Logistics Terms Explained





Here we’ll strive to define some commonly used logistics terms. Logistics has evolved to a greater extent than ever thought possible and this has been attributed mainly due to the modern business enterprises which have focused attention on its development. Logistics can be defined as delivering products at the right time, for a right price, at the right place and in the right condition. The role of the manager of the logistics department is to handle the various related tasks and to assign responsibilities that pave the way for logistics to be recognized as an integral part of any organization.

There are some logistics terms which relate directly to the concept, and any aspirant who wants to have a deep insight into the overall procedure of logistics must be aware of these frequently used phrases.

Certificate of Origin: This refers to a certified document that is used in foreign commerce with regard to the origin of goods. This document certifies that the products which are ready to be exported have been manufactured in a specific geographical location and country. This certificate is sent to the importer by exporter of the product. This may be beneficial in claiming any concessions. This certificate needs to be signed by the exporter of the product and needs to be certified by the local chamber of commerce.

Warehousing: This is the procedure of storing goods at a safe and clean place for the purpose of safeguarding the goods and may involve keeping goods to be sold at later stage. This can be described as a place or store where merchandise or products are kept. It is done for safe keeping of goods, usually for sale at a later time.

Distribution: a common logistics term that refers to a process of the movement of people, services and resources to the place of their consumption or where they are required. This usually involves storage, transportation, issue and disposal of goods.

Transportation: Refers to the movement of supplies, goods, people and equipment by any mode of transport such as rail, trolley, water or air. This is considered to be important aspect of any organization as timely delivery of products ensures customer satisfaction and brand name for organization. The mode of transportation may be dependent on several factors like customer requirements and specifications, past experiences, speed and geographical locations.

Consignor: Is a person who makes the shipment of goods for the purpose of delivering the same by any mode of transport such as sea, land or air. Also known as shipper or sender. He is usually liable for hiring the transportation vehicle for the goods sent by shipment to be delivered to the consignee. In a transaction based on credit, he has the right to stop the goods in transit.




These are just a few of the logistics terms used regularly by those in the field. Should you either become employed or engage in a course of study in logistics, you’ll learn many more.