Glossary-L

L/C

A Letter of Credit is the basic document for documentary credit. Documentary credit concerns a process in which a bank, at the request of a buyer of goods, undertakes to pay the seller of the goods a certain amount, subject to production of a number of clearly defined documents.

LCL

Less than Container Load. Transporting a shipment with other goods in the container is referred to as LCL. Thus multiple LCL shipments with different Bills of Lading and different owners can be loaded in a single container. Any space used in the container is subject to a charge.

Logistics

Logistics is the science of the planning and efficient execution of provisioning. Modern logistics is aimed at the organisation, planning, management and execution of the flow of goods, funds and information, through development and acquisition followed by production and distribution and the necessary staff, to the end user, with the objective of meeting market demands at low costs and use of capital. This domain includes the reversed flow of goods, i.e. reverse logistics. Defined in brief: the right materials, at the right time, in the right place. Key element therein is finding a balance between seemingly incompatible objectives: minimisation of costs/low use of capital and maximisation of customer service. In a rapidly changing world, proper management of logistics is an absolute must for an increasing number of companies

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