The most important logistics terms

ABC analysis is a method of classifying goods or customers according to their importance. A goods are very important, B goods are moderately important and C goods are less important. This analysis helps to use resources more efficiently.

Service provider that organizes the transport of goods. The carrier takes over the planning, selection of suitable means of transport and the handling of transport processes, often in cooperation with freight forwarders.

Cross-docking is a logistics strategy in which incoming goods are transferred directly to outgoing shipments without being stored. This reduces storage costs and shortens delivery times.

Distribution logistics includes all processes associated with the distribution of finished products to end customers, including warehousing, picking and packing, and shipping.

Efficiency increase in logistics refers to measures to improve productivity and reduce costs, for example by optimizing transport routes or automatization of processes.

A freight carrier is a company that transports goods by land, sea or air. Freight carriers are responsible for the safe and timely delivery of goods.

Fleet management involves managing and optimizing a fleet of vehicles, including maintenance, route planning and driver management, to minimize operating costs and maximize efficiency.

FTL stands for “Full Truck Load” and refers to a transport in which a complete truck is loaded with goods from a single shipper to be transported directly to the recipient.

The hub-and-spoke system is a logistics network in which goods are transported from various starting points (spokes) to a central transshipment point (hub) and distributed from there. This system optimizes transport routes and reduces costs.

Inbound logistics encompasses all activities associated with the receipt of goods by a company, including the procurement, transport and storage of raw materials and components.

Intermodal transportation is the transportation of goods in a single loading unit (e.g. a container) through several modes of transport (e.g. ship, train, truck) without the goods themselves being reloaded.

Inter-plant transport refers to the transport of goods between different production plants or warehouses of a company.

Inventory management is the planning and control of stock levels to ensure optimal availability of products while minimizing storage costs.

Just-in-time is a production strategy in which materials and products are delivered exactly when they are needed, in order to minimize inventory levels and storage costs.

Kanban is a production control method that aims to optimize the flow of materials in production. It is based on visual control using cards that signal the demand for replenishment.

Part load transport in which several shippers share a truck. Ideal for shipments that do not take up the entire load space, in order to optimize costs and reduce environmental pollution.

Load space optimization refers to the efficient use of available load space in transport vehicles to maximize utilization and reduce transport costs.

Milk run is a logistics strategy in which a vehicle visits multiple suppliers or customers on a fixed route to pick up or deliver goods. This reduces empty runs and optimizes vehicle utilization.

Multi-stop trips are transport trips that call at multiple delivery or pick-up points to increase efficiency and maximize vehicle utilization.

The MRP (Material Requirements Planning) outcome for transportation planning refers to the optimization of material requirements planning to efficiently coordinate transportation demand and maximize utilization of transportation assets.

Order processing includes all steps from the time a product is ordered until it is delivered to the customer. This includes order processing, picking, packing and shipping.

Outbound logistics encompasses all activities associated with the movement of goods out of an organization, including warehousing, picking, and shipment of finished products to customers.

Pallet management involves managing and optimizing the use of pallets in logistics, including tracking, maintenance, and recycling to improve efficiency and sustainability.

Pick and pack is a logistics process in which goods are picked from the warehouse and then packed before being shipped to the customer.

Procurement logistics deals with the planning, control and monitoring of the purchase and storage of materials and goods needed for production.

Route optimization is the planning of the most efficient routes for transportation in order to minimize the distance driven, reduce fuel consumption and shorten delivery times.

Route and tariff optimization refers to the planning and selection of the most efficient and cost-effective transport routes and tariffs in order to minimize overall costs and maximize efficiency.

Companies or individuals who send goods and manage transport logistics. Shippers commission carriers or transport companies to carry out the transports.

Supply chain management encompasses the planning, control, and optimization of all processes along the supply chain, from raw material sourcing to delivery to the end customer.

Strategic logistics refers to long-term planning and decision-making processes aimed at optimizing the entire supply chain, including network design, site selection, and investment decisions.

Supply chain TCO (total cost of ownership) is a concept that considers all costs along the supply chain, including procurement, transportation, warehousing, and disposal, to provide a comprehensive cost analysis.

A transport management system is a software solution for planning, executing, and optimizing transport processes, including route planning, shipment tracking, and cost control.

Route planning is the creation of optimal delivery schedules to maximize efficiency and minimize operating costs.

The supply chain encompasses all the steps a product goes through from raw material extraction to delivery to the end customer, including production, warehousing, and transportation.

Transportation optimization includes all measures to improve the efficiency and effectiveness of transportation processes, including route planning, vehicle utilization, and cost reduction.

Transport-optimized delivery schedules refer to the planning and coordination of deliveries to maximize the utilization of transport capacity and minimize transport costs.

TCO includes all costs associated with owning and operating a product or service, including acquisition, operation, maintenance, and disposal. In logistics, TCO helps to analyze and optimize the total cost of logistics processes.

A warehouse management system is a software solution for managing and controlling warehouse processes, including inventory management, picking, and shipping.

A target time window is a specified period of time in which a delivery should arrive in order to optimize the recipient’s operations and minimize waiting times.