LOGISTICS DICTIONARY
Find definitions and terms used in logistics, shipping, and supply chain
management
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Terms Starting with "A"
ABC Analysis :
ABC analysis is an inventory management technique that classifies stock items into three categories—A, B, and C—based on their economic value or importance to the business, typically measured by annual consumption value (demand × unit cost). Key Components
Accord Dangereux Routier ADR :
The Accord Dangereux Routier (ADR), which translates from French as “Agreement on Dangerous Goods by Road,” is a comprehensive European treaty that establishes standardized regulations for the international transport of dangerous goods by road. Governed by the United Nations Economic Commission for Europe (UNECE), ADR provides a unified legal framework that harmonizes safety requirements, classification systems, and operational procedures across participating countries to ensure the safe movement of hazardous materials while protecting people, property, and the environment. Key Regulatory Requirements :
Account Payable (A/P) :
Accounts Payable (A/P) refers to the short-term financial obligations a business owes to its suppliers, vendors, or service providers for goods and services that have been received but not yet paid for. In logistics and supply chain operations, A/P represents amounts owed for transportation services, warehousing, freight forwarding, packaging materials, and other operational expenses purchased on credit. These obligations are recorded as current liabilities on the balance sheet and are typically due within 30 to 90 days, depending on the agreed-upon payment terms with each vendor. Key Characteristics
Account receivable (A/R) :
Accounts receivable (AR) refers to the outstanding money owed to a company by its customers for goods or services that have been delivered or rendered on credit but not yet paid for. This amount is recorded as a current asset on the company’s balance sheet because it represents a legal obligation from customers to pay within a short timeframe, typically within 30 to 90 days. In logistics and supply chain operations, accounts receivable directly impacts cash flow and working capital, as it represents near-term expected cash inflows needed to fund ongoing operations such as inventory purchases, carrier payments, and facility costs. Key Components
Actual Time of Arrival (ATA)Â :
 Actual Time of Arrival (ATA) is the confirmed date and time when a shipment, vehicle, container, or vessel physically reaches its designated destination. Unlike estimated arrival times, ATA represents a recorded, verifiable event captured by tracking systems, warehouse management systems, or transportation management platforms. This timestamp serves as an official logistics milestone that updates shipment status, validates performance against service-level agreements (SLAs), and triggers downstream activities such as receiving, unloading, customs clearance, or billing processes. Key Components
Actual Time of Departure (ATD)Â :
 Actual Time of Departure (ATD) is the precise, confirmed time at which a shipment, vehicle, vessel, or aircraft physically departs from its origin point or designated location. Unlike estimated or scheduled departure times, ATD represents the factual moment of departure as recorded by logistics systems, serving as a critical data point for supply chain visibility, performance measurement, and downstream planning. This timestamp is typically captured automatically through gate systems, GPS devices, or transportation management systems at the exact moment the conveyance exits the facility or port. Key Characteristics
Advance Filing Rule (AFR) :
 The Advance Filing Rule (AFR) is a customs security regulation that requires carriers, freight forwarders, or importers to electronically submit detailed cargo information to customs authorities before a vessel departs from its port of origin. This mandatory pre-arrival filing enables customs agencies to conduct risk assessments and security screenings of incoming shipments before they reach the destination country’s borders. AFR is primarily enforced for ocean freight shipments entering specific jurisdictions, most notably Japan and China, though similar advance filing requirements exist in various forms across multiple countries worldwide. Key Characteristics
Advice Note :
An Advice Note is a formal business document issued by a supplier or shipper to notify a customer or consignee that goods have been dispatched and are in transit. This document serves as advance notification of an impending delivery, providing essential details about the shipment including item descriptions, quantities, shipping method, and expected delivery timeframe. The advice note functions as a communication bridge between the sender and receiver, enabling the receiving party to prepare for incoming goods and verify shipment details against purchase orders. Typical Contents
Air Cargo :
Air cargo refers to the transportation of goods, commodities, and materials via aircraft as part of commercial aviation operations. This mode of freight transportation encompasses various service categories including air freight, air express, and air mail, each designed to meet different shipping requirements and urgency levels. Types of Air Cargo Services Key Characteristics
Air Freight :
 Air freight is the transportation of goods and cargo via aircraft, utilizing either commercial passenger airlines or dedicated cargo freighters to move shipments domestically and internationally. This logistics mode involves a comprehensive process encompassing cargo pickup, documentation preparation, customs clearance, air transport, and final delivery to the consignee. Air freight serves as a critical component of global supply chains, offering the fastest transit times for moving goods across long distances, making it particularly valuable for time-sensitive, high-value, perishable, or urgent shipments that require expedited delivery. Key Characteristics
Air Waybill (AWB) :
 An Air Waybill (AWB) is a legally binding, non-negotiable document issued by an air carrier or its agent that serves as a contract of carriage, a receipt for cargo, and a tracking instrument. It includes standardized fields detailing the shipper and consignee information, carrier details, departure and destination airports, and a description of the cargo—including pieces, weight, dimensions, handling requirements, and declared value for liability and customs purposes. Each AWB carries a unique 11-digit tracking number (three-digit airline prefix plus eight-digit serial) for real-time shipment visibility. The document also lists all applicable charges, including freight, fuel, security, and special services, along with payment terms, indicating whether charges are prepaid or collect.
All-Cargo Aircraft :
Key Characteristics
Allgemeine Deutsche Spediteurbedingungen (ADSp) :
Allgemeine Deutsche Spediteurbedingungen (ADSp), translated as General German Freight Forwarders’ Terms and Conditions, is a standardized set of contractual terms and conditions that govern freight forwarding services in Germany. These terms establish a comprehensive legal framework defining the rights, obligations, and liabilities between freight forwarders and their business clients throughout the transportation and logistics process.
Allocated Stock :
 Allocated stock refers to inventory that has been reserved or earmarked for a specific customer, sales order, production requirement, or contractual obligation. While this inventory remains physically present in the warehouse or distribution center, it is not available for general sale or alternative use until the allocation is fulfilled or released. This intentional reservation process ensures that committed demand is prioritized and protected from being sold to other customers or diverted to different purposes. Key Characteristics
AMS Filing :
AMS Filing (Automated Manifest System Filing) is the mandatory electronic submission of detailed cargo and shipment information to U.S. Customs and Border Protection (CBP) prior to goods arriving at a U.S. port of entry. This regulatory requirement, implemented as part of the U.S. government’s cargo security initiatives following the Trade Act of 2002, enables CBP to conduct advance risk assessments and security screenings of incoming shipments before they physically reach U.S. territory. Key Characteristics Relationship to Importer Security Filing (ISF)
Animal Transport :
Operational Requirements
Application Service Provider (ASP)Â :
An Application Service Provider (ASP) is a third-party company that delivers, manages, and hosts software applications and related IT services to multiple clients remotely over a network, typically via the Internet. Rather than purchasing, installing, and maintaining software on local servers or individual computers, organizations access these applications through web browsers or secure network connections on a subscription or usage-based pricing model. Key Characteristics
Articulated Lorry :
 An articulated lorry is a large commercial transport vehicle consisting of two separate components: a powered tractor unit (cab or prime mover) and a detachable semi-trailer, connected by a pivot joint mechanism known as the fifth wheel coupling. This articulation point allows the two sections to move independently at an angle, providing enhanced maneuverability compared to rigid vehicles of equivalent length. Key Components
ASP :
An Application Service Provider (ASP) is a third-party entity that delivers and manages software applications to customers over the internet or a private network. Rather than purchasing and installing software locally, organizations access these applications remotely through web browsers or thin clients, with the ASP handling all hosting, maintenance, updates, and technical support. Key Characteristics
Assemble to Order :
 Assemble to Order (ATO) is a hybrid production strategy in which products are assembled from pre-manufactured components only after a customer order is received. This approach maintains an inventory of standardized parts and subassemblies rather than finished goods, enabling companies to offer product customization while minimizing the risks and costs associated with holding completed inventory. Key Benefits
ATA Carnet :
 An ATA Carnet is a standardized international customs document that serves as a temporary passport for goods, allowing businesses and professionals to temporarily import merchandise into foreign countries without paying customs duties, import taxes, or posting bonds. Issued under the terms of the ATA Convention (Admission Temporaire/Temporary Admission) and the Istanbul Convention, this document replaces individual customs documentation normally required for temporary imports in each country visited. The carnet acts as both a customs declaration and a guarantee against the payment of duties and taxes, which would otherwise be due if the goods were not re-exported. Key Characteristics
ATR Certificate :
An ATR Certificate (ATR Movement Certificate) is a specialized customs document used exclusively for trade between the European Union (EU) and Turkey under the EU-Turkey Customs Union agreement. This certificate confirms that goods are in “free circulation” within either the EU or Turkey, enabling them to move between these territories with preferential tariff treatment or duty-free status. Unlike a standard certificate of origin, the ATR Certificate does not certify where goods were manufactured but rather proves they have cleared customs and are legally circulating within the customs union territory, making them eligible for preferential treatment when crossing between EU and Turkish borders. Key Characteristics
Authorised Economic Operator (AEO)Â :
An Authorised Economic Operator (AEO) is a certification status granted by national customs authorities to businesses involved in international trade that have demonstrated compliance with rigorous customs, security, and safety standards. This designation identifies the holder as a trusted, low-risk partner in the international supply chain, having met comprehensive criteria related to customs compliance history, financial solvency, safety and security standards, and administrative systems. The AEO concept is rooted in the World Customs Organization’s (WCO) SAFE Framework of Standards to Secure and Facilitate Global Trade, which aims to balance supply chain security with trade facilitation. By achieving AEO status, businesses gain access to significant operational benefits including expedited customs clearance, reduced physical inspections, priority treatment during customs processing, and mutual recognition agreements with other countries’ customs authorities.
Automatic Identification System (AIS) :
An Automatic Identification System (AIS) is a shipboard communication and tracking system that automatically broadcasts and receives vessel identification, position, course, speed, and navigational status information via VHF (Very High Frequency) radio waves. Operating continuously and autonomously, AIS enables real-time vessel-to-vessel and vessel-to-shore communication, enhancing maritime safety, collision avoidance, and traffic management. The system is mandated by the International Maritime Organization (IMO) under the International Convention for the Safety of Life at Sea (SOLAS) for commercial vessels over 300 gross tons on international voyages, passenger vessels, and certain other vessel categories.
Automatic Small Parts Warehouse :
An Automatic Small Parts Warehouse (ASPW), also known by its German acronym AKL (Automatisches Kleinteillager), is a highly automated storage and retrieval system specifically designed for the efficient handling, storage, and picking of small-sized items, components, and containers. This system utilizes advanced automation technology—including stacker cranes, shuttle systems, conveyors, and robotic mechanisms—to manage inventory with minimal human intervention in the storage and retrieval processes Key Characteristics
Average Storage Period :
The Average Storage Period is a key performance indicator (KPI) that measures the average length of time inventory items remain in storage before being sold, consumed, or moved out of the warehouse. This metric quantifies the duration between when goods are received into storage and when they are dispatched, providing critical insight into inventory velocity and capital efficiency. Expressed typically in days, weeks, or months, the Average Storage Period serves as a fundamental measure of warehouse operational efficiency and inventory management effectiveness. Calculation Method
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