The following set of concepts groups the field's terms into six thematic groups. Each concept should correspond as an object, a domain, or a rule within a broadly functional organizational system.
3.1 Basic Documents and Objects
A sales order is a commercial document that records what a customer wants, how much, at what price, and when. It is the starting point of the supply chain.
Delivery is a set of goods that will be delivered to a customer, at a specific address, on a particular date. It is derived from order items; picking and dispatching of goods are carried out on this item.
Shipment: A unit of transport loaded onto a vehicle or voyage, which may encompass multiple deliveries.
A freight order is a work order given to a carrier; it contains information about the route, cost, responsibilities, and deadlines.
A delivery note is a legal document that records where the goods are being shipped, by whom, and by what means. It is essential to have the document accompanying the goods.
A consignment note is a document issued by the carrier regarding the cargo being transported by the vehicle. It is a different document from a shipping invoice.
A Shipment Notification (ASN) is an electronic message informing the recipient in advance of the contents of an incoming shipment. It speeds up the receipt of goods.
Packing List: A detailed list of the contents of boxes and pallets in a shipment.
Proof of Delivery (POD): A signature, stamp, photograph, or electronic confirmation showing that the goods have been received.
Goods Issue: The moment when inventory is reduced and the cost is accounted for. It's the systemic equivalent of transferring ownership and risk.
3.2 Warehousing and Preparation Processes
Picking is the process of gathering ordered items from warehouse shelves. This activity consumes a significant portion of the warehouse workforce.
Task Collection List / Task List given to the Task Collector, optimized according to location order.
Wave Picking: The process of collecting orders in bulk, grouped according to vehicle departure time or region.
Bulk and Zone Picking: Picking multiple orders simultaneously, or dividing the warehouse into zones and having each zone pick its own share.
Sorting: The process of separating bulk goods based on orders.
Allocation: The process of reserving a specific quantity of stock for a particular order; preventing other orders from using this stock.
The harvesting rule determines which batch, serial number, or location will be harvested first: first in, first out, by expiration date, or closest location.
Packing: The process of placing goods into boxes, pallets, or containers and creating transport units.
A handling unit is a physical package whose contents are defined, labeled, and tracked with a single identifier. It is the cornerstone of shipment traceability.
The Serial Shipping Container Code (SSCC) is an international standard for uniquely numbering shipping units.
Loading: The process of loading transport units onto the vehicle and creating a loading record.
3.3 Planning and Commitment
Availability Check (ATP) : Checking at the time of ordering whether the requested quantity can actually be delivered on the requested date.
Delivery Date Based on Capacity (CTP): If there is no stock, a delivery date will be given based on production capacity.
Delivery Promise: The delivery date committed to the customer. It is the most visible promise of a business.
Backward Scheduling: Calculating transportation time, loading time, picking time, and material preparation time backward from the desired delivery date.
Delivery Window: The time and date range during which the customer receives the goods. In chain supermarkets, delivery is not possible without an appointment.
The delivery schedule is a plan that defines which region receives which vehicle on which day. It determines the realism of the delivery promise.
Consolidation is the process of combining multiple deliveries into a single vehicle. It's the most powerful leverage for reducing transportation costs.
Delivery Split: When an order is divided into multiple deliveries due to stock or vehicle constraints.
Partial Delivery: A portion of the order is shipped first. This may be permitted or prohibited depending on customer agreement.
Delivery Block: Shipment systematically halted due to credit limit, quality approval, or missing documentation.
3.4 Transportation and Logistics
Route Planning: Determining the order in which stops are made, taking into account distance, time, vehicle capacity, and delivery window constraints.
Vehicle utilization rate indicates how much of the vehicle's volume and weight capacity is being used. It is the most basic efficiency indicator of a transportation unit.
Full Load / Partial Load (FTL / LTL): This refers to an entire vehicle being allocated to a single shipment, or the cargo of multiple shippers being transported in the same vehicle.
Carrier Selection : Determining the most suitable carrier based on cost, time, capacity, and performance.
Freight Rate: A pricing structure where carrier charges are defined according to distance, weight, volume, region, and vehicle type.
Additional Charges (Accessorials) include extra items such as waiting time, fuel surcharge, doorstep delivery, address change, and elevator transport.
Deadheading refers to a vehicle traveling without a load. It's one of the biggest losses for businesses that own their own fleets.
A milk-run is when a single vehicle collects or delivers goods to multiple points along a specific route.
Cross-docking refers to the transfer of incoming goods directly to the departure vehicle without first being taken to the warehouse.
A hub is an intermediate point where shipments are collected and redistributed.
Last Mile : This is the final and most expensive leg of the distribution; it constitutes a significant portion of the total transportation cost.
3.5 International and Legal Concepts
Incoterms are international rules defining the point at which costs, risks, and responsibilities are transferred between the buyer and seller.
A certificate of origin is a document that certifies the country in which the goods were produced; it affects the customs duty rate.
A Certificate of Customs Duty is a document that provides customs advantages under preferential trade agreements.
A bill of lading is a document that proves the carrier has received the goods and often has the status of a valuable document.
A customs declaration is an official declaration submitted to the customs administration during export or import.
A letter of credit is a guarantee from the bank that payment will be made if the required documents meet the conditions. Document errors pose a direct risk of non-payment.
Dangerous Goods Transportation: Special packaging, labeling, documentation, and vehicle regulations applied when the transported cargo falls into the category of dangerous goods.
Authorization Certificates are mandatory documents for road transport operations, depending on the type of activity.
Electronic Notification Systems: Obligations to legally report transportation and shipment data electronically.
3.6 Performance and Experience
On-Time and Complete Delivery (OTIF) is the percentage of orders delivered both on time and in full. It's a key indicator of successful shipments.
Fill Rate: The percentage of an ordered quantity that can be fulfilled.
Perfect Order refers to the percentage of orders that arrive on time, complete, undamaged, and with correct documentation.
Order Turnaround Time: The total time from the receipt of an order to its delivery.
Estimated Time of Arrival (ETA) : The estimated arrival time of the shipment is expected to be updated with live location data.
Tracking (Track & Trace): Allows you to check the real-time status and past movements of your shipment.
Cost Per Delivery : The total cost of a delivery, when considered along with order size, guides profitability decisions.
Damage and Missing Item Rate: The percentage of damaged or missing items identified upon delivery.
Reverse Logistics: Managing returns, recalls, packaging returns, and product recovery.