Supply Chain Strategy
Glossary
Network design, nearshoring, mode optimization, and more. Explore the strategic supply chain concepts that drive long-term shipping decisions.
Capacity Planning (Freight)
See Full Definition ->The process of securing enough carrier capacity - trucks, trailers, containers, or other equipment - to move forecasted freight volumes on time, especially during demand surges, peak seasons, or tight market conditions.
Carrier Diversification
See Full Definition ->A risk management strategy where shippers distribute freight volume across multiple carriers and modes to reduce dependency on any single provider and improve resilience against capacity disruptions.
Continuous Improvement (Logistics)
See Full Definition ->An ongoing, data-driven approach to incrementally improving logistics performance - cost, speed, accuracy, and service - by measuring results, identifying inefficiencies, and refining processes over time.
Dedicated Fleet / Dedicated Contract Carriage
See Full Definition ->A carrier service model where trucks and drivers are exclusively assigned to a single shipper under a long-term contract, combining the control of a private fleet with the operational management of a for-hire carrier.
Freight Cost Reduction
See Full Definition ->Lowering the total amount spent on moving goods by optimizing carrier selection, load efficiency, mode choice, accessorial management, and invoice accuracy - without compromising service levels.
Freight Market Outlook
See Full Definition ->An analysis of current and projected freight market conditions - including capacity availability, rate trends, demand patterns, and economic indicators - used by shippers and carriers to plan procurement, budgets, and network strategy.
Nearshoring / Reshoring (Logistics Impact)
See Full Definition ->The shift of manufacturing or sourcing closer to end markets - nearshoring to neighboring countries, reshoring back to the domestic market - which restructures transportation networks, carrier needs, and freight patterns.
Order-to-Cash (OTC)
See Full Definition ->The end-to-end business process from receiving a customer order through delivery, invoicing, and payment collection - encompassing order management, fulfillment, transportation, proof of delivery, and accounts receivable.
Order-to-Delivery
See Full Definition ->The operational process from the moment a customer order is released for fulfillment through final delivery at the destination - encompassing warehouse processing, shipment planning, carrier execution, in-transit visibility, and delivery confirmation.
Private Fleet vs. Common Carrier
See Full Definition ->The strategic decision between operating your own trucks (private fleet) and hiring external carriers (common carriers) to move freight - each with different cost structures, control levels, and scalability trade-offs.
Scope 3 Emissions (Transportation)
See Full Definition ->Indirect greenhouse gas emissions from a company's value chain that it doesn't directly control - with freight transportation typically the largest contributor, covering emissions from carriers, 3PLs, and other logistics providers moving the company's goods.
Seasonal Shipping / Peak Season Logistics
See Full Definition ->The surge in freight volumes driven by seasonal demand cycles - holiday retail, produce harvest, back-to-school, promotional pushes - that strains carrier capacity, inflates rates, and tests operational readiness.
Supply Chain Optimization
See Full Definition ->The systematic process of improving supply chain performance - cost, speed, reliability, and service levels - by analyzing data and refining operations across sourcing, production, transportation, and fulfillment.
Supply Chain Resilience
See Full Definition ->A supply chain's ability to anticipate, absorb, and recover from disruptions - whether demand surges, carrier failures, weather events, or systemic shocks - while maintaining acceptable service levels.
Sustainability in Logistics / Green Freight
See Full Definition ->The practice of reducing the environmental impact of freight transportation through strategies like load optimization, mode shifting, carrier selection based on emissions data, and carbon footprint measurement and reporting.
Total Cost of Logistics
See Full Definition ->The complete cost of moving goods from origin to destination - including freight rates, accessorial charges, warehousing, packaging, insurance, claims, technology, and internal labor - not just the line-haul rate on a carrier invoice.
Transportation Optimization
See Full Definition ->The process of minimizing freight costs and maximizing service levels by selecting the best combination of carriers, modes, routes, and load configurations for every shipment.
