Logistics Vocabulary Quiz
12 multiple-choice questions on logistics and supply-chain vocabulary: freight, warehouse, inventory, shipment, consignment, customs and distribution. B2 level.
Logistics Vocabulary — FAQ
The supply chain is the entire network that moves a product from raw materials to the final customer, including suppliers, manufacturers, warehouses, distributors and retailers. Logistics is one part of that chain: it focuses on the movement and storage of goods, covering transport, warehousing, inventory and delivery. In short, supply chain management is the big picture, while logistics is the hands-on coordination of getting products to the right place at the right time.
Both words refer to goods being transported, and in everyday use they often overlap. 'Cargo' usually means the goods themselves carried by ship, plane, train or lorry. 'Freight' can mean the goods too, but it also refers to the transport service and the charge for carrying them — for example, 'freight charges' or 'air freight'. So a vessel is loaded with cargo, while the cost of moving it is the freight.
A warehouse is a building used mainly to store goods, sometimes for long periods, until they are needed. A distribution centre (DC) is a more active facility: goods arrive, are sorted and processed quickly, and are dispatched to shops or customers, often within hours or days. A warehouse emphasises storage, while a distribution centre emphasises fast movement and fulfilment. Many modern facilities combine both functions.
Inventory (or stock, in British English) is the quantity of goods and materials a company holds, ready to sell or use. Inventory management means tracking how much you have, ordering more before you run out, and avoiding holding too much, which ties up money and space. You will hear terms such as 'stockout' (running out of an item), 'safety stock' (a buffer for unexpected demand) and 'stock turnover' (how quickly goods are sold and replaced).
A consignment is a batch of goods sent together to a customer or destination in a single delivery — for example, 'a consignment of 200 boxes arrived this morning.' The person or company sending the goods is the consignor, and the one receiving them is the consignee. In some retail arrangements, 'consignment' also describes goods left with a seller who only pays for them once they are sold.
A bill of lading is a key shipping document issued by a carrier to the shipper. It does three things: it acts as a receipt confirming the goods have been received for transport, it sets out the terms of the contract of carriage, and it serves as a document of title showing who can claim the goods. It lists the type and quantity of goods, the destination and the parties involved, so it is essential for international freight.
Customs clearance is the official process goods must pass through when they cross a border. It involves submitting the right documents, paying any duties or taxes, and getting approval from the customs authority before the goods can be released. A customs broker or freight forwarder often handles this on a company's behalf. Delays in clearance are a common cause of shipments being held up, so accurate paperwork is vital.
Lead time is the total time between placing an order and receiving the goods. It includes processing the order, manufacturing or picking the items, and transporting them. Shorter lead times let companies hold less stock and respond faster to demand, while long or unpredictable lead times force them to keep more safety stock. Reducing lead time is a major goal in efficient supply-chain management.
Just-in-time (JIT) is an inventory strategy where materials and goods arrive exactly when they are needed for production or sale, rather than being stored in advance. The aim is to cut storage costs and reduce waste by keeping stock to a minimum. JIT relies on reliable suppliers and accurate planning; its weakness is that any disruption, such as a delayed shipment, can quickly halt the whole operation because there is little buffer stock.
Useful logistics terms include 'haulage' (transporting goods by road), 'freight forwarder' (a company that arranges shipping on your behalf), 'pallet' (a flat platform goods are stacked on), 'to dispatch' (to send goods out) and 'fulfilment' (picking, packing and delivering orders). You will also hear idioms such as 'in the pipeline' (already on the way), 'to ship something out', 'a bottleneck' (a point where flow slows) and 'last mile' (the final delivery to the customer's door).