Key Terms and Definitions in Flower Logistics

Flower logistics is a complex process that requires a precise understanding of many terms and definitions. Knowing these terms will help you better navigate international flower transportation, ensuring their safety and freshness throughout the journey from producer to end consumer. On this page, we briefly review the key concepts and terms commonly encountered in flower logistics.

Strategy and Management

Time and Planning

ETA (Estimated Time of Arrival) - The estimated time the goods are expected to arrive at the destination, considering current conditions and circumstances.
ETD (Estimated Time of Departure) - The estimated time the goods are planned to depart from the initial point, considering current conditions and circumstances.
Lead Time - The period from order placement to delivery to the end recipient.
Transit Time - The time taken to transport goods from the point of departure to the destination, excluding order processing and delays.

Planning and Optimization

Load Planning - The process of determining the best way to load goods into vehicles to maximize space utilization and ensure cargo safety.
Milk Run - A route where a vehicle sequentially collects or delivers goods from multiple points, optimizing vehicle usage and reducing logistics costs.
Route Optimization - The process of selecting the best route for transporting goods, minimizing distance, transit time, and costs while avoiding traffic and other obstacles.

Supply Chain Management

Last Mile Delivery - The final stage of delivering goods from the distribution center or logistics hub to the end consumer, often the most costly and complex part of the logistics process.
Reverse Logistics - The process of managing the return of goods from the end consumer back to the manufacturer or distributor for return, recycling, or disposal.
Supply Chain Management (SCM) - Coordination and management of all activities in the supply chain, from raw material procurement to final product delivery to the consumer, aiming to improve efficiency and reduce costs.
Supply Chain Visibility - The ability to track all stages of goods movement and information in real-time throughout the supply chain, allowing for rapid response to changes and problem prevention.
Third-Party Logistics (3PL) - Services provided by logistics companies that take over part or all of the logistics function for another business, including transportation, warehousing, and other related operations.

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Inventory Management and Warehousing

Bonded Warehouse - A warehouse under customs control where imported goods are stored until they are cleared and relevant duties and taxes are paid.
Cycle Count - A regular process of partial inventory of the warehouse, where certain goods are counted according to a set schedule to ensure data accuracy.
Inventory Management - The process of controlling and optimizing the quantity and placement of goods in a warehouse to minimize costs and ensure timely order fulfillment.
JIT (Just in Time) - An inventory management method where materials and goods are delivered just in time for use, minimizing warehouse stock and storage costs.
VMI (Vendor Managed Inventory) - A strategy where the supplier is responsible for managing the client's inventory, ensuring timely deliveries and replenishment of goods.
Warehouse Management System (WMS) - Software for automating and optimizing all warehouse operations, including receiving, storing, moving, and shipping goods.
Warehousing - The process of storing goods in a warehouse to ensure their safety and readiness for subsequent transportation or sale.

Economics and Tariffs

Demurrage - A penalty for exceeding the agreed time for cargo stay in the port or warehouse after loading or unloading operations are completed.
Detention - A fee for delaying a container or vehicle beyond the set time when the cargo is already unloaded, but the container is not returned, or the vehicle is not released.
Freight Rate - The cost of transporting cargo on a specific route, set by the transport company and depending on the weight, volume of cargo, and distance of transportation.
Handling Fee - An additional charge for cargo handling services, including loading and unloading operations, packaging, and other related operations.

Key Terms

AWB (Air Waybill) - An official document accompanying air shipments, confirming the acceptance of the cargo by the airline and containing information about the route, sender, recipient, and transport conditions.
B/L (Bill of Lading) - A document confirming the receipt of cargo on board a ship, serving as both a contract of carriage and a title document transferring ownership of the cargo.
Buffer Stock - A reserve stock of goods stored in a warehouse to prevent supply disruptions and ensure uninterrupted production or customer service.
Carrier - A company or individual providing transportation services for cargo from the sender to the recipient under contract.
CIF (Cost, Insurance, and Freight) - A delivery term where the seller bears the costs and risks until the goods are delivered on board the ship, including transportation and insurance to the destination port.
Distribution - The process of delivering goods from the manufacturer to the end consumer through a network of distributors, warehouses, and retail outlets.
FOB (Free on Board) - A delivery term where the seller is responsible for the goods until they are loaded on the ship at the port of departure; thereafter, all risks and costs pass to the buyer.
Incoterms - International commercial terms. A set of standards developed by the International Chamber of Commerce that define the responsibilities, risks, and costs of the parties in international trade.
Outsourcing - The practice of a company delegating certain business processes or functions to third-party providers to improve efficiency and reduce costs.
Packaging - Materials and processes used to protect and prepare goods for transportation, storage, and sale, including boxes, containers, wraps, and pallets.
Shipping Container - A standardized container used for the transportation and storage of goods, ensuring convenience and safety when moving various types of goods between vehicles and storage facilities.

Learn more about the process of international flower transportation to better understand all the logistics stages.

Technologies and Operational Management

Logistics Networks and Operations

Inbound Logistics - The process of receiving, storing, and moving raw materials and goods from suppliers to production facilities or warehouses.
Logistics Network - The infrastructure, including warehouses, vehicles, consolidation, and distribution points, that supports the efficient movement of goods from senders to recipients.
Outbound Logistics - The process of storing, transporting, and delivering finished products from production facilities or warehouses to end consumers.
Cross-border Logistics - The organization and management of transporting goods across international borders, including customs clearance and compliance with regulatory requirements of different countries.

Technologies and Systems

EDI (Electronic Data Interchange) - A technology for automated exchange of standard business documents between companies' information systems without human intervention.
SaaS (Software as a Service) - A model of software delivery by subscription over the internet, where users get access to applications and services without the need for installation and maintenance.

Processes and Activities

Biosecurity Measures - Procedures and protocols aimed at preventing the introduction and spread of pests and diseases during the transportation and storage of flowers.
Cargo Consolidation - The process of combining multiple smaller shipments from different senders into one large shipment to optimize transportation costs and improve logistics efficiency.
Consolidation Point - A location where shipments from different senders are collected, combined, and prepared for further transportation in one direction.
Cross-docking - A logistics practice where goods are transferred directly from inbound to outbound transportation without intermediate storage, reducing time and storage costs.
Drop Shipping - A logistics model where goods are shipped directly from the supplier to the end consumer, bypassing intermediate storage at the seller's facilities.
E-commerce Fulfillment - A set of processes including receiving, processing, packing, and delivering orders placed through online stores.
Flower Box - Specially designed packaging for transporting flowers, ensuring their protection and freshness during transit.
Flower Grading - The assessment and classification of flowers by quality and size to meet market and customer requirements.
Order Fulfillment - The process from receiving an order to delivering it to the customer, including processing, picking, packing, and shipping.
Overnight Shipping - An express delivery service where goods are delivered to the recipient overnight, ensuring quick and timely delivery.
Palletizing - The process of placing and securing goods on pallets for convenient transportation and storage.
Pick and Pack - The procedure of collecting goods from warehouse shelves and packing them for shipment to the customer, commonly used in e-commerce.
Post-harvest Handling - Measures aimed at preserving the freshness and quality of flowers after harvest, including cooling, packaging, and transportation.
Slotting - The strategy of optimally placing goods in a warehouse to improve order picking efficiency and warehouse space utilization.
Value-Added Services - Additional services provided by logistics companies to enhance service quality, such as packaging, labeling, cross-docking, and others.

Storage Conditions and Control

Cargo Temperature Monitoring - Systems and devices for tracking and recording cargo temperature during transportation to ensure its safety and compliance with storage conditions.
Cold Storage - A method of storing flowers at low temperatures to slow their metabolic processes and extend freshness.
Cold Treatment - A procedure of treating flowers with cold to eliminate pests and diseases, ensuring compliance with phytosanitary requirements.
Controlled Atmosphere Storage - A method of extending the freshness of flowers by altering the gas composition of the environment, including reducing oxygen levels and increasing carbon dioxide levels.
Ethylene Absorbers - Devices or materials used to remove ethylene from the environment to minimize its negative impact on flowers and prevent premature wilting.
Ethylene Damage - The negative impact of ethylene on flowers, which can cause premature wilting and shorten their lifespan.
Floral Preservative - Solutions added to water for flowers to extend their freshness and vase life by providing nutrients and bacterial inhibitors.
Humidity Packs - Devices or materials used to maintain optimal humidity levels around flowers to prevent them from drying out or becoming overly humid.
Stem Support - Devices used to prevent stem damage during transportation, ensuring the protection and integrity of flowers.
Temperature Logger - A device for recording temperature data throughout the transportation of cargo, allowing for the monitoring and control of flower storage conditions.
Transpiration Control - Managing water loss by plants by regulating environmental conditions such as temperature and humidity to maintain flower freshness.
Vase Life - The period during which flowers remain fresh and attractive after delivery and placement in a vase.

Claims Processing and Insurance

Cargo Insurance - An insurance policy providing financial protection against the risks of loss or damage to cargo during transportation.
Freight Claim - An official request for compensation for loss, damage, or delay of cargo, submitted by the sender or recipient to the carrier or insurance company.

Transport and Regulatory Aspects

Transport Documents

Cargo Manifest - A document containing a detailed list of all cargo on a transport vehicle, including information about the sender, recipient, and quantity of goods.
Dock Receipt - A document confirming the receipt of cargo at a warehouse or port terminal, serving as the basis for issuing a bill of lading.
Export Declaration - An official document required by customs authorities containing information about the goods, their value, and the final destination for export.
Import Permit - An official permit issued by government authorities allowing the importation of certain goods into the country.
Packing List - A document detailing the contents of each box or container, including the quantity, weight, and dimensions of goods, to facilitate inspection and customs clearance.
Phyto Certificate - A document certifying that plants or flowers have been inspected and meet the phytosanitary requirements of the importing country.
POD Service - A service provided by logistics companies, including confirmation of the fact of cargo delivery to the recipient.
Proof of Delivery (POD) - A document signed by the recipient confirming that the cargo was delivered intact and undamaged.

Flower Preparation and Transportation

Floral Foam - A porous material used to hold flowers in arrangements and extend their freshness by providing a constant water supply.
Flower Auction - A marketplace where flowers are sold at auction to buyers, including florists and distributors, based on competitive bids.
Flower Conditioning - Processes of preparing flowers before transportation, including trimming, removing excess leaves, and treating stems with special solutions to extend freshness.
Flower Rehydration - The process of restoring the water balance of flowers after transportation, including immersing the stems in water and using special solutions.
Pre-cooling - The procedure of rapidly cooling flowers to slow their metabolism and extend freshness for transportation.
Pre-treatment - Procedures for preparing flowers for transportation, including the use of chemical solutions and special methods to extend their freshness and resilience.
Reverse Auction - An auction where sellers compete to sell their goods to a buyer by offering lower prices, often used for procuring logistics services.
Ripening Room - A special room where controlled conditions are created for ripening flowers or other plants before sale.
Stem Cutting - An important procedure to ensure water absorption and maintain flower freshness, including refreshing the cut of the stems before immersion in water.

Special Transportation Conditions

Cold Chain - A logistics system ensuring the maintenance of low temperatures at all stages of transportation and storage to preserve the freshness of perishable goods like flowers.
Dry Shipping - A method of transporting goods without the use of liquids or wet conditions, which is especially important for some products to avoid damage.
Humidity Control - Processes and technologies for maintaining optimal humidity levels during transportation and storage to prevent drying out or overhydration of goods.
Refrigerated Transport - Transportation of goods in temperature-controlled vehicles equipped with refrigeration units to maintain the necessary temperature.
Temperature-controlled transport - Processes and technologies to maintain a specific temperature regime during transportation, important for preserving the quality and freshness of goods.
Track and Trace - Systems and technologies that allow tracking the location and condition of cargo at all stages of transportation, ensuring transparency and security of logistics operations.

Customs Procedures and Requirements

Customs Compliance - Procedures and practices aimed at ensuring that all operations related to international trade comply with customs regulations and legislation.
Customs Duty - A tax levied by the state on imported or exported goods, which must be paid for customs clearance.
Free Trade Zone (FTZ) - Special economic zones where goods can be imported, processed, and re-exported without paying customs duties, promoting international trade.
HS Code (Harmonized System Code) - An international system for classifying goods used to standardize the names and coding of products in international trade and customs declarations.
Port of Entry - A port or place through which imported goods officially enter the country and undergo customs clearance.
Quarantine Inspection - Procedures for checking and analyzing goods for pests and diseases to prevent their spread and protect local agriculture and ecosystems.

Types of Loads and Transport

Airfreight - Transporting goods by air, ensuring fast delivery over long distances.
Backhaul - Transporting goods in the reverse direction on a route, used to optimize vehicle loading and reduce empty runs.
Containerization - A method of transporting goods packed in standard containers, facilitating loading, unloading, and transportation by various types of transport.
Deadhead - Moving a vehicle without cargo, often in the reverse direction after delivering goods.
FCL (Full Container Load) - A method of transportation where the container is fully loaded with goods from one sender, optimizing container use and reducing costs.
Intermodal Transport - Transporting goods using multiple types of transport (e.g., road, rail, and sea) without reloading the goods themselves.
LCL (Less than Container Load) - A method of transportation where the container is loaded with goods from several senders, reducing transportation costs for small batches of goods.
Line Haul - Transporting goods over long distances between major points, such as large cities or transport hubs.
Railfreight - Transporting goods by rail, ensuring high load capacity and cost-effectiveness over long distances.
Roadfreight - Transporting goods by road, ensuring flexibility and convenience for delivery over short and medium distances.
Seafreight - Transporting goods by sea, the most economical way for large volumes of cargo over long distances.
Shipping Lane - A designated path at sea for ship navigation, ensuring safety and efficiency in maritime navigation.
Tare Weight - The weight of the empty packaging or container without cargo, used to calculate the total weight of the cargo during transportation.

Transportation of Hazardous and Special Cargo

Hazardous Material (HazMat) - Substances or products that pose a risk to health, safety, property, or the environment and require special precautions during transportation and storage.
Perishable - Perishable cargo that quickly loses its consumer properties and requires special transportation and storage conditions, such as specific temperature and humidity.
Green Logistics - An approach to logistics aimed at minimizing negative environmental impacts, including the use of environmentally friendly vehicles, reducing carbon emissions, and efficient resource management.

Participants and Services

Consignee - The person or organization authorized to receive the cargo after its delivery from the sender, specified in the transport documents.
Customs Broker - A specialist or company that handles customs documentation and facilitates customs procedures for importing and exporting goods.
Freight Forwarder - A company or person that organizes and coordinates the transportation of goods from the sender to the recipient, including selecting transportation modes, routes, and ensuring necessary documentation.
Logistics Provider - A company that provides comprehensive supply chain management services, including transportation, warehousing, distribution, and other logistics operations.
Shipper - The person or organization responsible for sending the cargo, including packaging, labeling, and preparing it for transportation.
Third-Party Carrier - An independent transport company providing cargo transportation services under a contract with a freight forwarder or logistics provider.

Understanding key terms in flower logistics plays an important role in ensuring successful transportation and storage. We hope this glossary helps you better understand the processes and facilitate your work. Stay tuned for updates to keep abreast of all the innovations and best practices in flower logistics.