A plain-English guide to logistics terminology

If you have ever found yourself in a logistics meeting wondering what half the abbreviations meant, you are not alone. From 1PL to WMS, the logistics and supply chain industry often relies on technical terms that can be difficult to follow. This is especially true for businesses that are growing quickly and stepping into warehousing or operational planning for the first time.

You do not need to master every term to run an efficient operation. However, becoming familiar with the most commonly used abbreviations might help you ask informed questions, reduce misunderstandings, and make better decisions as your business evolves.

To make this easier, I have put together a reference guide that explains 101 frequently used logistics abbreviations. It outlines what they mean and gives a short description. Below is a short selection to get you started.

Whether you are managing logistics in-house or working with external providers, understanding these terms can help improve day-to-day communication.

Download the full Logistics Abbreviation 101 guide at the bottom of this article.

Abbreviation	What it means	Description
1PL	First-Party Logistics	A company handles all logistics activities in-house, including transport and warehousing, without external help.
2PL	Second-Party Logistics	A company outsources specific logistics tasks, such as transport, while managing the rest internally.
3PL	Third-Party Logistics	A company outsources several logistics functions—like storage, transport, and fulfilment—to an external provider, allowing more focus on core activities.
4PL	Fourth-Party Logistics	An external partner manages the entire supply chain on the company’s behalf, coordinating across multiple logistics providers to ensure efficiency.
ASN	Advanced Shipping Notice	A notification sent before goods arrive, providing details about the shipment.
CRM	Customer Relationship Management	A system used to manage and improve a company’s interactions with current and prospective customers across sales, marketing, and service.
DGD	Dangerous Goods Declaration	A mandatory document for shipping hazardous materials. It outlines the classification, content, and handling instructions.
FCL	Full Container Load	A shipment that occupies an entire container, often used for bulk or high-volume transport.
FEFO	First Expired, First Out	An inventory method where products with the earliest expiry dates are used or shipped first. Common in food, healthcare, and pharmaceuticals.
FF	Freight Forwarder	A company or individual that organises the shipping and storage of goods. They coordinate transport, manage customs, and support international logistics.
FOH	Free on Hand	Refers to goods that are ready for delivery or pick-up without further charges. Typically used in warehousing or distribution.
HAWB	House Air Waybill	A detailed shipment document used in air freight, prepared by a freight forwarder.
KPI	Key Performance Indicator	A measurable value used to assess performance in logistics or operations.
LSP	Logistics Service Provider	A company offering various logistics solutions, such as storage, transport, and supply chain management. It may operate as a 3PL or 4PL depending on its services.
MHE	Material Handling Equipment	Equipment used to move, store, and handle goods within a warehouse. Examples include forklifts, conveyors, and pallet jacks.
OMS	Order Management System	Software that tracks and manages customer orders from placement through to delivery. It supports smooth coordination between sales, inventory, and shipping.
PPM	Parts Per Million	A metric used in quality control to measure the rate of defects in manufacturing or production processes.
RFP	Request for Proposal	A formal document issued to gather detailed offers from suppliers, often used for complex or customised services beyond just pricing.
SKU	Stock Keeping Unit	A unique identifier used to track each individual product variant in inventory systems.
WMS	Warehouse Management System	Software that manages warehouse operations, including inventory tracking, picking, and stock movement to improve efficiency.

Download the full Logistics Abbreviation 101 guide here:

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