E-commerce logistics glossary

SKU (Stock Keeping Unit): a unique code for one item variant, e.g. a black T-shirt in size M.

EAN: the product barcode assigned by the manufacturer. The SKU is yours, the EAN belongs to the product.

WMS (Warehouse Management System): software that knows where every item is, runs picking and syncs stock with your store. See WMS integration.

ASN (advance shipping notice): a heads-up about an inbound delivery so the warehouse can receive it without delay.

FIFO / FEFO: first in, first out / first expired, first out. FEFO is standard for cosmetics, supplements and food.

Safety stock: extra inventory that covers late deliveries or sudden demand spikes.

Cross docking: moving goods from inbound straight to outbound without storage. See cross docking.

Picking: collecting the products for one order from the shelves.

Pick and pack: picking and packing as one service, usually billed per order plus per extra item.

Cutoff: the time by which an order must arrive to ship the same day. At Completio we take shipping orders until 8 PM.

Fit-to-size: packing where a machine cuts the box to the size of the product. See robotic fulfillment.

Kitting / co-packing: preparing goods for sale: repacking, labelling, shrink wrapping and building sets. See product kitting.

Last mile: the final leg of delivery to the customer, a parcel locker or a pickup point.

Reverse logistics: receiving returns, checking them and putting products back on sale.

Fulfillment: outsourcing the whole order operation of an online store to a provider.

3PL / 4PL: a 3PL provider does the warehouse work itself; a 4PL manages the supply chain and subcontracts the work. See 3PL provider.

OTIF (On Time In Full): the share of orders delivered on time and complete. At Completio it is 99.97%.

SLA: the part of a contract that sets service standards such as cutoff and lead times.

Cost per order: total monthly logistics cost divided by parcels shipped. See fulfillment pricing.