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Logistics and Transportation

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Third-Party Logistics (3PL)

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A service that allows businesses to outsource operational logistics from warehousing, all the way to delivery, thus maximizing efficiency and reducing costs.

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Just-In-Time (JIT)

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An inventory strategy companies employ to increase efficiency and decrease waste by receiving goods only as they need them for the production process.

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Intermodal Transportation

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The use of two or more modes of transportation in moving a shipment from origin to destination by using specially designed containers that facilitate transfers among the modes.

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Less Than Truckload (LTL)

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A transportation service for relatively small loads or quantities of freight that do not require an entire trailer.

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Full Truckload (FTL)

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A shipping method where a truck carries one dedicated shipment. Typically used when there are enough goods to fill an entire truck, or for privacy reasons.

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Dropshipping

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A retail fulfillment method where a store doesn't keep the products it sells in stock. Instead, when a store sells a product, it purchases the item from a third party and has it shipped directly to the customer.

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Inventory Management

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The supervising and controlling of the ordering, storage and use of components that a company uses in the production of the items it sells.

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Freight Forwarding

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A service used by companies to deal with the logistics of transporting goods safely and efficiently from one destination to another.

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Warehousing

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The process of storing goods within a storage facility. Warehouse personnel oversee and coordinate the receipt, storage, and dispatch of goods.

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Cross-Docking

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A logistics process where products from a supplier or manufacturing plant are distributed directly to a customer or retail chain with minimal handling or storage time.

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Supply Chain Management (SCM)

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The management of the flow of goods and services, involving the movement and storage of raw materials, of work-in-process inventory, and of finished goods from point of origin to point of consumption.

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Bulk Cargo

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Unpackaged cargo such as oil, grain, or coal that is transported in large volumes, typically involving specialized shipping.

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Reverse Logistics

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The process of moving goods from their typical final destination for the purpose of capturing value, or proper disposal.

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Last Mile Delivery

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The final step of the delivery process from a distribution center or facility to the end-user, often considered the most expensive and time-consuming part of the shipping process.

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Containerization

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The use of standard-sized containers for transporting goods, which can be transferred seamlessly between ships, trucks, and trains.

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Air Freight

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The transportation of goods by aircraft, which is typically used for items that are of high value or need to be delivered quickly.

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Ocean Shipping

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The process of transporting goods across the ocean via cargo ships. It's cost-effective for large shipments but slower compared to air freight.

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Rail Transport

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Using trains and railroads to convey goods and passengers from one place to another. It’s suitable for heavy or bulky goods over long distances.

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Road Transport

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The transportation of passengers or goods via roadways using vehicles like trucks, vans, and cars. Offers door-to-door service and is versatile.

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Pipeline Transport

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A mode of transportation where liquids, gases, or chemically stable substances are sent over long distances through pipes.

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Lean Logistics

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An approach to logistics that focuses on minimizing waste within the supply chain and maximizing efficiency.

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Inbound Logistics

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The transportation and storage of incoming goods into a business, encompassing the management of raw materials and components.

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Outbound Logistics

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The process related to the movement and storage of products from the end of the production line to the end user.

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Multimodal Transportation

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A freight delivery system that uses a combination of transportation modes like truck, rail, and ship in a single journey without any handling of the cargo itself when changing modes.

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Cold Chain Logistics

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A temperature-controlled supply chain used to preserve and extend the shelf life of products like food, chemicals, and pharmaceuticals.

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Nearshoring

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The practice of transferring a business operation to a nearby country from one further away, to reduce transportation costs and improve supply chain efficiency.

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Omnichannel Logistics

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A logistics approach that provides customers with a fully-integrated shopping experience by unifying user experiences from brick-and-mortar to mobile-browsing and everything in between.

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Expedited Shipping

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A fast shipping method that ensures products are delivered more quickly than standard shipping. Often comes with a premium cost.

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Cross-Functional Visibility

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Having insight into all functions of the supply chain including procurement, manufacturing, distribution, and sales, to enhance the decision-making process.

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Demand Forecasting

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The activity that determines the expected demand for products or services, which helps in making informed decisions regarding inventory levels, workforce management, and other operational aspects.

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Incoterms

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A set of rules developed by the International Chamber of Commerce that define the responsibilities of buyers and sellers for the delivery of goods under sales contracts.

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Agile Logistics

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A flexible approach to supply chain management that allows for quick adaptation and responsiveness to the changing market.

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Cargo Insurance

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A protection against potential losses or damages during the transportation of goods by sea, air, or land.

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Digital Supply Chain

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A supply chain where technology is used to boost performance and gain competitive advantage, including analytics, robotics, AI, and IoT.

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Green Logistics

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The process of minimizing environmental impact through sustainable practices in various aspects of logistics and supply chain management.

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Dunnage

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The protective packaging material used in shipping containers to prevent product damage during transportation.

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Elastic Logistics

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Refers to the ability of supply chains to expand and contract based on demand, improving efficiencies and reducing waste.

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Freight Broker

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An individual or company that acts as an intermediary between a shipper and freight services, to facilitate transportation of goods.

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Hub and Spoke System

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A logistics system designed to move goods more efficiently by utilizing a central hub as a sorting center.

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Key Performance Indicator (KPI)

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A measurable value that demonstrates how effectively a company is achieving key business objectives, often used in logistics to assess performance levels.

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Non-Vessel Operating Common Carrier (NVOCC)

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A freight consolidator that does not own any vessel, but functions as a carrier by issuing its own bills of lading or air waybills.

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Transport Management System (TMS)

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A logistics platform that uses technology to help businesses plan, execute, and optimize the physical movement of goods, both incoming and outgoing.

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