2023 Common Logistics Terms You Need to Know

There are many terms related to logistics, but here are some of the most common:

1. Logistics – process of planning, coordinating, and executing the movement and storage of goods and services from the point of origin to the point of consumption, with the aim of meeting customer requirements and ensuring efficient and effective operations. Logistics involves the integration of various activities, including transportation, warehousing, inventory management, procurement, and distribution, and requires careful planning and management to ensure that goods are delivered to the right place, at the right time, and at the lowest possible cost. Effective logistics is essential for the success of many businesses, particularly those involved in manufacturing, retail, and e-commerce.
2. Supply chain – the network of companies and resources involved in the creation and delivery of a product or service to the end customer.
3. Transportation – the movement of goods or people from one place to another, often using trucks, trains, ships, or planes.
4. Warehousing – the storage of goods in a warehouse or distribution center until they are needed for distribution.
5. Inventory management – the process of managing the flow and storage of goods in a supply chain, including tracking inventory levels and making decisions about when to order new products.
6. Shipping – the process of sending goods from one location to another, often involving the use of shipping containers, pallets, or boxes.
7. Freight – goods transported by a carrier, such as a trucking company or shipping line.
8. Customs – the process of clearing goods through customs or border control when they are transported between countries.
9. Distribution – the process of getting products to customers or retailers, often involving the use of a network of warehouses, transportation providers, and other logistics partners.
10. Logistics planning – the process of coordinating all the various elements of logistics to ensure that goods are delivered on time and at the lowest possible cost.
11. Reverse logistics – the process of managing the return of goods from customers, often involving the handling of defective or damaged products. 
12. 3PL – 3PL stands for “Third-Party Logistics”. It refers to companies that provide outsourced logistics and supply chain management services to other companies such as warehousing and logistics.