Glossary of Logistics Terms: All you need to know!

This blog offers a comprehensive glossary of logistics terms to offer professionals, businesses, and supply chain enthusiasts an extensive resource to navigate the complex world of logistics. In this glossary, we’ve curated an extensive list of logistics-related terms covering various aspects of the supply chain. We aim to provide you with a user-friendly guide that clarifies the jargon and empowers you to make informed decisions for your business.

LogiNext is a global technology and automation company providing a SaaS platform to enterprises to digitize and optimize their logistics operations and provide a delightful end-customer experience. With 200+ enterprise clients in 50+ countries, the global tech firm has made a mark in the field of modern logistic technology.

Join us on this journey of logistics exploration, where each term is meticulously explained, paving the way for a well-orchestrated and streamlined supply chain. With our glossary in hand, you can confidently tackle logistics challenges, make data-driven decisions, and transform your supply chain.

Airway Bill: An Airway Bill (AWB Label) is a document (physical or digital) that holds details about the parcels, packets, letters, or goods in general. It is a critical piece of document that travels with the goods from its origin to destination and is used by shippers, carriers, and end customers to track and have visibility on the logistics movement. The Airway Bill would have the details of the shipper and recipient, shipment contents, terms & conditions of the trade, and other such crucial information.  (read more)

Annual Recurring Revenue (ARR): Usually known by the acronym ARR, Annual Recurring Revenue is the amount of recurring revenue a company generates in a year. ARR is used in the parlance of SaaS (software as a service) companies and is an indicator of the success of a company- the higher the ARR, the better a company is doing in terms of revenues and retaining/getting new customers. [LogiNext CEO on building the Google for Logistics]

API (Application Programming Interface): An API is a software interface that connects two computers or two computer software. APIs are built as a part of the software to make it more friendly so that it can talk to other software. For instance, in the logistics technology scenario, a cloud software like LogiNext Mile which is used for transportation automation has several APIs which can be called for by other legacy or new-age software to make them work together. If an organization is using old technology and wants to upgrade, it is APIs that come to the rescue by eliminating the need to completely replace an old system but rather build on top of the existing systems. 

API Integration: The process by which two systems talk to each other and data flows through them easily using Application Programming Interfaces is API Integration. 

Automated Storage and Retrieval System (AS/RS): ASRS systems are automation technology for better-utilizing floor space in warehouses or any place which stores a large volume of products, documents, or goods. ASRS comprises several computer-controlled systems that automatically place and retrieve loads. This results in huge operational efficiency gains and hence, organizations across the globe are implementing advanced versions of Automated Storage and Retrieval Systems. 

Automatic Order Allocation: A logistics technology term, automatic order allocation is the new-age way of allocating orders to delivery associates and delivery partners for delivery via dynamic route plans. Typically, order allocation used to happen via manual processes but now transportation automation platforms like LogiNext Mile are used for auto allocation of orders.

Automated Delivery Allocation: A logistics technology term, automated delivery allocation is the new-age way of assigning orders to delivery associates and delivery partners for delivery via dynamic route plans. Typically, order allocation used to happen via manual processes but now transportation automation platforms like LogiNext Mile are used for automated delivery allocation.

Autonomous Trucks: Also known as self-driving trucks, Autonomous trucks are vehicles that don’t require a driver to run. High-resolution and long-range sensors along with highly sophisticated Artificial Intelligence technology have enabled pilots of such trucks to completely automate the long-haul movements from pickups to delivery. 

Autonomous Vehicles: Also known as self-driving vehicles, Autonomous vehicles don’t require a driver to run them. High-resolution and long-range sensors along with highly sophisticated Artificial Intelligence technology have enabled pilots of such vehicles and the day is not very far when these vehicles would be available commercially. 

Air Freight: The transportation of goods via airplanes, often used for time-sensitive or high-value shipments.

Asset Tracking: The use of technology (e.g. GPS, RFID) to monitor and trace the movement of assets, such as vehicles, containers, or equipment.

Automated Order Processing: The use of cloud-based software to streamline and automate the processing of customer orders from entry to fulfillment.

Alerts and Notifications: Real-time notifications and alerts sent by cloud-based logistics software to inform users about important events, such as shipment delays or inventory levels.

Analytics Dashboard: A visual representation of logistics data and performance metrics, providing insights into key performance indicators (KPIs).

Auto-allocation: An automated feature in cloud-based logistics software that optimizes and generates the most efficient delivery routes for shipments.

Access Control: A security feature in cloud-based logistics software that restricts access to sensitive data based on user roles and permissions.

Bar Code: A barcode is a visual representation of data that can be read by a machine. In the world of logistics, barcodes are used to keep track of shipments and goods in a digital format. 

Bill of Lading: The BOL (Bill of Lading) document serves as a receipt of freight services, it is a contract between the freight carriers and shippers. The term originated first in a context where the mode of transport is the sea but it is now used for every mode of transport. 

Buffer Inventory: Extra inventory held in a supply chain to safeguard against uncertainties in demand or supply.

Billable Weight: The weight used to calculate freight charges, which can be based on either the actual weight or dimensional weight (whichever is greater).

Business Intelligence (BI): Cloud-based tools that analyze and present logistics data to aid in strategic decision-making and performance analysis.

Batch Processing: The automated handling of multiple logistics tasks or transactions simultaneously within the cloud-based software.

Batch Fulfillment: The process of fulfilling multiple orders as a batch to optimize picking and packing operations.

Batch Shipping: The automated process of shipping multiple orders together, optimizing carrier selection, and reducing shipping costs.

Business Process Automation (BPA): The use of cloud-based software to automate repetitive logistics tasks and processes.

Billing and Invoicing: Cloud-based capabilities for generating accurate invoices and managing billing processes for logistics services.

B2B Integration: Integration of cloud-based logistics software with business-to-business partners, facilitating seamless data exchange and collaboration.

Bulk Order Management: Cloud-based features for efficiently managing and processing large-volume orders.

Barcode Label Printing: Cloud-based software features that enable the printing of barcode labels for inventory and shipping purposes.

Batch Tracking: Tracking and tracing multiple items or shipments in a group, using cloud-based software to monitor their movement and status.
Capacity Optimization: Capacity Optimization is the process of using computational power to analyze data and optimize the total available capacity in the best possible way to have better operational performance. When it comes to logistics management, capacity optimization is critical for shippers because it helps to better manage resources.

3D packing for higher efficiency

CFR (Code of Federal Regulations): The Code of Federal Regulations (CFR) is a codification of the general and permanent rules published in the Federal Register by the Executive departments and agencies of the Federal Government. 

Cloud Software: The cloud in computing parlance is used to describe data centers available to multiple users over the internet. And cloud software is any software that is hosted on such data centers. For instance, GoogleDrive- users are storing their data on data centers in the cloud and not on physical hard drives. Many logistics software like LogiNext Mile are cloud SaaS software used by enterprises to automate their logistics operations. 

Contract Warehouse: A 3rd party storage facility that offers specialized services that can be hired by companies to fulfill their warehousing needs is called a contract warehouse. These specialized warehouses are often equipped with warehouse management technology which may take time to implement in a private warehouse. 

Cost and Freight (CFR): A legal term used in international trade, a CFR is used to specify the terms and conditions under which a seller will deliver goods via sea. Cost and freight is a commonly used International Commercial Term, a set of globally recognized terms that help to create a standard for foreign trade contracts and are published and regularly updated by the International Chamber of Commerce (ICC).

Custom Alerts and Notifications: This is a customer experience feature that is part of a transportation automation platform like LogiNext Mile which helps enterprises deliver a great end-customer experience. For instance, alerts regarding a change in ETA or proactive feedback collection to ensure customer satisfaction and other such minor details which go a long way in ensuring a great customer experience. 

Cycle Time: The total time required to complete a logistics process, from initiation to completion.

Capacity Planning: The process of determining the resources and capabilities needed to meet expected demand.

Cash on Delivery (COD): A payment method where the recipient pays for goods at the time of delivery.

Control Tower: A central hub that provides real-time visibility and control over various aspects of the supply chain.

Carrier Management: The process of managing and collaborating with carriers and transportation providers using cloud-based logistics software.
Cost Allocation: Assigning specific costs to different logistics activities or processes using cloud-based software for accurate expense tracking.

Carrier Rate Management: Using cloud-based logistics software to manage and update carrier rates for shipping services.

Capacity Planning: The process of assessing current and future logistics needs using cloud-based software to ensure sufficient resources are available to meet demand.

Cross-Border Logistics: Managing the movement of goods across international borders with cloud-based software, considering customs, tariffs, and regulatory compliance.
Delivery Logistics Platform: A one-stop software platform through which operation managers can plan trips, have visibility over operations, and track deliveries to give end-customers accurate ETAs is a delivery logistics platform. 

Delivery Management Software: Cloud-based SaaS technology used by enterprises in the business of moving goods and parcels in an efficient manner is called Delivery Management Software. Previously, companies like Oracle and SAP provided this software which is also known as a transportation management system, and in the last few years, new age software like LogiNext Mile have taken over which are known as transport management systems 2.0.

Transportation automation platform like LogiNext

Delivery Order Allocation: In the last mile automation parlance, delivery order allocation is the process by which software makes the most optimized trip plans for delivery associates. The trip route is optimized for weather, traffic, delivery type, and other variables.

Delivery Tracking System: A cloud-based SaaS platform used by enterprises to keep track of deliveries made by drivers to an end customer or by drivers in a B2B scenario is called a delivery tracking system. Systems like LogiNext Mile are used by enterprises to reduce costs, increase operational experience and provide a delightful end-customer experience.

Dispatch Routing Software: Usually a cloud-based solution, Dispatch Routing Software is used by courier companies, nations posts, eCommerce firms, and such to have complete visibility and tracking capabilities over their deliveries and have an efficient delivery management system in general. 

Demand Forecasting: A field within predictive analytics, Demand Forecasting tries to understand consumer behavior along with external factors and comes up with a direction that would be helpful to corporate supply chain and business managers. 

Delivered at Place: In the modern package delivery workflow, ‘Delivered at Place’ is a term used to verify that the item has been received by the end customer. Most of the current systems use ePOD (electronic proof of delivery) as a verification method. 

Delivered at Terminal: This is a checkpoint in the delivery workflow where the seller marks an item as delivered after handing over the goods to the end customer. The buyer (which can be an individual or a business) 

Delivery Route Planning: Modern businesses in delivery management use algorithms and cloud software to calculate the most efficient route for deliveries and this process is called Delivery Route Planning. This was earlier done manually and tools like Google Maps are used wherein the number of stops is limited and for enterprises where the number of stops can run into tens and hundreds, delivery route planning software like LogiNext Mile is used.

Demand Planning: A management process within an organization, demand planning is crucial to have complete visibility and control over resource allocation. If planned properly, this one metric has an impact on the entire supply chain optimization and can result in major gains for an organization. 

Driver Shortage: A situation in the transportation industry where there is a lack of available truck drivers to meet demand.

Delivery Order: A document that authorizes the release of goods to a specified party, usually issued by a carrier or warehouse operator upon receiving shipping instructions.

Dynamic Routing: A process of continuously optimizing delivery routes in real-time based on traffic conditions, weather, and other variables.

Demand Forecasting: The process of estimating future customer demand for products or services to guide inventory and production planning.

Dispatching: The real-time assignment of drivers and vehicles to transport goods based on cloud-based logistics software’s optimization algorithms and availability.

Driver Mobile App: A mobile application integrated with cloud-based logistics software that allows drivers to receive and update delivery information on the go.

ePODElectronic Proof of Delivery (ePOD) is an electronic verification system, a critical part of any delivery tracking system that allows the business to know the real-time status of the product and helps the company and end-customer to know whether the products are delivered or not marked for return at the end of the day. [Read the detailed post

EDI (Electronic Data Interchange): An electronic format via which businesses can exchange information with each other without the use of paper is called electronic data interchange. 

ERP (Enterprise Resource Planning): Traditionally an on-premise software, ERP systems help organize digitize and co-ordinate their operations and several areas like accounting, procurement, resource management, supply chain, and such. In a modern-day organization, cloud software like the Google Suite is replacing ERPs. 

Electronic surveillance: Using electronic means like CCTV cameras, GPS, digital video equipment, and such to track business activities, homes or individuals is known as electronic surveillance. 

E-commerce Fulfillment: The process of receiving, processing, picking, packing, and shipping online orders to customers.

ETA (Estimated Time of Arrival): The expected time when a shipment or transportation vehicle is estimated to arrive at its destination.

Empty Returns: The process of returning shipping containers or transporting equipment back to their point of origin after being emptied of their cargo.

Electronic Freight Payment (EFP): An automated system that handles the invoicing, auditing, and payment processing for freight charges.

Ergonomics: The study of designing workplaces and equipment to improve productivity and reduce operator fatigue and discomfort.

E-commerce Integration: Integrating cloud-based logistics software with e-commerce platforms for seamless order processing and fulfillment.

End-to-End Visibility: Using cloud-based logistics software to track and monitor shipments across the entire supply chain, from origin to final delivery.

Environmental Sustainability: Utilizing cloud-based logistics software to implement and monitor eco-friendly practices in logistics operations.

Error Handling: The process of identifying and resolving errors and exceptions that occur during logistics operations, facilitated by cloud-based software.

ETA Notification: Automatically notifying customers and stakeholders of the estimated time of arrival for their shipments through cloud-based logistics software.

Exception Management: Handling and resolving exceptional events or issues in logistics operations through cloud-based software.

Fleet Management Software: Cloud-based SaaS platforms like LogiNext Mile used by enterprises to gain visibility and tracking over their entire fleet of drivers or delivery partners (in-house or 3rd party) are called Fleet Management Software. Modern fleet management software are also called transportation automation platforms and they provide detailed analytics regarding fleet performance and ways in which operational efficiency can be increased.

Fleet Tracking Software: A SaaS platform that can be used by brands for delivery associate management to gain visibility and tracking capabilities over the delivery management is called Fleet Tracking Software. LogiNext is a premier example of such cloud-based software.

FTL (Full Truck Load): The full form of FTL is Full Truck Load which is referred to in logistics parlance when a truck carrying goods is full with enough products (bulk or liquid). The opposite of FTL is LTL  which stands for less than truckload. 

Force Majeure: This is a French term that means “greater force” and in business parlance, is used to describe events that are beyond the control of humans. In cases of natural calamities or in very recent history, events like the covid 19 pandemic evoke a Force Majeure response from businesses where all terms of contracts go invalid and new rules are written. 

Fourth-Party Logistics (4PL): A fourth-party logistics provider is basically an added layer to 3PL and goes beyond logistics to look at the supply chain as a whole by managing resources, technology infrastructure, and even more 3PLs. 

Free Trade Zone: A part of the special economic zone, Free Trade Zones are areas within which goods and products may be landed, handled, stored, manufactured, configured, and re-exported without custom authority intervention. FTZ’s are referred to as “foreign-trade zones” in the United States (Foreign Trade Zones Act of 1934). 

Fulfillment Center: A facility used for receiving, processing, and shipping orders for e-commerce and retail businesses.

Flatbed Truck: A type of truck with an open cargo bed without sides or a roof, suitable for carrying large or unusually shaped items.

Forecasting: The process of predicting future demand for products or services based on historical data and market trends.

First In, First Out (FIFO): An inventory management method where the oldest stock is sold or used first to minimize inventory holding costs.

Freight Bill: A document detailing the charges and terms associated with the transportation of goods.

Final Mile Delivery: The last stage of delivery where goods are transported from a distribution center to the end customer’s location.

Forecasting and Planning: Using cloud-based logistics software to predict demand, plan inventory, and optimize logistics operations.

Field Service Management: Cloud-based software that manages the dispatching, scheduling, and tracking of field service technicians and their work.

Fulfillment Service: A third-party logistics provider that handles order fulfillment on behalf of e-commerce businesses, managed through cloud-based software.

GPRS: The full form of GPRS is General Packet Radio Service. It is a mobile data standard and the 2G and 3G cellular communication network’s global system for mobile communication (GSM). It provides continuous data and voice connectivity while on the move.  

Goods Received Note (GNR): An important document, GNR is a note of receipt of goods which is signed by the recipient once the goods transported by a supplier reach the intended destination. It is a two-way document that signifies the receipt of goods. 

GPS (Global Positioning System): A satellite-based navigation system that provides real-time location data for vehicles, assets, and shipments.

Green Logistics: The practice of implementing eco-friendly and sustainable initiatives in logistics operations to reduce environmental impact.

Global Supply Chain: The interconnected network of suppliers, manufacturers, distributors, and retailers that spans across multiple countries and continents.

Goods in Transit: Shipped goods that are currently in the process of being transported from the supplier to the final destination.

Gross Weight: The total weight of a shipment, including the weight of the goods and any packaging or containers.

Guaranteed Service: A shipping service that promises delivery within a specified time frame, often with a money-back guarantee if the commitment is not met.

Globalization: The process of integrating economies, cultures, and societies worldwide, leading to increased international trade and interconnectedness.

Goods Return: The process of accepting and processing returned goods from customers, often referred to as product returns or reverse logistics.

Global Trade Compliance: Ensuring that all international trade activities adhere to relevant laws, regulations, and customs requirements.

Geofencing: Using cloud-based software to set virtual geographic boundaries and trigger automated actions when a vehicle or shipment enters or exits those areas.

Go-Live: The point at which a cloud-based logistics software solution is fully implemented and operational within a logistics provider’s system.

Goods Return: The process of accepting and handling returned goods, managed and tracked using cloud-based logistics software.

Honeycombing: Honeycombing is an ingenious process of storing pallets or goods within a warehouse where the storing method is optimized for handling efficiency and storage efficiency. Typically, a picking operation must be designed in a way that items are not taken out too many times, and having only one item in one line would mean waste of space. Honeycombing is basically a method of storage that accounts for both of these and gives the best possible solution. 

Hub: A hub is a junction which in logistics tech parlance is used to denote an important point where a package is generated from, arrives at or is a point from where it is passed on further. 

HAZMAT: A substance or material the Secretary of Transportation determines to be an unreasonable risk to health, safety, and property when transported in commerce is called HAZMAT and hence there are restrictions on their transport. 

Handling Fee: A charge applied to cover the costs associated with the handling and processing of goods during transportation or warehousing.

Highway Transportation: The movement of goods by road, including trucks and trailers, is managed and optimized using cloud-based logistics software.

Health, Safety, and Environment (HSE) Compliance: Ensuring compliance with health, safety, and environmental regulations and best practices using cloud-based logistics software.

Hybrid Routing: Using cloud-based logistics software to optimize routes combining multiple transportation modes, such as trucking and rail.

Holding Area: A designated area within a facility where goods are temporarily stored before processing or shipment, monitored through cloud-based logistics software.

Hotspot Analysis: Analyzing data from cloud-based logistics software to identify areas with high activity or opportunities for improvement.

Historical Data Analysis: Using data from cloud-based logistics software to analyze past performance and identify trends or patterns.

Heatmap: A visual representation of data from cloud-based logistics software, showing the concentration or intensity of certain logistics activities or events.

Home Delivery Solutions: Cloud-based software that facilitates efficient home delivery operations, including appointment scheduling and customer notifications.

Invoice: It is a commercial document between a buyer and seller with a timestamp that itemizes and records a commercial transaction. 

Inventory Management: For any organization handling goods, be it a retail firm or an eCommerce company, inventory management is the methodology to procure, store, and ship inventory in an efficient manner. 

Inbound Logistics: The process of managing the movement of goods, materials, and information from suppliers to a company’s production or storage facilities.

Intermodal Transportation: The use of multiple modes of transportation (e.g., truck, rail, ship, air) to move goods from origin to destination.

International Shipping: The movement of goods and cargo across international borders, involving customs clearance and compliance with international regulations.

In-Transit: The status of goods or shipments while they are en route from the origin to the destination.

Inventory Control: The management of inventory levels to ensure efficient operations while minimizing carrying costs.

In-House Logistics: The management of logistics activities and operations performed by a company’s own resources and personnel.

Inventory Management: Using cloud-based software to track, manage, and optimize the storage and movement of goods in a warehouse or distribution center.

Inbound Logistics: The management of goods, materials, and information flowing into a warehouse or facility, optimized using cloud-based software.

IoT (Internet of Things): The integration of IoT devices, such as sensors and trackers, with cloud-based logistics software to gather and transmit real-time data.

Integration Platform as a Service (iPaaS): Cloud-based software solutions that facilitate the integration of different applications and systems.

Item Master Data: A centralized repository in cloud-based logistics software containing detailed information about products, SKUs, and inventory items.

Invoicing and Billing: The process of generating invoices and handling billing activities through cloud-based logistics software.

Intelligent Routing: The use of algorithms and real-time data in cloud-based logistics software to determine the most efficient transportation routes.

Just In-Time Delivery (JIT) System: First developed in the 1970s by Toyota, JIT is a Japanese manufacturing workflow whose goal is zero inventory across the organization and its supply chain. It organization processes in such a way that just the right number/amount of goods reaches a point/hub as is needed at that point. 

JIT Delivery: The practice of delivering materials or products just in time for their use, reducing the need for inventory storage.

JIT Manufacturing: A production method that focuses on producing goods only when there is customer demand, minimizing waste and excess inventory.

JIT Inventory System: A system that maintains low inventory levels and relies on timely replenishment to meet customer demands.

Just-In-Sequence (JIS): An extension of Just-In-Time (JIT) that delivers parts or materials in the sequence they are needed in the production process.

Job Order Costing: An accounting method used to allocate costs to specific jobs or production orders.

Jettison: The intentional act of throwing or dropping cargo or goods overboard from a ship or aircraft to lighten the load in emergency situations.

Jockeying: The movement of trailers or containers within a terminal or yard to optimize space and facilitate efficient loading and unloading.

Joint Distribution Center (JDC): A shared facility used by multiple companies to consolidate and distribute their goods efficiently.

Job Scheduling: Using cloud-based software to create and manage schedules for logistics tasks, such as order processing, picking, and delivery.

Job Order: A specific work order or task assigned to a logistics team or vehicle, recorded and monitored using cloud-based software.

Journey Planning: Planning the most efficient routes and schedules for vehicles and shipments using cloud-based logistics software.

Job Assignment: Allocating specific logistics tasks to individuals or teams using cloud-based software to ensure proper task distribution.

Job Completion Tracking: Recording and tracking the completion status of logistics tasks using cloud-based software.

Job Status Updates: Real-time updates on the progress of logistics tasks or assignments, communicated through cloud-based software.

KPI (Key Performance Indicator): A quantifiable metric used to measure the performance and success of logistics operations.

Kitting: The process of grouping and packaging separate items together as a single unit before shipment.

KPI Dashboard: A visual representation of key performance indicators used to monitor and assess the performance of logistics operations.

KPI Report: A document or presentation that provides detailed information about key performance indicators and their trends over time.

KPI Tracking: The process of collecting, monitoring, and analyzing data related to key performance indicators to assess performance and identify areas for improvement.

KPI Alerts: Automated alerts and notifications triggered by predefined thresholds or deviations in key performance indicators, sent through cloud-based software.

KPI Analysis: Analyzing and interpreting key performance indicators data from cloud-based logistics software to make informed decisions.

Knowledge Management: The process of capturing, organizing, and sharing knowledge and information within an organization to enhance decision-making and efficiency.


Last Mile Delivery Optimization: For eCommerce firms and QSR chains, last-mile delivery is of critical importance to provide a good customer experience. Home delivery companies use last-mile delivery optimization to make efficient use of resources to deliver on time, reduce overall costs and increase operational excellence. 

Last Mile Tracking: A module within a transportation automation platform that is used for tracking deliveries sent to the end customer is called Last Mile Tracking. For instance, a McDonald’s using LogiNext Mile to keep track of the orders out for delivery and sending relevant notifications to the end customer is called last mile tracking.

LTL (Less than truckload): LTL refers to the state of the capacity of a truck where it is not fully loaded. Opposite of LTL is FTL which means Full Truck Load wherein the truck is completely or almost completely full of products and goods. [LogiNext CTO on Apple Podcast]

Lead time: The amount of time elapsed between the start of a process to its conclusion is called lead time. For instance, the amount of time from which an order is received by a QSR chain from a customer to the time that a delivery associate delivers the food would be called the lead time for that particular order. 

Logistics Management: The process of managing and strategizing several business processes like procurement, storage, movement, and optimizing resources via technology is known as logistics management. Softwares such as LogiNext Mile help with the all-mile logistics management for enterprises. 

Logistics Software: Computer software used by enterprises and SMBs to streamline their logistics operations is called logistics software. Typically, this used to be bulky and expensive on-premise software from the likes of Oracle and SAP but over the years, this has moved to the cloud with plug & play SaaS platforms like LogiNext Mile.

Logistics: The process of planning, implementing, and controlling the efficient movement and storage of goods, services, and information from point of origin to point of consumption.

Logistics Network: The interconnected system of transportation, distribution centers, and facilities that facilitate the flow of goods.

Line Haul: The long-distance transportation of goods between major hubs or cities, usually by truck, rail, or air.

Load Planning: The process of arranging and organizing items or cargo within a container or transportation vehicle for safe and efficient transportation.

Logistics Audit: An assessment of a company’s logistics operations to identify inefficiencies and areas for improvement.

Logistics Management: The process of planning, implementing, and controlling the efficient flow and storage of goods, managed using cloud-based logistics software.

Logistics Tracking: Using cloud-based software to monitor the movement and status of goods throughout the supply chain.

Less-Than-Truckload (LTL): A shipment that does not require a full truckload, managed and consolidated using cloud-based logistics software.

Location-Based Services: Cloud-based software features that utilize location data to optimize routing, tracking, and delivery.

Line-Haul Carrier: A carrier specialized in long-distance transportation between distribution centers or hubs, managed through cloud-based logistics software.

Label Printing: Cloud-based software features that enable the printing of shipping labels and barcodes for accurate tracking and identification.

Mode of Payment: There are several ways in which an individual or business can make a payment such as COD (cash or delivery), credit/debit card, bank transfers, eWallet, etc. for a product or service which is termed as ‘mode of payment’. 

MRO (Maintenance, Repair, and Operations): Materials and supplies used to maintain and support day-to-day operations in manufacturing and other industries.

Manifest: A document detailing the cargo, passengers, and other information about a transportation vehicle, such as a ship or aircraft.

Make-to-Order (MTO): A manufacturing strategy where products are produced only after receiving customer orders.

Make-to-Stock (MTS): A manufacturing strategy where products are produced in anticipation of customer demand and held as inventory.

Multimodal Transport: The use of multiple modes of transportation (e.g., truck, rail, ship) to move goods from origin to destination.

Maximum Payload: The maximum weight or load capacity that a transportation vehicle can carry.

Minimum Order Quantity (MOQ): The smallest quantity of a product that a supplier is willing to sell or a buyer is willing to purchase.

Milestone: A significant event or point in a logistics process, such as reaching a particular location or completing a specific task.

Material Safety Data Sheet (MSDS): A document containing information about the properties and hazards of a chemical substance.

Multi-Carrier Shipping: Using cloud-based logistics software to support shipping with multiple carriers to provide flexibility and cost optimization.

Marketplace Integration: Integrating cloud-based logistics software with online marketplaces to streamline order processing and fulfillment.

Merge-in-Transit (MIT): Combining multiple shipments or components during transportation to create a consolidated final delivery, supported by cloud-based logistics software.

Master Data Management (MDM): Maintaining consistent and accurate data across the entire logistics system, facilitated by cloud-based software.

Monitoring and Alerting: Cloud-based software features that monitor logistics operations and trigger alerts for exceptions or critical events.

Multi-Stop Route Planning: Optimizing delivery routes with multiple stops using cloud-based logistics software to minimize time and distance.

NPS (Net Promoter Score): Widely used in the market research area, NPS is a metric that takes the form of a single survey question asking users the likelihood of their recommending the product or service to a friend or colleague. 

Neutral Zone: A designated area, such as a free trade zone or customs warehouse, where goods can be stored or transshipped without being subject to import duties or taxes.

Net Weight: The weight of goods without including any packaging, containers, or other materials.

Non-Delivery Fee: A charge applied when a shipment cannot be delivered to the consignee due to an incorrect address or other issues.

Nearshoring: The practice of relocating production or manufacturing closer to the final market to reduce transportation time and costs.

National Carrier: A transportation company that operates within a specific country’s borders.

Non-Disclosure Agreement (NDA): A legal contract that ensures confidentiality between parties involved in business transactions or discussions.

Negotiable Bill of Lading: A bill of lading that allows the transfer of ownership of the goods to another party through endorsement.

Nesting: The stacking of empty containers or pallets to save space during storage or transportation.

Network Optimization: The process of using cloud-based logistics software to analyze and optimize the configuration and operations of a logistics network for efficiency and cost-effectiveness.

Notification Services: Cloud-based software features that send automated notifications to customers and stakeholders about shipment status and updates.

Negotiated Rates: Customized shipping rates agreed upon between a logistics provider and carrier, managed and applied through cloud-based software.

Next-Day Delivery: A shipping service that guarantees delivery of goods on the following business day, managed and optimized through cloud-based logistics software.

Non-Disclosure Agreement (NDA): A legal contract that protects sensitive information shared between parties, monitored, and stored through cloud-based logistics software.

Notices of Arrival (NOA): Notifications provided by carriers or customs authorities regarding the arrival of goods at a destination, managed through cloud-based logistics software.

Ondemand Delivery: Post the technology revolution, consumers expect deliveries to reach them at the doorstep at a desired time and brands across retail, eCommerce, Courier, and QSR chains providing such a service are called Ondemand Delivery.

Order Lifecycle Management: The processes and systems put in place to ensure one order gets delivered successfully from the time an order is placed to when it is put together to when it is delivered to the end customer is called order lifecycle management. For e.g., Software like LogiNext Mile gives complete digital visibility and tracking of an order lifecycle. 

Order Management: The process and strategy employed by a business to efficiently handle orders from end customers or other businesses is called Order Management. Typically made efficient by the use of technology, software like LogiNext Mile is helping delivery companies in optimizing and automating order management. 

Order Picker: A machine or a person that picks up orders from the warehouse or storage to be readied for delivery is known as an order picker. In the modern age, robotics has taken leaps in the area where most of the order picking is becoming automated and being handled by logistics management software. 

Order Fulfillment: The process of receiving, processing, picking, packing, and shipping customer orders.

Outsourcing: The practice of contracting out certain logistics functions or activities to external service providers.

Outbound Logistics: The process of managing the movement of goods from a company’s production or storage facilities to the end customers.

On-Time Delivery (OTD): A metric that measures the percentage of deliveries that are completed on or before the scheduled delivery date.

Order Picking: The process of selecting and collecting items from a warehouse to fulfill a customer order.

Order Tracking: The ability to monitor and trace the status and location of a shipment in real-time.

Order Management System (OMS): A software system that handles the processing and fulfillment of customer orders.

One-Way Trip: A shipment or transportation service where the carrier is not required to return the container or equipment to the original location.

On-Demand Shipping: A shipping service that allows customers to request immediate delivery or pickup, enabled by cloud-based logistics software.

Order Fulfillment: The process of completing and delivering customer orders, managed and streamlined through cloud-based logistics software.

Order Consolidation: The practice of combining multiple smaller orders into a single shipment for cost-effective transportation, managed using cloud-based software.

Order Cycle Time: The time it takes to process and fulfill an order, measured and reduced using cloud-based logistics software.

PTL (Part Truck Load):  Partial or Part Truck Load means that the truck is occupied only partly with the shipper’s consignment and has room for other consignments to make the truck completely full. 

Pick-and-Pack: The process of selecting items from inventory (picking) and preparing them for shipment (packing).

Packing List: A document that itemizes the contents of a shipment and is included with the goods for reference.

Pick-Up and Delivery (PUD): The movement of goods from a pick-up location to a delivery destination.

POD (Proof of Delivery): A document or electronic record showing that a shipment has been delivered successfully.

Public Warehouse: A third-party facility that provides storage and distribution services to multiple companies.

Partial Shipment: A shipment that does not include the entire order, with the remaining items shipped separately.

Procurement: The process of sourcing and acquiring goods, services, or raw materials for a business.

Pick-up Window: A specific time frame during which a warehouse or distribution center prepares orders for shipment.

Private Fleet: A fleet of trucks or vehicles owned and operated by a company for its transportation needs.

Packing Efficiency: The optimization of packaging to maximize the use of available space and minimize waste.

Parcel Tracking: Using cloud-based software to monitor and trace the movement of small packages and parcels throughout the shipping process.

Pick-Up Request: A request to schedule the collection of goods from a specified location, managed and processed using cloud-based logistics software.

Product Lifecycle Management (PLM): The management of a product’s entire lifecycle, from design and production to distribution and disposal, facilitated by cloud-based software.

Physical Distribution Management (PDM): The coordination and optimization of the physical movement of goods, supported by cloud-based logistics software.

Predictive Analytics: Using historical data and algorithms in cloud-based logistics software to make predictions and optimize future logistics outcomes.

Quality Check Automation (QC automation): The process of digitally tracking the adherence to quality standards of a manufacturing process is called Quality Check Automation. Be it a burger or a car, the manufacturing process at scale has several elements, and enterprises deploy QC automation at various steps via cameras, software like LogiNext, and other digital means. 

Quality Control (QC): The process of ensuring that products or services meet specified quality standards before they are delivered to customers.

Quality Assurance (QA): The systematic process of ensuring that quality standards are consistently maintained throughout production or service delivery.

Quotation (Quote): A formal offer or proposal detailing the price and terms for goods or services provided by a supplier or vendor.

Quality Management System (QMS): A set of policies, processes, and procedures used to ensure that products or services consistently meet quality requirements.

Queue Management: The practice of managing and optimizing the flow of goods or vehicles waiting in a queue or line.

Quality Standards: Criteria and specifications that products or services must meet to satisfy customer expectations.

Quality Improvement: Ongoing efforts to enhance processes, products, or services to achieve better quality and customer satisfaction.

Qualified Carrier: A transportation company that meets specific regulatory or safety requirements to transport certain types of hazardous or sensitive goods.

Quality Audit: A systematic examination of processes, systems, or products to determine if they comply with quality standards and best practices.

Quantity Break: A price discount offered based on the quantity of goods ordered, managed and applied through cloud-based logistics software.

Quotation Management: The process of generating and managing price quotes for shipping services or logistics solutions using cloud-based software.

Quantitative Forecasting: Using historical data and statistical methods in cloud-based logistics software to predict future demand and inventory needs.

Queue Optimization: Using cloud-based logistics software to optimize tasks or order queues for maximum efficiency and reduced waiting times.

Quoted Transit Time: The estimated time for a shipment to reach its destination, communicated to customers through cloud-based logistics software.

Route Optimization: The process of using computer algorithms to take in variables like weather and traffic conditions to derive an optimal route plan in which (parcel) deliveries should be made is called Route Optimization. SaaS software like LogiNext Mile are front runners when it comes to offering route optimization software to enterprises. At an individual level, Google Maps also does the same. [Read Detailed Post]

Route Planning: The methodology used to factor in several variables like resource utilization, order density, and driver skillset and arrive at an optimal route is called route planning. Softwares like LogiNext Mile do this algorithmically to make life easier for an operations manager. 

Real time GPS: Global positioning system (GPS) gives the location of an object (person or vehicle) using cellular wireless or satellite communication. Real-Time GPS tracking systems are useful for enterprises in the last-mile delivery and B2B fulfillment space where visibility over the supply chain improves operational excellence. 

Request for Information (RFI):  RFI is really a preliminary document used by companies that don’t understand the marketplace they’re about to enter. In the case of a company searching for a TMS, for instance, it would use an RFI if it had no prior experience with TMS and wanted to gain an understanding of the range of options in the TMS space. RFI will state the broad business challenges you’re having, and then the vendor can tailor its response within the context of those challenges.

Request for Proposal (RFP): RFP is a document that a company searching for enterprise-level services can use to get an overview of offerings and costs from several vendors at once. If a vendor participates in an RFP, it answers a series of questions about the products, services, methodology, and costs that will go into fulfilling the company’s needs.

Request for Quotation (RFQ): RFQ is an even more detailed document that drills down to the exact specifications required by the company. In a situation where an RFQ is used for a B2B software project, the company knows enough about its current system and exactly how it wants to change or improve it in the future.

Reverse Logistics: The process of managing the return, disposal, or recycling of products or materials after they have been delivered to customers.

Risk Management: The process of identifying, assessing, and mitigating potential risks and uncertainties in logistics and supply chain operations.

Real-Time Tracking: The continuous monitoring of shipment location and status with instant updates.

Road Feeder Service (RFS): The transportation of cargo between an airport and a customer’s location using trucks.

Repackaging: The process of removing goods from their original packaging and repacking them into new containers.

Round Trip: A transportation service that involves delivering goods to a destination and returning to the point of origin without any additional cargo.

Rate Shopping: Comparing and selecting the most cost-effective shipping rates from various carriers using cloud-based logistics software.

Rate Management: The process of managing and updating shipping rates and charges in cloud-based logistics software.

Routing Guide Compliance: Ensuring that carriers comply with the routing instructions and guidelines specified in the routing guide, tracked through cloud-based software.

Real-Time Alerts: Automated notifications sent in real-time to inform stakeholders of critical events or deviations in logistics operations, sent through cloud-based software.

SaaS: Software as a Service is a method of delivering software wherein the technology is hosted on cloud servers and users by licenses to use the software on a recurring basis. For instance, NetFlix. It is a SaaS offering for which the videos are hosted on the cloud and users pay a monthly fee to access these videos. 

SLA (Service Level Agreement): A documented commitment between a service provider and a client with all the terms and conditions along with expectations is called a service level agreement (SLA).

Shipping Tracking Software: Cloud-based SaaS technology used to have visibility and track shipments while being delivered efficiently to the end customer is called shipping tracking software. e.g. LogiNext Mile. 

Supply Chain: The network of organizations, people, activities, information, and resources involved in moving goods or services from suppliers to customers.

Stock Keeping Unit (SKU): A unique identifier assigned to each item in inventory to track its movement and manage stock levels.

Strategic Sourcing: A systematic approach to procurement that aims to optimize supplier selection and contract negotiation to achieve long-term benefits.

Supply Chain Management (SCM): The planning, coordination, and control of the flow of goods, services, and information from the point of origin to the point of consumption.

Shipping Label: A label attached to a package or shipment containing relevant information for transportation and delivery.

Shipping Weight: The total weight of goods and packaging materials, excluding the weight of the shipping container.

Standard Operating Procedures (SOP): A set of written instructions and guidelines for performing specific tasks or operations.

Supply Chain Visibility: The ability to track and monitor the movement of goods and information throughout the supply chain.

Sustainable Logistics: The practice of optimizing logistics operations while minimizing environmental impact and resource consumption.

Supply Chain Optimization: The process of enhancing supply chain efficiency and performance through strategic planning and analysis.

Shipping Manifest: A document that provides a detailed list of all items included in a shipment, generated and managed using cloud-based logistics software.

Shipping Label: Labels containing information about the destination and handling instructions for a shipment, generated and printed using cloud-based logistics software.

Transportation Management System: A visibility and tracking platform with modern technology to give an overview of the entire supply chain along with automation opportunities integrated is a transportation management system. Softwares like LogiNext MIle are examples of TMS 2.0. 

Transportation Automation Platform: An end-to-end all-mile logistics platform that helps an organization to have complete visibility and tracking capabilities over its supply chain from procurement to packaging of goods to deliveries and handling customer experience is Transportation Automation Platform.  [What is LogiNext Mile?]

Trip Planning: The accounting of various factors like capacity, resource availability, weather conditions, SLA (service level agreements), and such to develop an efficient plan for deliveries is called Trip Planning. 

Third Party Logistics (3PL or TPL):  In the Logistics Management parlance, third-party logistics are businesses to whom organizations outsource elements of their warehousing, deliveries, distribution, and such services. 

Transportation: The movement of goods or people from one location to another, using various modes such as road, rail, air, sea, or pipeline.

Truckload (TL): A shipment that fills an entire truck trailer, usually for a single customer or destination.

Transshipment: The transfer of goods from one transportation vehicle or mode to another during the journey to the final destination.

Temperature-Controlled Logistics: The transportation and storage of goods under controlled temperature conditions to preserve their quality and integrity.

Tracking Number: A unique identifier provided to customers to monitor the status and location of their shipment.

Temperature Data Logger: A device used to monitor and record temperature variations during transportation and storage.

Transloading: The process of transferring goods from one mode of transportation to another, managed and scheduled using cloud-based logistics software.

Trade Compliance: Ensuring that logistics operations adhere to all regulations and requirements for international trade, monitored and managed using cloud-based software.

Total Cost of Ownership (TCO): The comprehensive calculation of all costs associated with owning and managing assets, analyzed and optimized using cloud-based software.

Truck Appointment Scheduling: Scheduling appointments for trucks to pick up or deliver shipments at specific times, managed through cloud-based logistics software.

Unloading: The process of removing goods or cargo from a transportation vehicle, such as a truck, ship, or aircraft.

Unit Load: A quantity of goods or materials secured together for handling, transportation, or storage as a single unit.

Urgent Shipment: A time-sensitive shipment that requires immediate attention and delivery.

Unconsolidated Shipment: A shipment where goods are sent separately, without being combined with other shipments.

Unclaimed Goods: Goods that have not been collected by the recipient within a specified time period after delivery.

Unitization: The process of consolidating smaller items into larger units for more efficient handling and transportation.

Unscheduled Maintenance: Repairs or maintenance activities that were not planned in advance and are performed on an as-needed basis.

Unified Data: The integration and consolidation of data from various sources into a single, accessible format within cloud-based logistics software.

Utilization Rate: The percentage of time that a transportation asset, such as a truck or warehouse, is actively used, calculated, and monitored using cloud-based software.

User Permissions: The authorization levels assigned to users of cloud-based logistics software, determine their access to different features and data.

Urgent Shipment: A time-sensitive shipment that requires immediate attention and prioritization, managed and coordinated using cloud-based logistics software.

Upstream Supply Chain: The portion of the supply chain that involves suppliers and raw materials, monitored and integrated through cloud-based software.

Unallocated Inventory: Inventory that has not been assigned to a specific order or destination, managed and accounted for through cloud-based logistics software.

Urgent Order Handling: The prioritization and expedited processing of urgent customer orders, facilitated by cloud-based logistics software.

Unconsolidated Shipment: A shipment that consists of multiple individual orders or items, managed and consolidated using cloud-based logistics software.

Visibility Platform: A logistics management software that gives complete sight of the supply chain to an organization with actionable insights is a visibility platform. LogiNext Mile is an all-mile transportation platform a part of which can be used as a visibility platform. 

VRS (Vehicle Routing and Scheduling): VRS is used by enterprises in the CEP (Courier, Express, and Parcel) and eCommerce/Retail space to optimize and automate their first-mile and last-mile deliveries. Vehicle Routing and Scheduling are usually achieved by using AI and ML-powered SaaS platforms like LogiNext Mile. 

Vehicle Routing: The process of determining the most efficient routes for transportation vehicles to deliver goods.

Volumetric Weight: The weight calculated based on the volume of a shipment, especially relevant for lightweight, bulky items.

Value Chain: The series of activities and processes that add value to a product or service from the initial production to the final delivery.

Variance Analysis: The examination of differences between expected and actual performance or outcomes in logistics operations.

Vertical Integration: A strategy where a company acquires or controls different stages of the supply chain, from raw material suppliers to end customers.

Vendor Compliance: The adherence to specific requirements or standards set by a customer or retailer for suppliers and vendors.

Ventilated Container: A container with openings or vents to allow air circulation and maintain proper ventilation for certain cargo types.

Vendor-Managed Inventory (VMI): An inventory management system where the vendor is responsible for maintaining the customer’s inventory levels, integrated with cloud-based logistics software.

Virtual Warehouse: A concept where the inventory is tracked and managed electronically, even though the physical warehouse might be outsourced or shared.

Vendor Compliance: Ensuring that suppliers adhere to specific standards and requirements, monitored and managed through cloud-based software.

Vehicle Tracking System: Using cloud-based logistics software to track and monitor the location and movement of vehicles in real-time.

Value Chain Management: The strategic coordination and optimization of all activities involved in delivering value to customers, supported by cloud-based logistics software.

Volume Discount: A price reduction offered based on the quantity of goods ordered, managed, and applied through cloud-based logistics software.

Warehouse Management: The process of planning and organizing a warehouse for optimal utilization is called warehouse management. Warehouse Management Systems are cloud-based software that helps organizations manage logistics efficiently. 

Warehouse Automation: The process of having machines perform repetitive tasks by bringing in digitization and robotics to make logistics more efficient is called warehouse automation.

Webhook: In simple language, webhook is a way in which one web application can speak with another in an automated fashion. In the logistics parlance, if a company wants to use a modern technology platform like LogiNext Mile on top of an existing older system without removing it, webhook can be used.

Warehouse: A facility used for the storage, handling, and distribution of goods and materials.

Waybill: A document that accompanies a shipment and provides details about the contents, origin, and destination of the goods.

Waiting Time: The time that a transportation vehicle or shipment spends in a queue or line, waiting for processing or service.

Warehousing Costs: The expenses associated with running and maintaining a warehouse, including rent, labor, and utilities.

Workflow Automation: The process of using cloud-based logistics software to automate repetitive tasks and streamline logistics processes.

Warehousing Optimization: Using cloud-based software to maximize the efficiency and productivity of warehouse operations.

Workforce Management: The efficient planning and scheduling of logistics personnel and resources using cloud-based software.

Web Services: Application programming interfaces (APIs) are used to connect cloud-based logistics software with external systems and platforms.

Weather Alerts: Automated notifications are provided by cloud-based software to alert logistics operators about adverse weather conditions that may impact shipments.

Warehouse Inventory Management: The process of efficiently tracking and managing inventory within a warehouse using cloud-based software.


X-Dock: A cross-docking facility where goods from inbound trucks are directly transferred to outbound trucks without being stored in the warehouse.

Xpress Bill of Lading (XBL): A type of bill of lading used in the motor carrier industry for expedited shipments.

XML (Extensible Markup Language): A markup language used to encode and store data in a structured format, facilitating data exchange and integration between different systems, including cloud-based logistics software.

X-Dock Yard Management: The management and optimization of yard operations at cross-docking facilities, supported by cloud-based logistics software.

Yard Management: The process of efficiently managing and coordinating the movement of trucks, trailers, and containers within a transportation yard or terminal.

Yield: The ratio of output to input for a specific logistics process or operation, measured and analyzed using cloud-based logistics software.

Yield Management: A pricing strategy used in transportation and logistics to optimize revenue by adjusting prices based on demand and capacity.

Yard Check: The process of verifying the presence and status of trailers or containers in the yard, tracked and managed through cloud-based logistics software.

Yellow Zone: A designated area in a warehouse or facility indicating caution or a potential issue, monitored and managed using cloud-based logistics software.

Yard Jockey: A driver responsible for moving trailers and containers within a yard or facility, their tasks tracked and scheduled using cloud-based logistics software.

Yield Variance: The difference between the actual output or revenue and the expected output or revenue, analyzed and addressed through cloud-based logistics software.

Yard Spotters: Personnel or equipment dedicated to positioning and organizing trailers or containers in the yard, coordinated and scheduled using cloud-based software.

Yard Utilization: The efficient use of yard space and resources to maximize capacity and minimize congestion, analyzed and optimized using cloud-based logistics software.

Zone Skipping: A logistics strategy where goods are transported directly from one geographic zone to another, bypassing intermediate distribution centers, coordinated and optimized using cloud-based logistics software.

Zero Inventory: A state in which there is no inventory of a particular item or product, either intentionally or due to complete depletion.

Z-Curve: A graphical representation of the statistical distribution of demand or sales data over time, showing patterns and trends.

We will keep updating the post to keep it fresh and absolutely relevant! 

102 Subscribe