Logistics Glossary

A

  • Acceptance of Goods: The process of receiving goods at a warehouse.
  • ABC Analysis: A classification method to prioritize inventory based on value.
  • Automated Warehouse: A warehouse where storage and retrieval are automated.
  • Air Freight: The transportation of goods by air.
  • Agent: A person or company authorized to act on behalf of another in logistics operations.
  • Arrival Notice: A document notifying the arrival of goods at a destination.
  • Antrepo: A bonded warehouse where goods are stored under customs control.
  • Allocation: The process of assigning resources or inventory to a specific purpose.
  • Availability: The state of being in stock or ready for use.
  • Assembly Line: A production method where products are assembled in a sequence of steps.

B

  • Bill of Lading: A legal document issued by a carrier detailing the goods being transported.
  • Bulk Cargo: Goods that are transported unpackaged in large quantities.
  • Backorder: An order for a product that is not currently in stock.
  • Barge: A flat-bottomed vessel used for transporting goods on rivers or canals.
  • Broker: An intermediary who arranges the transportation of goods.
  • Bonded Warehouse: A warehouse where goods are stored without paying customs duties.
  • Break Bulk: The process of unloading and distributing a large shipment into smaller lots.
  • Box Truck: A truck with an enclosed cargo area.
  • Barcode: A code consisting of a series of bars and spaces that can be read by a machine.
  • Booking: The reservation of space for cargo on a vessel or other mode of transport.

C

  • Cargo: Goods transported by a ship, aircraft, or other vehicle.
  • Customs Clearance: The process of getting goods through customs to enter a country.
  • Consignment: Goods sent by a consignor to a consignee.
  • Container: A large, standardized shipping box used for transporting goods.
  • Cross-Docking: A logistics practice where products are directly transferred from incoming to outgoing trucks.
  • Cold Chain: The temperature-controlled supply chain for perishable products.
  • Carrier: A person or company that transports goods.
  • Consolidation: The process of combining smaller shipments into a larger shipment.
  • Contract Logistics: Outsourcing logistics services to a third-party provider.
  • Cargo Insurance: Insurance covering loss or damage of goods during transport.

D

  • Distribution Center: A warehouse used to store and distribute products.
  • Delivery Note: A document accompanying a shipment listing the products delivered.
  • Dispatch: The process of sending goods to a destination.
  • Dock: A platform for loading and unloading cargo from vehicles.
  • Drop Shipping: A retail fulfillment method where the store doesn’t keep inventory in stock.
  • Duty: A tax imposed on imports and exports.
  • Dangerous Goods: Items that require special handling due to their hazardous nature.
  • Deadweight Tonnage (DWT): The maximum weight a ship can carry, including cargo, fuel, and crew.
  • Demurrage: A charge for delaying the release of a cargo beyond the agreed time.
  • Direct Shipment: Shipping goods directly from the supplier to the customer.

E

  • Ex Works (EXW): An Incoterm where the seller makes the goods available at their premises.
  • E-commerce: The buying and selling of goods and services online.
  • End-to-End Logistics: Managing the entire supply chain from production to delivery.
  • Electronic Data Interchange (EDI): The transfer of data between different companies using electronic means.
  • Export: The process of sending goods to another country for sale.
  • Embargo: A prohibition on trade with a specific country or the exchange of specific goods.
  • Express Delivery: Fast shipping services for urgent deliveries.
  • ETA (Estimated Time of Arrival): The projected arrival time of a shipment.
  • ETD (Estimated Time of Departure): The projected departure time of a shipment.
  • Exchange Rate: The value of one currency for the purpose of conversion to another.

F

  • Freight Forwarder: A company that arranges the transport of goods on behalf of shippers.
  • Full Truckload (FTL): A shipment that takes up an entire truck.
  • Freight: Goods transported by truck, train, ship, or plane.
  • Free On Board (FOB): An Incoterm where the seller delivers goods on board the ship.
  • FIFO (First In, First Out): An inventory management method where the oldest stock is used first.
  • Freight Bill: An invoice for the cost of transporting goods.
  • Free Trade Zone (FTZ): A designated area where goods can be imported, stored, and exported without customs duties.
  • FCL (Full Container Load): A shipment that occupies the entire container.
  • Freight Rate: The charge for transporting goods.
  • Freight Terminal: A facility where cargo is loaded and unloaded.

G

  • Goods: Products or commodities.
  • Global Positioning System (GPS): A satellite-based system used for tracking locations.
  • Gross Weight: The total weight of goods, including packaging and transport equipment.
  • General Cargo: Goods that can be transported without special handling requirements.
  • Green Logistics: Environmentally friendly practices in the logistics industry.
  • Gateway: A major entry point for goods entering a country.
  • Groupage: The consolidation of small shipments into a single larger shipment.
  • Ground Transportation: The movement of goods by road or rail.
  • Goods Receipt: The process of receiving and recording delivered goods.
  • Geofencing: A virtual geographic boundary for tracking the location of vehicles or goods.

H

  • Handling: The process of moving goods within a warehouse or between locations.
  • Hub: A central point in a logistics network where goods are consolidated and distributed.
  • Hazardous Materials (HazMat): Dangerous goods that require special handling.
  • Handover: The process of transferring responsibility for goods from one party to another.
  • High Cube Container: A container that is taller than standard containers, providing more cargo space.
  • Hybrid Logistics: Combining different modes of transport to optimize the supply chain.
  • Haulier: A company that transports goods by road.
  • Home Delivery: The delivery of goods directly to a customer’s home.
  • Heavy Lift: The transportation of extremely heavy or oversized items.
  • Holding Cost: The cost of storing inventory.

I

  • Inventory: The stock of goods held by a business.
  • Intermodal Transport: The use of multiple modes of transportation for a single shipment.
  • Incoterms (International Commercial Terms): A set of rules defining the responsibilities of buyers and sellers in international trade.
  • Inbound Logistics: The process of receiving and storing goods from suppliers.
  • Inventory Management: The process of overseeing and controlling the ordering, storage, and use of inventory.
  • Import: The process of bringing goods into a country for sale.
  • Invoice: A document detailing the products or services provided and the amount due.
  • Insurance: A contract providing financial protection against loss or damage.
  • International Shipping: The transportation of goods across international borders.
  • Item: A single unit of goods.

J

  • Just-in-Time (JIT): A production strategy that reduces inventory by delivering materials just when they are needed.
  • Joint Venture: A business arrangement where two or more parties agree to pool their resources for a specific project.
  • JIT II: An enhanced JIT system where suppliers are integrated into the production process.
  • Jumbo Transport: The transportation of large and heavy goods.
  • Junction: A point where two or more routes intersect.
  • Job Order: An order issued for the production of specific goods.
  • Jettison: The act of throwing cargo overboard to lighten a vessel in an emergency.
  • Junction Box: An enclosure that houses electrical connections.
  • Jib Crane: A type of crane with a horizontal arm used for lifting.
  • Journey Management: The planning and monitoring of vehicle trips.

K

  • Kitting: The process of assembling individual items into a single package.
  • Key Performance Indicators (KPIs): Metrics used to measure the performance of logistics operations.
  • Kilogram (kg): A unit of weight in the metric system.
  • Kilometer (km): A unit of distance in the metric system.
  • Knowledge Management: The process of capturing, distributing, and effectively using knowledge within an organization.
  • Knockdown: Products shipped in parts to be assembled at the destination.
  • Knot: A unit of speed used in maritime and air transport.
  • Kickoff Meeting: An initial meeting to discuss the details of a logistics project.
  • Kitting List: A list of components needed to assemble a kit.
  • Key Account Management: The management of important customer relationships.

L

  • Logistics: The management of the flow of goods from origin to consumption.
  • LTL (Less Than Truckload): A shipment that does not require a full truckload.
  • Lead Time: The time taken from placing an order to receiving the goods.
  • Loading: The process of placing goods onto a transport vehicle.
  • Last Mile Delivery: The final step in the delivery process, where goods are delivered to the customer.
  • Logistics Service Provider (LSP): A company that provides logistics services.
  • Lading: The act of loading cargo onto a vehicle.
  • Liability: Legal responsibility for damage or loss.
  • License Plate Number (LPN): A unique identifier for vehicles used in logistics.
  • Logistics Network: A system of interconnected logistics facilities and services.

M

  • Material Handling: The movement, protection, storage, and control of materials throughout the supply chain.
  • Multi-Modal Transport: The use of more than one mode of transportation for a single shipment.
  • Manifest: A document listing the cargo, passengers, and crew on a vessel or vehicle.
  • Minimum Order Quantity (MOQ): The smallest amount of a product that a supplier is willing to sell.
  • Milestone: A significant event or point in a logistics project.
  • Marine Insurance: Insurance covering loss or damage to ships and cargo.
  • Market Demand: The total amount of a product that customers are willing and able to purchase.
  • Mode of Transport: The method used to transport goods, such as air, sea, rail, or road.
  • Margin: The difference between the cost and selling price of a product.
  • Monitoring: The process of tracking the status and progress of logistics operations.

N

  • Network Optimization: The process of improving the efficiency of a logistics network.
  • Negotiation: The process of reaching an agreement between parties.
  • Non-Tariff Barrier: A restriction on international trade that does not involve tariffs.
  • NVOCC (Non-Vessel Operating Common Carrier): A company that provides ocean shipping services without owning vessels.
  • Nominal Weight: The standard or average weight of a product.
  • Net Weight: The weight of goods excluding packaging.
  • Notice of Arrival: A document notifying the consignee of the arrival of a shipment.
  • Nesting: The practice of placing items inside each other to save space.
  • Navigation: The process of planning and controlling the movement of a vehicle.
  • Niche Market: A specialized segment of the market for a particular product.

O

  • Order: A request for the supply of goods or services.
  • Outbound Logistics: The process of storing, transporting, and distributing goods to customers.
  • Overhead: The ongoing administrative costs of operating a business.
  • Oversize Cargo: Goods that exceed the standard dimensions for transport.
  • Outsourcing: The practice of contracting out business processes to third-party providers.
  • On-Time Delivery (OTD): The percentage of orders delivered on or before the scheduled date.
  • Overpack: Additional packaging used to protect goods during transport.
  • Order Fulfillment: The complete process of receiving, processing, and delivering an order.
  • Optimization: The process of making logistics processes as efficient as possible.
  • Automatic Identification: The automatic identification and tracking of goods or shipments.

P

  • Partial Load: A load that does not fill an entire transportation unit.
  • Pallet: A flat platform used for storing and transporting goods.
  • Packing: The process of packaging products for transport or storage.
  • Pilot: A person who navigates a ship or aircraft.
  • Partial Transportation: The transport of loads that do not fill an entire transportation unit.
  • Postal Service: A service that transports and delivers letters, documents, and small packages.
  • Planning: The process of organizing and scheduling logistics operations.
  • Packaging Cost: The cost of packaging products for transport or storage.
  • Project Cargo: Large-scale transportation projects requiring special equipment and planning.
  • Positioning: The placement of products at a specific location and time.

R

  • Shelf Management: The process of organizing and arranging products on shelves in stores or warehouses.
  • Booking: The arrangement of transportation or warehouse services in advance.
  • Cycle Stock: Inventory that is regularly consumed and replenished based on demand.
  • Routing: The process of planning the movement of vehicles along the most efficient routes.
  • Trailer: A load-carrying unit pulled by a tractor vehicle.
  • Dock: A platform where ships are loaded and unloaded.
  • Risk Management: The process of identifying and managing potential risks in logistics processes.
  • Escort: A vehicle or person accompanying a transportation vehicle for security or special requirements.
  • Reserved Stock: Inventory set aside for a specific customer or purpose.
  • Tugboat: A small vessel that guides ships in and out of ports.

S

  • Order: A request for the supply of goods or services.
  • Inventory: The stock of goods held by a business.
  • Dispatch: The process of sending goods to a destination.
  • Insurance: A contract providing financial protection against loss or damage.
  • Stock Control: The process of managing and tracking inventory.
  • Shipment: The process of transporting goods from one place to another.
  • Delivery Note: A document listing the details of the delivered goods.
  • Inventory Turnover: The rate at which inventory is sold and replaced within a specific period.
  • Fixed Costs: Expenses that do not change with the level of production or distribution.
  • Insurance Policy: A document outlining the terms and conditions of an insurance agreement.

T

  • Transport: The movement of goods or people from one place to another.
  • Supply Chain: The entire process of producing and delivering a product, from raw materials to the final consumer.
  • Transit Time: The time it takes for a shipment to travel from the origin to the destination.
  • Wholesaler: A person or company that sells goods in large quantities to retailers.
  • Carrier: A person or company that transports goods.
  • Transport Document: A document that details the goods being transported and the terms of the transport.
  • TIR Carnet: A customs document used in international road transport.
  • Supplier: A person or company that provides goods or services.
  • Portable Container: A container that can be easily transported and reused.
  • Procurement Management: The process of acquiring goods, services, or products.

U

  • Production: The process of manufacturing goods from raw materials.
  • International Transport: The transportation of goods across international borders.
  • Ministry of Transport: A government department responsible for transportation policies and regulations.
  • Product Return: The process of returning a purchased product to the seller.
  • Compliance: Adherence to laws, regulations, and standards.
  • Product Management: The process of developing, marketing, and distributing products.
  • Third-Party Logistics (3PL): A company that provides outsourced logistics services.
  • International Trade: The exchange of goods and services between countries.
  • Transport Networks: Systems of interconnected routes for different modes of transport.
  • Production Planning: The process of organizing and scheduling production activities.

V

  • Destination: The place where goods are delivered.
  • Wagon: A vehicle used for transporting goods by rail.
  • Tax: A financial charge imposed by a government on goods, services, or income.
  • Trolley: A small vehicle used for transporting goods on rails.
  • Volumetric Weight: The weight of cargo calculated based on its volume.
  • Database: A system for storing and managing data.
  • Crane: A machine used for lifting and moving heavy objects.
  • Volumetric Measurement: The process of measuring the volume of cargo.
  • Shift: A period during which workers perform their duties.
  • Data Analysis: The process of examining data to extract meaningful insights.

Y

  • Freight: Goods transported by a carrier.
  • Loading: The process of placing goods onto a transport vehicle.
  • Loading Point: The location where goods are loaded onto a vehicle.
  • Management: The process of organizing and controlling logistics operations.
  • Load Capacity: The maximum amount of cargo that a vehicle can carry.
  • Loading Report: A document prepared during the loading process.
  • Spare Parts: Replacement parts for vehicles or machinery.
  • Local Distribution: The process of delivering products within a local market.
  • Management Information System (MIS): A system used for tracking and reporting logistics processes.
  • Loading Area: The area where goods are loaded or unloaded.

Z

  • Chain Management: The process of managing supply chain activities.
  • Schedule: A plan for logistics operations, including timing and sequencing.
  • Custody: The responsibility for the care and control of goods.
  • Consigned Goods: Goods sent to an agent for sale.
  • Assignment: The transfer of responsibility for goods to a specific person or organization.
  • Time Management: The process of managing time efficiently in logistics operations.
  • Damage Insurance: Insurance coverage for damage to goods during transport.
  • Custody Record: A record documenting who has received and transferred custody of goods.
  • On-Time Delivery: The delivery of goods within the agreed timeframe.
  • Custody Document: A document proving the transfer of responsibility for goods

 

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