You cannot survive if you don’t speak the language of the area. Grab a phrasebook to familiarise yourself with the fundamentals before travelling to a location where the language is strange to you. The ability to communicate in a new environment requires knowing words like “hi,” “goodbye,” “please,” “thank you,” and of course, “where is the bathroom?” When you master the fundamentals of a language, you have a solid basis upon which to develop, and before you know it, you’re wowing the locals with your communication skills.
Beginning in a new industry can present similar difficulties. Every industry has its own jargon, novel terminology, and acronyms that may be confusing to you at first. The vocabulary used in the logistics sector is particularly distinctive and might make newcomers feel bewildered. There are many Institutes like SLMT that provides Shipping and logistics courses which are the best Logistics Courses in Kerala. These courses help a candidate to understand the industry terminologies.
If you’d want to enter the room with a bit more skill and assurance, we’ve compiled a list of supply chain terminologies and acronyms that are widely used in the logistics industry. Every small piece can help to improve your early experiences in the field.
20 acronyms and words related to logistics
To help you advance your understanding, let’s start learning a range of supply chain and logistics words and abbreviations.
Logistics versus supply chain management
It’s important to know the difference between supply chain management and logistics. A element of the supply chain called logistics is concerned with how a product is physically delivered to and from its destinations. Logistics are a part of supply chain management, but it also deals with production, procurement, and related financial activities.
2. Business-to-business (B2B)
B2B refers to the distribution of goods from one firm to another in the context of logistics. Business-to-business (B2B) shipments differ from business-to-consumer (B2C) shipments in that they often entail larger orders and have a longer-term working relationship between businesses.
3. Business to consumer (B2C)
Direct product distribution from a business to a customer is referred to as B2C. Contrary to B2B shipping, B2C transactions typically entail smaller, less regular purchases.
4. Intermodal transportation
Intermodal transportation is the practise of transferring cargo using a variety of modes of transportation (ships, railways, planes, etc.).
5. Reverse logistics
The practise of transferring items from buyers back to sellers is known as reverse logistics. The process may be completed with either the distributor or the manufacturer, depending on the exact justification for the return. Reverse logistics often involves the utilisation of products for recycling or resale.
6. General Agreement on Tariffs and Trade(GATT)
GATT is a post-World War II trade pact that assisted in lowering trade restrictions and tariffs among nations. Because GATT keeps the average tariff rate between participating nations at roughly 5%, it has had a significant impact on logistics to this day.
7. Sender and recipient
The entity sending the items is known as the consignor, while the person or business receiving them is known as the consignee. The consignee may also act as a middleman, keeping the items to resell to a third party or end consumer.
8. Delivery evidence (POD)
POD is the procedure used to establish the paperwork proving that the supplier, distributor, and client all received the items. This paperwork enables the precise accounting of all the products being carried.
9. Bill of Lading
The bill of lading is located on the reverse of the proof of delivery. The official document that shippers have that contains details about the goods is the bill of lading. Before signing the proof of delivery, the consignee will compare the bill of lading to the shipment they really received.
10. Value-added tax (VAT)
VAT is a tax that assesses the product’s value at every stage of shipment, from the raw materials used in production to the ultimate sale. This tax is levied at different points along the supply chain. It is significant to remember that while the United States does not normally impose a VAT tax on imports, the European Union does.
11. Load tender
Offering cargo to various carriers in an effort to compare prices is known as load tendering. The importance of this procedure lies in its capacity to let shipping businesses consider offers while preserving their option to accept or reject the service.
12. unit load apparatus (ULD)
A ULD is a tool for gathering and constricting cargo for air transportation. For the transportation of various pallets and containers, each ULD has a special code.
13. Tare weight as compared to gross weight
The weight of an empty car or container is its tare weight. Gross weight is the sum of the package or shipment’s weight, including the weight of the container.
In the logistics sector, electronic data exchange (EDI) is a significant “paper replacer.” By using EDI, firms may process and deliver documents like purchase orders and invoices electronically as opposed to providing all information on paper.
15. Authentication document
A certificate of origin is a record that identifies the nation in which a specific commodity was made, manufactured, or processed. It will include the exporter, consignee, shipping route, and description of the products.
16. All Kinds of Freight (FAK)
Products with multiple freight classifications can be shipped together thanks to the FAK categorization. Because it enables higher-class commodities to travel alongside other goods at a lesser cost, this wide classification is advantageous.
17. Twenty-foot equivalent unit (TEU)
To assess exactly how much goods can fit aboard container ships and terminals, TEU is employed. The TEU calculation will be used by shipping companies to provide pricing.
18. Yard of containers
Before and after sailing, cargo is kept in a container yard. The organising and processing that take place at a container yard is a crucial step in the logistics process, whether containers are entering or exiting.
19. fewer than a truckload (LTL)
LTL, a typical logistics abbreviation for relatively tiny loads or amounts of freight, is used to describe their shipping. LTL services can play a significant role in cost savings for companies that want to send small items.
20. Freight forwarder
A freight forwarder is a business that acts as a go-between between the firm sending the goods and their final location. Freight forwarders typically purchase huge amounts of space on ocean carriers at a discounted rate and then manage all of the document procedures to enable the shipment process go smoothly.
A fresh language for a changing world
Studying the terms used in the supply chain is simply the first step in a much longer process of learning the ins and outs of this frequently disregarded industry. There are many different occupations and prospective prospects in the field of supply chain management, as you may have deduced from the terminology, some of which are only open to individuals with specific knowledge and training. To know more about the terminologies, join a Warehouse management course in Kochi