Fulfilment Glossary
Use our fulfilment glossary to learn more about industry terms, acronyms and methods from our fulfilment experts.
B2B Fulfilment
B2B Fulfilment refers to "Business to Business" fulfilment. This is a process where a company fulfils orders to other businesses rather than individual consumers.
Batch Picking
Batch picking is a warehouse picking method where similar orders are grouped so they can be picked at the same time. Instead of picking one order, completing it, and moving on to the next, your warehouse team collects all items that appear across multiple orders in one run.
Bill of Lading (BOL)
The Bill of Lading (BOL) is a legal document issued by a carrier to a shipper.
Bundling
Bundling is when a business puts together a few products to sell as a single package.
Cart Abandonment Rate
Cart abandonment rate represents the percentage of online shoppers who add items to their cart but leave the website before completing the purchase.
Checkout Process
The checkout process is the final step in online shopping, where customers complete their purchases.
Churn
Churn is when customers stop using a company’s products or services. High churn rates can be a sign that something needs to change to keep customers happy and loyal.
Cluster Picking
Cluster picking is a warehouse picking method where one picker collects items for several orders at the same time.
Compound Annual Growth
Compound Annual Growth shows how much something grows each year on average, over a set period, taking into account the effect of compounding.
Consignment stock is a stock management model where you hold goods supplied by a third party but don’t own them until they sell.
Courier Service
A courier service is a type of professional delivery service that ensures the quick, secure, and efficient transportation of items from one location to another.
Cross Docking
Cross docking is a logistics process where products received from a supplier or manufacturing plant are distributed directly to a customer or retail chain with minimal to no handling or storage time. It involves unloading items from an incoming lorry or railway wagon and loading these items directly into outbound lorries, trailers, or railway wagons, with no storage in between.
Customer Acquisition Cost (CAC)
Customer Acquisition Cost (CAC) is how much it costs a business to gain a new customer. It includes all spending on marketing, sales, advertising, and any other costs directly linked to getting that customer to buy.
Customer Relationship Management (CRM)
Customer Relationship Management (CRM) is a strategy and technology used by businesses to manage and improve their interactions with current and potential customers. It involves using data analysis about customers' history with a company to improve business relationships, specifically focusing on customer retention and ultimately driving sales growth.
Delivered at Place (DAP) shipping is when the seller delivers the goods to a specified place, but the buyer handles the import duties.
DDP, or Delivery Duty Paid Shipping, is where the seller takes on all the shipping responsibilities and costs.
Demand Forecasting
Demand forecasting is predicting future customer demand for products or services.
Digital Supply Chain
A digital supply chain integrates digital technology into all areas of supply chain operations, from sourcing materials to delivering products to the customer.
Direct to Retail
Direct to Retail refers to the business model where manufacturers or producers sell their products directly to retail stores.
Direct-to-Consumer (D2C)
Direct-to-Consumer, often shortened to D2C, is a business model where companies sell products directly to customers.
Discrete Picking
Discrete packing is a method where one warehouse operative completes one order from start to finish. They pick every item for that order, move straight to packing, add any inserts or extras, and send it on its way.
Distribution Center
A Distribution Centre is a dedicated space where goods are dispatched to the final customers or retail outlets.
Dropshipping
Dropshipping is a retail method where a store doesn't keep the products it sells in stock.
Ecommerce
Ecommerce, short for electronic commerce, refers to the buying and selling of goods or services using the internet and the transfer of money and data to execute these transactions
Ecommerce Analysis
Ecommerce analysis involves gathering, analysing, and interpreting data types and metrics to gain insights into your online store's performance.
eCommerce Fulfilment Services (EFS)
eCommerce Fulfilment Services (EFS) are services that help online businesses manage and send out orders to customers. EFS takes care of storing products, packing orders, and shipping them out.
Ecommerce Platform
An ecommerce platform is a software tool that allows businesses to sell products and services online.
First In, First Out (FIFO)
First In, First Out (FIFO) is a stock management method where the oldest stock (the first in) is used or sold first (the first out).
First Mile Delivery
First mile delivery refers to the initial stage of the delivery process, where the items are collected from the seller and transported to the courier's warehouse or directly to the distribution centre.
Flat rate shipping is a fixed cost for shipping, regardless of the package’s weight or size.
Fourth-Party Logistics (4PL)
A fourth-party logistics provider, often shortened to 4PL, is a company that steps in to run and coordinate your entire supply chain.
Free Carrier (FCA) Incoterms
Free Carrier (FCA) is an international trade term under the Incoterms rules. It means the seller delivers goods to a named location and hands them over to the carrier chosen by the buyer.
Freight Forwarding
Freight forwarding is the process of organising the shipment of goods from one place to another.
Fulfilment by Amazon (FBA)
Fulfilment by Amazon (FBA) is a service offered by the tech giant Amazon that allows businesses to outsource their warehousing and shipping processes to Amazon.
Fulfilment Centre
A fulfilment centre is a specialised facility used primarily by eCommerce businesses to process and fulfil customer orders.
Fulfilment Cost
Fulfilment cost refers to the total expenses associated with completing a customer order in an ecommerce business
Fulfilment Network
A fulfilment network refers to a system of warehouses and distribution centres that work together to store, pack, and ship products to customers.
Fulfilment Network Stock Keeping Unit
It’s a unique code used by Amazon to track and manage products stored and shipped through its fulfilment centres.
Fulfilment Partner
A fulfilment partner refers to a third-party company that handles the storage, picking, packing, and shipping of products on behalf of another business
Gross Margin
Gross margin shows how much money a business keeps after covering the cost of producing goods or services. It’s the difference between sales revenue and the cost of goods sold (COGS).
Gross Profit
Gross profit shows how much money a business makes from sales after subtracting the cost of goods sold (COGS). It’s a key figure that helps measure how profitable products or services are before other costs like rent, salaries, or marketing are considered.
Import One-Stop Shop (IOSS)
The Import One-Stop Shop (IOSS) is a scheme introduced by the European Union (EU) on 1 July 2021.
In-Stock Rate (IRS)
The in-stock rate (IRS) measures the percentage of time that products are available for sale and not out of stock
Indemnity Insurance
Indemnity insurance is a type of professional cover that protects businesses against financial losses resulting from claims of negligence, errors, or failures in their professional services.
Internet of Things (IoT)
The Internet of Things (IoT) involves integrating advanced sensors, software, and internet connectivity into logistics and supply chain operations.
Inventory Carrying Cost
Inventory carrying cost, also known as inventory holding cost, refers to the total cost that a business incurs to store and maintain its inventory over a certain period in fulfilment and logistics.
Inventory Management
Inventory management refers to the systematic approach to sourcing, storing, and selling inventory — both raw materials (components) and finished goods (products). Effective inventory management is important for ensuring that there is always enough stock on hand to meet customer demand without surplus.