Glossary
Food distribution glossary: the terms distributors use, defined
Catch weightOrdered by the case, billed by the pound
FEFOFirst expired, first out
KDE / CTEFSMA 204 records at receiving and shipping
Order guideEach account's usual items and prices
Drop sizeValue of one delivery to one customer
Every term is defined from the distributor's side.
Short answer: This glossary defines the terms food and beverage distributors use every day, from catch weight and FEFO to FSMA 204 key data elements, order guides and credit memos. Each definition is written from the distributor's side, and links to the guide that covers the topic in depth.
Inventory and the warehouse
| Term | Definition |
|---|---|
| Catch weight | The actual measured weight of a variable-weight item, such as a case of ribeye or a box of fish. The item is stocked and ordered by the case but priced and invoiced by the pound. See catch weight software. |
| FEFO | First expired, first out. The lot with the earliest expiry date is picked first. The standard for perishables. |
| FIFO | First in, first out. The lot received earliest is picked first. Used where expiry dates are far off or absent. |
| Lot | A quantity of product received or produced together, sharing one lot code, expiry date and source. Lots are how a distributor traces product and runs a recall. |
| Lot genealogy | The full history of a lot: where it came from, where it was stored, what it was repacked into and which customers received it. |
| Recall drill | A practice run that traces a lot forward to every customer who received it and backward to its supplier, to prove it can be done in time. |
| Cycle count | Counting part of the inventory on a rolling schedule instead of shutting down for one full physical count. |
| Putaway | Moving received product from the dock to its storage location. |
| Mispick | A picking error: the wrong item, the wrong quantity or the wrong lot sent to a customer. |
| Cold chain | Keeping temperature-controlled product within its required range from receiving through delivery, with a record of any excursion. |
| Unit of measure (UOM) | The unit an item is counted, sold or priced in: each, case, pound, box or pallet. Catch-weight items carry two. |
Traceability and FSMA 204
| Term | Definition |
|---|---|
| FSMA 204 | FDA's Food Traceability Rule. Businesses that hold, receive, ship or transform foods on FDA's Food Traceability List keep key data elements for each critical tracking event and give FDA the records within 24 hours of a request. The compliance date is July 20, 2028. See FSMA 204 compliance software. |
| Food Traceability List (FTL) | FDA's list of foods covered by FSMA 204, including fresh leafy greens, tomatoes, peppers, cucumbers, herbs, melons, fresh-cut produce, soft cheeses, shell eggs, nut butters, ready-to-eat deli salads, finfish, crustaceans and molluscan shellfish. |
| Critical tracking event (CTE) | A step where FSMA 204 records are required. For most distributors: receiving and shipping, plus transformation if they repack, cut or relabel. |
| Key data element (KDE) | A fact recorded at a critical tracking event, such as the traceability lot code, quantity and unit of measure, product description, location, date and reference document. |
| Traceability lot code (TLC) | The lot identifier that travels with a food on the Food Traceability List and ties its key data elements together. |
| Traceability plan | The written description FSMA 204 requires of how a business keeps its traceability records and assigns lot codes, with a contact for questions. |
Orders, pricing and customers
| Term | Definition |
|---|---|
| Order guide | A customer's list of the items they usually buy, with their pack sizes and prices, used to reorder quickly. On the distributor's side, it is also how reps and the online store show each account its own catalog. |
| Cutoff | The latest time an order can be placed for the next delivery. |
| Contract pricing | Prices agreed with a specific customer or group, which override list prices for that account. |
| Price level | A tier of prices assigned to a group of customers. |
| Bid pricing | Prices quoted for a set period, often to an institutional customer, for a defined list of items. |
| Cost-plus pricing | A price set as the item's cost plus a fixed amount or percentage, so it moves when cost moves. |
| Substitution | A different item sent in place of one that is short, ideally approved by the customer before the truck leaves. |
| Short | An ordered item that can't be filled, in full or in part. |
| Credit memo | A document that reduces what a customer owes, issued for shorts, mispicks, damaged product or returns. |
| AI order entry | Software that reads orders sent by email, text message or phone, matches the customer and items, applies pricing and presents a sales order for approval. See AI order entry for food distributors. |
| B2B ecommerce | An online ordering store for a distributor's restaurant, institutional and retail customers, showing each account its own order guide, prices, availability and cutoffs. See ecommerce + ERP. |
| EDI 850 / EDI 810 | Standard electronic documents for a purchase order (850) and an invoice (810), used mostly with larger customers and suppliers. |
Delivery and the business
| Term | Definition |
|---|---|
| Broadline distributor | A distributor that carries a full range of categories, from produce and protein to dry goods and supplies. |
| Specialty distributor | A distributor focused on one category or customer type, such as produce, seafood, meat or imported specialty foods. |
| Drop size | The value or volume of one delivery to one customer. Larger drops spread delivery cost over more revenue. |
| Will-call | An order the customer picks up at the warehouse instead of receiving a delivery. |
| Proof of delivery (POD) | The record that a delivery was made, usually a signature, photo or timestamp captured on the driver's device. See route planning software. |
| Manifest | The list of stops, orders and products on one truck's route. |
| Food distribution ERP | Business software that runs a food distributor's purchasing, inventory, warehouse, delivery, sales and finance on one record, with food-specific functions such as catch weight, lots, FEFO, order guides and cold-chain records. See platform. |
| AI-native ERP | An ERP built with AI routines as part of the system, drafting work such as order entry, price updates and collections for a person to approve, rather than adding AI later as a separate tool. See autonomy. |
Frequently asked questions
What is catch weight?
The actual measured weight of a variable-weight item, such as a case of ribeye. The item is stocked and ordered by the case but priced and invoiced by the pound.
What is the difference between FEFO and FIFO?
FEFO (first expired, first out) picks the lot with the earliest expiry date first, which is the standard for perishables. FIFO (first in, first out) picks the lot received earliest first.
What are KDEs and CTEs in FSMA 204?
Critical tracking events (CTEs) are the steps where FSMA 204 records are required, such as receiving and shipping. Key data elements (KDEs) are the facts recorded at each event, such as the traceability lot code, quantity, product description, location, date and reference document.
What is an order guide?
A customer's list of the items they usually buy, with their pack sizes and prices, used to reorder quickly. Distributors use it to show each account its own catalog in the online store and to reps.
What is drop size?
The value or volume of one delivery to one customer. Larger drops spread the cost of a delivery over more revenue.
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