1 / 12

Essential Logistics Terms That You Must Know

Learn the essential logistics terms that you must know ! Our guide will guide you the essential terms used in the shipping and supply chain industry.

saglogisitics
Download Presentation

Essential Logistics Terms That You Must Know

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. 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, it’s essential to study and master the industry’s core concepts. By doing so, you’ll be better equipped to navigate the logistics landscape with confidence and make informed decisions that drive success for your business.

  2. 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.

  3. 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.

  4. 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.

  5. 4. Crowdfunding • Crowdfundingis 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.

  6. 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.

  7. 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.

  8. 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. 

  9. 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.

  10. 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.

  11. 10. OS&D • An OS&D 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.

  12. Get In Touch Address:- 1202, Level 12, Fahidi Heights - AWR Properties, Dubai, United Arab Emirates Contact No:- +971 43494262,+971 54 792 8524,+91 98580 20562,+971 55 665 8178 Email :-info@saglogistic.com Website:- www.saglogistic.com Read Blog :- Essential Logistics Terms That You Must Know 

More Related