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  • Logistics terms and acronyms: know the most used


    Logistics and transport have their language and technical terms. Professionals, even less experienced ones, should know them.

    We have gathered in this text the main terms and acronyms of the logistics sector!

    Why use logistics acronyms?

    The acronym is used to reduce words in order to generate more agility both when speaking and when writing. It is usually formed by the initials of the terms to which they refer.

    They save time and streamline communication, which is why they are so important.

    The main acronyms used in the transport and logistics sector

    We present the most used acronyms in alphabetical order:

    AD Valorem – or freight value, is a fee charged within the freight table that represents the cost of insuring the cargo.

    CDD - Distribution Center

    CTD - Combined Transport Document or Combined Transport Document.

    DANFE – Auxiliary Document of the Electronic Invoice.

    DACT – Auxiliary Document of the Electronic Bill of Lading.

    DDR – Right of Return Waiver – When a customer hires transportation services and has their own insurance against cargo claims, it is necessary to obtain, from their Insurer, the Right of Return Waiver (DDR) document.

    EDI - Electronic Data Interchange or Electronic Data Interchange.

    ERP – Enterprise Resource Planning or Business Resource Planning.

    ETC – Cargo Road Transport Company.

    FIFO - First-In, First-Out or First In is First Out (PEPS), used in storage and replenishment of materials in stock, determine the order in which the materials are moved, as a way of guaranteeing the validity of the items.

    CIF freight (Cost, Insurance and Freightt – Cost, Insurance and Freight) – Indicates that the transportation expenses or services will be paid by the cargo shipper.

    FOB freight (Free on Board – Free on Board) – Indicates that transportation expenses or services will be paid by the recipient of the cargo.

    FTL freight (Full Truck Load) – For companies that have large volumes of cargo and need faster delivery or receipt of their shipments, it is usual to transport in the FULL FREIGHT mode, which consists of hiring an exclusive trailer for the transport of materials from a single customer. The entire capacity of the equipment, approximately 105 M3, is available only to the contractor, without sharing space with other freight shippers.

    FIRST MILE — or the first mile, it is the first stage of cargo transport, it is the transfer of goods from the Industry to the Distribution Centers.

    GRIS – Fee charged in Transport and CT-es contracts, used to defray expenses with the Risk Manager, according to prior negotiation of the service. This fee is different from the Ad Valorem fee, as it refers exclusively to the Risk Management service.

    GPS – Global Positioning System or Global Positioning System. It was developed by the US armed forces and is made up of a set of 24 satellites that orbit the Earth every 12 hours. This system allows electronic devices, called GPS Receivers, to convert satellite signals into positions, thus allowing the geographic location of any object on the globe with an accuracy of around 10 meters.

    Just-in-Time or JIT – is to serve the internal or external customer at the exact moment of their need, with the quantities necessary for the operation/production, thus avoiding the maintenance of larger inventories.

    KLT – Klein Lagerung und Transport or Packaging and Transport of Small Components.

    LAST MILE – or last leg – is the final stage of delivery of the goods, it is the leg of delivery to the recipient customer, commonly used in B2C relationships (from companies to individuals)

    LMG - Maximum guarantee limit

    LTL - Less than Truck Load) – Fractional Freight: for operations with a lower volume of material, carriers consolidate loads from several customers in one piece of equipment, maximizing vehicle occupancy. In this condition, fractional shipping is used.

    MIDDLE MILLE – Intermediate section – is the intermediate transport stage, normally used in the transfer of goods from ports or airports to the Distribution Centers.

    MDF-e – Electronic Manifesto of Tax Documents, this type of documentation can be used by companies that have their own car and will transport their own cargo, and cannot be used for third-party cargo.

    PCM – Material Planning and Control.

    PCP – Production Planning and Control.

    PEPS – First In Stock is First Out or First-In, First-Out (FIFO).

    PGR - Risk Management Plan

    RCF-DC – Optional Civil Liability Insurance for Road Carriers for Missing Cargo.

    RCTR-C – Civil Liability Insurance for Road Cargo Carriers.

    REDEX – Special Enclosure for Export Customs Clearance.

    RFDC – Radiofrequency Data Collection or Radiofrequency Data Collection.

    RFID – Radio Frequency Identification Data or Radio Frequency Identification.

    SAC or Customer Service – Customer Service or Customer Service.

    SIL - Logistics Information System

    SKU - Stock keeping unit or Inventory Maintenance Unit, corresponds to the item in stock, differentiates the type, size and characteristic of a product line, with numbering that distinguishes these characteristics.

    SLA - Service Level Agreement or Service Level Agreement.

    SLM - Strategic Logistics Management or Strategic Logistics Management.

    SMS - Short Messaging System

    STV – Vehicle Transfer Order.

    TAC - Autonomous Cargo Transport

    TDA - Access Difficulty Rate – when the carrier has to travel on dirt roads, alleys, steep climbs or in a place where it is not possible to unload near the place of delivery.

    TDE - Delivery difficulty rate – When the carrier has difficulty in delivering the goods to the recipient customer, this fee is determined in the contracted table, and refers to a waiting time.

    YOUR - Twenty Foot Equivalent Unit. Standard 20ft intermodal container size.

    TKU – Tons per useful kilometer.

    TMS - Transportation Management Systems or Transport Management Systems.

    TRT - Traffic Restriction Fee – In large Brazilian metropolises we have legislation on areas restricted to the movement of cargo transport.

    UEPS - is the nomenclature for the storage method, in which the product that is the last to enter the stock is the first to leave, it is contrary to (PEPS), this method is used prioritizing a treatment of production costs, measures the inventory by cost breakdown.

    VUC – Urban Cargo Vehicle.

    XML – Extensible Markup Language, is the digital version of the invoice that corresponds to the national tax bookkeeping standard.

    WCS - Warehouse Control Systems or Warehouse Control Systems.

    WMS - Warehouse Management Systems or Warehouse Management Systems.

    Meet Fadel

    With a modern and safe fleet, Fadel Transportes is always prepared to offer ideal logistics solutions for each client.

    Fadel Transportes operates in several activities in the logistics chain, such as:

    • Transfer of products between factories and distribution centers;
    • Matched operations that involve more than one customer in the transfer of their products;
    • Internal movement of goods that involve loading and unloading trucks;
    • Assembly of loads;
    • urban distribution.

    Fadel Transportes is the best choice to carry out road transport for your company.

    Contact Us and know all the conditions and benefits.