New in the world of logistics, hence overwhelmed by the industry jargon? Well, you are not alone! To help you navigate this complex field, we’ve compiled a beginner’s guide to explain some of the most important terms and concepts.

What is it all about?

Logisticians are concerned with the effective and efficient flow of goods, services, or information from a point of origin to a point of consumption. This it does by preparing, organizing, and operating resources such as materials, people, and vehicles to meet customer requirements.

Logistics allows for timely delivery of the products, in the correct quantity, at the proper cost.


Key Terms and Concepts

  • Supply Chain: The sequence of suppliers that are involved through the movement of goods or services from the source to the customer.
  • 3PL Third-Party Logistics Provider: A company that provides outsourced logistics services.
  • Inventory Management: A course of actions which involves planning, organizing, and controlling the storage and movement of goods.
  • Shipping: This means to move goods from one location to another.
  • Fulfillment: Fulfilling or executing an order, it involves preparation and shipment to the customers.
  • Inbound Logistics: Inbound logistics is the movement of goods into a warehousing facility or a manufacturing one.
  • Outbound Logistics: The movement of goods leaving the warehouse or manufacturing facility to customers is known as outbound logistics.
  • Freight Forwarding: Freight forwarding includes the arrangement for transporting goods from one place to another.
  • Customs Clearance: Customs clearance is the process associated with obtaining permission from the government in order to import or export goods.
  • Last Mile Delivery: This is the final stage of the delivery process.


Understanding these important terms and concepts is critical if you’re a player in this field. Knowing the definition of these terms will help you in better understanding what the professional in logistics is trying to communicate and in turn, make prudent decisions concerning your business operation.