Our glossary covers the warehousing and fulfillment terms you should be comfortable with. Once you know them, you'll be ready to handle fulfillment like a boss!

Ambient: Basic storage that doesn't require air conditioning

Bin: This is the smallest available unit of space in a warehouse

Bonded: Secured storage where VAT and duty taxes are deferred until they leave the warehouse

Bundling: This is similar to kitting but simplified - for example, adding gift cards is not needed

Dangerous Goods Regulation (DGR): This type of storage has specific requirements to store dangerous goods based on IATA rules

Inbound services: These services are associated with delivering your goods to the warehouse

Kitting: Process in which individually separate but related items are grouped, packaged, and supplied together as one unit.

Outbound services: These services are associated with dispatching your goods out of the warehouse

Pallet: A flat structure, usually made of wood, that supports goods while they are being transported (for example, by a forklift)

Pick and pack: The act of picking an item and packing it for shipping

Refurbishment: Checking returned items and bringing them back to sellable condition

Relabeling: This can apply to products being shipped to different markets. For example, think of health products that require different labels based on the health regulations of a specific country.

Repacking: This can be part of refurbishment, or apply to repacking a unit or batch with damaged packaging.

Return Merchandise Authorization (RMA): This is a return that is coming back as a "convenience" return or because the product is defective.

Shrink wrapping: Covering an item loosely with plastic film around a product, where it shrinks once heat is applied

SKU: Stock Keeping Unit. This machine-readable barcode helps track the item for inventory purposes

SLA: Service Level Agreement. A commitment between the service provider (warehouse) and the customer

Temperature controlled: Storage that requires air conditioning


Additional Resources

Related Posts