What does the term 'in transit' refer to in logistics?

The term 'in transit' specifically refers to goods that have left the supplier's warehouse but have not yet been delivered to the final destination, which could be a buyer or distribution point. This status indicates that the items are actively moving through the supply chain. Understanding this concept is crucial in logistics, as it helps manage expectations regarding delivery times and inventory levels. Tracking goods that are in transit allows companies to coordinate their supply chains effectively, mitigating risks related to delays and ensuring that customers are kept informed about the status of their orders.

This clarity on what constitutes 'in transit' underlines the movement aspect of logistics—distinguishing it from simply storing goods, which refers to items that are kept in a warehouse; delivered goods, which have reached their destination; and goods currently being manufactured, which are still in the production phase and not en route.