Produce Distributors Industry Terminology

Advanced Ship Notice (ASN)

An electronic pre-alert (often EDI 856) that details a pending delivery—contents, quantities, lot codes, SSCCs, and arrival timing—so receivers can plan labor, space, and system updates.

Send the ASN by 3 p.m. so receiving can pre-allocate dock doors.; The 856 ASN didn’t match the physical count.; Our customer fines for late ASNs.

Agricultural Marketing Service (AMS)

A USDA agency that publishes Market News reports, administers USDA grade standards, and provides grading and certification services relevant to produce marketing and distribution.

Check AMS Market News for today’s FOB quotes.; We use AMS graders for third-party certs.; AMS sets the specs behind USDA grades we sell to.

APHIS (Animal and Plant Health Inspection Service)

USDA agency that safeguards agriculture from pests and diseases; oversees import/export plant health regulations and phytosanitary requirements for produce.

APHIS cleared the mango shipment after pest inspection.; You’ll need an APHIS permit for that plant material.; APHIS flagged the container for additional screening.

Backhaul

Using a truck’s return leg to carry freight, reducing deadhead miles and cost by finding cargo in the opposite direction of the original load.

We found a lettuce backhaul from Phoenix to cut empty miles.; Offer a discount if we can backhaul your pallets.; The reefer is available for a backhaul on Thursday.

Banana Ripening Room

A controlled environment (temperature, humidity, airflow, ethylene) that drives bananas through standardized ripeness stages for just-in-time delivery.

Set the ripening room to stage 3 for tomorrow’s orders.; Ethylene generators are on; monitor pulp temps hourly.; We’ll color-break these bananas before DSD.

Bill of Lading (BOL)

A transportation contract and receipt that details shipper, consignee, goods, and terms; establishes title transfer and supports claims for perishable shipments.

The BOL lists temp requirements and seal number.; Get the consignee’s signature on the BOL at delivery.; Mismatch between ASN and BOL caused a check-in delay.

Brix

A measure of soluble solids (primarily sugars) in juice, indicating sweetness and maturity; assessed with a refractometer to guide quality and shipping decisions.

These table grapes are at 17° Brix—ship them first.; We’re targeting 12° Brix on the pineapples for flavor.; QC rejected low Brix melons.

Cold Chain

The end-to-end temperature-controlled logistics process—from harvest cooling through transport, storage, and delivery—designed to maintain product quality and safety.

Any break in the cold chain can cut shelf life in half.; Add data loggers to validate the cold chain to retail.; Pre-cool to core temp before entering the cold chain.

Controlled Atmosphere (CA) Storage

Storage that modifies O2/CO2 (and sometimes N2) levels, along with temperature and humidity, to slow respiration and prolong shelf life (e.g., apples, kiwifruit).

Store apples in CA at low O2 to extend season.; CO2 spikes triggered the scrubbers in Room 4.; We rotated lots out of CA for immediate pack.

COOL (Country of Origin Labeling)

U.S. retail requirement that certain commodities, including most fresh produce, disclose the country of origin on packaging, PLUs, shelf tags, or bin signs.

Make sure bulk bins display COOL for the peppers.; The case label must support COOL at retail.; Audit found missing COOL signage on tomatoes.

Cross-Docking

Receiving inbound product and shipping it out with minimal or no storage, consolidating or sorting orders to speed flow and reduce handling and shrink.

We cross-dock lettuce to avoid warming in storage.; The load will be pallet-break cross-docked to two routes.; Cross-docking cut dwell time by 40%.

Demand Planning

Forecasting future demand by SKU and customer using history, promotions, seasonality, and market intel to set buys, capacity, and inventory targets.

Our demand plan reflects the holiday lift on berries.; Marketing’s ad drives were loaded into the forecast.; Bias in the plan caused overstock on limes.

Detention

A fee charged when a driver or equipment is held beyond the agreed free time at shipper or receiver, common with live-loaded perishable loads.

We’re paying detention after two free hours.; Detention charges spiked due to tight docks.; Negotiate detention terms in the carrier contract.

Direct Store Delivery (DSD)

A distribution model where the supplier delivers directly to retail stores, often handling merchandising and rotation, bypassing the retailer’s DC.

We run DSD on berries to control freshness.; DSD teams rotate and cull at the shelf.; The retailer wants DSD for ripened bananas.

Drayage

Short-haul trucking that moves containers between ports, rail ramps, and nearby warehouses; key for imported produce flows.

We booked drayage from the port to our DC.; Congestion raised drayage rates on imports.; Drayage carrier needs the container free by 5 p.m.

EDI (Electronic Data Interchange)

Standardized, computer-to-computer business document exchange (e.g., 850 PO, 855 PO Acknowledgment, 856 ASN, 810 Invoice, 204 Load Tender) that automates order-to-cash and logistics flows.

Send the 856 ASN and 810 invoice via EDI.; The 214 status update shows the truck is en route.; EDI chargebacks hit when our 940 shipped late.

ERP (Enterprise Resource Planning)

An integrated system for finance, purchasing, inventory, sales, and production that provides a single source of data and controls for distribution operations.

Inventory, AP, and sales orders all live in the ERP.; We integrated WMS and ERP for real-time lots.; ERP workflow blocked shipment without QC release.

Ethylene Management

Controlling ethylene exposure—segregation, scrubbers, ventilation, and targeted application—to manage ripening and prevent premature senescence or damage.

Keep ethylene-sensitive greens away from ripening rooms.; Install scrubbers in the cooler during avocado season.; We’ll apply ethylene to break color on bananas.

FEFO (First Expired, First Out)

Allocation and picking method that ships items with the earliest expiration/use-by date first, critical for perishables and date-coded goods.

Run FEFO on cut fruit to minimize waste.; FEFO overrides FIFO when dates differ.; WMS allocates by FEFO on promo orders.

FIFO (First In, First Out)

Inventory rotation method that ships the oldest received lots first; a baseline practice complemented by FEFO when date codes exist.

Rotate onions FIFO in ambient storage.; WMS pick logic defaults to FIFO if no dates.; FIFO exceptions allowed for QC holds.

Fill Rate

The percentage of ordered units or lines shipped on the first attempt, reflecting service level and supply alignment with demand.

We hit 98% case fill on the ad.; Shorts from the shipper hurt our line fill.; Improve fill rate with better demand signals.

FOB (Free On Board) – Produce Usage

In U.S. produce, FOB typically means title and risk transfer at shipping point; claims and responsibilities are interpreted under PACA definitions and Good Delivery guidelines.

Sold FOB Yuma—buyer owns risk at loading.; Claim hinges on Good Arrival under FOB terms.; FOB Destination is rare in produce.

FSMA (Food Safety Modernization Act)

U.S. law shifting food safety to prevention; key rules include Produce Safety, Preventive Controls, Sanitary Transportation, Foreign Supplier Verification, and Intentional Adulteration.

The Sanitary Transportation Rule applies to our reefers.; Supplier must comply with FSMA Produce Safety Rule.; Our plan follows FSMA Preventive Controls.

GAP (Good Agricultural Practices)

On-farm standards and audits addressing water, soil amendments, hygiene, and harvest practices to reduce contamination risks for produce.

We require Harmonized GAP from all growers.; Audit verified water testing under GAP.; GAP records support our FSVP.

GMP (Good Manufacturing Practices)

Foundational facility practices (hygiene, sanitation, pest control, maintenance) required under FDA regulations to ensure safe handling and repacking.

Our repack line follows GMP and SSOPs.; Employee hygiene training is a GMP requirement.; GMP deviations triggered a corrective action.

Good Arrival/Good Delivery

PACA Good Delivery guidelines define acceptable condition/defect tolerances at destination, considering transit time and distance; basis for quality claims.

USDA inspection shows we met Good Arrival.; Buyer claims failure of Good Delivery on lettuce.; Time-in-transit affects Good Arrival tolerances.

GS1-128 Barcode

A logistics barcode symbology that encodes GS1 Application Identifiers like GTIN, lot/batch, pack/expiry dates, and SSCC for case/pallet traceability.

PTI case labels use GS1-128 with GTIN and lot.; Scanner couldn’t read the GS1-128 on that pallet.; Add the pack date AI to the GS1-128.

GTIN (Global Trade Item Number)

A GS1 identifier for trade items at various packaging levels (e.g., GTIN-12/UPC, GTIN-14 for cases), enabling standardized identification across systems.

Assign a new GTIN for the 3-lb bag pack.; Retailer requires GTIN on all cases.; GTIN-14 drives our case-level PTI labels.

HACCP (Hazard Analysis and Critical Control Points)

A systematic approach to identify, evaluate, and control significant food safety hazards through preventive measures at critical control points.

Our HAZARD analysis set a CCP at wash water.; Monitor CCP temps on the repack line.; Deviation requires a HACCP corrective action.

Harmonized GAP

An industry-aligned GAP audit standard that harmonizes multiple schemes, easing grower compliance across buyers while maintaining rigorous criteria.

We accept Harmonized GAP Plus+ audits.; The buyer specifies Harmonized GAP equivalency.; Audit scope covers harvest crew practices.

Hydro-cooling

Rapid removal of field heat by immersing or showering produce with chilled, sanitized water to slow respiration and extend shelf life.

Hydro-cool corn within 30 minutes of harvest.; Maintain sanitizer levels in the hydro-cooler.; Hydro-cooling preps stone fruit for cold chain.

Incoterms

International commercial terms (e.g., FOB, FCA, CIF, DAP, DDP) published by ICC that define responsibilities, risk, and cost transfers in global trade.

Avocado imports ship under CIF to Long Beach.; Clarify risk transfer—FOB vs FCA in the contract.; DDP puts duties and taxes on the seller.

Inspection Certificate (USDA)

An official report by USDA inspectors documenting quality/condition at origin or destination, often used to support Good Arrival and PACA claims.

Order a USDA inspection at destination for claim.; The certificate documents 12% decay.; Use a joint inspection to resolve dispute.

Julian Date Code

A date format expressing the day of the year (e.g., 2025-032), widely used in pack/lot coding for traceability and rotation.

Lot code uses YYDDD Julian format.; Pick oldest Julian dates first under FEFO.; QC flagged misprinted Julian dates.

Key Performance Indicators (KPIs)

Quantifiable metrics (e.g., OTIF, fill rate, pick productivity, shrink, inventory turns) that track operational performance in distribution.

OTIF, shrink, and turns are our top KPIs.; KPI dashboards update hourly from WMS.; We tied bonuses to cold-chain KPIs.

Lead Time

The elapsed time from order placement to delivery, including procurement, production/repack, transit, and ripening or pre-cooling when applicable.

Banana lead time is five days including ripening.; Port congestion extended import lead times.; Shorten lead times with cross-dock programs.

Lot Code/Lot Traceability

A batch identifier tying product to harvest, pack, or production runs; enables trace-back and trace-forward for recalls, QA, and inventory control.

Scan lot codes at receiving for PTI.; Mock recall traced lots to store level.; Never mix lots on the same pallet without labels.

LTL (Less-than-Truckload)

Freight that doesn’t fill a full trailer, consolidated with other shippers; requires careful temp control and handling for perishables.

Ship berries LTL with temp-validated carriers.; Pool LTL to hit minimums and protect the cold chain.; Claims are higher risk on LTL perishable moves.

MAP (Modified Atmosphere Packaging)

Packaging that alters the internal gas mix (e.g., lower O2, higher CO2) to slow respiration and spoilage, common in cut and packaged produce.

Bagged salads use MAP to extend shelf life.; Check O2 scavenger activation in the pouch.; Seal integrity affects MAP performance.

NOP (National Organic Program)

USDA program governing organic certification and compliance, including production, handling, labeling, and recordkeeping requirements.

Supplier must be NOP-certified for organic.; Keep organic and conventional segregated per NOP.; NOP audit requires full input records.

On-Time In-Full (OTIF)

Service metric measuring whether orders arrive within the delivery window and with complete quantities as ordered.

We’re at 95% OTIF to our top retail DC.; Missed window dockings hurt OTIF.; Improve OTIF with better demand signals.

PACA Trust

Under the Perishable Agricultural Commodities Act, produce sellers have a statutory trust on a buyer’s produce-related assets to secure prompt payment, if preserved with proper notice and terms.

Invoice wording preserves our PACA Trust rights.; File a PACA Trust notice within 30 days.; Trust protection helped recover on a default.

Phytosanitary Certificate

An official document issued by the exporting country’s plant protection organization certifying freedom from quarantine pests and compliance with import requirements.

Exporter secured the phyto for the citrus load.; Customs held the shipment pending phytosanitary review.; Phyto lists treatment for fruit fly.

PLU (Price Look-Up Code)

Four- or five-digit codes on bulk produce used at retail POS; a leading 9 denotes organic in many PLU schemes (an 8-prefix for GMO is generally not used commercially).

Use PLU 4011 for conventional bananas.; Organic apples carry a 9-prefix PLU.; Verify PLUs match shelf tags.

Pre-cooling

Rapid removal of field heat (e.g., forced-air, hydro-, vacuum cooling) to target pulp temperature before cold storage or transport.

Force-air cool berries within an hour of harvest.; Vacuum cool leafy greens before loading.; Don’t load until pulp temps hit spec.

PTI (Produce Traceability Initiative)

An industry program promoting standardized case-level traceability using GS1 standards (GTIN, lot/batch, dates) and scannable labels for rapid recalls and visibility.

Apply PTI case labels with GTIN, lot, and pack date.; Voice pick code ties back to PTI data.; Customer scans PTI at receiving.

Recall Readiness/Mock Recall

Preparedness to rapidly trace and remove affected product; tested via drills that verify trace-back/forward, communications, and documentation speed.

Run a mock recall quarterly to validate traceability.; We traced 100% of lots within two hours.; Gaps found in supplier lot linkage.

Reefer (Refrigerated Trailer)

A temperature-controlled semi-trailer with an integrated refrigeration unit used to transport perishable goods under specified setpoints and airflow.

Set the reefer to 34°F continuous.; Check air chutes and return-air temps.; Reefer ran in start-stop—product warmed up.

Relative Humidity (RH)

The amount of moisture in the air relative to its maximum at a given temperature; high RH reduces dehydration and weight loss in fresh produce.

Keep leafy greens at 95% RH to limit shrink.; Low RH is dehydrating the herbs.; Humidifiers stabilized RH in Room 2.

USDA Grade Standards

Official USDA specifications defining quality grades (e.g., U.S. No. 1, Extra Fancy) by size, defects, and appearance, underpinning buying, selling, and inspection.

Contract calls for U.S. No. 1 potatoes.; QC graded apples per USDA standards.; Grades inform our spec and pricing.