Logistics ABC

Welcome to the Logistics ABC, the place where all important logistics terms are clearly brought together. The logistics sector is dynamic and complex, with countless concepts that are essential for a good understanding of transport, storage, supply chain management, and distribution.

Our goal with this page is to provide clear and concise explanations of commonly used logistics terms. Whether you’re a professional looking to refresh your knowledge, a student seeking to understand the basics, or simply curious about the world of logistics – here you’ll quickly and easily find the right information.

Use the alphabetical index to navigate directly to the desired terms and discover everything about the key concepts in the logistics sector.

A B C D E F G H I J K L M N O P Q R S T U W V X Y Z

ABC analysis – A method of inventory classification based on importance and turnover value, where items are categorized into A (most valuable), B (moderately valuable), and C (least valuable).

AEO (Authorized Economic Operator) – Customs certification for companies that meet strict security requirements and operate efficient trade processes, resulting in faster cross-border logistics.

AGV (Automated Guided Vehicle) – An automated, self-driving vehicle used for internal transport in warehouses and distribution centers.

Air freight – Transport of goods by aircraft, primarily used for fast and international deliveries with high value per weight unit.

AMS (Asset Management System) – A system for managing and tracking assets such as trucks, containers, and warehouse inventory.

ATP (Available-to-Promise) – The quantity of inventory available for sale that has not yet been allocated to existing orders, enabling companies to make accurate delivery promises.

Backhaul – A return transport where a truck carries a load on the way back to avoid empty trips and reduce transport costs.

Backorder – An order that is temporarily unavailable and delivered later once inventory is restocked.

Batch picking (WMS) – An order picking method where multiple orders are picked simultaneously to increase efficiency and reduce walking distances in a warehouse.

Barge – An inland vessel used for transporting goods via rivers and canals, often as an alternative to road transport.

Bill of Lading (B/L) – A legal document containing details about the cargo, owner, and carrier, serving as proof of receipt and ownership.

Buffer stock – Extra inventory held to absorb unexpected demand peaks or supply delays.

Call-off order – An order where products are only delivered when needed, helping to minimize inventory risks and storage costs.

Cargo – A general term for goods transported by ship, plane, train, or truck.

Carrier – A transportation company responsible for moving goods from one location to another.

CMR – An international consignment note used in road transport that defines the rights and obligations of the carrier and shipper.

Cold Chain – A controlled temperature chain ensuring that perishable goods, such as food and medicine, remain at the right temperature during transport and storage.

Consolidation – Combining smaller shipments into one larger shipment to reduce transport costs and increase efficiency.

Control Tower (TMS) – A central management system for monitoring and optimizing logistics processes, enabling real-time insight and control.

Cross Docking – A logistics strategy where incoming goods are directly transferred to outbound transport without long-term storage.

Customs bonded warehouse – A storage facility where goods can be stored without paying import duties until they are re-exported or sold.

Customs broker – A service provider that handles import and export formalities, such as customs documentation and tax declarations.

Customs clearance – The customs process in which goods are registered and duties and taxes are paid before they are allowed into the country.

Deep Sea – Transport of goods over long distances by sea freight, often between continents.

Demurrage – Charges incurred for leaving containers at a port for too long after the free period has expired.

Detention – Charges imposed when a container is held outside the terminal longer than the allowed time.

Dock scheduling (WMS/TMS) – An automated scheduling system for booking loading and unloading times at distribution centers and warehouses.

EDI (Electronic Data Interchange) – A system for automated exchange of business documents, such as orders and invoices, between companies.

Emission – The release of CO₂ and other greenhouse gases by transport modes and logistics processes, a key issue in sustainable logistics.

Entrepôt – A storage facility where goods can be stored without import duties until they are re-exported or sold.

ETA (Estimated Time of Arrival) – The expected arrival time of a vehicle or shipment, often based on real-time traffic information.

ETD (Estimated Time of Departure) – The expected departure time of a vehicle or shipment, essential for transport planning and customer expectations.

FCL (Full Container Load) – A transport method where a full container is reserved for one customer, with no other parties’ cargo.

FEFO (First Expired, First Out) – An inventory management principle where products with the shortest shelf life are used first to minimize waste.

FIFO (First In, First Out) (WMS) – An inventory strategy where the oldest stock is sold or used first to prevent product aging.

FMS (Fleet Management System) – Software for managing, tracking, and optimizing vehicles and trips within a transport fleet.

FMS (Forwarding Management System) – Software used to optimize transport management, including planning, tracking, and administrative handling of logistics chain transports.

Forklift – An internal transport vehicle used for moving, loading, and unloading pallets and heavy goods in warehouses and distribution centers.

Freight forwarder – A logistics service provider responsible for organizing transport and customs formalities for shippers.

Freight optimization (TMS) – Improving load capacity and route planning to maximize transport efficiency.

FTL (Full Truck Load) – A transport method where a full truck is reserved for a single shipment.

Goods flow – The movement of goods through the supply chain, from supplier to end customer, including storage and transport.

GPS tracking (FMS) – Technology that tracks vehicles and cargo in real time, contributing to efficient fleet management and better customer service.

Groupage – Combining small shipments into one transport to save costs and optimize transport capacity utilization.

Hub-and-spoke – A logistics model using a central hub to collect and distribute shipments to various destinations, increasing transport efficiency.

Inbound Logistics – The process of receiving, storing, and distributing incoming goods within an organization or supply chain.

Incoterms – International delivery terms that define the responsibilities of buyers and sellers regarding transport, costs, and risks in international trade.

Inland shipping – Transport of goods via rivers and canals, often a more sustainable and cost-effective alternative to road transport.

Intermodal transport – Transport that combines different modes (such as road, rail, and water) without handling the cargo itself, increasing efficiency.

Inventory turnover – The frequency at which inventory is sold and replenished, a key indicator for inventory management and operational efficiency.

Just-in-Time (JIT) – An inventory strategy where goods are only produced or delivered when needed, minimizing storage costs and waste.

Last mile delivery – The final leg of a delivery, from a distribution center to the end customer, often the most expensive and complex link in the supply chain.

LTL (Less than Truck Load) – A transport method where several small loads from different shippers are combined in one truck to save costs.

Modality – The different transport modes such as road, water, rail, and air that can be used within a supply chain.

Multimodal transport – The use of multiple transport modes within a single logistics chain to improve flexibility and efficiency.

Network optimization – Improving logistics networks by optimizing routes, hubs, and transport modes to minimize costs and lead times.

Night distribution – A form of transport and logistics where goods are delivered at night to avoid traffic congestion and enable faster delivery.

Order picking (WMS) – The process of collecting items from inventory and preparing them for shipment, a core function within warehouse management.

Outsourced transport – Transport carried out by an external carrier instead of the shipper, often to reduce costs and increase flexibility.

Pallet – A standardized load carrier used for the safe and efficient storage and transport of goods.

Parcel service – A courier service focused on the fast and efficient delivery of small packages to businesses and consumers.

Plan board (TMS) – A digital tool within a Transport Management System (TMS) used to plan and manage transport operations.

Quality Control (QC) – The process of quality assurance and inspection within the logistics chain to ensure that products meet required standards.

Rail transport – The transportation of goods by train, an environmentally friendly alternative to road transport.

Refrigerated transport – Transport that maintains a controlled temperature to keep perishable goods like food and pharmaceuticals in optimal condition.

Reverse logistics – The process of returning products, for example due to defects, recycling, or reuse, an important part of sustainable logistics.

Road transport – The transportation of goods by road using trucks, one of the most common transport modes.

Route planning (TMS) – The optimization and planning of transport to improve efficiency, reduce costs, and ensure delivery reliability.

Shipper – The party responsible for offering goods to a carrier for transport. The shipper organizes or coordinates the shipment and ensures proper preparation, including documentation and packaging.

Short Sea – Transport over short sea distances, often between ports on the same continent.

Storage – The act of keeping goods in a warehouse or distribution center, either temporarily or long-term. Efficient storage is essential for inventory management and supply chain optimization.

Supply Chain – The entire logistics chain from raw material supplier to end customer, including production, storage, and distribution.

Synchromodality – A flexible transport strategy where different modes are used dynamically to optimize efficiency and sustainability.

Tachograph analysis – The analysis of drivers’ driving and rest times based on tachograph data, helping ensure compliance with driving time regulations.

TMS (Transport Management System) – A software solution for planning, executing, and optimizing transport processes.

Track & Trace (TMS/FMS) – A system that allows real-time tracking of shipments, ensuring transparency in the supply chain.

Transport optimization – Improving transport efficiency through better route planning, load management, and vehicle coordination.

Transshipment – The transfer of goods from one mode of transport to another, often within terminals or distribution centers.

Value Added Logistics (VAL) – Additional services within the logistics chain, such as labeling, assembly, or packaging, to add value to products.

Warehouse management (WMS) – The process of organizing, optimizing, and managing storage, picking, and shipping of goods within a warehouse.

Warehouse rental – The leasing of storage space for temporary or long-term storage of goods, depending on a company’s logistics needs.

WMS (Warehouse Management System) – A software solution for managing warehouse processes, from receiving to shipping.

Wave Picking – An order picking strategy in which orders are processed in batches (waves) to increase efficiency and reduce lead times.

Sea freight – The transport of goods by sea, often used for bulk cargo and intercontinental trade.

Cijfers

2PL (Second Party Logistics) – A logistics service provider that handles only transportation.

3PL (Third Party Logistics) – An external logistics partner that manages transport, storage, and distribution.

4PL (Fourth Party Logistics) – A strategic partner that optimizes and coordinates the entire logistics chain.

5PL (Fifth Party Logistics) – An advanced logistics provider that manages multiple supply chains and networks with a focus on digitalization and automation.

Wil je meer weten over hoe wij jouw logistiek kunnen verbeteren?

Neem contact met ons op voor een vrijblijvend gesprek of plan een demo. Samen realiseren we uw logistieke doelen en ondersteunen we de groei van uw bedrijf!

Telephone	+31 (0)184-633 851
E-mail	info@adaption-it.nl
Support	Report issue
Work with us?	See our vacancies
Sitemap	Our website