A reference glossary of sourcing, manufacturing and logistics terms used across the LYBAM GLOBAL site - each with a full definition, comparison table where relevant, and links to related terms. Browse by process area or by where each term fits in a typical sourcing journey.
Browse by Category
Terms grouped by process area.
Branding
Private Label
Private label means a product is manufactured specifically for one brand, based on that brand's own requirements - the buyer controls features, quality level and packaging, and the product is not sold to competing brands under a different label. It offers real differentiation, often built on an ODM base design.
White Label
White label means a generic product, owned and designed by the manufacturer, is sold to multiple different brands or retailers - each applying only their own logo and packaging, without changing the underlying product itself. It is typically faster and cheaper than private label, at the cost of less real differentiation.
Commercial Terms
MOQ
MOQ (Minimum Order Quantity) is the smallest quantity of a product a factory or supplier will accept for a single order. It varies significantly by product, factory, complexity and customization level, so there is no universal figure - confirming MOQ early in a sourcing conversation directly affects your unit economics and cash flow.
Logistics
CIF
CIF (Cost, Insurance and Freight) is an Incoterm in which the seller arranges and pays for international freight and insurance up to the destination port, in addition to the goods themselves. The buyer takes over from the destination port onward - handling import clearance, duties and final delivery to their own location.
EXW
EXW (Ex Works) is an Incoterm in which the seller's only obligation is to make goods available at their own premises. From that point, the buyer takes on all responsibility - loading, origin-side transport, export clearance, international freight, import clearance and final delivery - the maximum buyer responsibility among common Incoterms.
FOB
FOB (Free On Board) is an Incoterm in which the seller handles goods, origin-side transport and export clearance up to the port of origin. Once goods are loaded onto the shipping vessel, the buyer takes over - arranging international freight, insurance, import clearance and final delivery to the destination.
Manufacturing
ODM
ODM (Original Design Manufacturing) means a factory already has its own base product design, which you customize with your own branding, colors, packaging or minor features rather than developing a product from scratch. This typically means a faster, lower-cost path to a branded product than a fully custom OEM project.
OEM
OEM (Original Equipment Manufacturing) means a factory manufactures a product built entirely to your own design and specifications, rather than offering its own base design for you to customize. You own the design and control every feature; the factory executes production, typically requiring custom tooling once the design is finalized.
Tooling
Tooling refers to the custom molds, dies or fixtures a factory needs to manufacture a specific product design - most commonly for injection-molded plastic parts or machined components. It is typically a one-time investment, separate from the recurring per-unit production price, and usually sits between a finished prototype and full production.
Quality
QC
QC (Quality Control) is the process of checking that manufactured goods actually match what was agreed - materials, function, appearance and consistency across a production run. The most critical checkpoint is pre-shipment inspection, which catches problems before goods leave the factory rather than after they've already arrived at their destination.
Browse by Customer Journey Stage
Terms grouped by where they typically come up in a sourcing project, from initial decisions through to logistics and assurance.
Assurance
QC
QC (Quality Control) is the process of checking that manufactured goods actually match what was agreed - materials, function, appearance and consistency across a production run. The most critical checkpoint is pre-shipment inspection, which catches problems before goods leave the factory rather than after they've already arrived at their destination.
Decision
MOQ
MOQ (Minimum Order Quantity) is the smallest quantity of a product a factory or supplier will accept for a single order. It varies significantly by product, factory, complexity and customization level, so there is no universal figure - confirming MOQ early in a sourcing conversation directly affects your unit economics and cash flow.
ODM
ODM (Original Design Manufacturing) means a factory already has its own base product design, which you customize with your own branding, colors, packaging or minor features rather than developing a product from scratch. This typically means a faster, lower-cost path to a branded product than a fully custom OEM project.
OEM
OEM (Original Equipment Manufacturing) means a factory manufactures a product built entirely to your own design and specifications, rather than offering its own base design for you to customize. You own the design and control every feature; the factory executes production, typically requiring custom tooling once the design is finalized.
Development
Private Label
Private label means a product is manufactured specifically for one brand, based on that brand's own requirements - the buyer controls features, quality level and packaging, and the product is not sold to competing brands under a different label. It offers real differentiation, often built on an ODM base design.
Tooling
Tooling refers to the custom molds, dies or fixtures a factory needs to manufacture a specific product design - most commonly for injection-molded plastic parts or machined components. It is typically a one-time investment, separate from the recurring per-unit production price, and usually sits between a finished prototype and full production.
White Label
White label means a generic product, owned and designed by the manufacturer, is sold to multiple different brands or retailers - each applying only their own logo and packaging, without changing the underlying product itself. It is typically faster and cheaper than private label, at the cost of less real differentiation.
Logistics
CIF
CIF (Cost, Insurance and Freight) is an Incoterm in which the seller arranges and pays for international freight and insurance up to the destination port, in addition to the goods themselves. The buyer takes over from the destination port onward - handling import clearance, duties and final delivery to their own location.
EXW
EXW (Ex Works) is an Incoterm in which the seller's only obligation is to make goods available at their own premises. From that point, the buyer takes on all responsibility - loading, origin-side transport, export clearance, international freight, import clearance and final delivery - the maximum buyer responsibility among common Incoterms.
FOB
FOB (Free On Board) is an Incoterm in which the seller handles goods, origin-side transport and export clearance up to the port of origin. Once goods are loaded onto the shipping vessel, the buyer takes over - arranging international freight, insurance, import clearance and final delivery to the destination.