Glossaries

A short section about the main meanings of logistics keywords.

  • FIFO

    Acronym for First in, First Out. A process used to manage stocks in which the first product arriving at the warehouse is also the first one that is sent out to markets. This system is used to avoid product obsolescence.

  • LIFO

    Acronym for Last In, First Out. A process used to manage stocks in which the last product arriving at the warehouse is the first one that is sent out to markets.

  • LOGISTIC OUTSOURCING

    The process of having suppliers provide warehouse logistics operations that were previously provided internally.

  • LOGISTICS

    Definition drawn up by the Italian Logistics Association (Associazione Italiana di Logistica AILOG): “all organizational, managerial, and strategical activities governing the flows of materials and related information, from the origin of each material at the supplier’s production site until delivery of finished products to clients and customer care services within a company”.

  • LOGISTICS OUTSOURCER

    A company specialized in managing warehouse logistics processes on behalf of third parties.

  • MATERIAL HANDLING

    The process of moving materials within a warehouse or a factory.

  • PHYSICAL DISTRIBUTION

    All operations required to carry a finished product from the factory / warehouse to the end user (buyer).

  • SUPPLY CHAIN

    (the acronym SCM – Supply Chain Management is often used to designate the same): the process of managing all corporate operations included in a company’s internal process, i.e. all operations, from raw material procurement to production and shipment to markets.

  • WMS

    Acronym for Warehouse Management System, a software used to physically manage warehouses that includes many functions to locate product storage areas, prepare and optimize picking operations, manage reception of raw materials and semi-finished products. The WMS software manages the whole logistics flow within the warehouse, from goods reception to picking, before orders are transferred to carriers. Full tracking of products stored in the warehouse, both in terms of quantities and in terms of locating products across the whole internal supply chain, is pivotal in this tool