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Supply Chain & Logistics Glossary

Supply chain and logistics professionals speak their own language. Here’s your guide to cracking the code.

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What Is ABC Inventory Classification?

ABC inventory classification is a method that categorizes items in your inventory based on their annual consumption value. It considers the amount of profit you make per item sold and usage value (total number of units sold). The three categories usually follow this pattern

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What Are Accessorial Charges?

Accessorial charges are fees that freight carriers bill to customers for additional transportation services beyond the standard cost. These services include…

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What Is Activity-Based Costing (ABC)?

Activity-based costing (ABC) is a costing method that assigns overhead and indirect costs to products and services based on actual consumption. It recognizes the relationship between costs, overhead activities and manufactured products. How ABC works…

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What Is Adaptable?

An adaptable supply chain is both flexible and modular. In other words, an adaptable supply chain can handle a variety of different product categories: pipes, pumps, tools and more. An adaptable supply chain also can scale capacity up or down to handle surging or plunging customer demand. So, adaptable is the sum of flexible and modular

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What Is an Advanced Shipping Notice (ASN)?

An advanced shipping notice (ASN) is a notification a supplier sends to a recipient (usually a retailer or manufacturer) before a shipment arrives. It includes details such as shipment contents, quantities and expected delivery date.

What Is an AGV (Automated Guided Vehicle System)?

An automated guided vehicle system (AGV) is a robotic vehicle or cart that navigates autonomously within a warehouse or factory to transport goods, often following predefined paths or markers.

What Is AI (Artificial Intelligence)?

Artificial intelligence (AI) is the simulation of human intelligence in machines, enabling them to perform tasks that typically require human cognition, such as learning, problem-solving and decision-making.

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What Is an AMR (Autonomous Mobile Robot)?

An autonomous mobile robot is a self-navigating robot that can move freely within a facility, performing tasks such as material handling, inventory tracking or order picking.

What Is Automated Data Collection (ADC)?

Automated data collection (ADC) is the use of technology (such as barcode scanners or RFID) to automatically capture and record data related to inventory, shipments or other supply chain activities.

What Are Automated Storage/Retrieval Systems (AS/RS)?

Automated Storage/Retrieval Systems (AS/RS) are computer-controlled systems that automatically store and retrieve items from designated storage locations (racks or shelves) within a warehouse.

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The Tompkins Ventures Supply Chain & Logistics Glossary is full of useful explanations and quick definitions for the terms supply chain and logistics professionals use to describe their operations. Tompkins Ventures assembled this guide from the decades of wisdom of Chairman Jim Tompkins, CEO Mike Royster and research from “The Supply Chain Handbook,” James A. Tompkins, Ph.D. and Dale Harmelink, Editors-in-Chief.