10 Logistics and Warehouse Terms to Know  

In recent years, the Covid-19 pandemic and shifting tariff policies have heightened mainstream focus on the supply chain like never before. To help you navigate this complex and evolving landscape, here are 10 essential logistics and warehouse management terms to know:  

Moving goods from point A to point B is more complicated than it might sound. Third-party logistics companies—often referred to as “3PLs”—offer comprehensive transportation, warehousing, order fulfillment and supply chain services to help companies move their products and manage returns. 

When you’re shipping millions of dollars’ worth of products, it’s important to keep receipts handy. That’s where a bill of lading comes in. The legal document includes key details about the goods being moved, outlines the agreement between the shipper and carrier, and verifies transfers of ownership.  

Distribution centers act as middlemen between manufacturers and consumers, providing short-term storage solutions and facilitating order fulfillment. These warehouses are often located in infill locations near key infrastructure and population hubs—just like the last-mile logistics real estate in Link Logistics’ portfolio. Strategic locations create opportunities for faster delivery speeds, allowing companies to keep up with rising customer expectations. (Check out our latest Pulse Report for a breakdown of this trend.) 

Have you ever seen a warehouse with parallel rows of dock doors on both sides? That was probably a cross-docking facility. Cross-docking moves inbound goods to outbound transportation with little to no storage time in between. Cross-docking facilities are a great choice for retail, e-commerce, and food and beverage companies striving to meet speedy delivery standards.   

If operations are the “body,” warehouse management systems are the “brains.” These intricate systems—frequently shortened to “WMS”—enable companies to manage inventory, order fulfillment, labor resources and even robots through software. The enhanced control and real-time data insights provided by warehouse management systems transform four-walled spaces into profit-boosting ecosystems that help companies efficiently serve their customers.  

In warehousing, SKUs—shorthand for “stock-keeping units”—function as individual product ID numbers to support inventory management. Warehouse management systems leverage SKUs to track products, measure demand, support order fulfillment, inform replenishment timing and streamline picking processes. In short, SKUs help warehouse employees know what they’re looking for and where to find it.  

Have you noticed grocery stores put goods that are closest to expiration at the front of the shelves? That’s the “First In, First Out” inventory principle, otherwise known as FIFO, in action. Goods that arrive at a warehouse first are prioritized for outbound shipments, reducing spoilage and minimizing waste.  

Replenishment ensures in-demand products are always available for order fulfillment at warehouse picking locations. The process involves flagging low inventory levels and transferring goods from storage to fulfillment zones. Warehouse management systems can trigger replenishment, leveraging SKUs and FIFO for maximum efficiency.  

While replenishment refers to re-stocking products, inventory turnover measures how many times a company sells and replaces its entire inventory stored at a facility within a given timeframe. This metric can shed light on sales performance, with a high inventory turnover signaling strong demand. When a facility has a high inventory turnover, being in the right location becomes even more critical to deliver a competitive advantage for the company’s supply chain network. 

Think of your grocery list. A pick list functions similarly, providing key order and location details that employees reference as they select items for fulfillment. Picking systems can vary in complexity—involving a range of tactics like batch picking—and can be supported with automation.  

And there you have it—10 logistics and warehouse management terms to know! Check out more industrial real estate stories on The Warehouse, Link Logistics’ blog, here.