Logistics Terms Dictionary

An inventory management technique that categorizes materials/products based on criteria such as turnover rate, quantity, or value — with A items being the most valuable or fast-moving, and C items being the least.

A representative entity or individual operating on behalf of a logistics company in a specific region outside of the company’s headquarters, providing logistics services locally.

A regulatory framework that governs the transport of hazardous materials by road. It requires vehicles and drivers to be certified for transporting such goods.
Hazard classes under ADR include:

Class 1: Explosives
Class 2: Gases
Class 3: Flammable Liquids
Class 4.1: Flammable Solids
Class 4.2: Substances Liable to Spontaneous Combustion
Class 4.3: Substances Which Emit Flammable Gases in Contact with Water
Class 5.1: Oxidizing Substances
Class 5.2: Organic Peroxides
Class 6.1: Toxic Substances
Class 6.2: Infectious Substances
Class 7: Radioactive Material
Class 8: Corrosive Substances
Class 9: Miscellaneous Dangerous Substances and Articles

The process of assigning a physical location (address) to a product or handling unit (e.g., bin, box, pallet) within a logistics facility and recording it in the system by linking the item’s unique ID with the designated location ID.

A working stack of goods from which materials are frequently placed or retrieved according to operational needs.

A mutually accepted written understanding between parties in procurement or logistics services, clearly defining the terms and conditions of the engagement.

An international customs document accepted as a declaration and guarantee for the temporary importation of goods without payment of duties and taxes, under the ATA Convention among member countries.

A customs document issued by exporters under the Customs Union Agreement between Türkiye and the European Community. It allows goods in free circulation to benefit from duty exemptions during export and import between the two regions.

A passageway used to access rack compartments or stacked goods, often utilized for inventory counting and material handling.

A non-negotiable transport document issued between the shipper and the air carrier, serving as a receipt for the cargo and a contract of carriage in air freight.

 A payment method in which the value of goods is settled at a future date through a bill of exchange. In this structure, the importer or the importer’s bank accepts the bill, thereby committing to pay at maturity. If the bill is accepted by the buyer, it is termed a trade acceptance. If accepted or guaranteed (avalized) by a bank, it becomes a banker’s acceptance. Banks act as intermediaries in this process and charge a commission for their services. This method provides payment assurance to the exporter for deferred transactions. 

The value a company adds to its inputs (including labor, depreciation, profit, taxes, and liabilities) / the enhanced or improved value, functionality, or benefit delivered through its services or operations.

It refers to the suitability and availability of the locations determined for different purposes (stocking, handling, vehicle loading/unloading, value-added services) in logistics facilities for the relevant process.

The average level of inventory held for a product, a product group or all products in a given period.

It is a storage system in which the placement of the material in its place in the warehouse and the removal and shipment of the material from the place where it is stored are carried out with computer-controlled equipment, and robots that can move horizontally and vertically for placement and picking in each shelf aisle.

It is a form of payment in which the importer pays the goods to the exporter before the actual export.

Systematic stock increase or decrease operations performed in order to correct stock errors on the system.

It is used for the systematic separation of stocks with different characteristics such as saleable stock, damaged stock, stock of products to be labeled, stock of problematic products, stock of returned products to be repackaged, stock of returned products to be inspected, stock of products awaiting destruction, stock of products awaiting quality control, etc.

It is the process of physically transporting and placing the products arriving at the warehouse to the stock locations in the warehouse after the goods acceptance process is carried out, and systematically matching the identity of the transport container with the address identity.

It is a document issued to indicate the changes that have occurred during the period in which the insurance policy is in force.