Logistics Key Terms

Business.com / Starting a Business / Last Modified: February 22, 2017

Logistics is the management of goods, information and resources as they move from one place to the other, from a beginning to an end ...

Logistics is the management of goods, information and resources as they move from one place to the other, from a beginning to an end point where the transported goods will be consumed and used. This definition of the industry widens the audience of logistics specialists from the military to all kinds of businesses located all around the world. There are a number of aspects of logistics important to the overall success of the process, including an integration of information, transport of the goods, inventory of the products, storage, handling of the materials, packaging and protection to keep items secure as they are transported.

To learn more about the intricacies of logistics, consider key terms and concepts relating to the process.

Free zone

A free zone, often abbreviated by the acronym FZ, is a specific area of land which has been designated as an area of free trade. This designation is made by the government of a country or region. Examples of free zones include ports, cities and other regions established for the purpose of free trading.

American Standard Code for Information Interchange

The American Standard Code for Information Interchange is expressed with the acronym ASCII. The ASCII is used primarily when data transmission is taking place between a point of origin and an ending location. Characters set for use in the American Standard Code for Information Interchange include one hundred and twenty-eight letters, upper and lower case versions, as well as numbers and special symbols. Each of these characters is embedded with a seven-bit binary number.

Value added network

The value added network is a system which leases communication lines. The lines are leased from one communications common carrier. This carrier works to improve the communication line through added improvements, which often include error detection and a faster response time. Once these enhancements have been made, the value added network carrier allows others to utilize the service for a fee. Value added network is abbreviated as VAN.

Tare weight

The tare weight makes up the weight of a transported items container or packaging. It may also refer to the empty weight of a vehicle or the container which will be transporting a particular item or items from place to place.


A repository is used as an area in which descriptions and behaviors of object may be stored. Some enterprise object examples would include requirements and policies, processes and important data, software libraries, upcoming and past projects, platforms utilized by businesses, entities and individuals and personnel information. It is a single point of definition used as a reference site for all resources in a system.


Maintainability refers to the measure of an item's ability to be retained or restored. This is used in reference to specific required conditions whereby personnel is required to perform maintenance via specified skills and levels of such skills. Maintainability requires prescribed resources and procedures for both maintenance as well as repair.

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