Supply Chain Glossary
Straightening out the language of supply chains
Shipment visibility refers to the ability of supply chain and logistics professionals to track and monitor the movement of goods throughout the entire logistics process, from the point of origin to the final destination. It involves real-time access to information about the status and location of goods as they travel through various stages of transportation and distribution.
The shipper is the entity or party who is responsible for the shipment. This can be dependent on the INCOTERMS under which the cargo moves. If there are any queries around this, please contact your Beacon Account Manager.
An enrichment to the original booking shared by the shipper to the carrier. The shipping instruction includes volume/weight, shipping dates, origin, destination and other special instructions. The information given by the shipper through the shipping instructions is the information, which is required to create the Bill of Lading.
Shipping lanes are predetermined routes used by ships and vessels for transporting goods and commodities across oceans and seas. These routes are established to ensure safe and efficient maritime navigation, taking into account factors such as water depth, currents, weather conditions, and proximity to ports.
A short shipment refers to a situation in logistics where the quantity of goods received by the consignee is less than what was originally shipped or expected. It can occur due to various reasons such as inventory discrepancies, packaging errors, transportation issues, or supplier mistakes. Short shipments can disrupt supply chain operations, delay production schedules, and impact customer satisfaction.
Joint term for cargo, which is not transported in a regular dry container or is considered dangerous goods. This also includes, but is not limited to out of gauge cargo.
All container types other than regular Dry or Reefer containers. Examples of these can be flat racks (open containers for oversized, irregular and/or heavy cargo), Open tops (fitted with a solid removable roof), etc.
The vessel operator's instructions to the terminal on the placement of containers on the vessel to prevent damage or loss, or to ensure safety and compliance.
The act of unloading cargo from containers or equipment.
The location where the process of unloading the cargo of a container takes place.
The process of loading the cargo in a container or in/onto another piece of equipment.
Supply Chain 3.0 represents the evolution of traditional supply chain management practices into a more advanced and interconnected model, driven by digital technology and data analytics. This next-generation supply chain approach focuses on enhancing visibility, agility, and collaboration across the entire supply chain ecosystem.
Supply Chain 4.0, an integral part of the broader concept of Industry 4.0 and Logistics 4.0, represents a paradigm shift in supply chain management driven by digital technologies and advanced analytics. It encompasses the integration of artificial intelligence (AI), machine learning, robotics, and the Internet of Things (IoT) to create smarter, more connected, and automated supply chain networks.
Supply chain automation involves the use of technology and software systems to streamline and optimize various processes within the supply chain, including inventory management, order fulfillment, transportation, and warehouse operations. It aims to reduce manual intervention, improve efficiency, and enhance overall supply chain performance.
Supply chain collaboration refers to the strategic partnership and cooperation among different entities within the supply chain, including suppliers, manufacturers, distributors, warehouses and retailers. It involves sharing information, resources, and responsibilities to optimize processes, improve efficiency, and achieve common goals.
A supply chain control tower is a centralized hub or platform that provides end-to-end visibility and orchestration of supply chain operations in real-time. It acts as a command center where supply chain professionals can monitor, analyze, and manage the flow of goods, information, and finances across the entire supply chain network.
Supply chain data refers to the information generated and collected throughout the entire supply chain process, from procurement of raw materials to delivery of finished products to customers. It encompasses various types of data, including inventory levels, transportation routes, freight tracking milestones, supplier performance, demand forecasts, and customer preferences. Supply chain professionals can analyze this data to gain insights, optimize processes, and make informed decisions to improve efficiency and planning.
Supply chain resilience refers to the ability of a supply chain to withstand and recover from disruptions while maintaining continuous operations and delivering products or services to customers without significant impact. It involves the capacity to anticipate, adapt, and respond effectively to various challenges, including natural disasters, geopolitical events, market fluctuations, and supplier disruptions.
Supply chain risk management refers to the process of identifying, assessing, and mitigating risks within a supply chain to ensure continuity and minimize disruptions. It involves analyzing all elements of the supply chain—from sourcing raw materials to delivering finished products—to anticipate and address potential vulnerabilities that could impact operations, finances, or reputation.
Also referred to as end-to-end visibility, supply chain visibility refers to the ability of organizations to track, analyze, communicate and monitor the flow of goods as they move across the entire supply chain, from raw material suppliers to end customers. It encompasses real-time data and insights into inventory levels, order statuses, transportation movements, and other key metrics, enabling stakeholders to make informed decisions and respond swiftly to changes and disruptions.
Supply planning is the process of aligning supply with demand to ensure that sufficient quantities of goods or materials are available to meet customer needs while minimizing costs and optimizing inventory levels. It involves forecasting demand, determining production or procurement requirements, scheduling production activities, and managing inventory levels to maintain a balance between supply and demand.
A facility for loading, moving or discharging containers. Terminals can be both inland terminals for trucks and rail or port terminals are accessed by vessels and these can contain multiple berths.
Upon completion of operations on a particular vessel, a terminal departure report (TDR) is to be sent to the respective shipping lines. This report, prepared from timesheets, includes container vessel operation data and tabulation of productivity. This can be in the form of the EDI-message TPFREP.
Each terminal has a set number of moves, which can be performed on a vessel during a port call. One move is usually defined as the movement (loading or unloading) of one container.
A trade lane (or trade route) refers to a specific pathway along which goods are transported between two or more locations, typically across international borders. Trade lanes are established based on the flow of goods and the economic relationships between countries or regions. They encompass both maritime and air routes and play a crucial role in global supply chains by facilitating the movement of goods and fostering international trade.
Transit time refers to the duration it takes for goods or shipments to travel from their origin to their destination. It is a crucial metric in supply chain and logistics management, as it directly impacts delivery schedules, inventory levels, and customer satisfaction. Transit time encompasses the entire journey of a shipment, including transportation, handling, and processing at various checkpoints along the route.
Transportation lead time refers to the duration it takes for goods to be transported from the point of origin to the final destination. It encompasses the time required for transportation activities, including loading, transit, and unloading, across various modes of transport such as road, rail, air, or sea.
A transshipment is the process of transferring goods from one transportation vehicle or vessel to another during their journey from origin to destination. It typically occurs at intermediary points along the supply chain route, where cargo is transferred between different modes of transportation, carriers or vessels.
Twenty-foot Equivalent Unit (TEU) is a standard unit of measurement used in the shipping industry to quantify the cargo-carrying capacity of container vessels. It represents the volume of a standard twenty-foot-long shipping container.
Verified Gross Mass (VGM) is a term used in the shipping industry to refer to the total weight of a packed container, including its contents and packaging materials. It is a crucial requirement mandated by the International Maritime Organization (IMO) under the Safety of Life at Sea (SOLAS) convention to enhance safety in maritime transportation.
A floating structure with its own mode of propulsion designed for the transport of cargo and/or passengers. In the Industry Blueprint 1.0 "Vessel" is used synonymously with "Container vessel", hence a vessel with the primary function of transporting containers.
An agreement between two or more shipping lines to share vessel capacity on specific routes to increase asset utilization.
The order and sequence in which a vessel calls the ports on its route.
The timetable of departure and arrival times for each port call on the rotation of the vessel in question.
A journey by sea from one port or country to another one or, in case of a round trip, to the same port.
Order for specific transportation work carried out by a third party provider on behalf of the issuing party.
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