I

IATA:
See: International Air Transport Association
ICC:
See: Interstate Commerce Commission
Igloos:
Pallets and containers used in air transportation; the igloo shape is designed to fit the internal wall contours of a narrow-body airplane.
Image Processing:
allows a company to take electronic photographs of documents. The electronic photograph then can be stored in a computer and retrieved from computer storage to replicate the document on a printer. The thousands of bytes of data composing a single document are encoded in an optical disk. Many carriers now use image processing to provide proof-of-delivery documents to a shipper. The consignee signs an electronic pad that automatically digitizes a consignee's signature for downloading into a computer. A copy of that signature then can be produced to demonstrate that a delivery took place.
IMB:
See: International Maritime Bureau.
IMC:
See: Intermodal marketing company
IMO:
See: International Maritime Organization.
Import:
Movement of products from one country into another. The import of automobiles from Germany to the U.S. is an example.
Importation Point:
The location (port, airport or border crossing) where goods will be cleared for importation into a country.
Import/Export License:
Official authorization issued by a government agency which allows for the transport of goods across their national boundaries. Licenses may be required for all, or only specific classes of commodities.
Impressions:
With regard to online advertising, it is the number of times an ad banner is downloaded and presumably seen by users. Guaranteed impressions refer to the minimum number of times an ad banner will be seen by users.
In Bond:
Goods are held or transported In-Bond under customs control either until import duties or other charges are paid, or to avoid paying the duties or charges until a later date.
In-store Implementation (ISI):
Refers to the collective physical and informational actions performed at retail to actualize merchandising, marketing and media plans in the store. ISI encompasses compliance, measurement and communications activities, and is defined by a Plan-Do-Measure process cycle that controls implementation plans and work and communicates implementation signals.
Inbound Logistics:
The movement of materials from suppliers and vendors into production processes or storage facilities.
Incentive Fee:
A premium fee which is based upon the control of costs in a cost-plus-incentive-fee contract.
Incentive Rate:
A rate designed to induce the shipper to ship heavier volumes per shipment.
INCOTERMS:
International terms of sale developed by the International Chamber of Commerce to define sellers' and buyers' responsibilities.
Independent Action:
A carrier that is a member of a rate bureau has the right to publish a rate that differs from the rate published by the rate bureau.
Independent Demand:
In a requirements planning system the independent demand is that which is not related to a parent product in a product structure bill of materials or planning bill. Independent demand is typically end customer demand which must be separately forecast.
Independent Trading Exchange (ITE):
Often used synonymously with B2B, e-marketplace or Virtual Commerce Network (VCN) ). ITE is a more precise term, connoting many-to-many trans­actions, whereas the others do not specify the transactions.
Indirect Cost:
A resource or activity cost such as operation costs and overhead that cannot be directly traced to a final cost object since no direct or repeatable cause-and-effect relationship exists. An indirect cost uses an assignment or allocation to transfer cost. See: Direct Cost, Support Costs
Indirect/Distributor Channel:
Your company sells and ships to the distributor. The distributor sells and ships to the end user. This may occur in multiple stages. Ultimately your products may pass through the Indirect/Distributor Channel and arrive at a retail outlet. Order information in this channel may be transmitted by electronic means. These means may include EDI, brokered systems, or linked electronic systems.
Indirect Retail Locations:
A retail location that ultimately sells your product to consumers, but who purchases your products from an intermediary, like a distributor or wholesaler.
Infinite Loading:
A method used in calculating work center activity loading where there are no constraints placed on the capacity of the work centers. In other words, the calculation assumes an infinite amount of capacity is available.
Information Systems (IS):
Managing the flow of data in an organization in a systematic, structured way to assist in planning, implementing, and controlling.
Inherent Advantage:
The cost and service benefits of one mode compared with other modes.
Initial Contact Personnel:
The first point of contact that a customer has with a company.
Inland Bill of Lading:
The carriage contract used in transport from a shipping point overland to the exporter's international carrier location.Inland Carrier: An enterprise that offers overland service to or from a point of import or export.
Inland Port:
An inland port is a site located away from traditional land, air and coastal borders. It facilitates and processes international trade through strategic investments in multimodal transportation assets and by promoting value-added services as goods move through the supply chain.
Insourcing:
The opposite of outsourcing, that is, a serve performed in-house.
Inspection Certificate:
A document certifying that merchandise (such as perishable goods) was in good condition immediately prior to shipment.
Integrated Carrier:
A company that offers a blend of transportation services such as land, sea and air carriage, freight forwarding, and ground handling.
Integrated Logistics:
A comprehensive, system-wide view of the entire supply chain as a single process, from raw materials supply through finished goods distribution. All functions that make up the supply chain are managed as a single entity, rather than managing individual functions separately.
Integrated Product Teams (IPT):
Toensure a collaborative environment is maintained among all stakeholders. To do that, the U.S. DoD acquisition, capability needs, financial, and operational stakeholders shall maintain continuous and effective communications with each other through Integrated Product Teams (IPTs).
Integrated Services Digital Network (ISDN):
A computer term describing the networks and equipment for integrated broadband transmissions of data, voice, and image, from rates of 144 Kbps to 2 Mbps. ISDN allows integration of data, voice, and video over the same digital links.
Integrated Tow Barge:
A series of barges that are connected together to operate as one unit.
Intellectual Property (IP):
Property of an enterprise or individual which is typically maintained in a digital form. This may include software program code or digital documents, music, videos, etc.
Inter-Service Support Agreement (ISSA):
An agreement between two DoD entities by which one or both agree to provide assistance to the other. Funds transferred in connection with an ISSA are normally transferred by a “MIPR.” (Military Inter-Departmental Procurement Request)
Inter-systems Data Integration:
See: Data Integration.
Interchange:
In EDI, the exchange of electronic information between companies. Also, the group of transaction sets transmitted from one sender to one receiver at one time. Delineated by interchange control segments.
Intercoastal carriers:
Water carriers that transport freight between East and West Coast ports, usually by way of the Panama Canal.
Intercorporate hauling:
A private carrier hauling the goods of a subsidiary and charging the subsidiary a fee: this is legal if the subsidiary is wholly owned (100%) or if the private carrier has common carrier authority.
Interim Contract Support (ICS):
generally the initial, level of effort contract for support during System Development and Demonstration; produce and support to initial operational test and evaluation, initial spares and maintenance training.
Interleaving:
The practice of assigning an employee multiple tasks which are to be performed concurrently. This technique is frequently used to define the practice of assigning multiple picking orders to a single picker who will pick them concurrently as he/she moves down the aisle.
Interline:
Two or more motor carriers working together to haul the shipment to a destination. Carrier equipment may be interchanged from one carrier to the next, but usually the shipment is re-handled without the equipment.
Intermediately Positioned Warehouse:
A supplies depot located in a specific region of a country in order to provide a high level of customer service. It distributes commodities only for that area.
Intermittent-Flow, Fixed-Path Equipment:
Materials handling devices that include cranes, monorails, and stacker cranes.
Intermodal Container Transfer Facility:
A facility where cargo is transferred from one mode of transportation to another, usually from ship or truck to rail.
Intermodal Marketing Company (IMC):
An intermediary that sells intermodal services to shippers.
Intermodal Transportation:
Transporting freight by using two or more transportation modes such as by truck and rail or truck and oceangoing vessel.
Intermodal Transport Unit (ITU):
Container, swap body or semi-trailer/goods road motor vehicle suitable for intermodal transport.
Internal Customer:
An individual or department which is a part of the supplying company as opposed to the companies external customers. See: Customer
Internal Labor and Overhead:
The portion of COGS that is typically reported as labor and overhead, less any costs already classified as "outsourced."
Internal Rate of Return (IRR):
Internal Rate of Return (IRR): A rate of return used in capital budgeting to measure and compare the profitability of investments. The IRR is sometimes called the effective interest rate.
Internal Water Carriers:
Water carriers that operate over internal, navigable rivers such as the Mississippi, Ohio, and Missouri.
International Air Transport Association (IATA):
An international air carrier rate bureau for passenger and freight movements.
International Civil Aeronautics Organization:
An international agency that is responsible for air safety and for standardizing air traffic control, airport design, and safety features worldwide.
International Maritime Bureau (IMB):
A special division of the International Chamber of Commerce.
International Maritime Organization (IMO):
A United Nations-affiliated organization representing all maritime countries in matters affecting maritime transportation, including the movement of dangerous goods. The organization also is involved in deliberations on marine environmental pollution.
International Security, Trust, and Privacy Alliance (ISTPA):
A global alliance of companies and technology providers working together to clarify and resolve evolving issues related to security, trust and privacy.
International Ship and Port Facility Security Code (ISPS):
Adopted by the IMO and based on the U.S. MTSA, came into force on July 1, 2004. It is a comprehensive, mandatory security regime for international shipping and port facility operations agreed to by the members of the IMO. Ships must be certified by their flag states to ensure that mandated security measures have been implemented; port facilities must undergo security vulnerability assessments that form the basis of security plans approved by their government authorities.
International Standards Organization (ISO):
An organization within the United Nations to which all national and other standard setting bodies should or do defer. Develops and monitors international standards, including OSI, EDIFACT, and X.400
Internet:
A computer term which refers to an interconnected group of computer networks from all parts of the world, i.e. a network of networks. Accessed via a modem and an on-line service provider, it contains a number of information resources and acts as a giant electronic message routing system.
Interstate Commerce:
The transportation of persons or property between states; in the course of the movement, the shipment cresses a state boundary line.
Interstate Commerce Commission (ICC):
An independent regulatory agency that implements federal economic regulations controlling railroads, motor carriers, pipelines, domestic water carriers, domestic surface freight forwarders, and brokers.
Interstate System:
The National System of Interstate and Defense Highways, 42,000 miles of four-lane, limited-access roads connecting major population centers.
Intra-Manufacturing Re-plan Cycle:
Average elapsed time, in calendar days, between the time a regenerated forecast is accepted by the end-product manufacturing/assembly location, and the time that the revised plan is reflected in the Master Production Schedule of all the affected internal sub-assembly/component producing plant(s). (An element of Total Supply Chain Response Time)
Intrastate Commerce:
The transportation of persons or property between points within a state. A shipment between two points within a state may be interstate if the shipment had a prior or subsequent move outside of the state and the intent of the shipper was an interstate shipment at the time of shipment.
In-transit Inventory:
Material moving between two or more locations, usually separated geographically; for example, finished goods being shipped from a plant to a distribution center. In-transit inventory is an easily overlooked component of total supply chain availability.
Intrinsic Forecast Method:
A method of forecasting which looks at known available internal data (sales, usage, etc) as opposed to the factors external to the business (demographics, weather, etc.).
Inventory:
Components, raw materials, work in process, finished goods and supplies required for the creation of goods and services; It can also refer to the number of units and/or value of the stock of goods held by a company.
Inventory Accuracy:
This is when the on-hand quantity is equivalent to the perpetual balance (plus or minus the designated count tolerances). It can often be referred to as a percentage showing the variance between book inventory and actual count. This is a major performance metric for any organization which manages large inventories. Typical minimum and best practice averages would be 95% and 99%.
Inventory Balance Location Accuracy:
When the on-hand quantity in the specified locations is equivalent to the perpetual balance (plus or minus the designated count tolerances).
Inventory Buffers:
The products or supplies of an organization maintained on hand or in transit to stabilize variations in supply, demand, production, or lead time
Inventory Carrying Cost:
One of the elements comprising a company's total supply-chain management costs. These costs consist of the following:1. Opportunity Cost: The opportunity cost of holding inventory. This should be based on your company's own cost of capital standards using the following formula. Calculation: Cost of Capital x Average Net Value of Inventory2. Shrinkage: The costs associated with breakage, pilferage, and deterioration of inventories. Usually pertains to the loss of material through handling damage, theft, or neglect.3. Insurance and Taxes: The cost of insuring inventories and taxes associated with the holding of inventory.4. Total Obsolescence for Raw Material, WIP, and Finished Goods Inventory: Inventory reserves taken due to obsolescence and scrap and includes products exceeding the shelf life, i.e. spoils and is no good for use in its original purpose (do not include reserves taken for Field Service Parts).5. Channel Obsolescence: Aging allowances paid to channel partners, provisions for buy-back agreements, etc. Includes all material that goes obsolete while in a distribution channel. Usually, a distributor will demand a refund on material that goes bad (shelf life) or is no longer needed because of changing needs.6. Field Service Parts Obsolescence: Reserves taken due to obsolescence and scrap. Field Service Parts are those inventory kept at locations outside the four walls of the manufacturing plant i.e., distribution center or warehouse.
Inventory Cycle Counting:
See: Cycle Counting
Inventory Days of Supply (for RM, WIP, PFG, and FFG):
Total gross value of inventory for the category (raw materials, work in process, partially­ finished goods, or fully-finished goods) at standard cost before reserves for excess and obsolescence, divided by the average daily usage. It includes only inventory that is on the books and currently owned by the business entity. Future liabilities such as consignments from suppliers are not included.Calculation: [5 Point Annual Average Gross Inventory] / [Calendar Year Value of Transfers / 365]
Inventory Deployment:
A technique for strategically positioning inventory to meet customer service levels while minimizing inventory and storage levels. Excess inventory is replaced using information derived through monitoring supply, demand, and inventory at rest and in motion.
Inventory Management:
The process of ensuring the availability of products through inventory administration.
Inventory Planning Systems:
The systems that help in strategically balancing the inventory policy and customer service levels throughout the supply chain. These systems calculate time-phased order quantities and safety stock, using selected inventory strategies. Some inventory planning systems conduct a “what if” analysis and compare the current inventory policy with simulated inventory scenarios to improve the inventory return on investment (ROI).
Inventory Turns:
This ratio measures how many times a company's inventory has been sold (turned over) during a period of time. The cost of goods sold divided by the average level of inventory on hand. Operationally, inventory turns are measured as total throughput divided by the average level of inventory for a given period - how many times a year the average inventory for a firm changes over, or is sold.
Inventory Turnover:
See: Inventory Turns
Inventory Velocity:
The speed with which inventory moves through a defined cycle (i.e., from receiving to shipping).
Invoice:
A detailed statement showing goods sold and amounts for each. The invoice is prepared by the seller and acts as the document that the buyer will use to make payment.
IP:
See: Intellectual Property
IPT:
See: Integrated Product Team
IRR:
See: Internal Rate of Return
Irregular Route Carrier:
A motor carrier that is permitted to provide service utilizing any route.
IS:
See: Information Systems
ISDN:
See Integrated Services Digital Network
ISO:
See: International Standards Organization
ISO 9000:
A series of quality assurance standards compiled by the Geneva, Switzerland-based International Standardization Organization. In the United States, ISO is represented by the American National Standards Institute based in Washington, D.C.
ISO 14000 Series Standards:
A standard for environmental management systems to be implemented in any business, regardless of size, location or income. The aim of the standard is to reduce the environmental footprint of a business and to decrease the pollution and waste a business produces.
ISPS:
See: International Ship and Port Facility Security Code
ISI:
See: In Store Implementation
IT:
Information Technology.
ITL:
International Trade Logistics.
ITE:
See: Independent Trading Exchange
ITU:
See: Intermodal Transport Unit
Item:
A uniquely identifiable piece of inventory. Also known as a part number or SKU, an item can be raw materials, fluids, component parts, subassemblies, finished assemblies, packaging, etc. Usually differentiated by form, fit or function. Items which are painted different colors are generally viewed as different items.