Glossary
The Logistics Industry Definitions in this page are related to operations that Scantibodies Freight and Logistics manages during Third-Party Logistics (3PL), Warehousing and Cargo Transportation services.
Third-Party Logistics (3PL)
Third-Party Logistics (3PL) refers to the outsourcing of a company’s logistics and supply chain management functions to an external provider. These services typically encompass transportation, warehousing, inventory management, order fulfillment, and distribution. By leveraging 3PL services, businesses can focus on their core competencies while benefiting from the expertise, infrastructure, and scalability that specialized logistics providers offer.
Warehousing
Warehousing involves the storage of goods in a dedicated facility, ensuring their safekeeping, organization, and management until they are needed for distribution or sale. This process includes inventory control, security measures, and often, climate control to maintain product integrity.
Import / Export
Import and Export refer to the processes of bringing goods into a country (importing) and sending goods out of a country (exporting) for trade or sale. These activities are fundamental to international trade, enabling businesses to access a broader range of products and markets. Effective import and export operations require compliance with various regulations, documentation, and coordination with customs authorities to ensure the smooth movement of goods across borders.
Distribution
Distribution is the process of delivering products from a manufacturer or supplier to the end user or retail outlets. It encompasses activities such as order processing, inventory management, transportation, and logistics coordination to ensure timely and efficient delivery of goods.
Cargo Transportation
Cargo transportation refers to the movement of goods from one location to another using various modes of transport, such as trucks, ships, trains, or airplanes. This process ensures that products reach their intended destinations safely and efficiently, often involving logistics planning, route optimization, and adherence to regulatory standards.
C-TPAT
The Customs-Trade Partnership Against Terrorism (C-TPAT) is a voluntary initiative led by U.S. Customs and Border Protection (CBP) that aims to strengthen the security of international supply chains against terrorism. By collaborating with the trade community, C-TPAT focuses on enhancing security measures from the point of origin through distribution to the final destination.
Logistics
Logistics encompasses the planning, implementation, and management of the efficient movement and storage of goods, services, or information from the point of origin to the point of consumption. This process includes transportation, warehousing, inventory management, order fulfillment, and distribution, ensuring that products reach their destinations in a timely and cost-effective manner.
Reverse Logistics
Reverse logistics is the process of moving goods from their final destination back to the manufacturer or distributor for return, repair, remanufacture, recycling, or disposal. This aspect of supply chain management focuses on recapturing value or ensuring proper disposal of products, thereby contributing to sustainability and cost reduction.
Less than Truck Load (LTL)
Less-than-truckload (LTL) shipping is a freight transportation option for shipments that do not require the full space of a truck. Typically, LTL shipments weigh between 150 and 15,000 pounds and are consolidated with other shipments to optimize truck capacity and reduce shipping costs.
Full Truck Load (FTL)
Full Truckload (FTL) shipping refers to the transportation of goods that occupy the entire capacity of a truck or trailer. In this mode, a single shipment utilizes the whole vehicle, allowing for direct transit from the origin to the destination without additional stops for other cargo. FTL is typically chosen for large shipments that can fill a truck or when a shipper prefers exclusive use of the transportation vehicle.
Fulfillment
Fulfillment refers to the process of receiving, processing, and delivering customer orders. This encompasses inventory management, order processing, packaging, and shipping, ensuring that products reach customers accurately and promptly.
Cross-Border Logistics
Cross-border logistics refers to the management of the flow of goods, services, and information across international boundaries. This process involves coordinating various logistical activities such as transportation, warehousing, customs clearance, and distribution to ensure that products move efficiently from one country to another. Effective cross-border logistics require compliance with diverse regulations, thorough documentation, and collaboration with customs authorities to facilitate the smooth movement of goods across borders.
IMMEX
The IMMEX (Industria Manufacturera, Maquiladora y de Servicios de Exportación) program is a Mexican government initiative designed to promote foreign investment and boost the country’s economy. Established in 2006, it allows foreign companies to import raw materials, components, and machinery into Mexico tax-free for use in the manufacturing process, provided the finished products are exported. This program offers benefits such as import duty deferral and a value-added tax (VAT) exemption on imported goods and equipment.
Inventory Control Management
Inventory Control Management is the process of overseeing and regulating a company’s inventory levels to ensure optimal stock availability. This involves tracking stock quantities, monitoring customer demand, and implementing systems to prevent overstocking or stockouts. Effective inventory control helps businesses maintain the right balance of products to meet customer needs while minimizing holding costs.
Cargo Manifest
A Cargo Manifest is a comprehensive document that itemizes all goods being transported aboard a vessel, aircraft, or vehicle. It provides detailed information about each item, including descriptions, quantities, weights, consignor and consignee details, and associated transportation document numbers. This manifest is essential for customs clearance, regulatory compliance, and efficient cargo management during transit.
Just In Time (JIT)
Just-in-Time (JIT) is an inventory management strategy that aligns material orders and production schedules directly with actual demand. By receiving goods only as they are needed in the production process, companies can reduce inventory holding costs and minimize waste. This approach requires precise demand forecasting and efficient coordination with suppliers to ensure materials arrive exactly when required.
Just In Case (JIC)
Just-in-Case (JIC) inventory management is a strategy where businesses maintain a larger-than-necessary inventory of materials, components, or finished goods as a precautionary measure to mitigate potential supply chain disruptions or uncertainties. This approach ensures that companies can continue operations smoothly even when unexpected events occur, such as supplier delays or sudden demand spikes.
Scantibodies Freight and Logistics is a division of Scantibodies Laboratory, Inc.
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