ShipSquared

3PL Glossary

New to working with a 3PL? Here are the terms you will hear most, explained in plain words.

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3PL
Third-party logistics. A company that stores your inventory and packs and ships orders for you.
ASN
Advance shipping notice. A heads-up you send the warehouse listing what is in an inbound shipment and when it will arrive.
B2B fulfillment
Shipping orders to businesses, like retailers or wholesalers, usually in cases or pallets instead of single items.
Bill of lading
The shipping document for freight. It lists what is being shipped, where it is going, and who is carrying it.
Carrier
The company that moves your package or freight, such as UPS, FedEx, USPS, or DHL.
Cross-docking
Moving goods from an inbound truck straight to an outbound truck with little or no time in storage.
Cycle count
Counting a small part of inventory on a regular schedule instead of shutting down for one big count.
DDP
Delivered Duty Paid. The seller pays import duties and taxes, so the buyer pays nothing extra at delivery.
DDU
Delivered Duty Unpaid. The buyer pays import duties and taxes when the package arrives.
Dimensional weight
A pricing method where carriers charge by package size, not just actual weight. Big, light boxes can cost more to ship.
DTC
Direct to consumer. A brand that sells straight to shoppers, usually through its own online store.
FBA prep
Getting inventory ready for Amazon Fulfillment by Amazon, such as labeling, bundling, and bagging, before it ships to Amazon.
FIFO
First in, first out. The oldest stock ships first, which matters for products with dates.
Freight forwarder
A company that arranges international shipping and paperwork to move goods from a factory to a destination.
FTL
Full truckload. A shipment big enough to fill a whole truck, or one that pays for the whole truck.
Fulfillment center
A warehouse built to store products and ship customer orders quickly.
Kitting
Putting several items together into one ready-to-ship set, like a gift set or subscription box.
Landed cost
The full cost of getting a product to your warehouse, including the product, freight, duties, and fees.
Last mile
The final step of delivery, from the local carrier facility to the customer's door.
Lot tracking
Recording which batch or lot each unit came from, so you can trace products by batch.
LTL
Less than truckload. A freight shipment that shares truck space with other shippers.
Pallet
A flat wooden or plastic base used to stack and move goods with a forklift.
Pick and pack
Pulling the items for an order off the shelf and packing them in a box for shipping.
Put-away
Moving received inventory to its storage spot in the warehouse.
Rate shopping
Comparing carrier prices for each package to find the best option for cost and speed.
Receiving
Checking in an inbound shipment, counting it, and matching it to what was expected.
Returns processing
Handling returned items: receiving, inspecting, and restocking or setting them aside.
SKU
Stock keeping unit. A unique code for each product version, like a shirt in one size and color.
Split shipment
One order that ships in more than one package, often from different places or at different times.
WFS
Walmart Fulfillment Services. Walmart's program where Walmart stores and ships a seller's inventory.
WMS
Warehouse management system. Software that tracks inventory, orders, and warehouse tasks.
Zone skipping
Shipping a group of packages in bulk closer to customers before handing them to a carrier, to cut transit time and cost.
Shipping zone
A carrier's measure of distance between origin and destination. Higher zones usually mean higher cost and longer transit.