Micro Logistics Terms and Explanations
OTH ACADEMY | Logistics Knowledge Center
Micro logistics is a modern logistics approach that encompasses urban distribution, rapid delivery, small-scale warehousing, and last-mile operations. On this page, you can find the most commonly used terms in micro logistics processes in a simple and easy-to-understand format.
1. Warehouse and Micro Fulfillment Terms
- Micro Fulfillment Center (MFC) — A small warehouse located within a city and optimized for rapid order fulfillment.
- Dark Store — A store closed to customers and used exclusively for preparing online orders.
- Picking — The process of collecting ordered products from shelves.
- Batch Picking — A method of picking multiple orders simultaneously.
- Wave Picking — The process of preparing orders in batches at specific time intervals.
- Zone Picking — A picking method in which warehouse employees are assigned to specific zones.
- Putaway — The process of placing incoming products in appropriate warehouse locations.
- Packing — The process of packaging orders and preparing them for shipment.
- Slotting — A plan for placing products in the most efficient locations within a warehouse.
- Inventory Accuracy — The rate of consistency between physical inventory and system inventory.
- Safety Stock — Inventory held as a safeguard against sudden increases in demand.
- Stock Visibility — The ability to view inventory levels in real time within the system.
2. Delivery and Distribution Terms
- Last Mile Delivery — The final stage of delivery, when the product reaches the customer.
- On-Demand Delivery — Immediate delivery carried out as soon as an order is received.
- Hyperlocal Delivery — An ultra-fast delivery model within a neighborhood.
- Express Delivery — Delivery that is faster than standard delivery.
- Same-Day Delivery — Delivery of an order on the same day it is placed.
- Delivery Window — The time period during which the delivery is scheduled to take place.
- ETA – Estimated Time of Arrival — The estimated time of arrival.
- Real-Time Tracking — The ability to track an order in real time.
- Courier Allocation — The assignment of an order to an appropriate courier or driver.
- Fleet Management — The management of vehicle and courier operations.
- Delivery Density — The concentration of deliveries made within a specific area.
3. Route and Operations Planning Terms
- Route Optimization — Determining the fastest and most efficient delivery route.
- Dynamic Routing — Updating routes in real time based on traffic and order volume.
- Load Balancing — Distributing orders evenly among couriers.
- Order Consolidation — Combining nearby deliveries into a single shipment.
- Dispatch — The process of sending orders out for delivery.
- Delivery SLA — The service commitment time specified for delivery.
4. Distribution Network and Structural Terms
- Hub — The main distribution center where deliveries are sorted.
- Spoke — Sub-distribution areas connected to a hub.
- Micro Hub — A small neighborhood-based distribution center.
- Cross Docking — The process of transferring products directly to shipment without storing them in the warehouse.
- Urban Logistics — Urban logistics planning.
5. Returns and Customer Operations
- Reverse Logistics — The collection and management of returned products.
- Click & Collect — Collecting an online order from a store.
6. Special Operations Terms
- Cold Chain Micro Logistics — The short-distance transportation of products requiring cold chain conditions.
- Touchpoint — All points through which an order passes during the process.
OTH ACADEMY Note
This content has been prepared to help logistics professionals and those new to the industry better understand micro logistics processes. The terms are regularly updated and expanded.