Logistics Glossary
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Last In First Out (LIFO)
In inventory control and financial accounting, this refers to the practice of using stock from inventory on the basis of what was received last is consumed first. This has limited use in stock keeping and is primarily a cost-accounting method.
Last mile delivery
The process of transporting goods from a warehouse or distribution center to their final destination (the customer). Last mile delivery refers exclusively to the final stage of the logistics supply chain (and happens after packing and vehicle loading).
Lead Time
The total time that elapses between an order’s placement and its receipt. It includes the time required for order transmittal, order processing, order preparation, and transit.
Leg
A leg has an origin, destination, and carrier and is composed of all consecutive segments of a route booked through the same carrier.
Logistics
The process of planning, implementing, and controlling procedures for the efficient and effective storage of goods, services, and related information from the point of origin to the point of consumption for the purpose of conforming to customer requirements. This definition includes inbound, outbound, internal, and external movements.
Lot Control
A set of procedures (e.g., assigning unique batch numbers and tracing each batch) used to maintain lot integrity from raw materials, from the supplier through manufacturing to consumers.