Supply Chain Glossary & Logistics Terminology

3PL (Third-Party Logistics): A service where a company outsources logistics operations like transportation, warehousing, and distribution to an external provider to streamline its supply chain.

4PL (Fourth-Party Logistics): A company that manages all parts of the supply chain for a business, working with 3PL providers (who handle transportation and warehousing). Unlike 3PLs, 4PLs don’t own any trucks or warehouses but act as the main organizer to oversee everything.

Implementation of 5G networks to enable faster, more reliable supply chain communications and IoT connectivity.

A set of protocols and tools that allow different software applications to communicate with each other, essential for modern logistics and supply chain management.

Ecosystem of APIs enabling seamless integration between different supply chain systems and partners.

Extra fees added by carriers for services beyond standard shipping, such as liftgate service, inside delivery, storage, or fuel surcharges. These charges cover additional tasks required to complete a shipment, often customized to meet specific delivery needs.

A software-based system that helps businesses plan production and logistics, aligning manufacturing schedules with distribution needs to optimize supply chain efficiency.

An electronic notification sent by a supplier to a buyer before a shipment, providing details about the contents, packaging, and expected delivery time of the goods.

The combination of several smaller shipments into one larger shipment to reduce shipping costs and improve delivery efficiency by maximizing cargo space.

The transportation of goods by air, often used for high-value or time-sensitive shipments that require faster delivery than sea or ground transport.

A legal document issued by an airline to a shipper, outlining the details of an air freight shipment, including terms, conditions, and a receipt for the goods.

Comprehensive insurance coverage that protects goods in transit from any kind of loss or damage, except for specific exclusions like war or natural disasters.

The use of AI technologies to optimize logistics operations, including predictive maintenance, route optimization, and demand forecasting.

A transportation provider that owns and operates its own fleet of vehicles, such as trucks, planes, or ships, as opposed to non-asset-based carriers who contract with others.

Use of AR technology to enhance warehouse operations, picking, and maintenance activities.

A self-operating robot used in warehouses or manufacturing to move materials without human intervention, typically following markers or sensors for navigation.

The return trip of a transport vehicle after delivering goods, often carrying another shipment to avoid an empty return and improve cost efficiency.

A flat-bottomed vessel used to transport bulk goods, typically on inland waterways like rivers and canals, often used for large, heavy cargo.

A warehouse picking method where multiple orders are gathered simultaneously to improve efficiency and reduce travel time.

A legal document submitted to customs by importers to declare the goods being brought into the country, providing details like value, quantity, and description.

A legal contract between a shipper and a carrier, detailing the goods being transported, terms of shipment, and serving as a receipt for the cargo.

The use of blockchain technology to improve transparency and security in logistics by creating a decentralized digital ledger for tracking shipments and transactions.

The use of distributed ledger technology to track and verify transactions and movements throughout the supply chain, enhancing transparency and security.

A secure warehouse under customs supervision where imported goods can be stored without paying duties until they are moved for domestic use or export.

The process of transporting cargo individually, rather than in containers, typically for large, heavy, or oversized goods that can't fit in standard containers.

Unpackaged goods shipped in large quantities, such as grain, coal, or oil, typically loaded directly into a vessel’s cargo hold without individual containers.

A type of ship designed specifically to transport large quantities of unpackaged bulk cargo, such as grain, coal, or oil, in its cargo holds.

The process of creating systems of prevention and recovery to deal with potential supply chain disruptions, including disaster recovery and crisis management.

A U.S. Customs program where companies voluntarily work to improve their supply chain security, in exchange for reduced customs inspections and faster border clearance.

A facility where cargo is loaded or unloaded from shipping containers, often used to consolidate or deconsolidate shipments before further transport.

An international trade term where the seller covers the cost, insurance, and freight to deliver goods to the buyer’s nearest port, with the buyer responsible from there.

A type of rail transport where shipping containers are loaded directly onto flat railcars, allowing for seamless transfer between different transportation modes.

The transport of goods or passengers between two places in the same country by a foreign-registered vehicle or vessel, usually subject to regulations.

The maximum amount of goods a transportation vehicle or warehouse can hold, or the amount of freight a carrier can transport at one time.

The process of planning and controlling a company's transportation or storage capacity to meet demand efficiently, ensuring optimal use of resources.

The systematic tracking and quantification of greenhouse gas emissions throughout the supply chain, including direct operations and indirect emissions from suppliers and logistics.

Goods or merchandise being transported by ship, airplane, truck, or another mode of transport, typically for commercial trade or business purposes.

Insurance that covers the loss or damage of cargo while it is in transit, protecting the shipper or receiver from financial loss.

Measures and procedures implemented to protect cargo from theft, damage, or tampering during transportation, ensuring the safe and secure delivery of goods.

A company or individual responsible for transporting goods by land, sea, or air, often contracted by shippers to move cargo from origin to destination.

The legal responsibility of a carrier for any loss, damage, or delay of goods during transit, often limited by contractual agreements or industry regulations.

The process of selecting and managing transportation carriers to ensure they meet service requirements, cost expectations, and compliance with logistics needs.

The local transport of goods over short distances, often within the same city or region, typically involving small trucks or vans.

A wheeled frame used to transport shipping containers over short distances, typically within ports or between nearby locations.

A wedge or block placed against a vehicle’s wheels to prevent it from moving accidentally, ensuring stability during loading, unloading, or parking.

A supply chain model designed to eliminate waste and maximize resource use through continuous recycling, reuse, and remanufacturing of materials and products.

Software applications built specifically for cloud computing architecture, enabling scalable supply chain solutions.

Supply chain systems that use AI and ML to learn, adapt, and make autonomous decisions.

A temperature-controlled supply chain used for perishable goods, ensuring proper handling and storage from origin to destination.

A supply chain practice where partners share information to improve demand forecasting, production planning, and inventory replenishment, enhancing overall efficiency.

The process of ensuring that a company’s logistics operations adhere to legal and regulatory requirements, including safety, environmental, and industry standards.

Protocols used in blockchain to validate and verify transactions across the supply chain network, ensuring data integrity.

The individual or business that is the recipient of goods in a shipment, to whom the carrier will deliver the goods.

The individual or business that sends goods via a carrier, responsible for arranging the shipment and completing the necessary documentation.

A billing method where multiple shipments are combined into a single invoice, simplifying the payment process for customers who have frequent or regular shipments.

A large, standardized metal box used to transport goods securely across various modes of transport, including ships, trucks, and trains.

A facility at a port or inland location where containers are transferred between ships, trucks, and trains, or stored temporarily during transit.

Ongoing efforts within a business to enhance processes, products, or services, often through regular feedback, data analysis, and performance reviews.

The process of discussing and agreeing on terms, rates, and service levels between two or more parties in logistics or transportation agreements.

An assessment of all costs involved in serving a customer or market, including transportation, storage, and handling, to determine profitability and efficiency.

Trade where goods are transported directly between two foreign countries, bypassing the exporter’s home country, often to streamline supply chains.

The management and coordination of the movement of goods across international borders, ensuring compliance with customs, taxes, and regulations.

A logistics process where incoming goods are unloaded from one transport vehicle and directly loaded onto another, minimizing storage time in a warehouse.

A financial guarantee ensuring payment of duties and taxes to customs authorities, required for importing goods.

A professional or company that assists importers and exporters in clearing goods through customs, ensuring compliance with regulations and handling necessary documentation.

Services provided by customs brokers to help importers and exporters navigate customs processes, including filing paperwork, paying duties, and ensuring regulatory compliance.

The process of gaining approval from customs authorities to import or export goods, involving documentation, inspections, and payment of taxes or duties.

A tax imposed on goods imported into a country, usually based on the value, weight, or quantity of the goods, paid by the importer.

Materials that pose a risk to health, safety, or the environment during transportation, such as chemicals, explosives, or radioactive materials, requiring special handling.

A device that records and stores environmental data, such as temperature or humidity, during the transportation of sensitive goods to ensure they remain within safe limits.

The movement of a transportation vehicle without any cargo, typically on the return trip after delivering a shipment or when traveling to pick up new cargo.

Blockchain-based financial services for supply chain transactions, including trade finance and payments.

A logistics service where a carrier provides vehicles and drivers exclusively for one customer’s use, often under a long-term contract for consistent service.

The operation and oversight of a fleet of vehicles reserved for a single business, ensuring efficient transportation and handling of that company’s shipments.

Transportation services provided exclusively for one customer’s shipments, often ensuring priority handling, specific routes, or tailored delivery schedules.

A document issued by a consignee or freight forwarder that authorizes a carrier or terminal operator to release goods to a specific party at the delivery point.

The process of forecasting customer demand to optimize inventory levels and production scheduling.

A fee charged when cargo remains at a terminal or on a vehicle longer than the free time allowed, typically applied to containers awaiting pickup or delivery.

A charge incurred when trucks or containers are delayed beyond the scheduled loading or unloading time, compensating carriers for lost time and availability.

Advanced visualization and decision-making center providing real-time supply chain visibility and analytics.

Advanced digital replica of the physical supply chain used for real-time monitoring, simulation, and optimization.

Evolution of linear supply chain into dynamic, interconnected systems using digital technologies.

Connected flow of data throughout the product lifecycle and supply chain.

A virtual representation of physical logistics operations used for simulation and optimization.

The process of assigning and sending out vehicles or freight to specific destinations, often involving route planning and scheduling to ensure timely delivery.

A decentralized database shared across multiple locations in the supply chain, providing transparent and immutable record-keeping.

A system that optimizes order fulfillment across multiple locations and channels.

A warehouse where goods are stored, sorted, and distributed to retailers or customers, often serving as a hub for fulfilling orders efficiently.

The interconnected system of warehouses, transportation routes, and retail locations that ensure goods move from manufacturers

A company’s plan for efficiently delivering goods to customers, including decisions about transportation modes, warehouse locations, and delivery schedules.

A mechanical device used at a loading dock to bridge the gap between a truck and the dock, ensuring smooth and safe loading or unloading.

A document issued by a shipping company or terminal operator acknowledging receipt of cargo for shipment, typically used as a proof of delivery to the port.

A type of freight train that carries two containers stacked on top of each other, maximizing space and reducing transportation costs.

The short-distance transport of goods, often from a port to a nearby warehouse or distribution center, typically involving containerized freight.

A logistics service where a carrier leaves a trailer at a shipper’s or receiver’s location for loading or unloading, allowing more flexible scheduling for both parties.

A standard, enclosed trailer used for transporting general cargo that doesn’t require temperature control, protecting goods from the elements.

A financing solution that allows suppliers to receive early payments in exchange for a discount, with the discount rate varying based on payment timing.

The process of managing the storage, transportation, and delivery of goods purchased through online platforms, ensuring timely and accurate fulfillment of customer orders.

Tactics and methods used to optimize the movement of goods in e-commerce, including efficient warehousing, inventory management, fast shipping, and returns handling.

A technology that allows businesses to exchange standardized electronic documents, such as purchase orders and invoices, between systems, reducing manual entry and errors.