When it comes to sending parcels or managing deliveries for your business, the courier industry can feel like a world of its own—full of acronyms, buzzwords, and jargon.

But understanding a few key courier terms can go a long way in helping you make faster, smarter, and more cost-effective delivery decisions. Whether you’re sending a one-off package or coordinating regular shipments, getting to grips with the language used by courier companies can save you time, money, and stress.

So here are 12 essential courier terms that you should know—even if you’re not in logistics.

Same Day Delivery

Same day delivery is exactly what it sounds like: your parcel is picked up and delivered on the same day. But it’s more than just speed. It often involves dedicated vehicles, custom routes, and immediate dispatch—making it ideal for urgent or high-value deliveries.

  • Used for legal documents, medical supplies, or last-minute items.
  • Offers greater control over collection and delivery times.
  • Often includes proof of delivery and GPS tracking.
  • Typically more expensive than standard services due to urgency.

Proof of Delivery (POD)

Proof of Delivery is confirmation that the package has reached its intended recipient. This can come in several forms, such as a physical signature, a name and timestamp, or even a photograph of the delivered parcel at the location.

  • Essential for B2B services to verify transactions.
  • Can be digital, emailed, or accessible via a tracking system.
  • Offers accountability for both the sender and courier.
  • Helps resolve disputes about missed or lost deliveries.

Dedicated Vehicle

A dedicated vehicle is assigned exclusively to your delivery, rather than carrying multiple packages for different customers. This ensures your parcel goes directly from point A to point B, with no detours or delays.

  • Reduces handling and risk of damage.
  • Ideal for fragile or high-priority items.
  • Enables precise timing for pickup and delivery.
  • More secure than shared delivery services.

Multi-Drop Delivery

Multi-drop delivery involves a courier making several deliveries on a single route. This service is common for retailers, e-commerce businesses, or companies distributing goods to multiple branches or clients.

  • Cost-effective for bulk deliveries.
  • Increases efficiency in local distribution.
  • Requires careful route planning and scheduling.
  • May result in less control over exact delivery times.

Timed Delivery

A timed delivery means your parcel is guaranteed to arrive within a specific window—say, between 9am and 12pm. It’s useful for businesses that need to coordinate deliveries with staff availability or appointment slots.

  • Offers predictability and convenience.
  • Helps avoid missed deliveries or reattempts.
  • May include surcharges for early morning or evening slots.
  • Often combined with same day or next day services.

First Attempt Delivery Rate

This refers to the percentage of parcels successfully delivered on the first try. It’s a critical performance metric in courier services, especially for businesses that rely on timely customer satisfaction.

  • High rates reflect courier reliability.
  • Reduces operational costs from repeat attempts.
  • Important for time-sensitive or perishable goods.
  • Affects customer reviews and repeat business.

Hub and Spoke Model

Many large courier companies operate using a hub and spoke system. Parcels are collected (spokes) and then sent to a central hub for sorting before heading out for final delivery.

  • Efficient for nationwide and international logistics.
  • Can introduce delays compared to direct delivery.
  • More prone to mishandling due to multiple transfer points.
  • Often used by national carriers rather than local couriers.

Third Party Logistics (3PL)

Third Party Logistics providers handle warehousing, transportation, and delivery for businesses. Courier services may partner with 3PLs to manage stock, pack parcels, and coordinate fulfilment on behalf of retailers.

  • Useful for eCommerce businesses without in-house logistics.
  • Enables scale without investing in infrastructure.
  • Often includes inventory management and returns handling.
  • Not to be confused with a simple courier or carrier.

Consignment Number

This is a unique identifier assigned to a parcel or group of parcels. It allows you to track your delivery, confirm its status, and access delivery reports or POD details.

  • Essential for tracking parcels in real time.
  • May be called a waybill or tracking number.
  • Can be shared with recipients for transparency.
  • Helpful in managing large volumes of shipments.

Service Level Agreement (SLA)

An SLA defines the expected standard of service between a courier company and a customer. It can cover delivery times, POD, handling, claims, and communication protocols.

  • Helps set clear expectations for B2B clients.
  • Can be customised for regular or high-volume senders.
  • A useful benchmark for performance and reliability.
  • May include penalties for missed targets.

Fleet Management

Fleet management involves overseeing the operation, maintenance, and logistics of the vehicles used for deliveries. While you may never interact with this side directly, it affects your courier’s efficiency and dependability.

  • Impacts availability and response times.
  • Affects fuel efficiency and environmental impact.
  • Key to ensuring delivery consistency.
  • Important for scaling courier operations responsibly.

Dead Mileage

Dead mileage refers to the distance a courier vehicle travels without carrying any parcels—usually when returning to base or travelling between jobs. Reducing dead mileage helps couriers keep costs low and prices competitive.

  • Couriers aim to minimise this through smart routing.
  • Impacts fuel usage and carbon footprint.
  • A factor in delivery pricing, especially for rural areas.
  • Can be mitigated with route planning software or backloading.

Why These Terms Matter to You

You don’t need to be in the logistics industry to benefit from understanding courier terminology. Whether you’re a small business booking regular deliveries, an office manager needing urgent documents transported, or simply someone sending an important one-off parcel—these terms give you the confidence to ask the right questions, compare services properly, and know what to expect.

When choosing a courier, don’t just look at the price. Ask about their POD process. Understand if your delivery needs a dedicated vehicle or would benefit from a timed slot. And if you’re booking regular deliveries, look into SLAs or whether they operate a hub and spoke model.

Even terms like “dead mileage” and “multi-drop” can influence the cost, speed, and reliability of the service you receive.