Industry Terminology

Num A B C D E F G H I J K L M N O P Q R S T U V W

 

L

 

L&D: Loss and Damage

 

L/C: Letter of Credit. Also ELC, ILC.

 

Label Card: A bar-coded transaction card with an attached bar-code label. The card and label bar codes match. Label is removed from card and placed on merchandise.

 

Labor Management: Control/ management of available labor pool involving time and attendance and scheduling of employees.

 

Laid-down cost: The sum of the product and transportation costs. The laid-down cost is useful in comparing the total cost of a product shipped from different supply sources to a customer's point of use.

 

LAN: See Local Area Network

 

LAN Internetwork: Connecting disparate and geographically dispersed local area networks to form an enterprise network.

 

Landed Cost: Cost of product plus relevant logistics costs such as transportation, warehousing, handling, etc. Also called Total Landed Cost or Net Landed Costs

 

Laser Diode, Infrared: A source of a scanner's laser light produced by a semiconductor. It is readable in high ambient light.

 

Laser Diode, Visible: Laser light is produced in the visible spectrum; VLDs can read all color bar codes and have a great depth of field, but can be inhibited by high ambient light. See above.

 

Last In, First Out (LIFO): Accounting method of valuing inventory that assumes latest goods purchased are first goods used during accounting period.

 

LDI: Logistics Data Interchange. A computerized system that electronically transmits logistics information.

 

Lead Logistics Partner (LLP): An organization that organizes other 3rd party logistics partners for outsourcing of logistics functions. Also see: Fourth Party Logistics

 

Lead Time: The total time that elapses between an order's placement and its receipt. It includes the time required for order transmittal, order processing, order preparation, and transit.

 

Leased Line: A rented phone line connecting one location to one other location. A T-1 leased line carries 1.544 MB/sec; a T-3 leased line carries 44.736 MB/sec.

 

Least Squares: A forecasting method like regression analysis that selects a line of best fit through a scattering of data to minimize the sum of squares of the deviations of the given points from the forecast.

 

Least Total Cost: A dynamic lot-sizing technique that calculates the order quantity by comparing the setup (or ordering) costs and the carrying cost for various lot sizes and selects the lot size where these costs are most nearly equal. Also see: Discrete Order Quantity, Dynamic Lot Sizing

 

Least Unit Cost: A dynamic lot-sizing technique that adds ordering cost and inventory carrying cost for each trial lot size and divides by the number of units in the lot size, picking the lot size with the lowest unit cost. Also see: Discrete Order Quantity, Dynamic Lot Sizing

 

LED: Light Emitting Diode. Serve as indicator lights on Portable Tele-transaction Computers and other devices.

 

Less-Than-Carload (LCL): Shipment that is less than a complete rail car load (lot shipment). Less-Than-Truckload (LTL) Carriers: Trucking companies that consolidate and transport smaller (less than truckload) shipments of freight by utilizing a network of terminals and relay points. Leverage: Taking something small and exploding it. Can be financial or technological.

 

Less-Than-Truckload (LTL): Trucking companies that consolidate and transport smaller (less than truckload) shipments of freight by utilizing a network of terminals and relay points.

 

Letter of Credit: An assurance by a financial institution that payment will be made as long as the sales terms agreed to by the buyer and seller are met.

 

Leverage: Taking something small and exploding it. Can be financial or technological.

 

LGV: Light Goods Vehicle. See also "HGV".

 

Life Cycle Cost: In cost accounting, a product's life cycle is the period that starts with the initial product conceptualization and ends with the withdrawal of the product from the marketplace and final disposition. A product life cycle is characterized by certain defined stages, including research, development, introduction, maturity, decline, and abandonment. Life cycle cost is the accumulated costs incurred by a product during these stages.

 

Life Cycle, Product: Period consisting of the typical life phases (such as product launch, market penetration, market saturation) of a product.

 

LIFO : Last In First Out: warehousing term, meaning that the most recently received (last in) items are the first to be used or sold (first out). See also FIFO.

 

Lift Truck: Power-driven vehicle used to transport palletized freight.

 

Light Pen: Hand-held scanning device used as a contact bar-code reader. See Scanner, Wand.

 

LIM: Logistics Inventory Management

 

LIMS: Logistics Inventory Management System

 

Line: 1) A specific physical space for the manufacture of a product that in a flow shop layout is represented by a straight line. In actuality, this may be a series of pieces of equipment connected by piping or conveyor systems. 2) A type of manufacturing process used to produce a narrow range of standard items with identical or highly similar designs. Production volumes are high, production and material handling equipment is specialized, and all products typically pass through the same sequence of operations. Also see: Assembly Line

 

Line Scrap: Value of raw materials and work- in-process inventory scrapped as a result of improper processing or assembly, as a percentage of total value of production at standard cost.

 

Linux: A computer operating system distinguished from other operating systems (such as Windows or Unix) by the fact that its source code is available to anyone, and anyone can contribute improvements to the system.

 

LIS: Logistics Information System

 

LL: Lean Logistics: also Læ - efficient logistics.

 

LLP: Lead Logistics Partner: a 3PL (q.v.) that controls other outsourced supply chain elements.

 

LMS: Logistics Management Systems

 

LOB: Line of Business

 

Local Area Network (LAN): A high-speed communications system designed to link computers and other data processing devices together within a small geographic area such as a work group, department, or a single floor of a multi-story building.

 

Logistics: The function of sourcing and distributing material and product in the proper place and in proper quantities.

 

Logistics Channel: The network of supply chain participants engaged in storage, handling, transfer, transportation, and communications functions that contribute to the efficient flow of goods.

 

Logistics Management as defined by the Council of Logistics Management (CLM): "Definition - Logistics Management is that part of Supply Chain Management that plans, implements, and controls the efficient, effective forward and reverse flow and storage of goods, services and related information between the point of origin and the point of consumption in order to meet customers"requirements. Boundaries and Relationships - Logistics Management activities typically include inbound and outbound transportation management, fleet management, warehousing, materials handling, order fulfillment, logistics network design, inventory management, supply/demand planning, and management of third party logistics services providers. To varying degrees, the logistics function also includes sourcing and procurement, production planning and scheduling, packaging and assembly, and customer service. It is involved in all levels of planning and execution ‚ strategic, operational and tactical. Logistics Management is an integrating function, which coordinates and optimizes all logistics activities, as well as integrates logistics activities with other functions including marketing, sales manufacturing, finance and information technology."

 

LOS: Level of Service

 

Lot: A batch quantity.

 

Lot Number: See Batch Number

 

Loyalty Program: A system of rewarding a retailers' best customers to encourage repeat sales. Provides consumer-specific data.

 

LPG: Liquid Petroleum Gas: used as motor fuel (see also LNG, CNG).

 

LRC: Learning Resource Centre: workplace library/information centre.

 

LSC : Linear Supply Chain

 

LSM: Logistics Support Manager

 

LT: Lead Time

 

Ltd : Limited: limited liability company whose shares are not traded publicly (UK). See also "PLC".

 

LTL: Less than truckload. An LTL load is mixed freight, not all the same vendor or purchase order.

 

LTV: Life Time Value: the cumulative net value of merchandise sold to a customer.

 

LWB: Long Wheelbase: large vehicle (see also SWB).

 

LX : Logistics Exchange

 

LXE Terminal: The hand held and forklift mounted computer terminals. These terminals transmit information to the main computer by radio waves.

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