3PL
Third-Party Logistics
An external provider that manages warehousing, fulfillment and transportation on behalf of a brand, so the brand can focus on product, marketing and growth.
Your Reference Guide To Supply Chain, Warehousing & Logistics
Every term you'll come across in supply chain, warehousing and logistics - explained clearly. No jargon. No fluff.
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Bonded Warehouse
Customs-supervised storage
A facility where imported goods can be stored without paying customs duty until they are cleared for the domestic market or re-exported.
Cross-Docking
Receive and ship without storing
A practice where inbound shipments are unloaded and directly loaded onto outbound vehicles with little or no storage in between, reducing handling and dwell time.
Dark Store
Store-format micro-warehouse
A retail-style facility closed to the public, used purely to fulfill online and quick-commerce orders for the surrounding catchment.
Multi-Client Facility
Shared warehouse footprint
A single warehouse where multiple brands operate under shared infrastructure, manpower and technology with strict inventory segregation.
Fulfillment Center
Order-ready warehouse
A facility designed for high-velocity pick, pack and ship of online orders, with layouts and processes optimized for SKU-level operations.
Pick & Pack
Order assembly process
The end-to-end process of selecting items from storage locations and packing them into shipment-ready cartons against an order.
Wave Picking
Batched picking strategy
Grouping orders into 'waves' that are picked together to balance workload, vehicle cut-offs and SLA windows.
Order Cut-off
Daily SLA boundary
The latest time an order can be received and still be picked, packed and dispatched on the same day.
SLA
Service Level Agreement
A measurable commitment between a 3PL and a brand on parameters like dispatch time, delivery time, accuracy and availability.
Omnichannel Fulfillment
One inventory, all channels
A model where a single pool of inventory serves D2C, marketplace, retail and quick-commerce orders from the same facility.
Kitting & Bundling
Value-added assembly
Combining multiple SKUs into a single sellable unit - for promos, subscription boxes or marketplace combos - before shipping.
FTL
Full Truck Load
A movement where a single shipper books an entire vehicle, ideal for high-volume, time-sensitive lanes.
LTL
Less-than-Truck Load
Consolidated transport where multiple shippers share vehicle space, optimizing cost for smaller shipments.
Last Mile
Final leg to consumer
The final stretch of delivery from a local hub or store to the end customer's address - usually the costliest and most service-sensitive leg.
Mid Mile
Hub-to-hub movement
Inter-city or hub-to-hub freight movement that connects origin warehouses to delivery hubs.
Hub & Spoke
Network design model
A logistics network where shipments flow through central hubs before being distributed to smaller spoke locations for delivery.
TAT
Turn Around Time
The total time taken to complete a defined cycle - order to dispatch, pickup to delivery, or return to refund.
WMS
Warehouse Management System
Software that controls and tracks every movement inside a warehouse - receiving, putaway, picking, packing, dispatch and inventory accuracy.
TMS
Transportation Management System
Software that plans, executes and tracks freight movement across vehicles, lanes, carriers and SLAs.
OMS
Order Management System
Software that orchestrates orders across channels, allocates them to the best fulfillment node and tracks them through delivery.
API Integration
System-to-system connection
A real-time link between a brand's storefront, ERP or marketplace and the 3PL's WMS/TMS for orders, inventory and tracking sync.
EDI
Electronic Data Interchange
A standardized format for exchanging documents like purchase orders, ASNs and invoices between enterprise systems.
Control Tower
Unified visibility layer
A centralized dashboard that gives end-to-end visibility across orders, inventory, transport and exceptions in real time.
SKU
Stock Keeping Unit
A unique identifier for each distinct product variant - by size, color, pack or configuration - used for tracking and reporting.
FEFO
First Expiry, First Out
An inventory rotation rule where items closest to their expiry date are picked first - critical for FMCG, pharma and food.
FIFO
First In, First Out
An inventory rotation rule where the oldest stock is dispatched first, minimizing aging and obsolescence.
Safety Stock
Buffer inventory
Extra inventory held to absorb demand spikes, supplier delays or forecast errors without stocking out.
Inventory Accuracy
System vs physical match
The percentage match between inventory recorded in the WMS and actual physical stock on the shelf - a core warehouse KPI.
Cycle Count
Rolling stock audit
A continuous, sample-based stock-counting method that replaces full annual inventory shutdowns.
ABC Analysis
Velocity-based classification
Segmenting SKUs into A, B and C classes by sales velocity or value, to drive slotting, replenishment and counting strategy.
Q-Commerce
Quick Commerce
A fulfillment model promising delivery in minutes - typically 10–30 - powered by hyperlocal dark stores and dense rider networks.
Micro-Fulfillment
Small, dense, fast
Compact urban facilities of 2,000–10,000 sq ft optimized for ultra-fast pick and pack of high-velocity SKUs.
Catchment
Service radius of a store
The geographic area a dark store or hub can serve within its promised delivery time, usually 1.5–3 km.
Rider Allocation
Order-to-rider matching
Algorithmic assignment of incoming orders to available riders, balancing distance, batching and SLA risk.
Reverse Logistics
Goods flowing backward
The end-to-end process of moving products from the customer back to the warehouse for refund, refurb, restock or disposal.
RTO
Return To Origin
An order that fails delivery and is shipped back to the seller's warehouse - a major cost driver in COD-heavy ecommerce.
QC Grading
Returns quality check
A structured inspection of returned items to grade them as resellable, refurbishable or scrap - protecting catalog quality.
Refurbishment
Return-to-shelf restoration
Cleaning, repackaging or minor repair of returned units so they can be put back into sellable inventory.
On-Time Dispatch
Order shipped within SLA
Percentage of orders dispatched within the agreed cut-off - the upstream KPI that drives on-time delivery.
Fill Rate
Order completeness
Percentage of ordered units that were actually shipped against demand - measures stock availability and allocation.
Dock-to-Stock
Inbound speed
The time taken from a vehicle arriving at the dock to the goods being available as sellable stock in the WMS.
Peak Readiness
Sale-event preparedness
The set of capacity, manpower, slotting and tech actions taken to handle 5–10x volume during sale events without breaking SLA.
Slotting
Where each SKU sits
The discipline of assigning the right storage location to each SKU based on velocity, size and pick path to maximize productivity.
GST E-Way Bill
Goods movement document
A government-mandated electronic document required for inter-state movement of goods above a defined value threshold in India.
ASN
Advance Shipping Notice
A pre-arrival document sent by the supplier listing exactly what's coming, enabling faster and more accurate inbound processing.
POD
Proof of Delivery
Signed or digital confirmation that a shipment was delivered to the consignee - used for billing, disputes and SLA closure.
Cost-to-Serve
True per-order cost
The fully-loaded cost of fulfilling one order - storage, labor, packing, freight, returns - used to price and to optimize.
Know the Terms. Now See Them in Action
AAJ runs supply chains that apply every concept in this glossary - at scale, across India, every day.