Fulfillment - Definitions

Active

Products that are available for purchase.

Advance Shipping Notice (ASN)

This is similar to a PO, but it is usually sent electronically via EDI. ASNs contain slightly different shipping information than a PO and are only used to give an advance notice of an incoming shipment.

Available

The number of physical assets that have not yet been reserved for an order.

Back Orders

The orders that cannot be fulfilled due to insufficient inventory.

Bill of Lading (BOL)

A  legal document between the product shipper and the delivery carrier that details the type, quantity and destination of the product being shipped. It also serves as a receipt of shipment when products are delivered. A BOL typically has a carbon copy backing, and both the carrier driver and DC get a copy at delivery.

Carton

The box that products arrive in. Cartons typically contain many of 1 SKU with the size of the box varying depending on the size of the product and the quantity. Cartons are packed by the vendor.

Direct-to-Consumer (DTC)

The delivery of a package that is shipped directly to the consumer.

Dropship

When an online order is fulfilled by a third party that stocks and delivers the line items to the consumer's door.

Electronic Data Interchange (EDI)

A standardized format in which companies digitally send information from one system to another.

Freight

A method of shipping products in bulk or shipping oversized products. These shipments can be transported by truck, train, or container ship.

Fulfillment

The complete process of an eCommerce order being sent to the DC, getting picked and packed, and being shipped to consumers by a delivery service.

Full Truckload (FTL)

When a company fills or reserves an entire freight truck.

Incoming Shipment

A shipment that is scheduled to arrive at the DC. These shipments can come from vendors or as returns from customers. 

Inventory

A company/brand's products that are housed within the DC.

Kit

A SKU that contains a collection of two or more unique SKUs bundled together.

Kitting

The process of taking individual line items and repackaging them into one sellable, ready-to-ship unit.

Less-than-Truckload (LTL)

A quantity of items that does not require a full truckload.

Line Items

The different products that make up an order. An order can have multiple line items.

On Hand

The number of physical assets that are actually at the DC, including those that have been reserved for orders.

Order

The products and quantities a customer buys.

Pallet

A flat transport structure, typically a wooden portable frame, that contains stacked master cartons. Pallets are able to support goods in a stable fashion while being lifted by a forklift, pallet jack, front loader, jacking device, or an erect crane. Goods on a pallet are secured with strapping, stretch wrap, or shrink wrap for shipping and storage.

Pick and Pack

The picking of order items off the shelf and packing of said items so they are ready to be shipped to consumers.

Purchase Order (PO)

A document for the seller that details the items purchased by the buyer. POs generally include costs, SKUs, quantities, and delivery dates. Every PO has a unique identifying number associated with it that helps both the buyer and seller keep track of the shipment. POs are used for incoming orders.

Shipment

The physical incoming or outgoing shipment for an order. An order can have no shipment, one shipment, or multiple shipments.

Supplier

Any business that sends goods to ShipGenius' DC for storage and eventual delivery to consumers.

Warehouse Management System (WMS)

The software that helps run the DC.

Wholesale

A business-to-business (B2B) model were products are purchased and sold in bulk between businesses.