TMS and Logistics Glossary
Last updated:
In short
This glossary gives short, clear definitions of the transportation management, logistics and AI terms you will meet when reading about TMS software and AI-native TMS.
Software and AI terms
- TMS (Transportation Management System)
- Software used to plan, execute, track and cost the transport of goods.
- AI-native TMS
- A TMS whose architecture is designed around AI from the start, rather than having AI added later.
- AI-enabled TMS
- An existing TMS to which AI features have been added afterwards.
- Copilot
- An AI assistant embedded in software that users can question and instruct in natural language.
- AI agent
- AI software that plans and carries out several steps on its own to reach a goal.
- LLM (Large language model)
- An AI model that understands and generates text; the basis for reading emails and documents.
- Control tower
- A central view where all shipments, risks and exceptions are monitored on one screen.
- SaaS
- Software used over the internet on a subscription; cloud-based software.
- API
- An interface that lets two pieces of software exchange data.
- EDI
- The electronic exchange of documents such as orders and invoices between companies in a standard format.
- WMS
- Warehouse management system. Manages receiving, stock and dispatch inside the warehouse.
- ERP
- Enterprise resource planning. The main system for company processes such as finance, purchasing and inventory.
Transport terms
- Freight forwarder
- A company that organises transport on behalf of the cargo owner.
- Freight (rate)
- The charge paid for a transport service.
- FTL / LTL
- Full Truck Load and Less than Truck Load in road transport.
- FCL / LCL
- Full Container Load and Less than Container Load in ocean transport.
- Bill of lading (B/L)
- The document of title in ocean transport showing the cargo has been received. The MBL is issued by the shipping line, the HBL by the forwarder.
- AWB
- Air Waybill. The MAWB is issued by the airline, the HAWB by the forwarder. The standard for its electronic version is set by IATA; for how it appears in a TMS, see this air freight example.
- CMR
- The consignment note used in international road transport.
- Incoterms
- International delivery terms that set how cost and risk are split between buyer and seller (EXW, FOB, CIF, DAP and others). The rules are published by the International Chamber of Commerce (ICC).
- Intermodal transport
- Moving cargo in the same transport unit using more than one mode. A software-side example: a TMS for intermodal freight.
- ETA / ETD
- Estimated Time of Arrival and Estimated Time of Departure.
- POD
- Proof of Delivery. Shows that the cargo was handed over to the consignee.
- Demurrage / Detention
- Charges for keeping a container beyond the free time inside the port (demurrage) or outside it (detention).
- 3PL / 4PL
- A third-party logistics provider, and a fourth-party provider that manages the whole supply chain on the customer's behalf.