This is the first course in the programme and it assumes you know nothing about shipping. Every word is explained the first time it appears. If a sentence uses a term you have not met, that is a mistake on our part, not yours. Take one lesson at a time — each is about fifteen minutes.
How the Supply Chain Works
The whole journey, from a factory making something to a customer holding it. Once you can picture this, everything else in logistics makes sense.
What logistics actually means
You will learn what the word means and what people in this industry are really paid to do.
Logistics is the work of getting goods from where they are made to where they are needed — at the right time, in the right condition, for a sensible cost.
That sounds simple. It is not, because three things are always pulling against each other:
- Speed — how fast the goods arrive
- Cost — how much the journey costs
- Reliability — how certain you are that it will arrive when promised
You can usually have two of them properly. Fast and reliable is expensive. Cheap and reliable is slow. Cheap and fast is unreliable. Almost every decision in this industry is a choice between those three, made on behalf of someone else's business.
What the job actually involves
People imagine logistics is about trucks and warehouses. Most logistics jobs involve very little of either. A typical day is:
- Answering questions about where things are
- Filling in and checking paperwork
- Booking space with transport companies
- Working out what a journey will cost
- Fixing things that have gone wrong
The last one takes the most time. It is also the part that clients pay for, and the part that makes someone good at this job rather than merely present.
A shop in Manchester sells a coffee table. That table was made in Vietnam, loaded into a steel box, carried by ship for six weeks, unloaded at a British port, checked by government officials, driven to a warehouse, stored, then driven to the shop. At least eight different companies touched it. The customer sees a price tag. Logistics is everything behind that price tag.
When you start in this industry, people will use words you do not know and will not stop to explain. Write them down and look them up the same day. Everyone felt lost in their first month. The ones who get good are the ones who kept a list.
- Logistics is moving goods at the right time, condition and cost
- Speed, cost and reliability pull against each other — you rarely get all three
- Most of the job is paperwork, booking and fixing problems
From factory to front door: the full journey
You will learn the complete path goods take, step by step, so you can picture any shipment.
Almost every international shipment follows the same nine steps. Learn this sequence and you will always know roughly where a shipment is and what happens next.
- The goods are made and packedAt a factory. They are put into boxes, then usually stacked onto a pallet — a flat wooden base that lets a forklift lift the whole stack at once.
- A truck collects themFrom the factory to a port or airport. This short leg is called origin haulage.
- Export paperwork is doneThe government of the country the goods are leaving checks what is going out. This is export clearance.
- The goods are loadedInto a steel container for sea, or onto a pallet shaped to fit an aircraft.
- The long journey happensBy ship, plane, train or road. This is the main carriage — the longest part in distance, and often not the longest part in time.
- Arrival at the destination countryThe ship docks or the plane lands. The container is lifted off and placed in a stack at the port.
- Import paperwork and taxesThe receiving government checks the goods and charges any tax due. This is customs clearance, and it is where shipments most often get stuck.
- A truck collects the goodsFrom the port to the final address. This is destination haulage.
- Delivery and signatureSomeone receives the goods and signs to say they arrived. That signature matters more than beginners expect.
The long sea journey is usually the most predictable part. Ships mostly arrive when they say they will. Delays cluster at the beginning and the end — waiting for paperwork, waiting for space, waiting for customs, waiting for a truck. If you want to know where a shipment will go wrong, look at the short legs, not the long one.
When someone asks "where is my shipment?", answer with the step number, not a vague phrase. "It has arrived and is at step 7, waiting for customs" tells them far more than "it's in the country". It also forces you to actually know.
- Nine steps from factory to delivery, and they are almost always the same
- The long sea or air leg is usually the most predictable part
- Delays cluster at the short legs at each end, especially customs
The five players
You will learn the five parties involved in nearly every shipment and what each one does.
Every document you will ever see is these five names in different boxes. Learn them now and paperwork stops being confusing.
| Player | What they do | Also called |
|---|---|---|
| Shipper | Sends the goods. Usually the seller or factory. They pack the cargo and produce the invoice. | Consignor, exporter, supplier |
| Carrier | Physically moves the goods. Owns ships, planes or trucks. | Shipping line, airline, haulier |
| Freight forwarder | Organises the whole journey and the paperwork. Usually owns no vehicles. | Forwarder, agent |
| Customs | The government authority at each border. Decides what may enter or leave and how much tax is owed. | Customs authority, border agency |
| Consignee | Receives the goods. Usually the buyer. | Importer, receiver, buyer |
Why a forwarder exists at all
A buyer in Britain importing from Vietnam would otherwise have to find and manage a Vietnamese truck company, a Vietnamese customs agent, a shipping line, a British customs agent and a British truck company — in two languages, across seven time zones. The forwarder does all of it under one contract and one invoice.
Assuming each company plays only one role. A big retailer might be the consignee and also act as its own forwarder. A forwarder might also be a haulier. Always ask what role is this company playing on this shipment, because that decides who is responsible when something goes wrong.
You cannot negotiate with customs. You can correct information and you can appeal a decision, but you cannot bargain on price or ask for priority. Understanding this early saves a lot of wasted frustration.
- Shipper sends, carrier moves, forwarder organises, customs checks, consignee receives
- One company can play more than one role
- Customs is a government authority, not a supplier to negotiate with
Where money is made and where it leaks away
You will learn the main costs in a shipment and which ones are avoidable.
Beginners think the freight rate is the cost of shipping. It is often less than half of it.
ONE CONTAINER, ASIA TO UK - roughly where the cost sits
Sea freight itself about 45%
Port and terminal handling about 12%
Trucking at both ends about 20%
Customs work and paperwork about 5%
Duty and taxes about 18%
---------
100%
AVOIDABLE COSTS THAT GET ADDED ON TOP
- Storage, because paperwork was late
- Demurrage, because the box was collected late
- Re-delivery, because nobody was there to unload
- Examination fees, because the description was vague
- Extra duty, because the wrong product code was used
None of these appear on any quote.
All of them are caused by someone not doing something on time.
That second list is the important one. The costs on the first list are the price of doing business. The costs on the second list are mistakes, and preventing them is most of what a good logistics person actually contributes.
An importer's supplier sends the invoice four days late. Without it, the paperwork cannot be filed. By the time the container is cleared and collected, it has sat at the port for eleven days. The storage and waiting charges cost more than the entire ocean journey did. Nothing broke, nothing was damaged, nobody was dishonest. A document was late.
Chase paperwork early and hard. It feels like nagging. It is the single highest-value habit in this industry, because almost every avoidable cost traces back to a document that arrived late.
- The freight rate is often less than half the total cost
- Avoidable costs come from late paperwork and missed collections
- Chasing documents early prevents most of them
What a bad day looks like
You will learn what actually goes wrong, so none of it surprises you when it does.
This is an honest picture of the job. Nothing here is unusual; all of it happens regularly.
- A shipment is rolled. The ship sailed without your container because the vessel was full. Your cargo waits a week for the next one.
- Customs holds the goods. They want more information, or they have selected the container for physical inspection. You cannot hurry this.
- The truck cannot deliver. The site is closed, or has no forklift, or the driver has run out of legal driving hours.
- The paperwork is wrong. The weight on one document does not match another, and everything stops until it is fixed.
- Goods arrive damaged. Someone must work out who is responsible and whether a claim will succeed.
- The customer is angry. Often about something entirely outside your control.
What separates good from bad in these moments
- Find out what is actually trueBefore telling anyone anything. Half of all reported problems turn out to be different from the first description.
- Tell the customer earlyEven when you do not yet have a solution. Customers forgive delays. They do not forgive finding out late.
- Offer options, not apologies"We can do A, B or C" is useful. "I'm so sorry" repeated four times is not.
- Write down what happenedWhile it is fresh. You will need it if there is a claim, and you will learn from it if there is not.
You will not prevent all of this, and nobody expects you to. Ships get full, ports get congested, customs select containers at random. What you are judged on is whether you noticed early, communicated honestly, and did something sensible about it.
When something goes wrong, the instinct is to wait until you have a solution before contacting the customer. Resist it. A short message saying "this has happened, I'm working on it, I'll update you by 4pm" buys you hours of goodwill and costs thirty seconds.
- Rolled shipments, customs holds, failed deliveries and damage are all routine
- Establish the facts before communicating
- Tell customers early, offer options, and record what happened
Module 1 review
Which part of an international shipment is usually the most predictable?
Ships and aircraft mostly run to schedule. Delays cluster at the short legs either end — paperwork, customs, and arranging trucks.
A company organises your whole journey and the paperwork but owns no ships or trucks. What are they?
Forwarders organise; carriers own the vehicles. Owning nothing is normal and does not make a forwarder any less responsible.
Something has gone wrong but you do not yet have a solution. What do you do?
Customers forgive delays but not finding out late. A short early message costs seconds and buys hours of goodwill.
Key Words and Job Roles
The language of the industry, and who does what in a shipping office. This module is what stops you feeling lost in your first week.
Fifty words you must know
You will learn the vocabulary used every day, grouped so it is easy to remember.
The goods themselves
| Cargo / freight | The goods being transported |
| Consignment / shipment | One lot of goods moving together |
| Pallet | Flat wooden base cargo is stacked on so a forklift can lift it |
| Carton | A cardboard box |
| Gross weight | Goods plus all packaging |
| Net weight | The goods alone |
| Cubic metre (m³) | How space is measured |
The journey
| Origin | Where the journey starts |
| Destination | Where it ends |
| Transit time | How long the journey takes |
| ETD / ETA | Estimated time of departure / arrival |
| Cut-off | The deadline to get cargo or paperwork in before a ship or plane leaves |
| Transhipment | Moving cargo from one ship to another mid-journey |
| Rolled | Cargo bumped to a later sailing because the ship was full |
| Leg | One section of the journey |
Containers and loads
| FCL | Full container load — you have the whole container |
| LCL | Less than container load — you share with others |
| 20ft / 40ft | The two common container sizes |
| High cube | A taller 40ft container |
| Reefer | A refrigerated container |
| TEU | Twenty-foot equivalent unit — how ship capacity is counted |
Paperwork
| Commercial invoice | The seller's bill; customs uses it to value the goods |
| Packing list | What is in each box, with weights and sizes. No prices |
| Bill of Lading (B/L) | The sea transport document. Controls who can collect the cargo |
| Air Waybill (AWB) | The air transport document |
| CMR | The international road transport document |
| POD | Proof of delivery — the signature confirming arrival |
| HS code | The product number that decides the tax rate |
Money
| Freight rate | The price of the transport itself |
| Surcharge | An extra charge added to the rate, such as fuel |
| THC | Terminal handling charge — the port's fee for moving your container |
| Duty | Import tax on goods. A permanent cost |
| Demurrage | Charge for leaving a container at the port too long |
| Detention | Charge for keeping a container too long after collecting it |
| Incoterm | Three letters saying who pays for what and who carries the risk |
Do not try to memorise this page. Come back to it. After three weeks in a real job, about forty of these will be words you use without thinking, and the remaining ten will be the ones worth revisiting.
- The vocabulary groups into goods, journey, containers, paperwork and money
- FCL means a whole container; LCL means sharing one
- Demurrage is at the port; detention is after you take the box away
Who does what in a shipping office
You will learn the common job roles, what each one does, and which suits different people.
| Role | What they do all day | Suits someone who |
|---|---|---|
| Operations / ops clerk | Books shipments, tracks them, chases paperwork, handles problems | Likes variety and does not mind interruptions |
| Customs clerk | Prepares and files declarations, classifies goods, calculates duty | Is precise and enjoys detail and rules |
| Pricing / rates | Builds quotes, negotiates carrier rates, checks margins | Is comfortable with numbers |
| Sales / business development | Finds clients, wins accounts, manages relationships | Likes people and can handle rejection |
| Warehouse | Receives, stores, picks, packs and dispatches goods | Prefers physical work and clear routines |
| Transport planner | Allocates vehicles and drivers, plans routes and schedules | Enjoys puzzles under time pressure |
| Account manager | Looks after existing clients, reports, resolves escalations | Is organised and calm with people |
Where most people start
Operations is the usual entry point, and it is the best one. You touch every part of the business, meet every other department, and learn how the whole thing fits together. Almost everyone senior in freight started there.
Two roles are consistently hard for companies to fill: customs and pricing. Both require judgement that takes time to build. If you want the fastest route to being genuinely valuable, learn one of those properly — they are covered in Courses FF·02 and FF·03 of this programme.
- Seven common roles, from operations through to account management
- Operations is the usual and best entry point
- Customs and pricing skills are the hardest for employers to find
Reading a job advert and knowing if you can do it
You will learn to decode logistics job adverts and judge whether to apply.
Logistics adverts are written in shorthand. Here is what the common phrases actually mean.
| The advert says | It means | Do you need it on day one? |
|---|---|---|
| "Experience with Incoterms" | You can say who pays for what under common terms | Helpful, learnable in a week |
| "Customs knowledge" | You understand codes, duty and declarations | Valuable — often taught on the job |
| "Freight forwarding background" | You have worked in an organising role, not just a warehouse | Often negotiable for junior roles |
| "TMS experience" | You have used transport management software | Rarely essential; systems differ anyway |
| "Strong communicator" | You can write clear emails and handle an unhappy phone call | Genuinely essential |
| "Works well under pressure" | Several things will go wrong at once | Genuinely essential |
| "Attention to detail" | Small paperwork errors cost real money | Genuinely essential |
What employers actually screen for in junior roles
For entry-level positions, most employers care far more about reliability, clear communication and willingness to learn than about industry knowledge. The technical content can be taught. Turning up, writing a clear email and admitting a mistake early cannot.
If you complete courses in this programme, say so specifically. "I've completed training covering Incoterms, shipping documents and customs classification, and I can build a landed cost calculation" is far stronger than "I'm keen to learn about logistics". Bring the work tasks you produced.
Not applying because you do not meet every listed requirement. Logistics adverts routinely list a wish list rather than a minimum. For junior roles, meeting most of it and showing you have studied the subject is usually enough.
- Most technical requirements in adverts are learnable on the job
- Communication, reliability and detail are the genuine essentials
- Name the specific things you have studied, and bring evidence
How a shipping office runs, hour by hour
You will learn the rhythm of a working day so your first one is not a surprise.
08:00 Check overnight emails from origin offices in Asia.
They have been working while you slept - anything urgent
will be at the top of the inbox.
08:30 Morning check of live shipments. Anything arriving today?
Anything that should have moved yesterday and did not?
Build the day's problem list before the phone starts.
09:00 Phones open. Customer queries begin. Bookings come in.
10:00 Chase documents for shipments clearing this week.
This is the most valuable hour of your day and the
easiest one to let slide.
11:00 File customs entries. Handle any queries from the broker.
12:30 Lunch, usually interrupted.
13:30 Quoting. New enquiries need rates, which need carrier
replies, which take time - start early enough to send today.
15:00 European offices start closing. Anything needing a reply
from the continent must go now.
16:00 Confirm tomorrow's collections and deliveries.
Check nothing is at risk of missing a cut-off.
17:00 Update customers proactively. One line each on anything
that has moved or not moved.
17:30 Write tomorrow's problem list before you leave.
Asia comes online overnight - leave them clear instructions.
The two habits that matter
- The morning list. Fifteen minutes spent identifying what is at risk today prevents most afternoon emergencies.
- The end-of-day update. Telling customers what happened, before they ask, is the single behaviour that separates forwarders clients stay with from ones they replace.
Time zones shape this job more than people expect. Asian offices finish as European ones start; American offices start as European ones finish. If you need something from another region, the window may be two hours wide. Missing it costs a full day, so know when your counterparts are actually at their desks.
- The day runs on a predictable rhythm built around time zones and cut-offs
- A morning risk list prevents most afternoon emergencies
- Proactive end-of-day updates are what keep clients
Module 2 review
What is the difference between demurrage and detention?
Demurrage is terminal time before you take the box away. Detention is the time it spends with you afterwards. Both escalate daily.
Your cargo was "rolled". What happened?
Rolling is common in busy periods. The cargo is fine; it simply waits for the next available sailing, usually a week later.
Which two skills are hardest for freight companies to hire?
Both require judgement built over time, which is why they are consistently short and why learning one accelerates a career.
Transport Modes
The four ways goods travel, what each is good at, and how to choose between them.
Road freight
You will learn the common vehicle types and what each can legally carry.
| Vehicle | Typical capacity | Used for |
|---|---|---|
| Van | 1–2 pallets, up to about 1 tonne | Small urgent deliveries, parcels |
| Luton / box van | 4–6 pallets | Local distribution, furniture |
| 7.5 tonne rigid | 8–10 pallets | Town deliveries, tight access |
| 18 tonne rigid | 12–16 pallets | Regional distribution |
| Articulated trailer | 26–33 pallets, up to about 24–26 tonnes payload | Long distance, full loads, containers |
Full load or shared
- Full truck load (FTL) — you pay for the whole vehicle. It goes direct. Fastest and simplest.
- Groupage / part load (LTL) — you share with other customers. Cheaper, slower, more handling, more chance of damage.
Access matters more than beginners expect
A 44-tonne articulated lorry is about 16.5 metres long. It cannot turn into a narrow residential street, reverse up a steep drive, or unload without space. Before booking a delivery, you must know whether the site can physically take the vehicle and whether anyone there can unload it.
Booking a full trailer to an address with no forklift and no loading bay. The driver cannot unload by hand — that is not their job and often not physically possible. The vehicle leaves, a redelivery is charged, and the customer is angry about a problem nobody asked about in advance.
Ask three questions before every road delivery: can a large vehicle reach the address, is there equipment to unload, and are there restricted delivery hours? Two minutes of questions prevents the most common and most avoidable failure in road freight.
- Vehicles range from vans to articulated trailers carrying about 26 tonnes
- Full load goes direct; groupage is cheaper but slower with more handling
- Always check access, unloading equipment and delivery hours first
Sea freight: how a container crosses an ocean
You will learn what actually happens to a container between factory and destination port.
Sea freight carries the overwhelming majority of world trade by volume. It is slow, cheap and remarkably reliable.
- An empty container is deliveredTo the factory, on a truck. The factory loads it and fits a numbered seal.
- The container goes to the portWhere it joins a stack of thousands of others, waiting for its ship.
- Cranes load the shipA large container ship carries many thousands of containers, stacked above and below deck.
- The voyageAsia to Europe typically takes around 30 to 40 days. Ships travel at a steady speed — going faster burns disproportionately more fuel, so they rarely do.
- Possible transhipmentOn some routes the container is moved to a second ship at a hub port. This adds time and a little risk.
- Arrival and dischargeCranes lift it off into another stack.
- Customs, then collectionOnce cleared, a truck collects it and delivers to the final address.
The container is sealed at the factory and normally not opened again until it reaches its destination — unless customs decide to inspect it. Nobody along the way checks whether what is inside matches the paperwork. That is why the paperwork must be right, and why the seal number appearing on documents matters.
The sailing schedule tells you when the ship arrives, not when the customer gets their goods. Add time for discharge, customs and trucking — usually several days at least. Quote the delivery date, not the arrival date, or you will be wrong every time.
- Sea is slow, cheap and reliable, carrying most world trade
- Containers are sealed at the factory and rarely opened in transit
- Ship arrival is not delivery — always add discharge, customs and trucking
Air freight: speed, cost and limits
You will learn how air freight works and why it is never as fast as the flight time suggests.
Air freight is the fastest option and by far the most expensive per kilo — often several times the cost of sea.
Where air cargo travels
Most air cargo does not fly on cargo aircraft. It travels in the hold of ordinary passenger flights, underneath the passengers' luggage. This is called belly capacity, and it means air freight space depends on where people are flying.
Why the flight is the short part
A flight might be eleven hours. Door-to-door is usually four to six days, because of:
- Delivery to the forwarder's warehouse near the airport
- Building the cargo onto aircraft pallets
- Security screening, which every piece must pass
- An acceptance deadline several hours before departure
- Breaking the cargo down at the other end
- Customs, then trucking
What cannot easily fly
- Very heavy or oversized items
- Many dangerous goods, or they need special handling — aerosols, perfume, batteries
- Anything where the freight cost would exceed the value of the goods
Telling a customer "it's going by air, so it'll be there Wednesday" based on flight time. Always quote door-to-door, and always as a range. This single habit prevents more disappointed customers than anything else in air freight.
- Air is fastest and most expensive; most cargo flies in passenger aircraft holds
- Door-to-door is typically four to six days, not the flight time
- Heavy, oversized and many dangerous goods are difficult or impossible to fly
Rail and intermodal
You will learn where rail fits and what "intermodal" means.
Intermodal means using more than one mode for a single journey, with the goods staying in the same container throughout. Truck to train to truck — the box moves, the contents are never touched.
What rail is good at
- Long overland distances where road would need many drivers and many hours
- Heavy, bulky cargo — minerals, steel, timber, vehicles
- Lower emissions per tonne than road
- Predictable scheduled services on established corridors
What rail is poor at
- It cannot reach most addresses — a truck is always needed at each end
- Less frequent departures than road
- Route availability depends on infrastructure and, on international corridors, on politics
On some intercontinental corridors, rail sits between sea and air on both cost and transit time, which can make it a useful middle option. But availability, capacity and reliability on these routes vary considerably with geopolitical conditions. Always check current conditions rather than assuming a service is running as it was last year.
- Intermodal means one container, several modes, contents untouched
- Rail suits long overland distances and heavy bulk cargo
- Rail always needs trucks at each end and route availability can change
Courier and express
You will learn how the parcel business differs from freight, and when to use it.
Courier and express companies run their own integrated networks — their own vehicles, aircraft, sorting hubs and customs processes. That integration is why they can offer door-to-door delivery in a few days with a tracking number that actually works.
| Courier / express | Freight | |
|---|---|---|
| Typical size | Parcels up to around 30 kg | Pallets and containers |
| Booking | Online, minutes | By email or phone, with a quote |
| Customs | Usually handled automatically | Arranged separately |
| Cost per kilo | High | Much lower at volume |
| Best for | Samples, documents, urgent small items, e-commerce orders | Anything from a pallet upwards |
Where the crossover sits
Below roughly 100 kg, express is often cheaper and always simpler. Above roughly 300 kg, freight is usually considerably cheaper. In between, it genuinely depends — check both.
Many small businesses ship everything by courier because it is easy, long after freight became cheaper for them. If a client is sending several hundred kilos a month by parcel, running a freight comparison for them is usually a pleasant conversation.
- Couriers run integrated networks including their own customs processes
- Express suits small, urgent consignments; freight wins on volume
- Around 100 to 300 kg is where the comparison genuinely matters
Choosing a mode: a simple decision table
You will learn a practical method for recommending a transport mode.
Ask four questions in this order. They will get you to the right answer most of the time.
- How much is it worth per kilo?Divide the value by the weight. Very high value per kilo makes air reasonable, because freight is a small share of the total. Very low value per kilo makes air absurd.
- What happens if it is late?Nothing? Choose cheap. A production line stops or a season is missed? Choose fast.
- How big and heavy is it?Some cargo cannot fly. Some cannot go on a normal trailer.
- Where is it going?Within a region, road usually wins outright. Between continents, it is sea or air.
| Situation | Usual answer | Why |
|---|---|---|
| Furniture from Asia, not urgent | Sea FCL | Heavy, bulky, low value per kilo |
| Two pallets of stock, monthly | Sea LCL | Too small for a container, predictable timing |
| Phone accessories, new launch | Air | High value per kilo, timing critical |
| A machine part, factory stopped | Express air | Delay costs far more than freight |
| Goods within the same region | Road | Door to door, no port handling |
| A 4 kg sample to a customer | Courier | Small, simple, customs handled automatically |
When a customer says "as cheap as possible", ask what date they need it. When they say "as fast as possible", ask what their budget is. People say one and mean the other far more often than you would expect, and the question saves you quoting the wrong thing entirely.
- Value per kilo is the fastest single indicator of the right mode
- Always ask what lateness actually costs the customer
- Check physical limits and distance before finalising a recommendation
Module 3 review
An air flight takes 11 hours. What door-to-door transit should you quote?
Screening, build-up, acceptance deadlines, breakdown, customs and trucking all sit either side of the flight, which is often the shortest part.
Before booking a full trailer delivery, what must you check?
A 16.5 metre vehicle cannot reach every address, and drivers cannot hand-unload pallets. Failed deliveries are the most avoidable cost in road freight.
A client ships 400 kg a month by parcel courier. What is worth doing?
Many small businesses stay on courier long after freight became cheaper, simply because nobody ever ran the comparison for them.
Warehouses and Stock Basics
Where goods wait between journeys, how they are handled, and why stock records go wrong.
What happens inside a warehouse
You will learn what a warehouse actually does beyond storing things.
A warehouse is not a storage cupboard. It is a sorting machine. Goods arrive in large quantities of few products, and leave in small quantities of many products. Everything inside exists to make that conversion work.
The main areas
- Goods-in / receiving — where deliveries are unloaded and checked
- Storage — racking where stock sits until needed
- Picking area — fast-moving items kept accessible
- Packing — orders assembled and boxed
- Dispatch / goods-out — completed orders staged for collection
- Returns — goods coming back, which need checking and often repackaging
Equipment you will hear named
- Pallet truck — manual, moves pallets along the floor
- Forklift — lifts pallets, including into high racking
- Racking — the steel shelving; pallets are stored in defined locations
- Scanner — reads barcodes so the system knows what moved where
- Loading bay / dock — raised platform level with a lorry bed
The absence of a loading bay changes everything about a delivery. Without one, goods must be lowered by a tail lift — a platform on the back of the lorry — which takes longer, needs a specific vehicle, and cannot handle very heavy pallets. Always ask whether a delivery address has a bay or needs a tail lift.
- A warehouse converts large inbound quantities into small outbound orders
- Six areas: goods-in, storage, picking, packing, dispatch, returns
- No loading bay means a tail-lift vehicle, which must be booked specifically
Goods in, put-away, pick, pack, dispatch
You will learn the five core warehouse processes and where errors creep in.
- Goods inThe delivery arrives. Someone counts it, checks it against the paperwork, and records any damage or shortage before signing. This is the most important moment in the whole warehouse, because once you sign clean, proving a problem later is very hard.
- Put-awayStock is moved to a storage location and the system records where. If the location is recorded wrongly, the stock effectively no longer exists — it is in the building but nobody can find it.
- PickAn order comes in; someone collects the items from their locations. Picking the wrong item or the wrong quantity is the most common warehouse error.
- PackItems are boxed, labelled and documented. Packing quality decides whether the goods survive the journey.
- DispatchThe order is staged, loaded and recorded as gone, with proof of what left and when.
Signing for a delivery without counting it. It happens constantly because the driver is waiting and it feels rude to delay them. But the signature is a legal statement that the goods arrived as described. A driver waiting three minutes is a minor inconvenience; a failed claim is not.
A warehouse receives 30 cartons and signs clean without counting. Three days later a stock count finds 28. The carrier points to the clean signature. There is no note, no photograph, and no evidence of what was actually delivered. The claim fails and the importer absorbs the loss.
Teach anyone receiving goods to write what they see, specifically. "3 cartons crushed" is a fact that survives. "Damaged" is vague. "Received subject to inspection" on its own is often treated as meaningless boilerplate.
- Five processes: goods in, put-away, pick, pack, dispatch
- Goods-in is where claims are won or lost — count before signing
- A wrongly recorded storage location makes stock effectively invisible
Stock counts and why they go wrong
You will learn why recorded stock and real stock differ, and how businesses keep them aligned.
Every warehouse has a number in the system and a number on the shelf, and they are never quite the same. The gap is called stock discrepancy or shrinkage.
Where the gap comes from
- Picking errors — the wrong item taken, so two products are now both wrong
- Receiving errors — booked in as 100 when 96 arrived
- Damage not recorded — a broken item binned without a system entry
- Misplaced stock — put away in the wrong location, so it appears missing
- Theft — real, but a smaller cause than most people assume
- Returns not processed — goods physically back but never booked in
Two ways to count
- Full stocktake — count everything, usually once or twice a year. Accurate but requires stopping operations, which is expensive.
- Cycle counting — count a small section every day or week, so everything gets counted over a period. No shutdown, and problems are found within days instead of months.
Cycle counting is better than an annual stocktake for one reason above all: it finds errors while you can still work out what caused them. A discrepancy found eleven months later is a mystery. One found three days later is usually traceable to a specific delivery or order.
Stock accuracy matters more than it sounds. If the system says you have 40 units and you actually have 12, you will sell 40. Twenty-eight customers will be disappointed, and you will find out only when someone goes to pick the order.
- Recorded and actual stock always differ; the gap is called discrepancy
- Most of the gap comes from process errors, not theft
- Cycle counting finds problems while their cause is still traceable
Cross-docking and why it saves money
You will learn what cross-docking is and when it works.
Cross-docking means goods arrive at a facility and go straight back out on another vehicle, without being put into storage. They cross from the inbound dock to the outbound dock — hence the name.
Why it saves money
Storage costs money: rent, racking, the labour of putting away and picking again, and the capital tied up in stock sitting still. Cross-docking removes all of it. The goods spend hours in the building rather than weeks.
What it requires
- Accurate timing — inbound and outbound vehicles must line up
- Known demand — you must already know where the goods are going
- Reliable suppliers — a late inbound delivery means an outbound vehicle leaves empty or waits
- Good information — you need to know exactly what is on the inbound vehicle before it arrives
A supermarket group receives produce from several growers each morning at a regional hub. It is not put away. It is sorted by store, loaded onto store delivery vehicles within a few hours, and gone by lunchtime. Fresh goods reach shelves faster and no storage cost is incurred — but the whole thing collapses if one grower is two hours late.
Attempting cross-docking with unreliable suppliers. It removes all the buffer from the system. If inbound timing cannot be trusted, storage is not waste — it is the thing absorbing the variability, and removing it simply moves the problem to your customers.
- Cross-docking moves goods straight from inbound to outbound without storage
- It removes storage cost, handling and capital tied up in stock
- It needs reliable timing — storage is what normally absorbs variability
Reading a stock report
You will learn to read a stock report and spot what needs attention.
STOCK REPORT - illustrative 18 Sep 2026
SKU Description Free Alloc On PO Loc Note
-------------------------------------------------------------------
HW-1042 Ceramic mug, white 840 120 1,200 A12-03
HW-1043 Ceramic mug, blue 22 60 0 A12-04 <<< short
HW-2210 Glass tumbler, 300ml 310 45 600 B04-11
HW-3301 Serving board, oak 0 0 0 C09-02 <<< dead
HW-3302 Serving board, walnut 118 12 240 C09-03
SKU a unique code for one product. "Stock keeping unit."
Free available to sell right now
Alloc allocated - promised to orders not yet dispatched
On PO on a purchase order, ordered but not yet arrived
Loc the storage location in the warehouse
WHAT THIS REPORT IS TELLING YOU
HW-1043 22 free but 60 already promised. You are 38 SHORT and
nothing is on order. Someone must act today.
HW-3301 Nothing free, nothing promised, nothing coming.
Either discontinued, or forgotten. Worth asking.
HW-1042 Healthy - good cover and replenishment on the way.
The one calculation worth knowing
Free stock minus allocated stock tells you whether you can meet what you have already promised. If it is negative, someone is going to be disappointed, and the sooner you spot it the more options you have.
Sort any stock report by free-minus-allocated, smallest first. The problems rise to the top instantly. Most people read stock reports alphabetically, which buries the one line that actually needed attention.
- SKU is the unique product code; free, allocated and on-order are different things
- Free minus allocated shows whether promises can be met
- Sort by that figure to surface problems immediately
Module 4 review
A product shows 22 free and 60 allocated. What does that mean?
Allocated stock is promised to orders not yet dispatched. Free minus allocated is negative, so somebody will be disappointed unless action is taken now.
Why is cycle counting usually better than an annual stocktake?
A discrepancy found three days later can be traced to a specific delivery or order. One found eleven months later is simply a mystery.
A delivery arrives and the driver is waiting. What should the receiver do?
The signature is a legal statement that goods arrived as described. Three minutes of delay is minor; a failed claim is not.
Weights, Sizes and Pallets
Measuring cargo correctly. Get this wrong and every quote, every booking and every document that follows is wrong too.
Gross, net and tare weight
You will learn the three weights and calculate them yourself.
- Net weight — the goods alone, with nothing else
- Tare weight — the packaging alone: cartons, pallet, wrapping
- Gross weight — net plus tare. This is what the carrier handles and what appears on transport documents
Gross = Net + Tare
ONE PALLET OF PACKAGED GLASSWARE 40 cartons, each holding 9.2 kg of product Each empty carton weighs 0.4 kg The wooden pallet weighs 22.0 kg Shrink wrap 1.5 kg NET 40 x 9.2 = 368.0 kg TARE (40 x 0.4) + 22.0 + 1.5 = 39.5 kg GROSS 368.0 + 39.5 = 407.5 kg FOR 18 IDENTICAL PALLETS Net 18 x 368.0 = 6,624 kg Tare 18 x 39.5 = 711 kg Gross 18 x 407.5 = 7,335 kg The carrier books 7,335 kg. Not 6,624 kg. The difference - 711 kg - is real weight on a real vehicle.
Giving net weight when gross is asked for. It understates the shipment by hundreds of kilos, makes documents disagree with each other, and on sea freight it makes the legally required weight declaration wrong. If a supplier sends one weight figure with no label, always ask which one it is.
Wooden pallets are heavier than people expect — typically 20 to 25 kg each. On twenty pallets that is around half a tonne of pallet before any goods. On a full load, forgetting it can push a vehicle over its legal weight limit.
- Net is goods, tare is packaging, gross is both together
- Carriers and transport documents always work in gross
- Never accept an unlabelled weight — ask which one it is
Pallets: the sizes that matter
You will learn the standard pallet sizes and why the wooden pallet itself can stop a shipment.
| Type | Size | Common in |
|---|---|---|
| Euro pallet | 1200 × 800 mm | Europe — the most common by far |
| Standard / industrial | 1200 × 1000 mm | Widely used internationally |
| North American | 1219 × 1016 mm (48 × 40 in) | North America |
| Half pallet | 800 × 600 mm | Retail displays, small consignments |
Height matters as much as footprint
A pallet's footprint is standard; its loaded height is not. Typical loaded heights run from about 1.2 to 2.2 metres. Height decides how many fit in a container, whether the load can be double stacked, and whether it fits under the roof of a particular vehicle.
The wood itself is regulated
Solid wood packaging used in international trade generally must be heat treated to kill pests, and marked with a stamp showing it complies with the international standard known as ISPM 15. Untreated or unmarked wood can be refused entry — and note that this is about the pallet, not the goods. A perfectly compliant shipment can be stopped because of what it is sitting on.
Plastic pallets and pressed-fibre pallets are not wood, so the treatment requirement does not apply to them. For clients shipping regularly to sensitive destinations, that can be a simpler answer than managing treatment certificates.
When taking pallet dimensions from a customer, always ask for the loaded height, including the pallet itself, and whether anything overhangs the edges. Overhang is charged as if the pallet were bigger, and customers almost never mention it.
- Euro pallet is 1200 × 800 mm; standard is 1200 × 1000 mm
- Loaded height decides container fit and stackability
- Wooden pallets usually need heat treatment and an ISPM 15 mark
Container sizes and what fits inside
You will learn the standard containers and the surprising fact about weight.
| Container | Internal length | Usable volume | Typical max payload | Euro pallets |
|---|---|---|---|---|
| 20ft standard | ~5.9 m | ~33 m³ | ~28,000 kg | 11 |
| 40ft standard | ~12.0 m | ~67 m³ | ~26,500 kg | 23–24 |
| 40ft high cube | ~12.0 m | ~76 m³ | ~26,500 kg | 23–24 |
The fact that surprises everyone
A 40ft container holds about twice the volume of a 20ft, but often carries slightly less weight. The bigger container weighs more empty, and road weight limits cap the total for the whole vehicle.
So the rule is:
- Heavy, dense cargo — tiles, stone, liquids, machinery — goes in a 20ft. It will hit the weight limit long before filling the space.
- Light, bulky cargo — cushions, packaging, empty containers, clothing — goes in a 40ft high cube. It will fill the space long before troubling the weight limit.
A client wants to ship 24 tonnes of floor tiles and asks for a 40ft "because it's bigger". The tiles would occupy less than a third of the space and the loaded vehicle would likely exceed road weight limits at one or both ends. A 20ft is the correct answer — and it is cheaper.
The figures above are typical, not guaranteed. Exact internal dimensions and maximum payload vary by manufacturer, container age and the road weight limits of the countries involved. The payload stencilled on the container's own door is the authority for that specific box.
- A 40ft holds double the volume but similar or less weight than a 20ft
- Dense cargo goes in 20ft; light bulky cargo in 40ft high cube
- The container door plate is the authority for its actual payload
Measuring cargo correctly, first time
You will learn exactly how to measure a shipment so your figures match the carrier's.
- Measure as packed, ready to shipNot the product, not the carton — the finished pallet with everything on it.
- Include the pallet in the heightA pallet is about 15 cm tall. Measure from the floor to the highest point.
- Include any overhangIf cartons stick out past the pallet edge, measure to the widest point. The carrier will.
- Round up to the nearest centimetreCarriers do. Optimistic rounding just delays the cost.
- Record weight as grossGoods plus all packaging plus the pallet.
- Note stackabilityCan another pallet sit on top? A flat, rigid top surface usually means yes. Domed lids, soft goods and fragile items mean no.
Calculating volume
Volume in m³ = length × width × height, all in metres
A pallet 1.2 m × 1.0 m × 1.6 m = 1.92 m³. Ten such pallets = 19.2 m³.
CARGO DETAILS - the format that avoids every follow-up question
Number of pallets 8
Pallet type Euro (1200 x 800 mm)
Dimensions each 120 x 100 x 155 cm (L x W x H, as packed,
including pallet, including overhang)
Gross weight each 385 kg
Total gross weight 3,080 kg
Total volume 14.88 m3
Stackable NO - domed cartons on top layer
Pallets ISPM 15 Yes, heat treated and marked
Dangerous goods No
Special handling None
Send this once and you will not be asked anything else.
Measuring the product rather than the shipment. A customer says "it's 40 kg" meaning the machine. Packed into a crate on a pallet, it is 78 kg and occupies 1.4 m³. Both figures are true; only one of them is what gets shipped.
Saying "not stackable" when cargo could be stacked can double a road freight cost. Saying "stackable" when it cannot be causes crushed goods and a damage claim. It is worth walking over and looking at the top surface rather than guessing.
- Measure the finished pallet as packed, including pallet and overhang
- Volume in m³ is length × width × height in metres
- Record gross weight and stackability every time
Module 5 review
A pallet holds 30 cartons of 11 kg of product. Cartons weigh 0.5 kg empty, the pallet 20 kg, wrap 1 kg. Gross weight?
Net is 330, tare is 15 + 20 + 1 = 36, so gross is 366 kg. Gross is what the carrier books and what goes on the documents.
A client needs to ship 24 tonnes of stone. Which container?
Dense cargo is a weight problem, not a volume problem. A 20ft typically has the higher payload, and 24 tonnes in a 40ft risks breaching road weight limits.
When measuring a pallet for a quote, what height do you record?
Measure the shipment as packed and ready to move. The carrier measures the same way, and their figure is the one on the invoice.
Course Assessment
Twelve questions covering all five modules. You need 10 of 12 correct to meet the 80% pass mark. You can retake it as often as you like.
Complete all 24 lessons to unlock the final assessment.