The logistics and e-commerce industry is full of terms and acronyms like 3PL, SCM and crossdocking. For new or expanding companies and business owners, the terms can come across as an impenetrable jungle. We want it to be easy to do business online, which is why we have gathered all our knowledge and experience in articles specifically about many of the terms used in anything related to logistics, customs, and more. The articles contain explanations and advice for anyone wondering whether things like 3PL, SCM and crossdocking is something for their business.
Glossary
A
- Address change, company
- How to temporarily or permanently change the address of your company: information, cost, alternative for mail forwarding.
B
- Backorder
- What are backorders? We explain what the term means and when and how it can increase your sales.
C
- Cash Against Documents (CAD)
- What is Cash Against Documents (CAD)? We explain how it works and when it’s used.
- Central warehouse
- A central warehouse is a warehouse from which a company sends all their products. We explain the pros and cons of the method, and what you need to consider when choosing a warehouse solution.
- Consolidation of logistics
- By combining multiple deliveries into one transport you can save money and reduce the environmental impact. Learn more about how consolidation works in practice.
- CPFR
- CPFR is a method for creating a time and cost effective supply chain. We explain how it works and the advantages of the method.
- Commercial invoice
- What is a trade invoice? When should a trade invoice be sent? What should it contain? We explain the basics.
- Crossdocking
- Crossdocking reduces stock and can lead to great savings for your business. We explain the term crossdocking, who can use it, and the pros and cons.
D
- Delivery note
- A delivery note is a document with a summary of the contents of a delivery. In the delivery note it is specified what product or products have been delivered, and it can sometimes contain information that the buyer might need for bookkeeping.
- Demand management
- What is demand management? We explain the term and how companies can use the method to increase profitability.
- Direct delivery
- What is direct delivery? Learn more about how it works, the terms associated with it, and the various direct delivery options offered by PostNord.
- Discarded Products
- The discarding of goods leads to increased costs for you as a business owner, and is bad for the environment. Learn more about what you can do to minimize the need to discard products.
- Distribution channel
- What is a distribution channel, and how can it help your company’s distribution and sales? What should you consider when choosing distribution channels?
- Distributor
- What does a distributor do? Learn more about the work tasks, various types of distributors, and get tips and advice for people who want to work as distributors.
- Dropshipping
- Sell online without the need for stock and logistics solutions. We explain what dropshipping is and how to get started.
E
- EDI
- EDI – Electronic Data Interchange – makes it possible for companies to send information like invoices, order confirmations and notifications electronically. Learn more about how it works and the advantages of the service.
- Export subsidy
- Export subsidy is a trade economic tool. We explain what it means and what consequences it can lead to.
F
- Forwarding of mail for companies
- Mail that has been sent to the company’s old address is automatically redirected to the new address. Here’s how mail forwarding works for businesses.
- Forwarding agent
- What does a freight forwarder do? Learn more about the role of a forwarding agent, different types of dispatch companies, and workplaces.
G
- General agent
- A general agent is a trade agent with the sole rights to conduct business. We explain what this means, and the pros and cons of this form of distribution.
H
I
- Incoterms
- Incoterms regulates, among other things, the risks and responsibilities of international shipments and business. We explain the most common terms and what you need to know about them.
- Incoterms, CIP
- CIP: Carriage and Insurance Paid to. What does the delivery term CIP mean, and how does it differ from CPT? What should buyers and sellers consider related to CIP deliveries?
- Incoterms, CPT
- CPT: Carriage Paid To. The delivery term CPT means that shipping has been paid to the destination. What responsibilities apply to the buyer and seller respectively for CPT deliveries?
- Incoterms, DAP
- DAP: Delivered at Place. The delivery term known as DAP has been updated in Incoterms 2020. Do you know who is responsible for costs and risks during a shipment? Learn more about DAP and the difference compared to DDP.
- Incoterms, DDP
- DDP: Delivered Duty Paid. DDP carries the most obligations for the seller. What should you consider as a business owner when sending shipments with DDP?
- Incoterms, DPU
- DPU: Delivered at Place Unloaded. DPU is a delivery term introduced in Incoterms 2020. Learn more about what DPU means for sellers and buyers.
- Incoterms, EXW
- The delivery term EXW is an abbreviation of ’Ex Works’. We explain when a sale is covered by EWX and what it means.
- Incoterms, FCA
- FCA stands for ’Free Carrier’. When does the responsibility and risk carry over from seller to buyer when FCA applies? We clarify the details.
- Intermodal transports
- What are intermodal transports and how do they work? We also explain the similar term ’combi transport’.
- Inventory management software
- Inventory management software is a program to make stock and order management more efficient. Learn more about what it means and the solution PostNord can offer.
J
- Just in time
- Just in time is a method of planning to minimize loss and make production and delivery more efficient. Learn more about the pros and cons and how PostNord can assist you.
K
L
- Lead time
- What is lead time, and why is lead time crucial to stay competitive? We explain the term and offer advice on how to optimize your company’s lead times.
- Logistician
- What does someone working in logistics do? Read about common work tasks, education routes and workplaces, and more.
- Logistics flow
- A logistics flow means all activities that make it possible to deliver to a customer. How to find logistical solutions that improve your profitability.
M
N
O
- Operational purchasing
- What is operational purchasing? Learn more about how it works and what you need to consider.
- Order number
- What is an order number, and how does it differ from a tracking number? We explain the terms.
P
- Partial delivery
- A partial delivery means to split an order and deliver it in multiple shipments. Learn more about how this works, and the pros and cons of this delivery method.
- Point of Sale System
- What is a Point of Sale system and how is it used? Learn more about how it can improve your sales and what PostNord features can be integrated.
- Proforma invoice
- A proforma invoice is an invoice sent ’for the sake of form’. When should a proforma invoice be issued? What should it contain?
- Purchasing
- How purchasing works in small and large companies. The important things to consider, tips for a more profitable purchasing function, and a lot more.
Q
R
S
- Shipping agreement
- What is a shipping agreement, and why should you sign one? Learn more about what PostNord can offer.
- Shipping label
- What is a shipping label? All you need to know about what information a shipping label should include, and what it can be used for.
- Strategic purchasing
- What does strategic purchasing mean? We explain the term and how you can create a functional strategic purchasing process.
- Supply Chain Management (SCM)
- What does supply chain management mean, and how does it work in practice? Learn more about this core term in distribution.
T
- Third party logistics (3PL)
- Automate parts of the company’s shipping management using third party logistics. How to get the best 3PL experience.
- Tracking number
- What is a tracking number, how does it work, and how does it differ from an order number? We clarify the terms.
- Trade war
- What is a trade war, and who is affected by it? We explain what you need to know as a business owner.
U
- Unit load
- Unit load means that multiple products are packaged and loaded together. Learn more about different types of unit loads, the pros and cons, and how it allows for deliveries that are more efficient.
V - W
- Warehouse management
- How to choose the right tool to make stock and warehouse management more efficient, and take back control of your stock.
- Warehousing
- Maintain control over warehouse costs, storage periods, turnover rate and inventory intensity. When is it better to outsource your stock keeping?
- Waybill
- A waybill or bill of lading can be described as a form of document that is included with a shipment.
- Wholesale trade
- What does wholesale trade mean and how does it work? Can wholesale and retail be conducted simultaneously? Read our introduction to wholesale trading.