Glossary

OPERATIONAL

ANFAVEA
National Association of Motor Vehicle Manufacturers.

Average distance (Automotive Logistics Division)
Average distance in kilometers for each vehicle transported by Tegma. This indicator is obtained by dividing Tegma’s total mileage (in kilometers) divided by the number of vehicles transported.

Retail vehicle sales
Refers to the number of plate registrations in a certain period of time. This amount is provided on a monthly basis by ANFAVEA (National Association of Motor Vehicle Manufacturers) and Fenabrave (National Federation of Motor Vehicle Distributors).

Wholesale vehicle sales
Represents the number of vehicles that were actually transported from factories/ports to dealerships/ports. The number is obtained by adding the amount of vehicles produced and imported, discounting the variation in automakers’ stock in the period.

Transported vehicle market share
Percentage of the market represented by vehicles transported by Tegma. This number is obtained by dividing the number of vehicles transported by Tegma by wholesale vehicle sales.

Stork truck
Truck meant for the transportation of motor vehicles. A two-level vehicle. Between 8 and 11 vehicles can usually be transported per stork truck.

Consolidating yard
Both automakers and dealerships maintain small inventories of new vehicles. Thus, a large part of the inventory is stored in Tegma’s yards (17 being rented and 4 owned).

OEM
Acronym for Original Equipment Manufacturer. In the automotive vehicle setting, the term refers to vehicle manufacturers.

PDI
Acronym for Pre-Delivery Inspection. It is the checking and installation of internal and external visual accessories before delivery to the fleet owner, rental company, or dealership.

Cargo consolidation
In order to expedite vehicle delivery to the final destination, we perform cargo consolidation, which consists of transporting vehicles of different brands in a given route on the same truck, reducing waiting times and the average cost per vehicle.

YMS
Acronym for Yard Management System. A piece of software developed by Tegma together with a start-up that received investment from TegUp, Rabbot, which expanded the service capacity and improved synergy between the allocation of vehicles in the yards and the pick-up of vehicles for delivery.

RID
Acronym for “Relatório de Inspeção Digitalizado” (Digitized Inspection Report); this is the digitized inspection process, developed by Tegma together with Rabbot (which received an investment by TegUp). Through it, it became possible to eliminate the inspection papers that accompanied the vehicles in all stages until delivery to the customer, generating more safety and agility in the process.

CIF/FOB
CIF shipping: Acronym for Cost, Insurance, and Freight. In this type of freight, the responsibility of the shipper (freight buyer) includes the delivery of the goods at their destination.
FOB shipping: Acronym for Free On Board. In this case, the shipper’s responsibility ends with the dispatch of the goods.

ABOL
Brazilian Association of Logistic Operators

Logistic operator
A logistic operator is the legal entity able that can provide, through one or more contracts, through its own means or through third parties, transportation services (of any type), storage (in any physical condition or tax regime) and inventory management (using appropriate systems and technology) services.

Churn Rate
Rate of cancellation or abandonment recorded in the customer base.

Inbound logistics
The logistical process of replenishing the supply chain, from raw material logistics, through suppliers to the start of the production process.

Outbound logistics
The logistical process after the production line, whether it entails transportation to distribution centers (CDs) or to consumers.

Backport transportation
Product pick-up from the ship and transportation from the port to the warehouse.

In-house operation
Service performed by the logistics operator within the customer’s plant, with the purpose of improving inventory management and allowing the customer to focus more on the core business.

Milk Run
Scheduled collection from several suppliers during a single trip.

RFID
Acronym for Radio Frequency Identification; method of identification using radio signals, using devices called RFID tags.

Cross docking
A distribution system in which the product purchased by the customer is dispatched to a distribution center, where a quick redistribution is performed and the product is shipped to the final consumer.

3PL
Acronym for Third-party Logistics. Refers to the outsourced logistics provider, which performs the customer’s storage and distribution activities.

Tracking & Trace
Package tracking process, indicating the current location and where it has been.

Reverse logistics
Reverse logistics is a set of procedures and means for collecting and providing post-sale or post-consumption shipping to the business sector for reuse or for the correct disposal of waste.

SLA
Acronym for Service Level Agreement. A contract that specifies, for the contracting company, all the services to be provided by the contracted company.

PTL (Pick to light)
Known as a light-based separation system, it uses light effects and numbers to indicate the correct location of the products and the respective quantity to be collected for the operator.

Asset Light
An expression that refers to companies that are not asset-intensive in their operations.