Fulfillment Glossary

There are a lot of terms out there related to fulfillment. Make sure you’re speaking the same language as your suppliers and customers.

Your Guide to Everything 3PL

This glossary is your guide to understanding the key terms and concepts in the world of logistics and supply chain management. Whether you’re a seasoned professional or new to the field, this glossary is designed to demystify the jargon and help you navigate the complexities of fulfillment with confidence. From basic terms like “inventory management” and “order processing” to more advanced concepts like “demand forecasting” and “reverse logistics,” we cover everything you need to know to enhance your understanding and streamline your operations.

Efficient fulfillment is critical to maintaining customer satisfaction and achieving business success. Our glossary provides clear, concise definitions and explanations of industry-specific terminology, ensuring you have the knowledge to make informed decisions. Learn about the latest technologies and best practices, including “warehouse management systems (WMS)” and “transportation management systems (TMS),” and discover how these tools can optimize your supply chain, reduce costs, and improve service levels. Whether you’re looking to boost your logistical efficiency or stay ahead of industry trends, our glossary is an invaluable resource.

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Explore the glossary at your own pace and uncover the insights that can drive your business forward. With each term defined in straightforward language and supported by practical examples, you’ll gain a deeper understanding of how each component of the fulfillment process works together. Stay informed, enhance your strategy, and elevate your supply chain operations with our comprehensive Fulfillment Glossary. Let’s embark on this journey to mastering fulfillment together!

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3D Printing: Manufacturing process where products are produced by layering various composites and materials (like plastics and metals), building each layer on top of the previous one to create shapes and patterns in a three-dimensional process.
1PL: First-party logistics (1PL) companies provide the manufacturing, warehousing, and distribution of their products independently.; Learn more
2PL: Second-party logistics (2PL) involves a manufacturing company that outsources transportation services to a secondary partner company.; Learn more
3PL: Third-party logistics (3PL) is the outsourcing of a company's logistics processes to a third party business.; Learn more
4PL: Fourth-party logistics (4PL) is the outsourcing of all supply chain and logistics processes to one specific external business.; Learn more
5PL: Fifth-party logistics (5PL) involves an organization managing multiple 3PL and 4PLs.; Learn more
6PL: Sixth-party logistics (6PL) monitors the supply chain using data like ordering patterns and forecasting models to execute the most efficient logistics operations possible by using artificial intelligence (AI).; Learn more
7PL: Seventh-Party Logistics (7PL) is the combination of both a 3PL and 4PL model.; Learn more

A

ABC Analysis: A method of inventory management that categorizes items based on their level of importance or value to the business.
ABC Inventory Control: A method of inventory control that uses the ABC Analysis to manage inventory levels and ensure that high-value items are given more attention than low-value items.
Absolute Minimum Charge (AMC): The minimum charge after all pricing terms have been applied to a shipping order.
Acceptable Quality Level: The maximum number of defective items or errors that are considered acceptable in a batch of products.; Learn more
Accessibility: The ability of carriers to provide a service between an origin and destination location.
Accumulation Bin: A storage bin or container used to temporarily store items that are frequently used or needed in a particular area.
Active Stock: The inventory of products or goods that are currently in use or available for sale. This excludes any items that are backordered, out of stock, or otherwise unavailable.
Actual Weight: The physical weight of an item or package.
Advanced Shipping Notification (ASN): A document sent by a supplier to a customer to inform them of an upcoming delivery.; Learn more
Agile Manufacturing: A manufacturing methodology that emphasizes flexibility, collaboration, and rapid response to change.
Anniversary Billing: A billing system in which customers are billed on the anniversary of their sign-up or purchase date, rather than on a fixed monthly or annual schedule.
Any-Quantity (AQ) Rate: A shipping rate that applies to any quantity of goods shipped, regardless of the total weight or volume of the shipment.
API: Application Programming Interface (API) is a protocol that allows two different computer programs to communicate with each other.
Artificial Intelligence (AI): Computer systems that can perform complex tasks traditionally requiring human intelligence, such as decision-making and problem-solving.; Learn more
Assemble to Order: A manufacturing strategy in which products are assembled from pre-made components or sub-assemblies, based on customer orders or demand.
ATA: An abbreviation for Actual Time of Arrival, which refers to the actual time that a shipment or transport arrives at its destination.
ATD: An abbreviation for Actual Time of Departure, which refers to the actual time that a shipment or transport departs from its origin.
Auto ID: A set of technologies used to automatically identify and track objects or people using various types of sensors or markers. This may include technologies such as barcodes, RFID tags, or biometric identifiers.
Automated Guided Vehicle System (AGVS): A system of vehicles or robots that are guided by a computerized control system to transport materials or products within a manufacturing or warehouse environment.; Learn more
Automated Storage/Retrieval System (AS/RS): A computer-controlled system used to automatically store and retrieve goods from a warehouse or storage facility.; Learn more
Average Order Value (AOV): The average amount of money that a customer spends on an order. Calculated by dividing total revenue by the number of orders received. AOV is a key ecommerce KPI that bundles, kits, and multi-packs are designed to lift.; Learn more

B

Back Order: An order for goods or products that cannot be fulfilled immediately due to insufficient stock or other issues. These orders are typically fulfilled at a later date when the goods become available.
Backhaul: The return trip of a freight vehicle after it has delivered its primary load. Carriers often price backhaul lanes at a discount to avoid running empty, so smart freight routing uses backhaul capacity to lower cost per mile.
Backsourcing: The process of bringing previously outsourced business operations or functions back in-house. This may be done for a variety of reasons, such as cost savings, improved quality control, or greater flexibility.
Bale: A large bundle of goods or materials that has been compressed or tightly packed for storage or transport.
Barcode: A series of vertical bars and spaces of varying widths that represent data or information. Barcodes are typically used for product identification, inventory management, and other applications that require fast and accurate data capture.
Barcode Parsing: The process of breaking down a barcode into its component parts in order to extract relevant data.
Barcoding: The process of applying barcodes to products or items for the purpose of identifying and tracking them.
Base Stock Method: Inventory valuation method that maintains a constant base stock level, and the cost of goods sold is based on the average cost of the units in the base stock.; Learn more
Batch Picking: A warehouse picking strategy in which multiple orders are picked simultaneously, with each picker responsible for picking items for multiple orders at once.; Learn more
Batch Production Manufacturing: A semi-continuous process where products are manufactured in specified amounts and stored as batches.
Best Practice: A method or technique that has been proven to be effective in achieving a particular goal or outcome.
Big Data: A term used to describe extremely large and complex datasets that cannot be easily analyzed using traditional data processing methods. Big data typically involves the use of advanced analytics tools and technologies to extract insights and value from large volumes of data.
Bill of Lading (BOL): A legal document used to detail the type, quantity, and destination of goods being transported, serving as both a receipt and a contract between the shipper and the carrier.; Learn more
Bill of Materials: A comprehensive list of all the materials, parts, and components required to manufacture a finished product.
Billing Schedule: A schedule or timeline that outlines when payments are due for goods or services rendered.
Blind Receiving: Receiving process in which the contents of a shipment are not disclosed to the receiving party until after the shipment has been received and documented.
BOGO: Buy One, Get One. A common promotional structure (BOGO free, BOGO 50% off) used in retail and DTC ecommerce to drive AOV and move inventory. BOGO offers often require kitting or bundle configuration at the fulfillment stage.
Bonded/Customs Warehouse: A bonded warehouse, or customs warehouse, is used to store imported goods.; Learn more
BOPP: An acronym for Biaxially-Oriented (BO) Polypropylene (PP), commonly used in sticker and label printing, food packaging, bottle caps, and other applications.
Bracing: Securing or reinforcing cargo or equipment to prevent it from shifting or moving during transportation. Bracing may involve the use of straps, braces, or other materials to hold the cargo or equipment in place.
Break-Bulk: The process of unloading and separating individual pieces of cargo or equipment from a larger shipment.
Break-Bulk Cargo: Goods or products that are transported in individual pieces, rather than in bulk or containerized form.
Buffer Stock: A reserve inventory of goods or materials that is held in storage to prevent shortages or stockouts.; Learn more
Bulk Area: A designated area within a warehouse or storage facility where large quantities of goods or materials are stored in bulk.
Business Intelligence (BI): A set of tools and techniques used to analyze and interpret data to gain insights and make informed business decisions.
Business Logistics: The process of planning, implementing, and controlling the movement of goods and services from the point of origin to the point of consumption.
Business Process Outsourcing (BPO): The practice of outsourcing non-core business functions to third-party service providers. BPO may involve outsourcing functions such as customer service, accounting, payroll, and human resources.
Business Process Reengineering (BPR): The process of redesigning business processes to improve efficiency, productivity, and quality.
Business to Business (B2B): A type of commerce that involves transactions between businesses.; Learn more
Business to Consumer (B2C): A type of commerce that involves transactions between businesses and individual consumers.

C

Cage: A secure storage area within a warehouse or distribution center where high-value or sensitive items are stored.
Caged: A term used to describe items that are stored in a secure cage or storage area.
Campus Sampling: A product sampling tactic that distributes samples directly on college campuses to reach a concentrated student audience. A common experiential marketing channel for CPG brands, often paired with kitting and nationwide parcel distribution.; Learn more
Carrier: A company or individual that transports goods or products from one location to another.
Carrier Liability: The legal responsibility of a carrier for the safe and timely delivery of goods in its custody.
Cartage: The process of transporting goods or products over short distances.
Carton Flow Rack: A type of shelving system that uses rollers or gravity to move cartons or boxes from the back of a shelf to the front.
Case Erector: A machine that automatically forms, folds, and seals corrugated cartons. Also referred to as a "box erector".
Case Picking: The process of picking a product in full case or carton quantities to fill a customer order.; Learn more
Catch Weight: A method of inventory measurement used for goods that are sold by weight but may vary in weight from unit to unit.
Certificate of Origin: A document that verifies the country of origin of goods being shipped.; Learn more
Change Order: A written order that changes the scope, schedule, or cost of a project or contract.
Channel Conflict: A situation in which different distribution channels for a product or service compete with each other, rather than complementing each other.
Channel Partners: Companies or individuals that work together to produce and sell a product or service.
Chargeable Weight: The weight used to calculate shipping charges for air and sea freight shipments.
Chargeback: A financial penalty assessed by a retailer (commonly Walmart, Target, Amazon, Costco) when a vendor misses a compliance requirement: late shipment, incorrect labeling, incomplete ASN, OTIF failure, packaging non-conformance. Chargebacks can meaningfully erode margin on wholesale orders.; Learn more
Claim: A request by a customer for compensation or reimbursement for loss, damage, or delay in the delivery of goods or services.
COGS (Cost of Goods Sold): The direct cost of producing or acquiring the goods a company sells, including raw materials, labor, inbound freight, duties, and packaging. COGS is a core input to landed cost and gross margin calculations.; Learn more
Cold Chain: The end-to-end temperature-controlled supply chain for products that must stay within a defined range from manufacturer to end customer. Common in food & beverage, pharmaceuticals, biologics, and some beauty products.; Learn more
Cold Storage: Warehouses that store products that have strict temperature and/or moisture range requirements.; Learn more
Collaborative Robot (cobots): These robots are used alongside the human warehouse staff and can handle repetitive tasks like picking or kitting.; Learn more
Confirmation: An official notification or verification of an order or transaction. Confirmation may be provided through an email, fax, or other communication method.
Consignee: The person or company to whom goods are shipped or delivered.
Consignor: The person or company that sends goods to another party.
Consumables: Items that are used up or depleted over time, such as office supplies or fuel.
Consumer Packaged Goods (CPG): Products that consumers use regularly and replace frequently: food, beverage, personal care, household goods, pet, and health & beauty. CPG brands typically sell through a mix of retail distribution and DTC ecommerce and have specialized fulfillment needs around sampling, kitting, and food-grade handling.; Learn more
Continuous Flow Distribution: A logistics system in which goods are continuously moved from one stage of the supply chain to the next without interruption.
Continuous Production Manufacturing: Like batch production, continuous production manufacturing is a process manufacturing method where the raw materials being processed are gasses, liquids, powders, or slurries, rather than solid materials.
Co-Packing: Short for contract packaging. The outsourced assembly, packing, and finishing of a product by a third-party, often for a specific campaign, retail requirement, or promotion. Co-packing is central to sampling programs, trade show kits, and retail-ready packaging.; Learn more
Contract Manufacturing: Sourcing strategy where a company will outsource parts of their manufacturing process.; Learn more
Contract Packaging: A strategic business arrangement in which a company outsources its packaging and other related services to a third-party provider.; Learn more
Contract Warehouse: Type of public warehouse that provides you guaranteed storage space. These contract warehouses can also provide value-added fulfillment services.; Learn more
Conveyor: A mechanical device used to move materials or goods from one location to another.
Critical Stock: Inventory items that are essential to a company's operations and require careful management to ensure that they are always in stock.
Cross Dock / Cross Docking: A logistics strategy in which goods are unloaded from inbound trucks or containers and immediately loaded onto outbound trucks or containers without being stored in a warehouse.; Learn more
Cross-Border Fulfillment: Order fulfillment that crosses international borders, requiring customs clearance, duty handling, tax collection, and often multi-carrier parcel strategies. A different operational playbook from domestic ecommerce fulfillment.; Learn more
Cubage: The total volume or capacity of a shipment, usually expressed in cubic feet or cubic meters.
Cumulative Lead Time: The total time required to complete a manufacturing or supply chain process, including all lead times for each stage of the process.
Customer Relationship Management (CRM) Systems: A system that helps a business manage and analyze customer interactions and relationships throughout the customer lifecycle. The primary role of a CRM system is to provide a centralized platform where all customer-related information is stored and accessible.
Customs Broker: A specialized firm that helps businesses with importing and exporting goods.; Learn more
Customs Clearance: A process within international trade that involves the documentation, inspection, and regulatory procedures necessary for goods to cross international borders.; Learn more
Custom Product Development: The process of designing and manufacturing products according to specific customer requirements.; Learn more
Cybersecurity Systems: System that helps safeguard sensitive data and maintains the integrity and confidentiality of information within the supply chain.; Learn more
Cycle Count: An inventory auditing procedure, where a company follows a regularly repeated sequence of checks on a small amount of their inventory.
Cycle Time: The amount of time required to complete one cycle of a production or supply chain process.

D

Data Analysis: The process of examining and interpreting data to draw conclusions and make informed decisions.
Dead Stock: Inventory that has stopped selling and is unlikely to move at full price. Dead stock ties up cash and warehouse space; demand forecasting and SKU rationalization are the primary preventions.; Learn more
Deadhead: A freight term for a truck or driver running empty between loads. Deadhead miles are a cost without revenue, which is why backhaul optimization matters.
Defective Goods Inventory (DGI): Inventory that consists of defective or damaged products that are not fit for sale. DGI may be held separately from other inventory and may require special handling or disposal.
Delivery Appointment: A pre-arranged time and date for the delivery of goods or services.
Delivery Confirmation: A confirmation that a shipment has been delivered to its destination. Delivery confirmation may be provided through a signature, email, or other communication method.
Demand Forecasting: The process of estimating future customer demand for a product in order to balance stock levels against carrying cost and the risk of stockouts.; Learn more
Demurrage: A fee charged by a carrier for the delay of a ship or other transportation vehicle beyond the agreed-upon time for loading or unloading.
Destock: The process of reducing or eliminating inventory levels of a particular product or product line.
Devanning: The process of unloading goods from a container or other transport vehicle.
DIM Divisor: The number a carrier divides a package's cubic size by to produce its dimensional weight. Lower divisors mean higher dimensional weights and higher costs. Carriers periodically lower their divisors, effectively raising rates on bulky packages.; Learn more
Dimensional Factor (DIM Factor): A representation of the amount of space one unit of weight occupies in the carrier's transportation network.; Learn more
Dimensional Weight (DIM Weight): A pricing method to account for the space a package occupies in relation to its actual weight.; Learn more
Direct Fulfillment: A logistics strategy in which products are shipped directly from the manufacturer or supplier to the end customer, bypassing traditional retail channels.
Direct Store Delivery (DSD): A method of distribution in which products are delivered directly to retail stores from the manufacturer or supplier.
Direct-to-Consumer (DTC / D2C): A business model where a brand sells directly to end consumers (typically through its own ecommerce site or branded channels) instead of through wholesale distribution or third-party retailers. DTC fulfillment emphasizes small-parcel shipping, brand-forward packaging, and real-time inventory visibility.; Learn more
Discrete Manufacturing: Like repetitive manufacturing, however, instead of creating the same product every time, discrete manufacturing will often switch the setup of the machine to create custom products.
Discrete Picking: A picking method in which each order is picked individually from storage locations.; Learn more
Dispatch Confirmation: A confirmation that a shipment has been dispatched or sent out for delivery.
Distribution: The process of moving goods or services from the manufacturer or supplier to the end customer.
Distribution Center (DC): A warehouse or facility used for the storage, processing, and distribution of goods to retail stores, wholesalers, or end customers.
Distribution Channel: The path through which goods or services flow from the manufacturer or supplier to the end customer.
Distribution Warehouse: A warehouse used for the storage and distribution of goods to retail stores, wholesalers, or end customers.; Learn more
Distributor: A company that buys products from manufacturers or wholesalers and sells them to retailers or end customers.
Dock Door: An opening in a warehouse or facility that allows access for loading and unloading of goods from trucks or other transportation vehicles.
Dock Receipt: A document used to acknowledge the receipt of goods by a carrier at a shipping dock.; Learn more
Drayage: The transport of goods over a short distance, typically from a port to a warehouse or other destination.
Drop: The delivery of goods to a specific location without the need for an appointment or prior arrangement.
Dropshipper: Person or business that uses the dropshipping fulfillment method.; Learn more
Dropshipping: A fulfillment method in which the retailer or seller does not keep goods in stock but instead transfers customer orders and shipment details to a manufacturer, wholesaler, or another retailer who then ships the goods directly to the customer.; Learn more
Dry Sampling: Sending samples home with consumers to try on their own.; Learn more
Dunnage: The material used to protect goods during transport or storage.

E

Each: A unit of measure used to indicate individual items, often used in retail and ecommerce settings.
Ecommerce Fulfillment: The process of receiving, processing, and delivering online orders to customers.; Learn more
Economic Order Quantity: A formulaic inventory valuation approach that calculates the optimal order quantity to minimize total inventory costs, including carrying costs and order costs.; Learn more
Electronic Data Interchange (EDI): The exchange of business documents between companies in an electronic format, typically used to automate supply chain processes.
End Item: A finished product or final assembly that is ready for sale to the end customer.
Enterprise Resource Planning (ERP) System: A software system that integrates and manages various business processes, such as finance, human resources, and supply chain management.
EPC or ePC: Electronic Product Code: A unique identifier used to track individual products throughout the supply chain.
Expedited Freight: Freight shipments moved on an accelerated timeline, often with team drivers, dedicated trucks, or air freight. Used when standard transit times would miss a retailer compliance window, a product launch, or a seasonal cutoff.
Expediting: The process of accelerating the movement of goods or services to meet a deadline or delivery schedule.
Experiential Marketing: A process for brands to connect with customers through experiences.; Learn more
Export Processing Zone: A designated area within a country that is used for manufacturing and exporting goods.

F

Facilities: Physical spaces used for various business operations, including production, storage, and distribution.
FAST (Flow, Accessibility, Space, Throughput): A set of principles used to optimize warehouse and distribution center operations, including efficient flow of goods, easy accessibility, adequate space, and high throughput.
FBA Prep: A necessary preparation step before products can be sold on Amazon's platform.; Learn more
Field Marketing: In-market, in-person brand marketing: street teams, campus sampling, retail activations, trade shows, and experiential events. Field marketing campaigns typically require coordinated kitting, nationwide parcel distribution, and lot or expiration tracking for consumable products.; Learn more
Fill Rate: The percentage of customer orders a fulfillment operation ships complete, without stockouts or substitutions. A core fulfillment KPI; low fill rate signals demand forecasting, inventory management, or supplier reliability problems.; Learn more
Final Mile: Synonym for last mile. The final leg of a delivery, from a local hub or terminal to the end customer's door. Especially relevant for heavy, bulky, or oversized items where carriers charge premium final-mile rates.; Learn more
Finished Goods Inventory (FG or FGI): The inventory of completed products ready for sale to customers.
First Expired, First Out (FEFO): A method of inventory management that prioritizes the sale and distribution of products based on their expiration date.; Learn more
First In, First Out (FIFO): A method of inventory management that prioritizes the sale and distribution of products based on the order in which they were received.; Learn more
Flatbed: A truck trailer with no sides or roof, used for oversized, irregularly shaped, or heavy freight that can't fit a standard dry van: lumber, machinery, pallets of equipment, construction materials.
Floor Loaded Container: Shipping container stacked with freight that has been loaded from the floor up without utilizing a shipping pallet.
Floor Stacking: A LIFO (Last in, first out) system where pallets are placed on the floor in organized rows.
Flow Wrap: Product packaging wherein a product is wrapped in transparent or printed polyethylene (PE), polypropylene (PP) or polyethylene terephthalate (PET) packaging.; Learn more
Food and Drug Administration (FDA): A government agency responsible for regulating food, drugs, and medical devices in the United States.
Forklift: Industrial truck with pronged device used to lift and move heavy loads.
Free on Board (FOB): A shipping term indicating that the seller is responsible for the goods until they are loaded onto the transport vehicle at the shipping point.
Freight: Goods that are transported by air, sea, or land, typically for commercial purposes.; Learn more
Freight Broker: Acts as an intermediary between shippers and carriers, connecting those in need of transportation services with available trucking companies. They are primarily responsible for negotiating rates, arranging the movement of cargo, and handling the paperwork associated with shipments.; Learn more
Freight Forwarder: An intermediary between shippers and carriers that arranges transportation and handles documentation for the movement of goods.; Learn more
Fuel Surcharge: Additional fee once the cost of fuel exceeds the agreed-upon level.; Learn more
Fulfillment By Amazon (FBA): A program by Amazon where third-party sellers can use Amazon's fulfillment and delivery network to store, pick, pack, and ship their products to customers.; Learn more
Fulfillment: The process of receiving, processing, and fulfilling customer orders.; Learn more
Fulfillment Center: A warehouse or distribution center where products are stored, processed, and shipped to customers.; Learn more
Fulfillment KPIs: The operational metrics brands use to measure fulfillment health: order accuracy, on-time shipping, fill rate, perfect order rate, inventory turnover, cycle time, return rate. Watching trends on the right KPIs predicts problems before customers feel them.; Learn more
Fulfillment Services Provider: A third-party logistics provider that offers fulfillment services, which include storing inventory, processing orders, picking, packing, and shipping products to customers.; Learn more
Full Container Load (FCL): A shipment that occupies an entire shipping container.
Full Truck Load (FTL): Like FCL, a shipment that occupies an entire truckload.
Functional Acknowledgement (FA): An electronic message that serves as a response to a received EDI (Electronic Data Interchange) message. The FA indicates that the received message has been successfully processed and acknowledges any errors or exceptions encountered during processing.

G

Global Product Sourcing: A procurement strategy in which a business buys goods from international markets.; Learn more
Glue Tipping: Method of attaching a product, product sample, or gift card to a printed envelope or literature card with adhesive glue.; Learn more
Goods: Physical items that are traded or exchanged in the market. Goods can be raw materials, finished products, or anything in between.
Goods-to-Person: An automation model where robots or conveyors bring inventory to a stationary picker, instead of pickers walking the warehouse to inventory. Reduces travel time dramatically in high-velocity ecommerce fulfillment.; Learn more
Government Warehouse: Warehouses mainly used to store supplies for local governments, schools, and hospitals.; Learn more
Gross Weight: The total weight of a shipment, including the weight of the goods and the packaging material.
GSM: A specification that describes the thickness of paper.
GTIN (Global Tracking Identification Number or Global Trade Item Number): A unique identification number used to identify products in the supply chain. GTINs are commonly used in barcodes and other forms of product labeling.
Guerilla Sampling: Using field marketing to promote products in places where the promoter doesn't seek approval.; Learn more
GWP (Gift With Purchase): A promotional offer in which a free item is added to a customer's order when the order meets a threshold (minimum spend, specific SKU, qualifying promotion). GWP campaigns depend on precise kitting and inventory management to avoid stockouts of the free item.

H

Hazmat: Hazardous materials. Goods regulated for shipping because they pose a safety or environmental risk: lithium batteries, aerosols, flammables, certain chemicals. Hazmat shipments require special packaging, labeling, documentation, and often restricted carriers.
Headless Commerce: An ecommerce architecture that decouples the storefront (front end) from the commerce engine (back end), connected via APIs. Allows brands to deliver the same catalog, inventory, and order management across web, mobile, social, kiosk, and marketplace channels.
Heavy and Bulky Parcel: Parcels that exceed standard carrier dimensional or weight thresholds (typically 5 lbs and up, or larger-than-standard footprint). Carriers surcharge heavy/bulky parcels aggressively, which is why central-US fulfillment and negotiated carrier rates compound meaningful savings in this weight class.; Learn more
Holding Cost: The cost of holding inventory in a warehouse or distribution center.
Hybrid Fulfillment: Order fulfillment strategy where a merchant uses more than one fulfillment model to fulfill and ship orders.; Learn more
Hybrid Warehouse: A type of warehouse that has both public and private warehousing space. When extra space is available, they will rent out the space to other customers.; Learn more

I

Import: The process of bringing goods, products, or materials into a country from another country.; Learn more
In-House Fulfillment: Involves the ecommerce business handling all operations internally. This includes everything from warehousing and inventory management, to the final shipping of products to consumers.
Inbound Logistics: The process of managing and coordinating the movement of goods, materials, and resources into a business or organization.
Incoterms: International Commercial Terms. A standardized set of three-letter trade terms (FOB, CIF, DDP, EXW, etc.) published by the ICC that define who is responsible for shipping, insurance, duties, and risk at each stage of an international shipment.
Influencer Seeding: A sampling and PR tactic where branded product kits are sent to selected creators, influencers, or press contacts to generate organic content, reviews, or coverage. Seeding kits require careful curation, personalization, and tracked parcel distribution.; Learn more
Information Technology (IT): The use of computers, networks, and other electronic devices to enable the efficient handling of information and support of business operations.; Learn more
Intermodal Transportation: A type of transportation that involves the use of multiple modes of transportation, such as trucks, trains, and ships, to move goods and materials across long distances.
Internet of Things (IoT): A network of connected physical devices that collect and exchange data using sensors, software, and other technologies, enabling them to communicate and interact with each other.; Learn more
Intrusion Detection Systems (IDS): Analyze network traffic and detect suspicious activity or anomalies, alerting security personnel to potential security breaches.; Learn more
Inventory: The goods, products, or materials that a company holds in stock and intends to sell or use in its operations.
Inventory Cost: The cost associated with holding and managing inventory, including costs related to storage, handling, insurance, obsolescence, and depreciation.
Inventory Management: The process of overseeing and controlling the flow of goods, materials, and resources into and out of a business or organization.; Learn more
Inventory Management Systems: A specialized piece of software designed to oversee and control inventory levels, helping maintain the right amount of stock to meet customer demand without incurring excess costs.; Learn more
Inventory Master File: A database or system that contains detailed information about a company's inventory, including item descriptions, stock levels, locations, and other relevant data.
Inventory Turnover: A core efficiency KPI calculated as cost of goods sold divided by average inventory over the period. High turnover generally means lean inventory and healthy demand; low turnover warns of dead stock, overbuying, or demand misreads.; Learn more
Invoice: A document that itemizes the goods or services provided by a seller to a buyer and specifies the payment terms, including the amount due and the due date.
ISO: The International Organization for Standardization is an independent, non-governmental organization that develops and publishes international standards for a wide range of industries and applications.
ISO 13485: Specifies requirements for a quality management system where an organization needs to demonstrate its ability to provide medical devices and related services that consistently meet customer and applicable regulatory requirements.; Learn more
Item Alias: Name of an item that is different from the name used in the warehouse.
Item Number: A unique identifier assigned to a specific item or product, often used in inventory management and control to track and manage inventory levels.; Learn more

J

Job Shop Manufacturing: Manufacturing process that uses production areas or workstations instead of an assembly line to create small-batch, custom-made goods with a heavy emphasis on product quality.
Just In Time (JIT): A production strategy in which materials and components are delivered to a manufacturing plant or assembly line just in time to be used in the production process, reducing the need for inventory storage and management.

K

Kata: A manufacturing approach that involves consistent practice and scientific thinking to improve procedures.
Key Performance Indicator (KPI): A measurable value that indicates how well a company or organization is achieving its business objectives and goals, such as customer satisfaction, profitability, or productivity.; Learn more
Kitting: The process of assembling or packaging individual components or items into a single unit or kit, often used in manufacturing, distribution, or e-commerce.; Learn more

L

Landed Cost: The total cost of a product to reach a customer's door.; Learn more
Last In First Out (LIFO): An inventory management method in which the most recent items received or produced are the first to be sold or used, often used to account for inventory costs and tax purposes.; Learn more
Last Mile: The final stage of delivery, in which products or packages are transported from a local warehouse or hub to their ultimate destination, such as a customer's home or business address.; Learn more
Last Mile Problem: The final stage of delivery, in which products or packages are transported from a local warehouse or hub to their ultimate destination, such as a customer's home or business address.; Learn more
Lead Time: The amount of time required for a product or component to be produced, shipped, and delivered to its final destination, including any processing, manufacturing, and transit time.
Less-Than-Container-Load (LCL): A shipping method used for goods that do not fill an entire shipping container, allowing multiple shippers to share the same container space and reduce shipping costs.
Less-Than-Truckload (LTL): Same as LCL, goods that do not fill an entire truckload.
Loading Dock: A raised platform or area where goods are loaded and unloaded from vehicles.
Locator System: A system that assigns specific locations for products within a warehouse or distribution center.
Logistics: The process of planning, implementing, and controlling the flow of goods, services, and information from the point of origin to the point of consumption in order to meet customer requirements.
Logistics Center: A facility where goods are received, sorted, stored, and shipped as part of the logistics process.
Logistics Data Interchange (LDI): The electronic exchange of logistics-related data between different companies or entities, such as purchase orders, shipping notifications, and invoices.
Lot: A specific quantity of a product or material produced or packaged together.
Lot Sizing: The process of determining the optimal quantity of items to produce or order in order to minimize costs while meeting demand.

M

Machine Learning: A subset of AI where computer systems learn and improve from experience without being explicitly programmed, by analyzing patterns in data.; Learn more
Make-To-Assemble (MTA): A strategy that involves the production of component parts in anticipation of orders for assembly.
Make-To-Order (MTO): A production strategy that only happens after an order has been received (often involving a signed contract, like a purchase order).
Make-To-Stock (MTS): Production strategy where the factory produces a standardized product based on a forecast of demand. The inventory of the product is then held and distributed to retailers to meet consumer demand.
Manifest: A document that lists the details of a shipment, including the contents, origin, destination, and other relevant information.; Learn more
Manufacturers: Transform raw materials and components into finished products. They are responsible for the production process, quality control, and meeting production schedules.
Manufacturing: The process of producing goods from raw materials or components, typically involving a series of operations and assembly.; Learn more
Marketing Activations: The execution of specific marketing tactics aimed at engaging consumers.; Learn more
Market-Positioned Warehouse: A warehouse that is located in close proximity to a specific market or customer base in order to reduce transportation costs and improve delivery times.; Learn more
Material: Any physical substance or product that is used or processed in the manufacturing or distribution process.
Material Flow: The movement of goods, materials, and components through a production or distribution system.
Material Handling: The movement, storage, and control of materials and products within a manufacturing or distribution facility.
Micro-Fulfillment: A fulfillment model that uses small, highly automated facilities placed close to dense urban demand to enable same-day or next-day delivery. Common in grocery and quick-commerce.
MOQ (Minimum Order Quantity): The smallest quantity a supplier, manufacturer, or 3PL will accept for a given order or production run. MOQs can shape launch planning, SKU proliferation decisions, and co-packing economics.
Movable Unit: A container, pallet, or other unit of goods that can be easily moved or transported within a warehouse or distribution center.
Multi-Node Fulfillment: A fulfillment network with multiple distribution nodes (warehouses) that split inventory to reduce transit times and parcel zone cost. Not always the right answer: multi-node adds complexity, duplicate safety stock, and WMS orchestration overhead that a well-placed single node can avoid.; Learn more

N

Net Weight: The weight of a product or shipment excluding any packaging, containers, or other materials used to transport or store it.

O

Obsolete Inventory: Inventory that is no longer useful or sellable due to being outdated, damaged, or unusable.
Omnichannel Fulfillment: A fulfillment strategy that integrates multiple sales channels (e.g. physical stores, e-commerce websites, mobile apps) to provide customers with a seamless shopping experience.; Learn more
Onboarding (3PL): The structured process of transitioning a brand's fulfillment operation into a new 3PL partner: data integration, SKU setup, inventory transfer, SOP alignment, and a go-live cutover. A clean onboarding materially reduces churn and avoids launch-week service failures.; Learn more
On-Demand: A production and delivery model where goods or services are provided to customers immediately upon request, rather than being produced or stocked in advance.
Operating Ratio: A financial metric that measures a company's operating expenses as a percentage of its revenue. A lower operating ratio indicates better cost management and efficiency.
Order: A request made by a customer to purchase goods or services from a supplier or retailer.
Order Accuracy: The percentage of orders a fulfillment operation ships correctly: right items, right quantities, right packaging, right destination. A primary fulfillment KPI, often reported alongside fill rate and on-time shipping.; Learn more
Order Cycle: The time it takes from when an order is placed to when it is delivered to the customer.
Order Fulfillment: The process of receiving and processing customer orders, picking and packing products, and delivering them to the customer.; Learn more
Order Management: The process of managing customer orders, including receiving and processing orders, inventory management, and fulfillment.
Order Management Systems (OMS): Software that facilitates the order fulfillment process, from order entry to delivery. The primary function of an OMS is to manage and process customer orders efficiently, ensuring that each order is accurately captured, processed, and fulfilled in a timely manner.
Order Processing: The process of managing and executing customer orders, including verifying order details, checking inventory availability, and generating packing and shipping labels.
OSHA: The Occupational Safety and Health Administration, a US government agency responsible for establishing and enforcing workplace safety regulations.
OTIF (On-Time In-Full): A retail compliance metric that scores vendors on delivering the full ordered quantity by the required delivery date. Walmart, Target, Costco, and most big-box retailers assess chargebacks for missing their OTIF thresholds, which makes OTIF performance a direct margin lever on wholesale business.; Learn more
Outbound Logistics: The process of managing the movement of goods from a company's warehouse or manufacturing facility to its customers or distribution partners.
Overhead: A company's indirect expenses that are not directly tied to the production or sale of a specific product or service, such as rent, utilities, and administrative costs.
Overwrap: Overwrap is a packaging method that wraps and heat-seals products with flat sides, such as cylinders and cube-shaped boxes.; Learn more

P

Packing: The process of preparing products for shipment, including selecting appropriate packaging materials, packing products securely, and labeling packages with shipping information.
Packing List: A document that lists the items included in a shipment, along with quantities and descriptions of each item.; Learn more
Pallet: A flat platform used for storing, handling and moving materials and products. Typically made of wood, plastic or metal and can be lifted using a forklift or pallet jack.
Pallet In / Pallet Out (PIPO): A material handling method where materials are received and shipped on pallets, and are not unpacked until the final destination.
Pallet Jack: Machine used to move small loads of pallets in a warehouse.
Pallet Picking: A method of order picking where entire pallets of a single SKU are picked instead of individual cases or items.; Learn more
Pallet Racks: Storage aid system designed to store palletized goods.
Palletized: Refers to goods or materials that have been stacked or arranged on a pallet for easier handling, transportation and storage.
Paperless Warehouse: A warehouse or distribution center where all documentation, records and processes are managed electronically, without the use of paper.
Parcel Shipping: The shipping of small packages or parcels, typically weighing less than 150 pounds, using a carrier such as UPS, FedEx, or USPS.; Learn more
Partial Truckload (PTL): A freight service that sits between LTL and full truckload, typically for shipments too large for LTL economics but not large enough to justify a full truck. Fewer handoffs than LTL, often faster transit and lower damage risk.
Peak Season: The high-volume period in ecommerce fulfillment, usually running from mid-October through early January, driven by Black Friday / Cyber Monday / holiday gifting. Carriers impose peak surcharges and brands plan months in advance for inventory, labor, and parcel capacity.; Learn more
Perfect Order Rate: The percentage of orders delivered on time, complete, undamaged, and with accurate documentation. The composite fulfillment KPI, because it rolls together fill rate, on-time, accuracy, and damage into a single customer-experience number.; Learn more
Physical Inventory: A periodic count and verification of all inventory items and quantities held in a warehouse or storage facility.
Physical Supply: The movement of materials from a supplier to a warehouse or manufacturing facility, including transportation, receiving and storage.
Pick and Pack: The process of selecting products from inventory (picking) and then packaging them (packing) for shipment to customers.; Learn more
Pick List: A document or electronic record that lists the items and quantities to be picked for an order or group of orders.
Pick Sequence: The order in which items are picked from inventory for an order, based on factors such as location, ease of access, and demand.
Pick Ticket / Pick Instruction: A document or electronic record that provides instructions for the picking process, including the items to be picked, their locations, and any special handling instructions.
Pick-to-Light: A picking method where lighted indicators at each storage location signal to the picker exactly which bin to pick from and how many units to take. Reduces error rates and shortens training time versus paper-based picking.; Learn more
Picker: An employee who selects items from inventory to fulfill customer orders.
Picking: The process of selecting and removing items from inventory to fulfill customer orders.; Learn more
Piece Picking: Piece picking is a type of order picking method in which individual items are picked one by one to fulfill a customer order.; Learn more
Planned Order Receipt: Planned order receipt refers to the scheduled delivery of goods or materials that have been ordered and planned for in advance.
Polyethylene (PE): Polyethylene is a thermoplastic polymer known for its flexibility.
Polypropylene (PP): Polypropylene (PP) is a thermoplastic polymer known for its durability and strength.
Port Authority: A port authority is a government agency or body responsible for managing and regulating the operations of a port.
POS: POS stands for point of sale, which is the location where a retail transaction takes place. This can refer to a physical cash register or electronic device used to process payments and record sales.
PR Kit (Press Kit): A branded kit assembled for media contacts, influencers, or press partners to introduce a product or campaign. Usually custom-packed, personalized, and shipped to many addresses on a tight launch window.; Learn more
Pre-Kitting: Combining items at the end of the manufacturing process before sending them to a 3PL company to store and fulfill.; Learn more
Prepaid Freight: Prepaid freight is a shipping term that refers to freight charges that are paid by the shipper or sender of the goods in advance of shipment.
Primary Packaging: Primary packaging is the layer of packaging that comes into direct contact with the product. It's the first layer of protection from external factors such as moisture, light, air, and contamination.; Learn more
Private Warehousing: Private warehousing refers to a type of warehousing where a company or organization owns and operates their own warehouse facilities. This is in contrast to public warehousing, where a company rents space in a warehouse owned by a third-party logistics provider.; Learn more
Process Improvement: Process improvement refers to the ongoing effort to improve the efficiency and effectiveness of a business process.
Process Manufacturing: Process manufacturing is a type of manufacturing where goods are produced by combining raw materials or components through a chemical or biological process.
Process Yield: Process yield refers to the percentage of usable output produced in a manufacturing process compared to the total amount of raw materials or components used.
Procurement: Procurement is the process of acquiring goods, services, or materials from external suppliers.
Product: A good or service that is offered for sale to a customer.
Product Characteristics: Product characteristics refer to the unique features or attributes of a product that differentiate it from other products in the market.
Product Description: Product description refers to the written or spoken information that describes a product and its features or benefits.
Product ID: A unique code or number assigned to a product to identify it in a company's inventory management system, supply chain, or marketplace.
Product Sampling: The practice of offering goods or services to your audience in exchange for increased brand awareness, feedback, and other revenue-boosting user-generated content (UGC).; Learn more
Product Rework: The process of correcting or modifying products often through activities such as repackaging, relabeling, or any other necessary adjustments before they are shipped to customers.; Learn more
Production Line: A sequence of activities or processes involved in the manufacturing of a product, typically consisting of multiple workstations and equipment.
Proof of Delivery (POD): A document or electronic record that serves as evidence of the successful delivery of a shipment to its intended recipient.; Learn more
Public Warehouse: A commercial facility that provides storage and other logistics services for a fee to businesses and individuals.; Learn more
Public Warehouse Receipt: A legal document that serves as proof of ownership or control of goods stored in a public warehouse.
Purchase Order (PO): A commercial document issued by a buyer to a seller that specifies the products or services to be purchased, quantities, agreed prices, and delivery terms.; Learn more
Putaway: The process of transferring newly received or manufactured goods from the receiving or production area to a designated storage location within a warehouse or distribution center.

Q

QR Code: A two-dimensional barcode that can be scanned using a smartphone or other mobile device, containing information about a product, service, or website.
Quality Assurance (QA): The process of ensuring that products or services meet or exceed customer requirements and quality standards, typically involving testing, inspection, and continuous improvement efforts.; Learn more
Quality Control (QC): The process of verifying that products or services meet established quality standards, typically involving inspection and testing at various stages of production or delivery.; Learn more
Quarantine: A temporary hold or isolation of products or materials suspected of being defective, contaminated, or non-conforming, until they can be evaluated or corrected.
Queue Time: The amount of time that a product, order, or task spends waiting in a queue or line before being processed or completed.
Quick Response: An inventory management and logistics strategy that emphasizes rapid response to customer demand by maintaining a lean inventory, utilizing fast and flexible manufacturing processes, and efficient logistics.
Quota: A government-imposed restriction on the quantity or value of goods that can be imported or exported, typically for economic or political reasons.

R

Rack: A structural framework with shelves, bins, or other supports that is used to store products in a warehouse or distribution center.
Radio Frequency (RF): A wireless communication technology used in logistics operations to transmit data from handheld devices to warehouse management systems or other software applications.
Radio Frequency Identification (RFID): A technology that uses radio waves to identify and track objects, such as products or inventory, in a supply chain or logistics operation.
Ramp: A sloping platform that connects a loading dock to the ground or to a trailer, making it easier to load and unload cargo or products.
Random-Location Storage: A method of inventory storage where items are placed in any available space in the warehouse rather than being assigned to specific locations or slots.
Rate Sheet: A document that lists the rates or fees charged for various shipping or transportation services, such as freight rates or carrier fees.
Rate Shopping: The process of comparing and selecting the most cost-effective shipping or transportation rates from multiple carriers or service providers.; Learn more
Raw Materials (RM): The basic materials or components used to manufacture products, such as metals, plastics, or chemicals.
Real-Time: Describes a system or process that operates or provides information immediately, without delay or lag time.
Receiving: The process of accepting and documenting the delivery of products or materials into a warehouse or distribution center.
Receiving Dock: A designated area of a warehouse or facility where incoming products or materials are received and processed.
Receiving Report: A document that records the details of an inbound shipment, including the date, time, quantity, and condition of the products or materials received.; Learn more
Recurring Billing: A billing method used for products or services that are regularly provided or consumed, where the customer is charged automatically on a regular basis, such as monthly or annually.
Reefer: A refrigerated truck trailer or shipping container, used for temperature-sensitive goods like frozen food, dairy, pharmaceuticals, and certain beauty products. The cold chain's workhorse.
Reorder Level: The minimum quantity of inventory that must be maintained in stock to ensure that products or materials are available when needed, without causing delays or stockouts.; Learn more
Repetitive Manufacturing: Process that manufactures products repeatedly over a long period at a fixed production rate.
Replenishment: The process of restoring or replenishing stock levels in order to meet the demand for a product or materials.; Learn more
Request for Information (RFI): A document used to solicit information about a product or service from potential vendors or suppliers.
Request for Proposal (RFP): A document used to solicit proposals from vendors or suppliers for a specific product or service.
Reserve Storage: A storage area used to hold items that are not yet needed for production or order fulfillment, but that are expected to be needed in the future.
Retail Compliance Repackaging: The reconfiguration or relabeling of inventory to meet a specific retailer's packaging, labeling, barcoding, or display requirements. Walmart, Costco, Target, and Amazon each have distinct spec sheets, and getting them wrong triggers chargebacks or rejection at receiving.; Learn more
Retail Distribution: Retail distribution encompasses warehousing, inventory management, order fulfillment, transportation and logistics, cross-docking, and reverse logistics.; Learn more
Retail Inventory Method: Inventory valuation method that calculates the cost of goods sold and ending inventory based on the ratio of the cost of goods at retail prices to the total retail price of the goods.; Learn more
Retailer: The points of sale where consumers buy products. Retailers manage inventory, pricing, and customer interactions. Retailers can be brick-and-mortar stores, e-commerce platforms, or other sales channels.
Return Goods Handling: The process of managing and processing returned items from customers.; Learn more
Reverse Logistics: The process of managing the flow of goods from the point of consumption back to the point of origin or to a new destination for the purpose of capturing value or proper disposal.; Learn more
Rewarehousing: The process of relocating products or materials from one warehouse or storage location to another for better organization, space optimization, or inventory management purposes.
Rolled Throughput Yield: Measures the probability of a product making it through the entire process without having a single defect.
Route Optimization: Determining the most efficient path for delivery, taking into account factors such as distance, traffic, and fuel consumption, to minimize costs and improve delivery times.

S

Safety Stock: The extra stock held in inventory to protect against unexpected demand or delays in supply.; Learn more
Sales Order: A document that outlines the details of a customer's order, including the quantity, product, price, payment terms, and delivery date.; Learn more
Secondary Packaging: Secondary packaging is the outer layer of packaging that surrounds the primary packaging. Although it doesn't ever come into direct contact with the product, secondary packaging is crucial to ensure products are secure and safe throughout the distribution process.; Learn more
Secure Electronic Transaction (SET): A protocol for secure electronic payments over the internet.
Serial Number: A unique identifier assigned to a specific product or item for tracking and inventory management purposes.
Service Charges: Fees charged by a service provider for specific services or activities, such as shipping, handling, or installation. These charges are in addition to the cost of the product or service being provided.
Shipping: The process of preparing products or materials for transport from one location to another. This includes packaging, labeling, and arranging for transportation.; Learn more
Shipping Zone: A geographical location to which a carrier will ship to.
Shopping Carts: An online feature that allows customers to select items for purchase and hold them in a virtual cart until they are ready to checkout.
Shrinkage: The loss of inventory between purchase from the supplier and sale to the customer, caused by theft, damage, miscounts, administrative error, or spoilage. Measured as a percentage of inventory value.
Simultaneous Picking: A picking method where multiple orders are picked simultaneously by one or more pickers, rather than one order at a time.; Learn more
Single-Node Fulfillment: A fulfillment network with one central distribution node. Simpler to run and often more cost-effective than multi-node for brands under a certain volume; the right central location can reach most of the US within 2-day ground.; Learn more
Slotting: The process of determining the most appropriate storage location for products based on factors such as size, weight, demand, and accessibility to improve warehouse efficiency.
Small Parcel Shipping: A shipping method that involves sending packages or parcels weighing less than 150 pounds through carriers like FedEx, UPS, or USPS.; Learn more
Smart Warehouse: A warehouse that leverages automation technology and equipment to replace human labor in warehouse operations.; Learn more
Sourcing: The process of identifying and selecting suppliers for materials, goods, or services needed to produce or deliver a product.; Learn more
Split Delivery: A delivery method where an order is divided into multiple shipments or deliveries, which may be sent to different locations or on different dates.
Stacking: The process of placing goods on top of each other in a storage space to maximize vertical space utilization while minimizing the required floor space.
Staging: The process of preparing goods for shipment, including picking, packing, labeling, and staging them in a designated area for loading onto a truck or other transportation mode.
Staging Area: An area within a warehouse used for the temporary storage of goods before they are loaded onto a truck or moved to their final destination.
Standard Costing: Inventory valuation method where costs are predetermined based on standard rates for materials, labor, and overhead. Actual costs are then compared to these predetermined standards.; Learn more
Stock: The amount of goods or inventory on hand at any given time in a warehouse or store.
Stock-Keeping Unit (SKU): A unique identifier assigned to a specific product type, which is used to track inventory levels, sales, and other product-related data.; Learn more
Stockout: A state where a SKU reaches zero available-to-sell inventory. Stockouts cost revenue directly and can also surface downstream problems: demand forecasting error, supplier delay, or lead time underestimation.; Learn more
Storage Billing: A charge assessed to a customer for storing their goods in a warehouse or storage facility.
Storage Cost: The cost associated with storing goods in a warehouse, including rent, utilities, insurance, and other expenses.
Storage Location: A specific location within a warehouse designated for storing goods, often identified by a code or number.
Strap Loading: A loading method that uses straps to secure goods to a pallet or container to prevent damage during transportation.
Subscription Box Fulfillment: Recurring fulfillment of curated or standardized boxes to subscribers on a monthly, quarterly, or other cadence. Combines kitting, inventory management, and parcel distribution with tight attention to on-time ship windows that match customer billing cycles.; Learn more
Supplier / Vendor: A person or company that provides their products or services to another business.
Supply Chain: The network of entities, people, and activities that are involved in the creation and delivery of products or services from the point of origin to the point of consumption. A supply chain includes all the activities involved in the transformation of raw materials into finished products, as well as the distribution and delivery of those products to customers.; Learn more
Supply Chain Management (SCM): The management of the flow of goods and services, involving the movement and storage of raw materials, work-in-progress inventory, and finished goods from the point of origin to the point of consumption. SCM involves the coordination and integration of various activities such as sourcing, procurement, production, inventory management, transportation, and logistics.; Learn more
Supply Warehouse: A type of warehouse that is used to store raw materials, work-in-progress inventory, and finished goods.; Learn more
Sustainable Disposal: The process of responsibly discarding waste materials in a way that minimizes environmental impact, often through methods like recycling or composting.

T

Tally: A system of counting or keeping track of inventory.
Tariff: A tax on goods and services that are imported into a country.; Learn more
Tertiary Packaging: Tertiary packaging refers to the packaging used for the bulk handling, storage, and transportation of multiple units of secondary packaged items. Its primary purpose is to protect the products during long-distance transit, storage, and distribution within the supply chain.; Learn more
Third-Party Warehousing: A type of warehousing in which a company outsources its warehousing and storage needs to a third-party logistics provider (3PL). Third-party warehousing can help companies reduce costs and improve operational efficiency by leveraging the expertise of logistics professionals.; Learn more
Total Average Inventory: The average value of all the inventory held by a company over a certain period of time. This includes both raw materials and finished goods inventory.
Total Quality Management (TQM): Structured approach to organizational management that improves quality.
Traceability: The ability to track and trace products or materials as they move through the supply chain.
Track-Bys: A system for tracking inventory that involves assigning a unique identifier or barcode to each item. Track-by systems can help companies improve inventory accuracy and visibility.
Trade Show Sampling: Product sampling tied to a specific trade show or industry event: samples assembled, packaged, and shipped to the venue (or to attendees post-event) at precise quantities and timing. A common experiential marketing use case for CPG brands.; Learn more
Transaction: Any exchange of goods or services between two parties. Transactions can involve the exchange of money, products, or services.
Transloading: Logistics practice that involves transferring goods from one mode of transportation to another, typically from one type of vehicle to another.; Learn more
Transportation Management System (TMS): A software platform used to manage transportation operations and optimize the movement of goods through the supply chain.

U

Uniform Product Code (UPC): A standardized barcode system used to identify and track products in the supply chain.
Unique Parcel Identifier (UPI): A unique identifier assigned to each individual parcel or shipment. UPIs can be used to track shipments through the supply chain and facilitate data exchange between trading partners.
Unit: A single item or a group of items that are treated as a single entity for inventory or tracking purposes.
Unit Cost: The cost of producing or acquiring a single unit of a product or service. Unit cost is calculated by dividing the total cost of production or acquisition by the number of units produced or acquired.
Unit Load: A standardized grouping of items that is designed to be transported as a single unit.
Unit of Measure (UOM): A standard unit that is used to quantify a product, material or service. Examples of UOMs include kilograms, pounds, pieces, boxes, pallets, etc.
Unitization: The process of grouping individual items or products into a single unit or container for easier handling, storage and transportation.
Unloading: The process of removing goods or materials from a vehicle or container, and transferring them to a storage or processing facility.
UPC (Universal Product Code): A unique identifier code that is used to track and identify products in the supply chain. It is commonly used in retail and grocery stores for point of sale scanning.
UGC (User-Generated Content): Reviews, photos, videos, and social posts created by real customers about a product. Product sampling programs are designed to produce UGC at scale, which is why kitting precision and recipient tracking matter for the sampling ROI equation.; Learn more

V

Value Added Services: Additional services provided by a logistics provider or warehouse beyond basic storage and transportation, such as kitting, labeling, assembly, packaging, etc.; Learn more
Velocity: The rate at which products move through the supply chain from the time they are ordered until they are delivered to the customer.
Vendor: A supplier or seller of goods or services.
Vendor-Managed Inventory (VMI): A supply chain management strategy where the supplier manages the inventory levels of their customer to ensure that the right products are in the right place at the right time.
Visibility: The ability to track and monitor the movement of goods and materials through the supply chain in real-time.
Voice Picking: A picking method where workers wear a headset and receive spoken instructions from the WMS, confirming each pick aloud. Hands-free picking that reduces error rates versus paper or RF-scanner methods.; Learn more
Void Fill: Materials used to fill empty spaces or voids in packaging to protect the contents during shipping and handling.

W

Warehouse: A facility used for the storage and handling of goods and materials during the supply chain process.; Learn more
Warehousing: The process of storing and managing goods and materials in a warehouse.; Learn more
Warehouse Management System (WMS): A software application used to manage and optimize warehouse operations, including inventory management, order fulfillment, and shipping.; Learn more
Warehouse Occupancy Rate: Gauges the amount of space utilized in a warehouse compared to the total available storage area.
Warehouse Receipt: A document that provides proof of ownership of goods that are stored in a warehouse. It contains information about the quantity, type and condition of the goods, and is often used as collateral for loans or other financial transactions.; Learn more
Warehouse Transition: The structured process of moving an operation from one warehouse to another (or from one 3PL to another) without interrupting fulfillment. Covers data migration, inventory transfer, cutover planning, and go-live orchestration.; Learn more
Warehouse Utilization Rate: The degree in which a warehouse space is effectively used to store goods and manage inventory.
Wave Picking: A method of order picking in which orders are grouped into waves based on various criteria such as destination, delivery date or item priority, and then picked simultaneously to increase efficiency and productivity.; Learn more
Waybill: A legal document issued by a carrier that details the shipment contents, origin, destination, and other pertinent information required for transportation of goods.; Learn more
Weight Confirmation: The process of verifying the weight of a shipment, which is typically done through weighing scales or other measurement devices.
Weighted Average Cost: Inventory valuation method that is calculated by dividing the total cost of goods available for sale by the total number of units available for sale.; Learn more
Wet Sampling: Giving consumers a sample that they try immediately in-store.; Learn more
Wholesale: The sale of goods in large quantities to retailers, other businesses, or institutional customers at a discounted price.; Learn more
Work in Process (WIP): The goods that are currently being produced or assembled in a manufacturing or production environment, but have not yet been completed or sold.

Y

Yield: The percentage of usable output produced from a given amount of raw materials or inputs, often used to measure manufacturing efficiency.

Z

Zone: A defined area within a warehouse or distribution center used for storage or other purposes such as order picking, replenishment, or packing.
Zone Picking: A method of order picking where order pickers are assigned to specific zones within the warehouse and are responsible for picking items only within their designated zone.; Learn more
Zone Price: A pricing strategy where the cost of a product or service varies based on the geographical location of the customer, often used to account for differences in transportation or distribution costs.
Zone Skipping: A parcel strategy that moves aggregated shipments by LTL or FTL closer to their destination zones before injecting them into a parcel carrier's network, bypassing early-zone handling. Lowers per-package cost on high-volume outbound.
Zone-Batch Picking: A method of order picking where orders are grouped into batches based on their location in specific zones of a warehouse, and then picked simultaneously to increase efficiency and productivity.; Learn more

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