50 common logistics terms
50 common logistics terms
- Supply Chain Management (SCM):
- The management of the entire process of delivering a product or service from the supplier to the customer.
- Logistics:
- The process of planning, implementing, and controlling the efficient movement and storage of goods, services, and related information from point of origin to point of consumption.
- Inventory Management:
- The supervision of non-capitalized assets (inventory) and stock items.
- Warehouse Management System (WMS):
- Software designed to manage and optimize warehouse operations, including tracking inventory levels and managing order fulfillment.
- Distribution Center:
- A facility used to store, pack, and ship goods to retailers, wholesalers, or directly to consumers.
- Transportation Management System (TMS):
- Software that aids in planning, execution, and optimization of physical movements of goods.
- Third-Party Logistics (3PL):
- Outsourcing logistics activities to a third-party provider for distribution and fulfillment services.
- Freight Forwarder:
- A company that organizes shipments for individuals or corporations to get goods from the manufacturer to a market, customer, or final point of distribution.
- Carrier:
- A company or individual that transports goods.
- Incoterms (International Commercial Terms):
- Standardized terms used in international trade to outline the responsibilities of buyers and sellers regarding the delivery of goods.
- Lead Time:
- The time between the initiation and completion of a production or logistics process.
- Just-in-Time (JIT):
- An inventory management strategy where goods are produced or acquired just in time for sale.
- Cross-Docking:
- A logistics practice where products are directly transferred from inbound to outbound transportation without being stored in a warehouse.
- Reverse Logistics:
- The process of moving goods from their final destination back to the manufacturer for returns, recycling, or disposal.
- Route Optimization:
- The process of finding the most efficient route for transportation to minimize costs and maximize delivery speed.
- Last-Mile Delivery:
- The final stage of delivery from a distribution center to the end consumer.
- Bill of Lading (BOL):
- A legal document that details the type, quantity, and destination of goods being transported.
- Freight Broker:
- An intermediary between a shipper and a carrier who facilitates the transportation of goods.
- Deadhead:
- The movement of a commercial vehicle without a load.
- Intermodal Transportation:
- The use of multiple modes of transportation (e.g., truck, train, ship) for a single shipment.
- Containerization:
- The practice of packing goods in standardized containers for efficient and secure transportation.
- Duty:
- A tax imposed by a government on goods imported or exported.
- E-commerce Fulfillment:
- The process of receiving, processing, and shipping online orders.
- Safety Stock:
- Extra inventory held to mitigate the risk of stockouts.
- Supply Chain Visibility:
- The ability to track and monitor products as they move through the supply chain.
- LTL (Less Than Truckload):
- Shipping smaller loads that don’t require a full truck.
- FTL (Full Truckload):
- Shipping enough goods to fill an entire truck.
- Pick and Pack:
- The process of selecting items from inventory and packing them for shipment.
- SKU (Stock Keeping Unit):
- A unique identifier for each distinct product and service.
- Palletization:
- The process of loading and transporting goods on pallets.
- Dunnage:
- Materials used to support and protect cargo during transportation.
- Customs Broker:
- A person or firm that helps navigate customs procedures and paperwork for importing and exporting goods.
- Hazmat:
- Hazardous materials that require special handling and transportation.
- Dedicated Fleet:
- A set of vehicles exclusively used for a particular company’s transportation needs.
- Fulfillment Center:
- A facility used to fulfill customer orders, often associated with e-commerce.
- Pick and Ship:
- The process of picking items from inventory and immediately shipping them.
- Order Cycle Time:
- The time it takes for an order to be processed from initiation to delivery.
- RFID (Radio-Frequency Identification):
- Technology used to track and identify objects using radio waves.
- Tariff:
- A tax or duty to be paid on a particular class of imports or exports.
- Drop Shipping:
- A retail fulfillment method where a store doesn’t keep the products it sells in stock.
- Freight Claim:
- A demand by a shipper or consignee for financial reimbursement due to loss or damage of goods during transportation.
- Duty Drawback:
- A refund of duties and taxes paid on imported goods that are subsequently exported.
- Inland Port:
- A location away from traditional land, air, and coastal borders equipped for the receipt and distribution of goods.
- Order Fulfillment:
- The process of completing an order and making it ready for delivery.
- VMI (Vendor Managed Inventory):
- Inventory management system where the supplier is responsible for maintaining the buyer’s inventory levels.
- EDI (Electronic Data Interchange):
- The electronic exchange of business documents between companies.
- Dwell Time:
- The amount of time a container or shipment spends sitting idle in a transportation hub.
- Yard Management System (YMS):
- Software designed to manage the movement of trailers and containers in a yard.
- Freight Rate:
- The price charged by a carrier for transportation services.
- Inbound Logistics:
- The management of goods from suppliers and vendors into a production or distribution system.