3PL Dictionary

A service enabling businesses to outsource logistics activities such as warehousing, picking, packing, and shipping, facilitating efficient order fulfillment.

Additional charges from carriers for services that are beyond normal pickup and delivery, such as inside delivery or liftgate service.

A notice sent by the shipper to the receiver ahead of time containing important details about the shipment, including what’s being sent, how much, and when it’s expected to arrive.

Transport of goods by aircraft, typically used for rapid delivery of high-priority shipments.

A storage area where items are kept at room temperature; not too hot or too cold, just the regular indoor temperature.

Transactions between businesses where products or services are exchanged from one business to another. For example, a 3PL will ship goods from a manufacturer to a wholesaler or retailer.

Transactions where individual customers purchase products or services directly from a business. In logistics, this could be a 3PL shipping orders directly to consumers.

Refers to the process of a transportation vehicle returning from the original destination point to the point of origin, primarily carrying cargo or freight, often planned to minimize empty mileage and maximize efficiency.

A status assigned to ordered products not currently in stock but promised to be shipped once available.

Barcoding is a system that assigns a unique barcode to each item. These barcodes allow for quick and easy identification of products, helping in tracking and managing inventory.

The process of fulfilling large numbers of orders simultaneously, commonly used in scenarios like crowdfunding where many items are shipped at campaign's end.

This term is used to describe large and heavy items that may require special handling due to their size or weight.

A legal document between a shipper and carrier that details the type, quantity, and destination of the goods being carried.

An extra secure storage facility where goods are kept until any required taxes or customs fees are paid, ensuring that the goods are stored safely until all necessary legal procedures are completed.

Large quantities of goods, such as grain, coal, or ore, that are loaded and transported in loose condition without individual packaging.

Occurs when small changes in consumer demand lead to amplified fluctuations in the supply chain, causing challenges in inventory management and production planning.

Packaging different items together as a single package deal, often used to offer customers a combination of products at a discounted price.

Goods or products that are transported by air, sea, or land logistics, especially in large quantities and for commercial purposes.

Insurance policy that provides coverage against all risks of physical loss or damage to freight during the shipment from any external cause during shipping, whether by land, sea, or air.

A company that handles the transportation of goods, such as USPS, UPS, and DHL.

A framework with wheels that supports a shipping container when it's being moved, facilitating easy transport over land.

An international shipping agreement where the seller pays the costs and freight to bring the merchandise to the port of destination.

Specialized facilities, like large refrigerators or freezers, designed for storing items that need to be kept at very low temperatures to maintain their quality and safety.

The process of sending goods from one business to another, involving various logistics and transportation methods to ensure the safe and timely delivery of products.

A shipment of goods that is sent to an agent or retailer who agrees to sell them. The sender retains ownership until the goods are sold.

Combining multiple shipments into one larger shipment to reduce shipping costs.

A facility where freight is loaded into or unloaded from containers.

The practice of unloading goods from an incoming shipping container or truck and then loading them in outbound trucks, shipping containers, or trailers to reduce storage time and speed up distribution.

Specific fulfillment services designed to handle the distribution of rewards to backers once a crowdfunding campaign concludes.

Service provided by 3PL companies to affix labels, including barcodes, SKU information, or specific manufacturer's or customized labels requested by customers, on products before shipping.

The process of handling all required legal and regulatory requirements, paying taxes or duties, and obtaining necessary approvals and inspections to import or export goods across international borders.

A centralized platform that enables merchants to manage orders, track inventory, and access essential services and reports in real-time.

An international shipping agreement where the seller takes on all the responsibilities, costs, and risks until the goods reach the buyer’s specified location.

Refers to Delivered Duty Paid shipping, where the seller is responsible for all costs and risks involved in delivering goods to a specified location.

Stands for Delivered Duty Unpaid, where the buyer is responsible for handling any import-related costs and risks associated with the delivery of the goods.

Inventory items that have never been sold or used by consumers, typically because they are outdated or have been replaced by newer inventory.

The movement of a transportation vehicle, such as a truck or train, without any cargo load.

Delivery management encompasses the processes and strategies used to ensure smooth and efficient delivery operations. This includes planning routes, coordinating schedules, and monitoring deliveries to meet customer expectations.

A delivery order is an official document that gives permission for goods to be released to the company or entity who is supposed to go pick up at the Port or Airport. It's a confirmation that the goods can be handed over.

A charge that comes into play when cargo (which can be any goods being transported) is held at a location, such as a port or terminal, for longer than the agreed-upon duration, acting as a penalty fee for occupying space too long.

The dim factor, or dimensional factor, is a number used to calculate the amount of space cargo takes up in a truck or storage area. It's determined by considering both the size and weight of the cargo. 20x20x20 = 8000 and then you divide by your dim factor i.e. 250 your dim weight equals 32 lbs so if your dim factor is lower, your dim weight will be higher.

A pricing technique used by shipping carriers that considers the volume of a package rather than just its weight to ensure that large, lightweight packages are charged appropriately.

The process where products go directly from the manufacturer or supplier to the end customer without passing through a middleman or holding facility, saving time and costs in the supply chain.

A business model where products are sold directly from the manufacturer or brand to the consumer, bypassing traditional retail channels.

Companies that sell their products directly to consumers through online platforms or specialized retail outlets, often bypassing traditional distribution channels.

A strategy where inventory is stored across multiple locations to reduce shipping times and costs by being closer to customers.

A document used to acknowledge the receipt of cargo at a loading dock.

Involves moving of containers from a port terminal to a warehouse or distribution center, representing the last leg of a cargo's journey to its destination.

Dropshipping is a business model where a retailer sells products to customers without actually stocking them. Instead, the products are shipped directly from the supplier to the customer. A 3PL company may ship goods for the original manufacturer, taking care of labeling and paperwork on their behalf.

Materials, like padding or bracing, used to secure and protect cargo during transportation to ensure that goods arrive at their destination in good condition.

The amount of time cargo sits in a transportation hub or warehouse, either awaiting processing or during a layover. Efficient management of dwell time is essential for a smooth supply chain.

Involves the processes of receiving, storing, packing, and shipping orders for products sold online, crucial for running an online retail business. This might also involve repackaging, labeling, and dropshipping.

A formula used in inventory management to find the optimal order quantity that minimizes the total cost of ordering and holding inventory.

Occur when the average cost per unit decreases as the volume of production or output increases, often seen in large-scale manufacturing operations.

The electronic exchange of business documents, such as orders and invoices, between trading partners in a standardized format, streamlining communication and reducing manual data entry.

A formula used by businesses to determine the optimal order quantity that minimizes the total cost of inventory management.

Special handling for shipments that require faster processing and delivery.

A service where products sold by third parties are stored, packed, and shipped by Amazon, using their fulfillment centers.

A method of selling on Amazon where the seller directly handles the storage, shipping, and customer service of their products.

A measure of how well a company meets customer demand in terms of product availability, reflecting the percentage of customer orders that are fulfilled completely.

An inventory management method where the first items added to the inventory are the first to be sold, ensuring that older stock is used first.

Charges a fixed fee regardless of the weight or size of the package, can be a cost-effective option for sending heavier or bulkier items.

A 4PL provider manages and optimizes an entire supply chain on behalf of a company, overseeing multiple 3PLs and other logistics partners.

The process of verifying freight bills to ensure the accuracy of the charges.

Acts as a liaison between businesses that have goods to ship and carriers that will transport them, negotiating agreements between the two parties and managing the entire shipping process from pickup to delivery.

Classification assigned to shipped goods based on density, stowability, handling, and liability that determine the tariffs and shipping rates.

The process of combining smaller shipments from multiple shippers into a full truckload to improve transportation efficiency and reduce costs.

An agent who organizes shipments for individuals or corporations to get goods from the manufacturer or producer to a market, customer, or final point of distribution.

Involves organizing and coordinating the transportation of goods on behalf of a shipper, including arranging shipping, customs clearance, and delivery.

Large shipments typically exceeding 150 pounds or dimensions greater than 30 inches in length, width, or height.

Finding out where a product is while it’s on its way, usually using a tracing number provided by the carrier.

Shipping a large enough quantity of goods to completely fill up a whole truck, usually a more efficient option for larger shipments.

The process of storing, picking, packing, and shipping a business's goods to the end customer.

A specialized facility where orders are received, processed, and prepared for shipment, critical for ecommerce operations.

A company that offers services such as inventory management, order processing, packing, picking, shipping, and returns management for ecommerce businesses.

Where home furnishings and related items like lamps and rugs are stored, which may require special equipment to handle without causing damage.

A point at which freight passes through from one territory to another.

The total weight of goods including their packaging and pallets or other containers.

Involves the transportation of goods over land, typically by truck or train, a common and cost-effective mode of transportation for domestic shipments.

A charge for the service of handling goods.

An international system used to classify products for customs and trade purposes, ensuring that goods are categorized consistently across borders.

Stands for hazardous materials, substances that, due to their chemical nature, pose a risk to health, safety, property, or the environment during transportation.

A system used in transportation in which all traffic moves along spokes connected to the hub at the center.

Refers to the transportation, storage, and delivery of goods coming into a business, focusing on purchasing and arranging the inbound movement of materials, parts, or finished inventory from suppliers to manufacturing or assembly plants, warehouses, or retail stores.

An additional charge associated with freight transportation that is not included in the contract freight rate.

International commercial terms published by the International Chamber of Commerce (ICC) that define the responsibilities of buyers and sellers for the delivery of goods under sales contracts.

A mutual agreement between transportation companies to handle shipments that are transferred from one company's network to another.

Using two or more different modes of transportation in carrying goods from origin to destination.

Moving freight by using two or more modes of transportation.

Items available for sale, stored by businesses before being sold to customers.

The process of overseeing the flow of items from manufacturer to warehouse to the point of sale, ensuring the right quantity of stock is maintained.

An inventory management system in which materials or products are produced or acquired only as demand requires.

A lot of goods purchased for resale at one price, without regard to the individual value of the various items.

Involves assembling individual items into a complete unit or package just before shipping, efficiently preparing customized orders.

The process of assembling individual items into a single packaged unit sold as a SKU, often used for bundling separate but related items.

Goods that are disassembled to reduce the cost of shipping.

Metrics used to measure the performance levels of various operations within a business.

Focuses on optimizing the productivity and performance of workers in a warehouse or distribution center, involving tasks like scheduling, training, and performance tracking.

Includes the total cost of a product, including its purchase price, shipping, customs duties, taxes, and other expenses associated with getting it to its final destination.

This term refers to the final day that a container can be stored at a facility (such as a port or terminal) without incurring additional charges such as demurrage or detention fees. After this day, the container must be moved to avoid extra costs, making efficient transportation and logistics management essential.

The final step of the delivery process where the package is delivered to the end customer, crucial for customer satisfaction.

Applying lean thinking principles to the logistics process to eliminate waste and improve efficiency.

An inventory management strategy where the last items placed in inventory are the first ones to be used or sold.

The process of unloading a container at a warehouse while the truck driver waits for it to be unloaded, cost-effective and time-efficient.

An online matching system that allows shippers to list loads they need shipped and for carriers to post their available trucks.

Shipping for cargo that does not require the full space of a truck. This is typically used for small to medium-sized shipments.

A manufacturing strategy where products are produced in anticipation of customer demand, allowing for quicker delivery once orders are placed.

A document listing the cargo, passengers, and crew of a ship, aircraft, or vehicle, for the use of customs and other officials.

A method where all goods carried on a ship are recorded, typically used in customs and logistics operations.

A person or business involved in the buying and selling of goods. In logistics, it often refers to retailers or distributors.

An efficient delivery system where a vehicle follows a specific route to collect or deliver goods from multiple locations in a single trip.

The smallest quantity of a product that a supplier is willing to sell, an important consideration for businesses when ordering from suppliers.

Occurs when the wrong item is picked for an order, leading to incorrect shipments and customer dissatisfaction.

A shipment consisting of various goods that are transported together.

The smallest amount of a product that a supplier is willing to sell.

Involves using multiple storage facilities in different locations to strategically position inventory for efficient distribution.

An agreement among the United States, Canada, and Mexico designed to remove tariff barriers between the three countries.

When items are placed one inside the other to save space during shipping.

The weight of a product excluding any packaging materials.

A specific point or location in a network, such as a warehouse or transportation hub.

A firm that offers the same services as an ocean carrier but does not own or operate a vessel.

A strategy that integrates multiple sales and distribution channels into one platform that takes from one inventory to provide customers with a seamless shopping experience.

A service that delivers an item at the time that it is required or requested by the customer.

Flexible warehousing solutions that allow businesses to use storage space on an as-needed basis, reducing long-term commitments.

The process of making a system as effective or functional as possible in logistics planning.

The sequence of steps from receiving an order to delivering the product to the customer.

Involves overseeing the entire process of receiving, processing, and fulfilling customer orders. This includes order entry, picking, packing, and shipping.

The process involved in the movement of material from a manufacturing plant to the end user.

The practice of using third-party service providers to handle operations that are traditionally performed in-house, such as transportation, warehousing, and fulfillment.

The action of wrapping or containerizing items before shipment to ensure safety and compliance with shipping regulations.

A document included with a shipment that lists all of the items included in the order, aiding in order verification.

A platform used for storing and transporting goods. Standard dimensions vary, supporting goods in a stable fashion while being handled by forklifts.

A warehousing strategy where goods are received on pallets and shipped out on pallets, streamlining the handling of goods within a warehouse.

The process of sending individual packages to customers. It’s commonly used for smaller, lighter items.

A warehouse process where items are picked from inventory and then packed into shipping containers or boxes for delivery, often used in order fulfillment for e-commerce.

A designated area in a warehouse where specific goods are stored and picked, often optimized to reduce travel time and improve picking efficiency.

The process of selecting and gathering products in a warehouse as part of fulfilling customer orders.

A document detailing the items and quantities that warehouse staff need to collect to fulfill one or more customer orders.

Additional fees that can be charged if a container is kept at the port for longer than the allowed period, often due to delays in picking up or moving goods out of the port.

A document used in logistics to confirm the receipt of goods by the customer.

The processes involved in ensuring that a product quality meets the required standards before shipment.

Restricting the movement of goods and allowing them to be stored temporarily, typically for regulatory compliance or sanitation checks.

Items that are temporarily set aside and not available for regular use or distribution, typically due to quality concerns.

Measures how frequently goods are returned to the supplier due to reasons such as defects, damages, or customer dissatisfaction.

The operation within a fulfillment center involving the acceptance and storage of incoming goods.

A formula used in inventory management to determine when it’s time to reorder a product to avoid running out of stock before the next order arrives.

Involves the processes and strategies used to efficiently manage the flow of goods from suppliers to retail stores and, ultimately, to the end customers.

A business that sells goods directly to consumers. They can operate in physical stores, online, or both.

Managing the return of goods from the customer back to the manufacturer or distributor, including processes like returns processing, refurbishment, and disposal.

The process of receiving returned items, inspecting them for quality, and determining their reusability or disposal.

Involves managing the return of goods from the customer back to the manufacturer or distributor. It includes processes like returns processing, refurbishment, and disposal.

The process of moving goods from one warehouse location to another, often due to factors like changing market demand or optimizing storage space.

The use of radio waves to read and capture information stored on a tag attached to an object.

Instructions provided by shippers to carriers on how to handle, route, and deliver shipments.

A unique two-to-four-letter code used to identify transportation companies.

A fulfillment model where the seller directly manages the storage, packing, and shipping of orders.

Designated areas by carriers that determine the shipping rates and delivery times based on the distance from a shipment's origin to its destination.

A unique identifier for each product based on attributes like brand, size, and color, which helps track inventory.

A document provided by the shipper to inform the freight forwarder of how shipments should be handled.

Organizing warehouse inventory in a manner that aligns with picking efficiency to optimize retrieval times.

Refers to sending out smaller packages, typically through courier services like FedEx, UPS, or the postal service, commonly used for individual consumer orders.

A single order that is delivered in multiple shipments, often due to different availability of the ordered products.

A method of inventory auditing where a small portion of the inventory is regularly counted instead of conducting a full inventory count, helping maintain accurate stock levels.

A unique code or number assigned to a specific product to track its inventory, aiding in identifying and managing individual items in a warehouse.

Charges incurred for storing goods in a warehouse, varying based on the amount of space used (e.g., pallet vs. bin storage).

The time it takes for goods to be delivered after an order is placed with a supplier, an important factor in inventory management and production planning.

Encompasses all stages involved in getting a product from being made to being delivered, including production, shipping, and delivery.

The application of processes and tools to ensure the optimal operation of a manufacturing and distribution supply chain, including effective logistics and inventory management.

An additional fee added to the usual cost of a service or product. In logistics, surcharges may be applied for fuel, peak season demand, oversized shipments, or other special handling requirements to cover additional costs incurred during transportation or delivery.

A fee charged for loading or unloading goods from the rear of a truck or trailer.

Refers to a company that provides outsourced logistics services to businesses, handling various aspects of the supply chain, such as transportation, warehousing, packaging, labeling, and distribution.

The amount of material or items passing through a system or process.

Software used to plan, optimize, and execute the transportation of goods, managing tasks like route planning, carrier selection, and shipment tracking. It also tracks costs, payables, and provides rate shopping for the best price and shipping time needed for the shipment.

A system that allows the monitoring and recording of the movement of goods throughout the supply chain, providing visibility and accountability for shipments.

The process of transferring a shipment from one mode of transportation to another, often used to combine the economic advantages of each mode, such as transferring from rail to truck.

A set of laws that provide legal rules and regulations governing commercial or business dealings and transactions.

The average cost incurred to produce a single unit of a product, including all expenses associated with production, such as materials, labor, and overhead.

A single unit that can be moved without being disassembled, such as a pallet or crate.

Additional services provided to enhance the value of a product or service, including services like customization, assembly, or special packaging.

Setting a price for services based on variable costs such as fuel prices in logistics.

Policies and guidelines established by buyers that vendors must follow to ensure goods are delivered properly and in accordance with agreed standards.

A supply chain management system where the supplier takes responsibility for monitoring and replenishing the customer’s inventory, ensuring that stock levels are maintained efficiently.

The ability to track goods in transit and know the status of orders and inventory at any given time.

A dedicated facility strategically designed for the efficient storage, handling, and management of goods within the supply chain. It serves as temporary housing of products before their distribution or sale, ensuring organized and systematic inventory control.

Involves the control and optimization of operations within a warehouse, including tasks like receiving, storing, picking, and shipping goods.

A receipt issued by a warehouse manager to an individual depositing items in the warehouse, stating the goods have been received.

The act of storing goods in a specialized facility, often customized to fit the type of product and special needs of the client.

A type of order picking method that organizes the picking of goods into waves, allowing for simultaneous picking of different orders within the same warehouse zone to increase efficiency.

A document issued by a carrier giving details and instructions relating to the shipment of a consignment of goods.

Special carrier delivery ensuring goods are delivered without damage or marking, typically involving furniture, fitness equipment, and may include inside delivery and assembly.

Shipping products in packaging that lacks specific branding from the carrier or fulfillment provider, often used to maintain brand consistency.

The process of transporting goods in large quantities from manufacturers or suppliers to retailers or other businesses that resell them.

Specialized software aiding businesses in tracking and managing items within a warehouse, facilitating efficient organization and shipping. It helps with organizing, managing, and retrieving items efficiently and shipping products.

A document prepared by the client that outlines the details of the goods expected to be received by a fulfillment center.

Short for cross-docking, a practice in the logistics of unloading materials from an incoming semi-truck and loading these materials directly into outbound trucks, trailers, or rail cars with little or no storage in between.

The process of managing the storage and movement of vehicles and trailers in the yard of a facility.

A software solution that helps in the efficient management of activities within a distribution center’s yard, such as trailer movement and parking.

The percentage of products that are manufactured correctly and without scraps.

An approach to minimize inventory in the supply chain, increasing efficiency and reducing costs.

Shipping goods to a farther destination from a point closer to the destination rather than from the origin point, bypassing certain carrier zones to reduce shipping costs.