Logistics Dictionary

Your guide to the fascinating (and sometimes complex) world of logistics lingo! Whether you’re navigating freight forwarding, supply chains, or warehousing, we’ve got you covered with clear and straightforward definitions of the most common industry terms.

We’ve designed this dictionary to make even the trickiest logistics terms easy to understand — no prior experience required. If there’s a term you think we’re missing, feel free to send us a suggestion through our contact form. Let’s decode logistics together!

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

A

ABC Analysis

A classification of items in an inventory according to importance defined in terms of criteria such as sales volume and purchase volume.

Accessorial Charges

Additional fees charged by carriers for services beyond standard transportation, such as loading, unloading, or fuel surcharges.

Account Payable (A/P)

Money owed by a company to its creditors.

Account Receivable (A/R)

Money owed to a company by its customers.

Advance Shipping Notice (ASN)

A document sent to a customer to notify them of a pending shipment, providing details like item description and quantities.

All-Cargo Aircraft

An aircraft designed solely for transporting cargo rather than passengers.

Anticipated Stock

Inventory expected to be used or sold within a specific period.

ATA Carnet

An international customs document that allows the temporary importation of goods without paying duties.

Automated Guided Vehicle (AGV)

A portable robot that follows markers or wires in the floor, or uses vision or lasers, for navigation in warehouses.

B

Backhaul

The return journey of a transport vehicle to its point of origin, often carrying a new load.

Ballast

Material used to stabilize a ship or vehicle, often water or heavy substances.

Barcode

A machine-readable code representing data, typically used for tracking and identification.

Batch Production

A manufacturing process where goods are produced in groups or batches rather than in a continuous stream.

Bill of Lading (BOL)

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

Bonded Warehouse

A warehouse authorized by customs authorities for storing goods without the payment of duty until they are removed.

Break Bulk

Cargo that is transported in individual pieces rather than in containers or in bulk.

Buffer Inventory

Extra stock held to reduce the risk of stockouts caused by fluctuations in demand or supply chain delays.

Bunkering

The process of supplying a ship with fuel for its engines.

C

Cabotage

The transport of goods or passengers between two places within the same country by a foreign operator.

Carnet

An international customs document permitting the temporary importation of goods without duties or taxes.

Carrier

A company or individual responsible for transporting goods from one place to another.

Cold Chain

A temperature-controlled supply chain used to transport perishable goods, such as food and pharmaceuticals.

Commercial Invoice

A document issued by the seller to the buyer listing the goods, their value, and the terms of sale.

Consolidation

The process of combining multiple smaller shipments into one larger shipment to reduce costs.

Cross Docking

A logistics practice where products are directly transferred from inbound to outbound vehicles without intermediate storage.

Customs Duty

A tax imposed on goods when they are imported or exported.

Cycle Counting

A method of inventory auditing where a small subset of inventory is counted on any given day.

D

Dangerous Goods (DG)

Items requiring special handling due to their hazardous nature, such as chemicals or explosives.

Deadweight Tonnage (DWT)

The total weight a ship can safely carry, including cargo, fuel, and passengers.

Delivery Duty Paid (DDP)

A shipping term where the seller is responsible for all costs, including delivery and duties, until the goods reach the buyer.

Demurrage

A fee charged for cargo that remains at a port or terminal beyond the allowed free time.

Direct Shipment

A shipment sent directly from the supplier to the buyer without any intermediate handling.

Distribution Center (DC)

A facility used for the storage and distribution of goods.

Dock Receipt

A document issued by a shipping company acknowledging receipt of cargo for shipment.

Drop Shipping

A retail method where the seller does not keep goods in stock but instead transfers customer orders to a manufacturer or wholesaler who ships the goods directly.

Drayage

The transport of goods over a short distance, often as part of a longer overall move, typically associated with container shipping.

E

E-Commerce

The buying and selling of goods or services over the internet.

Electronic Data Interchange (EDI)

A system allowing the exchange of business documents in a standardized electronic format between companies.

Ex Works (EXW)

A trade term where the seller makes the goods available at their premises, and the buyer is responsible for all transportation costs.

Expedited Shipping

A faster delivery service than standard shipping, usually at an additional cost.

Export License

A government document that authorizes the export of specific goods in specific quantities to a particular destination.

Export Packing List

A detailed document itemizing the contents of a shipment.

Express Carrier

A company specializing in fast shipping services, often with a guaranteed delivery time.

Extra Freight

Additional costs incurred when cargo exceeds the agreed-upon terms.

End-to-End Visibility

The ability to track the entire journey of goods from origin to final destination.

F

Free on Board (FOB)

A shipping term indicating that the seller delivers goods on board a ship chosen by the buyer, with the buyer assuming all costs and risks from that point forward.

Freight Forwarder

An intermediary who arranges the logistics and transportation of goods on behalf of shippers, often consolidating shipments to optimize costs.

Full Container Load (FCL)

A shipment in which an entire container is used by one shipper, maximizing efficiency and reducing handling risks.

Free Trade Zone (FTZ)

A designated area where goods can be stored, handled, and manufactured without being subject to customs duties until they enter the domestic market.

Fuel Surcharge (FSC)

An additional charge applied to freight rates to account for fluctuations in the price of fuel.

Freight Bill

An invoice issued by the carrier to the shipper for the transportation services provided.

Freight Consolidation

The process of combining multiple smaller shipments into one larger shipment to improve shipping efficiency and reduce costs.

Freight Brokerage

A service provided by brokers who connect shippers with carriers, facilitating the transportation of goods.

Freight Class

A standardized classification system that determines the freight rate based on the weight, size, and nature of the shipment.

G

Gross Tonnage (GT)

A measure of the overall internal volume of a vessel, used to determine fees and regulations in maritime shipping.

Groupage

The consolidation of smaller shipments from multiple shippers into one container to optimize space and reduce costs.

Guaranteed Delivery

A service offering that ensures a shipment will arrive by a specific date, often with compensation provided for late delivery.

Goods in Transit

Merchandise that is currently being transported from one location to another.

Green Logistics

An approach to logistics that focuses on minimizing environmental impact through sustainable practices.

General Average

A maritime law principle where all parties in a sea voyage proportionally share any losses resulting from sacrifices made for the common good.

Ground Handling

Services provided to support the operations of aircraft while on the ground, including the loading and unloading of cargo.

Gross Weight

The total weight of a shipment, including the weight of the packaging and the goods themselves.

Gatekeeping

The process of controlling the flow of information or goods at a specific point in the supply chain to ensure compliance with standards.

H

Harmonized System (HS) Code

An internationally standardized system of names and numbers used to classify traded products, aiding in customs clearance.

Hazardous Material (HAZMAT)

Any item or agent (biological, chemical, radiological, or physical) that poses a risk to health, safety, or the environment.

Heavy Lift

Cargo that is too heavy for standard handling equipment, requiring specialized lifting gear and procedures.

Hub-and-Spoke

A distribution model where goods are transported to a central hub and then distributed to various destinations, improving efficiency.

Haulage

The commercial transport of goods by road or rail, typically over longer distances.

High Cube Container

A shipping container that is taller than standard containers, providing additional capacity for oversized goods.

House Air Waybill (HAWB)

A document issued by a freight forwarder that serves as a receipt for goods and a contract for transportation, often used in air freight.

Holding Cost

The cost associated with storing unsold goods, including expenses like warehousing, insurance, and potential obsolescence.

Hinterland

The region surrounding a port or distribution center from which goods are collected and distributed.

I

Incoterms

A set of international rules that define the responsibilities of buyers and sellers in the delivery of goods, clarifying when and where the transfer of risk occurs.

Inbound Logistics

The process of managing the transportation and storage of incoming goods from suppliers to the production facility or warehouse.

Intermodal Transport

The use of two or more modes of transport (e.g., rail, ship, truck) to move goods from origin to destination, typically involving containerized cargo..

Inventory Management

The process of overseeing the ordering, storing, and use of a company’s inventory, ensuring that stock levels meet customer demand without overstocking.

Invoice

A document issued by the seller to the buyer listing the goods, their value, and the terms of sale.

Inland Carrier

A transportation company that handles the domestic portion of a shipment’s journey, typically by road or rail.

Insurance Certificate

A document that provides evidence that a shipment is covered by insurance, protecting against loss or damage during transit.

Import Quota

A government-imposed limit on the amount or value of a particular product that can be imported into a country over a specified period.

Interline Shipping

The transfer of goods between different carriers during transit, often necessary for international shipments.

J

Just-In-Time (JIT)

A strategy that aims to increase efficiency by receiving goods only as they are needed in the production process, minimizing inventory costs.

Joint Rate

A transportation rate agreed upon by two or more carriers who collaborate to move a shipment over a route that involves multiple modes or legs.

Jettison

The act of throwing cargo overboard to lighten a ship in an emergency, often to protect the vessel or other goods.

Jet Cargo

Goods transported by jet aircraft, typically to expedite delivery for time-sensitive shipments.

Jurisdiction

The legal authority or control over a specific geographic area or subject matter, relevant in logistics for determining regulations and compliance.

Just-In-Case (JIC)

An inventory strategy where extra stock is kept on hand to mitigate the risk of stockouts, especially during unpredictable demand spikes.

Job Lot

A shipment consisting of assorted items or products, often sold as a single lot at a reduced price.

Joint Venture

A business arrangement where two or more parties agree to pool their resources for a specific project or operation, sharing risks and rewards.

Journey Management

The planning and monitoring of logistics journeys to ensure safety, efficiency, and compliance with regulations.

K

Key Performance Indicator (KPI)

A measurable value that demonstrates how effectively a company is achieving key business objectives, often used to gauge efficiency in logistics operations.

Knock Down (KD)

A shipping method where products are shipped disassembled to save on space and reduce transportation costs, with assembly occurring at the destination.

Kilogram (kg)

A unit of mass equal to 1,000 grams, commonly used in international shipping to measure and calculate freight costs.

Kingpin

A pivot point in the coupling mechanism between a tractor and trailer in trucking, crucial for maneuvering and load stability.

Kitting

The process of grouping individual items into a single package or kit to create a new SKU, often used in assembly or production lines.

K-Value

A coefficient used in freight rate calculations to account for variables like weight, distance, and volume, influencing overall shipping costs.

Kanban

A scheduling system for lean manufacturing and just-in-time inventory, visualizing work and controlling production at every stage.

Knockdown Container

A type of shipping container that can be disassembled for easier storage and transport, often used in modular or prefabricated constructions.

Keel

The central structural base of a ship, running along its bottom and supporting the framework, vital in maritime construction and stability.

L

Less than Container Load (LCL)

A shipment that does not fill a full container, allowing multiple shippers to share container space and reduce costs.

Letter of Credit (LC)

A letter issued by a bank guaranteeing that a buyer’s payment to a seller will be received on time and for the correct amount, ensuring transaction security.

Logistics Management

The part of supply chain management that plans, implements, and controls the efficient, effective forward, and reverse flow of goods, services, and information.

Lead Time

The amount of time that passes from the start of a process, such as ordering goods, until its completion, such as delivery to the customer.

Landed Cost

The total cost of a product delivered to a specific location, including the purchase price, shipping, duties, and taxes, offering a true cost perspective.

Load Factor

The ratio of cargo weight to the total available capacity of a transport vehicle, used to assess efficiency and cost-effectiveness in shipping.

Logistics Service Provider (LSP)

A company offering logistics services such as transportation, warehousing, and distribution, helping businesses manage supply chains more effectively.

Less than Truckload (LTL)

A shipping option for small freight shipments that do not require a full truck, with goods from multiple shippers combined into one load.

Line-Haul

The movement of freight between major cities or hubs, typically long-distance transport by road, rail, or air.

M

Manifest

A document listing all cargo carried on a ship, plane, or vehicle, used for tracking and regulatory purposes during transportation.

Marine Insurance

Insurance covering loss or damage of goods transported by sea, providing protection against marine perils like sinking or theft.

Material Handling

The movement, protection, storage, and control of materials and products throughout manufacturing, warehousing, distribution, and disposal processes.

Minimum Order Quantity (MOQ)

The smallest amount of product that a supplier is willing to sell, often used to ensure cost-effectiveness in production and shipping.

Maritime Law

The body of law governing nautical issues and private maritime disputes, including shipping contracts, marine navigation, and offenses occurring on open water.

Mode of Transport

The method by which goods are transported, such as by air, sea, rail, or road, each with different advantages depending on cost, speed, and cargo type.

Milk Run

A delivery method that involves picking up or delivering goods from/to multiple locations in one trip, optimizing route efficiency and reducing costs.

Mixed Cargo

A shipment containing different types of goods, often from various shippers, consolidated to optimize space and reduce transportation costs.

Material Safety Data Sheet (MSDS)

A document providing safety information about materials such as chemicals, required for handling and transport to ensure compliance with safety regulations.

N

Net Weight

The weight of goods without any packaging or containers, used for calculating shipping costs and customs duties.

Non-Vessel Operating Common Carrier (NVOCC)

A company providing ocean shipping services without operating the vessels, acting as an intermediary between shippers and carriers.

Not Otherwise Specified (NOS)

A term used in tariffs or schedules indicating that a specific commodity is not separately listed or described, often leading to a generic classification.

Non-Conformance Report (NCR)

A document identifying and tracking a product or process that does not meet specified standards, used for quality control and corrective actions.

Nominal Capacity

The maximum designed capacity of a container or transport vehicle, not accounting for variables like load distribution or specific cargo characteristics.

Nesting

The practice of stacking goods or containers in a way that maximizes space efficiency, often used in packaging or warehousing to reduce costs.

Non-Delivery Report (NDR)

A notification generated when a shipment cannot be delivered, used for tracking and resolving delivery issues.

Net Tonnage

A measure of a ship’s cargo-carrying capacity, reflecting the total volume available for cargo, excluding the space occupied by the crew, machinery, and other non-cargo areas.

Next Flight Out (NFO)

A premium air freight service where cargo is placed on the next available flight, ensuring the fastest possible delivery time.

O

Ocean Freight

The cost and process of transporting goods by sea, typically involving large volumes of cargo shipped over long distances.

Order Fulfillment

The complete process from the time an order is placed until it is delivered to the customer, including picking, packing, shipping, and tracking.

Outsourcing

The practice of hiring external organizations to handle certain business functions or services, allowing companies to focus on core competencies.

Over-Dimensional Cargo

Cargo that exceeds the standard size or weight limits for transportation, requiring special handling and equipment.

Open Top Container

A shipping container with a removable roof, allowing for the transport of over-height cargo that cannot fit in standard containers.

Offshore Logistics

The management of supply chain operations for offshore industries like oil and gas, often involving specialized vessels and equipment.

On-Time Delivery (OTD)

A measure of the percentage of deliveries made on or before the scheduled time, used to assess the reliability and efficiency of logistics operations.

Order Lead Time

The time between when an order is placed and when it is received by the customer, critical for managing supply chain efficiency.

Overland Transport

The transportation of goods by road or rail, typically over long distances within a continent.

P

Packing List

A document that provides the details of the contents of a package, including weights, dimensions, and contents, used for customs clearance and inventory management.

Pallet

A flat transport structure that supports goods in a stable manner while being lifted by a forklift, pallet jack, or other handling equipment.

Per Diem

A daily allowance for expenses, often used in logistics for charges related to the use of containers or chassis beyond the free time allotted.

Pick and Pack

A process where goods are picked from storage and packed for shipment, commonly used in e-commerce and distribution centers.

Port of Discharge

The port where a shipment is unloaded from a vessel, marking the point where the carrier’s responsibility typically ends.

Proof of Delivery (POD)

A document signed by the recipient confirming the delivery of goods, often used to verify that the shipment was received in good condition.

Product Life Cycle

The stages a product goes through from development and introduction to growth, maturity, and decline, influencing logistics strategies at each stage.

Palletization

The process of placing goods onto pallets for easier handling and transportation, standardizing shipments to improve efficiency.

Private Carrier

A transportation provider that operates a fleet to transport its own goods, rather than offering services to the public.

Q

Quality Assurance (QA)

A way of preventing mistakes and defects in manufactured products and avoiding problems when delivering solutions or services to customers.

Quarantine

A state, period, or place of isolation for goods to prevent the spread of pests or diseases, often required for agricultural products or other sensitive materials.

Quick Response (QR)

A strategy used in retail to improve product availability while reducing inventory costs, leveraging real-time data to respond to consumer demand.

Quota

A government-imposed trade restriction that limits the number or value of goods that can be imported or exported during a specified period.

Queue Time

The time a product or process waits before being moved to the next stage of production, often used in manufacturing and logistics planning.

Quiet Zone

An area in a warehouse designated for tasks that require minimal noise and disturbance, often for high-value or fragile goods.

Quay

A structure on the shore of a harbor where ships may dock to load and unload cargo, essential for port operations.

Quality Control (QC)

The process of ensuring that products meet required specifications and standards, typically involving inspection and testing during and after production.

Quotation

An offer made by a supplier or carrier to provide goods or services at a specified price and terms, often used in procurement and contract negotiations.

R

Rail Freight

The transportation of goods via train, often used for bulk commodities or long-distance shipments, providing an efficient and cost-effective alternative to road transport.

Reverse Logistics

The process of moving goods from their final destination back to the manufacturer or supplier for return, repair, remanufacture, or recycling.

Roll-On/Roll-Off (Ro-Ro)

A method of shipping wheeled cargo that is driven on and off a ship, used for vehicles and other large items that can be moved on their own wheels.

Reefer Container

A refrigerated container used for transporting perishable goods that require temperature control, such as food or pharmaceuticals.

Route Optimization

The process of finding the most efficient routes for transportation to reduce costs and improve delivery times, often using software tools.

Raw Materials

The basic materials from which products are manufactured, often requiring careful management in the supply chain to ensure continuous production.

Radio Frequency Identification (RFID)

A technology used to automatically identify and track tags attached to objects using electromagnetic fields, widely used in inventory management.

Reorder Point

The inventory level at which a new order should be placed to avoid stockouts, critical for maintaining uninterrupted supply chains.

Risk Management

The process of identifying, assessing, and mitigating risks within the supply chain, including potential disruptions, delays, or losses.

S

Safety Stock

Extra inventory held to prevent stockouts caused by demand variability and supply delays, acting as a buffer to ensure smooth operations.

Seaway Bill

A document used in ocean freight transport that serves as a receipt for the cargo and a contract for transportation, similar to a bill of lading but without the need for original documentation for release.

Shipper

The person or company sending the goods, responsible for preparing and dispatching the shipment.

Supply Chain Management (SCM)

The management of the flow of goods and services, including all processes that transform raw materials into final products, and their distribution to the end user.

Stock Keeping Unit (SKU)

A unique identifier for each distinct product and service that can be purchased, critical for inventory management and tracking.

Short Sea Shipping

The movement of cargo by sea over relatively short distances, often within the same continent, providing an alternative to road or rail transport.

Sustainable Logistics

Logistics practices that seek to reduce environmental impact through efficient and eco-friendly processes, such as reducing carbon emissions and optimizing resource use.

Shipping Manifest

A document listing all the cargo on a vessel or vehicle, used for customs clearance and inventory management during transportation.

Slot Time

The reserved time slot allocated for a carrier or shipper to load or unload goods at a port or terminal, essential for managing congestion and ensuring smooth operations.

T

Tariff

A tax or duty imposed on imported or exported goods, used by governments to regulate trade and generate revenue.

Third-Party Logistics (3PL)

A company that provides outsourced logistics services to businesses, including transportation, warehousing, and distribution.

Tramp Shipping

The transportation of goods on ships that do not operate on a fixed schedule or published routes, typically used for bulk commodities.

Transshipment

The transfer of goods from one mode of transport to another during their journey to the final destination, often occurring at ports or hubs.

Transport Management System (TMS)

A software system designed to manage and optimize the transportation operations of a company, improving efficiency and reducing costs.

Terminal Handling Charges (THC)

Fees charged for the handling of containers at ports and terminals, covering activities such as loading, unloading, and storage.

Throughput

The rate at which goods are processed through a system or facility, often used to measure the efficiency of production or logistics operations.

Time Charter

A contract in which a ship is hired for a specific period rather than a specific voyage, with the charterer controlling the vessel during the charter period.

Tractor-Trailer

A combination of a truck (tractor) and a trailer used to transport goods over long distances, common in road freight transport.

U

Unit Load

A standard quantity or volume of material or product that is handled as a single unit in logistics, often using pallets or containers.

Uplift

An increase in quantity or price, often used in air freight to describe the additional weight or volume added to a shipment.

Utilization

The percentage of available capacity that is being used effectively in transportation or warehousing, reflecting efficiency.

Unloading Bay

A designated area where goods are unloaded from vehicles, critical for managing the flow of goods in warehouses or distribution centers.

Unitization

The consolidation of smaller units into larger units to improve handling efficiency, often used in packaging and shipping.

Under Bond

Goods stored under customs control without payment of duty until they are cleared for use, commonly used for imported goods awaiting clearance.

User Fee

A charge levied for the use of a particular service or facility, such as tolls, port fees, or freight charges, often used in transportation.

Ultimate Consignee

The final recipient of a shipment, typically the end user of the goods, responsible for receiving and possibly distributing the goods further.w

Unload Plan

A detailed plan for unloading goods from a vehicle or vessel, specifying the order and method of unloading to ensure efficiency and safety.

V

Value-Added Services (VAS)

Additional services offered by logistics providers, such as packaging, labeling, and assembly, that enhance the value of the core service.

Vendor Managed Inventory (VMI)

A supply chain practice where the supplier manages the inventory levels of their products at the customer’s location, improving stock availability and reducing costs.

Volumetric Weight

A pricing method for freight that considers both the weight and volume of a shipment, used when light goods take up a large amount of space.

Voyage Charter

A contract for the hire of a ship for a specific voyage, where the shipowner retains control of the vessel while the charterer uses it to transport goods.

Vessel Schedule

The planned timetable for the arrival and departure of a ship at various ports, essential for coordinating logistics and supply chain operations.

Variable Cost

Costs that vary depending on the level of output or activity, such as fuel costs in transportation, which fluctuate with distance and load.

Visibility

The ability to track the movement of goods throughout the supply chain, providing real-time information on the location and status of shipments.

Vendor Rating

The process of evaluating and ranking suppliers based on their performance and reliability, often used to ensure quality and efficiency in procurement.

Volume Rate

A freight rate applied to shipments that exceed a specified volume, offering cost savings for bulk shipments.

W

Warehouse Management System (WMS)

A software application that helps manage the operations of a warehouse or distribution center, including inventory management, picking, and shipping.

Waybill

A document issued by a carrier giving details and instructions for the shipment of goods, used as a receipt and a contract for transportation.

Wharfage

A fee charged for the use of a wharf or quay for the loading or unloading of goods from a ship, typically levied by port authorities.

Warehouse Receipt

A document that provides proof of ownership of commodities stored in a warehouse, often used as collateral for loans.

Warehouse Bond

A bond filed with customs to guarantee the payment of duties on goods stored in a bonded warehouse, ensuring compliance with regulations.

Weight Break

The shipment weight at which the freight rate changes, typically reflecting a lower cost per unit as the shipment size increases.

Work in Progress (WIP)

Goods that are in the process of being manufactured but are not yet completed, critical for managing production and inventory.

Wholesaler

A person or company that sells goods in large quantities at lower prices, typically to retailers or other businesses rather than to end consumers.

Waste Management

The process of handling, transporting, and disposing of waste materials, particularly important in logistics for minimizing environmental impact.

X

X-Ray Cargo Inspection

A security measure used to inspect the contents of cargo without opening it, commonly used in air and sea freight to detect prohibited items.

XML (eXtensible Markup Language)

A flexible text format used in data exchange between systems in logistics, allowing for the standardization of data across different platforms.

X Docking

A logistics method where incoming products are sorted and directly transferred to outbound vehicles with little or no storage in between, improving efficiency.

X Axis

In logistics, often refers to the horizontal movement of goods, typically associated with processes like transportation or distribution.

X Factory

A term indicating that goods are ready for pickup at the manufacturer’s factory, with the buyer responsible for all subsequent transportation costs.

X Logistics

A term sometimes used to denote specialized logistics services, often within a specific sector or region.

X Work

Refers to conditions where the buyer is responsible for transportation, insurance, and any other costs beyond the seller’s factory.

X Dock

A process in which products from multiple suppliers are received and quickly consolidated for shipping without being stored in a warehouse.

X-Ray Screening

The process of scanning cargo or packages using X-ray technology to detect hidden objects, critical for security in logistics.

Y

Yield Management

A strategy used to maximize revenue by adjusting prices based on demand and capacity, often used in transportation and warehousing.

Yellow Card

A notice issued by customs to indicate that a shipment requires additional inspection or documentation, typically used in international trade.

Yard Management

The process of managing the movement and storage of vehicles and trailers in a yard or terminal, critical for coordinating inbound and outbound logistics.

Yard Mule

A vehicle used for moving trailers around within a terminal or yard, essential for efficient loading and unloading operations.

Yard Jockey

An individual who operates the yard mule to move trailers around the yard, facilitating the flow of goods in logistics facilities.

Year-to-Date (YTD)

A financial term indicating the period starting from the beginning of the current year to the present date, used to measure performance.

Yield

The efficiency of a process or operation, typically measured as the ratio of output to input, important for assessing logistics productivity.

Yard Spotter

Another term for Yard Jockey, responsible for moving trailers within a facility, ensuring smooth operations in logistics yards.

Yield Rate

The percentage of items that meet quality standards out of the total produced, used in manufacturing and logistics to assess efficiency.

Z

Zone Picking

A method of order picking where the warehouse is divided into zones, and workers pick items within their assigned zones, improving efficiency and reducing errors.

Zero Inventory

A strategy in supply chain management where inventory levels are kept as low as possible, relying on Just-In-Time (JIT) delivery to meet demand.

Zone Skipping

A logistics strategy where packages are transported directly to a parcel carrier’s regional hub, bypassing intermediate stops, reducing transit time and cost.

Zonal Pricing

A pricing strategy where shipping costs are determined by the distance between the origin and destination within predefined zones, offering consistency and predictability in costs.

Z-Score

A statistical measurement of a value’s relationship to the mean of a group of values, sometimes used in logistics for analyzing demand variability.

Z-Index

In logistics, may refer to the prioritization level in a warehouse management system (WMS) for picking or replenishing inventory.

Zonal Distribution

A distribution method where goods are allocated to different zones based on demand and logistical considerations, optimizing resource allocation.

Zero Defects

A quality management concept aimed at eliminating defects in processes by focusing on prevention, efficiency, and customer satisfaction. The goal is to deliver flawless results while reducing waste and ensuring high standards.

Find the most common terms in the logistics industry on this page.

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