Monday, January 18, 2016

OTM Terminology

Order Base represents a requirement to move freight from one location to another location. Order base contains detailed information about the order like the involved party, scheduling information, source and destination locations, accessorials, special services, ship units and line items.

Order Release is created from Order  Base indicating that the order is ready for Shipment. An order release can be for the entire amount (count, weight, volume), an entire order or a portion of an order depending on what you want to release for transportation.

Order Movement is created from Order Releases based on Routing(multiple order movements for different transportation modes).

Buy Shipment represent the physical movement of freight from one location to another location. Its a service you buy from Service Provider. Payment will be done to the service provider for the delivery of goods from source to destination.

Sell shipment represent the cost for shipping freight to a specific final customer and contains the order for only one customer. Freight Cost will be billed to Customer.

Invoice is documented payments owed to service providers, carriers, and other parties.Invoices are buy-side records.

Bill is documented payments due from shippers and other customers. Bills are sell-side records.

Voucher is an authorization to pay all or part of the amount due on a payment invoice. Vouchers are typically created when an invoice is approved for payment.The actual payment of a voucher is performed by an accounts receivable system once the voucher has been issued.

Some other terminologies used in OTM

Order Release Line : Line Items within an order release - one order release can have several order release lines, such as 1000 shoes, 200 socks, 500 pants, etc.

Packaging Unit (PU): represents the object which goods to be shipped are packed in, such as a box or a tote (ex. box containing cans of soda).

Packaged Item (PI): form of product being shipped; contains attributes of the packaging (ex. can of soda).

Transport Handling Unit (THU) :represents the object used to hold the goods during transportation (ex. pallet or a crate). You can get more info about pallets from the below wiki article

https://en.wikipedia.org/wiki/Pallet

Ship Unit:shippable unit, usually including the packed goods and the Transport Handling Unit (THU); the entity that will be used when planning orders into shipments.

Note: Line items (or lines) should be used when information is known about the product such as net weight or net volume and not much is known about how it will be packed for shipping. Ship units should be used when it is known how the product will be packed for shipping

Equipment represents any mode or method of storage or transport used for the movement of a shipment from one location to another.

Equipment Groups identify the kinds of equipment (such as dry vans, flatbed trucks, container cars, hoppers, tankers, box cars, etc.) that are used to transport shipments from one destination to another.

Below example describes about the relation of above objects in detail

Toothpaste is sold in stores by the tube. The tube would be a Packaged Item.
Six tubes of toothpaste go into a small box. The small box would be a Packaging Unit.
Five hundred small boxes go onto a pallet. The pallet would be a Transport Handling Unit.
Twenty pallets fit into a twenty foot container. The container would be an Equipment Group

5 comments:

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