Industry terms

3PL stands for Third-Party Logistics. This is when companies outsource components of their product fulfillment needs. A 3PL generally handles warehousing, shipping, distribution, and returns. Read more.

Barcodes are a series of parallel black and white lines that allow data to be visually presented so a scanner can read it. Barcodes enable you to scan an item and gather information quickly. Read more.

Boxing is the process of packing products so they can be transported. This may seem simple, but ensuring your products are packed correctly can be incredibly complex. Read more.

Dropshipping is a popular method of order fulfillment that allows retailers to sell products without ever keeping those physical products in stock. Read more.

ERP is an acronym for Enterprise Resource Planning. Enterprise Resource Planning software is a tool that businesses use to manage their day-to-day operations. Read more.

Inventory valuation is the total value of a company's current, unsold inventory. There are various ways you can value your inventory. Read more.

A journal entry is an entry made into the general ledger that indicates financial transactions. The primary function of a journal entry is to provide a record of financial history in one place. Read more.

A master style, also known as a body style, is the basic design of a garment. This design will be used as the base for all style variants. Read more.

A pick ticket lists all the items that must be taken from a warehouse shelf, packed and shipped to a customer. Pick tickets will include all the details about the products to be shipped. Read more.

A product catalog is a collection of all your products with identifying information about each product. Product catalogs will contain all the products you currently offer. Read more.

Raw materials are the materials or substances used to create a product. Raw materials are to manufacturing what ingredients are to baking. Read more.

Sales channels are the paths a product takes to get to consumers. It is how you, as a business, choose to take your products to market. Read more.

SKU stands for Stock Keeping Unit. Typically SKUs are an alphanumeric code that can be made scannable. Read more.

A back order occurs when a retailer has no more of an item left in stock, but an order for that item was allowed to be placed by the customer. Read more.

A BOM (bill of materials) is the list of materials, tools and instructions used in the manufacturing process. BOMs keep manufacturing organized. Read more.

Cloud-based refers to systems and tools that are accessible remotely. Cloud-based software is accessible on any device so long as it connects to the Internet. Read more.

A customs duty is a tax on items crossing international borders. If you shop online, chances are you’ve experienced having to pay an extra fee before getting your order - these are duties. Read more.

An inventory count is exactly what it sounds like - a count of your inventory. It is vital to ensure that your physical inventory is accurately reflected in your business management system. Read more.

An invoice is a document given to a buyer by a seller. An invoice indicates the quantity and the agreed-upon price of a product or service. Read more.

A lead time is the time between placing an order from a supplier and receiving that order. Lead times can vary drastically. Read more.

A lead time is the time between placing an order from a supplier and receiving that order. Lead times can vary drastically. Read more.

Product attributes are the descriptors of a product. These can include color, weight, style, size, price, material and more. Product attributes can also include intangible, subjective descriptions. Read more.

A purchase order (sometimes called a PO) is a document sent from a buyer to a seller. A purchase order promises the seller that the buyer will pay them. Read more.

An RMA (return merchandise authorization) is the first step to regulate and manage the return process should the customer want to return an item.Read more.

Size grids are used to group data. They help to make large sets of data concise and easily understandable. Size grids are primarily used to display product variants. Read more.

A vendor is a person or business that sells something. If you run a distribution business, this would be the person you purchase finished goods from. Read more.