The 3PL and logistics glossary

Third-party logistics: a company that stores, picks, packs and ships orders for other businesses. Learn more →

The European rules for carrying dangerous goods by road. Learn more →

Authorised Economic Operator: trusted trader status from customs, granted after an audit. Learn more →

Advance shipping notice: a list of what’s arriving in a delivery, sent to the warehouse before it arrives. Learn more →

Alcohol Wholesaler Registration Scheme: HMRC approval needed to sell alcohol wholesale in the UK. Learn more →

Business to business: orders for retailers, wholesalers and distributors. Learn more →

Recording which batch of a product went into each order, so it can be traced or recalled. Learn more →

The sea freight transport document, and proof of who owns the goods. Learn more →

A customs-approved warehouse where non-EU goods are stored with duty and import VAT suspended. Learn more →

Cubic metre: length × width × height in metres. Used to price sea freight. Learn more →

The weight you’re billed on: actual or volumetric, whichever is greater. Learn more →

The seller’s invoice, used by customs to value goods.

The latest time an order can arrive to be despatched the same day.

Counting part of the stock regularly, instead of shutting down for a full stocktake.

Direct to consumer: orders from your own website or marketplaces to individual customers. Learn more →

Delivered Duty Paid: the seller pays all costs, including import duty and VAT, to the customer’s door. Learn more →

Daily charges for a container left at the port beyond its free time.

Electronic data interchange: a standard way for retailers and suppliers to swap orders, shipping notices and invoices. Learn more →

The number you need to import goods into the UK or EU. Learn more →

Fulfilment by Amazon: Amazon stores and ships your stock from its own warehouses. Learn more →

Full container load, or less than container load (a shared container). Learn more →

First expired, first out: picking the stock with the earliest expiry date first. Learn more →

Fulfilment House Due Diligence Scheme: HMRC rules for UK warehouses storing goods for non-UK sellers.

First in, first out: picking the oldest stock first.

A company that arranges the transport of goods for you, often including customs. Learn more →

Receiving, checking and booking stock into the warehouse. Learn more →

The commodity code that sets the duty rate for a product. Learn more →

The 11 standard rules for who pays for what, and when risk passes, in international trade. Learn more →

Import One-Stop Shop: lets sellers collect EU VAT at checkout on parcels up to €150. Learn more →

Building products into bundles, gift sets or kits before they’re sold. Learn more →

The total cost of getting a product into your warehouse, including freight, duty and taxes. Learn more →

Limited Fiscal Representation: lets a foreign business import into the Netherlands without a Dutch company. Learn more →

One-Stop Shop: lets businesses report VAT on sales to consumers in other EU countries in one return.

A flat base for storing and moving goods. UK pallets are 1200 × 1000 mm; EUR pallets are 1200 × 800 mm.

Picking the items in an order from the shelves and packing them for delivery. Learn more →

The share of orders sent with exactly the right items.

Confirmation that a delivery arrived, such as a signature or photo.

Receiving, checking and restocking or disposing of returned items. Learn more →

Stock keeping unit: a unique code for each product and variant.

Service level agreement: the standards a 3PL commits to, such as despatch times.

An extra charge added by a courier, for example for fuel, size or remote areas. Learn more →

A weight based on a parcel’s size: length × width × height ÷ a set number. Learn more →

Warehouse management system: the software that tracks stock and orders in a warehouse. Learn more →