts with production, inventory, and supply capacity. Brings cross-functional teams together monthly to agree on a unified plan balancing customer demand with supply constraints and financial goals.
PlanningA supply chain using AI agents to autonomously detect and resolve disruptions without human intervention. Systems renegotiate freight rates, reroute shipments, or adjust inventory levels automatically when issues arise. An emerging capability becoming mainstream in 2026.
TechnologyA formal contract between a logistics provider and customer defining expected performance standards such as on-time delivery rate, order accuracy, and response times. Typically includes financial penalties or service credits for non-performance.
OperationsThe individual or company sending goods from one location to another. Arranges transportation, prepares documentation, and in most cases pays freight charges. In international trade, the shipper is typically the exporter of record.
TransportationThe entity named on a bill of lading and legally responsible for the shipment. In broker-facilitated transactions, the shipper of record may differ from the actual cargo owner or the party that physically tendered the goods to the carrier.
DocumentationA unique identifier assigned to each distinct product variant. SKUs track products by size, color, style, or configuration. Accurate SKU management is fundamental to inventory control, order picking, demand forecasting, and automated replenishment.
InventoryDetermining the optimal storage location for each SKU in a warehouse. Considers pick frequency, weight, dimensions, and ergonomics to minimize travel time and labor cost. Regular reslotting is necessary as product velocity patterns change over time.
WarehousingThe market for one-time freight transactions at current market rates. Spot rates fluctuate based on real-time supply and demand. Shippers use the spot market when contract carriers cannot cover their volume or when capacity is needed outside contracted lanes.
BrokerageThe complete network of organizations, people, processes, resources, and technologies involved in creating and delivering a product from raw material to end customer. Supply chain management coordinates all elements to optimize cost, speed, quality, and resilience.
OperationsFinancial instruments optimizing cash flow across the supply chain. Includes reverse factoring, dynamic discounting, and inventory financing. Helps suppliers receive early payment while buyers extend payment terms, reducing working capital pressure on both sides.
FinanceThe ability to anticipate, adapt to, and recover from disruptions. Resilient supply chains use supplier diversification, nearshoring, increased safety stock, and real-time visibility to reduce vulnerability to geopolitical events, natural disasters, and demand shocks.
PlanningThe ability to track shipment locations, inventory levels, and events in real time across all nodes. Enables faster exception management, better customer communication, and proactive decisions before small problems become large disruptions.
TechnologyAn additional fee applied on top of the base freight rate. Common surcharges include fuel, peak season, port congestion, oversize, emergency, and hazardous materials. Understanding all applicable surcharges is essential for accurate freight cost management.
FreightA government tax on imported or exported goods. Protects domestic industries, generates revenue, and influences trade flows. Rates are determined by HS code and country of origin and can change based on trade policy and geopolitical conditions.
CustomsThe standard unit for measuring container capacity. One TEU equals one 20-foot container. A 40-foot container equals 2 TEUs. Ship capacity, port throughput, and global trade volumes are all universally expressed in TEUs.
Ocean FreightA company providing outsourced logistics services including transportation, warehousing, fulfillment, and freight brokerage. 3PLs allow businesses to scale logistics without owning infrastructure. A core customer segment for Ubico's prospecting and outreach platform.
3PLThe ability to monitor the location and status of a shipment throughout its journey using GPS, carrier EDI data, and telematics. Essential for customer communication and proactive exception management across all modes of transport.
TechnologyA regularly traveled route between two geographic regions for international trade. Major lanes include Transpacific (Asia to North America), Transatlantic (Europe to North America), and Asia-Europe. Trade lane data helps identify freight flows and business opportunities.
InternationalThe time a shipment takes to travel from origin to destination, excluding pre-shipment waiting time or customs delays. Accurate transit time data is essential for delivery date commitments and supply chain planning across all modes.
TransportationSoftware helping shippers, brokers, and 3PLs plan, execute, and optimize freight movements. Includes carrier selection, rate management, load tendering, shipment tracking, and freight audit. The central technology platform for most logistics operations.
TechnologyA shipment filling an entire trailer by weight (up to 44,000 lbs) or volume. Travels directly from origin to destination with no intermediate stops, offering faster transit and lower damage risk than LTL.
TransportationA standardized pallet or container for loading cargo onto aircraft. Allows ground crews to assemble multiple items as a single unit, reducing aircraft turnaround time and improving weight and balance for safe flight operations.
Air FreightConsolidating individual items or packages into a single handling unit such as a pallet or container. Improves handling efficiency, reduces damage, and speeds loading and unloading across all transport modes.
WarehousingThe United States Mexico Canada Agreement that replaced NAFTA in 2020. Provides preferential tariff treatment for qualifying goods traded between the three countries. Rules of origin determine which goods qualify for duty-free or reduced-duty treatment.
InternationalServices beyond standard transportation or warehousing offered by logistics providers. Common VAS include kitting, labeling, repackaging, quality inspection, light assembly, and returns processing. Generate additional revenue for 3PLs and add convenience for shippers.
3PLCosts that change in proportion to shipment or production volume. In logistics, variable costs include fuel, labor, packaging, and per-unit carrier charges. Understanding variable versus fixed costs is essential for accurate freight pricing and profitability analysis.
FinanceA supply chain arrangement where the supplier monitors and replenishes the customer's inventory based on agreed stock levels. Reduces the customer's ordering burden and improves fill rates when suppliers have good real-time demand visibility.
InventoryA reduction in freight rates for shippers committing to a specified volume over a defined period. Negotiated in annual carrier contracts and reward high-volume shippers with lower per-unit transportation costs.
FreightSoftware managing all warehouse operations including receiving, putaway, picking, packing, and shipping. Provides real-time inventory visibility, directs labor with task interleaving, and integrates with TMS and ERP systems to coordinate freight flows.
TechnologyA shipping document describing a shipment and transport terms. Unlike a bill of lading, a waybill is non-negotiable and cannot transfer title to goods. Commonly used in rail and air freight where a negotiable document of title is not required.
DocumentationA warehouse picking method grouping orders into waves based on shipping deadlines, carrier cutoffs, or zones. Each wave is completed before the next is released. Improves labor scheduling and dock management in high-volume distribution centers.
WarehousingA shipping weight threshold at which a higher-weight shipment qualifies for a lower per-unit freight rate. Understanding weight breaks allows shippers to consolidate orders to reach favorable rate tiers and reduce total freight costs.
FreightCapital available for day-to-day operations, calculated as current assets minus current liabilities. In supply chain management, affected by inventory levels, supplier payment terms, and customer collection cycles. Optimizing inventory and payment terms frees up working capital.
FinanceA structured data format used to exchange information between supply chain systems. Commonly used in EDI integrations, TMS platforms, customs filing systems, and ERP interfaces to transmit shipment, order, and inventory data between trading partners.
TechnologyThe tracking and coordination of trailers and containers within a DC or manufacturing facility yard. Effective yard management reduces dock congestion, improves trailer utilization, and speeds inbound and outbound freight flows.
WarehousingSoftware providing real-time visibility into yard operations including trailer location, gate check-in and check-out, dock door assignment, and driver communication. Reduces detention charges and dock wait times by improving yard coordination.
TechnologyA supply chain strategy aiming to eliminate on-hand inventory by synchronizing production and delivery precisely with demand. Requires highly reliable suppliers, accurate demand signals, and responsive logistics partners to avoid production stoppages.
PlanningA warehouse picking method dividing the warehouse into zones with each picker assigned to a specific zone. Orders pass between zones until complete. Reduces travel time per picker and scales well in large, high-volume fulfillment operations.
WarehousingA parcel shipping strategy moving consolidated packages closer to their final destination using cheaper freight before injecting them into the parcel carrier network locally. Reduces per-package costs by bypassing higher rate shipping zones.
Transportation
