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