| Term | Definition |
| 3PL Service Provider | An organisation that provides multiple logistics services to its customers. Preferably, these services are integrated or bundled together, by the third party logistics service provider. 3PL’s facilitate the movement of parts and materials from suppliers to manufacturers and finished products from manufacturers and distributors to wholesale, retail and end user customers. Among the services they provide are transportation, warehousing, cross docking, inventory management, packaging, freight forwarding and host of other value added services (VAS) |
| Cycle Counting | Cyclic and ongoing counting of inventory held in a pick face or bulk storage location to ensure physical quantity matches quantity shown in warehouse management system (WMS). Cycle counting is typically undertaken during normal warehouse operations. |
| Key Performance Indicator (KPI) | Key Performance Indicators (KPI) are used my logistics managers to monitor and measure the cost, volume and performance of a logistics activity or process against a target or an agreed performance expectation |
| Request for Information (RFI) | A document used to solicit information about 3PL service provider and their capability prior to a formal RFP / RFQ process. |
| Request for Proposal (RFP) | A document which provides information in regards to the business requirements of an organisation that is looking to procure the services of a 3PL service provider. This document is created in order to solicit proposals from potential suppliers. For example, a computer manufacturer may use an RFP to solicit proposals from suppliers of third party logistics services. Also known as an RFQ. |
| Request for Quotation (RFQ) | A document which provides information in regards to the business requirements of an organisation that is looking to procure the services of a 3PL service provider. This document is created in order to solicit proposals from potential suppliers. For example, a computer manufacturer may use an RFQ to solicit proposals from suppliers of third party logistics services. Also known as an RFP. |
| Stock Take | Periodic (annual or quarterly) counting of all inventory held within the warehouse to ensure physical quantity matches quantity shown in warehouse management system (WMS). Stock taking typically results in the normal warehouse operations being suspended while the inventory is counted. |
| Standard Operating Procedure (SOP) | Standard Operating Procedures area set of step-by-step instructions developed by an organization and used by employees / workers to complete complex and routine operations in an efficient and uniform manner |
| Twenty Foot Equivalent (TEU) | Standard unit for counting containers of various capacities and for describing the capacities of container ships or terminals. One 20 Foot container equals 1 x TEU. One 40 Foot container equals 2 x TEU. |
| Warehouse Management System (WMS) | A software application that supports the day-to-day operations in a warehouse. WMS programs enable centralized management of tasks such as receiving and put away of inbound inventory, the location and level of inventory being held in each location, picking, packing and dispatching of outbound orders. processing returned items and managing stock take and cycle counting activities. |