In this article, learn about:
Common logistics acronyms
Key shipping documents and transportation terms
The supply chain world is full of terms, acronyms, and shorthand—and logistics is no exception. In this article, we’ll break down some of the most commonly used logistics terms to help you navigate the jargon with confidence.
Acronym/Term | Definition |
3PL | Third-party logistics provider. |
Additional services outside of transportation, like liftgate services or inside delivery. | |
Air Freight | The transportation of goods via aircraft. |
Advance Shipment Notice (ASN) | A shipping document that notifies the recipient of an incoming shipment. |
Backhaul | When a truck carries freight on its return trip from a delivery. |
A machine-readable code that is used to identify products or packages in a system. | |
Bill of Lading (BOL) | A shipping document passed between the shipper and the carrier, detailing shipment information. |
Buyer | The person responsible for purchasing goods, often on behalf of a retailer. |
Carrier | The party responsible for transporting goods to a destination. |
Carton | A shipping container, usually made of corrugated cardboard, used to package multiple items. |
Case Pack | The number of identical items packed together in a single case, typically in a box or carton. |
Collect Shipping | Shipping arrangement where the buyer pays the freight charges. |
Consignee | The recipient of a shipment. |
Consignor | The sender of a shipment. |
Consolidation | The process of combining small shipments into one larger shipment, often to reduce transportation costs. |
Container | A large, metal box used to move goods via truck, train, or ship. |
A logistics strategy where goods are transferred from inbound to outbound trucks. | |
Dead Freight | Space on a freight that was booked but not used. |
Deadhead | When a carrier is on route without cargo, typically after a delivery has taken place. |
Direct Store Delivery (DSD) | A fulfillment method where a carrier delivers goods directly to the storefront, instead of a warehouse or distribution center. |
Distribution Center (DC) | A retailer facility, typically a warehouse, that receives and stores goods. |
Dock | The loading and unloading area of a warehouse. |
Drop Ship Delivery | Shipments that are sent directly from the supplier to the customer. |
Drop Trailer | When a trailer is dropped off at a warehouse/facility and will be unloaded at a later time. |
The direct computer-to-computer exchange of standard formatted business transactions between one or more business partners. | |
Full Truck Load (FTL) | A shipping method where a truck’s entire capacity is reserved for one shipment. |
Freight Broker | A freight broker serves as an intermediary between a shipper and a freight carrier. |
Freight Class | A classification system that determines shipping rates based on density, stowability, handling, and liability. |
Global Location Number (GLN) | A unique number that is used to identify a location. |
Hazardous Material | Refers to substances/products that pose health or safety risks when handling or transporting. |
Inbound | An incoming shipment at a warehouse/DC/store. |
Inner Pack | A smaller grouping of products packed inside a case or carton. |
Intermodal | The use of multiple methods of transportation for a shipment. |
ISO 668 | An international standard that defines dimensions and ratings for intermodal shipping containers. |
Landed Cost | The total cost of a product, factoring in purchase price, shipping, duties, taxes, and handling fees. |
Last Mile Delivery | The final leg of a shipment’s journey. |
Lead Time | The time between an order being placed and received. |
Liftgate | A platform on a truck that moves heavy objects from the ground to the height of the truck. |
Live Delivery | A delivery where the truck driver waits while the shipment is unloaded. |
Live Load | A process where the truck driver waits while the trailer is loaded. |
Less Than Truckload (LTL) | A shipping method where freight doesn’t require an entire truck and is combined with other shipments. |
Masterpack | A large outer carton that contains several inner packs. |
Mixed Pallet | A pallet that contains multiple products, instead of a single type. |
National Motor Freight Classification (NMFC) | A system that standardizes freight classes to determine shipping rates. |
National Motor Freight Traffic Association (NMFTA) | The organization that oversees the NMFC and issues SCAC codes. |
Ocean Freight | Freight that is transported via sea. |
Outbound | Refers to a shipment that is leaving a facility. |
Overage | When a retailer receives more product than what was ordered. |
Over, Short and Damaged (OS&D) | Refers to discrepancies in a shipment. |
On Time In Full (OTIF) | A compliance metric that tracks if shipments arrive at the right time and in the right amount. |
OTR (Over-the-Road) Freight | Freight transported via trucks over highways. |
Pallet | A platform, without sides, that is used to stack, store, and move goods. |
Proof of Delivery (POD) | A shipping document that confirms the goods were received. |
PO (Purchase Order) Number | A unique number that identifies a purchase order. |
Prepaid shipping | Shipping method where the supplier pays for the freight costs. |
PRO (Progressive Rotating Order) Number | A tracking number assigned to a shipment by the carrier. |
Rail Freight | Freight that is transported via trains. |
Routing Guide | Shipping instructions/requirements provided by a retailer. |
Standard Carrier Alpha Code (SCAC) | A unique 2-4 digit code that identifies transportation companies. |
Seal Number | Number for a seal/lock placed on trailers or containers to prevent tampering or theft. |
Shipper | The party where a shipment originates from. |
Shortage | When a retailer/consignee receives less product than what was ordered. |
Tariff | Tax imposed on imported or exported goods. |
TI/HI | The pattern in which boxes are stacked on a pallet. |
Trailer | The cargo section of a truck used to transport goods. |
Warehouse | A facility that stores goods until they are ready for distribution or sale. |
Waybill | A document that outlines details of a shipment. |