If you are a student aspiring to establish a career in the logistics industry, then you should better start equipping yourself with the industry terms and jargon even before you consider going for your industrial placement. Here are some of the most common phrases that you will encounter quite often, and what they mean:

Blanket Purchase Agreement

BPA is a contract between a buyer and seller in the purchase of goods in large quantities with the aim of cutting the costs in the future. The contract leaves adequate room to negotiate for discounts in the future should there be need to do so.

Reverse logistics

This is also known as Aftermarket Supply Chain or Aftermarket Logistics. It is a term used when a company reuses any materials or products with the aim of cutting costs. It may include reusing packaging and shipping containers.

Distribution Center

This refers to a facility smaller than a warehouse used, for storing goods temporarily in smaller quantities or upon receiving shipping.

Inventory Management Software

This should be fairly straightforward. It is simply software used to manage inventory and track the movement of the goods from the warehouse or the distribution center. It lets management observe the flow of goods, and determines which goods need to be ordered and in what quantities.

Escrow

Escrow is a third party service that will hold funds on behalf of the buyer and the seller until the services or goods have been delivered as agreed by both the seller and the buyer. The main goal of the Escrow is to protect the liabilities and interests of the buyer and the seller.

Just in Time (JIT)

This is a term used when products arrive just at the precise moment when they are needed. It helps in saving money since when products arrive early, they are likely to take up valuable space in storage, and this may be costly. If they arrive late on the other hand, they will lead to an overall lag in the entire supply chain process.