Logistics covers a wide range of business activities, including
Transportation, Warehousing, Material handling, Packaging, Inventory management, and Logistics information systems
Direct truck shipment
A shipment made directly, with no additional stops, changing of trucks, or loading of additional cargo.
Less than truckload
A smaller shipment, often combined with other loads to reduce costs and improve truck efficiencies.
Transportation solutions that seek to exploit the strengths of multiple transportation modes through physical, information, and monetary flows that are as seamless as possible.
Specialized rail cars the size of standard truck trailers that can be quickly switched from rail to ground transport by changing the wheels
Any operation that stores, repackages, stages, sorts, or centralizes goods or materials. Organizations use warehousing to reduce transportation costs, improve operational flexibility, shorten customer lead times, and lower inventory costs.
A form of warehousing that pulls together shipments from a number of sources (often plants) in the same geographical area and combines them into larger—and hence more economical—shipping loads
A form of warehousing that combines classic warehouse operations with light manufacturing and packaging duties to allow firms to put off final assembly or packaging of goods until the last possible moment.
A form of warehousing in which a wide array of goods is held close to the source of demand in order to assure short customer lead times.
Spot stock warehousing
A form of warehousing that attempts to position seasonal goods close to the marketplace. At the end of each season, the goods are either liquidated or moved back to a more centralized location.
Material handling systems
The equipment and procedures needed to move goods within a facility, between a facility and a transportation mode, and between different transportation modes (e.g., ship-to-truck transfers).
From a logistics perspective, the way goods and materials are packed in order to facilitate physical, informational, and monetary flows through the supply chain.
A functional strategy that ensures that an organization's logistics choices— transportation, warehousing, information systems, and even form of ownership—are consistent with its overall business strategy and support the performance dimensions that targeted customers most value.
Also known as public carriers; transportation service providers who handle shipments on a case-by-case basis, without the need for long-term agreements or contracts.
Transportation service providers who handle shipments for other firms based on long-term agreements or contracts.
Service firms that handle all of the logistics requirements for other companies.
A term used to refer to the timely, error-free provision of a product or service in good condition.
The cost of a product plus all costs driven by logistics activities, such as transportation, warehousing, handling, customs fees, and the like
An agent who serves as an intermediary between the organization shipping the product and the actual carrier, typically on international shipments
An agent who handles customs requirements on behalf of another firm. In the United States, customs brokers must be licensed by the Customs Service.
Reverse logistics system
A complete supply chain dedicated to the reverse flow of products and materials for the purpose of returns, repair, re-manufacture, and/or recycling.
Weighted center of
A logistics decision modeling technique that attempts to identify the "best" location for a single warehouse, store, or plant, given multiple demand points that differ in location and importance
A class of mathematical models used when the user seeks to optimize some objective function subject to some constraints.
A quantitative function that an optimization model seeks to optimize (maximize or minimize).
Within the context of optimization modeling, quantifiable conditions that place limitations on the set of possible solutions. The solution to an optimization model is acceptable only if it does not break any of the constraints.
A specialized form of optimization model that attempts to assign limited capacity to various demand points in a way that minimizes costs.
Within the context of optimization modeling, those variables that will be manipulated to find the best solution.