Supply Chain Glossary & Logistics Terminology

A digital device used by truck drivers to automatically track driving hours and ensure compliance with federal regulations related to rest and work periods.

Mandatory and voluntary frameworks for disclosing environmental, social, and governance performance metrics in supply chain operations.

Processing data near its source to enable faster decision-making and reduce latency in supply chain operations.

A restriction or ban on the shipment of goods to or from a specific location or country, often imposed by governments for political or economic reasons.

An international trade term where the buyer is responsible for all costs and risks from the seller’s premises, including transportation, insurance, and export duties.

A faster shipping service that ensures goods are delivered within a shorter time frame, often for an additional fee, compared to standard delivery options.

A shipping classification where different types of goods are consolidated into a single shipment at a flat rate, without distinguishing between individual product types.

A shipping method where an entire container is reserved for one customer’s cargo, maximizing efficiency and minimizing handling by filling the container with one load.

An inventory management method where the oldest stock is sold or used first, ensuring that products with shorter shelf lives are prioritized over newer stock.

A U.S. government agency that regulates the international ocean transportation system, ensuring a competitive, reliable, and fair marketplace for shippers and carriers.

An international trade term where the seller is responsible for loading the goods onto a shipping vessel, but the buyer assumes responsibility and risk once the goods are aboard.

A type of shipping container with open sides and no roof, used for transporting oversized cargo that cannot fit into standard enclosed containers.

A large, flexible liquid storage tank that can be inserted into a standard container, allowing the transport of bulk liquids, such as wine or oil, without specialized tankers.

The process of reviewing and verifying freight invoices for accuracy before payment, ensuring that carriers are paid correctly according to contractual terms.

An invoice provided by a carrier to a shipper, detailing the cost and services associated with transporting goods, used for billing and payment purposes.

A third party that arranges transportation services between shippers and carriers, negotiating rates and managing logistics without owning the transportation assets.

The industry and practice of matching shippers with carriers through freight brokers, facilitating the movement of goods across various transportation modes.

A standardized classification system used to determine shipping costs based on factors like weight, size, density, and handling requirements of the cargo.

The practice of combining multiple smaller shipments into a single, larger shipment to optimize transportation costs and efficiency, particularly for long-distance shipping.

Services that combine multiple small shipments from different shippers into a single load, reducing costs and improving efficiency for long-haul transportation.

A company that arranges the movement of goods on behalf of a shipper, coordinating various carriers and ensuring compliance with customs and other regulations.

The evaluation and optimization of freight forwarding processes to improve efficiency, reduce costs, and ensure the timely delivery of goods across international borders.

A shipping method where a truck is fully loaded with one customer's goods, offering direct transport without stopping for multiple deliveries along the route.

The use of GPS technology to monitor the location of vehicles or shipments in real time, improving visibility and efficiency in transportation logistics.

Global standards for business communication, including barcodes, electronic data interchange, and product identification systems.

A large crane used in ports and rail yards to lift and move heavy containers between ships, trains, and trucks, facilitating the loading and unloading process.

A maritime law principle where all parties in a shipping venture share the costs incurred to protect the cargo during an emergency, such as jettisoning cargo to save a vessel.

The evaluation of political, economic, and social risks in different geographic regions that could impact supply chain operations and strategy.

A satellite-based navigation system that provides real-time location tracking for vehicles, enabling accurate route planning and monitoring in logistics.

The process of managing international trade activities, including compliance with regulations, tariffs, and documentation, to ensure smooth cross-border logistics.

The total weight of a vehicle, including its cargo, passengers, and fuel, used to determine compliance with weight regulations for safe road transport.

The total weight of a shipment, including the packaging and the goods themselves, used to calculate shipping costs and ensure compliance with weight limits.

An internationally standardized numerical system used to classify traded products, ensuring uniform customs procedures and accurate tariff applications.

Substances that pose a risk to health, safety, or the environment during transportation, requiring special handling, packaging, and documentation for safe shipping.

A shipping container that is one foot taller than standard containers, offering more internal space for large or bulky cargo that requires additional height.

A central location or facility where shipments are collected, sorted, and distributed to various destinations, commonly used in logistics networks to streamline operations.

Combination of multiple technologies (AI, ML, RPA) to automate complex supply chain processes.

A standard for business continuity management systems, helping organizations prevent, prepare for, respond to, and recover from disruptive incidents.

An international standard that specifies requirements for a security management system in the supply chain, ensuring safety and reliability of operations.

A standardized shipping container that meets International Organization for Standardization (ISO) specifications, ensuring compatibility across different transportation modes.

A legal authorization required by some countries to bring goods into the country, ensuring compliance with regulations and payment of necessary duties or taxes.

A set of international trade terms defining the responsibilities of buyers and sellers for the delivery of goods, including cost and risk distribution in shipping.

A company that arranges air freight transportation for goods but does not operate aircraft, typically working with airlines to ship cargo on behalf of customers.

A transportation company that moves goods by road or rail within a country, often linking ports or borders to final destinations or distribution centers.

A shipping arrangement where multiple carriers work together to move goods across different regions or modes of transport, sharing the responsibility for delivery.

The use of multiple modes of transportation, such as rail, truck, and ship, to move goods from origin to destination, optimizing cost and efficiency.

The total cost of holding inventory, including capital costs, storage space, insurance, taxes, and risk of obsolescence.

The process of overseeing and controlling the flow of goods in and out of warehouses, ensuring adequate stock levels to meet demand without overstocking.

Technologies and systems designed to track and manage inventory levels, orders, and deliveries, helping businesses optimize stock and reduce costs.

The network of connected devices used in logistics for tracking, monitoring, and managing operations.

A supply chain strategy that aligns production and inventory levels closely with customer demand, reducing waste and minimizing storage costs by receiving goods only as needed.

An extension of JIT that involves suppliers being present on-site to manage inventory, fostering closer relationships and enhancing the efficiency of inventory management processes.

A large trailer designed for transporting oversized cargo, featuring increased height and length to accommodate larger shipments compared to standard trailers.

Metrics used to evaluate the success of logistics operations and track progress toward business goals.

A visual scheduling system that helps manage workflow by using cards or signals to indicate when to reorder or produce items, promoting efficiency and reducing excess inventory.

A shipping method that involves using lighter vessels to transport cargo between ports, allowing larger vessels to carry more containers by reducing the weight of their load.

A shipping option where multiple shipments from different customers are consolidated into a single container, making it cost-effective for smaller loads.

Software used to track and optimize warehouse workforce productivity and performance.

The cargo or goods that are being transported on a shipping vehicle, as well as the terms and conditions under which those goods are shipped.

The final step in the delivery process where goods are transported from a distribution center to the end customer, often characterized by challenges related to speed and efficiency.

Services and technologies designed to improve the efficiency and effectiveness of last-mile delivery, including route optimization, tracking, and customer communication tools.

The total time required from initiating a process until its completion, including production, transportation, and any waiting periods before delivery.

A methodology aimed at minimizing waste and maximizing value in the logistics process, focusing on efficient resource use and continuous improvement in operations.

A shipping method used for smaller freight shipments that do not fill an entire truck, allowing multiple shipments from different customers to share space.

The movement of freight between two points, typically over long distances, using trucks or other vehicles, focusing on transportation efficiency in the logistics network.

An online platform that connects shippers with carriers, allowing them to post available loads and transportation needs for efficient freight matching.

A measure of the efficiency of a transport service, calculated by dividing the actual load carried by the maximum load capacity, indicating how well resources are utilized.

The process of efficiently arranging cargo in transportation vehicles to maximize space, minimize costs, and ensure safe transport of goods.

The planning, execution, and management of the flow of goods, services, and information from point of origin to the final customer, ensuring timely delivery.

The continuous process of improving logistics operations to enhance efficiency, reduce costs, and improve service levels through data analysis and technology.

A third-party company that offers a range of logistics services, including transportation, warehousing, and distribution, to businesses needing support in supply chain management.

A production planning and inventory control system that helps businesses manage manufacturing processes by determining material requirements based on demand forecasts.

The application of ML algorithms to improve logistics decision-making and process automation.

A logistics solution where a provider manages a company's transportation functions, including carrier selection, route optimization, and cost management, improving efficiency.

A detailed list of all cargo loaded on a transport vehicle, used for documentation and tracking purposes during shipping and delivery.

A manufacturing facility in Mexico that imports raw materials on a duty-free basis, assembles or processes them, and exports the finished goods, often located near the U.S. border.

A specialized area of law governing maritime activities and commerce, including shipping, navigation, and marine commerce, ensuring legal protection and regulation at sea.

The transportation of goods by sea, utilizing ships to move cargo between ports, which plays a vital role in international trade and logistics.

A transportation route where a vehicle makes multiple stops to pick up goods from various suppliers and deliver them to a single customer, optimizing logistics efficiency.

The process of analyzing and selecting the most effective transportation mode or combination of modes for shipping goods, considering cost, speed, and service levels.

The use of more than one mode of transportation (e.g., truck, rail, ship) to move goods from origin to destination, optimizing efficiency and cost in logistics.

Comprehensive logistics services that integrate various modes of transportation, facilitating efficient and cost-effective movement of goods across regions.

Non-fungible tokens used to create unique digital identifiers for products, ensuring authenticity and traceability throughout the supply chain.

The practice of relocating business operations closer to the target market, often to nearby countries, to reduce costs, improve efficiency, and enhance supply chain responsiveness.

The process of creating a mathematical model to analyze and optimize logistics networks, including routes, facilities, and transportation options for efficiency.

A company that provides ocean freight services but does not own or operate ships, acting as an intermediary between shippers and shipping lines.

A legal document issued by a carrier to a shipper, outlining the details of the shipment, including the type of cargo, destination, and terms of transportation.

The transportation of goods by sea, typically involving large quantities of cargo moved in containers, playing a crucial role in global trade and logistics.

The relocation of business processes or production to a different country, often to reduce costs or access new markets, impacting logistics and supply chain strategies.

A retail strategy that provides customers with multiple purchasing channels (e.g., online, in-store) while ensuring a seamless experience across all platforms.

A flexible logistics solution that provides immediate transportation services based on customer requests, often using technology to connect shippers and carriers quickly.

The process of reviewing logistics operations to identify inefficiencies and implement improvements, aiming to optimize performance and reduce costs.

The complete process from receiving an order to delivering it to the customer.

The processes involved in transporting finished goods from a company to customers, including warehousing, inventory management, and distribution.

The practice of contracting a third party to manage a company's transportation fleet, including vehicle maintenance, routing, and driver management.

A term used to describe long-distance trucking operations where goods are transported by road over significant distances, often involving multiple stops.

The logistics operations that involve collecting goods from a location and delivering them to a specified destination, essential for effective supply chain management.

A document signed by the recipient upon receiving goods, serving as confirmation of delivery and often used for tracking and resolving disputes.

A flat, portable platform used for storing and transporting goods, typically made of wood, plastic, or metal, allowing for efficient handling with forklifts.

A manual or powered device used to lift and move pallets, facilitating the handling and transportation of goods in warehouses and shipping areas.