Glossary of Terms
Here you will find an A-Z of commonly used logistics and freight forwarding terms
Simply click on the letter most relevant to your search term below.
Simply click on the letter most relevant to your search term below.
Glossary of Terms
A
Added-value processes/services
Complementary processes or services applied to a product or service to increase its value to internal or external customers
Aftermarket
Activities completed after the sales process, such as the replacement and servicing of parts; particularly prevalent in the automotive industry
Airfreight
The transport of goods by air
Complementary processes or services applied to a product or service to increase its value to internal or external customers
Aftermarket
Activities completed after the sales process, such as the replacement and servicing of parts; particularly prevalent in the automotive industry
Airfreight
The transport of goods by air
B
Backstage areas
Behind-the-scenes areas of stores and shops where stock is held and logistics support and services are managed
Bonded warehouse
A facility or consolidation centre that is authorised by customs to store goods. The payment of duties and taxes are only payable once the goods are removed
Box car
A closed freight car
Bulk container
A large container designed to carry bulk cargo
Behind-the-scenes areas of stores and shops where stock is held and logistics support and services are managed
Bonded warehouse
A facility or consolidation centre that is authorised by customs to store goods. The payment of duties and taxes are only payable once the goods are removed
Box car
A closed freight car
Bulk container
A large container designed to carry bulk cargo
C
Campus
A site where multiple distribution centres share resources such as employees and transport to maximise time and cost efficiencies. See also Distribution Centre; multi-user
Consignment
One or more items that a carrier has accepted for shipment at a given time
Consolidation
The combination of two or more consignments to create a more economical freight solution
Consolidation Centre
A warehouse in which goods are packaged into larger units for onward distribution
Container
A sealed, reusable metal box for the shipping of goods by sea and rail
Contract logistics
The process of outsourcing product flow management, storage and related information transfer services, usually under long-term contract, with the objective of increasing efficiency and control
Control Tower
Bespoke packages of information services used to manage and control supply chain activities on behalf of customers and suppliers. Also known as Logistics Control Tower (LCT)
Cross-dock/docking
The direct flow of goods from receipt to shipping, bypassing storage. Used to reduce costs and lead-times for fast-moving and perishable goods
Customs broking
The handling of customs formalities around the import and export of goods on behalf of importers
Cut, make and trim (CMT)
Transport and customs management of fashion materials and products following a procedure that avoids customs payment
A site where multiple distribution centres share resources such as employees and transport to maximise time and cost efficiencies. See also Distribution Centre; multi-user
Consignment
One or more items that a carrier has accepted for shipment at a given time
Consolidation
The combination of two or more consignments to create a more economical freight solution
Consolidation Centre
A warehouse in which goods are packaged into larger units for onward distribution
Container
A sealed, reusable metal box for the shipping of goods by sea and rail
Contract logistics
The process of outsourcing product flow management, storage and related information transfer services, usually under long-term contract, with the objective of increasing efficiency and control
Control Tower
Bespoke packages of information services used to manage and control supply chain activities on behalf of customers and suppliers. Also known as Logistics Control Tower (LCT)
Cross-dock/docking
The direct flow of goods from receipt to shipping, bypassing storage. Used to reduce costs and lead-times for fast-moving and perishable goods
Customs broking
The handling of customs formalities around the import and export of goods on behalf of importers
Cut, make and trim (CMT)
Transport and customs management of fashion materials and products following a procedure that avoids customs payment
D
Demand chain
The reverse of the supply chain, when the processes employed switch from push to . The demand chain is driven by the consumers rather than manufacturers of goods. See also pull replenishment
Dispatch
The release of a container to a carrier or amounts paid to a carrier to charter the transport of goods
Distribution
The process of storing and transporting finished goods between the end of the production line and the final customer
Distribution Centre (DC)
A facility that accepts inbound consignments of raw materials, components or finished goods, divides and then recombines them into outbound shipments. Many DCs also contain specialised handling/storage equipment and IT systems and serve as warehouses
Drop shipment
The direct shipment of goods from a manufacturer to a dealer or consumer, bypassing the wholesaler
Domestic Distribution Networks (DDN)
Warehousing and distribution to stores. See also Regional distribution networks (RDN)
The reverse of the supply chain, when the processes employed switch from push to . The demand chain is driven by the consumers rather than manufacturers of goods. See also pull replenishment
Dispatch
The release of a container to a carrier or amounts paid to a carrier to charter the transport of goods
Distribution
The process of storing and transporting finished goods between the end of the production line and the final customer
Distribution Centre (DC)
A facility that accepts inbound consignments of raw materials, components or finished goods, divides and then recombines them into outbound shipments. Many DCs also contain specialised handling/storage equipment and IT systems and serve as warehouses
Drop shipment
The direct shipment of goods from a manufacturer to a dealer or consumer, bypassing the wholesaler
Domestic Distribution Networks (DDN)
Warehousing and distribution to stores. See also Regional distribution networks (RDN)
E
Electronic data interchange (EDI)
Computer-to-computer transmission of information between two companies, including such documents as purchase orders and invoices
End-to-end
The complete cycle of logistics activity. End-to-end supply chain management comprises the sourcing and transport of goods from point of origin to final customer destination
End-of-life
Goods that have reached the end of their shelf life; can include obsolete items or items that cannot be repaired
European article number (EAN)
Coding to support Efficient Consumer Response (ECR) speeding up goods flow and reducing costs in the FMCG sector.
Computer-to-computer transmission of information between two companies, including such documents as purchase orders and invoices
End-to-end
The complete cycle of logistics activity. End-to-end supply chain management comprises the sourcing and transport of goods from point of origin to final customer destination
End-of-life
Goods that have reached the end of their shelf life; can include obsolete items or items that cannot be repaired
European article number (EAN)
Coding to support Efficient Consumer Response (ECR) speeding up goods flow and reducing costs in the FMCG sector.
F
Fourth-party logistics provider (4PL)
A supplier of supply chain co-ordination and management services that generally does not own or operate the underlying assets and resources. When acting as a lead logistics provider (LLP), it may also co-ordinate and integrate the services of others with complementary or supporting capabilities
Free Trade Zone (FTZ)
A commercial or industrial area near a port of entry where merchandise and raw material imports are not subject to customs charges or duties
Freight forwarder
A company involved in the collection, consolidation, shipping and distribution of goods from overseas countries. Typically, freight forwarders clear freight through customs, prepare documents and arrange shipping, warehousing and delivery
Freight management
The management of third-party carriers to ensure the swift, safe and cost-efficient delivery of shipments, often involving the integration of a range of services
Freight Transport Association (FTA)
UK trade association serving the transport interests of companies moving goods by air, rail, road and sea
Full-truck-load (FTL)
Where the goods being shipped occupy a complete truck
A supplier of supply chain co-ordination and management services that generally does not own or operate the underlying assets and resources. When acting as a lead logistics provider (LLP), it may also co-ordinate and integrate the services of others with complementary or supporting capabilities
Free Trade Zone (FTZ)
A commercial or industrial area near a port of entry where merchandise and raw material imports are not subject to customs charges or duties
Freight forwarder
A company involved in the collection, consolidation, shipping and distribution of goods from overseas countries. Typically, freight forwarders clear freight through customs, prepare documents and arrange shipping, warehousing and delivery
Freight management
The management of third-party carriers to ensure the swift, safe and cost-efficient delivery of shipments, often involving the integration of a range of services
Freight Transport Association (FTA)
UK trade association serving the transport interests of companies moving goods by air, rail, road and sea
Full-truck-load (FTL)
Where the goods being shipped occupy a complete truck
G
Garments on hangers (GOH)
Standard containers fitted with bars and ropes to keep the clothes neatly so they can be put straight onto shop shelves
Globalisation
The internationalisation of trade, by which domestic economies become inter-dependent
Standard containers fitted with bars and ropes to keep the clothes neatly so they can be put straight onto shop shelves
Globalisation
The internationalisation of trade, by which domestic economies become inter-dependent
H
Home delivery
The transportation of goods to customers locations of choice (including workplaces) can also refer to order fulfilment. Most e-commerce sales involve home delivery
The transportation of goods to customers locations of choice (including workplaces) can also refer to order fulfilment. Most e-commerce sales involve home delivery
I
International Air Transport Association (IATA)
Trade association serving airlines, governments, passengers, shippers and travel agents
Inbound logistics
The movement of raw materials and components from suppliers/vendors to production processes and storage facilities. International inbound logistics is the management of the international inbound supply chain on behalf of retailers
Inbound-to-manufacturing
The sourcing and transport of goods from their point of origin/manufacture through to the manufacturing facility
In-store logistics
The provision of pre-retailing services within shops, often in backstage areas. Services can include stock replenishment, storage and packaging
Integrated logistics/supply chain
The management of multiple supply chain components as a single entity on a global or regional scale. This practice can result in a more efficient supply chain and lower costs
Intermodal
The co-ordinated movement of freight using different methods of transport which is often a combination of truck and rail
International inbound logistics/supply chain: See inbound logistics
Inventory
Stocks of raw materials, components, work in progress, finished goods and other supplies
Trade association serving airlines, governments, passengers, shippers and travel agents
Inbound logistics
The movement of raw materials and components from suppliers/vendors to production processes and storage facilities. International inbound logistics is the management of the international inbound supply chain on behalf of retailers
Inbound-to-manufacturing
The sourcing and transport of goods from their point of origin/manufacture through to the manufacturing facility
In-store logistics
The provision of pre-retailing services within shops, often in backstage areas. Services can include stock replenishment, storage and packaging
Integrated logistics/supply chain
The management of multiple supply chain components as a single entity on a global or regional scale. This practice can result in a more efficient supply chain and lower costs
Intermodal
The co-ordinated movement of freight using different methods of transport which is often a combination of truck and rail
International inbound logistics/supply chain: See inbound logistics
Inventory
Stocks of raw materials, components, work in progress, finished goods and other supplies
J
Just-in-time
Activities, including deliveries, completed at the right time in order to meet production and client schedules. These techniques help companies improve their return on investment by reducing in-process inventory and its associated cost. Also known as Just-in-sequence
Activities, including deliveries, completed at the right time in order to meet production and client schedules. These techniques help companies improve their return on investment by reducing in-process inventory and its associated cost. Also known as Just-in-sequence
K
Kerbside
Delivery to and/or collection from the roadside
Kitting
The assembly of components to make a single consumer item
Delivery to and/or collection from the roadside
Kitting
The assembly of components to make a single consumer item
L
Last 50 yards/final mile
The location for the transfer of goods from the rear of the delivery vehicle to the store shelf or home
Lead logistics provider/partner (LLP)
See 4PL
Less-than-truckload (LTL)
A shipment that does not fill a standard truck
Linehaul
Overland transportation, by road or by rail, and applying particularly to transportation from origin depot to port of shipment or from port of arrival to destination depot
Logistics
The process of planning, implementing and controlling the efficient and cost-effective flow and storage of raw materials, in-process stocks, finished goods and related information from the point of origin to the point of consumption for customers. Put more simply, it is the science and art of ensuring that the right products reach the right place in the right quantity at the right time in order to satisfy customer demand. Logistics encompasses warehousing, transport, added-value/pre-retailing services and IT solutions and covers inbound, outbound, internal, international and reverse product flows
Logistics re-engineering
The study and re-design of logistics processes to achieve a significant improvement in performance
Logistics service provider (LSP)
An organisation that offers 3PL or 4PL services
Logistics Control Tower (LCT)
See Control Tower
Logistics outsourcing
See outsourcing
The location for the transfer of goods from the rear of the delivery vehicle to the store shelf or home
Lead logistics provider/partner (LLP)
See 4PL
Less-than-truckload (LTL)
A shipment that does not fill a standard truck
Linehaul
Overland transportation, by road or by rail, and applying particularly to transportation from origin depot to port of shipment or from port of arrival to destination depot
Logistics
The process of planning, implementing and controlling the efficient and cost-effective flow and storage of raw materials, in-process stocks, finished goods and related information from the point of origin to the point of consumption for customers. Put more simply, it is the science and art of ensuring that the right products reach the right place in the right quantity at the right time in order to satisfy customer demand. Logistics encompasses warehousing, transport, added-value/pre-retailing services and IT solutions and covers inbound, outbound, internal, international and reverse product flows
Logistics re-engineering
The study and re-design of logistics processes to achieve a significant improvement in performance
Logistics service provider (LSP)
An organisation that offers 3PL or 4PL services
Logistics Control Tower (LCT)
See Control Tower
Logistics outsourcing
See outsourcing
M
Merge in transit
A logistics structure without warehouses for distribution of consolidated deliveries of goods to customers from more than one producer/supply source
Multi-modal
Shipping that includes at least two modes of transport
Multi-user
Typically, a storage site used by more than one manufacturer or organisation
A logistics structure without warehouses for distribution of consolidated deliveries of goods to customers from more than one producer/supply source
Multi-modal
Shipping that includes at least two modes of transport
Multi-user
Typically, a storage site used by more than one manufacturer or organisation
N
National Distribution Centre (NDC)
See Distribution Centre (DC)
See Distribution Centre (DC)
O
Origin services
Support/added-value functions offered at the point of origin of merchandise or materials. Can include buying, purchase order management, vendor compliance, quality inspection, document management, container optimisation, pick-and-pack, pallet loading, customs processing and consolidation
Outbound logistics
See distribution
Outsourcing
The sub-contracting to external companies of tasks considered to be outside an organisation's core competence. Logistics outsourcing is one of the most popular forms
Outward Processing Relief (OPR)
Transport and customs management of materials and product following a procedure that avoids customs payment
Support/added-value functions offered at the point of origin of merchandise or materials. Can include buying, purchase order management, vendor compliance, quality inspection, document management, container optimisation, pick-and-pack, pallet loading, customs processing and consolidation
Outbound logistics
See distribution
Outsourcing
The sub-contracting to external companies of tasks considered to be outside an organisation's core competence. Logistics outsourcing is one of the most popular forms
Outward Processing Relief (OPR)
Transport and customs management of materials and product following a procedure that avoids customs payment
P
Pallet
A flat wooden tray that is loaded by a fork-lift truck, used for transporting goods
Pick-and-pack
The process by which goods are picked against customers orders and then packed for onward distribution
Pre-retailing
The process of preparing merchandise in the DC for transfer to and display at the retail outlet. Can include the removal of transit packaging, transfer of garments from boxed to hanging format, ticketing, tagging and assembly of merchandise into store-floor or store-shelf order
Pre-shipping
Activities completed before goods are transported by sea
Pull replenishment
The customer-driven flow of materials and merchandise through the supply chain. See also demand chain
A flat wooden tray that is loaded by a fork-lift truck, used for transporting goods
Pick-and-pack
The process by which goods are picked against customers orders and then packed for onward distribution
Pre-retailing
The process of preparing merchandise in the DC for transfer to and display at the retail outlet. Can include the removal of transit packaging, transfer of garments from boxed to hanging format, ticketing, tagging and assembly of merchandise into store-floor or store-shelf order
Pre-shipping
Activities completed before goods are transported by sea
Pull replenishment
The customer-driven flow of materials and merchandise through the supply chain. See also demand chain
Q
No terms available for this letter
R
Railfreight
The transport of goods by rail
Roadfreight
The transport of goods by road
Real-time
In the present. A real-time system that enables an immediate response to external events. Often used in relation to tracking; see also track-and-trace
Roadside
See kerbside
Reverse logistics
The process of collecting, handling and transporting used, damaged, unwanted or end-of-life goods and/or packaging for disposal, recycling or recovery. Can also refer to the return of reusable transit equipment (pallets, containers etc.) to a point further up the supply chain (i.e., upstream)
RFID/smart labels
RFID is radio frequency identification, a system that uses radio signals to locate and identify merchandise, batched products or transportation assets fitted with special electronic tags. The tags – also known as smart labels or intelligent tags – enable the automatic track- and-trace of merchandise/assets throughout the supply chain. RFID can help to reduce administration, improve productivity, optimise the use of warehousing space and increase accuracy and control
Routing
The process for arranging the course of direction of goods for transport
Re-working/Re-packing
The Repacking of goods for a specific customer can include repalletisation. Reworking is the modification of products to suit a local market.
Regional Distribution Networks (RDN)
Warehousing and distribution to stores. See also Domestic Distribution Networks
The transport of goods by rail
Roadfreight
The transport of goods by road
Real-time
In the present. A real-time system that enables an immediate response to external events. Often used in relation to tracking; see also track-and-trace
Roadside
See kerbside
Reverse logistics
The process of collecting, handling and transporting used, damaged, unwanted or end-of-life goods and/or packaging for disposal, recycling or recovery. Can also refer to the return of reusable transit equipment (pallets, containers etc.) to a point further up the supply chain (i.e., upstream)
RFID/smart labels
RFID is radio frequency identification, a system that uses radio signals to locate and identify merchandise, batched products or transportation assets fitted with special electronic tags. The tags – also known as smart labels or intelligent tags – enable the automatic track- and-trace of merchandise/assets throughout the supply chain. RFID can help to reduce administration, improve productivity, optimise the use of warehousing space and increase accuracy and control
Routing
The process for arranging the course of direction of goods for transport
Re-working/Re-packing
The Repacking of goods for a specific customer can include repalletisation. Reworking is the modification of products to suit a local market.
Regional Distribution Networks (RDN)
Warehousing and distribution to stores. See also Domestic Distribution Networks
S
Seafreight
The transport of goods by sea
Service logistics
Logistics activities relating to the management of parts to and from customers
Shared-user
See multi-user
Sourcing
The practice of locating and procuring goods and products
Sub-assembly
The processes for putting together individual units to fit with other components to make a finished product
Supply chain
A linked set of resources and processes that begins with the sourcing of raw materials and ends with the delivery of merchandise to the final customer. It covers vendors, manufacturing facilities, logistics service providers, internal distribution centres, distributors, wholesalers and other intermediaries. See also demand chain
Supply chain management
The co-ordinated control of the supply chain, from the acquisition of raw materials from vendors through their transformation into finished goods to the delivery of merchandise to the final customer. It involves end-to-end information sharing, planning, resource synchronisation and performance measurement
Suply chain re-engineering
A review of supply chain efficiencies. One of the main tasks is to evaluate cost efficiency to ensure that costs are being driven down through the contract duration
Strategic parts centres
Strategic Part Centres (SPCs) are in-country facilities offering:
The transport of goods by sea
Service logistics
Logistics activities relating to the management of parts to and from customers
Shared-user
See multi-user
Sourcing
The practice of locating and procuring goods and products
Sub-assembly
The processes for putting together individual units to fit with other components to make a finished product
Supply chain
A linked set of resources and processes that begins with the sourcing of raw materials and ends with the delivery of merchandise to the final customer. It covers vendors, manufacturing facilities, logistics service providers, internal distribution centres, distributors, wholesalers and other intermediaries. See also demand chain
Supply chain management
The co-ordinated control of the supply chain, from the acquisition of raw materials from vendors through their transformation into finished goods to the delivery of merchandise to the final customer. It involves end-to-end information sharing, planning, resource synchronisation and performance measurement
Suply chain re-engineering
A review of supply chain efficiencies. One of the main tasks is to evaluate cost efficiency to ensure that costs are being driven down through the contract duration
Strategic parts centres
Strategic Part Centres (SPCs) are in-country facilities offering:
- 1, 2 and 4 hour order fulfillment
- stock optimisation across the complete network of SPCs
- guaranteed performance against agreed business rules
T
TEU
20-foot equivalent container; the standard size of a seafreight container
Temperature-controlled
The storage of goods within a certain temperature range as required by the product type, eg, chilled and frozen
Third party logistics provider (3PL)
A supplier of logistics services that primarily uses its own assets and resources
Time-definite
A freight or delivery service that specifies or guarantees a day or time
Track-and-trace
The process for recording the progress of a consignment through the supply chain, usually in or near real-time, in order to track its status or trace its movements. Sophisticated Control Tower systems function as a single point of control, delivering centralised command of the supply chain with full visibility
Transload
The transfer of 40ft container loads into truck-driven 53ft containers to reduce costs per unit and achieve faster and more accurate deliveries
Truckload
See FTL and LTL
20-foot equivalent container; the standard size of a seafreight container
Temperature-controlled
The storage of goods within a certain temperature range as required by the product type, eg, chilled and frozen
Third party logistics provider (3PL)
A supplier of logistics services that primarily uses its own assets and resources
Time-definite
A freight or delivery service that specifies or guarantees a day or time
Track-and-trace
The process for recording the progress of a consignment through the supply chain, usually in or near real-time, in order to track its status or trace its movements. Sophisticated Control Tower systems function as a single point of control, delivering centralised command of the supply chain with full visibility
Transload
The transfer of 40ft container loads into truck-driven 53ft containers to reduce costs per unit and achieve faster and more accurate deliveries
Truckload
See FTL and LTL
U
Upstream
See reverse logistics
Unit cost
The total cost of producing a single unit
See reverse logistics
Unit cost
The total cost of producing a single unit
V
Value-added services
See added-value services
Vendor consolidation
The process for managing various vendors in order to consolidate multiple LTL shipments within a consignment to reduce costs and improve delivery efficiency
Vendors
The sellers of products and services
Visibility
The ability to view detailed information about supply chain management processes, typically in real or near real-time
See added-value services
Vendor consolidation
The process for managing various vendors in order to consolidate multiple LTL shipments within a consignment to reduce costs and improve delivery efficiency
Vendors
The sellers of products and services
Visibility
The ability to view detailed information about supply chain management processes, typically in real or near real-time
W
Warehouse/warehousing
See distribution centre
See distribution centre
X
No terms available for this letter
Y
No terms available for this letter
Z
No terms available for this letter
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