3PL & Warehouse Glossary
A comprehensive glossary of third-party logistics, warehousing, fulfillment, inventory, and shipping terms used across modern supply chains.
A
3PL (Third-Party Logistics)
A service provider that manages warehousing, order fulfillment, shipping, and inventory operations for brands.
ASN (Advance Shipping Notice)
An electronic notice sent before delivery detailing shipment contents and quantities.
Accessorial Charges
Additional carrier fees for special services such as liftgate delivery or residential drop-off.
B
Batch Picking
A picking method where multiple orders are picked together to reduce warehouse travel time.
Bill of Lading (BOL)
A legal document defining shipment contents and transport responsibility.
Bonded Warehouse
A secured warehouse where imported goods are stored without paying duties until released.
C
Cross-Docking
The movement of goods directly from inbound to outbound shipping without long-term storage.
Cycle Counting
Ongoing inventory counts performed regularly instead of annual physical counts.
D
Dimensional Weight (DIM)
A pricing method based on package volume rather than actual weight.
Drop Shipping
Order fulfillment where products ship directly from supplier to customer.
F
Fulfillment Center
A warehouse facility designed for fast order processing and shipping.
FIFO (First In, First Out)
An inventory method where the oldest stock is shipped first.
I
Inventory Accuracy
The degree to which inventory records match actual physical stock.
Inventory Turnover
A metric showing how often inventory is sold and replaced during a period.
Incoterms
International commercial terms defining shipping responsibility between buyer and seller.
Inbound Logistics
The movement of goods from suppliers into a warehouse or fulfillment center.
K
Kitting
The process of bundling multiple items into a single SKU.
L
LTL (Less-Than-Truckload)
Freight shipments that share truck space with other shipments.
Last-Mile Delivery
The final stage of delivery from a local hub to the customer.
Lot Tracking
Tracking inventory by batch or production lot for traceability.
M
Multi-Client Warehouse
A warehouse shared by multiple brands or clients.
Material Handling
The movement, protection, and storage of goods within a warehouse.
O
OMS (Order Management System)
Software that manages orders across sales channels and fulfillment systems.
Order Fulfillment
The complete process of receiving, picking, packing, and shipping orders.
Omnichannel Fulfillment
Fulfilling orders across multiple sales channels using shared inventory.
P
Pick and Pack
The process of selecting products from inventory and packaging them for shipment.
Putaway
The process of storing received goods into assigned warehouse locations.
Proof of Delivery (POD)
Confirmation that a shipment was successfully delivered.
R
Reverse Logistics
The handling of returned goods back through the supply chain.
Replenishment
The movement of inventory from reserve storage to picking locations.
Receiving
The process of accepting inbound inventory into a warehouse.
S
SKU (Stock Keeping Unit)
A unique identifier used to track individual products.
Slotting
Optimizing product placement in a warehouse to improve picking efficiency.
Safety Stock
Extra inventory kept to prevent stockouts.
Service Level Agreement (SLA)
A contract defining fulfillment performance expectations.
T
Turnaround Time
The total time required to process and ship an order.
Transportation Management System (TMS)
Software used to plan, execute, and optimize shipping operations.
W
Warehouse Management System (WMS)
Software that controls warehouse inventory, picking, packing, and shipping.
Wave Picking
A picking strategy where orders are grouped and released in waves.
Warehouse Slotting
The strategic placement of products within a warehouse.
Warehouse Execution System (WES)
A system that orchestrates warehouse workflows between WMS and automation.