9 Must-Know Terms Related to Logistics


9 Must-Know Terms Related to Logistics

Logistics is a critically important term in business operations. It encompasses the processes of planning, implementation, and controlling the flow of goods, services, and related information to effectively and efficiently achieve desired objectives.

IntBizTH has compiled 9 must-know terms related to logistics for you

9 Must-Know Terms Related to Logistics

9 Must-Know Terms Related to Logistics

1.Supply Chain

Refers to the processes that create a product, whether procurement, manufacturing, storage, information technology, distribution, and transportation, from before and after production until it reaches the consumer.

2.Reverse Logistics

Refers to the process of managing the return of goods from the consumer back to the manufacturer, whether due to recalls, damages, defects, or end-of-life, with the aim of extracting remaining value or proper disposal.

3.Multimodal Transport

Refers to the transportation of goods using multiple modes, commonly a combination of ship, truck and rail, often used for international shipping over long distances or indirect routes.

4.Cross-Dock Warehouse

Refers to a warehouse facility used for concurrently receiving and shipping goods, in order to transfer items directly from one transportation vehicle to another

5.Freight Forwarder

Refers to an agent/intermediary between exporters, importers, and shipping lines/airlines, responsible for arranging international shipments (without owning vessels/aircraft), as well as handling customs clearance on behalf of importers/exporters by preparing and submitting shipping documents to customs, ensuring inspection/release, and delivering inbound shipments or sending outbound.


Refers to the sale of goods or services to consumers through various channels for profit and to meet demand. Retail occurs substantially online, with payments via various channels including cash-on-delivery and shipment via transport companies.

7.Distribution Center

Refers to a warehouse facility of a particular company, designed specifically to facilitate the inbound and outbound flow of goods, receiving orders, procuring inventory and shipping to consumers.

8.Supply Chain Management

Refers to the integration, planning and management of all activities involved in sourcing, procurement, and delivery of products to customers, including conversion and overall management of material, goods, information and financial flows across the delivering organization.

Understanding these terms will allow you to effectively plan and manage your logistics system, reduce costs and ultimately increase customer satisfaction.

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