Food distribution glossary: 48 terms wholesale food distributors use, defined
Short answer: This food distribution glossary defines the terms wholesale food distributors use every day, from catch weight and FEFO to FSMA 204 key data elements and critical tracking events, landed cost and route density. Each term has its own anchor, so you can link straight to a definition, and links to the guide that covers it in depth.
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AI order entry
Software that reads an order a customer sent, matches the customer and items, applies pricing and presents a sales order for a person to approve. Foodline AI's Order Agent reads uploaded order sheets, PDFs and photos today; email, text and voicemail capture are coming soon.
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.
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.
Bid pricing
Prices quoted for a set period, often to an institutional customer, for a defined list of items.
Broadline distributor
A foodservice distributor that carries a wide range of categories (proteins, produce, dairy, dry goods, frozen and supplies) so a restaurant can buy most of what it needs from one supplier.
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 ordered and stocked by the case but priced and invoiced by the pound.
Cold chain
Keeping frozen and chilled product within its temperature range from receiving through storage, picking, loading and delivery.
Contract pricing
A price agreed with one customer or group for a set period, which overrides the standard price list on their orders.
Cost-plus pricing
A price set as the item's cost plus a fixed amount or percentage, so it moves when cost moves.
Credit memo
A document that reduces what a customer owes, issued for shorts, refused items, damaged product or pricing errors.
Critical tracking event (CTE)
A point in the supply chain where FSMA 204 records must be kept: harvesting, cooling, initial packing, first land-based receiving, shipping, receiving and transformation. For most distributors that means receiving and shipping.
Cycle count
Counting part of the inventory on a rolling schedule instead of shutting down for one full physical count.
Delivery window
The time range in which a customer can receive a delivery, such as a restaurant's 6 to 10 a.m. back-door window.
Drop size
The value or number of cases delivered at one stop. Small drops on long routes are the most common source of unprofitable delivery.
DSO (days sales outstanding)
The average number of days it takes to collect payment after a sale. Accounts receivable divided by credit sales, times the days in the period.
EDI 850 / EDI 810
Standard electronic documents for a purchase order (850) and an invoice (810), used mostly with larger customers and suppliers.
FEFO
First expired, first out. The lot with the earliest expiry date is picked first. The standard for perishable food.
FIFO
First in, first out. The lot received earliest is picked first. Used where expiry dates are far off or absent.
Fill rate
The share of ordered units actually shipped. Used both for your own service to customers and to score vendors.
Food distribution ERP
Enterprise resource planning software built for food distributors, handling catch weight, lots, FSMA 204 records, routes and accounting in one system.
Food Traceability List (FTL)
The list of foods FDA has designated as needing FSMA 204 records, including leafy greens, fresh-cut fruits and vegetables, shell eggs, finfish, crustaceans, molluscan shellfish and soft cheeses.
FSMA 204 (Food Traceability Rule)
FDA's rule under section 204 of the Food Safety Modernization Act requiring additional traceability records for foods on the Food Traceability List. FDA won't enforce FSMA 204 before July 20, 2028.
Gross margin
Selling price minus cost, as a percentage of the selling price. A $10 item that cost $8 has a 20% gross margin.
Key data element (KDE)
A piece of information FSMA 204 requires you to record at a critical tracking event, such as the traceability lot code, quantity and unit, product description, location and date.
Landed cost
The full cost of getting an item into your warehouse: the purchase price plus freight, duty, brokerage and other fees. Margins calculated on purchase price alone look better than they are.
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.
Lot traceability
The ability to trace a lot backward to its supplier and forward to every customer who received it, using the lot codes recorded at receiving, picking and shipping.
Markup
Selling price minus cost, as a percentage of the cost. A $10 item that cost $8 has a 25% markup, which is a 20% margin.
Mispick
A picking error: the wrong item, the wrong quantity or the wrong lot sent to a customer.
Nominal weight
The standard or expected weight of a catch-weight case, used to estimate the price when the order is placed, before the actual weight is known.
Order cutoff
The latest time an order can be placed for the next delivery. Orders after the cutoff move to the following run or need approval.
Order guide
A customer's list of the items they usually buy, in the units they buy them, used to reorder quickly in a store or on a sales call.
Order intake
Everything between a customer deciding what to buy and a clean sales order reaching the warehouse: the online store, the order desk, and order sheets, PDFs and photos customers send.
Proof of delivery (POD)
The record that a delivery was made, usually captured on the driver's device at the stop and attached to the order and invoice.
Putaway
Moving received product from the dock to its storage location.
Recall drill
A practice run that traces a lot to every customer who received it and back to its supplier, to prove it can be done quickly when a real recall comes.
Route density
How many stops, cases or dollars a route delivers per mile or per hour. Higher density spreads the cost of the truck and driver over more revenue.
Short
An ordered item that can't be filled, in full or in part. Customers should see what was shorted and what was offered instead.
Specialty food distributor
A distributor focused on higher-value or niche categories such as cheese, charcuterie, imported and artisan goods, often from many small vendors.
Substitution
A different item sent in place of one that is short, ideally approved by the customer before the truck leaves.
Traceability lot code (TLC)
The code that identifies a lot of food under FSMA 204. It is assigned at initial packing, first land-based receiving or transformation, and distributors pass it on unchanged.
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.
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.
Vendor scorecard
A running score for each supplier on fill rate, on-time delivery, price stability and compliance, used when choosing who to buy from.
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Frequently asked questions
What is catch weight?
The actual measured weight of a variable-weight item. It is ordered and stocked by the case but priced and invoiced by the pound.
What is the difference between a KDE and a CTE?
A critical tracking event (CTE) is a point where FSMA 204 records are required, such as receiving or shipping. Key data elements (KDEs) are the facts you record at that event, such as the traceability lot code, quantity and date.
What is the difference between FEFO and FIFO?
FEFO picks the lot that expires first; FIFO picks the lot received first. FEFO is the standard for perishables.
What is landed cost?
The purchase price plus freight, duty, brokerage and other fees to get the item into your warehouse.
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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