Advanced Shipping Notice (ASN): document that alerts the 3PL to an incoming shipment. It will usually be completed by the retailer in the 3PLs portal.

Australian Pallet: an Australian pallet is 1165mm x 1165mm. Most warehouses will require them to be under 1.4m in height to enable them to be racked.

Bonded Warehouse: A bonded warehouse is a facility that is authorised by the government to store imported goods before they are cleared by customs and duties are paid. In a bonded warehouse, the goods are held "in bond," meaning they are under the custody of customs authorities and are not subject to import duties or taxes until they are released for distribution or export. Bonded warehouses provide secure storage for imported goods, allowing businesses to defer customs duties and taxes until the goods are ready to be sold or distributed in the domestic market.

Bulk Stock Location: once a pick face has been filled, all remaining stock will usually be placed in a bulk stock location. These are usually pallet locations in a quieter part of the warehouse or up higher in the racks.

Carrier: the freight company that is transporting the goods

CHEP: a provider of pallets for hire

Cold Chain Logistics: The specialised handling and transportation of temperature-sensitive goods, such as perishable food items or pharmaceuticals, in controlled temperature environments.

Cross-Docking: A logistics practice where incoming goods from suppliers are unloaded from inbound vehicles and immediately loaded onto outbound vehicles for delivery, reducing storage time in the warehouse.

Cubic Weight: Often freight is charged at the greater of dead weight or cubic weight. The cube of an object is the height in metres multiplied by the length and width of the product. To get the cubic weight, you multiply this by a factor used by the carrier. For domestic parcels Australia Post uses 250. Therefore, the cubic weight of an item is the H(m) x (L(m) x W(m) x 250.

Custom Pack: a custom pack is when a retailer requires something specific to be done when their orders are being packed. This might be as simple as a flyer through to spraying perfume into the box or wrapping an order with a ribbon. As custom packing slows down the 3PL process, not all 3PLs will provide it and it often only makes financial sense at higher volumes due to the incremental cost to set up.

Customs Clearance: The process of complying with customs regulations and obtaining the necessary documentation and approvals for importing or exporting goods across international borders.

eCommerce Platform/Shopping Cart: the ecommerce solution that you use to receive orders. Common eCommerce platforms are Shopify, Magento and WooCommerce. Your 3PL should integrate directly with these platforms to eliminate the need for manually processing of orders.

Deadweight: Often freight is charged at the greater of dead weight or cubic weight. The dead weight of an item is simply what it weighs when placed on a scale.

Dropshipping: A retail fulfillment method where the 3PL provider ships products directly to customers on behalf of the retailer, eliminating the need for the retailer to store inventory.

EDI (Electronic Data Interchange): a way of sending purchases and invoices between companies. Often used by larger retailers.

Freight Audit and Payment: The process of reviewing and validating carrier invoices for accuracy, resolving discrepancies, and managing the payment of freight charges to carriers.

Freight Consolidation: The practice of combining multiple shipments from different sources into a single shipment to achieve cost savings and optimize transportation efficiency.

Item Master: Is a list of all of your SKUs with weights, dimensions, barcodes and is used by the 3PL to create your products in their warehouse management system (WMS)

Key Performance Indicators (KPIs): Quantifiable metrics used to evaluate the performance and effectiveness of logistics operations, such as on-time delivery, order accuracy, inventory turnover, and customer satisfaction.

Kitting: is when the 3PL creates a product (bundle) from individual products prior to them being ordered. If a group of products are regularly ordered together, it is often more cost-effective to 'kit' them together than to pay for individual picks each time they are ordered. For example, the warehouse may create a gift set using 4 individual items. This gift set would then become a product available for order and instead of paying for 4 picks when it is ordered it only requires 1. Most kitting work is charged at an hourly rate until an average time can be established.

Last-Mile Delivery: The final stage of the delivery process, where goods are transported from a distribution center or warehouse to the end customer's location.

Lead Time: The time it takes for goods to move from the point of origin to the point of destination, including processing, transportation, and delivery time.

LCL (Less than Container Load): Refers to a delivery that is smaller than a container i.e. pallet

LOSCAM: a provider of pallets for hire

Oversize pallet: are when the pallet is greater than 1165mm x 1165mm x 1.4m high. They are often unable to be placed in standard racking and so the warehouse stores them on the ground. As a result, not all warehouses are able to store oversized pallets.

Pickface: this is the location from where the warehouse pickers will actually pick the stock. The warehouse will usually store enough stock at the pickface to avoid having to regular replenish from bulk stock locations.

Pick-Pack-Ship: The sequential process of selecting items from inventory (picking), preparing them for shipment (packing), and arranging for their transportation (shipping).

Reverse Logistics: The process of managing the return and disposal of products, including handling customer returns, recycling, refurbishing, or disposing of goods in an environmentally friendly manner.

Service Level Agreement (SLA): A contractual agreement that defines the expected service levels, performance metrics, and responsibilities of the 3PL provider.

SKU (Stock Keeping Unit): is a unique product with a unique barcode. A brown dress is not a SKU however a brown dress in size 5 is as it is the base level of the product.

Supply Chain: The network of organisations, activities, resources, and technologies involved in the production, distribution, and delivery of goods from suppliers to customers.

Transport Management System (TMS): A TMS helps businesses streamline processes, reduce costs, improve visibility, and enhance overall transportation efficiency. It may include features such as route planning, carrier selection, freight optimisation, shipment tracking, freight payment, and performance analytics.

VAS (Value Added Service): simply refers to any service the 3PL provides over and above standard pick/pack. Kitting is an example of VAS.

Warehouse Management System (WMS): This is the software that 3PLs use to manage their warehouse. A WMS typically includes:

1. Inventory Management: Tracking and monitoring the movement, storage, and availability of inventory within the warehouse, including receiving, put-away, picking, and shipping.
2. Order Management: Managing customer orders, order prioritisation, order fulfillment, and order picking to ensure accurate and timely order processing.
3. Warehouse Layout Optimisation: Designing and optimising the layout of the warehouse, including bin and location management, to maximise storage capacity and minimise travel distances.
4. Labour Management: Planning and scheduling of warehouse personnel, assigning tasks, tracking productivity, and monitoring labour performance to optimise workforce utilisation.
5. Barcode/RFID Scanning: Utilising barcode or RFID technology to automate data capture processes, such as receiving, put-away, picking, and shipping, for improved accuracy and efficiency.
6. Warehouse Performance Analytics: Collecting and analysing data related to warehouse operations, productivity, and performance metrics to identify areas for improvement and make data-driven decisions.
7. Integration Capabilities: Integrating with other systems such as Enterprise Resource Planning (ERP) systems, Transportation Management Systems (TMS), or Electronic Data Interchange (EDI) for seamless data exchange and end-to-end visibility across the supply chain.

Warehousing: The process of storing goods in a designated facility, known as a warehouse, for a specified period.