Glossary of Logistics Terms
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3PL (Third-Party Logistics): Outsourced logistics services that include transportation, warehousing, and order fulfillment.
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4PL (Fourth-Party Logistics): A higher level of logistics outsourcing where the provider manages resources, technology, and operations across the entire supply chain.
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Backhaul: The return trip of a vehicle after delivering goods, often used to carry additional shipments to optimize efficiency.
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Bill of Lading (BOL): A legal document between a shipper and a carrier detailing the type, quantity, and destination of goods being transported.
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Cross-Docking: A logistics process where incoming shipments are directly transferred to outgoing vehicles without being stored in a warehouse.
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Demand Forecasting: The process of predicting future customer demands to optimize inventory levels and supply chain operations.
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EDI (Electronic Data Interchange): A system for exchanging business information electronically between organizations in a standardized format.
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First-Mile Delivery: The initial stage of the supply chain where goods are moved from the supplier or manufacturer to the logistics hub.
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FTL (Full Truckload): A shipping method where a truck is fully loaded with goods from one shipper.
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Hub-and-Spoke: A logistics model where goods are transported from multiple origins to a central hub and then distributed to final destinations.
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Inventory Turnover: A measure of how often inventory is sold and replaced over a specific period
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JIT (Just-In-Time): An inventory strategy where materials are received only as they are needed to reduce storage costs.
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LTL (Less-Than-Truckload): A shipping method where multiple small shipments from different shippers share space on a truck.
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Last-Mile Delivery: The final step of the delivery process where goods are transported to the customer’s doorstep.
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Load Tendering: The process of offering a shipment to a carrier for transport.
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Reverse Logistics: The process of managing returns, repairs, recycling, or disposal of goods.
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SKU (Stock Keeping Unit): A unique identifier for each distinct product in inventory.
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Supply Chain: The entire network of entities involved in producing and delivering goods to the end customer.
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Waybill: A document accompanying a shipment, providing details of the shipment, sender, and recipient.
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Zone Picking: A warehouse order-picking system where workers are assigned to specific zones to fulfill parts of an order.
This glossary ensures clarity and understanding of common logistics terms for clients, partners, and employees.