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Logistics and Supply Chain Vocabulary

Logistics and supply chain have a rich, precise vocabulary. Knowing it helps you communicate clearly and operate confidently. Here's a practical primer.

Digby R. Kerr
By Digby R. Kerr — Wharton MBA, author of 12 books, founder of Kerr University™. 35+ years leading global business.

Core operational terms

'Freight,' 'lead time,' 'SKU,' 'fulfillment,' 'inventory,' 'warehouse,' 'last mile.' These describe the movement and management of goods, and come up constantly across the field.

Trade and shipping terms

'Incoterms,' 'customs,' 'bill of lading,' 'container,' 'demurrage,' 'freight forwarder.' International logistics has its own language — command of it is essential for global coordination.

Metrics and performance

'On-time delivery rate,' 'fill rate,' 'cycle time,' 'backorder.' These measure supply chain health. Using the right terms accurately signals you understand operations and helps everyone stay coordinated.

Frequently asked questions

What logistics vocabulary should I know?

Operational terms (freight, lead time, SKU, fulfillment) and trade terms (incoterms, customs, bill of lading).

What are incoterms?

Standard international trade terms defining who's responsible for shipping, risk, and costs at each stage.

Why learn precise logistics terms?

Accurate vocabulary keeps global operations coordinated and signals expertise.

How can I build logistics English?

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