Updated On:
Glossary of Terms
A
3PL (Third-Party Logistics)
A logistics model where a business outsources warehousing, fulfillment, and shipping operations to a specialized provider. Vertex acts as a 3PL partner for ecommerce, wholesale, and retail brands across Canada.
4PL (Fourth-Party Logistics)
A higher-level logistics model where a single partner manages and coordinates multiple logistics providers, carriers, and facilities. Vertex supports 4PL programs by orchestrating multi-node distribution and partner networks.
B
B2B Fulfillment
The process of shipping products from one business to another, often in bulk or wholesale quantities. This includes palletized shipments, retail distribution, and compliance with customer routing guides.
B2C Fulfillment
Shipping products directly to individual consumers, typically through ecommerce platforms such as Shopify or Amazon. B2C fulfillment focuses on speed, accuracy, and branded customer experience.
Backorder
An order placed for a product that is temporarily out of stock and fulfilled once inventory is replenished
C
Canada–US Fulfillment
Fulfillment programs designed to support distribution across both Canadian and U.S. markets, often leveraging cross-border shipping strategies.
Carrier
A transportation company that moves shipments, such as UPS, FedEx, DHL, Canada Post, USPS, or freight carriers.
Case Pick
Fulfilling orders by picking full cases of product rather than individual units, commonly used in wholesale and retail distribution.
Cross-Border Shipping
Shipping goods between countries, most commonly between Canada and the United States, including coordination of customs documentation and compliance.
Customs Clearance
The process of meeting government requirements for international shipments, including documentation, duties, and taxes.
D
Dimensional Weight (DIM Weight)
A shipping calculation based on package size rather than actual weight, commonly used by parcel carriers.
Distribution
The movement of goods from a warehouse to customers, retailers, or downstream distribution points.
Drop shipping
A fulfillment model where products ship directly from a supplier or warehouse to the customer without the seller holding inventory.
E
Each Pick
Fulfilling orders by picking individual units, typically used in e-commerce and direct-to-consumer fulfilment.
E-commerce Fulfilment
End-to-end order processing for online businesses, including inventory storage, pick and pack, shipping, and returns management.
F
Freight
Large or bulk shipments transported by truck, rail, air, or ocean.
FTL (Full Truckload)
A shipment that occupies an entire truck, often used for large wholesale or retail deliveries.
Fulfillment Center
A warehouse facility designed to efficiently process, pack, and ship orders. Vertex fulfilment centres support both B2B and B2C operations from the Vancouver and Lower Mainland region.
I
Inbound Shipping
The transportation of inventory from suppliers or manufacturers into the warehouse.
Inventory Management
The tracking and control of inventory levels, locations, and movement using a Warehouse Management System (WMS) to maintain accuracy and visibility.
K
Kitting
Combining multiple products into a single packaged unit or kit, often used for promotions, bundles, or retail preparation.
L
Lead Time
The time between order placement and shipment or delivery.
LTL (Less Than Truckload)
A freight shipment that does not require a full truck and is consolidated with other shipments.
O
Order Accuracy
A fulfilment performance metric measuring the percentage of orders shipped correctly.
Order Processing
The steps taken to prepare an order for shipment, including picking, packing, labeling, and documentation.
Outbound Shipping
The movement of completed orders from the warehouse to customers, retailers, or distribution centers.
P
Pallet Storage
Storing goods on pallets within warehouse racking or floor locations. Pallet storage is commonly used for wholesale, retail, and inbound freight shipments.
Pick and Pack
The process of selecting products from inventory and packaging them for shipment. Pick and pack services support orders for e-commerce, wholesale, and retail.
Putaway
Moving received inventory to its assigned storage location within the warehouse for efficient retrieval and space optimization.
R
Receiving
The process of accepting inbound inventory, verifying quantities and condition, and recording products into the warehouse system.
Returns Management
The handling of returned products, including inspection, restocking, or disposal.
Reverse Logistics
The process of moving goods back from customers to the warehouse as part of returns or recalls.
S
Safety Stock
Extra inventory held to protect against stockouts or supply chain disruptions.
Scalability
The ability of a logistics operation to grow and handle increased volumes without disrupting service quality.
Section 321 Shipping
A U.S. customs provision that allows qualifying shipments valued under a specific threshold to enter duty-free is often used to reduce landed costs for cross-border e-commerce.
Service Level Agreement (SLA)
A documented agreement outlining service expectations, performance standards, and responsibilities between a client and a logistics provider.
Shipping Zone
A geographic area used by carriers to calculate shipping rates and transit times.
Stockout
A situation where inventory is unavailable to fulfil orders.
Supply Chain
The complete journey of a product from manufacturing through warehousing, fulfilment, and final delivery.
T
Transit Time
The time it takes for a shipment to travel from origin to destination.
V
Value Added Services
Additional warehouse services such as labelling, relabeling, bundling, rework, inspection, or custom packaging.
W
Warehouse Management System (WMS)
Software used to manage inventory, receiving, picking, shipping, and reporting within a warehouse operation.
Warehousing
The secure storage of inventory within a managed facility. Warehousing services may include pallet storage, case storage, short-term storage, and seasonal overflow capacity.
Wholesale Fulfillment
Order fulfilment for retailers, distributors, or corporate customers often involves larger order sizes, pallet shipping, and specific delivery requirements.