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Glossary of Terms

ABC Costing

Activity based costing, where costs or charges reflect the underlying cost of providing the service. The charges by the logisticsprovider reflect the task performed.


Australian Product Number Barcode unique to a product: 13 digit barcode or number, containing country prefix number (2), company number (5), item number (5) and a check digit (1). Also called GTIN - Global Trade Item Number


Advance Shipping Note is an EDI document which has completed order information compiled inside


A combination of a prime mover and two independent trailers (one ‘lead’ trailer and one ‘tag’ trailer). Commonly sized to carry 32 or 34 pallets. Allowed to travel only on B-double approved routes.


A combination of a prime mover and three independent trailers. This configuration is currently under test on major interstate routes.


Business to business trading using electronic (eCommerce) or electronic trading networks

Bogie Axle

Refers to a prime mover, rigid truck or trailer on which there are two rear axles.

Carry Cost

Cost associated with having inventory on hand. It is primarily made up of the costs associated with the inventory investment and storage; also called holding cost.

Chep Pallet

A pallet measuring 1.20m x 1.00m, and weighing approximately 40 kg. Height - 0.15m


Unloading materials from an incoming trailer and then loading them into an outbound trailer without sorting and distributing the items in the warehouse.

Curtain Sider

A flexible sided trailer on which the curtains can be opened and closed for loading and unloading. Also known as a ‘Tautliner’.

Cycle Count

Process of regularly scheduled inventory counts (usually daily) that “cycle” through your inventory


Distribution Centre


Delivery in full on time. A measure of performance for transport/logistics providers

Distribution Requirements Planning (DRP)

Process for determining inventory requirements in a multiple plant/warehouse environment.

Dock Leveler

Device that acts as a bridge between a truck or trailer and the loading ramp

Dog Trailer

A trailer towed by a rigid truck that has one axle at the front and rear of the trailer

Drive-in Rack

Racking system that accommodates a fork lift into the bay.

Drop-deck Trailer

A trailer which has a section of deck lowered to increase the cubic capacity of the trailer


Package filling material.

EAN Label

Internationally recognised, standard label format, designed for use on any transport unit, including cartons, shippers (or inners) and pallets to identify the goods being transported


European Article Number: barcode numbering system recognised internationally


Efficient Consumer Response. This is linked with data integration and electronic commerce.


Electronic Data Interchange


Electronic funds transfer where payment is made electronically directly into a bank account

Euro Pallet

There are a number of size specifications for the Euro Pallet, however, they are not the same size as the Chep Pallet.


Internal Dimensions Length Width Height Tare Weight Cubic Capacity Payload 20’ GP 5.919m 2.340m 2.380m 1900kg 33cbm 22100kg 20’ HC 5.919m 2.340m 2.684m 2085kg 37cbm 23700kg 40’ GP 12.051m 2.340m 2.380m 3085kg 67cbm 27400kg 40’ HC 12.051m 2.340m 2.684m 3170kg 76cbm 29600kg


First in first out, method of rotating inventory so that the oldest products are used first.

Flex Conveyor

Portable conveyor that can be expanded, contracted, and curved.

Flow Rack

Racking system that incorporates sections of a conveyor so that cartons or pallets can flow to the front


Floor ready merchandise services. Explanation of system that improves speed of goods onto the retail floor in a 'store ready' condition

Gravity Conveyor

Conveyor, usually with wheels or rollers, that uses gravity to move items.


Global Tracking Item Number. It is a product or APN number.

High-Density Storage

Storage in which pallets or cartons are stored more than one unit deep or high.

Inventory Turn

Number of times inventory is replenished in a year; generally calculated by dividing the average inventory level (or current inventory level) into the annual inventory usage (annual cost of goods sold).

Just-in-time (JIT)

Usually thought of as describing inventory arriving or being produced just in time for the shipment or next process; actually a process for optimizing manufacturing processes by eliminating wasted steps, wasted material, and excess inventory.

Lead Time

Amount of time required for an item to be available for use from the time it is ordered. Should include purchase order processing time, vendor processing time, in-transit time, and receiving, inspection, and prepack times.


Last in first out, method of using the newest inventory first rather than rotating it so that the oldest is shipped out first.


A stack of one or more pallets of goods that fit into one pallet space on a truck.


Inventory system in which once a product has reached the predetermined minimum quantity enough replacement product is order to bring the level up to the predetermined maximum quantity.

Open Order

Order that has not yet been fulfilled.

Order Cycle

Time between orders of a specific item; also called replenishment cycle.

Order Management System

Software that receives customer order information and inventory availability from the warehouse management system and then groups orders by customer and priority, allocates inventory, and determines delivery dates; also called order processing system.


Product Activity Data (see POS)

Pallet Space

The space taken up on a truck by one Chep pallet, nominally 1.2m x 1.0m x 1.385m high

Pig Trailer

A trailer towed by a rigid truck that has a single or bogie axle group at the centre of the trailer and relies on the rigid truck to support the front of the trailer.


Proof of Delivery. Documentation that proves merchandise has been delivered (eg signed transport delivery docket or a scanned label with receipt of goods)


Point of Sale. Upon sale of a product data is collected when the barcode is scanned so that sales data can be collected by the retailer. This data is sometimes called PAD data (product activity data)

Prime Mover

The ‘tractor’ unit that tows trailers.

Reverse Logistics

Processing of returns.


Radio frequency identification, systems that use transponders to transmit significant amounts of data to a receiver; often used as part of a real-time locator system.

Rigid Truck

A small truck (usually maximum 14 pallet capacity).


Reverse Purchase Order where orders are automatically created when stock is sold through information gathered from point of sale (POS)

Safety Stock

Quantity of inventory used in inventory management systems to allow for deviations in demand or supply.


A combination of a prime mover and an independent trailer. Commonly sized to carry 20, 22 or 24 pallets.

Single Axle

Refers to a truck or trailer on which there is a single rear axle.


Stock Keeping Unit. Description of an individual style of product


Serial Shipping Container Code: a unique identifying number for individual shipment of goods. Sometimes called a Shipping Container Mark (SCM)

Tri Axle

Refers to a trailer on which there are three rear axles


Trade Unit Number is a barcode that describes multiple units of APNs in packs or shippers


North American unique product barcode with twelve (12) digits


Value Added Services explains services that add value to merchandise before it reaches the retailers' shop floor. Is also called Floor Ready Merchandise (FRM©) Services.


Vendor Managed Inventory. Where stock levels in retail stores are managed by the vendor or supplier. They are responsible for ownership of the stock and stock types and levels inside the store.

Warehouse Management System (WMS)

Computer software designed to manage the storage and movement of items throughout the warehouse.

Wave Picking

Method of order picking in which items are picked first and then sorted into individual orders.

Zone Picking

Method of picking orders in which the warehouse is divided into several zones; pickers are assigned a specific zone and pick only items in that zone before moving the order (usually via a conveyor system) to the next zone; also called pick-and-pass.