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Terminology

Logistics Terminology

Acronyms, codes and technical terms used in logistics, freight transport, warehousing, customs and information systems. Each entry provides the expansion, usage context and regulatory references.

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AWB - Air Waybill

Air transport document issued by the airline or an IATA Cargo Agent. Not a negotiable title document (unlike the maritime B/L). The 11-digit AWB number (3-digit IATA carrier prefix + 8 serial digits) is the universal tracking identifier in international air cargo. Governed by the Montreal Convention 1999.

B/L - Bill of Lading

Maritime negotiable title document representing shipped goods. Simultaneously: cargo receipt, transport contract, and negotiable title enabling ownership transfer by endorsement. The "to order" B/L enables use in documentary credit (letter of credit) transactions. Governed by the Hague-Visby Rules.

CMR - Convention Marchandises Routières

International convention on the contract for the international carriage of goods by road (Geneva, 1956). Governs carrier liability, transport documents (CMR consignment note) and compensation limits (8.33 SDR per kg of lost/damaged goods). In force in all EU states and over 55 countries.

TMS - Transport Management System

IT system for transport planning, execution and optimisation. Core features: routing and scheduling, carrier selection, freight audit, shipment tracking, KPI dashboard. Integrates with WMS, ERP (e.g., SAP TM, Oracle OTM) and carrier EDI portals.

WMS - Warehouse Management System

IT system for warehouse operations management: inbound, slotting, picking, packing, outbound, inventory. Manages real-time position of every SKU, optimises picking routes and integrates with automation (conveyor, AGV, sorter). Examples: Manhattan WMS, Blue Yonder WMS, SAP EWM.

ERP - Enterprise Resource Planning

Integrated business management system covering core processes: finance, procurement, production, logistics, sales. In logistics it is the source of sales and purchase orders and the system of record for inventory. Primary ERPs: SAP S/4HANA, Oracle EBS, Microsoft Dynamics 365.

EDI - Electronic Data Interchange

Structured exchange of commercial documents between the IT systems of different supply chain stakeholders. Main standards: UN/EDIFACT (Europe), X12 (North America), XML/JSON for modern integrations, Cargo-XML (air). Key messages: ORDERS, DESADV, INVOIC, IFTMIN, IFTSTA.

SSCC - Serial Shipping Container Code

GS1 18-digit code uniquely identifying a logistics unit (pallet, parcel, container). Encoded in a GS1-128 barcode (Application Identifier 00). De facto standard for inter-organisational logistics traceability.

GTIN - Global Trade Item Number

GS1 code uniquely identifying a trade item (product). Includes EAN-13, EAN-8, UPC-A and GTIN-14. In logistics it distinguishes the product reference (GTIN) from the logistics unit (SSCC). Fundamental for EDI order management and WMS inventory.

GLN - Global Location Number

GS1 13-digit code uniquely identifying a physical or legal location (warehouse, delivery address, company). Used in EDI exchanges to identify trading partner locations unambiguously.

RFID - Radio Frequency Identification

Automatic identification technology using radio tags (UHF 860-960 MHz for logistics). Enables reading thousands of tags simultaneously without line-of-sight. Used for pallet tracking in warehouses, inventory control and anti-counterfeiting. Standard: GS1 EPC Gen2 / ISO 18000-6C.

GPS - Global Positioning System

Satellite positioning system used in logistics for real-time vehicle and container tracking. Integrated in TMS via OBD/telematics devices. Enables shipment visibility, dynamic ETA and proactive exception management.

FTL - Full Truck Load

Road transport mode in which an entire truck (typically 82 m³ / 24 tonnes) is dedicated to a single load/shipper. Faster transit times, no intermediate handling. Cost-effective for heavy or bulky loads.

LTL - Less Than Truck Load

Transport mode in which the shipment does not fill an entire vehicle; consolidated with other shipments at groupage hubs. More economical for small loads, but longer transit times. Synonym: groupage.

FCL - Full Container Load

Maritime mode where the cargo occupies an entire container (20' TEU or 40' FEU). Priced per container, no intermediate handling, sealed cargo. Contrasted with LCL (Less than Container Load).

LCL - Less than Container Load

Cargo that does not fill a complete container. Consolidated with other cargo at a CFS (Container Freight Station). Priced by weight/volume. Suitable for loads under 10 m³ and less time-sensitive shipments.

TEU - Twenty-foot Equivalent Unit

Standard measurement unit for container ship capacity, equivalent to a 20-foot ISO container (6.1 m × 2.4 m × 2.6 m). 40-foot containers equal 2 TEU. Used to measure containership capacity (e.g., Ultra Large Container Vessel: 24,000 TEU) and terminal throughput.

POD - Proof of Delivery

Document evidencing cargo delivery with consignee signature, date, time and receiver name. In digital form (ePOD) captured by the courier on a mobile device and immediately available in the TMS. Legal evidence of transport contract fulfilment.

OTIF - On Time In Full

Logistics KPI measuring the percentage of orders delivered on time (OT) and complete (IF). Formula: OTIF% = (orders OT & IF / total orders) × 100. Industry standard: > 95% for grocery retail, > 98% for automotive JIT.

FCR - First Consignment Rate

Percentage of shipments successfully delivered on the first attempt. Critical KPI for last-mile delivery and customer satisfaction. Typical target: > 90% for B2C deliveries.

ETA - Estimated Time of Arrival

Dynamic estimate of a shipment's arrival time at the consignee. Calculated based on carrier GPS position, traffic conditions and historical performance. Communicated to the consignee via SMS/email notifications or tracking portal.

DESADV - Despatch Advice

EDI message (UN/EDIFACT: DESADV; X12: 856 ASN) sent by the shipper to the consignee before the shipment, containing parcel details, items, quantities and SSCCs. Enables automated pre-receiving (cross-reference order → delivery) in the consignee's WMS.

ASN - Advance Shipment Notice

Advance shipping notice (English equivalent of DESADV). Sent by the supplier to the customer before goods arrive, with details on parcels, contents, SSCCs and ETA. Prerequisite for automated receiving without manual inspection.

HS Code - Harmonized System Code

International customs code (6 digits + national extensions to 8-10) classifying goods for tariff and statistical purposes. Managed by the World Customs Organization (WCO). The correct HS code determines applicable duties, trade defence measures and compliance requirements.

AIS - Automatic Identification System

Mandatory transponder on merchant vessels transmitting position, heading and speed. Used for real-time tracking of maritime shipments via platforms such as MarineTraffic. Integrated with carrier milestone APIs (Maersk, MSC, CMA CGM) for supply chain visibility.

GDP - Good Distribution Practice

EU guidelines (EMA 2013/C 343/01) governing pharmaceutical distribution under temperature control. Requirements: +2/+8°C storage and transport monitored with certified data loggers, equipment qualification, documented QMS, supplier audits, deviation management plan.