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Glossary
of Terms for Third Party Logistics,
Supply Chain Management
& Fulfillment Operations
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.
V
virtual
client
a third-party transacting business with its client’s
customers in such as way that it is indistinguishable from
the client. When managed properly, a third party logistics
(3PL) or third party fulfillment
(3PF) company performs all
functions necessary to seamlessly seem as if it were “virtually”
the client’s own backroom operation or warehouse, or
virtual backroom or virtual warehouse, while the same operation
appears to vendor’s customer to be the vendor itself.
(See virtual vendor, virtual
warehouse and invisible
backroom).
virtual vendor
a virtual client from the point of view of the third party
fulfillment (3PF) operation’s
client’s client. The 3PF operation handles all transactions
in the vendor’s name to seamlessly appear to be the
backroom operation of the manufacturer or distributor. This,
a major retailer such as Wal-Mart might order baby clothes
from a manufacturer of baby clothes via EDI.
An outsourced 3PL company might handle all related transactions
and thus be the vendor (virtually) from Wal-Mart’s perpective.
virtual warehouse
description coming soon.
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