In the world of logistics and warehousing, there can be a wide variety of terminology used that can be confusing to understand.
Here at PackPro we thought we’d try and make your life easier, so we’ve put together a full list of all warehouse terminology. This way, you can keep up to date with all abbreviations and terminology when you’re feeling lost!
3PL –
Third-Party Logistics (3PL) providers offer outsourced logistics services, including warehousing, transportation, and distribution. They handle specific supply chain functions for their clients, helping them make operations more efficient and reduce costs without having to manage these logistics tasks internally.
4PL –
Fourth-Party Logistics (4PL) providers manage the entire supply chain for their clients. They act as a single point of contact, coordinating and integrating multiple 3PL services and other resources.
ABC Analysis –
Always Better Control Analysis: A method of categorising inventory items based on their importance, typically using criteria such as value or turnover rate.
APS –
Advanced Planning and Scheduling: A system used in manufacturing and supply chain management to improve production planning and scheduling processes.
ASN –
Advanced Shipping Notice: A notification sent by a supplier to a customer indicating the shipment details of an upcoming delivery.
ASIN –
Amazon Standard Identification Number: a 10-character unique code for your products assigned by Amazon
B2B –
Business-to-Business: Transactions or relationships between businesses, such as manufacturers, wholesalers, and retailers.
B2C –
Business-to-Consumer: Transactions or relationships between businesses and individual consumers.
BOM –
Bill of Materials: A list of the raw materials, components, and quantities needed to manufacture a product.
COGS –
Cost of Goods Sold: The direct costs attributable to the production of goods sold by a company, including materials, labour, and overhead.
DAM –
Distribution Automation Management: Systems and technologies used to automate and optimise distribution processes within a warehouse.
DC –
Distribution Centre: A facility used for receiving, storing, and distributing goods to customers or other locations.
DO –
Delivery Order: A document issued by a seller to authorise the delivery of goods to a buyer.
ETA –
Estimated time of Arrival – Used to indicate the expected time when a shipment or vehicle is predicted to reach its destination.
ETD –
Estimated Time of Departure – Refers to the anticipated time at which a vehicle, is expected to leave its origin or departure point.
EDI –
Electronic Data Interchange: The electronic exchange of business documents, such as purchase orders and invoices, between trading partners.
ERP –
Enterprise Resource Planning: Software that integrates core business processes, such as finance, HR, and inventory management, into a single system.
FBA –
Fulfilled by Amazon – A service offered by Amazon where third-party sellers can store their products in Amazon’s fulfilment centres.
FIFO –
First In, First Out: A method of inventory management where the oldest stock is used or sold first, ensuring items do not expire or become obsolete.
FTL –
Full Truckload: Shipping of goods that fill an entire truck trailer, often more cost-effective for large shipments.
GTIN –
Global Trade Item Number: A unique identifier used to identify trade items, including products, services, and assets.
JIT –
Just In Time: A strategy to minimise inventory costs by receiving goods only when they are needed in the production or sales process.
KPI –
Key Performance Indicator: Quantifiable measures used to evaluate the success of an organisation or specific activities within it.
LIFO –
Last In, First Out: An inventory management method where the most recently received items are used or sold first.
LTL –
Less Than Truckload: Shipping of relatively small freight that does not require the use of an entire trailer.
MHE –
Material Handling Equipment: Equipment used for moving, storing, and handling materials within a warehouse, such as forklifts and conveyors.
MOQ –
Minimum Order Quantity: The smallest quantity of a product that a supplier is willing to sell to a customer in a single order.
OOS –
Out of Stock: The condition where a product is not available for sale or distribution due to insufficient inventory.
OMS –
Order Management System: centralises order data and automates various tasks to improve efficiency, accuracy, and customer satisfaction.
OSHA –
Occupational Safety and Health Administration: A government agency that sets and enforces workplace safety and health regulations.
P&D –
Pick and Pack: The process of selecting items from inventory (picking) and preparing them for shipment (packing).
PO –
Purchase Order: A document issued by a buyer to a seller, indicating the types, quantities, and agreed prices for products or services.
PPE –
Personal Protective Equipment: Equipment worn to minimise exposure to hazards that may cause injuries or illnesses in the workplace.
QC –
Quality Control: Processes and procedures implemented to ensure that products meet specified standards and customer expectations.
RFID –
Radio-Frequency Identification: Technology that uses electromagnetic fields to automatically identify and track tags attached to objects, often used for inventory management.
RFQ –
Request for Quotation: A document used to solicit price quotes from potential suppliers for specific products or services.
RFI –
Request for Information: A document used to gather information from potential suppliers or vendors about their products, services, or capabilities.
ROI –
Return on Investment: A measure of the profitability of an investment relative to its cost, often used to evaluate the success of warehouse investments.
RTI –
Returnable Transport Items: Packaging materials or containers that can be reused multiple times for transporting goods.
SKU –
Stock Keeping Unit: A unique identifier for each distinct product and its variants in a warehouse.
SFP –
Seller Fulfilled Prime – is a program offered by Amazon that allows third-party sellers to offer Prime-eligible products directly from their own facilities, rather than relying on Amazon’s fulfilment centres.
SLA –
Service Level Agreement: A contract between a service provider and a customer that defines the level of service expected.
TMS –
Transportation Management System: Software used to plan, execute, and optimise the movement of goods and shipments.
UPC –
Universal Product Code: A barcode symbology widely used for tracking trade items in stores and warehouses.
VMI –
Vendor Managed Inventory: A supply chain model where the supplier is responsible for managing and replenishing the inventory at the customer’s location.
WMS –
Warehouse Management System: Software used to control and manage warehouse operations, including receiving, picking, packing, and shipping.
Are you looking for a 3PL partner for to help grow your business? PackPro are here to handle all your logistics needs. Contact us today!
