Glossary of Fulfillment Terms

Fulfillment
The process of receiving, packaging and shipping orders for goods.

CRM Software
Customer Relationship Management Software

D2C
Direct to Customer

Drop Shipping
The term ‘drop shipping’ is often used interchangeably with ‘order fulfillment’. In many cases, however, a ‘drop shipper’ is a company that offers products for sale, and delivers them to the seller’s customer. This practice is commonplace with eBay and other auction sellers, where the seller will offer the drop shipper’s products for sale, and collect a commission if and when the product is sold.

Emergency Order
For a number of reasons, a particular order can be assigned priority, and treated and processed ahead of other orders in the queue. Emergency orders can be assigned by the merchant, or by the fulfillment center.

Fragile/ Special Pack
Those items treated and earmarked as fragile, are stored and packed accordingly. The fulfillment house gives these items special consideration.

International Shipping
Scriberbase defines “International” as those orders processed and shipped to markets outside of North America.

Kitting
Kitting refers to grouping several different items under a single SKU, and shipped accordingly. For example, as a merchant you might offer a ‘Widget Variety Pack’ composed of a blue widget, a red widget and a yellow widget. The order fulfillment center receives separate shipments of widgets, and ‘kits’ them together under a single SKU.

Light Assembly
Some items may be shipped to the fulfillment center directly from your supplier, and some assembly may be required in order to have the final products ready to ship. Light Assembly refers to manual, non-automated assembly.

Logistics
Logistics refer to the organization, processes and services needed to ensure the efficient flow of merchandise and orders from storage to shipment and delivery.

Pallet
Pallets are used for freight shipments. The industry standard for a pallet is 4x4x4′. Pallets are sometimes used as a way to estimate storage fees.

Pick and Pack
Pick and Pack implies packaging several different SKUs from the same merchant into a single box. For example, a customer may order 2 blue widgets and 3 red widgets from the same merchant, in a single order. The order fulfillment center will then pick and pack the order as required; both customer and merchant can benefit from lower proportional shipping costs, known as combined shipping.

Order
An order is a directive issued by the inventory owner, or merchant, to ship one or several items or SKUs to a particular customer. Orders can be received manually, either individually or through bulk upload, or in real-time through an API

Order Fulfillment
Order fulfillment represents the steps that need to be taken in order for a customer to receive his or her order, after they complete their purchase. It generally involves packing the order in the appropriate, safe packaging, and dispatching the purchase through a carrier service.

Packing List
A list included with every order that details the SKU, description and unique identifiers of every item or unit of sale included in an order. This list is produced by the fulfillment center and typically enclosed with the order.

Receiving
When a fulfillment client issues a purchase order to stock a warehouse, the products must be inventoried, labeled, and assigned a bin location. The system will typically update this information to reflect the change in inventory.

Serial Number
The number or code assigned to a single item to differentiate it from others. This differs from Stock-Keeping Units, or SKUs, as those are used to represent a type of item rather than an individual one.

Shopping Cart Integration
Scriberbase can integrate its software with a merchant’s existing shopping cart solution, allowing the fulfillment house to receive the order information within seconds of payment by the merchant’s credit card processor. This allows for reduced processing time and increased customer satisfaction.

SKU (Stock-Keeping Unit)
A SKU, or Stock-Keeping Unit is a unique identifier that refers to a type of item or items for sale. It is used for sales, shipping and inventory purposes.