Defining the Terms

If you are new to the shipping business you may be confused by all the different terms. Some of which seem are used interchangeably. 

• 3PL or “third-party-logistics.” This refers to a third-party company providing logistics for warehousing, fulfillment, inventory management, etc. 
• Fulfillment Center refers to a warehouse that provides storage, pick, pack, and shipping services for e-commerce. 
• Distribution Center refers to a warehouse that provides shipping services, acting as the middleman between a business and their fulfillment center or other retailers. 
• Pick refers to the process of locating items and picking them for orders.
• Pack refers to the process of packing picked items into a suitable package.
• Fulfillment refers to the process of picking, packing, and shipping e-commerce orders. 
• B2B or “business to business” shipments refer to shipments from one business to another. These are often wholesale orders by another retailer.
• FBA or “fulfilled by Amazon” refers to shipments to an Amazon fulfillment center. Amazon acts as your warehouse providing storage and fulfillment services. 
• LTL or “less-than-load” are freight shipments which do not fill an entire truckload. 
• WMS or “warehouse management software” is a software utilized by a warehouse to manage inventory and orders. 
• DDP or “delivered duties paid” refers to a shipment that is delivered internationally with duties paid by the shipper.
• DDU or “delivered duties unpaid” refers to a shipment that is delivered internationally with duties unpaid, they must be paid by the recipient.

At Gorman Haulage, we are known for providing excellent customer service. We love making the process as simple and clear as possible.