There are many industry terms in the logistics world! We've put together this short logistics glossary to help you familiarize yourself with some common terms and concepts you may encounter.
3PL: Sourcing and arranging many services on behalf of clients, from shipping to warehousing and everything in between. Learn more here.
Bullwhip Effect: Companies must constantly predict what customers want to buy. Without a crystal ball, they must make forecasts based on other factors such as industry trends, supply chain structure and inventory. The bullwhip effect is a term used to describe when this complex transport process is disrupted. Learn more here.
Digital Freight Brokers: Digital freight brokers connect shippers and freight companies through mobile apps or online marketplaces. Learn more here.
Double brokerage: Double brokerage occurs when a freight broker accepts cargo and then hands it to another freight broker without telling the client. Learn more here.
Expedited Shipping: Expedited shipping is a faster method than standard shipping. Typically, expedited shipments do not stop anywhere between the pickup location and the delivery location, resulting in shorter transit times. Learn more here.
Freight Broker: A person or company that oversees efficient shipping and handling logistics. Learn more here.
Cargo Insurance: Gives you extra protection in the event of loss or damage to your cargo. Learn more here.
HAZMAT Shipping: Shipping of hazardous materials. Transporting hazardous materials (HAZMAT) includes not only highly toxic chemicals and nuclear waste. Hazardous items include nail polish, perfume, batteries, and even hairspray. Learn more here.
Inbound Freight: Refers to raw materials and raw materials entering a business from suppliers or suppliers. Learn more here.
Incoterms: Colloquially, Incoterms are just a way of clarifying the roles and responsibilities of those involved in the shipping process. Learn more here.
Industry 4.0: Industry 4.0, also known as the Fourth Industrial Revolution, is the continuous automation of traditional manufacturing and industrial practices using modern smart technologies. Smart factories, 3D printing and smart sensors are just a few examples. Learn more here.
LTL Shipping: Less than full truckload, or "LTL" in industry slang, is a cost-effective alternative for smaller shipments that cannot be fully filled with trucks. Learn more here.
NMFC codes: In the shipping world, the National Motor Freight Classification or NMFC codes are used to help define and regulate products. In LTL shipping. NMFC codes are an industry-wide method of defining shipping rates. Learn more here.
Outbound Freight: Refers to the shipment of finished goods from a business to a customer or distribution channel. Learn more here.
Package Shipping: Package shipping is the shipment of boxed items weighing 100-150 pounds or less, depending on the carrier. These are smaller packages that can be easily moved by a person without assistance. Learn more here.
Transportation Management System (TMS): Global research and consulting firm Gartner defines a Transportation Management System or TMS as a solution "for planning shipments, grading shipments and shopping across all modes, selecting the right route and carrier, and Manage shipping orders and payments." Learn more here.
Full truckload: Full truckload is when the shipper pre-orders a full truck or tractor trailer. The idea is to load the tractor trailer to full capacity. Truck loads are usually picked up at one location and dropped off at another, usually without any stops along the way. Learn more here.
Supplier Verification: Supplier verification is the process of confirming that a supplier is a legitimate entity. Learn more here.
Customodal designs, executes and optimizes transportation logistics programs for businesses of all sizes to support client strategies and enhance client competitive advantage. Carrier negotiation, shipment execution, track and trace, waybill audits, performance scorecards and supply chain visibility are all part of Customodal's added value.
