Over Height


Open Side Container


Open Top Container




Over Width


Original bill of lading. See also Negotiable Bill of Lading.


On-Board Quantity (before loading)



Obsolescence or Obsolete

Goods that are no longer usable for their intended purpose through expiration, contamination, or change of need.

Obsolete Inventory

Inventory for which there is no forecast demand expected. A condition of being out of date. A loss of value occasioned by new developments that place the older property at a competitive disadvantage.


Oil-Lubricated Stern Bearing, Continuous Liner on Tailshaft


Operations Control Centre (INMARSAT)

Occupiable Space

The space remaining in the warehouse for storing warehousing units after allocating space for service aisles, access aisles, and other utility space.

Occupied Space

Occupiable space actually occupied by warehousing units or other warehousing elements.

Ocean Bill of Lading

The bill of lading issued by the ocean carrier to its customer.

Ocean Carrier

An enterprise that offers service via ocean (water) transport.


Oil Companies International Maritime Forum


Overland Common Point


see Overland Common Port


Outer Continental Shelf


Ocean Drilling Program


Operating Differential Subsidy: A direct subsidy paid to U.S.-flag operators to offset the high operating cost of U.S.-flag ships when compared to foreign-flag counterparts.


Operating Differential Subsidy Agreement


Organization for Economic Cooperation and Development. The Maritime Transport Committee is part of this organization.


Offshore Engineering Department.


see Overall Equipment Effectiveness


See Original Equipment Manufacturer.


Original Equipment Manufacturer


Original Equipment Manufacturer.


Office of Foreign Assets Control


See Tender.


A computer term which describes work done outside of the computer system or outside of a main process within the corporate system.


Utilizing an outsourcing service provider located in a country other than where the client is located.


Oil Pollution.


see Object Linking and Embedding


Where market availability is held by a limited number of firms.


One man Bridge Operation


Qualified Member of the Engine department. Unlicensed members of the engine department who attend to a fully automated engine room.


Origin Motor Terminal, Origin Rail Terminal, Destination Motor Terminal. Location designated by a motor/rail carrier at origin/destination points where, the motor carrier or his authorised agent assembles, holds or stores an ocean carrier’s containers and chassis, where loaded containers are received from shippers or their agents, where empty containers are delivered to shippers or their agents.

On Deck Stowage

Cargo stowed on the deck of the vessel.

On Order

The amount of goods that has yet to arrive at a location or retail store. This includes all open purchase orders including, but not limited to, orders in transit, orders being picked, and orders being processed through customer service.

On Time In Full

Sales order delivery performance measure which can be expressed as a target, say, of achieving 98% of orders delivered in full, no part shipments, on the requested date.


The carriage of goods (containers) by any mode of transport to the place of delivery after discharge from the ocean vessel (main means of transport) at the port (place) of discharge.


Pertaining to work performed when demand is present. Typically used to describe products which are manufactured or assembled only when a customer order is placed.

On-Hand Balance

The quantity shown in the inventory records as being physically in stock.

On-Line receiving

A system in which computer terminals are available at each receiving bay and operators enter items into the system as they are unloaded.

On-Time Performance

The proportion of time that a transit system adheres to its published schedule times within stated tolerances.

One Piece Flow

Moving parts through a process in batches of one

One-Piece Flow

Moving parts through a process in batches of one.

One-Way Networks

The advantages generally lie with either the seller of buyer, but not with both. B2C web sites are one-way networks.


A computer term which describes activities performed using computer systems.


Office of Naval Research


Offshore Northern Seas Conference


Owners Option


Officer of the deck


Out Of Gauge.


Officer of the watch

OPA 90

Oil Pollution Act of 1990 (USA)


One Person Bridge Operation.


Offshore Petroleum Discharge System.


Organization of Petroleum Exporting Countries

Open Market Purchases

Purchasing without contract or negotiation. Such practice may exist in an emergency situation when a contract is not in place.

Open Policy

See Marine Cargo Insurance

Open Rates

Rates established for each individual carrier. These rates are listed in a tariff list but may differ according to carrier.

Open Storage

A condition in which all lots may be withdrawn or partial withdrawals made from lots without disturbing another lot.

Open-End Contract

A contract in which the term or quantity is not defined.


A control technique used in aggregate inventory management in which authorizations to purchase are made without being committed to specific suppliers. These authorizations are often reviewed by management using such measures as commodity in dollars and by time period.


Authorization to receive goods, such as a blanket release, firm purchase order item, or supplier schedule.

Operating Differential Subsidy (ODS)

A payment to an American-flag carrier by the U.S. government to offset the difference in operating costs between U.S. and foreign vessels.

Operating Ratio

A measure of operating efficiency defined as Operating expenses divided by the Operating revenues x 100.

Operational Performance Measurements

  1. In traditional management, performance measurements related to machine worker, or department efficiency or utilization. These performance measurements are usually poorly correlated with organizational performance.
  2. In theory of contraints, performance measurements that link causally to organizational performance measurements. Throughput, inventory, and operating expense are examples. Also see: Performance Measures.


Oil pollution preparedness and response


The process of making something as good or as effective as possible with given resources and constraints.


A choice that must be made by the customer or company when customizing the end product. In many companies, the term option means a mandatory choice from a limited selection.

Option to Renew

A contract may stipulate that the purchasing authority has the option to reinstate for another term.

Optional Replenishment Model

A form of independent demand item management model in which a review of inventory on hand plus on order is made at fixed intervals. If the actual quantity is lower than some predetermined threshold, a reorder is placed for a quantity M x, where M is the maximum allowable inventory and x is the current inventory quantity. The reorder point, R, may be deterministic or stochastic, and in either instance is large enough to cover the maximum expected demand during the review interval plus the replenishment lead time. The optional replenishment model is sometimes called a hybrid system because it combines certain aspects of the fixed reorder cycle inventory model and the fixed reorder quantity inventory model. Also see: Fixed Reorder Cycle Inventory Model, Fixed Reorder Quantity Inventory Model, Hybrid Inventory System, Independent Demand Item Management Models


Origin Receiving Charge


EDIFACT Purchase order change request message


A type of request for goods or services.

Order Batching

Practice of compiling and collecting orders before they are sent in to the manufacturer.

Order Complete Manufacture to Customer Receipt of

Average lead time from when an order is ready for shipment to customer receipt of order, including the following sub-elements: pick/pack time, preparation for shipment, total transit time for all components to consolidation point, consolidation, queue time, and additional transit time to customer receipt. (An element of Order Fulfillment Lead-Time). Note: Determined separately for Make-to-Order, Configure/Package-to-Order, Engineer-to-Order and Make-to-Stock products.

Order Consolidation Profile

The activities associated with filling a customer order by bringing together in one physical place all of the line items ordered by the customer. Some of these may come directly from the production line others may be picked from stock.

Order Cycle

The time and process involved from the placement of an order to the receipt of the order.

Order Cycle Time

The time that elapses from placement of order until receipt of order. This includes time for order transmittal, processing, preparation, and shipping.

Order Entry and Scheduling

The process of receiving orders from the customer and entering them into a company's order processing system. Orders can be received through phone, fax, or electronic media. Activities may include 'technically' examining orders to ensure an orderable configuration and provide accurate price, checking the customer's credit and accepting payment (optionally) , identifying and reserving inventory (both on hand and scheduled) , and committing and scheduling a delivery date.

Order Entry Complete to Start Manufacture

Average lead-time from completion of customer order to the time manufacturing begins, including the following sub-elements: order wait time, engineering and design time. (An element of Order Fulfillment Lead-Time). Note: Determined separately for Make-to-Order, Configure/Package-to-Order, and Engineer-to-Order products. Does not apply to Make-to-Stock products.

Order Fill

A measure of the number of orders processed without stockouts, or the need to back order, expressed as a percentage of all orders processed in the distribution center or warehouse.

Order Fulfillment Lead Times

Average, consistently achieved lead-time from customer order origination to customer order receipt, for a particular manufacturing process strategy (Make-to-Stock, Make-to-Order, Configure/Package-to-Order, Engineerto- Order). Excess lead-time created by orders placed in advance of typical lead times (Blanket Orders, Annual Contracts, Volume Purchase Agreements, etc.), is excluded. (An element of Total Supply Chain Response Time) Calculation: Total average lead time from [Customer signature/authorization to order receipt] + [Order receipt to completion of order entry] + [Completion of order entry to start manufacture] + [Start manufacture to complete manufacture] + [Complete manufacture to customer receipt of order] + [Customer receipt of order to installation complete] Note: The elements of order fulfillment lead time are additive. Not all elements apply to all manufacturing process strategies. For example, for Make-to-Stock products, the lead-time from Start manufacture to complete manufacture equals 0.

Order Interval

The time period between the placement of orders.

Order Level

The level of stock of any item at which an order is initiated for more supplies of that item.

Order Level System

See Fixed Reorder Cycle Inventory Model

Order Management

The planning, directing, monitoring, and controlling of the processes related to customer orders, manufacturing orders, and purchase orders. Regarding customer orders, order management includes order promising, order entry, order pick, pack and ship, billing, and reconciliation of the customer account. Regarding manufacturing orders, order management includes order release, routing, manufacture, monitoring, and receipt into stores or finished goods inventories. Regarding purchase orders, order management includes order placement, monitoring, receiving, acceptance, and payment of supplier.

Order Management Costs

One of the elements comprising a company's total supply chain management costs. These costs consist of the following:1. New Product Release Phase In and Maintenance:

Order Picker

A warehouseman assigned to the function of making withdrawals of warehousing units.

Order Picking

Assembling a customer's order from items in storage.

Order Point Order Quantity System

The inventory method that places an order for a lot whenever the quantity on hand is reduced to a predetermined level known as the order point. Also see: Fixed Reorder Quantity Inventory Model, Hybrid system

Order Processing

Activities associated with filling customer orders.

Order Processing Time

The amount of time, determined by the inventory manager, needed to carry out all of the steps of issue and reconciliation of merchandise.

Order Promising

The process of making a delivery commitment, i.e., answering the question, When can you ship? For maketo- order products, this usually involves a check of uncommitted material and availability of capacity, often as represented by the master schedule available-to-promise. Also see: Available-to-Promise

Order Receipt to Order Entry Complete

Average lead-time from receipt of a customer order to the time that order entry is complete, including the following sub-elements: order revalidation, product configuration check, credit check, and order scheduling. Note: Determined separately for Make-to-Order, Configure/Package-to-Order, Engineer-to-Order, and Make-to-Stock products.

Order Selector

Same as order picker.

Order Tracking

The order status is monitored on the progress of the order from pickup to the final delivery.


An intertrading partner business process of taking the customer’s order, picking the product at the warehouse, shipping the product through logistics, receiving the product at the customer’s site, and flowing the cash from the customer’s payment to the general ledgers of the respective trading partners.

Ordering Cost

The cost of placing an inventory order with a supplier.


EDIFACT Purchase order message


EDIFACT Purchase order response message


Ore/Coil Carrier.

Organizational transparency

Refers to virtual organizations in which all the functions of an organization are carried out but are not under the total control of a single company.


The place where a shipment begins its movement.

Original Equipment Manufacturer

A manufacturer that buys and incorporates another supplier’s products into its own products. Also, products supplied to the original equipment manufacturer or sold as part of an assembly. For example, an engine may be sold to an OEM for use as that company’s power source for its generator units.

Original Equipment Manufacturer (OEM)

A manufacturer that buys and incorporates another supplier's products into its own products. Also, products supplied to the original equipment manufacturer or sold as part of an assembly. For example, an engine may be sold to an OEM for use as that company's power source for its generator units.


Ore/Oil Carrier


see Over, Short, and Damaged


See Over, Short, and Damaged.


Open Shelter Deck


Open Shelter Deck


Occupational Safety and Health Administration


Oil Spill Removal Organization


EDIFACT Order status enquiry message


EDIFACT Order status report message


Offshore Supply Vessel




Offshore Technology Conference


see On Time In Full


Operator of Uninspected Passenger Vessels.

Out of Gauge

Cargo which exceeds the internal dimensions of the container in width, length or height.

Out Of Stock

The state of not having inventory at a location and available for distribution or for sell to the consumer (zero inventory).

Out of Stocks

See Stock Outs

Out-of-Pocket Cost

The cost directly assignable to a particular unit of traffic and which a company would not have incurred if it had not performed the movement.


Export shipments.

Outbound Consolidation

Consolidation of a number of small shipments for various customers into a larger load. The large load is then shipped to a location near the customers where it is broken down and then the small shipments are distributed to the customers. This can reduce overall shipping charges where many small packet or parcel shipments are handled each day. Also see: Break Bulk

Outbound Logistics

The process related to the movement and storage of products from the end of the production line to the end user.


A data point that differs significantly from other data for a similar phenomenon. For example, if the average sales for a product were ten units per month, and one month the product had sales of 500 units, this sales point might be considered an outlier.


The process of involving the supplier in a close partnership with the firm and its operations management system. Outpartnering is characterized by close working relationships between buyers and suppliers, high levels of trust, mutual respect, and emphasis on joint problem solving and cooperation. With outpartnering, the supplier is not viewed as an alternative source of goods and services (as observed under outsourcing) , but rather as a source of knowledge, expertise, and complementary core competencies. Outpartnering is typically found during the early stages of product life cycle when dealing with products that are viewed as critical to the strategic survival of the firm. Also see: Customer-Supplier Partnership.


Destination port, other than a base port, to which rates apply but which may be subject to additional outport arbitraries.


To utilize a third party provider to perform services previously performed in house. Examples include manufacturing of products and call center/customer support.

Outsourced Cost of Goods Sold

Operations performed on raw material outside of the responding entity’s organization that would typically be considered internal to the entity’s manufacturing cycle. Outsourced cost of goods sold captures the value of all outsourced activities that roll up as cost of goods sold. Some examples of commonly outsourced areas are assembly by subcontract houses, test, metal finishing or painting, and specialized assembly process.

Outsourced Cost-of-Goods Sold

Operations performed on raw material outside of the responding entity's organization that would typically be considered internal to the entity's manufacturing cycle. Outsourced cost-of-goods sold captures the value of all outsourced activities that roll up as cost-of-goods sold. Some examples of commonly outsourced areas are assembly, test, metal finishing or painting, and specialized assembly process.

Over Landed

(1) Cargo volume count more than originally shipped. 2. Cargo taken beyond original port of discharge.

Over, Short, and Damaged

Excess, shortage or damaged items are included in a report issued at the warehouse. Used to file a claim with a carrier.

Over, Short, and damaged (OS&D)

This is typically a report issued at the warehouse when goods are damaged. Used to file a claim with a carrier.


A motor carrier operation that reflects long-distance moves; the opposite of local operations.

Overall Equipment Effectiveness

A measure of overall equipment effectiveness that takes into account machine availability & performance as well as output quality.


The condition created by using a plane loading area that is larger in area than the pallet or platform surface upon which the first course is laid.


Includes all of the factors other than direct labor and materials included in the cost of goods sold. This figure is usually expressed as a percentage of direct labor cost, a dollar amount per production unit, and several other ways.

Overland Common Port

A special rate concession made by shipping lines, rail carriers and truckers serving the U.S. West Coast for export and import traffic, intended to benefit midwest shippers and importers by equalising rates to and from other coastal areas, and offering these midwest companies a comparable alternative. The steamship companies lower their rates and the inland carriers pick up the terminal charges, which consist of handling charges, wharfage charges and car loading or unloading charges. OCP rates apply to cargo shipped from or consigned to the states of: North Dakota, South Dakota, Nebraska, Colorado, New Mexico and all states east thereof. OCP rates in Canada apply to the provinces of: Manitoba, Ontario and Quebec.


A trucking operation in which the opener of the truck is also the driver.


A truck driver who owns and operates his/her tractor/trailer.

Ownership, concentration of

Large companies can get economies of scale and efficient operations, so a few large companies often dominate industries (with examples like supermarket chains and transport companies). Continuing benefits mean that these large companies tend to grow at the expense of smaller rivals. The result is a continuing concentration of ownership, with the largest organizations setting the standards that others strive to match.