Logistics Glossary

The return trip of a transportation vehicle after delivering its primary load, often used to carry additional freight to reduce empty miles and improve efficiency.

A legal document issued by a carrier to a shipper acknowledging receipt of goods for transport, serving as a receipt, contract of carriage, and document of title.

The phenomenon where small fluctuations in consumer demand amplify into increasingly larger inventory swings as orders move upstream through the supply chain.

The total expense of holding inventory over a period, including warehousing, insurance, depreciation, spoilage, and the opportunity cost of capital tied up in stock.

A temperature-controlled supply chain used for perishable goods such as food, pharmaceuticals, and biologics, requiring refrigerated storage and transport.

Combining multiple smaller shipments into a single larger shipment to achieve lower per-unit transportation costs and improve efficiency.

A logistics technique where products from incoming shipments are sorted and loaded directly onto outbound vehicles with minimal or no intermediate storage.

The movement of a transportation vehicle without cargo, resulting in wasted fuel and driver time. Logistics managers seek to minimize deadheading through backhaul planning.

The process of estimating future customer demand using historical sales data, statistical methods, and market intelligence to guide inventory and logistics planning.

A specialized warehouse focused on receiving, sorting, and redistributing goods to retail locations or directly to customers, rather than long-term storage.

A retail fulfillment method where the retailer does not stock products but instead transfers customer orders to a third party who ships directly to the buyer.

A formula-based approach to determine the optimal order size that minimizes the sum of ordering costs and inventory holding costs.

A service in which a company arranges the shipment of goods on behalf of exporters or importers, handling documentation, carrier selection, and customs clearance.

A facility focused on processing and shipping individual customer orders, typically associated with e-commerce operations and designed for high-speed order picking and packing.

Practices and strategies aimed at reducing the environmental impact of logistics operations through sustainable transportation, packaging, and warehouse energy efficiency.

Standardized international commercial terms published by the ICC that define the responsibilities of buyers and sellers regarding costs, risks, and logistics obligations.

The use of two or more transportation modes in sequence to move freight, often using standardized containers that can be transferred between ships, trains, and trucks.

A production and inventory strategy where materials are ordered and received only as they are needed, reducing inventory holding costs and waste.

The final transportation leg delivering a product from a distribution hub to the end consumer's location, often the most costly and logistically challenging segment.

The total elapsed time between placing an order and receiving the goods, encompassing order processing, manufacturing, transportation, and receiving.

A shipping method for freight that does not require the full capacity of a truck, where multiple shippers share space on a single vehicle to reduce costs.

The process of planning and executing the movement of goods from the consumer back to the origin for returns, recycling, refurbishment, or disposal.

Buffer inventory held to protect against uncertainty in demand or supply lead time, ensuring product availability despite variability.

The holistic coordination of all activities involved in sourcing, procurement, conversion, and logistics management across the entire value chain from suppliers to customers.

Software that directs and optimizes all warehouse processes including receiving, storage, picking, packing, and shipping, using real-time inventory tracking.