In today’s world, everything has become fast and easy. For example, if you want to deliver something to your loved ones who are staying away from you, all you need to do is contact a logistics company that can deliver them to their location.

However, if you are not a part of the logistics industry, it might not be possible for you to know all the terms that are associated with logistics delivery. In case you want to know about these essential terms, you have come to the right place.

Keep on reading this article till the end to learn more…

What Is The Meaning Of Logistics?

Before explaining the terms that are associated with logistics delivery, you should know the meaning of the word logistics.

Logistics is the process of ensuring that resources are acquired, managed, stirred, and ultimately transported or delivered to their destination.

The entire process of logistics involves a lot of steps. Some of them are getting to know the right suppliers and distributors to get the work done.

Nowadays, people generally use the term logistics for courier service. However, logistics specifically refers to all the minor and major processes that are involved with the delivering a product from businesses or companies to clients.

As many people are buying online and e-commerce has seen a flourishing decade in the world, logistics delivery companies have become extremely essential.

Essential Logistics Delivery Terms That You Should Know

There are many processes that are involved before a particular product is tendered to the delivery service provider. While it is impossible for people who are not a part of the logistics industry to know each and every word by heart, there are still many words that you should know the meaning of.

Here is a list of some of the essential logistics delivery terms that you should know about:

1. Consignee

The first and the most important term that you should know when it comes to the logistics company is the consignee. The consignee is the person who has the details about everything related to the product. If you are the person who has imported the goods, you are to be regarded as the consignee.

They know about every little detail regarding the shipment. For example, if the origin post is preparing shipment or not. They will also know if the item is currently in transit to the destination or has reached the receiver.

2. Landed Cost

The total cost of a particular product from the point of its inception to the time when it is delivered is called the landed cost.

This means that the landed cost includes not only the base cost of the product creation but also the cost of each and everything that is related to the smooth delivery of the package to the destination. It includes the cost of insurance, taxes, handling fees, and many other things.

3. Carrier

It can be the transportation means of the company or the company itself. The carrier is entitled to transport the goods or the shipments through airways, waterways, or roadways. These carriers are the ones who work with shippers to ensure that the product is shipped to the receiver without failure.

4. Bar Code

Barcode or bar code is something that we all know about. It is a small image with numerous bars or lines in spaces. While some of the bars are thick, some are thin. These codes are needed to scan the identification number of a particular product or item.

In the line of logistics, it is one of the most important things that is placed on a product. It helps to designate the unit that is to be transported. These codes are also the ones that contain several other essential information regarding the package or shipment.

5. 3PL

3PL stands for third-party logistics. These are third-party providers that help to provide the clients and the businesses with logistics services. It helps the companies to disperse as well as procure any shipment.

One of the best examples of 3PL companies is Amazon. It is the largest 3PL or third-party logistics service provider in the world.

6. WMS

Warehouse Management System or WMS is the process in which software is put to use to fulfill the process of logistics delivery. This means, in this system, the software is employed to store, replenish, and manage the items or goods that are to be shipped or delivered.

The best part about this system is that it helps to provide visibility into the inventory of the business.

7. Cross Dock

Cross dock or cross-docking is the process in which goods are unloaded from the delivery vehicles that are inbound. These goods are then added directly to the outbound vehicles.

This is one of the best methods by which you can make the supply chain leaner and more concise. It is the best form of shipment for all kinds of businesses who wish to speed up the fulfillment process of the order. It is also great when it comes to reducing the cost of shipment.

8. FCL

The term FCL stands for Full Container Load. Unlike LCL (which you will read below), the FCL is a shipment in which the cargo occupies a large area.

This means that this type of delivery method is used for bigger shipments. The goods are not a lot in number, but they are big enough to fill the container.

9. SKU

The full form of SKU is Stock Keeping Unit. It is more like an identifier that each and every merchant has for their product.

It is one of the most important pieces of information for a product that helps to keep the stock levels on track. The SKU of a product is a bar code that is machine-readable.

10. LCL

The term LCL stands for Lesser than container load. It is a form of service that takes care of the shipments of small volumes.

This means that if there are shipments in a small volume, with the help of LCL, they can be consolidated with other shipments that are the largest in volume. This is one of the most economical ways to ship small shipments.

Read Also: UPS Label Created – What Does It Mean?

11. Bill Of Lading

The legal document that serves as the contract between the service provider and the cargo owner is called the Bill of Lading.

It is the list that contains all the details about the ship’s cargo. The master on deck generally gives this receipt to the individual who is responsible for consigning the commodities.

12. NVOCC

NVOCC stands for Non-Vessel Owning Common Carrier. The NVOCC acts as a virtual carrier that is able to issue its own BOL or bill of lading.

The NVOCC is something that is bound to maintain a regulated tariff. The NVOCCs are known to sell container space or cargo to their customers from mainland transportation vessels.

Bottom Line

Logistics is the entire process of managing the resource from their origin to their delivery to the desired destination. While it is impossible for people who are not a part of the logistics industry to know all the terms that are associated, we should know at least some of them.

In case you were searching for some of the essential logistics delivery terms that you should know about, we hope that you find this article to be of help. Also, if there are any other queries related to the same, feel free to comment them down in the box.