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Logistics and Transportation
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Third-Party Logistics (3PL)
A service that allows businesses to outsource operational logistics from warehousing, all the way to delivery, thus maximizing efficiency and reducing costs.
Just-In-Time (JIT)
An inventory strategy companies employ to increase efficiency and decrease waste by receiving goods only as they need them for the production process.
Intermodal Transportation
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.
Less Than Truckload (LTL)
A transportation service for relatively small loads or quantities of freight that do not require an entire trailer.
Full Truckload (FTL)
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.
Dropshipping
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.
Inventory Management
The supervising and controlling of the ordering, storage and use of components that a company uses in the production of the items it sells.
Freight Forwarding
A service used by companies to deal with the logistics of transporting goods safely and efficiently from one destination to another.
Warehousing
The process of storing goods within a storage facility. Warehouse personnel oversee and coordinate the receipt, storage, and dispatch of goods.
Cross-Docking
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.
Supply Chain Management (SCM)
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.
Bulk Cargo
Unpackaged cargo such as oil, grain, or coal that is transported in large volumes, typically involving specialized shipping.
Reverse Logistics
The process of moving goods from their typical final destination for the purpose of capturing value, or proper disposal.
Last Mile Delivery
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.
Containerization
The use of standard-sized containers for transporting goods, which can be transferred seamlessly between ships, trucks, and trains.
Air Freight
The transportation of goods by aircraft, which is typically used for items that are of high value or need to be delivered quickly.
Ocean Shipping
The process of transporting goods across the ocean via cargo ships. It's cost-effective for large shipments but slower compared to air freight.
Rail Transport
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.
Road Transport
The transportation of passengers or goods via roadways using vehicles like trucks, vans, and cars. Offers door-to-door service and is versatile.
Pipeline Transport
A mode of transportation where liquids, gases, or chemically stable substances are sent over long distances through pipes.
Lean Logistics
An approach to logistics that focuses on minimizing waste within the supply chain and maximizing efficiency.
Inbound Logistics
The transportation and storage of incoming goods into a business, encompassing the management of raw materials and components.
Outbound Logistics
The process related to the movement and storage of products from the end of the production line to the end user.
Multimodal Transportation
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.
Cold Chain Logistics
A temperature-controlled supply chain used to preserve and extend the shelf life of products like food, chemicals, and pharmaceuticals.
Nearshoring
The practice of transferring a business operation to a nearby country from one further away, to reduce transportation costs and improve supply chain efficiency.
Omnichannel Logistics
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.
Expedited Shipping
A fast shipping method that ensures products are delivered more quickly than standard shipping. Often comes with a premium cost.
Cross-Functional Visibility
Having insight into all functions of the supply chain including procurement, manufacturing, distribution, and sales, to enhance the decision-making process.
Demand Forecasting
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.
Incoterms
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.
Agile Logistics
A flexible approach to supply chain management that allows for quick adaptation and responsiveness to the changing market.
Cargo Insurance
A protection against potential losses or damages during the transportation of goods by sea, air, or land.
Digital Supply Chain
A supply chain where technology is used to boost performance and gain competitive advantage, including analytics, robotics, AI, and IoT.
Green Logistics
The process of minimizing environmental impact through sustainable practices in various aspects of logistics and supply chain management.
Dunnage
The protective packaging material used in shipping containers to prevent product damage during transportation.
Elastic Logistics
Refers to the ability of supply chains to expand and contract based on demand, improving efficiencies and reducing waste.
Freight Broker
An individual or company that acts as an intermediary between a shipper and freight services, to facilitate transportation of goods.
Hub and Spoke System
A logistics system designed to move goods more efficiently by utilizing a central hub as a sorting center.
Key Performance Indicator (KPI)
A measurable value that demonstrates how effectively a company is achieving key business objectives, often used in logistics to assess performance levels.
Non-Vessel Operating Common Carrier (NVOCC)
A freight consolidator that does not own any vessel, but functions as a carrier by issuing its own bills of lading or air waybills.
Transport Management System (TMS)
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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