A Beginner’s Guide to Logistics Terminology and Acronyms

If you’re new to the logistics industry, you may be overwhelmed by the sheer number of acronyms and technical terms used in the field. From FOB to LTL to WMS, it can be hard to keep track of what all the terms mean. To help you out, this article will provide a comprehensive guide to the logistics terminology and acronyms that you need to know. Let’s get started!

A strong understanding of logistics terminology can help you better understand and communicate with partners throughout the supply chain. Knowing key terms such as Cross Docking, Consolidation, Distribution and Just-in-Time (JIT) delivery allows you to speak the same language with your partners.

Cross Docking refers to the process of unloading items from inbound transportation and loading them onto outbound transportation – without any intermediate storage.

Consolidation is the process of combining multiple orders of small quantities into one shipment to reduce costs.

Distribution is the movement of products and materials from one or more sources to the ultimate customer or end user.

Just-in-Time (JIT) delivery is a method of delivering goods at the exact time they are needed by the customer and not before.

Commonly used acronym in logistics is LTL, which stands for Less Than Load. This term is commonly used to refer to delivery services that involve delivery of goods that don’t fill an entire trailer. This delivery service is often used by businesses who don’t need to ship large volumes of goods all at once and so keep costs down. LTL delivery services are a convenient way for businesses to make sure their delivery needs are met without breaking the budget.

FTL, or Full Truck Load, is another widely used term in the industry. It refers to a large quantity of goods that are shipped as one single unit, as opposed to LTL which is when multiple shipments are loaded onto the same truck. When warehouses need to transport goods, they usually rely on FTL shipments so they can be sure that the whole shipment will arrive at the destination at the same time. This kind of transportation is extremely important for warehouses and other businesses that rely on timely deliveries.

Many logistics companies also use TMS, or Transportation Management System, to streamline their operations and optimize shipments.

Last Mile Delivery refers to the transportation and delivery of goods to their final destination.