Warehousing & Fulfillment

Warehousing Glossary

We get it, there are a lot of warehousing terms to cover. Here's a comprehensive guide on everything you need to know.
Warehousing Glossary

By Jules


June 7, 2018

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: This is a 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 a 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.

Shrinkwrapping: Covering an item loosely with the plastic film around a product, where it shrinks once the 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

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