P&I: P&I clubs (Protection and Indemnity Club) are arrangements between shipping companies with the goal of ensuring the risks not covered by the regular maritime insurance packages.
Packing List: A record containing information on where each Product ID is located in each box. It allows the customer to find the item he or she is looking for quickly without a broad search of all the packages. It also means that products are actually delivered on line item basis.
Pallet: The frame which is stacked on cartons and then used as a group for shipping or movement. Pallets may be made of wood or composite materials.
Pallet Wrapping Machine: A system that enfolds the contents of a pallet in stretch-wrap to ensure safe shipping.
Parcel Shipment: Parcels provide small packages, such as those commonly provided by companies including UPS and FedEx.
Pay on Use: Pay on use is a mechanism where product use initiates payment, i.e. consignment stock based on product withdrawal from inventory, this method is common with many European companies.
Payroll: Total of all fully-burdened labor costs, including wages, fringe, benefits, overtime, bonus, and profit sharing.
PBIT: Profit Before Interest and Tax.
Pegging: A methodology whereby a DRP program tracks the demand for a commodity by date, amount, and location of the warehouse.
Per Diem: A payment rate one railroad makes to use another’s cars.
Permit: A grant of authority to operate as a contract carrier.
Perpetual Inventory: A record keeping system for inventory where each transaction is reported in and out and a new balance is determined.
Personal Discrimination: Charging different rates to shippers with similar characteristics of transport, or charging similar rates to shippers with different characteristics of the transport.
Physical Distribution: The transport and storage of finished goods from production plants to consumer warehouses; used synonymously with company logistics.
Physical Supply: The transportation and storage of raw materials from sources of supply to the production facility.
Pick/Pack: Picking and packing immediately into shipment containers.
Picking: The method of removing goods from storage areas to complete a customer order.
Picking by Aisle: A process by which pickers select all necessary items in an aisle regardless of the ultimate destination of the items; the items must be sorted later.
Picking by Source: A method in which pickers select all items which go to a particular destination, irrespective of the aisle in which each item is located.
Pick List: A list of items to be selected from stock to fill out an order; the generation of the pick list and the process of picking can be quite complex.
Pick to Light: A laser marks the bin for the next object in the rack; the bar code is checked when the picker completes the pick, and the device then directs the laser to the next bin.
Pick-Up Order: A document stating the authority to pick up freight or equipment from a particular location.
Piggyback: Terminology used to characterize a vehicle pulling a truck on a railroad flatcar.
Place Utility: A value produced by logistics in a company, by changing the position of the product. Transportation provides value for the location.
Planned Date: It is planned to take place the day an event such as a receipt, shipping, or delivery of an order.
Plimsoll line: Surface recognized internationally, painted on the side of a vessel. When a vessel is filled it is not allowed to reach the water level. Considering the temperature of the water, the salt content of the water and the season, the water can reach different levels once compared to the surface.
Poka Yoke (mistake proof): Applying simple techniques that avoid failure of process quality. A system that either avoids making a mistake or, at a glance, makes the mistake clear.
Pooling: A shipping term to combine shipment from several shippers into a truckload to reduce shipping fees.
Port Authority: A state or local government holding, maintaining, or otherwise supplying port quarters, docks, and other terminal investments.
Port of Discharge(POD) : Port where vessel is off loaded.
Port of Entry: A port at which foreign goods are admitted into the receiving country.
Port of Loading (POL): Port where cargo is loaded aboard the vessel.
Portal: A website which is used as a starting point for other internet destinations or activities. Initially considered as a home-based type of web page, portals aim to provide all Internet needs in one location. Portals usually include email, online chat rooms, shopping, search, video, and news feeds.
POS: Point of Shipment, or Point of Sale
Possession Utility: The value generated by marketing efforts to increase the desire to own a service good or profit from it.
Postponement: The extension of final operations (i.e. assembly, sorting, packaging, etc.) until the latest time possible. A technique for reducing excess inventories in the form of finished goods that can be packed in a variety of configurations.
Pre-Expediting: The role of following up on open orders in the specified quantity before the scheduled delivery date to ensure timely delivery of the materials.
Preferential trade Agreement
Prepaid: A freight term that indicates the shipper is paying the charges. Prepaid shipping costs may be added to the customer’s invoice, or the expense may be included in the product pricing.
Prepaid Freight: Freight charged to the carrier by the shipper when the merchandise is tendered for shipment and cannot be refunded if the merchandise does not arrive at the expected destination.
Priority Air carrier
Private Carrier: A carrier delivering the transport service to the company that owns or rents the vehicles and does not charge a fee. Private motor carriers can transport wholly owned subsidiaries at a cost.
Private Warehouse: A company-owned warehouse.
Private Warehousing: The storage of the goods in a warehouse owned by the company which owns the goods title.
Process Improvement: A design or operation that increases efficiency or reduces costs, often by eliminating waste on activities with no value added.
Process Manufacturing: Production that combines, separates, shapes and/or conducts chemical reactions to add value. This can be achieved in batch mode, continuous, or mixed batch / continuous.
Process Yield: The production resulting from a phase. An example would be a quantity of finished product production from process manufacturing.
Procurement: Sourcing preparation, sourcing, inventory control, traffic, receiving, incoming inspection, and salvage operations are company functions.
Pro Forma Invoice: An invoice, delivered prior to shipment by the seller of the goods, which informs the buyer of the specifics and value of the products. Usually required to get an import permit or letter of credit by the buyer.
Pro Number: Any graduated or serialized number used to mark freight bills, lading bills, etc.
Proof of Delivery (POD): Information provided by the carrier containing the name of the person signing for the shipment, the time and date of delivery and other information relating to the delivery of the shipping. POD is also sometimes used just prior to shipment to refer to the printing materials process.
Pro Forma Invoice An invoice issued by a manufacturer before the item is delivered, telling the consumer of the kinds and quantities of products to be shipped, their value and relevant requirements (weight, size and similar characteristics). When an importer asks for Letter of Credit as the means of payment, the L / C issuing bank may require a Pro Forma Invoice from the recipient of such Letter of Credit, normally the exporter.
Proportional Rate: A rate lower than the regular rate for shipments that movements before or after; used to address the competitive disadvantages of mix rates.
Protocol: Communication standards which determine the content and format of messages, enabling uniform transmission.
PRS Piracy Risk Surcharge (PRS) is also referred to as the Gulf of Aden Surcharge
PTM Port and terminal management.
Public Warehouse: The warehouse space rented or leased by an independent business paying for a fee or on a contract basis for a variety of services.
Public Warehousing: Storage of goods by a company that provides the storage service to the public for a fee.
Public Warehouse receipt: A public warehouse manager issues the basic document as a receipt for the products which a firm gives to the warehouse manager. Receipt may be negotiable or non-negotiable.
Pull Signal: A signal from a using operation that triggers the issue of raw material.
Pull or Pull-Through Distribution: Action on supply chain taken by the consumer. The supply chain has historically been driven; producers manufactured products and moved them through the supply chain and the consumer had no influence over them. In a pull system, purchasing from a customer sends replenishment details back to the manufacturer via the supply chain from seller to distributor so that products are pulled through the supply chain.
Pull Ordering System: A program where each warehouse manages its own shipping requirements by placing single product orders with the central distribution centre. A replenishment mechanism where POS systems or ECR programs “take” inventory into the supply chain (or “market chain”). Combined with structures called “build to order.”
Purchase Order (PO): Authorisation of the customer used to formalize a purchasing agreement with a supplier. A customer uses the physical form or online transaction when placing a merchandising order.
Purchase Price Discount: A pricing system in which the seller gives a lower price if the buyer buys a bigger amount.
Push Ordering System: A situation in which a firm makes decisions about product deployment at the central distribution center and ships accordingly to its individual warehouses.
Push Technology: Web casting (push technology) is a pre-arranged summary of news, weather, or other selected information on the desktop interface of a computer user through periodic and usually unobtrusive transmission over the World Wide Web (including the use of intranet web protocol); Cloud casting uses so-called push technology in which the web server effectively transfers information to the user instead of waiting until the user requests it directly.
Put Away: Removing the material from the dock (or other receiving site), transporting the material to a storage area, positioning it in a staging area, then transferring it to a specific location and recording the movement and position where the material was placed.