Logistics terms that a good professional needs to know!


Being a professional of excellence is something that demands time, dedication and knowledge. In dynamic and complex sectors, this is even more relevant and, therefore, in this post we will present the logistics terms that every manager and professional in the area should know.

The sector has numerous technical and specific terms and, for daily life to be productive and the work performed to contribute to the development of the business, it is essential to know and understand each one of them.

Check out, below, 10 essential concepts for your work!


As a logistics manager, this is a very common term in your everyday life. But do you really understand what a warehouse is?

It is a space destined to the storage of raw materials, products in production and those that have already been finished and await the next stage of the supply chain. That is, the load stays in this environment for a limited time.

Note that these locations are designed to store large quantities of products, serving as outlets. In addition, they contribute to the regulation of the flow of goods, depending on the need and availability of the company.

Distribution Center (DC):

Less attentive and outdated professionals even confuse the concept of a Distribution Center with that of a warehouse, but they are not the same thing. In fact, despite being closely associated with the stock and warehouse, the activities and purpose of this place are quite different.

In fact, using a CD is intended to simplify distribution to direct and regional sellers. For this reason, they are warehouses located in strategic regions and store a large inventory — enough to meet the demands of the locality.

In a Distribution Center, the cargo is received in a consolidated manner, stored and then fractionated. Soon after, depending on the orders, it is forwarded to the customer – which can be a company or an individual.

Logistics Cost:

Every topic related to cost management in logistics is important. This is because the sector is complex and involves numerous operations that demand investments and consume much of the business budget.

Therefore, the concept of logistical cost refers to all the expenses necessary to put the sector in perfect working order. It is noteworthy that it is composed of essential elements, such as:

  • Inventory;
  • Storage;
  • Distribution;
  • Transport;
  • Operating expenses.


ERP is a business management system. In other words, it is a software that has multiple functions and helps managers and entrepreneurs to manage their businesses efficiently and safely.

The main objective of using this resource is to achieve a more organized and efficient corporation. The system collects important information about various processes and turns it into reports that streamline decision making and reduce the time and expense required to operate. For Forklift Rental or Repairing Consult here

The idea is to gather all the data in one place and thus simplify and speed up the identification of bottlenecks. As all sectors are integrated, there is an improvement in communication and in the general functioning of the business.


FIFO is the acronym for “first in, first out”, that is, “first product in is first out (PEPS)” and, as we will see, it is a storage method opposite to LIFO .

It is extremely useful for companies that work with perishable products with a short shelf life, as it reduces the rates of loss of goods. In addition, when well implemented, it reduces costs and favors the achievement of a more organized and controlled inventory.


Fulfillment is an English term translated as “fulfillment” or “fulfillment”. It is a recurring concept in the day to day of the sector and, in short, can be explained as the process of serving a customer.

Going a little deeper, it refers to the entire set of operations and processes performed from the receipt of the customer’s order to the final delivery of the product. The objective of monitoring these issues is to provide the best shopping experience to the consumer, conquer their satisfaction and loyalty.

By aamritri

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