|
Many
of the terms used in the world of third-party logistics do
not appear in a standard dictionary, nor is there a dictionary
of fulfillment or warehouse management definitions. We offer
this glossary to help you better understand our business.
If
you have a term you would like defined, or have a definition
that you would like to share with us, please send us an e-mail.
O
order
picking
the process of selecting and assembling inventory within a
warehouse for shipment.
outsourcing
the process of a client hiring an outside company to do something
on the client’s behalf. The theory behind outsourcing
is that one should outsource non-core services in which one
cannot be competitive, so that one can concentrate one’s
time, talent, and financial resources where they can be used
most profitably. Many companies which regarded themselves
as manufacturers have even outsourced their manufacturing,
often offshore. When such companies were faced with foreign
competition they were forced to concentrate on their core
competitive strengths of branding, marketing, and merchandising.
Thus outsourcing was, and is, the way for many companies to
remain competitive. For many marketers and manufacturers,
outsourcing logistics and fulfillment operations to third
party logistics (3PL) or third party fulfillment (3PF) companies
allows the virtual “back-room” operations to be
handled by a specialist. Outsourcing of warehousing, order
processing, customer service, shipping, and other fulfillment
operations can reduce costs, accelerate shipping times, and
increase end-customer satisfaction while so that the client
can focus on growing his company.
|
