1PL to 5PL explained
The difference between first-, second-, third-, fourth- and fifth-party logistics: who owns what, who does the work, and when each model makes sense.
Resources
3PL and logistics glossary
Short definitions of common terms and abbreviations in third-party logistics, warehousing, fulfillment, transport, ecommerce and supply chain – each with a practical example. Use the filter or jump to a section.
In-depth explanations
Longer explanations of terms that often come up when you plan warehousing, imports and shipping.
Barcodes: EAN, GTIN and SSCC
Barcodes in logistics: EAN, GTIN, UPC and SSCC compared, what GS1 does, when QR and RFID are used, and which barcodes a 3PL needs on products and pallets.
Dimensional weight
Dimensional (volumetric) weight explained: how carriers calculate chargeable weight from dimensions, a worked example, and how packaging lowers shipping costs.
EUR pallets and pallet positions
EUR pallet size and common Nordic pallet types, what a pallet position is, how pallet storage is priced and how to prepare palletised goods for a 3PL.
FIFO, FEFO and LIFO
What FIFO, FEFO and LIFO mean in a warehouse, how they differ, which products need FEFO and expiry dates, and what a 3PL needs to apply the right rotation rule.
FTL, LTL, FCL, LCL and TEU
FTL vs LTL and FCL vs LCL explained: full and part truckloads, full and shared container loads, TEU, when each makes sense and what it means for 3PL receiving.
HS codes and commodity codes
What HS codes, EU commodity codes (CN and TARIC) and country of origin are, why correct classification matters, and which data your warehouse needs.
Incoterms
What Incoterms are, the eleven rules in Incoterms 2020, what EXW, FOB, CIF, DAP and DDP mean in practice, and why the chosen rule matters for delivery to a 3PL.
Landed cost
What landed cost is, which costs to include – freight, duty, fees, receiving – a worked example, and how it differs from COGS and logistics cost.
OTIF and delivery KPIs
What is OTIF? On Time In Full, OTD and DIFOT explained: how to calculate them, why definitions must be agreed, and how they fit with 3PL order accuracy.
Safety stock and reorder point
Safety stock, reorder point (ROP) and EOQ explained with simple formulas and examples, and how they affect stockouts and storage costs at a 3PL.
SKU and units of measure
What is a SKU? Stock keeping units explained: how a SKU differs from a barcode, units of measure, packaging levels and preparing SKU data for a 3PL.
EORI number
What an EORI number is, who needs one, where companies inside and outside the EU register, and how EORI relates to customs representation and a 3PL warehouse.
All terms A–Z by topic
Basics
3PL – Third-Party Logistics
An external logistics partner that handles warehousing, picking, packing, shipping, returns and similar work for another company. Example: an ecommerce company outsources its warehouse to a 3PL. See 3PL in Sweden and What is 3PL?
1PL – First-Party Logistics
The company runs its own logistics with its own resources. Example: own warehouse and own vehicles.
2PL – Second-Party Logistics
An external provider performs one specific logistics service, usually transport. Example: a haulier moves goods for the company.
4PL – Fourth-Party Logistics
An external party coordinates several logistics providers and often the whole logistics chain. Example: a 4PL coordinates warehouses, carriers and systems.
5PL – Fifth-Party Logistics
Data-driven, technology-led management of large logistics networks and provider ecosystems. Example: optimising several 3PL and transport networks with automation.
Logistics
Planning and controlling how products, information and resources move. Example: from supplier to end customer.
Supply chain
The whole chain from raw materials and manufacturing to warehousing, transport and the customer. Example: supplier → factory → warehouse → customer.
SCM – Supply Chain Management
Planning, controlling and optimising the entire supply chain. Example: planning purchasing, stock and transport together.
Fulfillment
The process from a received customer order to delivery. Example: order → pick → pack → ship → deliver.
Ecommerce fulfillment
Fulfillment designed for online orders and consumers. Example: handling webshop orders in a 3PL warehouse. See Ecommerce fulfillment in Sweden.
B2B – Business-to-Business
Sales and logistics between companies. Example: sending 20 cartons to a retailer. See B2B logistics.
B2C – Business-to-Consumer
Sales from a company directly to a private customer. Example: sending a parcel to a consumer.
D2C / DTC – Direct-to-Consumer
A brand sells directly to the end customer without a traditional retailer. Example: a brand selling through its own webshop.
Warehouse
WH – Warehouse
A physical site where goods are stored and handled. Example: a central warehouse.
DC – Distribution Center
A warehouse focused on distributing products onward. Example: a regional distribution centre.
FC – Fulfillment Center
A warehouse focused on fast order handling and deliveries to customers. Example: an ecommerce warehouse.
Inventory
Products or quantities held in stock. Example: 1,250 units in stock.
Stock
General term for inventory or stock balance. Example: stock level.
Stock level
The number of units in stock at a given moment. Example: 500 units on hand.
Inventory management
Planning and controlling stock levels. Example: optimising stock to reduce stockouts.
SKU – Stock Keeping Unit
A unique identifier for a specific product variant. Example: a black T-shirt in size M and in size L have different SKUs.
Item
A product or article handled in the system. Example: one SKU can represent one item.
Bin – bin location
A specific storage location, often for smaller items. Example: A-04-03.
Location – storage location
The place in the warehouse where an item is stored. Example: shelf B-12.
Slotting
Deciding the best storage location for each item based on, for example, pick frequency and size. Example: fast-moving items are placed near the packing station. See Picking strategies and slotting.
Storage
Keeping products in a warehouse. Example: often charged per pallet position or shelf location.
Pallet
A load carrier for larger quantities of goods. Example: a EUR pallet.
EUR pallet – Euro pallet
A standardised European pallet, normally 1,200 × 800 mm. Example: the most common pallet type in Europe.
Pallet position
A storage location sized for one pallet. Example: one position in a pallet rack.
Rack
Racking for storing pallets or goods. Example: high-bay pallet racking.
Shelf
A shelf location for smaller items. Example: small-item picking from shelves.
Tote
A box used for internal transport or sorting of items. Example: one tote per customer order.
WMS – Warehouse Management System
The system that controls locations, stock balances, receiving, picking, packing, stocktaking and dispatch. Example: the WMS shows where every SKU is. See Ongoing WMS.
Cross-docking
Goods are received and sent on with minimal or no storage. Example: a pallet goes from inbound to outbound the same day. See Cross-docking.
Cycle count
Continuous counting of parts of the warehouse rather than everything at once. Example: zone A is counted every Monday.
Stocktake
A full physical count of the warehouse. Example: the annual stocktake. See Stocktaking in a 3PL warehouse.
Inbound
Inbound
All goods arriving at the warehouse. Example: deliveries from suppliers.
Inbound logistics
Transport and handling of goods from supplier to warehouse. Example: supplier to 3PL.
Receiving
The process of taking in and checking incoming goods. Example: unloading and checking a delivery. See Goods receiving.
Goods receipt
Registering received goods in the system. Example: the WMS updates the stock balance.
ASN – Advance Shipping Notice
Information about an upcoming delivery sent before the goods arrive. Example: SKU, quantity, pallets, ETA. See API, EDI and ASN.
GRN – Goods Received Note
A document or record showing what was actually received. Example: the GRN is compared with the purchase order.
Dock – loading dock
The bay where trucks load or unload goods. Example: dock 4 for inbound.
Unloading
Taking incoming goods off a vehicle or container. Example: unloading 12 pallets. See Container unloading.
Putaway
Placing received goods in the right storage location. Example: putaway follows receiving.
Overdelivery
More units are delivered than ordered. Example: the PO says 100, 105 are received.
Short delivery
Fewer units are delivered than ordered. Example: the PO says 100, 95 are received.
Orders
Order
A customer order to be processed and shipped. Example: a webshop order.
SO – Sales Order
An order registered for sale to a customer. Example: a sales order sent from the ERP to the WMS.
Order line
One unique item line in an order. Example: 2 × T-shirt + 1 × hat = 2 order lines.
Order import
Transfer of orders from a webshop or ERP to the WMS. Example: an API import every five minutes.
Order allocation
Reserving stock for a specific order. Example: 2 units are reserved.
Order release
When an order is made available to warehouse staff for picking. Example: the order is released after payment approval.
Order status
Shows which step an order is in. Example: received, picking, packed, shipped. See Order statuses below.
Backorder
An order line waiting because there is no stock. Example: the item ships when it arrives.
Split order
One order is divided into several shipments. Example: two warehouses each ship part of the order.
Partial shipment
Only part of the order is shipped. Example: 2 of 3 order lines are shipped.
Order consolidation
Several parts or picks are brought together into one order before packing. Example: zone picks are combined at packing.
Picking and packing
Picking
Collecting items from storage locations for an order. Example: picking 3 SKUs. See Order picking and packing.
Pick list
A list of items and quantities to pick. Example: a digital pick list in a handheld scanner.
Pick location
The storage location an item is picked from. Example: A-01-02.
Picking route
The route through the warehouse that makes picking efficient. Example: the WMS creates the shortest route.
Single order picking
One customer order is picked at a time. Example: common for large orders.
Batch picking
Several orders are picked in the same round. Example: ten orders with the same SKU are picked together.
Wave picking
Orders are grouped and released in waves according to rules. Example: one wave per carrier departure.
Zone picking
The warehouse is divided into zones, with different pickers responsible for different areas. Example: zones A, B and C.
Pick & pack
Picking and packing as one connected service or process. Example: a common 3PL pricing unit.
Packing
Packing products for delivery. Example: carton, filling and label.
Packing station
The workstation where orders are packed and shipping documents created. Example: station 6.
Packing slip
A document listing the contents of a shipment. Example: placed inside the parcel.
Packaging
Material used to protect and ship goods. Example: carton, bag, filling.
Void fill
Material that fills empty space in a carton. Example: paper or air cushions.
Dims – dimensions
Length, width and height of a product or parcel. Example: 40 × 30 × 20 cm.
Outbound and transport
Outbound
All goods leaving the warehouse. Example: customer orders and B2B shipments.
Outbound logistics
The flow from warehouse to customer or recipient. Example: a picked order is handed to transport.
Shipping
The process of sending an order from the warehouse. Example: booking transport and creating a label.
Dispatch
When an order or shipment leaves the warehouse. Example: dispatch at 16:00.
Shipment
A physical delivery or transport unit linked to an order. Example: one order can have two shipments.
Consignment
Goods moved under one specific transport assignment. Example: one consignment with several packages.
Shipping label
A label with address, barcode, tracking number and carrier. Example: attached to the carton.
Manifest
A summary of shipments handed over to the carrier. Example: today's parcels for one carrier.
Carrier
A company that transports goods. Example: DHL, UPS, PostNord.
Freight
Transport of goods, often larger shipments. Example: pallet freight.
Freight forwarder
A company that organises transport on behalf of other companies. Example: booking sea and air freight.
Forwarder
Short for freight forwarder. Example: transport booked through a forwarder.
Courier
A carrier for parcels or express deliveries. Example: an express courier.
Parcel
An individual package shipment. Example: one parcel to a customer.
Shipment tracking
Following a shipment's status and position. Example: a tracking portal.
Tracking number
A unique number used to follow a shipment. Example: the number printed under the label barcode.
POD – Proof of Delivery
Confirmation that a delivery has been made. Example: a signature or GPS event.
ETA – Estimated Time of Arrival
The expected time goods or a vehicle will arrive. Example: ETA 14:30.
ETD – Estimated Time of Departure
The expected departure time. Example: ETD 09:00.
ATA – Actual Time of Arrival
The time the vehicle actually arrived. Example: ATA 14:47.
ATD – Actual Time of Departure
The time the vehicle actually departed. Example: ATD 09:12.
Transit time
The time between departure and arrival. Example: two working days.
Last mile
The final transport leg from terminal or distribution point to the end customer. Example: home delivery.
First mile
The first part of transport from the sender or supplier. Example: factory to terminal.
Linehaul
Transport between larger terminals or hubs. Example: an overnight route between two cities.
Hub
A central terminal where goods are consolidated and sorted. Example: parcels sorted at a hub.
FTL – Full Truckload
The whole truck is used for one customer or shipment. Example: a full trailer of pallets for one shipper.
LTL – Less Than Truckload
Goods use part of a truck and are co-loaded with others. Example: 4 pallets co-loaded.
PTL – Partial Truckload
Part of a truck, usually more than LTL but less than FTL. Example: 12 pallets.
FCL – Full Container Load
One shipper uses a whole container. Example: one 40-foot container.
LCL – Less than Container Load
Goods from several shippers share a container. Example: 3 m³ in a consolidated container.
TEU – Twenty-foot Equivalent Unit
Standard measure of container capacity. Example: a 40-foot container ≈ 2 TEU.
DIM weight – dimensional weight
Chargeable weight calculated from a parcel's volume. Example: a large, light carton may be charged on volumetric weight.
Actual weight
The measured real weight of a parcel. Example: 2.4 kg.
Consignee
The party named as recipient of a shipment. Example: the customer's warehouse.
Consignor / shipper
The party sending the shipment. Example: the 3PL warehouse.
Inventory control
Inventory accuracy
How closely system stock matches physical reality. Example: 99.9% of stock balances correct.
Available stock
Stock that can be reserved for new orders. Example: on hand minus reserved.
Allocated stock
Stock reserved for existing orders. Example: 100 units allocated.
Reserved stock
Stock that cannot be promised to other orders. Example: reserved for a campaign or order.
On hand
The quantity physically in the warehouse. Example: 1,200 units on hand.
ATP – Available to Promise
The quantity that can be promised to new customer orders, taking reservations and planned flows into account. Example: ATP = 750 units.
Safety stock
Extra stock held against uncertain demand or delays. Example: two weeks of safety stock.
Buffer stock
Extra stock that protects against variation. Example: similar to safety stock.
ROP – Reorder Point
The stock level at which a replenishment order should be created. Example: reorder when the balance reaches 200.
EOQ – Economic Order Quantity
A calculated optimal order quantity based on holding and ordering costs. Example: balancing purchasing and storage costs.
Stockout
An item is unavailable despite demand. Example: a customer order cannot be allocated.
OOS – Out of Stock
An item is not available for ordering. Example: the webshop shows "sold out".
Overstock
More stock than demand justifies. Example: ties up capital and storage space.
Dead stock
Goods in stock with no sales or planned use. Example: old seasonal items.
Slow-moving stock
Items with a low turnover rate. Example: one sale a month.
Fast-moving stock
Items with a high turnover rate. Example: high daily sales.
FIFO – First In, First Out
The oldest received stock is used first. Example: common for many consumer goods.
LIFO – Last In, First Out
The most recently received stock is used first. Example: less common in physical warehouse operations.
FEFO – First Expired, First Out
The item with the nearest expiry date is picked first. Example: food and cosmetics.
Expiry date
The date after which a product should not be used or sold according to requirements. Example: a batch expiring 2027-03-31.
Best before
A date indicating recommended quality – not always the same as a use-by date. Example: food products.
Traceability and identification
Batch
A group of items produced together. Example: batch 2408A. See Traceability.
Lot
A traceable group of products, often equivalent to a batch. Example: lot number on the label.
Lot number
A unique identifier for a lot. Example: LOT-2026-081.
Serial number
A unique number for one individual unit. Example: electronics with individual serial numbers.
Barcode
A machine-readable code for identification. Example: scanned during picking.
EAN – European Article Number
A common name for the product barcode within the GS1 system. Example: EAN-13 on a consumer product.
GTIN – Global Trade Item Number
A global identifier for trade items. Example: GTIN-13.
UPC – Universal Product Code
A common product code in North America. Example: UPC-A.
SSCC – Serial Shipping Container Code
A GS1 number for logistics units such as pallets or cartons. Example: SSCC on a pallet label.
GS1
The organisation that develops standards for barcodes, GTIN, SSCC and more. Example: GS1 standard for pallet labelling.
QR code – Quick Response code
A two-dimensional code with more data capacity than a traditional barcode. Example: a link or serial number in a QR code.
RFID – Radio Frequency Identification
Electronic identification using radio and tags. Example: automatic reading of pallet tags.
Returns and quality
Returns
Goods sent back by customers. Example: an ecommerce return. See Returns management.
Reverse logistics
The flow from the customer back to the warehouse, supplier, repair or recycling. Example: customer → returns centre.
RMA – Return Merchandise Authorization
An identifier or approval for a return. Example: RMA-12345.
Return inspection
Checking the condition and sellable status of a returned product. Example: opened or unused?
Restock
A returned item is put back into sellable stock. Example: the balance increases after an approved return.
Refurbishment
A product is repaired or restored before resale. Example: new packaging and a function test.
Disposal
A product is discarded when it cannot be sold or reused. Example: a damaged product is scrapped.
Quarantine
A separate stock status or location for goods that may not be sold before inspection. Example: a damaged batch is blocked.
QC – Quality Control
Operational checks that requirements are met. Example: checking quantities and damage.
QA – Quality Assurance
Systematic processes that prevent quality problems. Example: routines, audits and documentation.
Receiving inspection
Checking quantities, damage, item numbers, batches and so on at receiving. Example: inspection at goods-in.
Discrepancy
A difference between the expected and the actual outcome. Example: wrong quantity or wrong SKU.
Damage
Physical damage to a product or shipment. Example: a crushed carton.
Shortage
Fewer units than expected. Example: one item missing.
Over – overage
More units than expected. Example: one extra item in stock.
Mis-pick
The wrong SKU or quantity is picked. Example: blue size M instead of black size M.
Mis-ship – mis-shipment
The wrong order or item is sent to the customer. Example: customer A receives customer B's parcel.
Claim
A formal claim related to damage, loss or error. Example: transport damage reported to the carrier.
NCR – Non-Conformance Report
Documentation of a deviation from a requirement or process. Example: an NCR after repeated mis-picks.
KPIs
KPI – Key Performance Indicator
A measure of performance. Example: OTIF, pick accuracy, order cycle time. See SLAs and KPIs.
OTIF – On Time In Full
The share of orders delivered both on time and in the right quantity. Example: 98% OTIF.
OTD – On-Time Delivery
The share of deliveries arriving on time. Example: 97.5% OTD.
DIFOT – Delivery In Full, On Time
A variant of OTIF. Example: measures delivery service.
Order accuracy
The share of orders shipped with the right items and quantities. Example: 99.7%.
Picking accuracy
The share of picks that are correct. Example: 99.9%.
Pick accuracy
Same as picking accuracy: the share of correct picks. Example: 99.8% pick accuracy.
Pick rate
Picks, order lines or units per unit of time. Example: 120 order lines per hour.
Dock-to-stock time
The time from physical arrival until goods are put away and available. Example: 2.5 hours.
Order cycle time
The time from receiving an order until it is fully processed. Example: 55 minutes.
Order-to-ship time
The time from receiving an order until the shipment leaves the warehouse. Example: 3 hours.
UPH – Units Per Hour
Productivity measured as units handled per hour. Example: 180 UPH.
LPH – Lines Per Hour
Productivity measured as order lines per hour. Example: 90 LPH.
Inventory turnover
How often stock is turned over in a period. Example: eight times a year.
DOI – Days of Inventory
How many days of demand the current stock covers. Example: 45 days of inventory.
Contracts and costs
These terms describe common ways 3PL services are priced. They are general definitions, not Karlholm Logistics' price list – see 3PL pricing: what affects the cost.
SLA – Service Level Agreement
Agreed targets for service and performance. Example: orders received before an agreed cut-off ship the same day.
SOW – Statement of Work
A document describing work, responsibilities and scope. Example: which value-added services are included.
MSA – Master Service Agreement
The overarching commercial agreement between the parties. Example: rules on liability, prices and terms.
Rate card
A price list for 3PL services. Example: prices per pallet, pick, pack and return.
Storage fee
A charge for storage. Example: per pallet position per day or month.
Receiving fee
The cost of receiving and registering goods. Example: per pallet or per inbound order.
Pick fee
The cost of picking. Example: a first pick plus a charge per extra order line.
Pack fee
The cost of packing. Example: per order.
Handling fee
A general charge for physical handling. Example: extra manual handling.
Fulfillment fee
A combined charge for order handling. Example: pick and pack in one price.
Shipping fee
The charge for transport. Example: the carrier cost.
Return handling fee
The cost of receiving and processing a return. Example: per return.
Pallet storage
Storage cost based on pallet positions. Example: a rate per pallet per day.
Bin storage
Storage cost per bin, box or shelf location. Example: per bin per month.
Minimum monthly fee
The lowest monthly amount a 3PL charges. Example: a fixed minimum invoiced even in quiet months.
Surcharge
An extra charge on top of the base price. Example: a peak surcharge.
Fuel surcharge
A variable transport supplement linked to fuel prices. Example: a percentage added to freight.
Cost per order
The total cost of handling one order. Example: used to compare in-house and outsourced fulfillment.
Cost per pick
The cost of one pick or order line. Example: used when order lines vary a lot.
Cost per shipment
The total cost of one sent shipment. Example: handling plus freight.
COGS – Cost of Goods Sold
Direct costs of products sold. Example: product cost excluding certain indirect costs.
Landed cost
A product's total cost including purchase price, freight, duty, insurance and similar. Example: purchase price plus import costs.
Logistics cost
Total costs for warehousing, transport and handling. Example: 3PL fees + freight + returns.
Cost per unit
Cost allocated per product or handled unit. Example: logistics cost divided by units shipped.
Gross margin
Sales minus cost of goods sold, as a value or percentage. Example: used in profitability analysis.
Contribution margin
The contribution after relevant variable costs, depending on definition. Example: used for order profitability.
Customs, VAT and Incoterms
These are general definitions. Karlholm Logistics is a warehouse operator; customs representation, importer responsibilities and VAT are handled by your customs broker and advisers. See Importing goods from outside the EU.
Customs
The regulatory area covering import and export of goods. Example: importing from a country outside the EU.
Customs clearance
The process of declaring goods and clearing them through customs. Example: an import declaration.
Customs declaration
A formal declaration of goods to the customs authority. Example: commodity code, value, origin.
HS code – Harmonized System code
The international classification of goods for customs and trade. Example: heading 6109 covers certain T-shirts.
Commodity code
A more detailed customs classification, depending on jurisdiction. Example: the EU's Combined Nomenclature (CN) code.
COO – Country of Origin
The country where goods are considered to originate under the applicable rules. Example: made in Vietnam.
Duty – customs duty
A charge on imported goods. Example: a percentage of the customs value.
VAT – Value Added Tax
A tax on goods and services. Example: the standard VAT rate in Sweden is 25%.
EORI – Economic Operators Registration and Identification
The EU identification number for businesses in customs matters. Example: used in customs declarations.
IOSS – Import One-Stop Shop
An EU scheme for reporting VAT on certain distance sales of low-value imported goods. Example: ecommerce shipped from outside the EU.
Incoterms – International Commercial Terms
The International Chamber of Commerce's standard rules for dividing costs, risk and responsibility between buyer and seller. Example: EXW, FOB, CIF, DAP, DDP.
DDP – Delivered Duty Paid
An Incoterm under which the seller carries extensive responsibility to the destination, including import formalities under the rule. Example: the seller delivers to the buyer's address.
DAP – Delivered At Place
An Incoterm under which the seller delivers to a named place while the buyer normally handles import clearance. Example: delivery to the customer's warehouse.
EXW – Ex Works
An Incoterm under which the buyer takes on extensive responsibility from the seller's named place. Example: collection at the supplier.
FOB – Free On Board
A sea-freight Incoterm under which the seller delivers the goods on board the vessel at the agreed port. Example: FOB Shanghai.
CIF – Cost, Insurance and Freight
A sea-freight Incoterm under which the seller pays cost, insurance and freight to the destination port as defined in the rule. Example: CIF Gothenburg.
Systems and automation
ERP – Enterprise Resource Planning
A system for finance, purchasing, orders, inventory and other business processes. Example: SAP, Dynamics, NetSuite.
OMS – Order Management System
A system that orchestrates the order flow and order status. Example: the OMS sends orders to the 3PL.
IMS – Inventory Management System
A system focused on stock balances and inventory control. Example: may be separate from the WMS.
PIM – Product Information Management
A system for central product information. Example: names, texts, attributes and images.
CRM – Customer Relationship Management
A system for sales and customer relationships. Example: customer data and sales pipeline.
TMS – Transportation Management System
A system for transport booking, freight rates, tracking and optimisation. Example: chooses a carrier based on price and service.
Product master
Core data about items, such as SKU, name, weight, dimensions and barcode. Example: the item register is sent to the WMS. See Onboarding.
API – Application Programming Interface
A technical connection that lets systems communicate automatically. Example: webshop → API → WMS. See API and EDI integration.
EDI – Electronic Data Interchange
Standardised electronic exchange of business messages. Example: orders, ASNs and invoices.
Webhook
A message one system sends to another when an event occurs. Example: the WMS sends "shipped" status to the webshop.
Integration
A connection between two or more systems. Example: ERP integrated with WMS. See Integrations.
ERP integration
A connection between a business system and, for example, a WMS or 3PL. Example: orders and stock status are synchronised.
Carrier integration
A system connection between WMS/TMS and a carrier. Example: creating labels directly from the WMS.
Carrier API
An API connection to a carrier for booking, labels and tracking. Example: booking freight from the WMS.
WCS – Warehouse Control System
A system that controls physical warehouse automation and equipment. Example: conveyors and sorters.
WES – Warehouse Execution System
A system coordinating work between the WMS, people and automation. Example: prioritises the next task.
AS/RS – Automated Storage and Retrieval System
An automated system that stores and retrieves goods. Example: a shuttle or crane warehouse.
AMR – Autonomous Mobile Robot
A self-driving robot that navigates the warehouse dynamically. Example: moving totes between zones.
AGV – Automated Guided Vehicle
An automated vehicle that usually follows fixed or defined paths. Example: moving pallets between dock and storage.
Conveyor
A mechanical transport system for goods and parcels. Example: moving parcels to a sorter.
Sorter
Automatic equipment that sorts parcels or items. Example: sorting by carrier.
Goods-to-person
A system where goods are brought automatically to the operator. Example: cube-storage robots delivering bins.
Pick-to-light
Lights show where to pick and how many. Example: the light shows "3".
Put-to-light
Lights show which container or order an item should go into. Example: sorting a batch pick into orders.
Voice picking
Picking instructions are given through a headset. Example: the operator confirms by voice.
Planning
Lead time
The total time from start to finish of a defined process. Example: from purchase order to available stock.
Forecast
An estimate of future demand or volume. Example: next month's order volume.
Demand forecast
A forecast of future customer demand. Example: expected sales per SKU.
Demand planning
The process of planning stock and purchasing based on forecasts. Example: planning for Black Friday.
Capacity planning
Planning staff, space and equipment against expected volume. Example: the need for an extra shift.
Peak season
A period of unusually high order volume. Example: Black Friday and Christmas. See Preparing for Black Friday.
Seasonality
Recurring variation in demand over the year. Example: swimwear sells more in summer.
Volume forecast
A forecast of orders, units, lines, pallets or shipments. Example: 20,000 orders next week.
Item structure and value-added services
Unit
A single product. Example: one piece.
EA – Each
A common unit-of-measure code for a single unit. Example: EA = one piece.
Case
A pack containing several units. Example: 12 bottles per case.
Case pack
The number of units in a full carton. Example: case pack = 24.
Inner pack
A smaller pack inside a larger outer carton. Example: 6 units per inner pack.
Master carton
A larger carton containing several inner packs. Example: 4 inner packs per master carton.
UOM – Unit of Measure
The unit used to measure or handle items. Example: EA, KG, PAL, CTN.
BOM – Bill of Materials
A list of components in a product or kit. Example: a gift box containing three SKUs.
Kit
A product made up of several component items. Example: a starter kit with four products.
Kitting
Combining several items into a kit. Example: assembling a campaign box. See Value-added services.
Bundling
Several products sold together as one offer. Example: a 3-for-2 bundle.
Assembly
Putting products or components together. Example: assembling a display stand.
VAS – Value-Added Services
Extra logistics services beyond standard storage and fulfillment. Example: kitting, labelling, gift wrapping.
Ecommerce delivery
Same-day shipping
The order leaves the warehouse on the day it is received, if the conditions are met. Example: orders before the cut-off ship today.
Same-day delivery
The order is both shipped and delivered on the same day. Example: urban delivery.
Next-day delivery
Delivery takes place the next day under the terms of the service. Example: an express service.
Cut-off time
The latest time to qualify for a given service, such as same-day shipping. Example: cut-off at 14:00.
Delivery window
The time interval in which delivery is expected. Example: 17:00–22:00.
PUDO – Pick-Up / Drop-Off
A place where parcels can be collected or dropped off. Example: a parcel shop.
Service point
A staffed collection point for parcels. Example: a grocery shop acting as a parcel agent – very common in Sweden.
Locker – parcel locker
An automated box for collecting or returning parcels. Example: the customer opens it with a code.
Home delivery
Delivery directly to the customer's address. Example: evening delivery.
Failed delivery
The carrier could not deliver the shipment. Example: recipient not at home.
NDR – Non-Delivery Report
A report or status when delivery could not be completed. Example: wrong address or recipient missing.
Supply chain
PO – Purchase Order
An order from a buyer to a supplier. Example: PO 450123.
MOQ – Minimum Order Quantity
The smallest quantity a supplier accepts per order. Example: MOQ 500 units.
Procurement
The process of buying goods and services. Example: purchasing from a supplier.
Sourcing
Identifying, evaluating and choosing suppliers. Example: selecting a new manufacturer.
Supplier
A party that delivers goods or services. Example: a manufacturer or wholesaler.
Vendor
A selling party or supplier, often in system terminology. Example: the vendor master in an ERP.
Manufacturer
A company that produces the goods. Example: a factory.
Distributor
A company that buys, stocks and distributes products onward. Example: a regional distributor.
Wholesaler
Sells larger quantities to companies or retailers. Example: a B2B wholesaler.
Retailer
Sells products on to end customers. Example: a retail chain.
Bullwhip effect
Small changes in customer demand are amplified further back in the supply chain. Example: over-ordering at suppliers.
Order statuses
Received
The order or goods have been received in the system or process. Example: order status "received".
Pending
Waiting for the next action or processing. Example: pending allocation.
Processing
The order or case is being actively handled. Example: order in processing.
Allocated
Stock has been reserved for the order. Example: 100% allocated.
Released
The order has been released for operational handling. Example: released to picking.
Picked
All required picks are complete. Example: ready for packing.
Packed
The order is fully packed. Example: label created.
Ready to ship
The order is ready for collection by the carrier. Example: waiting in outbound staging.
Shipped
The shipment has left the warehouse or been handed to the carrier. Example: tracking is activated.
In transit
The shipment is in the transport network. Example: on its way to a terminal.
Out for delivery
The shipment is on its final delivery round. Example: the driver has the parcel.
Delivered
The shipment has been delivered to the recipient. Example: proof of delivery registered.
Cancelled
The order has been cancelled and will not be shipped. Example: the customer cancels.
Hold
The order is temporarily stopped pending action. Example: the address needs checking.
Exception
Something has deviated from the normal flow and needs handling. Example: a carrier label error.
Discuss your logistics setup
Tell us about your products, expected volumes, sales channels and current systems. We will go through which 3PL setup could fit – without obligation.
Or call +46 294 400 40 · info@karlholm-logistics.se · Monday–Friday 07:00–16:00 (Swedish time, CET/CEST)