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The delivery of products by a factory to the disposal of another (company-internal) party, e.g. a sales department.
The total stock of raw materials, components and assemblies, work in progress stock (i.e. excluding finished products).
farming out / sub-contracting
To have certain operations of the production process sub-contracted to external suppliers when the own capacity is occupied and / or specialized knowledge is required or in-house production is more expensive
A product or part delivered at a high rate or frequently used in production or in relatively large volume or numbers per period.
An export station offering forwarding services to a customer which it operates either through a hub or through a gateway centre.
Short transportation lines running from a truck (lorry) line to nearby areas in order to collect and distribute freight for the central trucking operation. Feeder service lines are normally between 40 and 50 kilometers long.
A vessel used for local or coastal carriage of general or bulk cargo and / or containers normally to and from those (smaller) ports not called by the main shipping lines
A warehouse on the property of the legal owner of the goods where goods are stored that are under the control and custody of a bonafide independent warehouse manager. The field warehouse receipt is used as collateral for a loan.
An order with a highly prolonged delivery time, intended for production in periods in which some of the available production capacity is not being (fully) used for normal orders.
final assembly / top assembly
An assembly requiring no further parts to be added, and / or the final assembling step for such a product.
final assembly schedule (FAS)
A schedule for final assembly of products either to restore stock of finished products destined for a make-to-stock product, and in case of a make-to-order product to finish the products. The final assembly schedule is prepared after the receipt of a firm customer order in case of make-to-order products, it is constrained, however, by the availability of parts and capacity, and it plans the final production required to complete the production from the level where the stock level presently is (or matter scheduled) to the desired level.
finished goods stock / finished products stock
Stock available for delivery to an external consumer, also comprising items that have been delivered but not invoiced, but not including items that have previously been invoiced to the consumer.
finishing lead time
The time required to finish production of a product after the receipt of the resp. customer order, or the period of time available for the FAS (final assembly schedule).
A computer technique comprising automatic shop priority check in order to ensure level load for every single operation. Note: Conceptually it means occupying no more capacity of a work centre than can be expected to be executed by the work centre.
A job organisation rule under which incoming jobs are sequenced by their placement times.
first-in, first-out (FIFO)
1. A common method of valuing stocks which assumes that the stock received first is also consumed first. 2. (with regard to storage) The bookkeeping assumption, that goods which have entered stock first are delivered (sold), used and / or consumed first.
fixed height load-carrying truck (fixed platform truck)
Truck having its load on a fixed (non-elevating) platform.
fixed interval re-order system
A periodic re-ordering system with fixed time intervals between orders, e.g. weekly, monthly or quarterly, having varying volume of the order and where the orders vary depending on consumption since the last review. Such an inventory control system is used where inventory stocks are controlled in a fixed time cycle, e.g. in warehouse control systems with automatic placement of orders, or for inventories comprising a large variety of goods under certain clerical control.
flag (in shipping)
Identification of the country where the transport medium is registered, referring to the ensign of the country of register.
flammable / combustible
Commodity may be set on fire under certain circumstances.
The minimum temperature at which a commodity produces enough fumes to form a combustible mixture with air.
flat bed trailer
A wheeled trailer having a flat surface for the carriage of cargo and without a superstructure.
Pallet without superstructure.
flat rack / flat
A container with open sides and two end wells.
A rail car without front, rear or side structure, used for hauling machinery.
process of monitoring the location, condition and status of the various vessels, aircraft or land vehicles in a fleet.
Short preparation times and the capability for quick switch-over from one product or production method to another.
flexible manufacturing system (FMS)
A manufacturing system designed as to permit the production line to be frequently readjusted, FMS rapidly matching production output to changes in demand. Requires mixed-model scheduling, standardization of equipment for short changeover times, multi-skilled operators and design of the entire production line to enable workers to perform more then one function and to reduce transportation time between lines.
flight number / line number
A code consisting of the combination of two letters, identifying the airline, and a sequence of three or four digits denoting the number of the flight.
flow (in goods movement reporting)
A quantity of products passing one measuring point. This may be a single batch of goods passing the measuring point at one moment of time, but It can also be an accumulation of quantities of products passing in a defined period of time.
flow chart / flow diagram
A diagram representing the procedure or sequence of events, normally using symbols connected by lines indicating the intended process flow.
A specific production control system based primarily on determining production rates and feeding material into production to meet the planned rates, then monitoring it through production to verify that it is moving at the desired speed. Flow control has its major application in repetitive production.
flow of materials
The flow of materials which enter and passe through the factory to serve the production process.
fork lift truck
A mobile lifting and carrying vehicle with two forks at the front designed for moving, lifting, and stowing cargo.
forty foot equivalent unit (FEU)
Unit of measurement describing a carrying and storing unit equivalent to one shipping container of forty foot length.
forward order / advanced order
An order that asks for delivery to be executed at a particular later point of time.
A scheduling technique starting from a known date and computing the completion date for this order. The scheduling usually proceeds from the first to the last operation.
forward-from function / forwarding function
The function encompassing the collection of shipments into complete consignments including shipment of those consignments.
forwarder / freight forwarder
The party arranging the shipping of goods including associated services and / or necessary formalities on behalf and on order of a shipper / consignee.
forwarders certificate of receipt (FCR)
A document certifying that the forwarder has taken possession of a consignment of goods with irrevocable instructions regarding delivery of the goods to the stated consignee or to his order.
forwarders certificate of transport (FCT)
A document certifying that a forwarder has forwarded the consignment to the destination.
The process of executing the despatch of consignments and the consolidation of reporting and recording related to these shipments including their transport and, in the case of international transport, notifying the national body administering exports.
A company or individual performing or arranging services related to the international movements of commodities on behalf and on order of a company or person. A forwarding agent offers the technical knowledge for taking care of all aspects of shipment but does not provide the function of a prime carrier.
The function, among others, of the execution (on behalf of the party interested in the transport of cargo): - the (inter)national shipment of goods, also including the groupage function; - the function of a transport broker and, where applicable, the function of a customs broker consisting of arranging shipment, handling of the goods including customs clearance, if required. Forwarding functions also include mediations with all cargo interested parties, carriers, official bodies, and, if necessary, customs authorities. - The necessary reports and records to enable tracing shipments.
Pallet permitting penetration by forks of lift forks or special truck fingers from four directions.
Fourth Party Logistics (4PL)
A 4PL is an integrator that combines resources, capabilities and technologies from its own and other organizations in order to design, develop and implement comprehensive solutions for the supply chain.
Easily breakable. Term identifying goods which must be handled with care.