Essential Logistics Terms That You Must Know

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Logistics is an industry filled with
abbreviations and technical jargon that can be
overwhelming for newcomers or those transitioning
between different specialties. However, having a
solid understanding of key concepts and essential
logistics terms is crucial for making informed
decisions that benefit both customers and your
company. To excel in the supply chain,
transportation, or logistics fields, its
essential to study and master the industrys core
concepts. By doing so, youll be better equipped
to navigate the logistics landscape with
confidence and make informed decisions that drive
success for your business.
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Here Know Essential Logistics Terms 
1. Supply Chain

• A supply chain involves the various steps that a
  company undertakes to produce and distribute a
  particular product or service, which typically
  involves several parties, including producers,
  suppliers, warehouses, transportation companies,
  distribution centers, and retailers.
• The supply chain process typically starts with
  the production of the product, which is then
  handed over to a logistics provider acting as a
  wholesaler.

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2. BOL

• The abbreviation BOL is also one of
  the logistics terms refers to the Bill of Lading,
  which is a critical document issued to shippers
  when transporting goods.
• This document contains essential details about
  the contents of the shipment, its destination,
  and other relevant information.
• Essentially, it serves as a receipt for the
  delivery of goods to another port and can also
  act as proof of ownership for pickup or delivery
  purposes.

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3. FCL and LCL 

• FCL and LCL are two commonly used terms in the
  logistics industry, which refer to Full Container
  Load and Less than Container Load, respectively.
• In a Full Container Load, the entire container
  is loaded with goods that are owned by a single
  shipper.
• On the other hand, in a Less than Container
  Load, the shipper does not require the entire
  container and shares the space with other
  shippers.

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4. Crowdfunding 

• Crowdfunding is a relatively new method of
  raising funds for projects by soliciting
  donations from a large number of people,
  typically within a short period of time.
• This method is primarily carried out online,
  usually via social networking platforms such as
  Kickstarter and GoFundMe.
• Crowdfunding has been used by individuals,
  organizations, and businesses to finance various
  projects, including the development of blockchain
  technologies and even the production of movies.

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5. TEU and FEU

• When it comes to shipping containers, TEU and
  FEU are two acronyms used to describe their
  sizes.
• TEU stands for Twenty Foot Equivalent Unit,
  while FEU stands for Forty Foot Equivalent Unit.
• While various boats and ports may need various
  cargo containers, TEU is the common base stature
  used to determine the capacity of cargo ships.

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6. 3PL 

• 3pl logistics, refers to the practice of
  outsourcing logistics services to a third party.
• These services may contain warehousing,
  distribution, transportation, and fulfilment.
• By relying on a third party for these services,
  businesses can focus on their major competencies
  and leave the logistics to the experts.

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7. CIF

• The acronym CIF stands for Cost, Insurance, and
  Freight, which refers to a trade term in which
  the seller provides the cost of transportation
  and shipping insurance for the buyer.
• It is important to note that this does not cover
  all costs, as the buyer is still responsible for
  import duties and local delivery charges.
• CIF is commonly used in international trade,
  particularly for those who import goods from
  countries. 

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8. COGS 

• The term COGS stands for Cost of Goods Sold,
  which refers to the direct costs involved in
  manufacturing a product.
• These costs typically include raw materials,
  packaging, and direct labor costs associated with
  producing or selling the goods, excluding other
  expenses such as marketing.

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9. VAT 

• VAT stands for Value-Added Tax, and it is an
  important tax for logistics providers to
  consider.
• It is essentially a tax on the consumption of
  goods and services.
• The seller or producer pays the tax, but it is
  ultimately passed on to consumers through higher
  prices.
• Over 160 countries use a VAT system, with many
  in the EU.
• Instead, it relies on a sales tax, which varies
  by district or state.

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10. OSD 

• An OSD Report is a document completed by the
  recipient to determine whether the received goods
  are damaged, overaged, or short.
• Overage refers to the receipt of more products
  than what was expected, while shortage means
  receiving less than the required amount.
• Damaged goods are those that have scratches,
  cuts, or other types of damage that render them
  unusable.

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