Describes businesses that provide one or many of a variety of logistic-related services. Types of services may include public warehousing, contract warehousing, transportation management, distribution management, freight consolidation.
A 3PL provider may take over all receiving, storage, value added, shipping, and transportation responsibilities for a client and conduct them in the 3PL's warehouse using the 3PL's equipment and employees, or may manage one or all of these functions in the client's facility using the client's equipment, or any combination of the above.
A supplemental activity or material, outside normal handling and storage, that is billable in accordance with the clients contract.
The amount charged to the client for providing accessorial service or materials.
An inflatable bag used to fill empty space on a load of product to keep the product from shifting.
Inventory that is reserved for a specific order, customer, or other purpose and is not to be used for standard order fulfillment purposes. Once allocated, this stock is no longer available as usable inventory for new orders.
A method of billing where the client is billed for one month of storage once inventory is received. If this product remains in inventory, it will be billed an additional monthly charge each month on the anniversary of its arrival.
Physical count of all product in the warehouse done on a yearly basis.
The area outside the dock door which is used by delivery vehicles to park or position for loading and unloading. The Apron is specifically designed to a depth that will allow trailer floors to fit with the warehouse floor in a way that facilitates loading and unloading.
Location in the warehouse where products and loads are collected and combined.
The amount of shippable product in the warehouse; does not include product designated as damaged, on hold, or pending shipment.
A UPC code that identifies product. It consists of a series of black bars and is scannable. The bar code represents an identification number that is stored in the computer system along with other information about the product.
When an outbound shipment is delivered, instead of coming back empty, a load is picked up from a destination close to the final stop and then delivered either back to the warehouse or a location near the warehouse. A Back Haul creates revenue as opposed to coming back empty which would be an expense.
A type of plastic or metal strapping that helps support a load and hold it together. Can be used to strap and secure product on a pallet or skid.
An area in the warehouse designated by markings on the columns or floor.
Use of the bay for storage.
Inventory level and count at the beginning of a period.
Bill of Lading
The Bill of Lading (BOL) is an official document that accompanies every shipment. It serves as the contract between the party that owns the freight and the carrier. When a driver for an outside carrier signs the Bill of Lading, he/she accepts responsibility for the shipment. Upon arrival at the destination, the consignee or customer signs the Bill of Lading to indicate that the shipment was received and all goods are present as itemized. This customer-signed Bill of Lading then serves as a Proof of Delivery (POD) document.
A bonded warehouse is one that has been approved by the U.S. Treasury Department who, due to observance of revenue laws, has put the warehouse under bond or guarantee. A bonded warehouse can also be a warehouse utilized for the storage of merchandise that is on hold until duty is paid.
A movable railcar partition that is used to secure a load.
Storage of large quantities of product in shipping containers. May also be the storage of product that is not packed.
Material Handling Equipment designed to bring product to picker so that the picker can remain stationed in a designated picking location without traveling. Ideally, order information is loaded or automatically transferred into the carousel system, and multiple orders are picked by multiple pickers at one time. Types of carousels include horizontal and vertical.
The carrier transports goods from the client to Neill and from Neill to the consignee. The carrier can be Neill (Neill owned truck), a transportation company, or the railroad. Responsibilities include carrying the goods safely, in good condition and in a timely manner.
A unit of product, a protective casing around a product.
A frame with wheels that supports a container that is being transported over land.
To use a wood or metal wedge to block the wheels of a truck while it is being loaded or unloaded.
An attachment to a forklift that allows it to encircle and grasp product.
The height pallets can be stacked while leaving clearance for product movement or for lights, sprinklers, etc., hanging from a ceiling.
Product identified with specific clients (i.e. paper, chemicals).
Damage to product that is not obvious until the product is examined or the condition becomes apparent during storage or transfer.
The client’s customers are referred to as the consignee. Just think of the consignee as the “end user” or the company where Neill ships the stock.
Inventory that is in the possession of the customer, but is still owned by the supplier. Consignment inventory is used as a marketing tool to make it easier for a customer to stock a specific supplier's inventory. Read my article on Consignment Inventory.
Combine two or more shipments going in the same direction or to the same destination on a single trailer.
A container is a box that is used to transport product, and is widely used for international shipments. Marine containers or intermodal containers can travel on ocean liners, railroads, and on chassis.
A binding agreement between Neill and a client stating terms of the agreement, storage fees, transportation rates, and accessorial charges.
A warehouse operation managed by a third party logistics (3PL) provider for a specified period of time. The 3PL manages a client's inventory and order fulfillment processes. Pricing scenarios may vary, and storage, labor and equipment resources are typically dedicated to the client for the duration of the contract. The client may or may not share in the building and equipment expense.
Product or orders that are brought into the warehouse but not put-away. Instead of the stock arriving and being placed into storage, the stock is temporarily stored at the dock to be delivered or goes out immediately on another vehicle to be shipped. This stock is usually shipped immediately or within a day and does not go into storage.
Load that is picked up at the warehouse by the customer (usually within the same day the order is placed).
The physical counting of portions of inventory on an on-going basis. After a period of time all products have been counted. A cycle is then defined as the time it takes to count all inventory once.
Abbreviation for Distribution Center. A warehouse that manages and distributes inventory per the direction of corporate systems and customer demand.
Product that has been in inventory for an extended period of time without being moved or ordered.
Neill's Distribution Center is a warehouse facilities that store, manage, and ship inventory on behalf of its clients. Inbound carriers bring product into the Distribution Center. Product can be immediately allocated to existing orders, or it can be placed into storage for the purpose of filling future orders. Outbound carriers transport stock from the Distribution Center to the end user.
A warehouse door with an extending platform where trailers are loaded and unloaded.
A moveable metal plate that is placed between the warehouse dock door and a trailer or railcar and makes it easier/smoother to access a trailer or railcar with a forklift or similar equipment.
A container or piggyback is moved from a rail yard to another location and then returning that piggyback / container back to the initial pick-up point, is known as a dray. It is important that these containers get unloaded quickly and returned back to the original point so not to incur detention charges.
Refers to packing materials such as cardboard, empty pallets, air bags, air pillows, packing peanuts, or other materials utilized to protect freight.
EDI (Electronic Data Interchange)
Electronic Data Interchange refers to a computerized exchange of information with the client through the warehouse management system. It is a method of exchanging orders, invoices, shipping forms and other documents over the computer.
By eliminating the clerical, mailing and other costs associated with paper-based information, EDI reduces costs, time delays and errors.
The physical warehouse or plant where storage takes place.
FIFO (First In, First Out)
Inventory allocation method whereby the first product stored is the first product that is utilized or allocated for the fulfillment of orders.
First-in, last-out system of inventory.
Refers to product stacked directly onto the floor of a trailer without pallets or slip sheets; product must be unloaded manually without the use of a forklift.
A warehouse vehicle, also called a lift truck, which is used for lifting and transporting pallets of product. A forklift may have a special attachment on the front for specialized handling of product.
An invoice for transportation charges generated when a load is delivered.
The picking and processing of orders for shipping from a distribution or warehouse.
This term refers to a shipment comprising a full or almost full load on a truck. A full or almost full load is considered to be 32,000 – 44,000 pounds.
The total weight without deduction for tare (includes packaging and container).
The labor involved in moving product received from the trailer into the warehouse dock and then into the storage location on the “IN” and moving the product out of the storage location and into a staging location to then be loaded onto a trailer on the “OUT”. The Warehouse Forklift / Clamp Operator moves product IN and OUT. If additional handling is involved such pick & packing etc., that are not the normal handling as defined in the warehouse contract, these would be defined as additional accessorial charges for handling.
Short for “hazardous material.” Material is deemed hazardous by the government or a carrier. HazMat may require special handling or special facilities. Not all warehouses or carriers will handle HazMat.
Damage to product that occurred while in the warehouse (i.e. water leak, dropped product, etc.).
Intermodal means using 2 or more, modes of transportation: rail, truck or ship. The stock can move over sea by ship, over land by rail and then, at the main rail switch, the container is removed and put on truck chassis. The stock is then carried by truck to our Distribution Centers.
Warehouse storage charge for the month when product is received; it is typically billed when product is received.
The number of times inventory turns is calculated using the following method:
a) Sum the Inventory In and the Inventory Out, and then divide by 2 to arrive at the Throughput.
b) The number of Inventory Turns is equal to the Throughput divided by the Average Inventory.
Assembly of product or parts within the warehouse.
Less Than Container Load (LCL)
Shipments weighing less than required for the application of a full container rate. When the shipment is less than a full container load, the freight may be calculated as an LCL shipment.
Less Than Truckload (LTL)
Shipments weighing less than required for the application of a truckload rate. A typical full truckload shipment is 32,000 – 44,000 pounds. Weight breaks may vary across LTL classifications and in some instances it is less expensive to apply a full truckload rate even thought the shipment size may be less than 32,000 – 44,000 pounds.
LIFO (Last In, First Out)
Inventory allocation method that selects newest inventory first.
A vehicle that is utilized to move and transfer product/freight in a distribution center, warehouse, terminal, manufacturing site, or dock. Often referred to as a forklift.
The product that is picked and loaded onto a truck and transported to a consignee.
The processes and services associated with planning and implementing flow of storage and shipments in a 3rd Party operation required to meet the customers’ needs in an efficient manner.
A group of product with the same run or manufacturing date.
Identification number assigned to specific product for tracking purposes that is usually tied to a date or a production run.
Transportation term that describes shipments that are less than a trailer load. LTL also is used to describe the carriers that handle these loads. LTL carriers generally use strategically placed hubs to sort and consolidate LTL shipments into full-truck-load shipments.
A contracted worker who assists in the loading and unloading process.
A document that lists all of the products being transported; used when loads are combined. A loading Manifest will be printed to the Warehouse so that they know who will be picking up the load and how to properly load the trailer.
The services and processes the warehouse must utilize to move, store and otherwise handle materials.
Net Storage Area
Space in the warehouse (in square feet) that is actually used for storage. This does not include aisles, docks, offices and staging areas.
Product weight before being packed with materials or packaging. The total weight of the product with deduction for tare or packaging. For example, the net weight on a roll is the total weight of the roll less the fiber core and wrap.
The amount of product in the warehouse. The product may be designated as shippable, damaged, on hold, or pending shipment.
Refers to product that is designated as unable to be shipped; may be product with damage, questionable quality, expired shelf life, etc.
A directive, sent by the owner of the goods, to ship product out of the warehouse. An order specifies product, quantity, shipping date, and destination and may contain special instructions.
Occupational Safety & Health Administration, a branch of the US Department of Labor
When more has shipped on a load than was intended or was indicated on the BOL.
Over the Road Carrier
A truck or trailer used in hauling freight by road to destinations outside a 70 mile radius of the facility.
The packing list is created in the Distribution Center. The packing list identifies the quantity and weight of each product on the order and each individual item # (unit ID, serial number, etc.) if applicable. It is a comprehensive list identifying exactly what is being shipped on the order.
A wooden or plastic base upon which layers of product are stacked for storage and transporting with a forklift or pallet jack.
Material handling equipment consisting of pallet forks on small wheels that is used in the warehouse to move cases of product. It may be a motorized unit guided by an operator who stands on a platform; or it may be a motorized or manual unit guided by an operator who is walking behind or beside it.
Designed specifically for the handling of large paper rolls, the paper roll clamp is a lift truck attachment that clamps around the roll and also allows for a full 360 degree rotation.
Less than a full pallet of product.
A physical count of everything in the warehouse.
A warehouse operation that involves picking individual items from cases and putting them together a carton or pack for shipment.
The Pick Ticket is a document used by the Forklift / Clamp Operator or picker in the Distribution Center who will be locating the stock for the order. The Pick Ticket contains information such as, product location, quantity, lot numbers, serial numbers or unit numbers.
The process of transporting a trailer on a railroad flatbed; the trailer is then hauled to its final destination by truck.
Pinwheeling is a process of arranging pallets on a truck or product on a pallet to make the best use of space when dealing with items of different sizes.
Proof Of Delivery; a signed bill of lading.
A combination of less than truckload (LTL) freight built to form a full or almost full truckload. By “sharing” space in a vehicle, the client and Neill can minimize cost.
Warehouse that is operated by the owner of what is being stored inside of it.
A business that provides the use of space for storage to a variety of clients. This space can be leased for varying amounts of time determined by the contract set by both parties.
Metal framework in the warehouse used to store products several levels high.
Radio frequency (RF).
A data system made up of devices that use RF to transmit information into a host system from different locations or from “on the job.”
Inclined area that connects to the warehouse to facilitate easier movement in and out of the warehouse by trucks and other equipment.
An amount charged to a client for monthly storage; it is based on the amount of product stored in the warehouse on the first day of the month or specified by the contract.
Temperature controlled warehouse that serves well for storage of food and other perishable products
The logistics needed to plan return of product or a load. This may include a return order, transportation, and put-away.
Radio Frequency scanning and transmission of data.
RFID, Radio frequency identification
An alternative to barcodes, an RFID is a device on an object used to transmit data to an RFID receiver. RFIDs vary in size depending on the object and hold more data than the standard barcode. They are also advantageous because the data stored on the RFID can be easily changed as they do not require line-of-site in order to transfer this data.
Freight that is transported from one location, such as a regional distribution center or manufacturing site, to another, such as a consignee.
Delivery address for the consignee.
A load transported from one customer-related facility to another; does not include product shipped to a consignee.
Stock Keeping Unit; a product code assigned by the owner of the goods.
Approach used to determine the best placement and locations for products in the warehouse depending on its dimensions and how often the item is picked.
To place a trailer in a designated location or warehouse door.
A Neill driver who moves trailers in and out of dock doors.
The number of pallets rolls & skids that can be safely stacked on top of each other; the client supplies this information.
Placing stock on top of other merchandise in order to more efficiently use space.
The process of getting product from its storage area and placing it near the loading area for later shipment; or in cross docking, the process of unloading product and organizing it for immediate shipment.
A designated area of the warehouse near the loading dock where product is placed or arranged for shipment.
Stencils are markings placed on the product with the ID information required by the customer for the product that they are receiving. This can be in different forms dependent on the specifics for the customer. It can be a label or just a chalk inscription with the product ID.
Charge to client for all storage costs, usually on a month-to-month basis.
Product is loaded onto a pallet and then secured with strapping
Break points for carriers to strategically reload freight for delivery to the final destination.
Third Party Warehouse
Warehouse operated by a 3PL Company that houses the products of their clients.
An enclosed vehicle, towed by a truck, which is used for transporting product. There are a few different types of trailers. These include tractor trailers, semi-trailers, flat beds and reefers (refrigerated trailers). Most trailers are 42', 45’, 48’, or 53’ long.
The truck that pulls a trailer.
Transportation management system
System used by the transportation department which aids in such tasks as manifesting shipments, finding rate quotes, and managing carriers.
Ability to track a shipment from the time it leaves the warehouse until the time it arrives at the consignee.
Total quantity of weight, space, and pallets.
Area in the warehouse that is used to accommodate the loading and unloading of trailers.
To take individual items and ship them as a single larger item.
Value Added Services
Extra services that a distribution center will perform in order to meet the needs of their customers. Typically refer to special assembly, packaging, or picking services.
In a 3PL, this describes the instance of a client (vendor) controlling the inventory at the 3PL warehouse. This type of inventory control can be managed in multiple ways including a periodic physical check of inventory by the vendor in order to determine what needs to be supplied to the warehouse. The vendor can also have remote access to the warehouse’s inventory control system and order based on the levels of supply and demand visible electronically.
Receipt for product received into the warehouse.
Warehouse Management System
WMS is a software designed to function around three main components: putaway, replenishment, and picking. By directing these three components, the system can logically manage the movement and storage of product in the warehouse.
Method of order picking where the warehouse is divided into pick zones. Items are picked from each zone and then transferred on a conveyer system from one zone to the next.