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Third Party Logistics Glossary
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August 20, 2020
Know the Lingo, Streamline Your Supply Chain
The Ultimate 3PL Glossary: Key Terms in Third-Party Logistics
Logistics can feel like learning a new language. This glossary breaks down the most commonly used terms and definitions to make it easier to understand the ins and outs of 3PL.
Use this glossary as a quick reference for common logistics and 3PL terms.
Warehousing & Storage
Warehousing
Furniture Warehousing
Special Handling
Climate-Controlled Storage
Inventory Management
The process of tracking, organizing, and optimizing stock levels within a warehouse. Effective inventory management systems ensure real-time visibility of goods, faster fulfillment, and lower risk of overstock or stockouts — especially crucial in furniture logistics.
Cross Docking
A logistics strategy where incoming goods are quickly transferred from inbound trucks or containers to outbound trucks — with minimal or no storage time. Cross docking accelerates distribution and reduces warehousing costs, especially for time-sensitive or consolidated shipments.
Fulfillment & eCommerce
Order Fulfillment
Order fulfillment refers to the end-to-end process of receiving an order, picking the items, packing them securely, and shipping to the customer. 3PL companies streamline this process to reduce errors, improve delivery times, and increase scalability.
eCommerce Fulfillment
The full process of receiving, storing, packing, and shipping products sold online. A 3PL partner manages eCommerce fulfillment on behalf of retailers or DTC brands, handling everything from real-time inventory updates to customer returns.
Pick and Pack
A fulfillment process where bulk inventory is picked, sorted, and packed into individual shipments based on customer orders. It’s a key part of eCommerce fulfillment, especially for direct-to-consumer brands.
Pack and Ship
A common logistics term referring to the preparation and shipment of customer orders. Often used interchangeably with pick and pack, it emphasizes the secure packing and accurate documentation before final shipment.
Furniture Assembly Services
Value-added service where 3PL providers handle in-home or pre-delivery assembly of furniture items. This is often part of white glove delivery but can also be offered at the warehouse level for staging or showroom prep.
Custom Labeling
Custom labeling involves applying branded or product-specific labels (including barcodes, shipping labels, and documentation) to individual items or packages. It’s especially useful in drop shipping, private labeling, and multi-channel retail.
Drop Shipping
A fulfillment method where products are shipped directly from a supplier or 3PL warehouse to the customer, without the seller ever handling the goods. In furniture and home goods, drop shipping enables retailers to offer a broader catalog without holding physical inventory.
Direct-to-Consumer (DTC)
A business model in which brands sell and ship products directly to end customers, bypassing traditional retail channels. 3PLs help streamline direct-to-consumer fulfillment with warehousing, pick-and-pack, and final mile delivery services.
Return Logistics (Reverse Logistics)
The process of handling returned or rejected goods, which can involve inspection, repackaging, restocking, or disposal. In furniture logistics, this might include re-kitting, minor repairs, or rewrapping.
Transportation & Delivery
Last Mile Delivery
Also known as home delivery or final mile delivery, this is the final stage of the shipping process — when goods are transported from a local distribution center to the customer’s doorstep. In third-party logistics (3PL), last mile delivery is crucial for ensuring timely, damage-free delivery of large or high-value items like furniture. Many 3PLs offer white glove service as part of their last mile solution, providing added care during delivery and setup.
White Glove Delivery
A premium form of last mile delivery that includes inside placement, unpacking, and sometimes minor assembly. White glove service is ideal for high-value or fragile items like sofas, tables, or bedroom sets, and is a common option in furniture logistics.
Threshold Delivery
A home delivery service where items are brought just inside the front door, garage, or lobby but not unpacked or assembled. Threshold delivery is a cost-effective option for larger items like furniture, offering more convenience than curbside service but less than white glove.
Blanket Wrap Shipping
A method of shipping furniture without boxing it, using padded blankets and straps for protection during transit. Common in high-end furniture logistics and white glove delivery scenarios.
Full Truckload (FTL)
A freight shipment that fills an entire trailer. FTL shipping is ideal for large-volume orders or oversized items like furniture and is often more cost-effective for dedicated delivery routes with fewer stops.
Less-than-Truckload (LTL)
A shipment that does not require a full trailer. LTL shipping is used for smaller freight loads that share space with other shipments. While more economical for partial loads, it may involve multiple handoffs, making careful packaging essential for furniture goods.
Consolidated Shipping
Combining multiple smaller shipments into one larger load to reduce shipping costs and improve delivery efficiency. This is particularly useful in furniture distribution, where high-volume loads can be routed more strategically across regions.
Freight Tracing
The act of tracking goods while they are in transit. Using tools like PRO numbers or tracking IDs, 3PLs provide real-time visibility for both shippers and receivers, helping to prevent delays or lost freight.
Liftgate Service
A delivery add-on where a hydraulic lift is used to lower large or heavy items from the truck to the ground. Essential for furniture deliveries to residential areas without loading docks.
Value-Added Services (VAS)
Any additional services beyond basic storage and shipping, such as labeling, kitting, repairs, inspection, or furniture assembly. VAS can be customized per client or product type.
Freight Forwarder
A logistics provider that arranges the movement of goods across domestic or international borders. A freight forwardermanages customs clearance, shipping documentation, and transfers between modes of transport (like sea to land), ensuring smooth transitions within the global supply chain.
Freight Broker
Customs Clearance
The process of clearing imported or exported goods through customs. A 3PL or freight forwarder manages documentation, duties, and inspections to ensure smooth international shipments and regulatory compliance.
Core Concepts
3PL (Third-Party Logistics)
An abbreviation for Third-Party Logistics, 3PL refers to outsourcing supply chain services — such as warehousing, inventory management, fulfillment, and transportation — to a specialized logistics provider. Many companies use 3PL partners to streamline operations and reduce overhead.
Third-Party Logistics
Third-party logistics (3PL) is the practice of outsourcing logistics operations — including furniture warehousing, freight consolidation, order fulfillment, and last mile delivery — to a dedicated provider. These partners handle essential backend logistics so companies can focus on sales, growth, and customer service.
Supply Chain
The supply chain encompasses every stage of a product’s journey — from sourcing raw materials to delivering the final product to the end user. It includes production, storage, transportation, and delivery, often coordinated by 3PLs and freight partners.
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