The Logistics ABC
Explanation of logistics terms, supply chain, warehousing and transport
Welcome to the Logistics ABC, the online knowledge base for logistics terminology. On this page you will find a clear and comprehensive overview of commonly used terms within logistics, transport, warehousing, supply chain management and distribution. The logistics sector has a wide range of technical terms that are essential for a good understanding of processes such as goods flows, inventory management and transport planning. That is why we provide clear, concise and practice-oriented explanations that can be applied directly. This page helps you get started quickly. Thanks to the alphabetical index, you can easily navigate to the right terms and discover the most important definitions within the logistics world.
A
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.
ATEX – European directive for equipment and working environments where there is a risk of explosion, particularly relevant in the storage and handling of powdered bulk materials.
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.
B
Bagging – Packaging bulk goods into bags or smaller units for distribution and sale.
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.
Big bags (FIBC) – Flexible bulk containers used for storing and transporting dry bulk goods such as powders and granules.
Big bags transport – A transport method where bulk goods are transported in big bags for flexibility and protection.
Blending – Mixing different bulk materials to obtain a homogeneous end product.
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.
Bulk blending – Mixing bulk goods in large volumes, commonly applied in chemical, food, and feed industries.
Bulk containers – Containers specifically designed for transporting unpackaged bulk goods.
Bulk goods – Unpackaged goods stored and transported in large quantities, such as grains, sand, or chemicals.
Bulk handling – The process of loading, unloading, transporting, and storing bulk goods.
Bulk loading – Loading bulk goods into transport units such as silos, tanks, or vessels.
Bulk logistics – Managing and optimizing supply chains focused on bulk flows.
Bulk storage – Storing unpackaged goods in silos, tanks, or warehouses.
Bulk transport – Transporting large quantities of unpackaged goods via road, water, rail, or pipelines.
Bulk unloading – The process of unloading bulk goods from transport units.
Bulk warehousing – Storage of bulk goods in specialized warehouse facilities.
Bulk warehouses – Storage facilities for bulk goods, often equipped with specialized handling equipment.
Bulk carriers – Ships specifically designed for transporting dry or liquid bulk goods.
Bunkers – Storage structures for bulk goods, often used for temporary storage and transshipment.
Bulk density – The density of bulk material including the space between particles.
C
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.
Centrifuging – Separating substances based on density using centrifugal force, often applied in liquid bulk processing.
CMR – An international consignment note used in road transport that defines the rights and obligations of the carrier and shipper.
Coating – Applying a protective or functional layer to bulk particles to improve properties such as shelf life or processability.
Cohesion – The degree to which bulk particles stick together, affecting flow and processing.
Compaction – Compressing bulk materials to reduce volume or improve product properties.
Conditioning – Adjusting temperature, moisture, or other properties of bulk goods to maintain quality.
Continuous processing – Continuous processing of bulk materials without interruption, often used in large-scale production.
Conveyor systems – Conveyor belts used for internal transport of bulk goods.
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.
D
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.
De-aeration – Removing air from bulk materials to improve dosing accuracy and processing.
Debagging – Unpacking bulk goods from bags or big bags for further processing or storage.
Decanting – Controlled pouring of liquid bulk from one container to another without transferring sediment.
Decontamination – Cleaning bulk goods or installations to remove contaminants.
Degassing – Removing dissolved gases from liquid bulk goods to improve stability and safety.
Dry bulk – Solid, unpackaged goods such as grains, coal, or minerals stored and transported in bulk.
Drums and barrels – Cylindrical packaging used for liquid or solid bulk goods.
Drying – Removing moisture from bulk goods to improve quality, shelf life, and processability.
Dust formation – The generation of dust particles during handling or processing of bulk goods.
E
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.
Elevator systems – Vertical conveying systems used for transporting bulk goods such as grains.
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.
F
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 (FMS) – 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.
Flexitanks – Flexible tanks placed inside containers for transporting liquid bulk.
Filling – Filling packaging such as bags, containers, tanks, or IBCs with bulk goods.
Filtering – Separating solid particles from liquids or gases within bulk processes.
Food grade storage – Storage facilities that comply with food safety standards.
G
Gas bulk – Bulk goods in gaseous form stored and transported under pressure.
Granulate – Granular bulk materials such as plastic pellets or fertilizers.
Grinding – Reducing bulk materials into finer particles through mechanical processing.
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.
Grinding (milling) – Reducing bulk materials into finer particles to improve processing or transport.
H
Heating – Heating bulk goods to influence properties such as viscosity or processability.
Hopper systems – Funnel-shaped storage systems for controlled discharge of bulk goods.
Hub-and-spoke – A logistics model using a central hub to collect and distribute shipments to various destinations, increasing transport efficiency.
Hygroscopicity – The property of materials to absorb moisture from the air, affecting storage and processing.
I
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.
ISO tanks – Standardized tanks for international transport of liquid bulk goods.
IBC filling – Filling Intermediate Bulk Containers with liquid or solid bulk goods.
Inspection – Checking bulk goods or processes to ensure quality and compliance.
J
Just-in-Time (JIT) – An inventory strategy where goods are only produced or delivered when needed, minimizing storage costs and waste.
L
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.
Labeling – Applying labels to packaging for identification, traceability, and regulatory compliance.
Loading and unloading – The process of loading and unloading goods in transport units and storage facilities.
Liquid bulk – Liquid bulk goods such as oil, chemicals, or food products.
M
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.
Mechanical conveying – Moving bulk goods using mechanical systems such as conveyors or screw conveyors.
Melting – Converting solid bulk materials into liquid form for further processing or transport.
Mixing – Combining different bulk materials to create a homogeneous product.
Moisture content – The amount of moisture present in bulk material, affecting quality and storage.
N
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.
Neutralization – A chemical process where bulk materials are neutralized to ensure stability and safety.
O
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.
P
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.
Particle size – The size of particles in bulk material, influencing processing, flow, and quality.
Packing – Packaging bulk goods into suitable formats for distribution.
Palletizing – Stacking packaged goods onto pallets for efficient storage and transport.
Pumping – Moving liquid bulk goods using pump systems.
Pneumatic conveying – Transporting bulk goods through pipelines using air pressure.
Powder bulk – Finely divided dry bulk materials such as flour, cement, or chemicals.
Q
Quality Control (QC) – The process of quality assurance and inspection within the logistics chain to ensure that products meet required standards.
R
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.
S
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.
Storage tanks – Tanks used for storing liquid bulk goods such as chemicals or fuels.
Storage silos – Vertical storage structures for dry bulk goods such as grains or powders.
Sealing – Closing packaging to prevent leakage, contamination, or quality loss.
Silo storage – Storage of dry bulk goods in silos for efficient and controlled handling.
Slurry – A mixture of solid particles and liquid transported as bulk.
Stabilization – Stabilizing bulk goods to prevent chemical or physical changes.
Sieving – Separating bulk particles based on size.
T
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.
Tank storage – Storage of liquid bulk in tanks.
Tank terminals – Facilities for storage and transshipment of liquid bulk goods.
Tank-to-tank transfer – Pumping liquid bulk between storage tanks.
Tank transport – Transport of liquid bulk via tank trucks or tank vessels.
Tank trucks – Road vehicles specifically designed for liquid bulk transport.
Testing – Performing analyses on bulk goods to verify quality and specifications.
Throughput – The quantity of goods processed within a certain period in a logistics system.
U
Unloading (bulk unloading) – The process of removing bulk goods from transport units.
V
Value Added Services (VAS) – Additional services within the logistics chain, such as labeling, assembly, or packaging, to add value to products.
W
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.
Weighing systems – Systems used for accurately measuring quantities of bulk goods.
Z
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.
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