Welcome back to Warehouse and Operations as a Career. I’m Marty and today I want to talk about something a listener brought up recently. They asked me, “Why don’t you just stick to explaining warehouse positions instead of all the other stuff that doesn’t make us more money?” Well, I guess that is a fair question.  As We’ve discussed many times, and I believe this is more than just my opinion. Here’s the thing about warehousing, transportation, distribution, manufacturing, and the whole supply chain.  Nothing stands alone. Every movement touches another movement. Every position affects another position. Every delay or error cost somebody time. And in my experience, every shortcut creates a problem somewhere else. And, not only do I believe, but I think I can show that the people who grow the farthest in this industry are usually the people who understand more than just their own task. That’s why we talk about everything, and why I try and get as many questions answered as possible. We can all learn something from all the experiences shared.  

On another note, kind of keeping with the theme of the day, I had a long time mentor, just this week say that the associate who learns the language of the operation becomes more valuable to the operation. 

So today, I thought we’d have some fun with that idea by talking about something every warehouse, dispatcher, inventory clerk, transportation coordinator, recruiter, manager, and forklift operator and a couple of hundred other positions hear every day. 

Acronyms. Being honest. The supply chain world LOVES acronyms. Sometimes it feels like people are speaking another language. A dispatcher says I Need POD on that LTL before DET hits, or customer’s asking for an ETA, and OS&D says there’s one QTR short. And the new employee standing there is thinking What in the world just happened? But once you understand the language, you start understanding the business. And understanding the business creates opportunity. So let’s break a few of them down today. 

POD. This one’s huge. POD simply means Proof of Delivery. It’s the signature, paperwork, photo, or electronic confirmation showing freight arrived where it was supposed to arrive. Without a POD, customers may refuse payment. Billing can stop. Claims can happen. That little signature? That’s money. It’s like a check. One missing POD can turn into hours of emails, phone calls, and frustration. 

The BOL or Bill of Laden. The BOL is basically the birth certificate of the shipment. It tells us what the freight is, where it’s going , who shipped it, who receives it , and how many pallets or cartons there are. Drivers carry it. Receivers check it. And dispatch tracks it. If the BOL is wrong, everything downstream can become wrong too. Again, everything touches everything. 

On to the ETA or the estimated time of arrival.  Everybody wants the ETA. An inaccurate ETA affects staffing, dock schedules, unloaders, production planning, and customer satisfaction. One late truck can ripple through an entire building. 

PU and DEL. PU means Pickup. DEL means Delivery. Simple terms, but they move the entire transportation world. You’ll hear the PU is at 1400.  And maybe read or hear DEL scheduled for tomorrow.  And you don’t want to read or hear Missed PU. Or Late DEL. Those two tiny acronyms control millions of dollars in freight every single day. 

Oh, these are common ones. FTL, TL and LTL. Now we’re getting into freight classifications. FTL or TL means Full Truckload or Truckload. That means one shipment basically fills the trailer. LTL means Less Than Truckload. That means multiple customers share trailer space. Why does this matter? Because of the freight handling changes. LTL freight gets touched more. More touches means more chances for damages. More planning, terminals being crossed and more scheduling. Understanding freight flow helps associates understand WHY all those processes we have to follow exist. 

STL or Spot Trailer Load. Now depending on the company, STL can mean different things, but many operations use it to describe a spotted trailer load or staged trailer movement. Spotters, yard dogs, dispatch, and shipping clerks all coordinate trailer movement to keep freight flowing. One missed trailer move can shut down a shipping lane. 

Then OS&D. This acronym can ruin everybody’s day. OS&D means, over, short, and damaged. To a receiver that’ll mean too much product. Missing product. Or Broken product! This affects inventory, customer service, claims, transportation, receivers, selectors and loaders. One crushed pallet may not seem important on the dock floor
until you realize it can cost thousands of dollars. 

Lets see, TONU or Truck Ordered Not Used. Transportation people cringe hearing this one. TONU means a truck was scheduled, showed up, and wasn’t needed. But the carrier is still going to expect his or her payment. Why? Remember all we’ve learned about transportation. A truck sitting parked still costs money. 

One we’re all getting used to is FSC, the fuel surcharge. Fuel affects everything. When diesel prices rise, FSC charges often rise too. That means transportation costs increase. And when transportation costs increase, product prices eventually increase. Again, everything touches everything. 

Two more biggies, DET and D&H. DET means Detention. D&H means Detention and Handling. This happens when drivers sit too long waiting to load or unload. And let me tell you, drivers will charge you and they remember facilities that waste their time. A poorly managed dock damages relationships fast. And we as warehouse people probably know these next two. APPT and FCFS. APPT means Appointment. FCFS means First Come, First Serve. Many warehouses, especially the larger ones run by appointments. Others unload trailers in the order in which they arrive. Understanding which system a facility uses affects scheduling, staffing, and transportation planning. 

And here are 3 system ones. TMS, WMS, and YMS. Now we’re talking technology. TMS is the Transportation Management System, and I’m sure us warehouse folks know WMS, the Warehouse Management System, and a little lesser known system is the YMS, Yard Management System. You’ll see these in high traffic operations. These three systems track freight, our inventory, trailer locations, our productivity, shipping schedules, receiving , even our labor hours and cost. Really pretty much what ever information we feed into them! Years ago, many warehouses used clipboards and paper. Today? Data drives our operations. And the associate willing to learn systems becomes extremely valuable. A forklift operator that understands WMS screens and RF scanners may eventually move into inventory control or leadership. Knowledge adds up. 

ASN and EDI. ASN means Advanced Shipping Notice. That’s electronic information sent before freight arrives and EDI means Electronic Data Interchange. Computers talking to computers. Purchase orders, invoices, shipment notifications, receiving confirmations, all moving electronically behind the scenes. Most associates never see it. But it’s happening constantly. 

OK, this one most of us know. A PO or Purchase Order. A PO is permission to buy product. Without a PO, many companies won’t even receive the freight or their order. That one document controls inventory flow, accounting, receiving, and purchasing. 

Here’s another on us production people know. KPI or Key Performance Indicator. KPIs are measurements. Cases per hour. Pallets per hour. On-time shipping. Inventory accuracy. Dock turn times. You’ve heard me say What gets measured gets managed. Warehouses or operations survive on measurements. And associates that understand KPIs understand how and why businesses make decisions. 

Next we have RDC, DC, and MC. These are facility types. RDC is for Regional Distribution Center. DC is Distribution Center. MC is Manufacturing Center. Different responsibilities. Different workflows. But all connected together in the supply chain. 

Now here’s a few for the transportation folks. ELD, GPS, DOT, and HOS. As we know, transportation runs on compliance. The ELD is an Electronic Logging Device. Remember keeping our paper logs? GPS, Global Positioning System. DOT or Department of Transportation, and HOS stands for Hours of Service. These systems and regulations track Driver hours. Safety, Speed, Routes, and Compliance. Transportation isn’t just driving a truck anymore. It’s technology, planning, regulation, and accountability. 

Keeping things on the road. We have NMFC and SCAC.  Now we’re getting deep into freight language. NMFC means National Motor Freight Classification. SCAC means Standard Carrier Alpha Code. These help identify carriers and classify freight for shipping and pricing purposes. Again, Stuff most people never think about. But somebody in the operation has to understand it. 

And BCO, FOB, and CFR. BCO often means Beneficial Cargo Owner. FOB means Free On Board. CFR means Cost and Freight. These terms matter heavily in international and large-scale shipping. They determine responsibility. Who pays for freight. Who owns the risk and where liability transfers. And one misunderstanding here can become extremely expensive. 

Now some people may hear all these acronyms and think “Well, I don’t need to know all that. I just drive a forklift.” Maybe today you do. But tomorrow? You might have an opportunity train new hires. Lead a shift. Help coordinate the outbound shift. Move into the inventory side of op’s, maybe even become a dispatcher, or running transportation or supervise operations. Remember how we’re always talking about learning and growing? The people who grow in this industry usually become students of the industry. Not just students of their task. And, that’s why we talk about “all this other stuff.” I believe every term, every process, every department, every movement is another piece of understanding as to how the machine works. And once you understand the machine, you become more valuable to the machine. 

Warehousing and transportation are not simple jobs anymore. They’ve grown. Technology. People. Safety. Metrics. Compliance. Movement. Communication. And that growth is a good thing. Every one of us touches another part of the process. And I feel, that’s why knowledge matters. Not because every acronym instantly puts money in your pocket. But because understanding creates opportunities that eventually do. The more of the language you understand the more rooms you can walk into confidently. And confidence backed by knowledge? That’s where careers begin separating themselves. The people who understand the whole operation eventually outgrow the people who only understand one task. And that, my friends is why we talk about all of it. 

Well, there’s two more cents worth of my opinions. We do talk about a lot more than warehouse positions, but, I feel, and can pretty much attest that, if we learn it all, hang out with those from other departments, learn that task before ours and after ours, we will earn more and in many different ways.  

Thanks for stopping in again today, and above all, remember safety is our number 1 priority. We want to be doing this a long time!