Fulfilment Glossary

Inventory replenishment refers to the process of restocking products or materials in a warehouse or retail location to maintain adequate inventory levels

Inventory turnover is a measure used by businesses to evaluate how effectively they manage and sell their stock.

Inventory visibility is the ability of a business to track and manage its stock levels in real time across all locations.

The Import One-Stop Shop (IOSS) is the European Union’s system designed to simplify VAT obligations for businesses selling imported goods to customers in the EU. An IOSS solution refers to the services or software products that assist sellers in complying with the requirements of the IOSS. This solution aims to streamline the VAT process for low-value goods not exceeding €150.

Just-In-Time (JIT) Inventory is a production strategy that aims to improve a business's ROI by reducing in-process inventory and its associated carrying costs.

Kitting is an essential process in fulfilment that involves gathering individual items together to create a ready-to-ship 'kit'.

KPIs, or Key Performance Indicators, are measurements businesses use to evaluate their success in meeting objectives.

Last mile delivery describes the final leg of a product's delivery process from the supplier to the consumer.

Line Haul refers to the movement of goods or freight from one place to another, typically over long distances.

A "marketplace" is a term used to describe a platform where transactions between buyers and sellers take place.

MOQ is the smallest number of products you can purchase in one order from a supplier.

Multi-channel fulfilment refers to the process of managing and delivering orders to customers from multiple sales channels.

Multi-channel retailing is a retail strategy where businesses sell their products and services through multiple sales channels, both online and offline.

The Net Performer Score (NPS) is a valuable metric utilised by businesses to gauge the loyalty of their customer base.

Omnichannel Retailing refers to a retail strategy that integrates different methods of shopping available to consumers. This could be through online channels such as from a mobile app, a website, telephone, or physically visiting a brick-and-mortar store.

Order accuracy is a metric representing the percentage of orders that are correctly fulfilled without any errors

Order batching is a process used in warehouse management and order fulfilment to increase efficiency. It involves grouping multiple orders into a single batch to be processed together. This method optimises picking and packing activities by reducing the time and effort needed to process each order individually.

The order cancellation rate is used to measure the percentage of orders cancelled by customers or the company before the completion of the transaction.

Order consolidation refers to the practice of combining multiple orders destined for the same location into a single shipment in the field of logistics and fulfilment.

Order cycle time refers to the total time taken from when an order is placed by a customer to when the product is delivered to them in the fulfilment industry.

Order fulfilment refers to the steps involved in receiving, processing, and delivering orders to end customers.

Order lead time is the total time taken from the moment a customer places an order until the time it is fully delivered to them.

Order processing time is the duration between when a customer places an order and when that order is dispatched from the warehouse or fulfilment centre

Order Shipment refers to the process of sending out goods or products to a customer after an order has been placed and processed.

Order tracking is a vital part of the online shopping experience. It allows customers to monitor the status of their purchase from the moment it is placed until it arrives at their doorstep. This process provides transparency and reassurance, enhancing customer satisfaction and trust in a company.

Out of Stock (OOS) is a term used in inventory management to describe a situation where items are unavailable for purchase due to a lack of inventory.

Overstocking is a term used in inventory management that refers to the situation where a business holds more stock than is needed to meet demand.

A payment gateway is a technology used in e-commerce to authorise credit card or direct payment processing for online businesses and online retailers

A perpetual inventory system (PIS) is a method of accounting for inventory. It records the sale or purchase of inventory immediately through the use of computerised point-of-sale systems and enterprise asset management software.

Pick and pack involves selecting (picking) the ordered items from their storage locations within a warehouse and then packing them into shipping containers or packages, ready for dispatch to the customer.

Product Bundles refer to a marketing strategy wherein several products are grouped together and sold as a single combined unit.

Real-time inventory management uses technology to monitor and update inventory levels as soon as changes happen. This could be through sales, returns, or receipt of new stock.

A returns policy is a set of guidelines that a retailer or supplier establishes to manage the returns process for previously purchased merchandise for a refund, replacement, or store credit.

Reverse logistics refers to the process of managing the return of goods from the point of consumption back to the point of origin or proper disposal. It encompasses activities such as product returns, recalls, repairs, refurbishment, recycling, and disposal.

Same-day delivery is a shipping option that guarantees that a package will be delivered on the same day that it is shipped.

Shipment tracking is the process of locating and monitoring the progress of cargo, packages, or parcels as they move from the sender to the recipient.

A shipping and delivery policy is a document that outlines important information regarding how a company handles the shipment and delivery of products to customers. This policy typically includes details on shipping methods, delivery timelines, costs, and procedures for handling lost or damaged items.

Shipping confirmation refers to the notification sent by a seller to inform a buyer that their order has been dispatched.

A shopping cart is a virtual tool that allows customers to select, store, and manage products they wish to purchase. This tool mimics the function of a physical shopping cart used in retail store

A stock audit is a process used by businesses to verify the quantity and value of physical stock within their premises.

A Stock Keeping Unit (SKU) is an identifier for each distinct product and service that can be purchased in business.