English for logistics and supply chain professionals
Logistics & Supply Chain Vocabulary: 100 Key English Terms
English is the working language of international logistics: bookings, bills of lading, Incoterms, customs codes and status emails between forwarders, carriers and suppliers are written in it every day, and many of its abbreviations are used untranslated in Turkish offices too. This glossary collects the words supply chain teams really use, from purchase orders and pallets to demurrage and ETAs, with Turkish equivalents and examples from daily work. It also shows how Turkish terms such as konşimento, irsaliye, GTİP and parsiyel are expressed in English.
100 terms
12 topics
45 core terms
200 example sentences
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Supply Chain Management
supply chain
noun
Meaning
The whole network of companies, people and activities that turns raw materials into a finished product and moves it to the final customer.
Where you use it
Used everywhere in business, from boardroom reports to warehouse meetings. It often works like an adjective before another noun: supply chain manager, supply chain risk, supply chain team.
Examples
The chip shortage hit every part of our supply chain, from assembly to delivery.
She moved from purchasing to a supply chain role last year.
Common phrases
global supply chain · supply chain management · supply chain disruption · manage the supply chain · short supply chain
The planning and control of how goods are moved, stored and delivered so that they arrive at the right place, at the right time and at the right cost.
Where you use it
Looks plural but takes a singular verb: 'Logistics is…'. Common in job titles (logistics coordinator, logistics manager) and company types (logistics provider). Also used informally for the practical arrangements of any event.
Examples
Our logistics team is handling the move to the new warehouse.
For most of our products, logistics is the biggest cost after raw materials.
Usage note
Stress is on the second syllable: lo-GIS-tics. 'Logistic' without -s is an adjective (a logistic problem), though 'logistical' is more common.
The time between placing an order or starting a process and receiving the finished result, for example from sending a purchase order to the goods arriving.
Where you use it
Used by buyers, planners and suppliers when agreeing delivery dates. People say a lead time is long, short or 'six to eight weeks', and they try to reduce or shorten it.
Examples
The supplier has increased its lead time from four to ten weeks.
What's the lead time on the spare parts if we order today?
Usage note
'Lead' here rhymes with 'need', like the verb to lead, not like the metal lead (led). Lead time is not the same as transit time, which only covers the journey.
Common phrases
long lead time · reduce lead time · lead time of six weeks · supplier lead time · production lead time
Short for third-party logistics: an outside company that a business hires to run part of its logistics, such as warehousing, transport or order fulfillment.
Where you use it
Said 'three P L'. Companies outsource to a 3PL so that they don't have to run their own warehouses and fleets. A 4PL goes further and manages the whole supply chain, often coordinating several 3PLs.
Examples
We moved our e-commerce warehouse to a 3PL to cope with seasonal peaks.
The 3PL charges us per pallet stored and per order picked.
Common phrases
3PL provider · outsource to a 3PL · 3PL warehouse · 3PL contract
The slowest point in a process or network, which limits how much the whole system can handle, like the narrow neck of a bottle.
Where you use it
Used for machines, docks, ports, border crossings and even people or approval steps. You identify, remove or ease a bottleneck, and a problem can 'become a bottleneck'.
Examples
Packing is our bottleneck; the pickers are always waiting for a free packing table.
Customs checks at the border crossing became a bottleneck during the holiday season.
Common phrases
remove a bottleneck · capacity bottleneck · identify bottlenecks · become a bottleneck
A supply chain that keeps temperature-sensitive products, such as food, vaccines and medicines, within a set temperature range from production to the end user.
Where you use it
Needs refrigerated trucks and containers (reefers), temperature-controlled warehouses and data loggers that record the temperature. A 'break in the cold chain' can make products unsafe or unusable. Common ranges are chilled (2–8 °C) and frozen (minus 18 °C or colder).
Examples
The data logger showed the cold chain was broken for six hours, so the batch was rejected.
We are building a new cold chain warehouse for our pharmaceutical customers.
Common phrases
cold chain logistics · break in the cold chain · maintain the cold chain · cold chain storage
An unexpected event that interrupts the normal flow of goods, such as a natural disaster, a strike, a port closure, a cyber attack or a supplier failure.
Where you use it
A central topic in risk management since the pandemic and the shipping problems that followed it. Companies plan for, respond to and recover from disruptions, and build resilience through dual sourcing, safety stock and better visibility.
Examples
The flooding caused a two-week disruption at our main supplier's plant.
We now map our tier-2 suppliers so that we can see disruptions earlier.
Common phrases
supply chain disruption · cause disruption · minimize disruption · disruption to deliveries · recover from a disruption
Coming into a company or facility, especially materials and goods arriving from suppliers; the opposite of outbound, which describes goods going out to customers.
Where you use it
Very common before nouns: inbound logistics, inbound shipments, inbound freight, inbound and outbound flows. Warehouse teams are often split into inbound (receiving, put-away) and outbound (picking, shipping).
Examples
Inbound shipments from Asia are booked by our team in Istanbul.
We need more staff on the inbound side; receiving is two days behind.
A company or person that provides goods, materials or services to another business, usually at an agreed price and on agreed delivery terms.
Where you use it
One of the most common words in purchasing. You find, evaluate, approve and audit suppliers; you switch suppliers or depend on a single supplier. 'Vendor' is a close synonym, more common in US English and in systems such as SAP.
Examples
We need at least two approved suppliers for every critical component.
The supplier confirmed the order but asked for an extra week.
An official document a buyer sends to a supplier to order goods or services, listing the items, quantities, prices and delivery terms.
Where you use it
Usually shortened to PO, said as 'P-O'. You raise, issue, send or place a PO; the supplier acknowledges or confirms it. Once accepted, it works as a contract, and its number appears on invoices and delivery notes.
Examples
Please quote the purchase order number on your invoice, otherwise we can't process the payment.
I raised a purchase order for 500 cartons this morning.
Common phrases
raise a purchase order · issue a PO · PO number · confirm a purchase order · open purchase orders
The process of finding, choosing and buying the goods and services a company needs, including negotiating with suppliers and managing contracts.
Where you use it
Also the name of the department. Procurement is broader than purchasing: purchasing means placing orders and paying, while procurement also covers strategy, sourcing and supplier relationships. Common in job titles and in public tenders.
Examples
All orders over 10,000 euros have to go through procurement.
Procurement is negotiating a new packaging contract for next year.
Usage note
The verb is 'procure', but it sounds formal; in everyday speech people say 'buy', 'source' or 'purchase'.
Common phrases
procurement department · procurement process · public procurement · procurement manager · e-procurement
A written statement from a supplier or carrier giving the price it will charge for specific goods or services, usually valid for a limited time.
Where you use it
Often shortened to 'quote', which is also the verb: suppliers quote a price, and buyers request, compare and accept quotes. A quotation normally states its validity period, delivery terms and lead time.
Examples
The quotation is valid for 30 days and includes delivery to your warehouse.
We received three quotations for the packaging, and the cheapest one had the longest lead time.
Usage note
Turkish speakers often say 'offer' for every 'teklif'. In purchasing, 'quotation' or 'quote' is the normal word; 'offer' is more general and less formal.
Common phrases
request a quotation · send a quotation · valid quotation · compare quotations · formal quotation
A person whose job is to buy goods or services for a company, or more generally the party that purchases the goods in a sale.
Where you use it
In companies it is a job title in the purchasing team (buyer, senior buyer, category buyer). In contracts and Incoterms, 'the buyer' and 'the seller' are the two parties; on shipping documents the receiving party is called the consignee instead.
Examples
Our buyer is meeting two new packaging suppliers next week.
Under EXW, the buyer is responsible for loading, export clearance and transport.
Common phrases
senior buyer · category buyer · buyer and seller · the buyer's premises
Short for request for quotation: a document a buyer sends to several suppliers asking them to quote prices and terms for clearly specified goods or services.
Where you use it
Buyers send out or issue an RFQ, suppliers respond to it, and the answers are compared before a purchase order is placed. Related documents are the RFI (request for information) and the RFP (request for proposal), used when needs are less clearly defined.
Examples
We sent the RFQ to five suppliers and asked for replies by Friday.
The RFQ must state the quantities, delivery terms and required certificates.
Common phrases
issue an RFQ · respond to an RFQ · RFQ deadline · RFQ process
Short for minimum order quantity: the smallest amount of a product a supplier is willing to sell or produce in a single order.
Where you use it
Very common when sourcing from manufacturers. Buyers ask what the MOQ is, try to negotiate it down, or accept a higher unit price for a lower MOQ. A high MOQ can force a company to hold more inventory than it needs.
Examples
The MOQ is 5,000 units per colour, which is too high for a trial order.
They agreed to lower the MOQ if we pay ten percent more per unit.
Common phrases
meet the MOQ · negotiate the MOQ · high MOQ · MOQ per order
To make an order or shipment happen faster than planned, for example by chasing the supplier or switching to a quicker transport option.
Where you use it
A buyer or planner expedites late or urgent orders, and an expeditor is the person who follows them up. Expedited shipping costs more. Common in emails: 'Could you please expedite this order?'
Examples
Can you expedite the bearings? The line will stop on Monday without them.
We paid extra to expedite the shipment by air.
Usage note
A formal but very common business verb. Don't confuse it with 'expedition', which in everyday English means a long journey of exploration.
Common phrases
expedite an order · expedite delivery · expedited shipping · expediting fee
The work of finding, evaluating and selecting suppliers for the goods or services a company needs, including deciding where in the world to buy from.
Where you use it
Common in phrases like global sourcing, strategic sourcing, single sourcing and dual sourcing. The verb 'source' is used for parts and materials: 'we source our fabric from Bursa'. Sourcing usually comes before purchasing places the orders.
Examples
Our sourcing team is looking for a second supplier closer to Europe.
Single sourcing kept costs low until the supplier's factory closed for a month.
Common phrases
global sourcing · strategic sourcing · dual sourcing · sourcing strategy · source from
A formal process in which a buyer invites suppliers or carriers to submit offers for a contract and then chooses among them on price and other criteria.
Where you use it
Common in public procurement and in logistics, where shippers run annual freight tenders. A company issues or launches a tender, suppliers bid for it or submit a tender, and the contract is awarded. In US English 'bid' and 'RFP' are more common.
Examples
We are launching our annual road freight tender in October.
Three forwarders took part in the tender, and we awarded the contract to the one with the best service level.
Usage note
As a verb, 'tender for' means to bid for a contract. 'Tender' also has unrelated meanings, such as 'soft' (tender meat) and 'legal tender' (official money).
Common phrases
launch a tender · win a tender · freight tender · submit a tender · tender process
A large building where goods, materials or products are received, stored and prepared for shipment.
Where you use it
Used in every part of logistics. Goods are kept, stored or held in a warehouse, which is divided into aisles, racks and bays. Typical job titles are warehouse manager, warehouse supervisor and warehouse operative. 'Warehousing' is the activity or business of storing goods.
Examples
The goods will stay in our warehouse in Gebze until the customer asks for delivery.
We are running out of space in the warehouse before the summer peak.
Usage note
Turkish 'depo' is also used for tanks (yakıt deposu); in English that is a 'tank', not a warehouse. A small room for supplies is a 'storeroom'.
Common phrases
warehouse space · warehouse manager · bonded warehouse · store goods in a warehouse · warehouse operations
A flat wooden or plastic platform on which goods are stacked so that they can be lifted by a forklift and moved, stored or shipped as one unit.
Where you use it
A basic unit for pricing, storing and shipping. Rates are often given per pallet, trucks are planned by pallet places, and goods are palletized and shrink-wrapped. Common sizes are the Euro pallet (1200 × 800 mm) and the US standard pallet (48 × 40 inches).
Examples
The order is 18 pallets, so it fits into one truck with room to spare.
Please don't stack these pallets more than two high.
Usage note
Do not confuse it with 'palette', an artist's or designer's set of colours. The two words sound the same.
Common phrases
Euro pallet · pallet places · per pallet · stack pallets · pallet jack
The warehouse task of taking the right items in the right quantities from their storage locations to fill customer orders.
Where you use it
Often the most labour-intensive warehouse activity. People talk about picking accuracy, pick lists, pickers and methods such as batch picking, zone picking and pick-to-light. The verb is 'pick': 'the order is being picked'.
Examples
Picking errors dropped by half after we introduced handheld scanners.
Picking for the afternoon trucks starts at ten.
Common phrases
order picking · picking accuracy · pick list · batch picking · picking area
A small powered vehicle with two metal arms at the front that slide under pallets to lift, move and stack heavy loads.
Where you use it
Also called a forklift truck or lift truck. Drivers need training and a licence or certificate; people talk about forklift drivers, forklift safety and loading a truck by forklift. A manual pallet truck is different: it lifts pallets only a few centimetres.
Examples
Only certified staff are allowed to drive the forklifts.
A forklift damaged two pallets while unloading the container.
Usage note
'Transpalet' is not an English word. The hand-operated tool is a 'pallet jack' (US) or 'pallet truck' (UK).
The step after receiving in which goods are moved from the dock to their storage locations and recorded in the system.
Where you use it
A core warehouse process alongside receiving, picking and shipping. The WMS usually suggests the put-away location, and operators confirm it by scanning. As a verb it is two words: 'put the pallets away'.
Examples
Put-away should be finished before the afternoon picking wave starts.
Please put away the returns on the mezzanine, not in the main racks.
Common phrases
put-away location · put-away time · directed put-away · put goods away
The area of a warehouse with doors at truck-floor height where vehicles park to be loaded or unloaded.
Where you use it
Warehouses talk about dock doors, dock levellers, dock scheduling and dock-to-stock time. Trucks back up to a dock or are assigned one; a slot booking system manages arrival times so that the docks don't get congested.
Examples
Please send the truck to loading dock 7; dock 3 is closed for repairs.
Every truck needs a time slot, otherwise it waits outside until a loading dock is free.
Common phrases
dock door · loading dock schedule · back up to the loading dock · dock leveller
The process of accepting delivered goods into a warehouse, checking them against the order and recording them in the stock system.
Where you use it
In ERP systems such as SAP, posting a goods receipt against a purchase order increases stock and lets the invoice be matched. In warehouse speech, people also say 'receiving' or, in British English, 'goods-in'.
Examples
The invoice can't be paid until the goods receipt is posted in the system.
During goods receipt we found three damaged cartons and noted them on the CMR.
Common phrases
post a goods receipt · goods receipt note · goods receipt area · goods receipt inspection
Short for warehouse management system: software that controls warehouse operations such as receiving, put-away, stock locations, picking and shipping.
Where you use it
Works with handheld scanners and with the company's ERP system. People talk about implementing, going live with or upgrading a WMS, and about the stock 'in the WMS' compared with what is physically on the shelf.
Examples
Since the new WMS went live, picking errors have dropped by 40 percent.
The WMS shows 120 units in this location, but the shelf is empty.
A method in which incoming goods are unloaded and moved straight to outgoing trucks with little or no storage in between, usually within a day.
Where you use it
Used by retailers, parcel networks and LTL carriers to cut storage costs and speed up delivery. It needs precise timing between inbound and outbound trucks. The building is a cross-dock, and goods are 'cross-docked'.
Examples
Fresh produce goes through cross-docking at the DC and reaches the stores the same night.
Cross-docking only works if the inbound trucks arrive on time.
All the goods and materials a company holds at a given time, including raw materials, work in progress and finished products.
Where you use it
Used in planning, finance and warehouse work. You hold, carry, reduce or manage inventory; too much of it is excess inventory. In US English 'inventory' is the normal word; British speakers often say 'stock' for the same thing.
Examples
We are carrying too much inventory of slow-moving items.
Inventory levels dropped sharply after the promotion.
Usage note
Turkish 'envanter' often means a list or count of items; English 'inventory' is mainly the goods themselves. A stock count is 'stocktaking' (UK) or 'physical inventory' (US).
Short for stock keeping unit: a unique code for one specific version of a product, so that each size, colour or pack type can be counted and tracked separately.
Where you use it
Used in retail, e-commerce and warehouses. People talk about how many SKUs a company carries, fast-moving and slow-moving SKUs, and adding or delisting SKUs. Said as letters, S-K-U, or as one word that sounds like 'skew'.
Examples
The same T-shirt in five sizes and three colours means fifteen SKUs.
We store about 12,000 SKUs in this warehouse.
Usage note
A SKU is the company's own internal code. The barcode number printed on the pack (EAN or UPC) is a different, global identifier.
Common phrases
number of SKUs · fast-moving SKU · SKU level · add a new SKU · SKU rationalization
A situation in which an item is completely out of stock, so orders cannot be filled or production stops until new goods arrive.
Where you use it
Planners and store managers try to avoid or prevent stockouts; they measure the stockout rate and talk about the cost of a stockout. In speech, the phrase 'out of stock' is more common: 'the item is out of stock'.
Examples
Two stockouts in one month cost us our biggest retail customer.
We increased safety stock on this item to avoid another stockout during the season.
Usage note
Also written 'stock-out'. Turkish speakers sometimes say 'there is no stock'; natural English is 'it's out of stock' or 'we've run out'.
Common phrases
avoid a stockout · stockout rate · risk of stockouts · cost of a stockout
Extra stock kept on top of expected demand to protect against sudden increases in demand or late deliveries from suppliers.
Where you use it
A standard planning term. You hold, set, calculate or increase safety stock, usually based on how much demand varies, the lead time and the service level the company wants. 'Buffer stock' means almost the same.
Examples
We keep two weeks of safety stock for imported components.
If the supplier keeps missing dates, we'll have to raise our safety stock.
The stock level at which a new order should be placed, calculated so that the new goods arrive before the existing stock runs out.
Where you use it
A basic formula is average demand during the lead time plus safety stock. Planners set reorder points in the ERP system, which suggests a purchase when stock falls below them. Often shortened to ROP.
Examples
When the stock of filters reaches the reorder point of 400, the system creates a purchase requisition.
We raised the reorder point because the supplier's lead time doubled.
Common phrases
set the reorder point · reach the reorder point · reorder point formula · reorder level
To fill up stock again after it has been used or sold, by ordering from suppliers or moving goods from another location.
Where you use it
Used for stores, pick locations and whole warehouses: 'replenish the shelves', 'replenish stock'. The noun 'replenishment' is very common in retail and warehousing, as in replenishment orders, automatic replenishment and vendor-managed replenishment.
Examples
Stores are replenished from the DC three times a week.
The pick location is empty again; can someone replenish it from the upper rack?
Common phrases
replenish stock · replenish the shelves · replenishment order · automatic replenishment
A customer order, or part of one, that cannot be filled now because the item is out of stock, and will be shipped when new stock arrives.
Where you use it
Used in customer service and order management: an item is 'on backorder' or 'backordered'. Companies watch backorder levels as a sign of supply problems. It is also a verb: 'we'll backorder the missing sizes'.
Examples
The blue model is on backorder until the end of the month.
We shipped what we had and put the rest of the order on backorder.
Common phrases
on backorder · backorder list · clear the backorders · backorder level
A stock check in which a small part of the warehouse is counted on a regular schedule, so that all items are counted over time without closing the warehouse.
Where you use it
An alternative to the yearly full stocktake (physical inventory). High-value or fast-moving items, often the 'A items' of an ABC analysis, are counted more often. Differences between the count and the system are investigated and adjusted.
Examples
We do cycle counts every morning, so we no longer close the warehouse for a full stocktake.
The cycle count found 12 units missing in aisle C.
Common phrases
cycle count programme · do a cycle count · cycle count accuracy · daily cycle count
Short for first in, first out: a rule that the oldest stock is used, picked or sold first, which reduces the risk of products ageing or expiring.
Where you use it
Used in warehouses and also in accounting, where it is a method of valuing inventory. For food and medicines, FEFO (first expired, first out) is often more suitable, because the order of expiry dates matters more than the order of arrival.
Examples
We follow FIFO, so always pick from the front of the rack and put new stock at the back.
Because of poor FIFO discipline, we had to scrap two pallets of expired product.
Usage note
Pronounced as one word: FY-foh. The opposite is LIFO (last in, first out).
A measure of how many times a company sells and replaces its stock in a period, usually cost of goods sold divided by average inventory.
Where you use it
A higher turnover usually means stock moves fast and less cash is tied up; a low one can point to overstock or slow-moving items. Also called stock turnover or inventory turns; the related figure 'days of inventory' shows how many days the stock would last.
Examples
Our inventory turnover is eight, which means stock is replaced roughly every six weeks.
Finance wants to improve inventory turnover by cutting slow-moving SKUs.
Common phrases
inventory turnover ratio · improve inventory turnover · high inventory turnover · inventory turns
A large steel box of standard size used to carry goods by ship, train and truck without unloading them when they move from one vehicle to another.
Where you use it
The basic unit of sea freight. The most common types are 20-foot and 40-foot containers, including the 40-foot high cube, plus reefers for chilled or frozen cargo. Containers are stuffed (loaded), sealed, gated in at the port, discharged and returned empty.
Examples
We need two 40-foot containers for the next order.
The container was loaded and sealed at the factory, so customs only checked the seal number.
Usage note
Pronounced kon-TAY-ner. In shipping English, 'box' is a common informal word for a container.
Common phrases
20-foot container · 40-foot high cube · container seal · load a container · empty container
The transport of goods by trucks and trailers on roads, used for domestic deliveries and for international routes over land.
Where you use it
Flexible and door to door, so it is the main mode for most domestic and European trade. Road freight is sold as FTL (full truckload) or LTL/groupage. British speakers also say 'road haulage' and 'haulier'; Americans say 'trucking' and 'trucking company'.
Examples
For deliveries to Romania, road freight is cheaper than air and much faster than sea.
Road freight prices usually rise when fuel costs go up.
Usage note
Turkish 'tır' comes from TIR (Transports Internationaux Routiers), a customs transit system. In English a TIR is not a vehicle; say 'truck', 'lorry' (UK) or 'semi-trailer'.
The transport of goods by plane, either in the hold of passenger aircraft or on dedicated cargo planes; fast but expensive.
Where you use it
Chosen for urgent, high-value or perishable goods. Charges are based on chargeable weight per kilogram, and the transport document is the air waybill. People 'send something by air' or use 'airfreight' as a verb.
Examples
We'll have to use air freight to get the samples to the trade fair on time.
Air freight is too expensive for the whole order, so only the first 200 units will fly.
Common phrases
air freight rates · send by air freight · air freight forwarder · air freight capacity
The transport of goods by ship, mostly in containers; the cheapest way to move large volumes over long international distances.
Where you use it
The two main options are FCL and LCL. 'Sea freight' means the same and is more common in British English. Quotes usually show the ocean freight separately from origin and destination charges such as terminal handling.
Examples
Ocean freight is cheaper, but the transit time is six weeks door to door.
The quote shows ocean freight and local charges separately.
Short for full container load: a sea shipment in which one shipper's goods fill or use a whole container on their own.
Where you use it
The opposite of LCL. FCL is priced per container (20-foot or 40-foot) and becomes cheaper than LCL once a shipment is large enough. The container is usually loaded and sealed at the shipper's premises.
Examples
The order is big enough to ship FCL, so we booked one 40-foot container.
FCL shipments are faster because the container doesn't go through a consolidation warehouse.
Usage note
Say the letters: F-C-L. The same idea in road freight is FTL (full truckload).
Short for less than container load: a small sea shipment that shares a container with goods from other shippers and pays only for the space it uses.
Where you use it
Priced per cubic metre or per tonne, whichever is higher (often written W/M). The forwarder consolidates LCL cargo at a warehouse called a CFS and separates it again at destination, which adds handling time.
Examples
Three pallets is too little for a full container, so let's send it LCL.
LCL rates look cheap, but check the destination charges before you decide.
Common phrases
LCL shipment · ship LCL · LCL rate per cubic metre · LCL consolidation
Short for twenty-foot equivalent unit: a standard measure of container capacity in which one 20-foot container is 1 TEU and one 40-foot container is 2 TEU.
Where you use it
Used to describe the size of ships (a 20,000 TEU vessel), the volume a port handles and a company's annual shipping volume. A 40-foot container is also called an FEU, forty-foot equivalent unit.
Examples
We ship about 1,200 TEU a year from Mersin to Northern Europe.
The new vessels on this route carry over 20,000 TEU each.
Usage note
Say the letters: T-E-U. Because 'unit' is already in the abbreviation, both '2 TEU' and '2 TEUs' appear in industry writing.
Common phrases
TEU capacity · annual volume in TEU · TEU vessel · per TEU
Short for full truckload: a road shipment that uses a whole truck or trailer for one customer's goods and goes directly from pickup to delivery.
Where you use it
Priced per truck rather than per pallet or kilo. FTL is faster and safer for large loads because nothing is reloaded on the way. In Europe 'full load' or 'complete load' is also common; a standard trailer takes 33 Euro pallets.
Examples
With 30 pallets, it makes sense to book an FTL instead of sending it groupage.
FTL rates to Germany went up after the new road tolls were introduced.
Common phrases
FTL shipment · book an FTL · FTL rate · FTL carrier
Short for less than truckload: a road shipment too small to fill a truck, so it travels with other customers' goods and is priced by space or weight.
Where you use it
The standard term in North America; in Europe and Turkey people more often say groupage or part load. LTL shipments usually pass through terminals or hubs, so transit times are longer and there is more handling than with FTL.
Examples
Four pallets is a typical LTL shipment for us.
LTL is cheaper for small orders, but the goods are handled several times on the way.
A ship, especially a large one that carries cargo; the standard word for ships in shipping documents and freight emails.
Where you use it
Shipping English prefers 'vessel' to 'ship'. People talk about the vessel name and voyage number, vessel schedules, a vessel calling at a port, sailing, berthing or being delayed by congestion. Feeder vessels carry containers to and from large hub ports.
Examples
The vessel sailed from Ambarlı on Sunday and will call at Piraeus on Tuesday.
Your container missed the vessel, so it has been rolled to next week's sailing.
Usage note
In everyday English 'vessel' can also mean a container for liquids, and a 'blood vessel' is a damar. In logistics it almost always means a ship.
Common phrases
vessel name · vessel schedule · feeder vessel · the vessel sails · on board the vessel
Moving goods in the same container or trailer by two or more modes of transport, such as rail and truck, without handling the goods themselves when the mode changes.
Where you use it
Popular over long distances, where rail or a ship covers the main leg and trucks do the short first and last legs. It can cut costs and emissions. Turkish exporters often combine road transport with Ro-Ro ferries to Italy or France.
Examples
Switching to intermodal transport via Trieste saved our trucks two days of driving through the Balkans.
Intermodal transport is cheaper over long distances, but it needs good terminal connections.
Usage note
'Multimodal' is close in meaning; it usually stresses that one operator is responsible for the whole journey under a single contract.
Common phrases
intermodal terminal · intermodal service · rail-road intermodal · switch to intermodal
Goods carried in bulk by truck, ship, train or plane, and also the money paid for carrying them.
Where you use it
Has two meanings that you read from context: the cargo itself (air freight, freight train) and the charge (freight prepaid, freight collect). It is uncountable: say 'freight' or 'a freight shipment', not 'a freight' or 'freights'.
Examples
Freight costs on the Asia to Europe route have doubled since spring.
The freight is collected from the factory on Monday and arrives in Izmir on Wednesday.
Usage note
Pronounced 'frayt'; the 'gh' is silent, as in 'eight'.
A quantity of goods sent together from one place to another, or the act of sending them, whether by road, sea, air or rail.
Where you use it
Used in daily emails and calls about orders. A shipment is booked, dispatched, delayed, held at customs or received. Despite the word, it does not have to travel by ship; a parcel sent by truck is also a shipment.
Examples
Your shipment left our warehouse this morning and should arrive on Thursday.
The second shipment is being held at customs because a certificate is missing.
Usage note
Turkish 'kargo' is usually 'parcel' or 'courier delivery' in English. English 'cargo' means goods carried by a ship, plane or truck, so 'my cargo arrived' sounds odd for a small online order; say 'my parcel arrived'.
Common phrases
track a shipment · book a shipment · delayed shipment · partial shipment · inbound shipment
A company that physically transports goods, such as a trucking company, a shipping line, an airline or a rail operator.
Where you use it
Used to separate the company that moves the goods from the one that organizes the move (the freight forwarder). Shippers select, book and pay carriers; the carrier issues the transport document and is liable for the cargo while it is in its care.
Examples
We use three carriers for domestic deliveries and compare their rates every quarter.
The carrier is liable for the damage because the seal was broken during transit.
A company that organizes shipments for its customers: it books space with carriers, prepares documents and arranges customs, insurance and delivery.
Where you use it
Often just 'forwarder'. Forwarders usually do not own ships or planes; they buy space from carriers and combine services into one door-to-door offer. Exporters and importers ask forwarders for quotes and send them shipping instructions.
Examples
Our freight forwarder will collect the goods and handle export clearance.
Can you ask two or three freight forwarders for quotes on the Mersin to Rotterdam route?
The person or company that sends goods and hands them over to a carrier, often the seller or exporter named on the transport document.
Where you use it
A key party on bills of lading and waybills, next to the consignee and the notify party. In US English, 'shipper' can also mean any company that buys transport services, even an importer.
Examples
The shipper's name on the bill of lading must match the commercial invoice.
Large shippers can negotiate much lower rates with the shipping lines.
Usage note
A shipper is not a shipping company. The company that runs the ships is the 'carrier' or 'shipping line'.
Common phrases
shipper's name · shipper and consignee · shipper's load and count · large shippers
The price a carrier or forwarder charges to move goods, usually per container, per pallet, per kilogram or per shipment.
Where you use it
Rates go up and fall, are negotiated, and are either fixed for a contract period or quoted 'spot' for a single shipment. Quotes often list the base rate plus surcharges, such as a fuel surcharge (BAF) or a peak-season surcharge.
Examples
Freight rates from China have fallen, so it's a good time to sign an annual contract.
The freight rate is 1,850 dollars per 40-foot container, excluding local charges.
A reservation of space for a shipment on a specific vessel, flight or truck, made directly with a carrier or through a forwarder.
Where you use it
In sea freight the carrier sends a booking confirmation with a booking number, the vessel name and the cut-off times. You make, confirm, amend or cancel a booking; the verb is 'book': 'we booked space on the next sailing'.
Examples
Please send the booking confirmation as soon as the carrier accepts it.
We had to cancel the booking because the goods weren't ready.
Common phrases
booking confirmation · booking number · make a booking · cancel a booking · booking request
The time goods spend travelling from the point of departure to the destination, not counting time for production, loading or customs.
Where you use it
Carriers and forwarders publish transit times for each route and service, and shippers compare them with the price. People say transit time is 'about 30 days port to port', or that a faster service cuts transit time.
Examples
The transit time by sea is 35 days, while air freight would take only three.
The new direct service cuts transit time to Rotterdam by almost a week.
Common phrases
door-to-door transit time · port-to-port transit time · reduce transit time · transit time of 30 days
A charge paid when a container stays at the port or terminal longer than the free time the carrier allows, or when a chartered ship is held beyond the agreed loading time.
Where you use it
A frequent source of unexpected costs in container shipping. Demurrage applies while the container is inside the terminal; detention applies when the shipper or consignee keeps it outside too long. Charges are per container per day and rise over time.
Examples
The customs delay cost us four days of demurrage on two containers.
Ask the carrier for 14 days' free time so that we avoid demurrage.
Usage note
Turkish speakers sometimes use 'demuraj' for any waiting fee, including a truck waiting at a warehouse; in road freight English this is usually 'waiting time' (UK) or 'detention' (US).
Common phrases
demurrage charges · free time · incur demurrage · demurrage and detention · pay demurrage
The weight used to calculate the freight charge: the higher of the actual gross weight and the volumetric weight worked out from the shipment's dimensions.
Where you use it
Most important in air freight and courier shipments, where light but bulky goods are charged by volume. In standard air freight, one cubic metre counts as 167 kg (the volume in cm³ divided by 6,000). Forwarders show it on quotes and on the air waybill.
Examples
The boxes only weigh 80 kg, but their chargeable weight is 250 kg because they are so big.
Can you make the cartons smaller? The chargeable weight is making air freight too expensive.
Usage note
In the US, volumetric weight is also called 'dimensional weight' or 'DIM weight'.
Common phrases
calculate the chargeable weight · volumetric weight · actual weight · gross weight
Combining several small shipments, often from different shippers, into one larger load, such as a full container or truck, to lower the cost per unit.
Where you use it
The basis of LCL and groupage services. A forwarder acting as a consolidator collects cargo at a warehouse, loads it together and splits it again at destination (deconsolidation). Companies also consolidate their own orders to ship less often in fuller loads.
Examples
Weekly consolidation from our suppliers in Shanghai fills one 40-foot container.
Order consolidation cut the number of trucks we send north by a third.
Common phrases
freight consolidation · consolidation warehouse · order consolidation · consolidation service
The person or company to whom goods are sent and who is entitled to receive them at the destination, as named on the transport document.
Where you use it
Appears on every bill of lading, air waybill and CMR. The consignee is often the buyer, but it can also be a bank, an agent or a customs broker. On a bill of lading, 'to order' instead of a name means the document can be transferred by endorsement.
Examples
The consignee refused the delivery because half of the cartons were damaged.
Please send the consignee details so that we can prepare the bill of lading.
Usage note
The stress is on the last syllable: con-sy-NEE. The sender is the consignor (or shipper).
Common phrases
consignee details · consignee address · shipper and consignee · notify the consignee
A document issued by a sea carrier that confirms the goods were received for shipment, sets out the terms of carriage and, in its negotiable form, gives the right to collect the cargo.
Where you use it
Usually shortened to B/L or BL. The carrier or forwarder issues it, the shipper checks the draft, and originals are released, surrendered or sent through the bank. Common types include master and house B/L, original B/L, telex release and sea waybill.
Examples
The bank will not release payment until it receives the original bill of lading.
Please check the draft bill of lading and confirm by noon.
Usage note
The plural is 'bills of lading', not 'bill of ladings'. 'Lading' is an old word for loading cargo.
Common phrases
issue a bill of lading · original bill of lading · draft B/L · clean bill of lading · telex release
The seller's bill to the buyer for goods sold internationally, showing the goods, quantities, prices, currency and terms of sale; customs uses it to work out duties.
Where you use it
One of the core export documents, together with the packing list and the transport document. It normally shows the Incoterms rule, HS codes and country of origin. A pro forma invoice is a preliminary version sent before the sale is final.
Examples
Customs asked for a corrected commercial invoice because the unit prices didn't add up.
Please attach the commercial invoice and packing list to the booking.
Common phrases
issue a commercial invoice · invoice value · pro forma invoice · invoice number · signed commercial invoice
A document that lists what is in each package of a shipment, with quantities, weights, dimensions and package numbers, but usually no prices.
Where you use it
Used by warehouses, forwarders, customs and the receiving party to check the goods without opening every box. It is sent with the commercial invoice and often attached to the outside of the shipment as well.
Examples
The gross weight on the packing list doesn't match the weight on the bill of lading.
We checked every carton against the packing list and found two missing.
Usage note
Don't write 'package list' or 'packaging list'; the standard name is 'packing list'.
Common phrases
detailed packing list · attach the packing list · check against the packing list · net and gross weight
A document that travels with the goods and lists what is being delivered; the receiver checks the goods against it and signs a copy to confirm receipt.
Where you use it
Common in domestic deliveries and warehouses. The driver hands over the delivery note, and the receiver checks the quantities and writes any shortage or damage on it before signing. Americans often say 'packing slip' or 'delivery receipt'; 'dispatch note' is also used.
Examples
The driver left without a signed delivery note, so we have no proof that the goods arrived.
Two cartons were missing, so we wrote it on the delivery note before signing.
Usage note
E-irsaliye has no fixed English name; 'electronic delivery note' or 'e-dispatch note' is the clearest translation.
Common phrases
sign the delivery note · delivery note number · check against the delivery note · copy of the delivery note
The transport document for air cargo, issued by the airline or its agent, which serves as a receipt for the goods and as evidence of the contract of carriage.
Where you use it
Usually shortened to AWB. Unlike a bill of lading, it is not a document of title, so the goods are released to the named consignee. Forwarders issue a house AWB (HAWB) under the airline's master AWB (MAWB). The number starts with the airline's three-digit prefix.
Examples
Please send me the air waybill number so that I can track the cargo on the airline's website.
The consignee's address on the air waybill was wrong, so the goods were held at the airport.
Usage note
'Waybill' is written as one word. Turkish uses 'konşimento' for both documents; in English, 'bill of lading' is used for sea and 'air waybill' for air.
Common phrases
air waybill number · master air waybill · house air waybill · issue an air waybill
The standard consignment note for international road transport, named after the 1956 Geneva convention (CMR) that sets the rules and the carrier's liability.
Where you use it
The driver carries the CMR with the goods, and the sender, the carrier and the consignee each sign it. Damage or shortages are written on the CMR at delivery. People say 'CMR note' or 'CMR consignment note', and 'CMR insurance' for the carrier's liability cover.
Examples
The receiver noted on the CMR that two pallets were wet.
We can't invoice the customer until we get the signed CMR back from the driver.
Usage note
CMR comes from the convention's French title, Convention relative au contrat de transport international de Marchandises par Route. It covers international road journeys; in most countries domestic transport follows national law.
An official document stating the country where goods were made, which customs uses to decide which duty rate and trade rules apply.
Where you use it
Often issued or certified by a chamber of commerce. Non-preferential certificates simply prove origin; preferential ones, such as the EUR.1 movement certificate, allow lower or zero duty under a trade agreement. Often shortened to CO or COO.
Examples
The buyer needs a certificate of origin from the chamber of commerce for their customs.
Without the certificate of origin, the importer would have to pay the full duty rate.
Common phrases
issue a certificate of origin · preferential certificate of origin · chamber of commerce · country of origin
The process of getting official approval from customs for goods to enter or leave a country, including declaring them, paying duties and passing any inspections.
Where you use it
Used for both export and import. Goods 'clear customs' or 'are cleared'; a broker or forwarder 'handles customs clearance'. Delays are described as 'stuck in customs' or 'held for inspection'.
Examples
Customs clearance took three days because the goods were selected for physical inspection.
Who will handle import customs clearance in Germany?
A tax charged by a government on goods when they are imported, and in some cases exported, usually calculated as a percentage of their customs value.
Where you use it
Often just 'duty' or 'duties', as in 'duties and taxes'. The rate depends on the HS code and the origin of the goods, and trade agreements can reduce it to zero. Duty is paid, charged, levied, exempted or refunded. Import VAT is a separate charge.
Examples
Thanks to the certificate of origin, the customs duty on this shipment was zero.
Under DDP terms, the seller pays the customs duty in the destination country.
Usage note
In this sense 'duty' has nothing to do with 'on duty' (at work). 'Duty-free' means without this tax.
The official form, now usually electronic, in which an importer or exporter tells customs what the goods are and states their value, origin and HS code.
Where you use it
Usually filed or lodged by a customs broker on the trader's behalf. People talk about export and import declarations, the declaration number and amending a declaration. Wrong information on a declaration can lead to fines or delays.
Examples
Our broker submitted the customs declaration this morning, and the goods were released two hours later.
The value on the customs declaration must match the commercial invoice.
Common phrases
submit a customs declaration · export declaration · import declaration · declaration number · amend a declaration
A licensed person or company that prepares and submits customs declarations and handles clearance formalities on behalf of importers and exporters.
Where you use it
The usual US term; in the UK and the EU 'customs agent' or 'customs representative' is more common. A broker classifies goods, calculates duties and deals with questions from customs. Many freight forwarders also offer brokerage services.
Examples
Our customs broker says the goods need an import licence before they can be released.
Please send the commercial invoice and packing list directly to the customs broker.
A number from the Harmonized System, the international classification of goods run by the World Customs Organization, used to identify products for duties and trade statistics.
Where you use it
The first six digits are the same worldwide; countries add digits for their own tariffs (8 in the EU's Combined Nomenclature, 12 in Turkey's GTİP). Goods are 'classified under' an HS code, and the wrong code can mean the wrong duty.
Examples
Which HS code did you use for the spare parts on the last shipment?
The importer's customs classified the machine under a different HS code with a higher duty.
Usage note
In the US the national version is the HTS code (Harmonized Tariff Schedule). People also say 'tariff code' or 'commodity code'.
Common phrases
HS code classification · six-digit HS code · tariff code · classify under an HS code
A warehouse under customs control where imported goods can be stored without paying duties and taxes until they are released into the country or re-exported.
Where you use it
Used when goods will be sold abroad again or when the owner wants to delay paying duty. Goods stored there are 'in bond' or 'under bond'. The operator needs a licence and must keep exact stock records for customs.
Examples
We keep the spare parts in a bonded warehouse and clear them only when a customer orders.
The goods stayed in the bonded warehouse for three months while the buyer arranged financing.
Common phrases
store in a bonded warehouse · bonded warehouse operator · in bond · release from bond
A set of standard trade terms published by the International Chamber of Commerce that tell the buyer and seller who arranges and pays for transport, and where risk passes between them.
Where you use it
Each rule is a three-letter code followed by a named place and the edition, such as 'FOB Mersin, Incoterms 2020'. The 2020 edition has 11 rules. Incoterms do not set the price, the payment method or the moment ownership of the goods passes.
Examples
Which Incoterms rule are we quoting on, FCA or DAP?
The contract doesn't mention the Incoterms edition, so let's add 'Incoterms 2020' to avoid any dispute.
Usage note
Incoterms is a registered trademark of the ICC, which is why it is often written Incoterms®. Pronounced IN-ko-terms.
Common phrases
Incoterms 2020 · Incoterms rule · agree on Incoterms · named place
Short for Free On Board: an Incoterms rule for sea transport in which the seller delivers the goods on board the vessel chosen by the buyer, and risk passes to the buyer at that point.
Where you use it
Always followed by the port of shipment: 'FOB Izmir'. The seller pays for export clearance and all costs up to loading; the buyer pays the ocean freight and insurance. For container cargo the ICC recommends FCA instead, but FOB is still very widely used.
Examples
Our prices are FOB Mersin, so the buyer books the vessel and pays the ocean freight.
Under FOB, who is responsible if the goods are damaged at the port before loading?
Usage note
In the US, 'FOB' is also used in domestic sales with a different legal meaning (FOB origin, FOB destination). Check which meaning a contract uses.
Common phrases
FOB price · FOB value · quote FOB · FOB port of shipment
Short for Ex Works: the Incoterms rule in which the seller only makes the goods available at its own premises, and the buyer handles loading, export clearance and all transport.
Where you use it
The rule with the least obligation for the seller, written with the place: 'EXW Bursa factory'. In practice the seller often helps with loading, which can lead to disputes about who carries the risk, so FCA is often used instead for export sales.
Examples
We sell EXW, so your forwarder needs to collect the goods from our factory in Bursa.
An EXW price looks low, but the buyer still has to add transport, export clearance and insurance.
Short for Cost, Insurance and Freight: a sea-only Incoterms rule in which the seller pays freight and minimum insurance to the destination port, but risk passes to the buyer once the goods are on board.
Where you use it
Written with the destination port: 'CIF Hamburg'. The point many people miss is that the seller pays up to the destination, but the buyer carries the risk during the voyage. CIF value is also the basis for import duties in many countries, including the EU and Turkey.
Examples
We quoted CIF Alexandria, so the freight and insurance are included in our price.
Under CIF, the buyer still carries the risk if the cargo is damaged at sea.
Usage note
Under Incoterms 2020, CIF requires only minimum insurance cover (Institute Cargo Clauses C), while CIP requires wider cover (Clauses A).
Common phrases
CIF price · CIF value · quote CIF · CIF destination port
Short for Delivered at Place: an Incoterms rule in which the seller carries the goods and the risk to the named destination, ready for unloading, while the buyer handles import clearance and duties.
Where you use it
Usable for any transport mode and very common in road freight from Turkey to Europe. It is written with the delivery place, such as 'DAP Lyon warehouse'. The buyer unloads the goods and pays import duty and VAT.
Examples
Our standard terms for EU customers are DAP, so we arrange the truck all the way to their warehouse.
Under DAP the customer pays import VAT, so they need their own customs broker.
Common phrases
DAP terms · DAP named place · deliver DAP · DAP price
Short for Delivered Duty Paid: the Incoterms rule with the most obligations for the seller, who delivers to the named place cleared for import and pays all duties and taxes.
Where you use it
Popular in e-commerce and with buyers who want one all-inclusive landed price. The seller must be able to act as the importer in the buyer's country, or use a partner there, which is not always possible; reclaiming import VAT can also be a problem.
Examples
The customer asked for DDP, but we can't register as an importer in Switzerland.
A DDP price includes freight, customs clearance, duties and delivery to the door.
To send goods or a vehicle off to a destination, usually after the order has been picked, packed and checked.
Where you use it
Common in warehouses, order emails and transport offices: 'the order was dispatched today'. It is also a noun (dispatch area, dispatch date), and a dispatcher is the person who plans and sends out drivers. British English sometimes spells it 'despatch'.
Examples
Orders placed before 2 p.m. are dispatched the same day.
We dispatched the truck at 6 a.m. so that it reaches the border before the queue builds up.
Common phrases
dispatch an order · dispatch date · same-day dispatch · ready for dispatch · dispatch note
A warehouse designed to move goods quickly on to stores, customers or other locations rather than to store them for a long time.
Where you use it
Often shortened to DC. Retailers and e-commerce companies run regional and national DCs, with goods flowing in from suppliers and out to stores every day. The British spelling is 'distribution centre'.
Examples
All stores in the Aegean region are supplied from our distribution center in Manisa.
The new distribution centre will let us offer next-day delivery across the country.
Common phrases
regional distribution center · national distribution center · DC operations · run a distribution center
The final stage of delivery, from a local depot or hub to the customer's door, often the most expensive and complex part of the journey.
Where you use it
A key phrase in e-commerce and parcel delivery, often used before a noun with a hyphen: last-mile delivery, last-mile costs, last-mile carriers. Common topics include failed deliveries, delivery slots, parcel lockers and electric vans.
Examples
Last-mile delivery is the biggest part of our parcel costs.
We are testing parcel lockers to make the last mile cheaper in big cities.
Common phrases
last-mile delivery · last-mile costs · last-mile carrier · the last mile
To collect goods from a place such as a factory, warehouse or port, so that they can be transported to the next point.
Where you use it
Used by drivers, dispatchers and customer service: 'the truck will pick up the goods at 9'. The noun is one word, 'pickup' (pickup date, pickup address). British speakers often say 'collect' and 'collection' instead.
Examples
The driver will pick up the pallets from your warehouse tomorrow morning.
Can you pick the samples up before 5? Our office closes early on Fridays.
Usage note
It is a separable phrasal verb: say 'pick up the goods' or 'pick them up', never 'pick up them'. The pronoun goes in the middle.
Common phrases
pick up the goods · pickup date · pickup address · arrange a pickup · ready for pickup
A signed document or electronic record showing that goods were delivered, when, and who received them; often needed before an invoice is paid.
Where you use it
Shortened to POD. Many carriers now collect an electronic POD (ePOD) with a signature on a handheld device, a photo and a GPS location. Customers ask for a POD when they say goods never arrived.
Examples
The customer says the parcel never arrived. Can you send us the proof of delivery?
The proof of delivery shows it was signed for by the security guard at 7:40.
Usage note
Be careful: in shipping, POD can also mean port of discharge, the port where cargo is unloaded. The context tells you which one is meant.
Common phrases
signed proof of delivery · electronic proof of delivery · request a POD · POD copy
All the steps needed to get an order to the customer, from receiving the order and picking and packing it to shipping it and handling returns.
Where you use it
A key word in e-commerce. Online sellers handle fulfillment in-house or use a fulfillment center or a 3PL, and marketplaces offer their own fulfillment programmes. The British spelling is 'fulfilment'.
Examples
We outsourced fulfillment so that our team can focus on marketing.
Order fulfillment slows down during the Black Friday peak, so we hire temporary staff.
Common phrases
order fulfillment · fulfillment center · e-commerce fulfillment · outsource fulfillment
The flow of goods back from customers to the seller or manufacturer for returns, repair, reuse, recycling or disposal.
Where you use it
Increasingly important because of online shopping, where return rates are high, and recycling rules. Companies talk about the cost of returns, returns processing, refurbishing and recovering value from returned goods.
Examples
Reverse logistics is now a big cost for us because a quarter of online orders come back.
Empty pallets and crates go back to the supplier as part of our reverse logistics loop.
A unique number given to a parcel or shipment so that the sender, the receiver and the carrier can follow its progress online.
Where you use it
Common in courier, parcel and e-commerce work, and in customer service emails. You send, share or enter a tracking number. For containers and air cargo, people more often track by container number, B/L number or AWB number.
Examples
I've emailed you the tracking number, so you can follow the parcel on the courier's website.
According to the tracking number, the parcel has been at the hub since Friday.
Common phrases
send the tracking number · enter a tracking number · share the tracking number · tracking link
Short for estimated time of arrival: the date and time when a ship, plane, truck or shipment is expected to arrive.
Where you use it
Used constantly in emails, tracking updates and planning calls, often without a verb: 'ETA Monday', 'new ETA 14 March'. Its partner ETD means estimated time of departure. People ask 'What's the ETA?' and say an ETA is confirmed, revised or pushed back.
Examples
The vessel's ETA in Hamburg has moved from Tuesday to Friday because of port congestion.
What's the ETA on the replacement parts?
Usage note
Say the letters: E-T-A. 'ETA time' repeats the word time, so just write 'ETA'.
Common phrases
revised ETA · confirm the ETA · ETA at port · ETA and ETD · push back the ETA
Travelling between the place of departure and the destination; goods in transit have left the sender but have not yet been delivered.
Where you use it
Common as a status in tracking systems and emails: 'Status: in transit'. Also used in insurance and accounting, as in goods in transit insurance and inventory in transit. 'Damaged in transit' means damaged during the journey.
Examples
Your order is in transit and should arrive within two working days.
At any time, about a third of our stock is in transit from Asia.
Usage note
In customs, 'transit' also means goods passing through a country under customs control without being imported there, as with a T1 transit document.
Common phrases
goods in transit · damaged in transit · inventory in transit · in transit to
A pattern of printed lines or squares that a scanner reads to identify a product, package or pallet quickly and without typing.
Where you use it
Used at every step, from receiving and put-away to picking, shipping and retail checkout. You scan or print barcodes; labels can carry 1D barcodes or 2D codes such as QR and Data Matrix. Pallet labels often follow the GS1 standard with an SSCC number.
Examples
Every carton has to be scanned by its barcode before it is loaded.
The barcode on the label was damaged, so the item had to be entered by hand.
Short for on time in full: a key performance indicator showing the percentage of orders delivered on the agreed date and in the full quantity ordered.
Where you use it
Used in supplier scorecards, logistics contracts and management reports. Large retailers may set OTIF targets and charge suppliers penalties when they miss them. An order counts as a failure if it is late or short, even by a single unit.
Examples
Our OTIF rate fell to 88 percent last month because of the strike at the port.
The retailer expects at least 95 percent OTIF from all its suppliers.
The ability to see where goods, orders and stock are at any moment along the supply chain, usually through shared real-time data.
Where you use it
A common goal in supply chain projects and software sales: end-to-end visibility, real-time visibility, inventory visibility. A lack of visibility is blamed when nobody knows where a shipment is or how much stock exists.
Examples
We have no visibility of the containers once they leave the port in China.
The new platform gives customers real-time visibility of their orders.
Short for radio-frequency identification: technology that uses small tags and radio waves to identify and track items without needing a direct line of sight.
Where you use it
Unlike barcodes, RFID tags can be read many at a time and from a distance, which speeds up receiving and stock counts. Common in fashion retail, in pallet and container tracking, and for returnable equipment. Said as letters: R-F-I-D.
Examples
With RFID tags, we can count a whole store's stock in under an hour.
RFID gates at the dock record every pallet that leaves the warehouse.
Common phrases
RFID tag · RFID reader · RFID gate · RFID tracking
Short for transportation management system: software used to plan, book, carry out and track shipments and to manage carriers and freight costs.
Where you use it
Shippers and 3PLs use a TMS for load planning, route optimization, carrier selection, offering loads to carriers and checking freight invoices (freight audit). It is often connected to the ERP and the WMS.
Examples
The TMS picks the cheapest carrier for each load and sends the booking automatically.
All delivery times come from the TMS, so the OTIF report is reliable.
Common phrases
implement a TMS · TMS integration · cloud TMS · TMS data
The process of estimating how much of a product customers will buy in a future period, using sales history, market information and planned promotions.
Where you use it
The starting point for purchasing, production and inventory planning. Planners talk about forecast accuracy, forecast error, seasonality and statistical models. The result is 'a forecast': you build, update, revise or miss a forecast.
Examples
Better demand forecasting helped us cut excess stock by 20 percent.
Our demand forecasting model doesn't reflect the summer peak well, so we often run short in July.
The process of predicting future demand and agreeing on one demand plan that the company then uses to plan purchasing, production and stock.
Where you use it
Broader than forecasting: a demand planner starts with a statistical forecast and adjusts it with input from sales and marketing, such as promotions, new products and large customer orders. The final number feeds the S&OP process.
Examples
Demand planning needs to know about the promotion at least eight weeks before it starts.
She works in demand planning and meets the sales team every Monday to review the numbers.
Common phrases
demand planning process · demand planner · demand planning software · consensus demand plan
Short for sales and operations planning: a regular, usually monthly, process in which sales, operations, supply chain and finance agree one plan that balances demand and supply.
Where you use it
Said 'S and O P'. It typically runs as a monthly cycle of data preparation, demand review, supply review and an executive meeting. A wider version that also covers financial planning is called integrated business planning (IBP).
Examples
In this month's S&OP meeting we agreed to build extra stock before the summer.
Without a proper S&OP process, sales and production were working from different numbers.
The way small changes in consumer demand turn into larger and larger swings in orders and stock as they move up the supply chain to wholesalers, manufacturers and suppliers.
Where you use it
A classic supply chain concept, discussed in planning meetings and courses. Causes include ordering in large batches, price promotions, panic buying and poor information sharing. Sharing point-of-sale data and placing smaller, more frequent orders help reduce it.
Examples
A 10 percent rise in store sales caused a 40 percent jump in our orders to suppliers; that's the bullwhip effect in action.
Sharing sales data with our suppliers has reduced the bullwhip effect.
Usage note
The image is a whip: a small movement of the hand makes a big movement at the end. It is also called the Forrester effect, after the researcher who first described it.
Common phrases
reduce the bullwhip effect · bullwhip effect in the supply chain · demand swings · amplify demand changes
Short for material requirements planning: a system that uses the production plan, bills of materials and stock levels to calculate which materials to order or make, and when.
Where you use it
Built into most ERP systems. Planners 'run MRP', often every night, and get purchase and production proposals. MRP results are only as good as the master data, such as lead times and bills of materials. MRP II (manufacturing resource planning) is a broader concept.
Examples
MRP suggested ordering 2,000 screws, but we already have plenty in the other warehouse.
Because the lead times in the system are wrong, MRP keeps creating late orders.
Usage note
A bill of materials (BOM) is 'ürün ağacı' or 'malzeme listesi' in Turkish; MRP cannot work without one.
Common phrases
run MRP · MRP run · MRP system · MRP proposal · MRP II
An approach in which materials arrive exactly when they are needed for production or sale, so that very little stock is held.
Where you use it
Developed within the Toyota Production System and widely used in car manufacturing. Often shortened to JIT and used before nouns: just-in-time delivery, JIT supplier. It saves storage costs but makes a company more vulnerable to delays and disruptions.
Examples
Seats are delivered just-in-time to the assembly line, in the order the cars are built.
The pandemic showed the risks of relying only on just-in-time supply.
Usage note
A newer phrase, 'just-in-case', describes holding extra stock as protection against disruptions.
Common phrases
just-in-time delivery · just-in-time production · JIT supplier · move away from just-in-time
Ten questions from this glossary. Pick the right meaning for each term and see your score.
How to learn logistics & supply chain vocabulary
Learn every abbreviation together with its full form and what it means in practice (ETA, B/L, AWB, FCL, LCL, POD), and mark the ones with two meanings: POD can be proof of delivery or port of discharge.
Read real documents from your own work in English, such as a bill of lading, a commercial invoice, a CMR or a forwarder's quotation, and notice how each box and field is named.
Learn verbs and nouns as pairs: place an order, book a shipment, issue a bill of lading, clear customs, post a goods receipt.
Put the Incoterms rules in a table that shows who pays for what and where risk passes, and always write them with the named place and the edition: 'FOB Mersin, Incoterms 2020'.
Practise short status updates out loud and in writing: 'The shipment left on Monday', 'The ETA has moved to Friday', 'The container is held at customs'.
Frequently asked questions
Which logistics terms should I learn first?
Start with the words that appear in every order and every shipment: supplier, purchase order, lead time, warehouse, inventory, pallet, shipment, carrier, freight forwarder, bill of lading, commercial invoice, packing list, customs clearance, Incoterms and ETA. The first tier of this list covers exactly these; then move on to the terms of your own role, such as warehousing, planning or customs.
What is the difference between logistics and supply chain management?
Logistics is about moving and storing goods: transport, warehousing and delivery. Supply chain management is broader and also covers procurement, supplier relationships, production planning and demand planning across all the companies involved. In practice the two words are often used loosely, and many job titles combine them.
Are Incoterms the same as payment terms?
No. Incoterms rules such as EXW, FOB or DAP say who arranges transport, who pays which costs and where risk passes from seller to buyer. They say nothing about how or when the buyer pays (for example by letter of credit or bank transfer), and they do not decide when ownership of the goods changes. Those points belong in the sales contract.
What are konşimento, irsaliye and GTİP called in English?
Konşimento is a bill of lading (B/L) in sea freight; in air freight the transport document is an air waybill (AWB), and in international road transport it is a CMR. İrsaliye is usually translated as a delivery note or dispatch note. GTİP is Turkey's version of the HS code, often called a tariff code or commodity code.
How do I write a clear shipment update email in English?
Put the reference first (order, booking, B/L or container number), then the status, the date and the next step: 'Booking 4521: the container was loaded on 3 May. ETA Rotterdam 28 May. We will send the B/L draft tomorrow.' Use short sentences, standard abbreviations and exact dates, and say clearly if anything is delayed and why.
