How Well Do You Know Logistics Lingo?
Although the business of logistics has existed for quite a while, it continues to evolve a fast pace. Those who are just beginning a career in logistics may feel a bit lost or overwhelmed by the amount of lingo and jargon used in the field. Here are a few common industry terms to know!
Blanket Purchase Agreement (BPA)
A BPA is a contract between a seller and a buyer for the purpose of purchasing goods in large qualities in order to cut costs. Contracts such as these ones usually offer the ability for renegotiation if it becomes necessary in the future.
When two parties have an agreement to exchange goods or services, a third party will hold any documents or funds until these services have been completed. A third-party escrow is used in order to protect both the buyer and the seller's interests and liabilities.
Procurement is a way of speaking about purchasing, which includes buying a product, but can also refer to the business of locating, negotiating prices, and the documentation of the purchase.
The entire process from procurement, to moving a product, to customer purchase is referred to as supply chain.
Transportation Management System (TMS)
This is a type of software used for logistics that allows users to manage the transportation of goods. Users can analyze costs, convert data, and plan the best routes for shipments.