Logistics is a constantly evolving field, with its fair share of jargon, acronyms and technical terms. As we kick off the year, we’ve put together a comprehensive logistics glossary to help you make sense of it all — from A to Z!
A
APS – Advanced Planning System
A system designed to optimise supply chain planning, including inventory, production and replenishment.
B
Barcode
A visual code that can be scanned to retrieve product information.
Bill of Materials (BOM)
A list of all the components and materials required to manufacture a finished product.
Buffer Stock
Extra inventory held to manage uncertainties like delays or spikes in demand.
C
Cartoning (Packaging)
The process of grouping and protecting products for shipment.
Carrier / Haulier
A company or subcontractor responsible for transporting goods.
Chartering
The hiring of transport means (e.g. lorry, train, ship, aircraft) to move goods.
Cross-docking
A logistics method where goods are received and immediately dispatched without storage.
D
DDMRP – Demand Driven MRP
A demand-based planning method to improve responsiveness and flexibility.
Delivery Note
A document summarising the goods delivered, signed upon receipt.
Dispatching
The process of sending out goods from a warehouse or depot to their destination.
E
EDI – Electronic Data Interchange
The automated exchange of business documents (orders, invoices…) between information systems.
End-to-End Supply Chain
A view of the entire supply chain process — from supplier to end customer.
eXtensible Markup Language (XML)
A data format often used in EDI to structure information for exchange.
F
FIFO – First In, First Out
Stock management method: oldest items are used or sold first. Standard for perishables.
Freight
The goods transported, or the cost of transporting them.
Fulfilment
The complete process of receiving, processing and delivering customer orders.
G
Goods-In
The area and process of receiving stock into a warehouse.
Goods-Out
The area and process of dispatching goods from a warehouse.
GPA – Vendor Managed Inventory (VMI)
A collaborative inventory model where the supplier manages stock levels for the customer.
H
Handling Unit
A physical container (pallet, crate, box…) handled as a single unit in logistics operations.
Hub (Logistics Hub)
A central point where goods are consolidated or redistributed.
I
Inventory
The goods and materials a business holds in stock.
Inventory Counting / Stocktaking
The process of physically counting items in stock.
IoT – Internet of Things
Connected devices collecting real-time data (location, temperature, etc.) in logistics.
J
Just-in-Time (JIT)
A stock management strategy where goods are received or produced just in time to meet demand.
K
Kanban
A visual signal system (cards, boards…) for managing production or restocking tasks.
L
Lead Time
The time between placing an order and receiving the goods.
LIFO – Last In, First Out
Stock method: newest items are dispatched first — not ideal for perishables.
Logistics Margin
The difference between logistics costs (transport, storage…) and the sale price of the product.
Logistics Node
A key strategic location in a supply chain where goods converge (e.g. port, warehouse, distribution centre).
M
Material Handling
The movement, protection, storage and control of materials in a warehouse or production facility.
N
Network Optimisation
The process of improving the configuration of logistics facilities and routes for cost and time savings.
O
On-Time Delivery (OTD)
A KPI measuring the percentage of orders delivered on time.
Order Preparation
The process of picking, packing, and preparing goods for shipment.
Order Processing
The full workflow from receiving an order to dispatching it.
Out-of-Stock (Stockout)
When an item is unavailable for sale due to depleted inventory.
P
Picking
Retrieving items from inventory to fulfil an order.
Procurement
The process of sourcing, ordering, and receiving goods.
Product Traceability
Tracking a product through each stage of the supply chain.
Q
QR Code
A two-dimensional code that can store more data than a barcode; used in tracking and inventory.
R
Reverse Logistics
The process of managing returned goods, recycling, or reconditioning.
RFID – Radio Frequency Identification
Contactless tracking technology using radio signals.
S
Safety Stock
Buffer inventory to avoid stockouts due to unforeseen events.
SCM – Supply Chain Management
The tools, strategies and technologies used to manage and optimise supply chains from end to end.
Slotting
Strategic placement of products in a warehouse to optimise picking speed and space usage.
Stock Management
Monitoring and controlling inventory levels, movements, and storage.
T
TMS – Transport Management System
Software that plans, executes and monitors transport operations efficiently.
Traceability
The ability to track goods and materials at every step of the supply chain.
U
Unit Load
A single item or group of items handled as one (e.g. a pallet).
V
Value-Added Logistics
Extra services like labelling, kitting, custom packaging, offered as part of the logistics process.
W
WMS – Warehouse Management System
Software that controls and optimises warehouse operations (stock, picking, dispatch, etc.).
👉 Example: Satelix WMS, designed for SMEs.
Warehouse
A facility where goods are stored before being distributed.
Y
Yield Management
Maximising the profitability of limited resources (transport, warehouse space) based on demand forecasting.
Z
Zone Picking
A picking method where each operator handles a specific area of the warehouse.
Conclusion
This logistics glossary offers a clear overview of key concepts in a constantly changing industry. Whether you’re a logistics manager, IT director, supply chain leader or warehouse supervisor, knowing this terminology will make you more agile and effective.
And if you’d like to explore more, take a look at our first article on logistics essentials 👇
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