Wholesale terminology- Operations & Shipping

• Order Fulfillment

  The process of receiving, processing, and delivering customer orders, including picking, packing, and shipping goods.

• Pick-and-Pack

  The process of selecting items from inventory (picking) and packing them into shipping containers (packing) to fulfill customer orders.

• Shipping Methods

  Different options for transporting goods to customers, including ground shipping, air shipping, expedited shipping, and freight shipping.

• Packing Slip

  A document included with a shipment that lists the contents of the package and provides details such as quantities, SKUs, and prices.

• SKU (Stock Keeping Unit) Optimization

  Analyzing and refining the number and variety of SKUs carried in inventory to maximize sales potential while minimizing carrying costs and complexity.

• FIFO (First In, First Out) Inventory Management

  A method of organizing and rotating inventory based on the principle that the oldest stock should be used or sold first to prevent spoilage, obsolescence, or degradation.

• LIFO (Last In, First Out) Inventory Management

  A method of organizing and valuing inventory based on the principle that the most recently acquired stock is used or sold first, often used in industries with rapidly changing product offerings or cost structures.

• Backorder

  Item description

• Safety Stock Levels

  Buffer inventory maintained to mitigate the risk of stockouts due to unexpected increases in demand or delays in supply.

• Allocation

  Item description

• Vendor Guide

  Item description

• Returns Authorization (RA)

  The process of issuing return authorizations to customers and managing the return process, including receiving returned goods, inspecting them for damage or defects, and processing refunds or exchanges.

• Credit Memo

  Item description

• Inventory Management

  The oversight and control of apparel inventory levels, including tracking stock quantities, replenishment planning, and minimizing stockouts or overstock situations.

• Routing Guide

  A set of instructions provided by retailers to wholesalers or suppliers specifying shipping methods, carrier preferences, packaging requirements, and delivery schedules for apparel shipments.

• Chargeback

  Item description

• EDI (Electronic Data Interchange)

  The electronic exchange of business documents, such as purchase orders, invoices, and shipping notices, between trading partners in a standardized format to automate and streamline supply chain transactions.