The logistics glossary.
Our industry runs on acronyms. Here’s what the most common ones mean, in plain terms, whether you’re new to logistics or just need a quick refresher.
3PL
Third-party logistics provider. A company, like us, that stores, handles and ships goods for other businesses.
FTL
Full truckload. One shipment fills an entire trailer, going straight from pickup to delivery.
LTL
Less-than-truckload. Your freight shares a trailer with other shipments, so you pay for the space you use.
Cross-docking
Freight comes in one dock door and goes straight out another, with little or no time in storage.
Drayage
Short-distance trucking, usually moving containers between a port or rail yard and a warehouse.
Pallet position
One spot in a warehouse rack that holds a single pallet. Storage is often priced per position.
SKU
Stock keeping unit. One distinct version of a product, such as a specific size and color.
WMS
Warehouse management system. Software that tracks inventory, locations and orders in the warehouse.
BOL
Bill of lading. The legal document that lists what’s being shipped, from where and to whom.
POD
Proof of delivery. The signed confirmation that a shipment arrived.
ASN
Advance ship notice. A heads-up sent before freight arrives, listing exactly what’s inbound.
Dry van
The standard enclosed trailer used for most palletized and boxed freight.
Flatbed
An open trailer for oversized or heavy freight that loads from the side or top.
Accessorials
Extra charges beyond the base freight rate, such as liftgates, detention or inside delivery.
Detention
A fee charged when a truck is held at pickup or delivery longer than the agreed free time.
Routing guide
A retailer’s rules for how suppliers must ship, label and schedule deliveries to them.
EDI
Electronic data interchange. The standard way large retailers and partners exchange orders and shipping data.
Freight class
An LTL rating from 50 to 500 based on density and handling that helps set the price.
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