T1: You will apply a T1 declaration to Customs to carry the goods under external Community customs transport regulations. Goods are not cleared as such, but can be transported from customs deposit to customs deposit under customs supervision.
TACT TACT stands for The Air Cargo Tariff. It is published by IAP — International Airlines Publications, an IATA company.
Tactical Planning: Development process of a set of tactical plants (e.g., production plan, sales plan, marketing plan, etc.). Two tactical planning strategies exist to connect tactical plans to strategic plans-production planning and sales and planning operations.
Taguchi Method: In the product development cycle, a definition of offline quality control approaches implemented at the product and process design states. The term, articulated by Genichi Taguchi, covers three stages of product design, design of parameters and design of tolerances. The aim is to reduce loss of quality by reducing the variability of the characteristics of a product during the product development parameter process.
Takt Time: Sets the production rate to suit the customer demand rate and becomes the engine of any lean manufacturing program. It is measured as the production time available divided by the demand rate of the customer. For example, suppose the demand is 10,000 units a month, or 500 units per day, and the planned capacity available is 420 minutes per day. Takt time= 420 minutes a day / 500 units a day= 0.84 minutes a day. This takt time means a unit should be scheduled to take every 0.84 minutes to exit the production system.
Tare Weight: The weight of a product derived from the gross weight of the complete container by deduction of the weight of the empty container.
Target Costing: A target cost is determined by extracting the required profit margin from an estimated or market-based price to reach the desired cost of manufacturing, development or marketing. This may not be the initial cost of production, but it is anticipated that this will be done during the mature stage of production. Goal costing is a process used in the analysis of product design involving an estimated goal cost and then the product / service being designed to meet that cost.
Tariff: A tax appraised by a government on products that enter or leave a country. The term is also used in transportation, in reference to a carrier’s charges and regulations for its services.
Tasks: The breakdown of the work in an activity into smaller elements.
TBL: through Bill of landing
Temporary Importation: The method of taking raw materials, semi-finished products or products from abroad and turning them into semi-finished products or products and sending them abroad by adding / not adding various materials to them, or performing / not performing value-added operations (manufacturing, etc.) on them.
Tender: The document which describes a business transaction to be performed.
Terms and Conditions (T’s & C’s): All the provisions and agreements of a contract.
Terminal Handling Charges
TEU: Twenty Foot Equivalent Unit
THC: Container service charges (CSC or THC) are additional costs, in addition to sea freight, paid by the shipping company for container handling at the container terminal prior to loading on board a vessel.
Theory of Constraints (TOC): A manufacturing management theory that dictates that volume is limited by a set of constraints related to work center efficiency, availability of materials, finance, etc. Maximum throughput can not surpass the capacity of the smallest limit, and any non-related work center inventory buffers or excess capacity is waste.
Third Party Logistics: Outsourcing all or much of the logistics activities of a company to a specialist business.
Third Party Logistics Provider (3PL): A business that offers various logistics facilities for clients to use. Both programs are ideally combined by the supplier, or bundled together. Such organizations facilitate the flow of parts and materials from suppliers to producers, and finished goods from manufacturers to distributors and retailers. Transportation, warehousing, cross loading, inventory management, packing and freight forwarding are amongst the services they provide.
Third Party Warehousing: The seller of the products has to outsource the warehousing task.
Throughput: A measure of volume of the warehousing production (weight, unit number). In addition, the total number of units earned, plus the total number of units shipped divided by two.
TI traffic information
TIR transport: The letters TIR stand for ‘Transports Internationaux Routiers’. The TIR agreement refers to transportation of goods between a departure customs office in one country and the destination office in another. The countries concerned must be aligned with TIR.
Total Annual Sales: Total annual revenues are Gross Product Revenue plus post-delivery revenue (e.g. maintenance and repair or equipment, system integration) royalties, sales of other facilities, revenue from spare parts, and profits from rent / lease.
Total Average Inventory: Average standard stock of use, plus average lead stock, plus safety stock.
Total Cost Analysis: A decision-making technique that considers reducing total costs and acknowledges the interrelationship between device variables, such as transport, warehousing, inventory and customer service.
Total Cost Curve: 1) The total cost-volume-profit (break-even) analysis consists of total fixed and variable unit costs multiplied by the number of units given. Quantity break-even occurs when the total cost curve and the total sales revenue curve overlap .2) The total cost curve for an inventory item in inventory theory is the amount of the cost of acquiring and transporting the item.
Total Cost of Ownership (TCO): Software product total cost throughout its life cycle, from purchase to disposal. TCO is the total cost of owning networked information properties, hard and soft. “Hard” costs include things such as the asset purchase price, execution fees, repairs, servicing, contracts, service contracts, disposition costs and license fees which may or may not be upfront or paid quarterly. As they are measurable and easily accounted for, these costs are called “hard costs.”
Total Cumulative Manufacture Cycle Time: Average time between start of upstream processing and finalization of final packaging for shipment operations as well as release of shipment approval. Does not include storage time at WIP.
Total Make Cycle Time: The average processing time between the start of the upstream processing and the completion of all manufacturing process steps up to, but not including, packaging and labeling operations (i.e., from the beginning of manufacturing to the final formulated product ready for primary packaging).
Total Product Revenue: The total value of sales made to foreign customers plus intra-company shipment transfer price cost, net of all discounts, coupons, bonuses and rebates. Includes only intra-company revenue for inventory transfer from an agency, installation services where those services are sold combined with end products, and accepted leases to consumers negotiated during the same time as revenue shipments, with revenue credited at the average selling price.
Total Productive Maintenance (TPM): Team-based maintenance cycle designed to maximize the availability of devices and their efficiency and product quality.
Total Supply Chain Management Cost (five elements): Total cost of handling order management, purchasing products, controlling inventories and managing supply chain finance, preparing and IT costs as a percentage of revenue. The precise distribution of IT related costs is difficult. It can be achieved using costing methods based on the task, or more conventional approaches. Fair methods are allocation based on user amounts, transaction counts, or department headcounts. The emphasis should be on collecting all the costs, whether incurred on behalf of the company conducting the survey or in a supporting organization. Fair data based projections were embraced as a way of evaluating overall performance. All figures represented full-burdened reals like wages, insurance, room and services, and general and administrative allocations.
Total Supply Chain Response Time: The time it takes to rebalance the entire supply chain once a shift in market demand has been calculated. In addition, a measure of the capacity of a supply chain to rapidly adapt in response to market changes.
Calculation: [Forecast Cycle Time] + [Re-Plan Cycle Time] + [Intra-Manufacturing Re-Plan Cycle Time] + [Cumulative Source/Make Cycle Time] + [Order Fulfillment Lead Time]
Total Test Release Cycle Time: The average total test and delivery time for all samples, documentation updates, and batch approval processes carried out from the beginning of production to the release for shipment of the final packaged product.
Calculation: [Average number of units in test and release]/[Average daily output in units]
Touch Labor: Job which adds value to the product-assemblers, welders, packagers, etc. This does not include indirect personnel such as moving and stage product material managers, and mechanical and electrical technicians who maintain equipment.
Tracing: The process of relating resources, actions, and cost artifacts using the drivers that underlie their causal cost relationships. Tracing is intended to analyze and appreciate how costs occur in the normal course of business operations.
Tractor: The tractor is the driver compartment and engine of the truck. It has two or three axles.
Traceability: 1) The attribute that makes determination of a shipment’s current location.2) Registration and recording of parts, processes and materials used, by lot or serial number, in production.
Tracking and Tracing: Monitoring and tracking movements of shipments from destination to origin.
Trading Partner: Companies that do business with each other via EDI (e.g., send and receive business documents such as purchase orders).
Trading Partner Agreement: The written contract between EDI trading partners which sets out terms agreed upon.
Traffic: A department or function entrusted with the task of coordinating all incoming and outgoing materials and goods for the most economical classification and method of shipping.
Traffic Management: Transport modes, carriers, and networks are handled and regulated.
Trailer: The part of the truck that carries the goods.
Trailer Drops: When a driver in a warehouse drops off a loaded truck and picks up an empty one.
Trailer on a Flat Car (TOFC): A specialized type of containerization where transport by motor and rail is organized.
Transaction: A single transmission completed, for example transmission of an invoice over an EDI network. Analogous to the use of the term in data processing in which a request or a collection of notifications and trading transactions can be a transaction. For EDI service operators who have to interpret invoices and other documents the concept is relevant.
Transaction Set: Commonly used business transactions (e.g. purchase order, invoice, etc.) arranged in a standardized, structured manner consisting of a segment of transaction set header control, one or more segments of data, and a segment of transaction set trailer control.
Transaction Set ID: A three digit numerical representation that identifies a transaction set.
Transactional Acknowledgement: Limited transaction sets, such as the approval of the purchase order (855), which both recognize receipt of an order and provide special status information such as rescheduling, price changes, back order situation etc.
Transfer of VAT upon Import
Transit Time: The total time that elapses between a shipment’s pickup and delivery.
Transparency: The opportunity to obtain access to information irrespective of the countryside or layout of the network. An illustration is where an online customer might visit a vendor’s website to place an order and receive the availability details from a third party logistics provider provided by an outsource supplier or shipment information.
Transponder and Terminal Charges
Transport Internationaux Routiers
Transportation Management System: A computer system designed to provide integrated transport management in various modes along with related activities, including shipping unit management, labor planning and construction, shipment scheduling by inbound, outbound, intra-company shipments, documentation management (especially when involving international shipping), and logistics management by third parties.
Transportation Mode: The method of transportation: land, sea, or air shipment.
Transportation Planning: The process of establishing an integrated supply chain transportation strategy and preserving the knowledge that characterizes total supply chain transportation specifications, as well as the management of inter- and intra-company transporters.
Transportation Planning Systems: The devices used to automate assignments from manufacturers to distribution centers, and from distribution centers to stores. The systems merge movements to ensure that the most cost-effective methods are used.
Transportation Security Administration(TSA)
Transshipment Transshipment refers to the act of sending an exported commodity to the country intended to be its final destination through an intermediate country before routing it.
Trend: Over time general upward or downward motion of a variable such as product demand. Predicting patterns are used to help predict changes in consumption over time.
Trend Forecasting Models: Methods for predicting sales data when there is a definite pattern of ups and downs. Models include double exponential smoothing, triple smoothing and regression.
Truck Stop Electrification (TSE): Provides power outlets in truck parking spaces where truck drivers can easily plug in and turn off their engines instead of idling their truck engines.
Truckload Carriers (TL): Trucking companies that carry full freight lorries directly from the point of origin to the destination.
Truckload Lot: A truck shipment eligible for a lower freight rate, as it reaches a minimum weight and/or volume.
Tugboat: A motorized sea ship which allows large ships to navigate quickly and safely in port areas.
1) Typically refers to inventory turnover
2) In the United Kingdom and certain other countries, turnover refers to annual sales volume.
Twenty Foot Equivalent Unit
Twist look: A twist lock is a special double pin that secures containers which are stacked. The pins are conic in form and the oval openings in a container’s corner posts fit snugly. It is protected by rotating the pin to 90 degrees. The containers are linked by placing the two pints in two containers that are stacked opposite or on top of each other.