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.

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Jump to terms:

- KPI
- kitting

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K

KPI : key performance indicator
Key Performance Indicator. In third-party logisitics (3PL ) this is a measurement of an activity that is important to the success of the business. KPI's can be applied to shipping and receiving turn times, inventory accuracy, order picking accuracy, labor cost-per-man-hour versus productivity, warehouse-space utilization, compliance with required delivery dates and times, etc.

kitting
The process of preparing an order for shipment. Kitting can involve light assembly, or the picking and packing of order components and collateral materials into a "kit," or complete set of items ready to ship.