Glossary

The 3PL & fulfilment glossary.

New to outsourced fulfilment? This glossary explains the third-party logistics (3PL) and eCommerce fulfilment terms you will come across when working with OutBox3PL — in plain English.

Key terms

Logistics terms, explained simply

3PL (Third-Party Logistics)

A provider that stores your stock and handles order fulfilment — receiving, storage, pick & pack and dispatch — on your behalf.

Pick & Pack

The core fulfilment task of selecting ordered items from the shelf and packing them ready for dispatch.

SKU (Stock Keeping Unit)

A unique code identifying each distinct product variant you sell and store, used to track inventory accurately.

Dispatch Cut-off

The daily deadline by which orders must be received to ship the same day. At OutBox3PL the cut-off is 12pm AEST.

DIFOT

Delivered In Full, On Time — a key metric for measuring fulfilment and delivery reliability.

Rate Shopping

Comparing prices across multiple carriers for each parcel to choose the best mix of cost and speed. We compare 6+ Australian carriers on every order.

Cross-Docking

Moving goods directly from inbound to outbound with little or no storage in between, to speed up flow and cut handling.

Kitting

Combining multiple SKUs into a single ready-to-ship unit — common for gift sets, bundles and subscription boxes.

Last-Mile Delivery

The final delivery leg from the local depot to the customer's door. OutBox3PL runs its own fleet across Sydney.

POD (Proof of Delivery)

Confirmation that a parcel reached the customer — a signature, photo or scan recorded at the point of delivery.

FCL / LCL

Full Container Load vs Less-than-Container Load — whether your sea freight fills a whole container or shares one with other shippers.

FBA / FBM

Fulfilment By Amazon vs Fulfilment By Merchant — the two ways to fulfil Amazon orders. A 3PL supports FBM and FBA prep.

FIFO

First In, First Out — rotating stock so older inventory ships first; important for dated and perishable goods.

RMA (Return Merchandise Authorisation)

The approval and tracking of a customer return, so each item coming back is inspected, graded and restocked correctly.

Pallet

A standardised platform for storing and moving stacked goods; bulk warehouse storage is often charged per pallet.

WMS (Warehouse Management System)

Software that tracks inventory, locations and orders in real time across the warehouse and connects to your store.