Logistics Terms Glossary

A

ABC Classification Method: Classification of stock items/products according to their circulation, amount, value, etc. criteria.

Acceptance Credit: A payment method, which undertakes payment of the cost of goods at a certain maturity and in which a policy is the instrument of this payment. In other words, it is a payment method in which the seller is paid an acceptance credit based on the maturity date stated in the policy . This credit is used when the importer or its bank accepts the policy, which is submitted with the document. In payments with acceptance credit, banks act as intermediaries for the parties and charge a fee for this service. If the policy drawn up by the seller is accepted only by the buyer, then a “trade acceptance” has occurred. When it is foreseeable that the bank will accept the policy, the bank either accepts it or signs a surety for importer’s acceptance, which is called “banker’s acceptance.” In this payment method, when the importer wishes to make a deferred purchase, the exporter secures itself with acceptance or signing of surety for the policy by the bank.

Access Space: A passage used to access rack compartments and stacks. It is used for the purpose of counting materials.

Active Block: Stacking the loads, which are worked on, and on/from which articles put/removed as required.

Address: Locations that are set with physical borders within the logistics facility and entered into the system with an identification number.

Addressing: During an operation inside the logistics facility, placing the products or transportation units (baskets, parcels, pallets, etc.) physically at an address within the facility and registering them in the system by matching the identification number with the identification number of the location they are placed at.

ADR: A standard that governs road transportation of combustible, inflammable and explosive materials, and that the vehicles and drivers are required to hold in order to carry these materials.

Classifications are as follows:
Class 1: Explosive substances
Class 2: Gases
Class 3: Flammable liquids
Class 4.1: Flammable solids
Class 4.2: Substances liable to spontaneous combustion
Class 4.3: Substances which, in contact with water, emit flammable gases
Class 5.1: Oxidizing substances
Class 5.2: Organic peroxides
Class 6.1: Toxic substances
Class 6.2: Infectious substances
Class 7: Radioactive substances
Class 8: Corrosive (acidic) substances
Class 9: Miscellaneous dangerous substances

Agent: An enterprise or individual that provides services on behalf of a logistics company in an area outside the latter’s center of operations.

Agreement: Memorandum of understanding entered into between the parties to establish the conditions clearly and beforehand for supply services.

Air Waybill (AWB): A non-negotiable waybill between the sender and the airway transportation.

Aisle: A passageway in a warehousing area.

Alignment: Urging, encouraging and enticing all parties in the supply chain for a better chain performance.

Allocated Stock: A stock that is set aside in required amount according to a work or purchase order for a certain product.

ATA Carnet: A document that serves as collateral and is accepted as declaration. It allows temporary importation of goods without being subject to customs duty between the countries within the scope of international import agreement.

ATR Movement Certificate: A document drawn up by the exporter to benefit from customs exemption for exports of goods in free circulation in accordance with the Customs Union Agreement signed between Turkey and the European Union.

Automated Storage and Retrieval System (AS/RS): A storage system on which goods are placed or removed and shipped by taking them from their locations in the warehouse by computer-operated equipment, and in which horizontal- and vertical-moving robots operate on each rack aisle for placing and picking up materials.

Available to Promise: Planned stock amount that shows the time that future orders can be fulfilled.

Average Inventory: Average level of stock that is kept for a product, group of products, or all products at a certain period.

B

Back-to-Back Rack System: The most widespread, economic and extensively used rack system that is highly suitable for pallet use. Front sides of the racks face the aisle and the back sides remain close to each other. They provide direct access to all product types, and can be used manually or with handling equipment.

Barcode: Line-space combinations in varying thicknesses that can be transferred into computer environment as numbers, characters or their mixture by using a optical reading device as part of automatic identification technology.

Bill Of Lading: A loading instruction document that contains all the detailed information about the sender and receiver, and information such as loading place and date, the place of delivery, type, amount, gross weight and delivery method of the goods.

Bonded Warehouse: A type of storage in which dutiable goods are kept during customs process while being processed for the necessary export transactions.

Border Checkpoint: Country borders to and from which export and/or import vehicles enter or leave along their transit routes.

Box Label: A label on the exterior surface of the boxes used in transportation, showing destination and/or box content information.

Box: A package in different sizes that contains various goods.

Buffer Stock: The stock that is kept between business centers to balance the product flow.
Bulk Cargo: Loading type, in which the cargo is not inside a transportation case to be handled with an equipment and which handling requires touching the cargo.

Bunker Adjustment Factor (BAF): Freight item that is set monthly as a protection against oil price fluctuations.

Buyer: The party that buys the product.

C

Cabotage: In maritime trading, transportation authorization that a country gives only to the shippers that carry its own flag. It also serves as a work permit for commercial vehicle drivers delivering in other countries.

Cantilever Rack: A rack that has an open front and horizontal carrying wings and is used to stack side by side or on top of each other especially long items such as profiles, pipes, plates, plastics, wood, etc.

Capacity: The highest production (output) amount that can be achieved under established conditions, time and other criteria.

Cargo: Goods, products or items that are transported.

Carriage and Insurance Paid To (CIP): Cost of goods, insurance and freight delivery in international trading. It is used for all types of transportation. Seller delivers the exported, customs duty-paid goods to a forwarder of its choice or to another party at a designated location (if the parties agreed to such a place) and pays the transportation costs. Seller draws up an insurance agreement and pays for the minimum coverage required based on the loaded goods.Seller is considered to have completed its delivery obligation not when the goods are delivered to the destination, but when they are delivered to the forwarder.

Carriage Paid To (CPT): Cost of goods and freight delivery in international trading. It is used for all types of transportation, especially multi-vehicle transportation. Seller delivers the exported goods, after the related customs duty is paid, to a forwarder of its choice or to another party at a designated location (if the parties agreed to such a place) and pays the transportation costs. As a general rule, all goods-related risks and non-freight expenses are transferred to the buyer when the goods are handed over to the first freight forwarder.

Cash Against Documents (CAD): Payment method stipulating delivery of documents to the importer upon payment of the export amount by the importer’s bank into the exporter’s bank. Afterwards, the importer has the right to clear the goods from customs with the payment documents it has received. This payment method is called cash against documents.

Cash Against Goods: Payment method that involves payment of the cost of exported goods after the importer takes delivery of them.

Cash in Advance: Payment method in which the importer pays the cost of goods to the exporter before the actual export.

Certificate of Origin: An international trading document that shows the origin of the goods in circulation, in other words its place of manufacture, and thus, which country it belongs to.
Certificate of Receipt: A document that authenticates that the relative party has taken over the responsibility of the goods with a signature or stamp upon delivering or receiving them to/from the company, supplier or customer which offers warehousing, transportation and/or value-added services.
CMR Road Waybill: Freight forwarder draws it up on behalf of the buyer. It is a legal evidence that shows that the goods have been received in good condition to be transported under the stated conditions and that the transportation agreement has been made.

Code: Numeric or alpha-numeric presentation of text to classify shared information by sorting them.

Combined Transportation: Transportation system, in which roads are used during start and end stages of the shipment, and in which long-distance transportation involves railway, river, channel or seaway shipping.

Commodity: The name given to all traded goods and products.

Concealed Damage: When products in a seemingly undamaged state are discovered to have been damaged.

Consignation: A type of export that involves sending goods to foreign buyers, brokers, or exporter’s representatives abroad to complete the final sales later on. The persons or organizations that take delivery of the goods sell them at market value, deduct commissions and similar expenses from the sales revenue, and send the exporter the remaining amount in foreign currency via the authorized bank.
Consignment Inventory: Good that are paid for when used, not when received.

Consolidation: Achieving volume savings by creating large loading parties from small amounts of loads.

Constant Improvement: Continuous operations that aim to plan, implement and control activities, and take measures to improve performance.

Container: Standard metal load cases that are durable against all atmospheric conditions, are used especially in sea transportation-linked combined transportation, can be handled easily with loads that can be stacked on top of each other inside.

Contingency Plan: A plan that shows the measures that will be taken against unexpected future events.

Continuous Replenishment: Coordinating the flow of goods and information in the supply chain to achieve constant product flow and have less products in retail stocks.

Contract Logistics: Logistics operations based on a contract between logistics service providers and customers by using outside resources.

Contract Warehouse: A warehouse at which warehousing operations are conducted on behalf of customer(s) according to a contract.

Convention on the Contract for the International Carriage of Goods By Road: A certification of cargo transportation by road in countries that signed off on the international CMR Convention provisions. It shows that transportation is done according to the provisions of CMR. Sender or the logistics company draws it up on behalf of the buyer.

Conveyor Belt System: Conveyors with a carrying surface that is made up of components such as plastic or rubber to haul items, including boxed, packaged, or bulk materials.

Conveyor: Closed circuit-operated continuous transfer mechanism that carries load through the air or surface. It is a constant carrying equipment used to haul various cargo and materials.

Cost and Freight (CFR): Cost of goods and freight delivery in international trading, used only for maritime and inland water transportation. The seller delivers the goods to the loading port by undertaking all costs and risks, and the goods are brought onto the ship after the customs duty for export is paid. Risk of damage and loss of goods transfers to the buyer once the goods are loaded onto the ship; costs are transferred to the buyer at the destination port.

Cost, Insurance and Freight (CIF): Cost of goods, insurance and freight delivery in international trading, used only for maritime and inland water transportation. The seller delivers the goods to the loading port by undertaking all costs and risks, and the goods are brought onto the ship after the customs duty for export is paid. In addition, the seller draws up an insurance agreement for the minimum coverage amount in the name of the buyer, to protect against loss or damage sustained during shipment. Risk of damage and loss of goods transfers to the buyer once the goods are loaded onto the ship; costs and risks are transferred to the buyer at the destination port.

Countertrade: Direct and simultaneous exchange of two groups of goods, which are considered to be of same value, with a single contract without a financial payment or fund transfer. Barter contracts usually consist of one-time deals, not long-term or regular transactions with the same customer.

Crane: A vehicle that is used to hoist and move heavy loads.

Cross Docking: Products obtained from the supplier are delivered by sorting them according to customer needs without taking them into inventory and by keeping them in their container to prevent disruption to the content.

Currency Adjustment Factor (CAF): Addition of the US currency fluctuations to the freight.
Customer Relationship Management: Providing customers with more effective and efficient service through multi-dimensional and cross analyses of customer specifications and marketing activities.

Customer: The organization or person to whom the products and services are sold.

Customs Declaration: A declaration document that states the specifications, dimensions and features of the goods that are due to enter or exit customs offices or the country or that will be subject to transit or other transactions. It is drawn up in copies.

Customs Permit: A customs document that states that all legal requirements have been fulfilled and the vehicle can leave.

Customs Registration: Submitting the customs declaration, which exporter, importer or customs agent prepares, for customs approval so that the commodity can be imported.

Customs Union: A covenant that aims to facilitate import transactions between one or more countries, remove or reduce customs duties, and put in place the same customs tariff in all countries.

Cycle Counting: A scheduled stock counting and recording process that is performed at certain cycles to ensure stock accuracy.

D

Damage: All damages that cause loss of value as a result of tearing, cracking, breaking, disintegration, deformation, getting wet, etc. during operations such as transportation, storage, handling, and so on with regard to the goods.

Dangerous Goods: Items that require special attention during transportation and warehousing due to the risk of damage to health, safety and other items in the environment it is in.

Declared Value: The value of the goods as declared by the sender.

Dedicated Storage Policy: The policy of storing each product on a place especially dedicated for it.

Delivered At Place (DAP): Cost of goods, insurance, freight, and domestic transportation-paid delivery method in international trading that is used for all types of transportation, including multi-transportation.Seller delivers the goods into the possession of the buyer at the designated destination without unloading them from the transportation vehicle. Seller undertakes all damages and costs related to transportation of the goods to the designated destination. Seller undertakes all costs until the destination is reached; the buyer is responsible for customs transactions and costs.

Delivered At Terminal (DAT): Cost of goods, insurance, freight, and domestic transportation delivery in international trading. It is used for all types of transportation, including multi-transportation.Seller delivers the goods into the possession of the buyer at the designated destination or port terminal. The seller unloads the goods from the transportation vehicle. In DAT, the goods are delivered to the buyer and the seller undertakes any unloading costs incurred at the terminal point designated by the buyer and seller.

Delivered Duty Paid (DDP): Cost of goods, insurance, freight, and domestic transportation delivery in international trading. It is used for all types of transportation, including multi-transportation. Seller’s delivery liability ends once the seller prepares the goods for disposal at the designated location in the import country. Seller bears the risks and expenses, including taxes, duties and other fees, required to transport the goods to that point, as well as costs related to clearing import customs.

Delivery Note: An official document that is used to record all quantitative movements of assets in all types of businesses with commercial goods, raw materials, scraps, and fixed assets.
Delivery Note: An official document that proves Treasury-approved delivery of goods when the sold product is sent from one place to another.

Delivery Order: An order and instruction that allows clearance of the goods stated in the bill of lading in parts. It is also an order for customs clearance of the goods against the bill of lading.

Delivery Time: The date and/or time when an item is delivered to customer.

Demand Forecasting: Using various projection approaches according to certain conditions to determine quantitative and/or qualitative values for product and service demand.

Demand Planning: Determining the demand for a product or service for a foreseeable period (one, three, six, or 12 months) based on product family, product or location by taking into consideration past sales as well as a scenario of affecting future factors.

Demand: The need that arises for a certain amount of a certain item.

Demurrage: A penalty charge that applies when the ship exceeds the allocated loading or unloading period, or when the goods waiting inside the container are not cleared from customs and unloaded.

Dimensions of vehicles: Length, width and height of vehicles loaded or without load in order to ensure safe travel on roads.

Direct Shipment: Sending the goods to customer without a storage operation.

Distributed Inventory: Having the same material stock in various places.

Distribution Center: Logistics facilities in which storage, value-added operations, handling, packaging, and shipment operations take place until the time of distribution of products received from supplier.

Distribution Channel: Entirety of the goods/services produced and/or offered by the business, and of the connection points in the flow from the business to the end-user.

Distribution Network: A system that identifies the factors such as warehouses, routes, sales points, etc. during the process from product forwarding locations to delivery locations.

Distribution: A complete process that is conducted to transport and deliver (send) the products to the stated locations according to the stipulated time, amount and other conditions.

Dock Leveler: A piece of equipment that allows handling equipment to move around between the warehouse and vehicle body. Its moving form eliminates the height difference between vehicle bodies of different heights and the warehouse floor, acting like a bridge in between.

Document: Any form such as an invoice, purchase order, etc.

Drive-Through Rack: A rack, which allows stacking equipment to go inside the rack from the aisle, makes deep stacking of pallets possible, and thus minimizes the area of space allocated as aisle, and in which minimum type of goods are stored in maximum numbers with the use of rails instead of traverses. It puts in place an operation in accordance with the Last-in First-out (LIFO) principle.

Dwell Time: The period of time the load is not physically moving.

E

Echelon Inventory: Stock at a certain stage in the supply chain to meet customer requirements.

Electric Pallet Jack: A manually-operated piece of equipment that works on electricity (battery) to haul cargo on pallets horizontally in a practical manner. It has a very limited ability to haul and stack pallets vertically.

Electric Stacker: An electrical piece of equipment that is used to stack cargo on pallets by moving them vertically. It does not have a cabin for the operator, who operates it on foot. It is a smaller and more economical product compared to classic stacking equipment such as a reach truck. It also has a lower maximum reach height.

Electronic Commerce (E-commerce): A scheme in which people pay to purchase real or virtual products on certain systems on the internet.

Electronic Product Code: A code that contains code version, producer/manufacturer information, product type and serial number so that a product in the supply chain can instantly and automatically be identified and tracked globally.

Emergency Stock: Stock held at all times in the event of unexpected contingency situations.

Estimated Time Of Arrival (ETA): Estimated date of arrival.

Euro-pallet (EUR-pallet): In time, European countries have introduced pallet standardization, establishing specifications such as measure, quality, material type, moisture ratio, the nails used, etc., and they called the pallets that are compliant to these standards as Euro-pallet. Euro-pallet’s standard number is UIC 435-2V. And, its dimensions are 80 cm x 120 cm.

European Conference of Ministers of Transport (ECMT): Entered into force on January 1, 1974, and then, changed as International Transportation Forum (ITF) in 2006. UBAK document is a permit that is allocated – within the quota that the Secretariat sets for member countries – at the start of each year to companies that meet the certain criteria set by the Ministry of Transportation, Maritime and Communication and that has an accompanying logbook filled out duly and is used for transportation between member countries.

Ex Declaration: Export declaration.

Ex Works: An international trading delivery method that involves only the cost of goods and requires the seller to deliver goods at its own warehouse or place of business.Upon delivery of goods, all expenses, risks and other liabilities related to the goods are undertaken by the buyer. The seller is not required to load the goods onto a transportation vehicle, nor is it required to deal with customs.

Export: Commerce that occurs when the goods are shipped from the present country into another one.

Extranet: A network that is built to allow different organizations (customers, suppliers, state institutions, etc.) to use the same software and protocols via the Internet.

F

Feeder Service: Receiving or delivery of goods from large sea vessels to small sea vessels or to barges, or the other way around. Many times, it is not possible to provide direct service from large vessels.

Fictive: A type of bonded warehouse where a private company stores duty-paid goods that belong only to the company.

Finished Goods Inventory: The amount of product at each warehouse.

First in First Out (FIFO): A rule, usually used in warehousing and costing, stipulating that the first item to enter the warehouse is the first item to leave.

Fixed Costs: Costs that are not affected from the amount of work in the short term and that remain the same.

Fixed Price: The price that is not changed in any way.

Fleet Management: Orderly management and implementation of self-owned vehicles, equipment, garage and infrastructure systems at a logistics company. It involves all operations such as required location, times and layover locations for vehicles, equipment on the vehicles, and driver status.

Flexibility: The ability to keep up with the change in consumer demands.
Flexible Conveyor: A conveyor model that can adjust to varying distances by extending or shortening due to its one-meter long scissor-form.

Flow Rack: A rack on which a package is received, and then others are slid into unloading position on inclined reels so as to implement the FIFO principle for boxes, pallets and so on with the goal of high circulation and better volume use.

Flow Thru: Similar to cross-docking, the process of shipping product by sorting them according to customers’ orders and without taking them into stock when received from the suppliers. Differently from cross-docking, content of the shipping case may need to be changed. Therefore, products it contains are handled one by one for entry and order preparation operation simultaneously. When the amount of received products is more than the order amount, the remaining ones (called residue) are processed only for goods receiving, and then taken into stock. Thus, incoming products are sorted by partially or wholly matching them with the orders, and only non-matching ones are taken into stock – thereby achieving resource saving through reduced operational transactions.

Force Majeure: A contract provision stipulating that parties cannot be held responsible for unexpected situations such as earthquake, flooding, war, etc. that arise outside their control.
Forklift: A transportation/lifting vehicle with a fork, or a hoist with fork, that is used for handling operations such as loading, unloading, carrying, placing, stacking, etc.

Fourth Party Logistics – 4PL: Companies that combine their own organization’s resources, skills and technologies with those of the third-party logistics companies (3PL) so as to provide their customers with comprehensive supply chain solutions, and that undertake to handle the design and management of the whole chain. 4PL companies are required to have the expertise and capability to add value along the whole supply chain.

Free Alongside Ship (FAS): An international trading delivery method that is used in maritime and inland water transportation, with the cost of goods and internal shipping fees to the port having been paid. Seller completes export customs clearance and delivers the goods alongside the ship at the port designated by the buyer.Buyer is responsible for risks such as loss or damage to the goods after delivery. From this point on, buyer pays all expenses and freight for the goods.

Free Carrier (FCA): An international trading delivery method that is used in all type of transportation methods with the cost of goods, and internal shipping fees to the designated location have been paid.Seller’s liability ends after the goods have been delivered, with customs clearance completed, to the freight forwarder designated by the buyer at the location stated by the buyer. If the buyer designates an individual that is not a freight forwarder, seller is considered to have fulfilled its obligation upon delivery of goods to this person.

Free On Board (FOB): An international delivery method.Seller loads the goods onto the ship, which is provided by the buyer, at the designated date and location. Buyer is responsible for all damages, losses and expenses that may occur after the goods have been loaded onto the ship. Seller prepares all documents for export and delivers the goods by completing customs clearance.

Free Trade Zone: An area, though it does not belong to the Turkish Customs Zone, on which goods that are not in free circulation are placed without being subject to customs duty or free circulation, on the condition of not being used or consumed for the purposes stipulated by the customs regulation, and which normally provides export-related benefits due to placing goods that are considered to be outside the Turkish Customs Zone in terms of implementation of import taxes and trade policy measures.

Freight: The fee that is paid for the transportation services.

Full Truck Load (FTL): The load size that would fully fill up a trailer’s transportation capacity (volume, weight).

Full: Allocation of a transportation vehicle or case to a single receiver.

G

Goods Received Note (GNR): A document that authenticates that the relative party has taken over the responsibility of the goods with a signature or stamp upon delivering or receiving them to/from the company, supplier or customer, which offers warehousing, transportation and/or value-added services.

GPRS: A communication technology that sends data to users over the GSM network.

H

Handling: A general description that is used for all logistics facility operations such as moving products around, breaking up the packaging form and redoing it, changing and checking case sizes, labeling, and stretching.

Hardtop Container: A container that does not fit a standard container or that cannot be loaded through the door with a forklift or similar equipment.

Hazardous Materials: A substance that may create a health, safety or damage risk during warehousing and transportation.

Honeycombing: Stacking the loads on top of each other on the floor without using racks according to a plan.

House Airway Bill (HAWB): Bill of lading issued by agents for air freights shipments. HAWB also contains the loading instructions for the destination agent, description of goods, and the shipping fees that apply.

Hub: Regional centers where incoming cargo is unloaded and outgoing cargo is loaded, daily temporary storage for cargo is provided, and cargo is transferred between vehicles.

I

Idle Stock: The stock that has not been requested or consumed for a certain period.

IMCO Charge: Additional fee that the ship owner may request for transportation of dangerous goods.

IMO Document: A document used for transportation of flammable, explosive or chemical materials.

Import: Commerce that occurs when the goods are shipped from a country into the present country.

Incoterms: A program introduced by the International Chamber of Commerce (ICC) to standardize the terms used in international trade. There are a total of 11 delivery methods.

  1. Cost and Freight (CFR): Cost of goods and freight delivery in international trading, used only for maritime and inland water transportation. The seller delivers the goods to the loading port by undertaking all costs and risks, and the goods are brought onto the ship after the customs duty for export is paid. Risk of damage and loss of goods transfers to the buyer once the goods are loaded onto the ship; costs are transferred to the buyer at the destination port.
  2. Cost, Insurance and Freight (CIF): Cost of goods, insurance and freight delivery in international trading, used only for maritime and inland water transportation. The seller delivers the goods to the loading port by undertaking all costs and risks, and the goods are brought onto the ship after the customs duty for export is paid. In addition, the seller draws up an insurance agreement for the minimum coverage amount in the name of the buyer, to protect against loss or damage sustained during shipment. Risk of damage and loss of goods transfers to the buyer once the goods are loaded onto the ship; costs and risks are transferred to the buyer at the destination port.
  3. Carriage and Insurance Paid To (CIP): Cost of goods, insurance and freight delivery in international trading. It is used for all types of transportation. Seller delivers the exported, customs duty-paid goods to a forwarder of its choice or to another party at a designated location (if the parties agreed to such a place) and pays the transportation costs. Seller draws up an insurance agreement and pays for the minimum coverage required based on the loaded goods.Seller is considered to have completed its delivery obligation not when the goods are delivered to the destination, but when they are delivered to the forwarder.
  4. Carriage Paid To (CPT): Cost of goods and freight delivery in international trading. It is used for all types of transportation, especially multi-vehicle transportation. Seller delivers the exported goods, after the related customs duty is paid, to a forwarder of its choice or to another party at a designated location (if the parties agreed to such a place) and pays the transportation costs. As a general rule, all goods-related risks and non-freight expenses are transferred to the buyer when the goods are handed over to the first freight forwarder.
  5. Delivered At Place (DAP): Cost of goods, insurance, freight, and domestic transportation-paid delivery method in international trading that is used for all types of transportation, including multi-transportation. Seller delivers the goods into the possession of the buyer at the designated destination without unloading them from the transportation vehicle. Seller undertakes all damages and costs related to transportation of the goods to the designated destination. Seller undertakes all costs until the destination is reached; the buyer is responsible for customs transactions and costs.
  6. Delivered At Terminal (DAT): Cost of goods, insurance, freight, and domestic transportation delivery in international trading. It is used for all types of transportation, including multi-transportation.Seller delivers the goods into the possession of the buyer at the designated destination or port terminal. The seller unloads the goods from the transportation vehicle. In DAT, the goods are delivered to the buyer and the seller undertakes any unloading costs incurred at the terminal point designated by the buyer and seller.
  7. Delivered Duty Paid (DDP): Cost of goods, insurance, freight, and domestic transportation delivery in international trading. It is used for all types of transportation, including multi-transportation. Seller’s delivery liability ends once the seller prepares the goods for disposal at the designated location in the import country. Seller bears the risks and expenses, including taxes, duties and other fees, required to transport the goods to that point, as well as costs related to clearing import customs.
  8. Ex Works: An international trading delivery method that involves only the cost of goods and requires the seller to deliver goods at its own warehouse or place of business.Upon delivery of goods, all expenses, risks and other liabilities related to the goods are undertaken by the buyer. The seller is not required to load the goods onto a transportation vehicle, nor is it required to deal with customs.
  9. Free Alongside Ship (FAS): An international trading delivery method that is used in maritime and inland water transportation, with the cost of goods and internal shipping fees to the port having been paid. Seller completes export customs clearance and delivers the goods alongside the ship at the port designated by the buyer.Buyer is responsible for risks such as loss or damage to the goods after delivery. From this point on, buyer pays all expenses and freight for the goods.
  10. Free Carrier (FCA): An international trading delivery method that is used in all type of transportation methods with the cost of goods, and internal shipping fees to the designated location have been paid. Seller’s liability ends after the goods have been delivered, with customs clearance completed, to the freight forwarder designated by the buyer at the location stated by the buyer. If the buyer designates an individual that is not a freight forwarder, seller is considered to have fulfilled its obligation upon delivery of goods to this person.
  11. Free Alongside Ship (FAS): An international trading delivery method that is used in maritime and inland water transportation with the cost of goods and internal shipping fees to the port have been paid. Seller completes export customs clearance and delivers the goods on board the ship at the port designated by the buyer. Buyer is responsible for all damages, losses and expenses that may occur after the goods have been loaded onto the ship.

Inspection: Analysis and control of the material, by taking samples if necessary, under supervision of internal or external officials (third parties) at the warehouse or customs locations.

Insurance: A written bilateral agreement that is entered into with related organizations in return for a pre-paid premium to indemnify the losses that may occur as a result of realization of possible risks.

Intermodal Transportation: Delivering the transported goods to the eventual destination by using multiple transportation models (ro-ro, or road, maritime or rail transportation) without conducting any physical processes on the goods or opening the container/trailer.

International Air Transport Association (IATA): The organization that governs the passenger and cargo transportation tariffs and authorizations in international airway transportation.

International Transportation: Al types of direct or transit road, sea, railway and/or airway transportation from one country to the other.

Intranet: Connecting computer networks to each other to allow data exchange between company departments.

Inventory Balance Location Accuracy: One-on-one matching of the products that are located physically at the logistics facility with the products that are registered at the relevant address in the system.

Inventory Turnover: The ratio of the cost or amount of goods sold in an operating period to average stock value or amount.

Inventory: A physical and/or financial list of all fixtures and stocks in the business.

Invoice: A document drawn up by the seller, providing product, amount, property, method of sales, weight, address, date, and similar information.

J

Jettison: Disposing of items when the ship is in danger.

Joint Rate: The price applied from the first transportation point to the other. This is the only agreed-upon and approved tariff between transportation systems.

Just In Time Delivery (JIT) System: The system of shipping and delivering items within the required time and amount from the required location to the required location under required conditions.

K

K1: Authorization document that natural and legal persons are required to obtain from the Ministry of Transportation, Maritime and Communication to perform intercity goods road transportation with one or more self-owned vehicles.

Kanban: For an item that is required on time in manufacturing/supply systems; information, document, signal, and electronic message that provides at the time and amount required.

Kingpin: The large pin that connects the tow-truck to the semi-trailer.

Knocked Down (KD): Dismantling the load to be reassembled for the purpose of an economical loading.

L

L2 Document: A type of authorization document that international logistics operators must possess pursuant to the Law on Road Transportation. They remain valid for five years, provided the provisions of the Law have not been violated.

Last-in First-out (LIFO): The principles that sets forth that last item entered leaves first.

Laydays and Cancelling Clause (LayCan): The gap that is made up of the days on which ships can stay at the docks for loading or unloading.

Lead Time: The period between the purchase order for a product/service or manufacturing order and order delivery or product manufacturing.

Less than Container Load: Allocation of a transportation vehicle or case to more than one receiver.

Loading Area: Areas such as pallets, platforms, etc on which to place the loads.

Loading: Safe loading of items onto a vehicle such as a train, truck, and so on for shipment.

Logistics Management: A supply chain process stage that involves effective and efficient planning, implementation and control of forward and backward flow, and warehousing of goods, services and relevant information between manufacturing and consumption points so as to meet customer needs.

Logistics: Physical flow that consists of transportation, warehousing, packaging and handling, and service flow that includes customs clearance, insurance, supervision, and stock and order management.

Low-bed Trailer: A semi-trailer that allows shipment of loads, which are non-standard according to the international and domestic road transportation directive such as heavy duty vehicles or special task loads, and which have a different length, height, width and tonnage from those of regular trucks and tractor trailers.

M

Main Route: The most suitable and most-used route between the departure and destination points.

Manifest: A document that shows the list of details prepared by the forwarder and its agent. It comprises a summary detail of the total cargo in the vehicle. And, it is usually used for customs clearance.

Master Air Waybill (MAWB): User in airway shipments from a real sender to a real receiver.

Material Requisition: A request that is made to acquire goods from the warehouse, and if its unavailable, to initiate the purchasing operation.

Materials Management: Management of all materials in a company by including operations such as coding, requirement planning, stock control, supply, warehousing, etc.

Maut: Highway use tax applied in Germany to vehicles over 12 tones.

Mezzanine Rack System: A rack system that is used to store small and multi-item products such as parts, ready-to-wear clothes, accessories, and cosmetics, and that allows access to each product without using an equipment, as well as efficient vertical use of storage space. Personnel can walk on the platform in the rack, making it possible to be used like a mezzanine floor of a high-ceiling warehouse.
Mixed Mode Transportation: Using at least two different transportation systems together in the same shipment.

Mobile Rack: A rack that can be moved while empty or full.

Mode of Payment:

  1. Payment Under Letter Of Credit – L/C: A conditional undertaking by the bank, it stipulates that upon buyer’s request, it will make payments to the specified seller upon submission of documents relevant to a product or service, of which the details are stated by the buyer.
  2. Acceptance Credit: A payment method that undertakes the payment of the cost of goods at a certain maturity, and in which a policy is the instrument of this payment. In other words, it is a payment method in which the seller is paid an acceptance credit based on the maturity date stated in the policy . This credit is used when the importer or its bank accepts the policy, which is submitted with the document. In payments with acceptance credit, banks act as intermediaries for the parties and charge a fee for this service. If the policy drawn up by the seller is accepted only by the buyer, then a “trade acceptance” has occurred. When it is foreseeable that the bank will accept the policy, the bank either accepts it or signs a surety for importer’s acceptance, which is called “banker’s acceptance.” In this payment method, when the importer wishes to make a deferred purchase, the exporter secures itself with acceptance or signing of surety for the policy by the bank.
  3. Countertrade – Barter: Direct and simultaneous exchange of two groups of goods, which are considered to be of same value, with a single contract without a financial payment or fund transfer. Barter contracts usually consist of one-time deals, not long-term or regular transactions with the same customer.
  4. Consignation: A type of export that involves sending goods to foreign buyers, brokers, or exporter’s representatives abroad in order to complete the final sales in the future. The persons or organizations that take delivery of the goods sell them at market value, deduct commissions and similar expenses from the sales revenue, and send the exporter the remaining amount in foreign currency via the authorized bank.
  5. Cash Against Goods: Payment method that involves payment of the cost of exported goods after the importer takes delivery of them.
  6. Cash in Advance: Payment method in which the importer pays the cost of goods to the exporter before the actual export.
  7. Cash Against Documents (CAD): Payment method stipulating delivery of documents to the importer upon payment of the export amount by the importer’s bank into the exporter’s bank. Afterwards, the importer has the right to clear the goods from customs with the payment documents it has received. This payment method is called cash against documents.

Moving Rack: A system on which rack blocks move horizontally by a motor drive mechanism. This moving ability allows for more storage in fewer aisles. It is usually used in operations such as archive storage with a relatively lower entry/exit handling speed.

N

Narrow Aisle Storage Equipment: An equipment used to stack and remove pallets on the shelves by moving along the aisles with guides such as rails, laser beam, and magnetic line in the Narrow Aisle Storage System. In the “man-up” model, the operator’s cabin moves vertically with the product, whereas in the “man-down” model, the cabin remains stationary on the floor shelf level. “Man-up” models are used for pallet handling, as well as picking up items from high shelves.

Narrow Aisle Storage System: Shelf systems are used in storage for more effective vertical use of storage volume. Spaces between the shelf systems are called aisles. When standard handling equipment such as forklifts, reach trucks, etc. are used, these aisles need to have a width of approximately three meters. Storage system in which aisle width is narrowed down to around two meters by using special handling equipment for more effective vertical storage volume.

O

Occupiable Spaces: Suitability/availability for the relevant operation of the locations set for various reasons such as warehousing, handling, vehicle loading/unloading, and value-added services at logistics facilities.

Opening (Küşat): A Farsi word, meaning to open, or opening. The right that owners of goods have to inspect the goods, take samples and weigh them before drawing up the declaration.

Optimization: A concept that has parallels with resources planning. It aims to improve the organization’s actions and plans according to current resources, as well as measurable values such as maximum-capacity-use of these resources, and efficiency and profitability, while also minimizing the performance criteria such as fines, delays and losses within a measurable structure.

Order Management: The process of meeting requests or orders, pricing, taking record, checking stocks, allocating stocks, or informing relevant parties about production/purchasing requirements, and following up on orders, delivery and collection.

Order Picker: Material handling equipment that is designed to collect orders on the rack that are lesser than a pallet load, and allows the operator to rise when collecting items horizontally and vertically,; in other words, it makes it possible for the operator to change places on the machine.
Order Picker: Stacking equipment that allows to operator to go up and pick up orders.

Order Picking: The process of the warehouse personnel getting ready for delivery according to the amount and time given the company by the customer for the warehoused products or services.

P

Package: A case that is made of metal, plastic, carton, or similar material to facilitate marketing, shipping, warehousing and distribution by protecting the products against external factors and keeping them together.

Packaging: All of the protective equipment used for safe delivery of a product along the distribution chain from manufacturer to consumer.

Packing List: List of contents in the package or packaging. Detailed list that shows the quantity, piece, weight, dimension and number of goods in the cargo, as well as receiver information and address.

Packing Slip: An official document that states the name, amount, freight cost, and the number of the issued invoice for the goods on the vehicle. It is required to be drawn up and presented at the time of shipping commercial commodity from one place to another so that they can be checked with regard to tax regulation.

Packing: A metal, plastic, glass, etc. container that protects the products from external factors, facilitates publicity and marketing, provides visual and ergonomic benefits, and gives product information.

Pallet Jack: Handling equipment that is used in order picking, vehicle loading/unloading, and operation in low places in the warehouse.

Palletizing: Stacking products on pallets to be transported and stored.

Panel Van: This model hauls cargo in the empty section that is like a closed-off warehouse, in contrast to a pick-up truck, essentially a light-duty commercial vehicle, that is designed to haul cargo, resembling a minibus and carrying cargo in the open on a 3-5-meter box-body.

Partial Shipment: Method of shipping the loads that belong to different customers in the same tractor trailer.

Payment Under Letter Of Credit – L/C: A conditional undertaking by the bank stipulating that on request of the buyer, it will make payment to the specified seller upon submission of documents regarding a product or service, of which the details are stated by the buyer.

Permit: A trailer truck transit permit that countries use between each other. Countries mutually pay an annual Transit Permit fee. Trailer trucks that obtain the permit are allowed to carry transit cargo between countries.

Physical Counting: It encompasses counting and recording in a certain order all inventory in the warehouse or facility, generally once or twice a year, by halting entry and exit operations temporarily.

Physical Distribution: It encompasses physical transportation of the produced goods, their storage, stock controls, packaging, communication of information, and order transactions.

Picking Area: A pre-determined place for each item to be used in picking, placing and replenishment operations.

Pick-to-Light: An electronic system with an LED screen that shows the personnel the number of items to collect from certain addresses during product picking process. It sends the collection result to the warehouse management system by the use of the buttons on it.

Planning: Sending off the cargo requests from customers and/or agents by making loading plans based on present resources and customer requests.

Policy: A written contract that stipulates the mutually-agreed conditions (rights and liabilities of both parties) of the insurance contract that is entered into.

Pro Forma Invoice: A pre-invoice that is drawn up by the seller on behalf of the buyer, showing every detail regarding the deal.

Process Improvement: Activities that aim to increase quality, reduce costs, and eliminate operations that do not provide value-added.

Product Picking: Collecting the products from their address at the warehouse according to customer request.

Production: Producing beneficial products and/or services for users by using production resources such as materials, labor energy, machinery, and so on.

Promotion: Innovations introduced to increase sales or benefits offered.

Purchasing: Transfer of ownership of goods or services from the seller to the buyer with the required quality, time and amount, at a suitable price, and appropriate delivery and payment plan, as well as additional conditions if necessary.

Put Away: Operations that involve receiving goods at the warehouse, physically moving them to their stock locations in the warehouse, and then matching identifications of the shipping case and address in the system.

Put-to-Light: An electronic system with an LED screen that shows employees the number of items to drop at certain addresses during the product sorting process. It sends the sorting results to the warehouse management system.

Q

Quality Control: Establishing the level that a product or service meets the stipulated quality conditions.

Quarantine Stock: The stock that is kept separate from those goods in good condition. This may be due to erogenous documentation, faulty products, or recall of faulty goods.

R

R2 Document: A type of authorization document that international logistics operator organizers must possess pursuant to the Law on Road Transportation. They remain valid for five years, provided the provisions of the Law have not been violated.

Rack: A stable or adjustable storage equipment made of metal, wood or plastic that is used to achieve order in the warehouse, put products on, or utilize the height.

Rack-Supported Warehouse: A type of building in which the rack system is used to store goods, as well as the warehouse building’s bearing system. After the rack system is built, it is covered with facade and roof panels, and mechanical and electrical systems are built integrated to the rack system. Thus, in contrast to classic warehouse shelves, rack-supported warehouse shelves cannot be dismantled and moved or placed somewhere else without affecting the building.

Rail Consignment Note: A receipt document that is used in transportation on trains. It does not serve as a negotiable instrument.

Rail Guided Aisle: An aisle with guided rails that allow the narrow aisle stackers to move on a certain direction.

Ramp: The area that allows the transportation vehicle case and loading section to be the same height and thus facilitates cargo loading and unloading operations.

Ratchet Strap: A generic name given to polyester bands fixed to the surface on which goods will be transported. It is used to stabilize the goods with a tensioner mechanism.

Raw Material: Materials that are used to manufacture the finished product, generally by processing them in manufacturing operations.

Reach Truck: Electronic stacking equipment that allows simple, easy, fast and safe movement on warehouses with side-loading and 10-13-meter high stacking on wide aisles with around three-meter width.

Receipt Authorization Number: The number that shows the order for the product that is due for delivery on a certain date. The number is used to take delivery of goods and track it throughout the debit account.

Receiving Dock: The area where receiving operations are conducted for the goods that arrive at the warehouse.

Receiving: Receiving the goods that arrive at the warehouse. It involves the process of unloading the goods and taking to the goods receiving area, comparing the recorded and physical information, taking the goods into the warehouse, and taking record.

Receiving: The act of a company’s authorized person receiving the goods from the authorized person that delivers it.

Refrigerated Transportation: Fresh and frozen food transportation up to -26 temperature.
Replenishment: In-warehouse transfer that is performed to ensure availability of materials in different packing forms and/or storage locations during the storage process.

Reserved Locations: Special locations such as a cross-docking area that is pre-determined to be used for placing, collection or other purposes.

Resources Planning: Periodic optimization work that is performed to use all self-owned and/or contracted resources efficiently to benefit the organization. Needs and requirements that arise due to the results of resources planning may also trigger processes such as purchasing.

Return Management: Management of operations such as transportation, storage, recycling and destruction of products returned to the supplier from the customer.

Return Product Authorization: A form proving that the returned item is an original product of the company and stating the reason for returning.

Return to Origin: Return of the imported good to the country of origin when they do not meet the qualifications.

Return: Taking the products back from the buyer to the starting point due to reasons such as damage, refusal, packing material recycling, product expiration date, becoming out of fashion, repair, etc. after the product has been delivered to the buyer.

RF Hand Terminal: Easy-to-use mobile hand-held computers that collect information by performing manual transactions with barcode, QR code or buttons; deliver this information online via radio frequency to the system database completely and without an error; and display on its screen the system database information to guide the personnel.

RFID: An automated recognition system, which consists of a microchip with an antenna and a reader; is integrated with a software-hardware system; and for which data communication between the label and reader is provided through radio waves.

Road Transportation: Transportation model consisting of transportation of the goods by using a road route in the whole process from the departure location to the destination.

Roller Conveyor: An equipment that moves products or shipping cases (pallets, baskets, etc.) placed on it through the rolling motion of cylindrical casts.

Route: The path that people, goods, vehicles, services or information will follow between the predetermined start and end points.

Routing: Establishing the order and route from the starting point to the destination points for the transportation operation.

Row Spacer: The space left between two racks by taking into account overflowing pallets from the racks in the back-to-back rack system.

S

Safety Stock: The amount of stock that is kept to prevent being without stock in case of unexpected events in the supply periods or consumption (sales) speed.

Salvage: Material value set by the insurance expert for damaged goods.

Seal: A type of locking system that is put in place after the vehicle has been cleared of customs and shows that it has not been opened without permission.

Seasonal Stock: The stock that is kept before the start of the season to meet the demand that will arise during the season.

Shipment: Taking orders out of the warehouse to be delivered to required locations along with official documents by sorting them according to certain criteria such as delivery date, location, loading vehicle, route, amount, etc.

Shipper: The party or company requesting goods to be transported.
Sous Palan: A method generally used for land or sea transport, in which customs clearance is performed on board.

Spot Vehicle: A general name for freelancing vehicles with a one-time transportation agreement.

Stack: A pile of load that is created from various loads according to certain criteria.

Stacking: Piling the material on top of each other to use the volume vertically.

Standard Pallet Rack: A classic rack that is designed for standard pallets in Euro, ISO, and similar norms.

Stock Adjustment: Systematic stock increase or decrease operations that are done correct stock mistakes arising on the system.

Stock Control: Determining the orders or needs in a way to eliminate excess or deficiency of stock by constantly and periodically monitoring stocks according to set rules.

Stock Type (Account): Used for systematically sorting the stocks with different specifications such sellable, damaged, items to be labeled, problematic items, returned items to be re-packaged, returned products to be inspected, items waiting to be destroyed, quality control, and so on.

Stock: Items that are kept in the warehouse for the need that will or may arise in the future.

Storage: A place in which products/materials are stored and kept; or storage/holding service and the fee paid for this service.

Storeroom: The place that is allocated to store special materials.

Summary Declaration: A document showing that the goods that will be imported or exported have arrived at customs.

Supplementary Policy: A document that is drawn up to state the changes that occur during the term of the insurance policy.

Supplier: A company that provides goods and services.

Supply Chain: All of the operations that encompass supplier-to-customer movements and involve operations regarding organizations, people, technology, and so on. It is a chain that connects a multitude of companies.

Supply: All research, selection, planning, stock control, purchasing, shipping, receiving, assessing, and similar operations that are required to acquired the needed machinery, equipment, raw materials, materials, parts, semi-finished products, products and services from the suitable supplier.

Sustainable Warehouse: Areas that can provide services for an extended period of time by carrying out activities with awareness towards the environment and society.

Swap Body: The name given to the containers that are built so thin that they cannot be stacked one on top another or be lifted from atop by the stacker. They are built by extremely light materials to reduce the initial cost of purchase and minimize long-term fuel costs. They are in ISO container dimensions so that they can be loaded to other container-hauling vehicles. The vehicle it is loaded on can be changed without requiring a loading/unloading system, thanks to the folding legs it usually has on four corners.

T

Temporary Importation: The process of bringing raw materials, semi-finished products or products from abroad and turning them into semi-finished products or products and sending them abroad by adding/not adding different materials in them, or by performing/not performing value-added operations (workmanship, etc.) on them.

Terminal Handling Charges (THC): Handling fee at the port.

Third Party Logistics (3PL): Expert companies that undertake to carry out customers’ logistics operations, primarily transportation and warehousing. First, second, and third parties mean the seller, buyer, and the company that handles some of the services between the buyer and seller, respectively.

TIR Carnet: A customs transit document that allows transportation under a procedure from the customs office at the departure location to the one at the arrival location. It has four, six, 14 and 20-sheet versions according to its number of pages.

Tonnage: Payload in tons for a load transportation vehicle.

Toolkit: Toolbox that contains tools such as hammers, screwdrivers, etc. used to repair a vehicle.

Traceability: The process of obtaining and reporting on the path a product follows from manufacturing to consumption in the whole supply chain.

Trailer: A load-carrying road transportation vehicle, which is driven by a tow-truck and is built according to the load it will haul, and can park on its own tires.

Transfer: The process of unloading the load that arrives on a vehicle and loading it onto another vehicle for shipment shortly without requiring any other special operation.

Transportation: Transporting people and loads between certain points.

Tugboat: A motorized sea vessel that assists large ships to maneuver fast and safely on port areas.

U

Uniform Product Code: Given by the Uniform Product Code Council (UPCC), its first and last five characters identify the manufacturer and the product, respectively.

Unit Train: Allocation of the load onto a whole rolling stock, if there is enough load. The load may belong to a single company.

V

Value Added Operations: Operations such as labeling, packaging, folding, temperature measurement, transfer, mixing, combining, sorting, palletizing, light assembly, returns, destruction, adding user guide, barcode transactions, maintenance and repair, and so on that are performed upon customer demand at the warehouses.

Value Added: A value (labor, depreciation, profit, tax and liability total) or increased/improved value, functionality or benefit that a company adds to its input.

Vertical Conveyor System: Conveyor system that is used when the connection between the stations of varying heights on the floors, mezzanine floors, or on the same floors, cannot be achieved with an inclined conveyor.

Vertical Storage System: Mechatronics system that contains an elevator scheme and trays in each module. It allows for storage with vertical transportation on the elevator system by placing the goods or transportation cases (basket, parcel, etc.) on trays. It makes efficient vertical storage possible by minimizing the space between the trays, as it uses the sensors within to determine the height of the goods placed on the trays.

Volumetric Weight: The value that is used to calculate the cargo shipping fee by multiplying the three dimensions (width, length and height) of the cargo such as package, case and parcel, and then dividing that number by 3,000.

W

Warehouse Management System: A system that records and reports on the entire process, from the receiving of goods to shipment at the warehouse (including yard management), in computers by using automatic recognition technologies; provides guidance to employees by making decisions within the process on matters such as address determination and making allocations by using its internal algorithms; and allows resource tracking and planning.

Warehouse: Middle points that play a strategic role in carrying a series of operations, from product raw material process to production, and then to distribution at consumption centers.

Warehouse: Secure indoor or outdoor area in which products are placed for a certain time according to need.

Written Report: Documents (receiving report, count report, missing/excess report) signed by officers to establish a certain incident or case.

Y

Yard Management: Facilitating and monitoring compliance with defined processes and rules (traffic flow, use of parking areas, preserving the security chain, etc.) by all vehicles and persons entering the boundaries of the logistics facility.

Yield Management: Increasing revenues through efficient practices.