Transportation and Logistics Key Terms

Learn more about concepts in transportation and logistics

By Terri Deno

Transportation and logistics are the backbone of industries that rely on manufacturing physical goods for consumers. The transportation of the products is just one step in the whole process of logistics, but it is one of the most important aspects of delivering goods from the factory or warehouse to the vendor. There is a variety of different concepts used in logistics to streamline the process, depending on the type of products being transported.

Outsourcing

Outsourcing is the process of a business choosing to pay an outside firm to handle the transportation and logistics of its products. This is also sometimes referred to as a subcontract.
Try: North Carolina State University's Supply Chain Resource Cooperative offers statistics and studies on the decision for companies to outsource their transportation needs.

Backhaul

Backhaul is the movement of vehicles from the original destination back to the point of origin with a full load, as opposed to an empty truck, ship, airplane or railcar.
Try: Fleet Owner offers an article on how many transportation companies are using the Internet to find backhaul opportunities instead of using more traditional methods.

Efficient consumer response (ECR)

An efficient consumer response is an initiative from the grocery industry that uses actual consumer demand data rather than forecasting to determine what products to restock.
Try: The Food Marketing Institute offers background on ECR management and how different companies are using this initiative to reduce costs in all areas.

Flow-through distribution, cross-docking

Flow-through distribution, or cross-docking, is the process of bringing products from multiple locations into a single facility, where the products are resorted according to the delivery destination.
Try: CIO offers a detailed explanation of cross-docking and how the process works to save time and money for the transportation fleet in any logistics system.

Integrated logistics

Integrated logistics is a way of managing a whole supply chain system, from the purchase of raw materials to the distribution of the finished product.
Try: Hofstra University's Geography of Transport Systems offers a diagram and explanation of how integrated logistics benefits a company.

Intermodal transportation

Intermodal transportation is the process of transporting freight using more than one mode of transportation. All types of transportation are used in the intermodal process, including ships, trucks, trains and airplanes.
Try: RSI Logistics provides information on how it uses bulk intermodal shipping, how pricing is determined, and what type of equipment is used in this process.