Value Added Tax


Vehicle On Wheel


Vehicles/Bulk Cargoes Carrier.


Amount of a carrier’s liability expressed by a dollar value placed on a shipment by the shipper that specifies the carrier’s maximum liability in the event of a covered claim for losses or damages.

Valuation Charges

Transportation charges to shippers who declare a value of goods higher than the value of the carriers' limits of liability.


The exchange worth rate for goods and services on the open market.

Value Added

Increased or improved value, worth, functionality, or usefulness.

Value Adding/Non-Value Adding

Assessing the relative value of activities according to how they contribute to customer value or to meeting an organization's needs. The degree of contribution reflects the influence of an activity's cost driver(s) .

Value Analysis

A method to determine how features of a product or service relate to cost, functionality, appeal and utility to a customer (i.e., engineering value analysis) . Also see: Target Costing.

Value Based Return

A measure of the creation of value. It is the difference between economic profit and capital charge.

Value Based Return (VPB)

A measure of the creation of value. It's the difference between economic profit and capital charge.

Value Chain

A series of activities, when combined, define a business process; the series of activities from manufacturers to the retail stores that define the industry supply chain.

Value Chain Analysis

A method of identifying all the elements in the linkage of activities a firm relies on the secure the necessary materials and services starting from their point of origin to manufacture, and to distribution of their products and services to an end user.

Value of Transfers

‘The total dollar value (for the calendar year) associated with movement of inventory from one ”bucket” into another, such as raw material to work-in-process, work-in-process to finished goods, plant finished goods to field finished goods or customers, and field finished goods to customers. Value of Transfers is based on the value of inventory withdrawn from a certain category and is often approached from a costing perspective, using cost accounts. For example, Raw Materials Value of Transfers is the value of transfers out of the raw material cost accounts (you may have cost centers associated with inventory locations, but all ”raw ingredients” usually share common cost accounts or can be rolled up into one financial view). The same goes for WIP. Take the manufacturing cost centers and look at the total value of withdrawals from those cost centers. While Average Gross Inventory represents the value of the inventory in the cost center at any given time, the Value of Transfers is the total value of inventory leaving the cost center during the year. The value of transfers for Finished Goods is, in theory, equivalent to COGS.’

Value Proposition

What the hub offers to members. To be truly effective, the value proposition has to be two-sided - a benefit to both buyers and sellers.

Value stream

All activities, both value added and nonvalue added, required to bring a product from raw material state into the hands of the customer, bring a customer requirement from order to delivery and bring a design from concept to launch.

Value stream mapping

A pencil and paper tool used in two stages: (1) Follow a product’s production path from beginning to end and draw a visual representation of every process in the material and information flows. (). Then draw a future state map of how value should flow. The most important map is the future state map.

Value-add process

Entities that transforms inputs to outputs that are of value to the customer, f.e. they are willing to pay for and that involve no correction or rework.

Value-Added Network (VAN)

A company that acts as a clearinghouse for electronic transactions between trading partners. A third party supplier that receives EDI transmissions from sending trading partners and holds them in a mailbox until retrieved by the receiving partners.

Value-Added Productivity Per Employee

Contribution made by employees to total product revenue minus the material purchases divided by total employment. Total employment is total employment for the entity being surveyed. This is the average full-time equivalent employee in all functions, including sales and marketing, distribution, manufacturing, engineering, customer service, finance, general and administrative, and other. Total employment should include contract and temporary employees on a full-time equivalent (FTE) basis.Calculation: Total Product Revenue-External Direct Material/[FTEs]

Value-Added Tax

A fee levied on all goods and services as goods and services go through the production chain, from the raw material to final use. The amount taxed is the amount of the value in a particular step in the production chain.


Assessing the relative value of activities according to how they contribute to customer value or to meeting an organization’s needs. The degree of contribution reflects the influence of an activity’s cost driver(s).

Value-Based Management

Satisfying customers to create shareholder wealth.

Value-of-Service Pricing

Pricing according to the value of the product the company is transporting; third-degree price discrimination; demand-oriented pricing; charging what the traffic will bear.


See Value-Added Network.

Van Operator

The individual(s) responsible for the operation of a tractor and for the loading, transportation and unloading of shipments. Also referred to as a driver.

Variable Cost

A cost that fluctuates with the volume or activity level of business.

Variance control

Monitoiring processes and detecting problems at an early stage so that corrective action can be taken to avoid quality - and time related waste.


see Value-Added Tax


Value Added Tax


EDIFACT Value added tax message


see Value-Based Management


See Value-Based Return.


St. Vincent & The Grenadines (Flag)


Vertical Centre of Buoyancy


Volume Correction Factor


Vertical Centre of Gravity


Vinyl Chloride Monomer. Gas occasionaly carried by LPG tankers. Highly cancerogen, heard that the German allows a crew to carry the gas only once in their carreer. Classified as flamable, toxic and polymerizable.


Vapor Control Valve


Voyage Data Recorder


Visual Display Unit


SAID [sic] of the wind when it changes. Also, to slack a cable and let it run out. (See PAY.) To veer and haul, is to haul and slack alternately on a rope, as in warping, until the vessel or boat gets headway.


Vessel Experience Factor


Rate of product movement through a warehouse.


The manufacturer or distributor of an item or product line. Also see: Supplier.

Vendor Code

a unique identifier, usually a number and sometimes the company's DUNS number, assigned by a customer for the vendor it buys from. Example: a grocery store chain buys Oreo cookies from Nabisco. For accounting purposes, the grocery store chain identifies Nabisco as Vendor #76091. One company can have multiple vendor codes. Example: Welch's Foods sells many different products - frozen grape juice concentrate, chilled grape juice, bottled grape juice, and grape jelly. Because each of these items is a different type of product (frozen food, chilled food, beverages, dry food) , they may also have a different buyer at the grocery store chain, requiring a different vendor code for each product line.

Vendor File

A file maintained that lists vendors. The file should contain all information pertinent to the vendor, i.e., application information, commodities supplied and performance record.

Vendor Owned Inventory

See Consignment Inventory

Vendor Project Management

Coordinating the relocation of specific components from the existing location into the new site or the asset swap of specific equipment. This includes management of one or multiple vendors who may support the specified equipment via warranty or maintenance service contracts.

Vendor-Managed Inventory

The practice of retailers making suppliers responsible for determining order size and timing, usually based on receipt of retail POS and inventory data. Its goal is to increase retail inventory turns and reduce stock outs. Its goal is to increase retail inventory turns and reduce stock outs. It may or may not involve consignment of inventory (supplier ownership of the inventory located at the customer).

Vendor-Managed Inventory (VMI)

The practice of retailers making suppliers responsible for determining order size and timing, usually based on receipt of retail POS and inventory data. Its goal is to increase retail inventory turns and reduce stock outs.

Vendor-Owned Inventory (VOI)

See Consignment Inventory.

Vertical Hub/Vertical Portal

Serving one specific industry. Vertical portal web sites are ones that cater to customers within a particular industry. Similar to the term 'vertical industry,' these web sites are industry specific, and, like a portal, they make use of Internet technology by using the same kind of personalization technology. In addition to industry-specific vertical portals that cater to consumers, another definition of a vertical portal is one that caters solely to other businesses.

Vertical Integration

The degree to which a firm has decided to directly produce multiple value-adding stages, from raw material to the sale of the product to the ultimate consumer. The more steps in the sequence, the greater the vertical integration. A manufacturer that decides to begin producing parts, components, and materials that it normally purchases is said to be backward integrated. Likewise, a manufacturer that decides to take over distribution and perhaps sale to the ultimate consumer is said to be forward integrated.

Vertical Occupancy Ratio

Ratio of occupancy in the occupiable space measured by counting the warehousing units in an active block and comparing this count with the capacity of its corresponding uniform block.

Vertical Separations

Space consumed by unit clearance between columns, stacks, posts, walls or other warehousing elements.


EDIFACT Vessel departure message


A floating structure designed for transport.

Vessel Manifest

A list of all cargoes on a vessel.


Vehicles Ferry.


Virgin Islands, British


Very High Frequency


Very High Frequency. (30-300 MHz) Designate also the radio communication apparatus using this frequency. It reaches only slightly beyond the horizon, except in favourable circumstances where transmission up to several hundred miles are possible.


Vessel Identification System.

Viral Marketing

The concept of embedding advertising into web portals and pop ups, and as e-mail attachments to spread the word about products or services that the target audience may not otherwise have been interested in.


Vietnam Register

Virtual Corporation

The logical extension of outpartnering. With the virtual corporation, the capabilities and systems of the firm are managed with those of the suppliers, resulting in a new type of corporation where the boundaries between the suppliers' systems and those of the firm seem to disappear. The virtual corporation is dynamic in that the relationships and structures formed change according to the changing needs of the customer.

Virtual Factory

A changed transformation process most frequently found under the virtual corporation. It's a transformation process that involves merging the capabilities and capacities of the firm with those of its suppliers. Typically, the components provided by the suppliers are hose that are not related to a core competency of the firm, while the components managed by the firm are related to core competencies. One advantage found in the virtual factory is that it can be restructured quickly in response to changing customer demands and needs.


The ability to access or view pertinent data or information as it relates to logistics and the supply chain, regardless of the point in the chain where the data exists.


The shared perception of the organization's future - what the organization will achieve and a supporting philosophy. This shared vision must be supported by strategic objectives, strategies, and action plans to move in in the desired direction.Synonym: Vision Statement.


Very Large Bulk Carrier (over 180,000 DWT)


Very Large Crude Carrier


Very Large Crude Carrier (between 160,000 - 320,000 DWT)


See Vendor-Managed Inventory


Vendor Managed Inventory


Vietnam (Flag)


Volpe National Transportation Systems Center


Vessel Operating Carrier


See Vendor-Owned Inventory

Voice Activated

Systems which guide users such as warehouse personnel via voice commands.

Voice Activated or Voice Directed

Systems which guide users such as warehouse personnel via voice commands

Voice of the customer

The expressed requirements and expectations of customers relative to products or services, as documented and disseminated to the members of the providing organization.

Voice over Internet Protocol

A category of hardware and software that enables people to use the Internet as the transmission medium for telephone calls. Voice data is sent in packets using rather than by traditional POTS circuits. One advantage of VoIP is that the telephone calls over the Internet do not incur a surcharge beyond what the user is paying for Internet access, much in the same way that the user doesn’t pay for sending individual e-mails over the Internet.


Honeycomb in a unitized load caused by failure to utilize the loading area at 100 percent efficiency.


See Voice over Internet Protocol

Voluntary Interindustry Commerce Standards.

The retail industry standards body responsible for the CPFR standard, among other things.

von Thunen's Belts

A series of concentric rings around a city to identify where agricultural products would be produced according to von Thunen's theory.


Vessel of Opportunity Skimming System




The trip designation (trade route and origin/destination) identifier, usually numerically sequential.


Vapour pressure


Vessel Pays Dues


Vessel Pays Dues


Virtual Private Network


Variable Pitch Propeller


Vessel Particulars Questionnaire


Vessel Response Plan


Vapor Recovery System


Vessel Sharing Agreement.






Vessel Safety and Operations Audit


Valencia Terminal Europe. Car carrier terminal in Spain.


Vessel Traffic Information System


Vessel Traffic Management and Information Services


Vessel Traffic Management Services


Vessel Traffic System


Vanuatu (Flag)