Shipping and Logistics Glossary

Welcome to our Logistics Glossary!

This resource is designed to help you navigate key logistics terms and concepts, making it easier to understand and engage with our services. Whether you’re new to 3PL or an experienced professional, our glossary provides clear definitions to enhance your logistics knowledge and improve your supply chain operations. Explore the terms below, and feel free to reach out if you have any questions!

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

  • Accessorial Charges: Additional fees that may apply to shipments for services beyond the basic transportation cost, such as unloading, storage, or waiting time.
  • Accessorial Fees: Fees added for services such as lift gate usage, additional handling, or delivery notifications.
  • Accountability: The responsibility of a 3PL provider to ensure the accuracy, timeliness, and quality of services rendered.
  • After-Hours Delivery: A shipping service where goods are delivered outside regular business hours, often subject to additional fees.
  • Agency: A business that represents the interests of a 3PL provider, often dealing with the documentation or negotiation of contracts for shipping.
  • Air Freight: The transport of goods by air, typically faster but more expensive than ground transportation.
  • All-Risk Insurance: A type of cargo insurance that covers the goods against all risks except those specifically excluded in the policy.
  • Asset-Based 3PL: A third-party logistics provider that owns and operates the assets involved in transportation, such as warehouses or trucks.
  • Audit: The process of reviewing shipping costs, invoices, and documentation to ensure compliance and accuracy.
  • Automated Data Collection (ADC): The use of technology to collect data on inventory, shipments, or operations without manual input, often through barcode scanning or RFID.

B

  • Backhaul: The return trip made by a freight carrier after delivering goods to a destination, often used to maximize carrier efficiency.
  • Barcoding: A system of using barcodes to identify products, allowing for quicker processing and tracking in the supply chain.
  • Bill of Lading (BOL): A legally binding document between a shipper and a carrier that outlines the details of a shipment, including the type, quantity, and destination of goods.
  • Bill of Lading Types: Different types of BOL, such as straight, negotiable, or sea waybill, each serving a specific purpose for different shipping methods.
  • Bonded Warehouse: A warehouse authorized by the government to store goods that are not yet cleared by customs, allowing for deferred payment of duties.
  • Breakbulk Shipping: A method of transporting large, heavy items that do not fit into containers, typically used for industrial machinery, construction equipment, etc.
  • Broker: A third-party intermediary between a shipper and a carrier who arranges transportation services, usually for less-than-truckload (LTL) shipments.
  • Bulk Shipping: Shipping of large quantities of goods that are not packaged in individual containers, often used for bulk commodities like grain or chemicals.

C

  • Cargo Insurance: Insurance purchased by the shipper or consignee to protect goods during transportation against risks like theft, damage, or loss.
  • Carrier: A company or individual responsible for transporting goods from one location to another, typically by land, air, or sea.
  • Chassis: A wheeled frame used to carry intermodal containers on land, often used in conjunction with a container for road transport.
  • Compliance: Ensuring that shipping operations follow all legal, regulatory, and contractual obligations, including customs regulations and safety standards.
  • Consolidated Shipping: The practice of combining multiple shipments going to the same destination into one, reducing transportation costs.
  • Consolidation: The process of combining multiple smaller shipments into a single, larger shipment to optimize shipping costs and reduce transit time.
  • Container: A large, standardized shipping unit used to carry goods. Common types include 20-foot and 40-foot containers.
  • Container Freight Station (CFS): A facility where cargo is packed or unpacked into containers, often located near ports.
  • Containerization: The practice of packing goods into standardized containers for ease of shipping, handling, and storage.
  • Cost per Unit (CPU): A measure of the cost of shipping one unit of a product, often used to determine efficiency and pricing in logistics.
  • Cross-Docking: A logistics practice where goods are unloaded from incoming shipments and directly loaded onto outbound shipments, reducing storage time and enhancing efficiency.
  • Customs Broker: A professional who ensures that shipments comply with all regulations and successfully clear customs in both the exporting and importing countries.

D

  • Delivery Order: A document that gives the consignee the right to take possession of goods at the destination.
  • Delivery Window: The specific time frame in which goods must be delivered, often to align with customer or operational schedules.
  • Demurrage: Charges incurred when a container is held beyond the allowed free time at a terminal or port due to delays in unloading.
  • Dimensional Weight: A pricing technique used by carriers that takes into account the volume (size) of a shipment rather than just its weight, to more accurately reflect shipping costs.
  • Direct Shipment: A shipment where goods are sent directly from the seller to the buyer without going through an intermediate point, such as a warehouse.
  • Dock Receipt: A document that serves as an acknowledgment of the receipt of goods at the dock or port before shipment.
  • Drayage: The short-distance transportation of goods, typically from ports to nearby warehouses or between two locations within a supply chain, often involving containerized freight.
  • Drop Shipping: A fulfillment method where the seller doesn’t keep the product in stock but instead transfers the customer’s order to the manufacturer or wholesaler, who then ships it directly to the customer.
  • Drop Trailer: A shipping arrangement where a carrier leaves an empty trailer at a customer’s location for loading or an already loaded trailer for unloading, allowing the shipper or consignee to load or unload at their convenience. The carrier later returns to pick up the trailer, streamlining operations and reducing wait times.
  • Dry Van: A type of enclosed trailer used for shipping non-perishable goods. Dry vans are versatile and protect cargo from weather, theft, and damage, making them one of the most common types of trailers in the transportation industry.
  • Duty: A tax imposed by the government on goods being imported or exported, calculated based on the value of the goods, their classification, and origin.

E

  • EDI (Electronic Data Interchange): A system that allows the electronic exchange of business documents (e.g., invoices, purchase orders) between trading partners, improving efficiency and accuracy in the supply chain.
  • Electronic Proof of Delivery (ePOD): A digital record confirming that goods were delivered to the recipient, often signed electronically by the consignee.
  • Empty Miles: The distance traveled by a truck or container that is empty, often as a result of a backhaul or return trip with no cargo.
  • End-to-End Supply Chain: The full sequence of processes and steps involved in the production and delivery of a product, from raw material acquisition through to customer delivery.
  • Environmental Impact: The effect that a company’s logistics, including transportation and packaging, has on the environment, often measured in terms of carbon emissions, energy use, and waste.
  • Entry Summary: A document required by U.S. Customs that provides the details of a shipment entering the country, used to determine applicable duties and taxes.
  • Estimated Time of Arrival (ETA): The expected time that a shipment will arrive at its destination, used for tracking and scheduling purposes.
  • Ex Works (EXW): A trade term where the seller is responsible for making the goods available at their premises for pickup by the buyer, with all transportation and risk thereafter falling to the buyer.
  • Expedited Shipping: A shipping service that prioritizes quicker delivery, typically at a higher cost, to ensure faster transit times.

F

  • Fifth-Party Logistics (5PL): A logistics provider that focuses on managing e-commerce supply chains through advanced technology and automation. A 5PL typically handles complex operations, including multi-channel fulfillment, integration of 3PLs and 4PLs, and big data analytics to optimize performance.
  • Flatbed: An open trailer with no sides or roof, ideal for oversized or irregular freight like machinery or construction materials. Cargo must be securely strapped and often covered for protection.
  • Floor Loaded: A shipping method where goods are loaded directly onto the floor of a container without the use of pallets or other packaging materials.
  • Fourth-Party Logistics (4PL): A higher-level logistics provider that manages and oversees the activities of multiple 3PL providers. A 4PL acts as a single point of contact for supply chain management, offering strategic planning, technology, and oversight of the entire logistics network.
  • Freight: The goods or commodities being transported, or the charge for transporting them.
  • Freight Bill: An invoice that specifies the charges for shipping goods, including transportation costs, accessorial charges, and other applicable fees.
  • Freight Consolidation: The process of combining smaller shipments into a single larger shipment to reduce shipping costs and improve efficiency.
  • Freight Forwarder: A company that arranges the transportation of goods on behalf of a shipper, often organizing the best route, carrier, and documentation for the shipment.
  • Freight Insurance: Insurance coverage that protects goods while in transit, covering damage, theft, or loss during transportation.
  • Freight Rate: The cost associated with transporting freight, usually determined by the size, weight, or distance of the shipment, and affected by various factors like the mode of transport and urgency.
  • Fuel Surcharge: A fee added to the cost of transportation to account for fluctuations in fuel prices, often adjusted based on current market conditions.
  • Full Truckload (FTL): A shipment that fills an entire truck or container, typically used for large or heavy shipments, as opposed to less-than-truckload (LTL) shipping.
  • Fumigation: The process of treating goods, especially agricultural products, with a gas or vapor to eliminate pests or contaminants before shipping.

G

  • Gaining: A process of improving or increasing the efficiency, effectiveness, or performance of transportation or supply chain operations.
  • Gate In: The process of receiving a container at a terminal or warehouse and recording it into the system to prepare for further movement or shipment.
  • Gated Terminal: A terminal where containers or shipments are checked in and out through secure entry points, ensuring that goods are monitored and tracked.
  • General Cargo: Goods that are shipped individually or in small quantities, not requiring specialized handling (e.g., packaged goods, electronics).
  • Global Supply Chain: A network of suppliers, manufacturers, warehouses, and logistics providers that operate across different countries and regions, involved in the production and delivery of goods worldwide.
  • Goods Receipt: A document or process that acknowledges the receipt of goods into a warehouse or distribution center, often used for inventory management.
  • Green Logistics: The practice of using environmentally friendly methods and technologies in logistics operations to reduce carbon footprints, waste, and energy consumption.
  • Gantry Crane: A type of large crane used at ports to load and unload containers from ships, railcars, and trucks.
  • Gross Weight: The total weight of a shipment, including the goods, packaging, and any other materials used for transport.

H

  • Handling Equipment: The machinery and tools used to move, store, and manage goods in warehouses or during transportation, such as forklifts and conveyor belts.
  • Handling Fees: Charges applied for the physical movement, packaging, and handling of goods within a warehouse or during the loading and unloading process.
  • Harmonized System (HS) Code: A standardized international system for classifying goods in international trade, used by customs authorities to determine tariffs and duties.
  • Hazardous Materials (HazMat): Goods that are classified as dangerous due to their chemical, biological, or physical properties, requiring special handling and transport procedures.
  • Heavy Lift: A type of cargo that requires specialized equipment due to its weight, size, or dimensions, often used for machinery or construction materials.
  • High Cube Container: A type of shipping container that is taller than the standard size, offering more capacity for shipping goods.
  • Highway Freight: Freight that is transported by road using trucks, which is a common method for both local and long-distance shipments.
  • Hot Shot: A type of expedited freight service, often used for time-sensitive shipments where rapid delivery is required.
  • Hub: A central location where goods are collected, sorted, and redistributed to their final destinations, often used in transportation networks for efficiency.

I

  • Import Customs Clearance: The process of ensuring that goods entering a country meet all customs requirements, including payment of duties, taxes, and compliance with regulations.
  • Import Duty: A tax imposed by a country on goods brought into the country, based on the value, classification, and country of origin of the goods.
  • Inbound Logistics: The flow of goods and materials from suppliers to a company or warehouse, involving the sourcing, transportation, and receiving of products.
  • Incoterms: A set of international trade terms developed by the International Chamber of Commerce that define the responsibilities of buyers and sellers in international transactions (e.g., EXW, FOB, CIF).
  • Inspection: The process of examining goods for quality control, damage, or compliance with specifications before shipping, unloading, or storing.
  • Intermodal: The use of more than one mode of transportation (e.g., truck, rail, and sea) to move goods, typically through standardized containers for efficiency and cost savings.
  • International Freight: The transportation of goods across international borders, often subject to additional regulations, customs clearance, and documentation.
  • Inventory Management: The process of overseeing and controlling the movement and storage of goods in a warehouse, ensuring optimal stock levels and reducing excess or shortage.
  • Inventory Turnover: A metric used to assess how quickly a company’s inventory is sold and replaced over a specific period, indicating the efficiency of inventory management.
  • Invoice Matching: The process of verifying and reconciling invoices for freight and logistics services with the shipment details and purchase orders to ensure accuracy.

J

  • Jackknife: A term used to describe a type of accident involving a truck or trailer in which the vehicle’s trailer swings sharply toward the cab, creating a dangerous angle.
  • Jobber: A company or person that buys goods in bulk to sell them in smaller quantities, often acting as an intermediary in the logistics supply chain.
  • Jockeying: The process of moving containers or shipments from one location to another within a yard or terminal to optimize storage or prepare for transportation.
  • Joint Venture: A business arrangement where two or more parties agree to collaborate in the logistics or transportation industry, sharing resources, risks, and profits.
  • Just-in-Time (JIT): A supply chain strategy that aims to minimize inventory levels by receiving goods only as they are needed in the production process, reducing storage costs.

K

  • Key Performance Indicator (KPI): A metric used to evaluate the performance and success of logistics operations, such as on-time delivery, cost per shipment, or inventory turnover.
  • Kitting: The process of assembling or packaging individual items into a ready-to-ship kit or bundle, often used in e-commerce or manufacturing.
  • Knowledge Management: The practice of collecting, organizing, and sharing logistics knowledge, data, and insights across an organization to improve decision-making and performance.
  • Knockdown: A term used for flat-packed products or packaging that is unassembled and needs to be put together once it reaches its destination.

L

  • Lane: A specific transportation route or path between two points, often used to describe common routes in the trucking or freight industry.
  • Last Mile Delivery: The final leg of the delivery process, where goods are transported from a distribution center or local hub to the customer’s doorstep, often requiring specialized transportation and scheduling.
  • Lead Time: The amount of time between the initiation of an order and its fulfillment, including the time required for production, processing, and transportation.
  • Line Haul: The long-distance transportation of goods between major distribution points, such as from one city or country to another, typically involving trucks or rail.
  • Load Board: An online platform or marketplace where shippers and freight carriers can post and search for available loads to transport.
  • Loading Dock: A platform or area at a warehouse, distribution center, or port where goods are loaded onto or unloaded from trucks, containers, or other transportation modes.
  • Logistics: The planning, implementation, and management of the movement and storage of goods, services, or information across the supply chain.
  • Logistics Service Provider (LSP): A third-party company that offers logistics services, such as transportation, warehousing, and distribution, to businesses looking to outsource their supply chain operations.
  • LTL (Less-than-Truckload): A shipping method where smaller shipments from multiple customers are combined into one truckload, offering a cost-effective solution for shipments that don’t fill an entire truck.

M

  • Management Information System (MIS): A system used by logistics companies to collect, process, and store data on inventory, shipments, and operational performance to assist with decision-making.
  • Manifest: A detailed list of the cargo or freight being transported, often used by carriers for documentation and customs purposes.
  • Marking and Labeling: The process of applying identifying marks or labels to products, boxes, or pallets for tracking, handling, and customs purposes.
  • Material Handling: The movement, protection, storage, and control of materials or products throughout the manufacturing, warehousing, and distribution process.
  • Minimum Order Quantity (MOQ): The smallest amount of a product that a customer is required to purchase, often set by suppliers to ensure efficient production or shipment.
  • Minimum Stock Level: The minimum amount of stock that a business keeps on hand to avoid stockouts, often determined by demand patterns and lead time.
  • Mode: The type of transportation used to move goods, such as truck, rail, sea, air, or specific trailer types like flatbeds, dry vans, or refrigerated trailers.
  • Motion Sickness (in Logistics): The effect of goods shifting or becoming damaged due to excessive movement during transportation, often managed with packaging or restraints.
  • Multimodal Transportation: The use of multiple modes of transportation (e.g., road, rail, sea, air) to move goods from origin to destination, typically in a single shipping container.

N

  • National Account: A customer with multiple locations or a national presence, often requiring specialized services for efficient distribution and logistics.
  • Nestling: The process of placing smaller items or packages into larger containers to maximize space and minimize damage during shipping.
  • Network Optimization: The process of analyzing and improving the logistics network to reduce costs, improve efficiency, and enhance service levels, including the selection of routes, carriers, and distribution centers.
  • Net Weight: The weight of the goods alone, excluding packaging, containers, and other materials used during shipping.
  • Neutral Airway Bill (NAWB): A generic airway bill used in air freight that doesn’t have the branding of a specific airline, typically used by freight forwarders to arrange shipments.
  • Nominal Cost: A very low cost, typically used for pricing services or items at a symbolic or minimal amount, often seen in logistics promotions.
  • Non-Vessel Operating Common Carrier (NVOCC): A company that provides ocean freight services but does not own or operate ships; it acts as an intermediary between the shipper and ocean carrier.
  • No Show: A situation where a scheduled carrier or delivery driver fails to appear at the agreed time or location for pickup or delivery, leading to delays or service interruptions.

O

  • Ocean Freight: The transportation of goods by sea, typically used for bulk cargo or international shipments, often involving containers or breakbulk cargo.
  • On-Time Delivery (OTD): A key performance indicator (KPI) that measures the percentage of shipments delivered on or before the scheduled delivery date.
  • Optimum Route: The most efficient or cost-effective route selected for transporting goods, considering factors like distance, fuel costs, and time constraints.
  • Order Fulfillment: The process of receiving, processing, packing, and shipping customer orders, often managed by a 3PL provider.
  • Order Management System (OMS): A software platform used to track, process, and manage customer orders from the moment they are placed until they are delivered.
  • Outbound Logistics: The flow of goods from a company to its customers, including warehousing, packaging, shipping, and delivery.
  • Over-dimensional Cargo: Cargo that exceeds standard size or weight limits, requiring specialized handling, permits, or equipment for transportation.
  • Overage: When the amount of goods received or delivered exceeds the amount originally ordered or expected.
  • Overweight: When the total weight of a shipment exceeds the maximum weight allowed by a carrier, often resulting in additional fees or the need for alternative transportation.

P

  • Packaging: The materials used to protect goods during transportation, handling, and storage, ensuring that products remain safe and intact throughout the supply chain.
  • Pallet: A flat structure used to stack and transport goods, typically made of wood, plastic, or metal, and used to facilitate handling and storage.
  • Parcel Shipping: The transportation of smaller packages, often handled by services like USPS, UPS, or FedEx, rather than large freight shipments.
  • Perishables: Goods that are sensitive to time, temperature, and other environmental factors, such as food, medical supplies, or plants, requiring specialized handling and transport.
  • Pick and Pack: A fulfillment process where items are selected from inventory (picking) and then packed for shipment (packing), often used in warehouse operations.
  • POD (Proof of Delivery): A document or digital record that confirms the delivery of goods to the recipient, often requiring a signature or other verification.
  • Point of Origin: The location where goods are first shipped from, such as the manufacturer’s facility or warehouse.
  • Port of Entry: The location where goods are imported into a country, typically where customs clearance and other regulatory processes occur.
  • Post-Purchase Logistics: Logistics activities that occur after a product is sold, including warehousing, packaging, and shipping to the customer.
  • Power-Only: A service where a carrier provides just the truck and driver to transport a pre-loaded trailer, often used by shippers with their own trailers or containers.
  • Pre-Advice: A notification provided by the shipper to the recipient in advance of an incoming shipment, including shipment details such as the expected delivery time and contents.

Q

  • Quality Control: The process of inspecting goods for defects, errors, or compliance issues, ensuring that products meet certain standards before being shipped to customers.
  • Quantity Discount: A discount offered to customers who order large quantities of a product, often used as an incentive for bulk purchasing.
  • Quarantine: A period of isolation or examination that goods (particularly perishables, hazardous materials, or items from overseas) may undergo to ensure they meet safety or health standards.
  • Quarterly Review: A business practice where a logistics company or 3PL provider reviews operational performance, goals, and metrics every three months to identify areas for improvement.
  • Quick Response (QR): A logistics strategy that emphasizes the rapid movement of goods through the supply chain, typically by reducing lead times and increasing inventory turnover.

R

  • Rate: The cost associated with shipping goods, often determined by factors like weight, volume, distance, and the method of transportation.
  • Reefer: A refrigerated container used for transporting temperature-sensitive goods, often used in the shipping of perishable items like food and pharmaceuticals.
  • Reverse Logistics: The process of handling returns, recycling, or the disposal of products after they’ve been sold or delivered, including returns management and warranty handling.
  • Route Optimization: The process of determining the most efficient transportation routes for goods, considering factors like traffic, weather, and fuel costs to minimize delivery times and expenses.
  • Receiving: The process of accepting and inspecting goods upon their arrival at a warehouse, ensuring that the shipment matches the order in terms of quantity and quality.
  • Real-Time Tracking: The ability to monitor and track the status of shipments in transit, typically through GPS or RFID technology, providing up-to-date information to shippers and customers.
  • Return Merchandise Authorization (RMA): A system used by retailers and shippers to manage product returns, involving the issuance of an authorization number for tracking and processing returns.
  • Roll-On/Roll-Off (Ro-Ro): A type of cargo shipping method used for vehicles and equipment that can be driven on and off the vessel, often used for automobiles, trucks, and heavy machinery.
  • Rail Freight: The transportation of goods using trains, often used for large quantities of bulk materials over long distances, typically more cost-effective than road transport.
  • Reconciliation: The process of matching financial records, invoices, or shipping documents to ensure that all charges, costs, and shipments are accurate and aligned.

S

  • Seasonal Shipping: The variation in shipping demand based on seasonal factors, such as holidays, weather, or retail promotions, requiring adjustments in inventory and logistics planning.
  • Shipment: The act of transporting goods from one location to another, typically involving the packaging, labeling, and documentation of items.
  • Shipper: The party or company responsible for sending goods, including packaging, documentation, and payment for the shipping service.
  • Shipping Labels: Labels applied to packages or containers to identify the shipment, often including important details such as the destination, handling instructions, and tracking information.
  • Shipping Manifest: A detailed list of all the goods or cargo being shipped, often required for customs clearance and to provide a record of shipment contents.
  • Shortage: A situation where the quantity of goods received is less than the amount ordered, often requiring investigation or claims to be filed with the carrier or supplier.
  • Storage Fees: Charges applied for storing goods in a warehouse or distribution center, often based on the volume or duration of storage.
  • Supply Chain: The network of suppliers, manufacturers, distributors, and retailers that work together to deliver products from the point of origin to the final consumer.
  • Supply Chain Management (SCM): The management of the flow of goods and services, including raw materials, inventory, and finished products, from point of origin to the final customer.
  • Supply Chain Visibility: The ability to track and monitor the status of goods and information across the entire supply chain, from production to delivery.

T

  • Tariff: A tax or duty imposed by governments on goods being imported or exported, often used as a source of revenue or as a trade protection tool.
  • Temperature-Controlled Shipping: The process of transporting goods that require specific temperature conditions, such as food, pharmaceuticals, and other perishable items.
  • Third-Party Logistics (3PL): A company that provides outsourced logistics services, including warehousing, transportation, and order fulfillment, to other businesses.
  • Total Landed Cost: The total cost of a product, including the price, shipping, tariffs, taxes, and other costs incurred during transportation and delivery.
  • Tracking: The process of following the progress of a shipment in real-time through a tracking number or system, often used to inform both shippers and recipients about the shipment’s status.
  • Tracking Number: A unique identifier assigned to a shipment that allows the sender and receiver to monitor the package’s location and status during transit.
  • Transit Time: The amount of time it takes for goods to move from the point of origin to the destination, factoring in transport, handling, and potential delays.
  • Transshipment: The transfer of cargo from one vessel or carrier to another during the course of shipment, often occurring at a port or hub.
  • Transport Management System (TMS): A software system used to plan, execute, and optimize the physical movement of goods, as well as managing freight carriers and documentation.
  • Transportation Mode: The method of transporting goods, which can include road, rail, air, and sea, each with its own advantages and limitations based on distance, speed, and cost.

U

  • Underloading: A situation where a shipping container, truck, or other transport vehicle is not filled to capacity, resulting in inefficient use of space and higher transportation costs.
  • Unload: The process of removing goods from a transport vehicle, such as a truck or shipping container, upon arrival at a destination.
  • Uptick: A slight increase or rise in the demand for a product or shipping service, which can lead to adjustments in logistics operations or pricing.
  • Urban Distribution: The process of delivering goods to urban areas, often requiring specialized logistics solutions due to traffic, congestion, and delivery time constraints.
  • Unit Load Device (ULD): A standardized container used in air freight to carry cargo, such as pallets or containers, to maximize space and facilitate handling.
  • Undercharge: A billing error where the customer is charged less than the actual cost of the shipment, typically requiring an adjustment or collection of the difference.
  • Uniform Commercial Code (UCC): A set of laws governing commercial transactions in the U.S., including aspects of shipping, contracts, and business practices.
  • Unpacking: The process of removing goods from packaging after they have been received at their destination, often as part of the receiving or distribution process.
  • User-Defined Costs: Shipping costs that are specific to the needs or agreements of the shipper and are not covered by standard rates or policies, such as custom services or delivery schedules.

V

  • Valuation: The process of determining the value of goods being shipped, which may impact the cost of shipping, insurance, and any applicable tariffs.
  • Vehicle Tracking: The use of GPS or other technology to monitor the location and movement of delivery vehicles in real-time, improving route optimization and visibility.
  • Vendor Managed Inventory (VMI): A supply chain practice where the supplier manages the inventory levels of their products at the customer’s location, ensuring that stock levels are maintained efficiently.
  • Verification: The process of checking that goods match the order and meet specified quality or compliance standards, often part of the receiving or inspection process.
  • Vessel: A large ship used for transporting goods, typically in ocean freight, including container ships, bulk carriers, and tankers.
  • Volume Discount: A price reduction given to customers who order goods in large quantities, often used to incentivize bulk purchasing.
  • VMI (Vendor Managed Inventory): A system where the supplier is responsible for maintaining inventory levels at the customer’s site and replenishing stock as needed.

W

  • Warehouse: A large building used for the storage of goods, often equipped with systems for organizing, tracking, and moving products efficiently.
  • Warehouse Management System (WMS): A software application used to manage warehouse operations, such as inventory tracking, order picking, packing, and shipping.
  • Warehousing: The process of storing goods in a warehouse before they are distributed or sold, including inventory management, picking, packing, and shipping.
  • Waybill: A document issued by the carrier that serves as a receipt for the shipment and includes details such as the origin, destination, and description of goods being transported.
  • White Glove Service: A premium delivery service that involves special handling, unpacking, and setup of products at the customer’s location, often used for high-value or delicate items.
  • Wholesale: The sale of goods in large quantities, often at a lower price per unit, to retailers or other businesses, rather than directly to consumers.
  • Work-in-Progress (WIP): Goods that are in the process of being manufactured or assembled but are not yet finished products, often stored in a warehouse or production area.

X

  • X-Docking: A variant of cross-docking where goods are moved from one dock to another within a warehouse or facility with minimal handling or storage.
  • X-Ray Inspection: A method used to scan cargo or containers for security or customs purposes, detecting illegal items or contraband.
  • Xpress (or Express) Shipping: A fast shipping service designed to deliver goods quickly, often at a premium cost, to meet urgent delivery requirements.

Y

  • Yard: An open area used for the storage, sorting, and temporary staging of goods, containers, or vehicles, often located near ports, distribution centers, or rail yards.
  • Yellow Freight: A major freight carrier that specializes in less-than-truckload (LTL) shipping, offering services across North America.
  • Yield Management: The process of optimizing pricing strategies based on demand, capacity, and market conditions, often used in transportation and logistics to maximize revenue and minimize empty space.
  • Yield per Shipment: The revenue or profit generated from a shipment, calculated by dividing the total earnings from that shipment by its volume or weight.

Z

  • Zero-Inventory System: A logistics approach in which a company maintains little to no stock on hand, relying on frequent, just-in-time shipments to fulfill customer orders.
  • Zippering: The practice of organizing goods so that they are packed in an orderly manner, often in layers, to maximize space usage and ease of access within a shipping container.
  • Zone Pricing: A pricing strategy where shipping costs are based on geographic zones or distances, with different rates applied depending on the destination’s proximity to the origin.
  • Zoning (in Warehousing): The practice of organizing a warehouse into specific areas or zones for different types of products, such as perishable goods, high-demand items, or hazardous materials.