Demystifying Logistics, What Do All The Acronyms Mean?
If you’re new to logistics then the chances are you’ve heard all sorts of acronyms being thrown about and you’re wondering what on earth they all mean. Don’t worry, we have all been there. Just like most professions, warehousing and logistics comes with its own dictionary of phrases to communicate the day to day happenings.
We have put together a handy list of the most common acronyms used in UK warehousing so that you aren’t left wondering what on earth an Inbound BOM SKU delivery is.. we’ll give you a hint, it doesn’t involve any explosives.
3PL - Third Party Logistics
We’re going to assume that you have heard of a ‘3PL’ before, here at CK Fulfilment, we are a 3PL. Simply put a 3PL is a business who manages the logistics, transport and warehousing for other businesses. They basically handle the day to day headaches of running a business.
4PL - Fourth Party Logistics
A 4PL manages every stage of the supply chain, rather than just focusing on logistics like a 3PL, they are a step up from a 3PL. A 4PL will manage your overall business and will oversee every stage from freight to delivery to your customer.
WMS - Warehouse Management System
An essential tool for any 3PL or 4PL, a warehouse management system will facilitate the key activities from the checking in of goods to stock management and order picking. A good quality WMS will also provide helpful reporting so that you can see which of your products are moving fast and which are slow movers. Learn more about our cloud based WMS here.
ASN - Advanced Shipping Notification
This is a document that provides detailed information about a pending delivery. It will detail which items are included in the delivery and how many of each are due. An ASN will also detail things such as the weight of the shipment, how it is packaged and the number of boxes or pallets included.
SKU - Stock Keeping Unit
A SKU is a physical item that has its own unique set of attributes, distinguishing it from any other item. For example, if a brand sells t-shirts, an orange t-shirt may have a SKU of T-OR001 whereas a pink t-shirt may have a SKU of T-PIN001.
BOM - Bill Of Materials
This refers to all of the material that is required to manufacture or assemble a finished product. In simple terms, it is the ‘ingredients’ or collective parts of the product.
B2B - Business to Business
A business described as B2B is a a business that sells to other businesses rather than consumers.
B2C - Business to Consumer
A business described as B2c is a a business that sells to consumers or the public rather than to other businesses. For example, Asda is a B2C.
SOP - Standard Operating Procedure
A standard operating procedure, or SOP is a set of step-by-step instructions compiled by an organisation to help workers carry out routine jobs and tasks. SOP’s ensure efficiency, safety and the quality of output and performance.
There you have it, the key logistical acronyms ‘demystified’. We hope these terms are a little less intimidating to you now we have broken them down. There are 100’s of other terms but you will rarely need to know them as they are more specific and niché. When working with our friendly team here at CK Fulfilment, these are the key acronyms you will hear!
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