The ABC's of Supply Chain and Logistics

The supply chain industry is complex, but its terminology doesn't have to be.


To ensure that, we have created a cheat sheet of some terms used in supply chain in alphabetical order for ease of compression and recollection.

If you are a student or starting out in the cargo industry, grab a copy of this sheet now.

Some of the definitions include:

Asset Tracking
The method of tracking physical assets, either by scanning barcode labels attached to the assets or by using tags using GPS or RFID technology that broadcast their location.

Backorder
Products ordered but out of stock and promised to ship when available.

Capacity Planning
The process of determining the production capacity needed by an organization to meet changing demands for its products.

Demand Forecasting:
The process of estimating the quantity of a product or service that consumers will purchase.

EDI (Electronic Data Interchange):
The electronic interchange of business information using a standardized format; a process which allows one company to send information to another company electronically rather than with paper.

Fulfillment Center:
A specialized warehouse facility that focuses on order processing, picking, packing, and shipping products directly to consumers on behalf of e-commerce and online retail businesses. It plays a key role in ensuring fast, efficient delivery of goods to customers.

All the way to

Zone Picking:
A method of order picking in a warehouse where the picking area is divided into separate zones, and order pickers are assigned to specific zones and only pick items within that zone.