Logistics Glossary

An external provider that manages warehousing, transportation, and distribution services on behalf of another company.

An integrator that manages and coordinates an entire supply chain on behalf of a client, overseeing multiple 3PL providers and carriers.

Goods positioned in forward pick locations within a warehouse, ready for immediate order fulfilment.

Freight transported by aircraft, typically used for high-value, time-sensitive, or perishable goods where speed justifies higher transport costs.

A non-negotiable transport document issued by an airline or freight forwarder as a receipt and contract for the carriage of goods by air.

The return journey of a delivery vehicle carrying cargo back to its point of origin or a hub, rather than returning empty.

A warehouse picking method that groups multiple orders together, allowing a picker to collect items for several orders in a single pass through the warehouse.

A legal transport document issued by a sea carrier serving as a receipt for goods, evidence of the contract of carriage, and a document of title.

A specific, numbered storage position within a warehouse where an item is stored, identified by aisle, rack, level, and position codes.

A government-authorised storage facility where imported goods can be held without payment of customs duties until they are released for domestic use or re-exported.

Non-containerised cargo loaded individually onto a vessel as separate pieces — such as bags, crates, drums, machinery, or steel beams.

Extra inventory held in reserve to protect against unexpected demand surges or supply chain disruptions.

Unpackaged commodities transported loose in a vessel's hold or in bulk containers, measured by weight or volume rather than unit count.

A company or individual that provides transportation services, physically moving goods from origin to destination by land, sea, or air.

A temperature-controlled facility designed to store perishable goods, pharmaceuticals, or sensitive products within specific temperature ranges.

A carrier that offers transportation services to the general public at published rates, with a legal obligation to serve all shippers without discrimination.

Combining multiple smaller shipments from different shippers into one larger shipment to achieve lower transport rates and more efficient use of vehicle or container capacity.

A standardised metal box designed for intermodal freight transport — transferable between ships, trucks, and rail without unloading the cargo inside.

A facility where loose cargo is consolidated into containers for export or deconsolidated from containers after import.

A carrier that provides transportation services under specific negotiated agreements with individual shippers, offering customised rates and service levels.

A logistics practice where incoming goods are sorted and directly transferred to outbound vehicles with minimal or no storage time in between.

An inventory auditing method where a portion of stock is counted regularly on a rotating schedule, rather than conducting a full physical inventory shutdown.

Inventory that has not been sold or moved for a prolonged period and is unlikely to sell in the future.

A charge imposed when a loaded container remains at a port terminal beyond the allowed free time after vessel arrival, incentivising timely cargo collection.

A charge incurred when a shipping container is held outside the port terminal (at a warehouse, yard, or customer site) beyond the allowed return period.

A specialised warehouse designed for short-term storage and rapid throughput, focused on receiving, sorting, and dispatching goods to their final destinations.

Short-distance transport of containers or cargo between a port, rail terminal, and a nearby warehouse or distribution facility.

A standard enclosed trailer without temperature control, used for transporting non-perishable, weather-sensitive freight on roads.

Packing materials used to protect goods from damage, moisture, and movement during storage and transportation.

A shipment given priority handling and faster transit to meet an urgent deadline, typically at a premium cost over standard shipping.

A shipment where a single shipper fills and pays for an entire shipping container, used when cargo volume is sufficient to justify exclusive container use.

An inventory management principle where products with the earliest expiry dates are picked and shipped first, regardless of when they were received.

A container measurement unit based on a standard 40-foot shipping container, equal to two TEUs.

An inventory management principle ensuring that the oldest stock received into a warehouse is used or shipped before newer inventory.

The initial leg of the delivery journey, from the seller, manufacturer, or warehouse to the first distribution hub or transport terminal.

The oversight and coordination of a company's vehicle fleet, including acquisition, maintenance, routing, driver management, and performance monitoring.

Goods being transported from one location to another, or the charges paid for the transportation of those goods.

An intermediary that arranges the shipment of goods on behalf of businesses, coordinating carriers, documentation, customs, and insurance across the supply chain.

A shipment that fills an entire truck trailer, transported directly from origin to destination without stops for other pickups or deliveries.

A warehouse facility specialised in processing individual customer orders — picking, packing, and shipping items directly to end consumers.

The formal process of receiving, inspecting, and recording incoming materials or products into warehouse inventory.

A distribution model where cargo flows through a central hub before being routed to final destinations, concentrating sorting and consolidation at one point.

The use of two or more different transport modes — such as sea, rail, and road — in a single shipment journey, with cargo remaining in the same container throughout.

A financial metric measuring how many times a company sells and replaces its entire inventory over a given period, typically a year.

The process of pre-assembling individual items into ready-to-ship sets, bundles, or kits before customer orders are received.

The final leg of the delivery journey — from the local distribution hub or warehouse to the end customer's address.

A shipment smaller than a full container, consolidated with other shippers' cargo in a shared container to reduce shipping costs.

Long-distance trunk transport of freight between major terminals, cities, or hubs — the main highway leg of a shipment journey.

A road freight shipment that does not fill an entire truck, transported alongside other shippers' goods with multiple pickup and delivery stops.

The carriage of goods by at least two different transport modes under a single contract and a single bill of lading, managed by one responsible operator.

A carrier that issues bills of lading and accepts responsibility for shipments but does not own or operate the vessels that physically transport the goods.

A portable, flat platform used for stacking, storing, and transporting goods as a single unit load, typically made of wood, plastic, or metal.

A structural storage system of horizontal beams and vertical frames designed to store goods on pallets at multiple height levels.

A continuous inventory tracking system where every inbound and outbound transaction is recorded in real time, providing an always-current view of stock levels.

The warehouse process of selecting individual items from inventory (picking) and packaging them into shipment-ready parcels (packing) for delivery to customers.

The process of moving received goods from the receiving dock to their assigned storage locations within the warehouse.

A refrigerated shipping container equipped with an integrated cooling unit to maintain specific temperatures during sea, road, or rail transport.

The use of algorithms and software to determine the most efficient delivery routes, minimising distance, time, fuel consumption, and cost.

The minimum level of inventory held as a buffer to prevent stockouts when demand exceeds forecasts or supply is delayed.

A logistics service that delivers goods to the customer within hours of order placement, on the same calendar day.

A unique alphanumeric identifier assigned to each distinct product variant, used for tracking inventory, sales, and logistics operations.

The strategic assignment of products to specific warehouse storage locations based on pick frequency, size, weight, and other factors to optimise operational efficiency.

A designated space in a warehouse where goods are assembled and organised before being loaded onto outbound vehicles for dispatch.

The standard unit for measuring container ship capacity and port throughput, based on a standard 20-foot shipping container.

The duration required for goods to travel from the point of origin to the final destination, measured from departure to arrival.

The transfer of cargo from one vessel or transport mode to another at an intermediate port or hub en route to the final destination.

A grouping of individual items consolidated onto a single pallet, in a container, or in a crate for handling as one entity throughout the supply chain.

Warehouse services beyond basic storage, such as labelling, kitting, assembly, quality inspection, repackaging, or customisation of products.

The process of storing goods in a managed facility between production and consumption, encompassing receiving, storage, inventory management, and dispatch.

A scheduled warehouse picking approach that groups orders into time-based waves for coordinated, simultaneous processing.

A warehouse picking method that divides the facility into zones, with each picker assigned to a specific zone to pick only the items stored there.