30 Business Distribution Logistics Terms

Logistics – The management of the flow of goods between the point of origin and the point of consumption.

Supply Chain – The entire system of producing and delivering a product or service, from the very beginning stage of sourcing the raw materials to the final delivery of the product or service to end consumers.

Distribution – The process of making a product or service available for the consumer or business user who needs it.

Warehouse – A large building where raw materials or manufactured goods may be stored before their export or distribution for sale.

Inventory Management – The supervision of non-capitalized assets, or inventory, and stock items.

Freight Forwarding – A service used by companies that deal in international or multi-national import and export.

Third-Party Logistics (3PL) – A provider of outsourced logistics services that covers all aspects of supply chain management.

Fourth-Party Logistics (4PL) – A firm that offers service beyond 3PL, including logistics strategy, analysis, and management.

Distribution Center – A principal part, often a warehouse or other storage facility, where a product is received, stored, and distributed.

Carrier – A firm that transports goods or people via land, sea, or air.

Supply Chain Management (SCM) – The management of the flow of goods and services and includes all processes that transform raw materials into final products.

Just-In-Time (JIT) – An inventory strategy companies employ to increase efficiency and decrease waste by receiving goods only as they are needed.

Fulfillment – The process of taking an order and executing it by making it ready for delivery to its intended customer.

Last Mile Delivery – The final movement of a product from a transportation hub to the final delivery destination.

Intermodal Transportation – The use of two or more different modes of transport in conveying goods.

Bill of Lading – A legal document between a shipper and carrier detailing the type, quantity, and destination of goods being shipped.

Customs Clearance – The act of moving goods through customs so they can enter or leave a country.

Reverse Logistics – The process of moving goods from their typical final destination for the purpose of capturing value, or proper disposal.

Cross-Docking – The process of moving a product directly from the receiving dock to the shipping dock, minimizing storage time.

Palletization – The process of placing and securing goods on a pallet for efficient transportation and storage.

Incoterms – A series of pre-defined commercial terms published by the International Chamber of Commerce related to international commercial law.

Demand Forecasting – The process of estimating the quantity of a product or service that consumers will purchase.

Lead Time – The time interval between the initiation and the completion of a production process.

Track and Trace – The process of determining the current and past locations of a unique item or property.

Bulk Cargo – Cargo that is shipped loose as it is loaded directly into a vessel.

Cold Chain – A temperature-controlled supply chain used to preserve and transport perishable goods.

Less than Truckload (LTL) – A shipping mode for relatively small freight.

Full Truckload (FTL) – A shipment in which a truck carries one dedicated shipment.

Pick and Pack – The process of picking out ordered items from a warehouse inventory and packing them for shipment.

Shipping Manifest – A document listing the cargo, passengers, and crew of a ship, aircraft, or vehicle for the use of customs and other officials.